PRIME MINISTER GUL TO RESIGN TODAY
The 58th Cabinet had its last meeting yesterday. Following the meeting, Deputy Prime Minister Abdullatif Sener told reporters that the Cabinet’s performance during three-and-a-half month period was evaluated at the meeting. Sener stated that Prime Minister Abdullah Gul thanked ministers for their work. Stressing that the 58th government dealt with very important issues in foreign policy, including the developments in Turkey’s EU accession, the Cyprus issue and a possible US intervention to Iraq, Sener said that the government was successful. Meanwhile, Gul paid a congratulatory visit to ruling Justice and Development Party (AK Party) leader Recep Tayyip Erdogan over his accomplishment at Siirt by-elections on Sunday. Gul said that he would present his resignation to President Ahmet Necdet Sezer after Erdogan takes oath in Parliament, and thus he would open ways for the establishment of a new government. /All Papers/

BUSH PHONES ERDOGAN TO BOTH CONGRATULATE AND CAUTION HIM
US President George W. Bush yesterday phoned ruling Justice and Development Party (AKP) leader Recep Tayyip Erdogan and congratulated him for being selected as a deputy at recent by-elections. Bush also cautioned Erdogan stressing the time was running out for Iraq. Emphasizing the strategic partnership between Turkey and the US, Bush remarked that he expected Turkey to make its decision as soon as possible. For his part, Erdogan reportedly requested Bush not to put pressure on Turkey about timing since the country is busy with forming a new government, which is a quite serious matter. “All legal procedures should be completed,” said Erdogan. “We also need to see what will UN Security Council decide on the Iraq crisis.” Erdogan yesterday made phone conversation also with British Prime Minister Tony Blair, Greek Prime Minister Costas Simitis, UN Secretary-General Kofi Annan and European Parliament Chairman Pat Cox. These prominent figures phoned Erdogan to congratulate him. Annan and Simitis reportedly told Erdogan that they expected him to contribute to the Cyprus Peace Process. /Hurriyet/

US TROOPS TO BE DEPLOYED AT NINE BASES
Under an agreement between Turkey and the US, US troops will be deployed at nine bases in southeastern Anatolia, including Mardin Kiziltepe, Dicle, Oyali, Nusaybin, Gaziantep, Oguzeli, Birecik, Sanliurfa and Viransehir. US teams have completed renting and buying processes of certain places and buildings to be used. Some 40,000 US soldiers are expected to be stationed on the bases. /Turkiye/

US IS HOPEFUL ABOUT A SECOND PROPOSAL
Appearing on US NBC, US Secretary of State Colin Powell stated since a new government was about to be formed in Turkey after ruling Justice and Development Party (AKP) leader Recep Tayyip Erdogan was elected as a deputy, he believed that Turkey was determined to present a new proposal to the Parliament, authorizing US troops to be stationed at Turkey’s military facilities. Powel remarked that US appreciated Turkey’s support although there were an important number of people opposing an Iraq war in the country. “I know that Turks are trying to form a new government now,” said Powell. “ I’m sure that new government is to prepare a new proposal to be presented to the Parliament which would authorize our troops to be stationed at Turkey’s bases and ports.” /Cumhuriyet/

ANNAN: “THE TRNC AND GREEK CYPRIOT ADMINISTRATION SHOULD CONTINUE TO NEGOTIATE UN CYPRUS PLAN UNTIL MARCH 28”
United Nations Secretary-General Kofi Annan yesterday separately met with Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas and Greek Cypriot leader Tassos Papadopoulos at the Cyprus summit held in Hague. During the meetings, both the TRNC president and Greek Cypriot leader stated that it was impossible to hold referendum until March 28 and they proposed some changes to the plan. During the Cyprus summit, Annan said that the leaders should continue to negotiate the revised Cyprus plan until March 28. He stated that guarantor countries Turkey, Greece, and Britain should reach an agreement before March 31 adding that the TRNC and Greek Cypriot administration should hold separate referendums on the revised Cyprus plan until April 6. After meeting with Annan, Denktas and Papadopoulos said that they would also consider the view of Turkish and Greek Cypriot administrations on the proposed new date, March 28. /Milliyet/

BABACAN: “TURKEY WILL BE COMMITTED TO ITS ECONOMIC PROGRAM WITH OR WITHOUT US ECONOMIC ASSISTANCE”
State Minister for Treasury Ali Babacan yesterday stated that the government did not base its future economic plans on a US aid which is likely to be released in return for Turkey’s support to the US Army during a possible Iraq war. “Turkey will pursue its economic program with or without US financial assistance,” said Babacan. He stressed that if Turkey failed to continue its economic program with great determination, the US aid to be accepted, either grant or loan, would also be wasted. /Sabah/

WB TURKEY DIRECTOR CRITICIZES THE AKP’S 2003 BUDGET
World Bank’s Turkey Director Ajay Chibber yesterday criticized the Justice and Development Party’s (AKP) 2003 budget which was appreciated by the International Monetary Fund. Chibber said that if the AKP government didn’t make any changes to the current budget, then the WB would stop providing Turkey with $1.4 billion. “This budget protects rich people against poor,” he said. “The budget will negatively affect Turkish farmers and middle class. It is difficult for the WB to provide Turkey with $1.4 billion credit unless it makes some changes to the budget.” Chibber added that the budget would hinder Turkey’s growth since it supported the ones who didn’t pay taxes. In related news, Deputy Prime Minister Abdullatif Sener yesterday said that the AKP government had presented the budget to Parliament and that it wouldn’t make any changes to it. /Aksam/

IMF: “THE AKP GOVERNMENT NEEDS TO IMPLEMENT AGREED POLICIES STRICTLY TO ACHIEVE ITS ECONOMIC GOALS”
International Monetary Fund yesterday issued a statement just after World Bank’s Turkey Director Ajay Chibber’s criticisms to the budget and said that Turkey’s Parliament should accept the 2003 budget. “To achieve its economic goals, the government needs to implement the agreed policies strictly,” IMF noted in its statement. “The passage of 2003 budget, measures on direct tax reform, 6.5% primary surplus target, resolution of redundant positions in state enterprises, and privatization carry great importance for the IMF.”

SOURCE: OFFICE OF THE PRIME MINISTER, DIRECTORATE GENERAL OF PRESS AND INFORMATION