Northern Cyprus ...

getting brighter one smile at a time.

Turkish foreign minister meets in Jerusalem with Sharon, Shalom, Katsav By Aluf Benn and Yoav Stern Turkish Foreign Minister Abdullah Gul met with senior Israeli officials yesterday in Jerusalem and expressed his country's desire to take part in the peace process. Political sources in Jerusalem said Gul had not made progress in the efforts to bring the remains of executed Israeli spy Eli Cohen from Syria. Gul brought no new message from Damascus, although he said he believed Syria would be willing to make gestures if progress was made in the peace process. Gul's visit is part of an effort to improve Turkish-Israeli ties after a chill caused when Prime Minister Recep Tayyip Erdogan accused Israel of engaging in state terrorism against Palestinians. Gul's visit comes ahead of an expected visit by Erdogan, the first since he took office. Gul met yesterday with Prime Minister Ariel Sharon, Foreign Minister Silvan Shalom, President Moshe Katsav and opposition leader MK Shimon Peres. "There is a new atmosphere and hope and it must be exploited," he said. In Gul's talks with officials, he stressed the importance of cooperation with Israel on advanced technology and the war on terror. "Cooperation is important for both sides," he said. Gul called on Israel to accept the new Palestinian leadership, to release Palestinian prisoners and to move ahead on disengagement. Former Foreign Ministry director general Alon Liel, now chairman of the Israel-Turkey commercial council, said he believed Turkey was seeking to improve relations with Israel. However, he added, Ankara was "looking with one eye at Israel and with the other at relations in the region, including with the Palestinians." Shalom said he was unable to accede to Gul's request to increase the quota for Turkish construction workers because of the unemployment in Israel, but if the overall number of foreign workers was increased, Turkish workers would be prefered. As a gesture to Turkey, the Israeli ambassador to Ankara, Pimi Avivi, announced during Gul's visit that Israelis would be allowed to invest in Turkish-controlled northern Cyprus, a break from previous policy. Officials in the Turkish entourage stressed to reporters that, from a diplomatic perspective, the Palestinians took priority over the Israelis on the visit, noting that Gul would be speaking to the Palestinian parliament and not to the Knesset.

Prime Minister Ariel Sharon shaking hands with Turkish Foreign Minister Abdullah Gul in Jerusalem yesterday (05/01/2005). (Lior Mizrahi / BauBa)     Click HERE to read the article in the website of Haaretz (one of the the most popular newspapers of Israel).

Article on Globes (5 Jan 2005 14:31).

"The Israeli government will allow Israeli companies to invest in the Turkish Republic of Northern Cyprus ," Israel 's Ambassador to Turkey Pinchas Avivi told Turkish Foreign Minister and Deputy Prime Minister Abdullah Gul on Monday, during a visit to Israel .

Until now, the Israeli government avoided granting permission to Israeli businesspeople to invest in the Turkish-controlled part of Cyprus , in order to avoid a confrontation with Greece . Following Turkey 's recent negotiations for entry into the EU, European countries eased their objections to investment in Turkish-controlled Cyprus . Israel has followed suit.

Gul said the Turkish Republic of Northern Cyprus needed all types of investment in transportation, tourism, agriculture, and water. Among the projects under consideration are a renewal of the shipping line between Haifa and Cyprus , and a large water project in Nicosia by the Tahal Group .

During the visit, Gul met Israeli businesspeople and company managers to interest them in investing in telecommunications, agriculture, agroindustry , energy, water infrastructure, and security of airports, seaports and other installations and facilities in Turkey .

Israel-Turkey Business Council chairman Dr. Alon Liel , a former Ministry of Foreign Affairs director general, said Turkey would host a major security exhibition in June 2005. Turkey suffered severe terrorist attacks during 2004. Many Israeli security companies are likely to be interested in the exhibition.

Gul emphasized that all legislation governing foreign investment in Turkey had been amended, and that the country was now much more open to foreign investment. He added that Turkey 's government had just carried out a currency reform, deleted extra zeros from the country's currency.

Gul said Turkey 's economy grew by 6% in 2004, and was expected to grow by 10% in 2005. Inflation is now in the single digits, which also greatly aids foreign investment.

Gul added that the International Monetary Fund (IMF) had recently announced the lifting of restrictions on development projects in Turkey , which could lead to the resumption of the water infrastructure Southeastern Anatolia Project (GAP). Tahal , Bateman Engineering, Merhav and other companies are due to participate in the GAP.

During his visit, Gul did not discuss the issue of exporting water to Israel . However, lower ranking officials at the Ministry of Foreign Affairs said that if private companies wanted to take on the project, it could be carried out.

Click HERE to read the article on GLOBES website.

Published by Globes [online], Israel business news - www.globes.co.il - on January 5, 2005

http://www.globes.co.il/serveen/