USG Meetings with Turkish Minister Dervis

Folks
OPIC, EXIM and the Department of State each raised the issue of Trakya
withTurkish Minister of Economy Dervis yesterday reflecting a unified front
of the USG on the issue.
Harmon, Chairman of EXIM, apparently did not go into great detail on the
situation but EXIM staff had a side conversation with the Deputy Sec'y of
Treasury in which the issue was addressed in greater detail.
At the OPIC meeting, OPIC focused on Trakya and went through the situation
in great detail. Minister Dervis was not aware of all the details, but is
now. He stated that the sector had to be cleaned up. He noted that the IMF
deal had to first be struck but that the energy sector had to be addressed in
the "near term". Drumheller's sense was that in the next several weeks
there would be definite action on the part of Treasury or both Trakya and the
USG need to take further steps. He wants to go ahead and meet with the
lenders with an eye towards preparing the letters re the guarantee and then
gear up if necesary to beat on the GOT.
Alan Larson, Undersecretary of State for Economic Affairs also spoke to
Dervis and stated to the Minister that the continuation of the Trakya
situation would become a major public issue between the US and Turkey. That
this is now the official position of the Department of State is a huge step
forward. Thanks John