US Offers Turkey Big Aid Package for Help in Iraq

Reuters ^ | 2/15/2003 | Adam Entous

[a_Turk]

WASHINGTON (Reuters) - The United States is offering Turkey an economic aid package that includes about $6 billion in grants and up to $20 billion in loan guarantees in a bid to secure Ankara's support for an invasion of Iraq, sources familiar with the offer said on Saturday.

President Bush met with Turkish Foreign Minister Yasar Yakis and others at the White House on Friday, but U.S. and Turkish negotiators have yet to reach a final agreement that would allow American forces to use Turkish bases as a springboard for an invasion of Iraq from the north.

On top of an estimated $6 billion in grants, the Bush administration is offering backing for up to $20 billion in loans that Turkey could secure through private banks. As a condition for U.S. backing, the United States is demanding that the loans fall under the terms of Turkey's program with the International Monetary Fund.

It is unclear whether Ankara will accept the offer, which has ballooned in size in recent days. Turkey, which says it suffered massive economic damage from the first Gulf War, has been pressing Washington for billions of dollars more.

Once a deal is reached, Bush would submit it to Congress for approval as part of an emergency wartime budget request.

Turkey, which has a 218-mile border with Iraq, is allowing the U.S. military to modernize some bases there for possible use in a war, but has not yet given Washington permission to use them for an offensive.

The aid package, coupled with a deal to limit the number of U.S. troops in the country at any one time, could help avoid a backlash from Turks widely opposed to a war against their fellow-Muslim neighbor. Reuters alert: This is not about religion. It's the econoy, stupid!

The Bush administration is finalizing separate multibillion-dollar aid packages for Israel and Jordan which, like Turkey, say they would need U.S. grants and loan guarantees to offset the economic shock of military action to disarm Iraqi President Saddam Hussein.

An Israeli delegation is due in Washington next week and hopes to quickly finalize the details of its request for $4 billion in military assistance and $8 billion in U.S.-backed loan guarantees.

Under the Israeli proposal, the United States would deduct from the face value of the loan guarantees any Israeli expenditures on settlement activities in Palestinian areas.

Washington has promised Jordan more than $1 billion in aid that could be sent to Congress for approval in coming weeks, officials said.

Egypt is also seeking U.S. help in the form of a free-trade agreement.

U.S. SWEETENS OFFER

At close to $25 billion including the loan guarantees, the Turkish package would be well above the initial U.S. offer of $14 billion, which included grants and the funds needed to support up to $10 billion in loans.

The big increase underscores just how important Turkish basing is to U.S. war-planners.

But it is unclear whether the sweetened offer would win support in Ankara, which stepped up pressure on Washington during two days of intense negotiations.

On Thursday Prime Minister Abdullah Gul backed away from a pledge to hold a parliamentary vote on Feb. 18 on whether to let an expected 30,000 U.S. troops use bases in Turkey to invade northern Iraq, saying the timing of the vote was tied to the negotiations in Washington.

The latest U.S. offer is still far below the amount Turkey was purportedly seeking. According to congressional sources, Ankara at one point asked Washington for close to $50 billion in aid -- an amount U.S. officials dismissed as excessive.

[a_Turk]

>> asked for close to $50 billion in aid

Gotto start somewhere :^D

The Turkish public is in dire economic straits, and does not want a repeat of the economic consequences it suffered as a result of Gulf War One.

We know that regime change in Irak will have a positive effect on the Turkish economy in the long term, but we need to dampen the short term effects.

This will go a long way to change anti war attitudes in Turkey, if Congress approves the measure. Those attitudes are mostly driven by economic concerns, and not by religion, even though some demonstrations have been organized by the communist party which we've had to legalize thanks to the EU...

[a_Turk]

Hi!

[Texas_Jarhead]

I don't care for having to buy support from anyone.

[elhombrelibre]

Me neither, but this may save lifes in the long run.

[Steven W.]

besides it's just debited directly from the French account.

[Texas_Jarhead]

oh I understand necessity, I just don't care for it

[Momaw Nadon]

Attack on Iraq Betting Pool

[dinok]

I go to work out of mecessity ... I can spare a few million to Turkey to get rid of Saddam. And a few million to for Turkey to a Greek like me is not something to agree to lightly.

(Notice how I am so generous with other people's money. I could have a career in politics.)

[billhilly]

But, the good news is, Bill Gates will have to live in Adana, Turkey until the loans have been repaid. Ted Turner narrowly missed that opportunity when AOL/Time Warner lost their shirts.

Gates can repay the entire amount and have about $75 billion left. Tax the rich?

Hell no. Use them as guarantors. Ain't capitalism great. (sarcasm)

[Mortimer Snavely]

If something like this had been arranged at the end of Gulf War One, Turkey today wouldn't be so leery of more military action against Iraq.

Turkey was the very first nation to respond to Hussein's invasion of Kuwait, closing the border and losing a major trading partner the day after Iraq invaded. As a result, Turkey suffered an economic body blow from which she hasn't recovered. After Gulf War One, there was no acknowledgement of this in Washington, and the Turkish economy nearly went bottom up. I imagine that the average shop-keeper over there has a "No good deed goes unpunished" attitude when it comes to dealing with the USA. This deal may, hopefully change that. This isn't a bribe by a long shot, but long delayed assistance to help heal the wounds of economic warfare.

[Ernest_at_the_Beach]

Will be money well spent!

[Ernest_at_the_Beach]

And some thought Clinton was the compassionate one! /sarcasm

[GretchenEE]

Is there a term (surely it must be a non sequitor if it exists) to define gentleman's blackmail? Because this is surely it.

[MarMema]

Hi back to ya.

[a_Turk]

International politics is an ORGY. No gentlemen there. Every piece of ass is game. The US blackmailed Turkey by threatening exclusion for non-participation, Turkey threatened already existing economy affected anti-war public opinion. Sounds like a perfect 69. Sick, but that's what it is.

Promises made before Gulf War One were not kept, and Turkey lost up to 100 billion in Irak trade, as well as 120 billion in terrorist fallout. Our politicians seem to have learned. There are no gentlemen in international politics.

[Thud]

Told you there'd be other compensation.

Iraq is not the only country in the area.

[Kenny Bunk]

Well Turk, we called that one well in advance.
<p.I.E., Play Nice with your old Uncle Sam and collect the big bucks on your way out the conference room door!

[a_Turk]

Next step, get it in writing.

After that I hope there will be a commission in Turkey made up of all government branches plus the army to ensure that nobody there suddenly gets rich...

All that assuming that the resolution passes parliament. That's not a given yet.. I am hoping it does.

[BurbankKarl]

Gray Davis would like $26 billion...!

[George W. Bush]

Ankara will have to be reasonable. But I don't oppose substantial aid and Turkey is certainly owed aid, both for the present crisis and for their loyal friendship to us for so many decades. One can grasp why they feel so isolated when the Europeans are being so unpleasant over merely fulfilling their treaty obligations which they have no right to withhold and when France and Germany may revenge themselves upon Turkey for helping America against Iraq at the very time when Turkey is trying to enter the European Union to gain access to their markets.

I would say that when the price gets this high, I wouldn't support giving them oilfields as well. This price is more than all the foreign aid we normally give out in an entire year. But then, Turkey is a special ally. They are always there for us, even in the most unpopular and unpleasant wars we have fought. We shouldn't forget that either.

Turkey should drive a hard bargain (and they will <grin>) but avoid the public appearance of mercenary intent. It is not simply about immediate economic crisis though that must be addressed. We will remove a hostile neighbor presently under sanctions and replace it with a friendly neighbor who is free to develop its oil fully. And that creates opportunity for Turkey. I do not like to think that the impression will created in the new Iraq that Turkey only helped against Saddam because we paid them off. Sometimes, getting a good neighbor means being a good neighbor and doing the right thing to create a relationship of trust. But we Americans need have no doubts that Turkey will, once committed, fulfill its obligations very ably. Very ably.

I hope that Turkey and the new Iraq will be given the responsibility to protect a new semiautonomous Kurdish homeland and Turkey should be compensated for doing so. It would help to eliminate much of the Kurdish friction in both Turkey and Iraq. But I do not under any circumstance favor independence for the Kurds. It's far too likely to end badly. Let them have their own police and a very small army. And Turkey and the new Iraq can guard their borders.

Naturally, I'm assuming that both the new Iraq and a Kurdish district would both be required by treaty to enforce strictly secular Muslim states along the Turkish model. I don't favor any wiggle room in the treaties to allow either to become a hotbed of Islamic fundamentalism or despotism. One would hope that both of them have had enough of that and will be willing to be good neighbors with Turkey and the rest of the region, including Israel. Despite the traditional hatreds and rivalries in the region, one can hope that Saddam has at least cured the the Iraqis and the Kurds of looking down that path again and that they can behave like civilized countries if their security is guaranteed.