Gul: 32 Of 39 Foreseen Initiatives In Urgent Action Plan Fulfilled

ANKARA - Prime Minister Abdullah Gul said on Tuesday that 32 out of 39 initiatives foreseen in the urgent action plan of the 58th government were fulfilled in three months.
Gul held a press conference that the government was formed on November 18, 2002 and won the vote of confidence on November 28, 2002, and later gave information about targets, goals and performances of the government.
He was holding the press conference as a necessity of transparency and to make an explanation to people, Gul said.
Gul noted that Turkey was ruled by coalition governments and faced many problems and trouble, and many economic crises in 1990s.
''Turkey had faced the biggest economic crises of its history before our government. The interest rates had climbed to high levels, millions of people had been left unemployed, many workplaces had been closed, and corruption had increased to important levels,'' Gul said.
Gul went on saying, ''interest rates were around 70 percent, and Turkey had difficulties even in rolling over the public debt stock when we took over the post. Financial discipline was totally deteriorated. The reason of all these was politics. All these occurred due to insufficiency of politics, coalition government, and uncertainties. These all led to economic results. There was such an atmosphere that even the Council of Ministers could not convene.''
''Who was ruling Turkey and how Turkey was ruled were uncertain. Turkey was like a ship, the course of which in the ocean was uncertain. The nation totally had lost its confidence and was hopeless,'' Gul said.
Stating that AK Party became hope of people in November 3 election, Gul said that the party was supported very much. Gul said that Turkey entered two-party system through the will of people.
Gul said, ''we have already known that we will win the election'' and stressed that they started to make preliminary works before election with that mentality.
Stating that they prepared election declaration in an understanding of a government programme, Gul said that they also prepared urgent action plan on what would be done as soon as AK Party came onto political power.
Gul said, ''we became ruling party and government under that understanding. Confidence came to markets and people after we became the government.''
Stating that nearly 3 billion U.S. dollars of debenture bonds were sold, he said that interest rates decreased from 70 percent to 47 percent.
Noting that although there was an increase in interest rates due to pressure from external conjuncture, he said that people saw that everything was under control.
Gul said that they made public what they would do and noted that the party foresaw to fulfill 39 initiatives in the urgent action plan in the first three months.
Gul added that everybody could see that the government fulfilled 32 of those initiatives.
PRIORITY WAS ECONOMY
Gul said that their priority was economy because foreign conjuncture would always be temporary and they would be face to face with their own realities in the end.
''The past three months were days when developments regarding the European Union (EU), Cyprus and Iraq occurred at the same time,'' Gul said.
Gul noted that those extraordinary developments in especially foreign policy overshadowed economic performances.
However, their priority was economy, Gul pointed out.
Gul said that they had exerted extraordinary effort to make Turkey have a robust economic structure in those three months.
They exerted efforts mainly in two branches, Gul noted. Gul said that one of them was to solve current economic problems and to have a good administration system by ensuring confidence and stability and the other was to take structural measures to prevent occurrence of similar incidents.
Gul pointed out that there was revival in markets after the confidence was ensured.
Interest rates fell from 72 to 47 percent and there was not lack of confidence in Turkey's rolling over debts, Gul said.
Gul stated that they had to prepare temporary budget first and then they started to prepare the 2003 year budget.
The Higher Planning Board, which had not met for long years, convened for three times when the 2003 year budget was being prepared, Gul said.
Gul noted that they reviewed structure of the public sector and took up measures to be taken and warnings to be made altogether.
Gul said that they foresaw that they would reach target of 5 percent growth, obtain an income of 45 billion U.S. dollars through exports and they also foresaw 55 billion U.S. dollars of imports when preparing 2003 budget and noted that they also foresaw a 20 percent of increase in consumer prices and 6.5 percent non-interest surplus.
''We considered ourselves as a government which will end problems of Turkey. Because we took over a very disorganized Turkey. We would deal with putting it in order for years. Thus, financial discipline was very important. That's why, I have always talked about 6.5 percent non-interest surplus,'' he noted.
Gul said that when they were preparing 2003 budget, they took some economic measures and stated that one part of those was measures decreasing expenses.
Gul said that they should show sensitivity in protecting homeland and added that when preparing 2003 budget, they saved 11.3 quadrillion TL.
NO TIME TO SUBMIT STRUCTURAL REFORMS TO PARLIAMENT
Gul said that they could not have time to submit structural reforms to the parliament since they had to pass two budgets in a short time.
Gul said, ''one of them is the tax reform bill and it has to be passed. This law will be passed in coming days.''
They had to take measures to increase revenues by 4.4 quadrillion Turkish liras (TL), Gul stated. Thus, he said, they decreased the 15.7 quadrillion TL borrowing necessity in 2003.
Gul noted that they could not keep one promise and that they had earlier stated that they would not impose new tax.
Stating that they started their post with that will, Gul said, ''but, due to extraordinary developments last week, developments regarding Iraq crisis, and the will of the parliament, unfortunately, we had to make concessions of only two issues and impose additional tax. These are additional motorized vehicle and property taxes.''
Extraordinary economic turmoil was expected in Turkey especially the previous week, Gul pointed out.
Gul emphasized that they prevented that turmoil by taking those measures.
Prime Minister Gul said he hoped that people would be understanding and those taxes would be imposed on people who had the possibilities to meet them instead of all parts of the public.
Gul said that they had taken significant steps to ensure financial discipline and that they limited allocation of appropriation by 10 percent.
They made the budget transparent by adding commodity foreign project loans to budget for the first time, Gul noted.
Gul said that they ended financial zero year implementation and passed a new tax law.
Thus, many injustice and disputes between the state and businessmen were solved in a fair way, Gul stated.
Gul stressed that tax reform bill would be submitted to the parliament those days.
They solved the issue of compulsory savings which could not be solved for 15 years, Gul said.
Gul stated that civil servants and workers would be paid the capital money of 1.4 quadrillion TL in 2003 and the interests of that money which was around 11 quadrillion TL would be paid in three installments in 2004.
They also took measures on health expenditures and there were serious initiatives to develop border trade, Gul said.
Gul pointed out that there were activities to make production input cheaper.
They had made structural changes in incentives, Gul said.
Gul noted that a board was formed to rehabilitate investment environment and ten related laws were submitted to the parliament.
Stressing that significant privatization initiatives were made, Gul said that they aimed to fulfil more than half of privatization initiatives made in 17 years.
Gul said that important steps were also taken in transportation and stressed that construction of two-lane inter-city highways was launched in regions where traffic was heavy.
ADJUSTMENT PACKAGES HAVE MADE TURKEY A COUNTRY CATCHING UP WITH COPENHAGEN STANDARDS IN REAL SENSE
''An environment in which torture has been totally ended has been ensured in Turkey. A Turkey in which people convicted of torture crimes are not pardoned and their punishment is not commuted into fine has occurred. Significant steps have been taken in democratization. Closure of political parties has been made more difficult,'' Gul said.
Gul noted that family courts were established and that some of those laws were passed within the framework of EU adjustment packages and some were made because Turkish people deserved them.
Emergency rule was lifted, Gul stated. Gul said that new arrangements were made regarding the State Security Courts (DGMs).
Gul pointed out that the government dealt with problems which were coming from the previous years and some important foreign developments occurred at the same time.
They exerted intensive efforts on EU, Cyprus and Iraq crisis, Gul said.
Gul noted that they were exerting many diplomatic activities and Turkey had done its homework and passed the adjustment laws before it went to Copenhagen.
A significant turning point was recorded in the EU process at the end of their intensive contacts, Gul stated.
Gul said that the EU decided to start negotiations with Turkey at the end of 2004.
Way for re-trial was paved in line with the decisions of the European Court of Human Rights (ECHR), Gul noted.
Gul said that this was appreciated by the whole world.
Touching on Cyprus issue, Gul said, ''again, we came across with the end of the 40-year issue. United Nations (U.N.) Secretary General Kofi Annan brought forth the third plan on Cyprus this month and busy initiatives were held. We have expressed our concerns. The Greek Cypriot side also expressed its concerns. We have assumed a sincere attitude towards a solution in this process. We have not seen insolubility as a solution and we never think so. We have exerted every positive efforts and will continue to do so.''
Gul said that critical meetings were held on Cyprus in The Hague for the last two days but that no compromise was reached.
But, talks continued, Gul noted.
Gul said that they would fulfil their obligation to settle the issue and added, ''we will not ignore problems we may face in the future just because we settle the issue.''
GUL SAYS THEY WILL BEHAVE IN LINE WITH REQUIREMENTS OF TURKEY'S INTERESTS IN CASE A SECOND MOTION COMES ONTO AGENDA
''Nobody will avoid taking a group decision on a second motion or some other issues when necessary. We will take action in line with the wish of the majority of the party group,'' Gul said.
Asked if his words meant that a second motion had been prepared and when it could be submitted to the parliament, Gul said that today was the last day of the government and that Justice and Development Party (AK Party) leader Recep Tayyip Erdogan would take an oath at the parliament the same day or the following day.
Gul noted that efforts to form the new government would be started without losing time.
''Therefore, the new government will think this. There is no doubt that everything is closely followed and evaluated. Consultations with the United States continue in a very sincere atmosphere. We will see the developments altogether in coming days,'' Gul said.
Asked about the initiatives in relations with Turkish republics and asked if a tour to that region was on the agenda, Gul said that he could not visit those countries, but he wanted to visit all those countries.
Gul noted that they were dealing with many issues like economic problems and urgent foreign issues for the last three and a half months.
There could be some changes in the new government, Gul said. But, he stated the same policies would continue.
Gul pointed out that close relations with Turkish republics would continue.
When a reporter said that he was the prime minister in most critical days regarding EU and Iraq and asked if he would make recommendations to Erdogan, Gul said that he would of course express all his experiences to the new government to be formed by Erdogan.
Asked if they would take a group decision on a second motion, Gul said that they had not made a decision yet and this decision would be shaped up in coming days.
The AK Party showed that it was really a democratic party by not taking a group decision on the former motion, Gul pointed out.
Gul said, ''we will see the following developments altogether. We will behave in line with the requirements of Turkey's interests. We will take a group decision if it necessitates a group decision. Because, group decision is one of the means in political party administration. But, we will take a decision according to the will of the majority.''
Asked if a second motion could come onto the agenda without a U.N. resolution, Gul said that they would evaluate all those issues in time.
Gul noted that they would change the government quickly in order not to cause uncertainties and added, ''all of us has been involved in this process and our leader has also been involved in this process. Therefore, there is not any unfamiliarity. Everything will be evaluated rapidly when the new government is formed. It is not possible for me to say anything definite at the moment.''
GUL SAYS IF THERE IS WAR IN IRAQ OUT OF OUR WILL, IT WILL BE OUT OF QUESTION FOR US TO STAY OUT OF THIS WAR IN TERMS OF OUR NATIONAL INTERESTS
Gul said that Iraq was a neighbor country of Turkey and stated, ''if there is a war in Iraq out of our will, it will be out of question for us to stay out of this war in terms of our national interests.''
Gul told a press conference that the 58th government faced with Iraqi issue as soon as it took office and said that Turkey and the United States were holding consultations on the issue since the United States was a strategic ally of Turkey.
Stating that they, as Turkey, exerted great efforts for a peaceful solution to the issue, Gul said, ''we first visited neighboring countries of Iraq and held a meeting with those countries in Istanbul. We issued Istanbul Declaration and called Iraq to reach a peaceful solution on that issue. We always said that U.N. Security Council no. 1441 resolution should be fulfilled and Iraq has the biggest responsibility in prevention of that war.''
Gul said, ''we also sent a special representative to head of state of Iraq. We told him that it would be better to act rationally. The closest representatives of him came to Ankara and we also told them the same thing. Unfortunately, Iraq did not respond us in affirmative. Later, there were some efforts under the European Union (EU). There were also efforts under Organization of Islamic Conference (OIC).''
Stating that if Turkey were far from Iraq, it would have felt about the issue differently, Gul said, ''but, we are a neighbor country of Iraq. Things which will happen in Iraq will concern Turkey and interests of Turkey. We could not keep our eyes closed. If there is a war in Iraq out of our will, it will be out of question for us to stay out of this war in terms of our national interests.''
Gul said that they submitted the first motion to the parliament and noted, ''this motion was related to preparations on protecting our interests and not staying outside if war is in question. We also sent the second motion to the parliament not to suffer much in case of a war and make Iraqi people suffer less. Northern Iraq front has become meaningful. The motion we submitted in this scope was not approved at the parliament. Everything became in a democratic process. We should respect the decision of the parliament. The United States met with understanding this decision.''
''Developments continue. We hope that this issue will be solved through peaceful ways,'' he added. ''But, if a war breaks out, we think that Turkey cannot stay outside because its national interests are in question.''
Gul said that they were in cooperation with nongovernmental organizations and political parties.
Gul said, ''Turkey's big party's leader Erdogan could not participate in elections on November 3 due to his speech which he delivered six years ago. This abnormal structure was fixed during AK Party government. Our leader became a candidate in Siirt election which was held on March 9 and he was elected as deputy. People in Siirt gave a right decision.''
Gul said that after Erdogan took an oath in the parliament, he would give his resignation to President Ahmet Necdet Sezer and he would clear the way of the second AK Party government.
Gul who thanked all political parties said that he believed that Turkey would have bright days.
GUL SAYS WORLD BANK'S REPRESENTATIVE TO TURKEY HAS MADE A MISTAKE BECAUSE HE WAS ALSO A PART OF INITIATIVES
Gul said that World Bank's Representative to Turkey Ajay Chhibber had made a mistake because he was also a part of the initiatives that had been exerted.
Gul replied to questions of reporters following his press conference.
Asked if he would take part in the new government, Gul said that it would be a decision to be made by Justice and Development Party (AK Party) leader Recep Tayyip Erdogan, who would form the new government.
Asked if they would submit a second motion to parliament without taking it under guarantee and what their attitude would be if it would not be passed, Gul said that this question should not be asked to him.
Gul noted that policies of the new government would be seen after the government was formed.
They were open to criticisms, Gul stated.
Gul said that many people had negative expectations from three and a half months when they ruled Turkey but that they had experienced a good period despite that.
They hoped to achieve more, but the foreign conjuncture affected their initiatives in Turkey, Gul pointed out.
Asked what he thought about the demand of people that he should be the deputy prime minister for economy, Gul said that it would be Erdogan's appreciation.
Gul said that names could change in the new government but the AK Party would continue to rule Turkey.
Turkey would be happier and richer in coming years, Gul stated. He said that Turkey's problems would decrease in the following years.
Asked if he preferred economy or foreign policy, Gul said that he would never refrain from fulfilling his obligation for Turkey's and his party's success whether he was in or out of the government.
When he was reminded about the statement of Chhibber, Gul said, ''he has made a mistake because he was also a part of these initiatives. When the 2003 year budget and the letter of intent were being prepared, all these issues were openly discussed. Everybody knows under what conditions we have prepared the budget and under what conditions we have had 6.5 percent primary surplus. The World Bank knows the best. Therefore, what he said is not right.''
Gul added, ''our plan is to include income of some source packages into the accounts of the treasury in the second half of the year. We plan to meet that demand this way. If we mentioned a symbolic figure, maybe some circles could have doubts about our will. Everything was said irresponsibly. Turkey's problems are clear. A statement made by the center of the World Bank has confirmed our right moves.''
When asked whether or not the government could take a step back from adopting the tax package if the motion was adopted and if the U.S. extended financial assistance to Turkey, Prime Minister Gul said that ''this can be possible. I want everybody to know that the negotiations with the U.S. in the economic field and the assistance to be extended to Turkey to meet the damage of Turkey within the scope of a motion were connected again to the Letter of Intent to IMF.''
Gul said that the Turkish economy could only become sound if the assistance could be used well, adding that extravagance should be prevented, unnecessary expenses should be limited, public expenditure should be taken under control and public administration should be made effective. ''If this is not the case, the assistance to be transferred to Turkey will only increase the debt burden.''
''Was it you who wanted to give up the prime ministry office immediately, or did Mr. Erdogan request you?'' asked journalists to Gul who said that there was no crisis of confidence between him and Erdogan. Gul said that he was formally the AK Party deputy leader, they set up the party together, adding ''there is solidarity, and common will to work together between us... Everything has to get normal... This is the normal thing, this is what political ethics necessitated. I think that there is no need for uncertainties in such critical periods... We have no difference of opinions within the party.''
Upon a question, Gul said that they believed that war was the last remedy, but if the war became inevitable, Turkey, which was a neighbour of Iraq, could not stay indifferent to it.
Gul stressed that Iraq should not be divided and that its territorial integrity should be protected, adding that ''the Arabs, Kurds and Turks in Iraq are our brothers and relatives. We want them to be happy there. We don't want to face big immigration problems. We witnessed it in the past, it is a human tragedy. In that respect, we must take certain measures. The things we do, don't mean joining a fight. Turkey won't enter any war, it is only in the position of taking measures against the dangers which it could face.''

(BRC-ÖS-AÖ) 11.03.2003