Category: Asia and Pacific

  • Turkey Duns Turkmen for $1Bln

    Turkey Duns Turkmen for $1Bln

    ASHGABAT, Turkmenistan — Turkish President Abdullah Gul met with his counterpart in Turkmenistan last week for urgent talks thought to be related to $1 billion in outstanding bills owed to Turkish construction companies that have revamped the capital city.

    turk

    Turkish companies have played a leading role in transforming this old sleepy post-Soviet backwater into a city of soaring marble-clad government offices and apartment blocks. But a report last month by risk analyst D&B said 25 Turkish firms are preparing to take legal action against Turkmenistan over the hitherto unexplained nonpayment.

    Turkish media reported that Gul’s visit is aimed at recovering the debt and heading off complaints to the International Center for Settlement of Investments Disputes, or ICSID. Several Turkish businessmen said they believed it to be the central issue of Gul’s visit, speaking on condition of anonymity for fear of imperiling their investments in the tightly controlled Central Asian nation.

    Gul himself was coy on the nature of the visit, but warned what was at stake before setting out. “With my visit, we will be reviewing all aspects of our cooperation in the fields of economy, trade, energy, investments and education,” Gul said. “Turkmenistan is the country where Turkish businessmen have undertaken the largest number of projects in Central Asia,” he said, adding that Turkish companies have developed projects worth $21 billion since Turkmenistan gained independence in 1991.

    Turkey’s daily newspaper Hurriyet reported in April that the Turkmen government was refusing to pay Turkish companies $1 billion owed for building work. It also said Gul, who is known to take a close interest in Turkish investors abroad, had scheduled a trip to discuss the issue with Turkmen officials.

    Foreign companies based in Turkmenistan, run as an opaque and authoritarian fiefdom since independence, are normally highly reluctant to publicize problems with the government. Turkish builder Ickale Insaat broke ranks late last year, however, when it filed a complaint against the country with the ICSID.

    “More are to follow,” said Ozan Ickale, of the Ankara-based builder. “The Turkish companies are slowly all seeking their rights through arbitration.” He said a number of Turkish contractors have been jailed in Turkmenistan or are barred from leaving the country “for simply seeking their rights.” Ickale itself is owed over $50 million, he said. “Not only have we stopped our activities, but we were lucky to have come out of there,” he said.

    Ickale said the Turkish government has promised to help them. He said he did not know if the president was expected to discuss their grievances in Turkmenistan. Ickale said three other companies had cases pending at the ICSID.

    It is unclear what would have prompted a delay of payments by the Turkmen government, although revenues were reportedly badly hit in 2009, when Russia stopped buying the country’s gas following a pipeline explosion for which both sides denied responsibility. China has since stepped in to buy large amounts of gas, but the Turkmen government will likely face straitened financial conditions over the next few years as its borrows and spends billions on developing its large energy reserves.

    via Turkey Duns Turkmen for $1Bln | Business | The Moscow Times.

  • Turkey, China and the Shanghai Cooperation Organization

    Turkey, China and the Shanghai Cooperation Organization

    Could Turkey be heading towards membership in the Shanghai Cooperation Organization? China, at least, seems enthusiastic about it, according to a report in the Associated Press of Pakistan:

    “China is very positive for Turkey to become a SCO dialogue partner. However, whether it become dialogue partner it would depend on the consensus of the member states of the SCO”, said Cheng Guoping, Chinese Assistant Foreign Minister…

    “Turkey is a friendly country of China and in terms of economic, political, security and people-to-people cultural exchanges and cooperation we have very smooth cooperation”, Cheng observed.

    Now, becoming a “dialogue partner” would put Turkey in the same class as Belarus and Sri Lanka, which is to say, not very significant in the SCO. But it’s still an intriguing move, not least because it seems like China is especially interested in Turkey’s cooperation. A Chinese scholar, Zhao Huasheng, speaking recently here in Washington, mooted Turkey as a possible cooperation partner, as well. As Cheng put it:

    The SCO is an open organization as defined in its charter, he said, noting that it is willing to cooperate with “organizations and nations that hold the same opinions as us”.

    How, exactly, China imagines that Turkey has “the same opinions” as China is not clear, but that’s an interesting statement, in the context. Last year the two countries carried out two rounds of military exercises, which raised some eyebrows in Washington.

    Turkey reportedly had some interest in SCO cooperation a few years ago, but I haven’t been able to find any Turkish official commentary on this, or analysis (if there is some out there, I’d love to hear about it).

    The SCO is holding its 10th anniversary summit in Astana on June 15, and according to the Kazakh hosts, there probably isn’t too much to expect, at least in terms of expansion of the group, other than adding Afghanistan as an observer:

    The Summit is highly unlikely to produce decisions on expanding the full members list but is going to review Afghanistan’s bid to obtain an observer status.

    But it’ll be worth watching to see if Turkey comes up in the discussion.

    via Turkey, China and the Shanghai Cooperation Organization | EurasiaNet.org.

  • China to launch Turkey’s first intelligence satellite in December

    China to launch Turkey’s first intelligence satellite in December

    China will launch Turkey’s first intelligence satellite, Göktürk-2, for $20 million since Turkey lacks the required technology to launch the satellite. Göktürk-2, which will be capable of detecting the movements of objects smaller than even one square meter, will help capture terrorists infiltrating Turkish borders.

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    The optical camera for the satellite has been bought from South Korea, while all the other parts have been produced and manufactured in Turkey. Göktürk is expected to be launched in December or in early 2012.

    The Göktürk satellite will also be used for monitoring civilian activities such as control of forestland, tracking illegal construction, rapid assessment of damage after natural disasters, determination of agricultural boundaries and geographical data gathering. The project also aims to furnish national industries with the capability to design and integrate satellite systems and run tests on them here in Turkey.

    Turkish defense industry companies and research centers Turkish Aerospace Industries (TAI), Aselsan, the Scientific and Technological Research Council of Turkey (TÜBİTAK) and Turksat will participate in all phases of the project. The project consists of the construction of an electro-optic satellite system that will be put into orbit, a fixed land station and a mobile land station.

    However, it is said that Israel is trying to block the launch of Göktürk-2, fearing that Turkey will be able to monitor Israel’s territory.

    Cihan news agency

     

  • Ethnic Armenians Look for Political Voice

    Ethnic Armenians Look for Political Voice

    Turkey’s parliamentary campaign debate about the government’s treatment of ethnic minorities prompted hope among the country’s ethnic Armenians, its largest non-Muslim minority, that greater tolerance could be in the wind. But as Turkish-Armenians take stock of their situation post-election, a mood of caution still prevails.

    Only some 300,000 ethnic Armenians are believed to have remained in Turkey after the 1915-1918 massacres of ethnic Armenians by Ottoman Turks. Today, most members of Turkey’s estimated 50,000-strong ethnic Armenian community reside in Istanbul; a tiny minority of ethnic Armenians, who converted to Islam, live in the regions of Tunceli and Artvin.

    Diaspora Armenians may think first of genocide recognition when Turkey comes to mind, but for those Armenians who live in Turkey, another issue carries equal importance – seeing an ethnic Armenian elected to Turkey’s parliament.

    With a nose out for votes, two opposition parties – the Kemalist Republican People’s Party (CHP) and the National Movement Party (MHP) – earlier had planned to include two ethnic Armenians among their candidates in Turkey’s June 12 parliamentary elections. An uptick in nationalist rhetoric, however, prompted them to abandon such plans, some observers say.

    The ruling Justice and Development Party (AKP) performed a similar about-face with wealthy Turkish-Armenian businessman Bedros Sirinoglu. In 2007, the AKP had been the primary choice for Turkish-Armenian voters who hoped that the party would carry through legal reforms that would allow the return of property confiscated from ethnic Armenians, said Margar Yesaian, a columnist for the Taraf daily newspaper.

    Turkey and Armenia’s failed attempt to patch up the past, though, prompted many ethnic Armenian voters to change their loyalties, commented Marmara University’s Pagrat Merinoglu, an ethnic Armenian professor of computer engineering. “Erdoğan’s government broke all our hopes for the reconciliation process,” Merinoglu said.

    Instead, “[t]his time, Armenians have placed their faith in independent candidates who declared their willingness to support ethnic minorities,” said Aris Nalci, an editor at Agos, an Istanbul-based Armenian newspaper.

    Two days after the vote, whether that faith will be justified remains unclear. Some observers, though, say that the lack of an ethnic Armenian parliamentary deputy only feeds the Turkish-Armenian community’s feelings of isolation.

    “The main issue for Armenians here has always been and still is the fact that they are not viewed as rightful citizens of the Turkish state,” said Ozge Genc, a manager of the Turkish Economic and Social Studies Foundation’s Democratization Program. “And Armenians are often treated with greater distrust than all other Christian minorities here.”

    Armenians in Turkey are often portrayed as traitors who committed atrocities against Turks during World War I and sided with Russia against the Ottoman Empire. As a result, many ethnic Armenians have taken Turkish surnames and say that they avoid speaking Armenian in the streets. That wariness extends to politics and the Turkish civil service, Genc continued. “They have to go through a security check, and, as a result, Armenians . . . are not represented in the political field and public sectors.”

    That trend has slowly begun to change. Non-Muslims have been allowed to hold official posts in Turkey since 1965. Fearing discrimination, few ethnic Armenians, though, have applied for such jobs. A marked exception occurred this March when Turkey’s Secretariat-General for European Affairs offered an advisor post to an ethnic Armenian; the offer made headlines in Turkish media.

    Later that month, Ankara appointed Turkish-Armenian economist Daron Acemoglu, a two-time Nobel Prize nominee, as its ambassador to France.

    Breaking the Armenian community’s tradition of silence has been a challenge, but the 2007 murder of ethnic Armenian journalist and Agos Editor-in-Chief Hrant Dink proved a turning point, noted Professor Arus Yumul, the Turkish-Armenian head of the sociology department at Istanbul’s Boğaziçi University. “It’s as if Hrant Dink’s death woke us up and made us remember our identity and not be afraid of being Armenian,” he said.

    An ongoing trend of mixed marriages has contributed to that process. A decade or two ago, marrying an ethnic Turk would have been considered shameful for an ethnic Armenian, Yumul said. “Now, it is viewed almost as something normal. There is no confrontation on this issue, which means that the next generation will be more of a hybrid, and will be able to chose its ethnicity.”

    Meanwhile, some signs indicate that many Turks, too, are taking a fresh look at relations with Armenians. Thousands of ethnic Turks took to the streets to protest the death of Hrant Dink, and protests and other events were staged in Istanbul this April to commemorate the deaths of hundreds of thousands of ethnic Armenians in the World-War-I-era massacres.

    But the process of reconciliation is far from smooth. Silva Kuyumcuian, the principal of Getronagan, Istanbul’s oldest Armenian lyceum, charges that the Turkish government uses ethnic Turkish deputy principals to ensure that Armenian history is not taught and that more Armenian language classes are not offered in Turkey’s 16 Armenian schools.

    “Of course, we are very cautious, and, for now, that’s the only right policy since we are trying to survive and not lose our students,” Kuyumcuian said.

    But rather than silence and caution, some argue that the ethnic Armenian community’s best hope for the future lies in Turkey’s ongoing attempts to build political pluralism. “[O]nly that way can minorities’ problems be solved…,” said Taraf columnist Margar Yesaian. “A step toward democratization has been made, so we hope for more developments.”

    Editor’s note:

    Gayane Abrahamyan is a reporter for ArmeniaNow.com in Yerevan.

  • Will Central Banks of China and Turkey Doom Their Economies?

    Will Central Banks of China and Turkey Doom Their Economies?

    There is growing evidence that some of the world’s major developing economies might be overheating. China and Turkey in particular.

    china erdoganChina has been experiencing rapid economic growth for nearly the whole of the previous decade. The Shanghai composite index is up over 100% since 2005, and roughly 500% in the past 15 years.

    That growth may be coming at a cost. In May, the Chinese Consumer Price Index rose at an annualized rate of 5.5%. This was after the CPI declined in April to 5.3% from 5.4% in March.

    The Chinese have been struggling with containing food inflation for quite some time. In November of 2010, the price of 18 key vegetables rose at an annualized rate of 62.4%, according to Business Insider.

    Food inflation might harm the pocketbooks of Chinese consumers, but Ken Peng—an economist at Citigroup—is warning that wage increases might be behind the inflation, according to Business Day.

    If wages are the driving force behind the inflation, the Chinese economy might be in for a turbulent future, as wage price inflation could signal that Chinese economic agents are factoring in higher inflation expectations.

    Turkey is facing similar problems.

    In May, inflation in the Turkey rose at an annualized rate of 7.2%. Perhaps most alarming, however, was not the actual rate of inflation but rather the rate of increase—inflation was up 2.4% from April.

    Reuters reported that the International Monetary Fund was barred from releasing its full report on Turkey. The Turkish government stated that the report was written by an “inexperienced analyst.” Was this a valid critique, or is Turkey afraid to acknowledge the truth?

    Perhaps the economies of Turkey and China are overheating because the central banks of those countries are stubbornly refusing to enact the necessary reforms.

    The Central Bank of Turkey is attempting to fight inflation by increasing reserve rate requirements—the percentage of deposits a bank must hold as reserves—but refusing to hike interest rates. A policy CNBC described as “unorthodox.”

    The People’s Bank of China, on the other hand, has hiked interest rates and increased reserve requirements to no avail. Some economic commentators have stated that China should remove its currency peg to the dollar. In that case, the Chinese yuan may appreciate, and inflation in China might subside.

    There have been speculative announcements that the Chinese might do exactly that, but as of yet, no follow through.

    These economies may face significant hardships in the future if there central banks cannot get a hold on inflation. However, both economies appear to be growing for a reason, and that growth may continue over the longer term.

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    via Will Central Banks of China and Turkey Doom Their Economies? | Benzinga.com.

  • China admits ‘secret’ aircraft carrier is nearly ready for launch

    China admits ‘secret’ aircraft carrier is nearly ready for launch

    China admits ‘secret’ aircraft carrier is nearly ready for launch

    Officials suggest refurbished former Soviet vessel will operate in disputed waters including Taiwan Straits

    guardian.co.uk

    The rusty-looking Varyag aircraft carrier sold by the Ukraine to China passes through the Bosphorus near Istanbul in 2001 en route to Dalian where it has been refurbished to join the Chinese naval fleet. China initially claimed it was going to be a floating casino. Photograph: Kerim Okten/EPA
    The rusty-looking Varyag aircraft carrier sold by the Ukraine to China passes through the Bosphorus near Istanbul in 2001 en route to Dalian where it has been refurbished to join the Chinese naval fleet. China initially claimed it was going to be a floating casino. Photograph: Kerim Okten/EPA

    The rusty-looking Varyag aircraft carrier sold by the Ukraine passes through the Bosphorus

    China has moved a step closer to launching its first aircraft carrier with senior generals in the People’s Liberation Army finally confirming one of the world’s worst kept military secrets.

    Officers from the general staff acknowledged the existence of a carrier, which one of them described as a “symbol of a great nation”, amid reports that it could set sail within weeks.

    The vessel in question is a defunct Soviet-era carrier formerly named the Varyag that was bought in 1998 from Ukraine by a Hong Kong company on the pretext that it would be used as a floating casino off the shores of Macau.

    Instead it has been upgraded at China’s Dalian naval shipyard with combat sensors and defensive weapons and painted in the colours of the People’s Liberation Army. For several years foreigners have been kept out of the area of Dalian where the work has taken place. But the existence of a 67,500 tonne vessel is not easily concealed and in recent months photographs have appeared in state-run media.

    Chen Bingde, the chief of China’s military general staff, has gone a step further in an interview published in the Hong Kong Commercial Daily (translated link), saying the 300m long carrier “is being built but has not been completed”.

    His assistant chief, Qi Jianguo, suggested the vessel was both a status symbol and a long-overdue strengthening of China’s naval defence. “All of the great nations in the world own aircraft carriers – they are symbols of a great nation,” Qi was quoted as saying. “It would have been better for us if we acted sooner in understanding the oceans and mapping out our blue-water capabilities earlier.”

    Referring to areas where territorial waters are disputed, he said that China faced “heavy pressure” in the South China Sea, East China Sea, Yellow Sea and the Taiwan Straits. But the carrier would never sail into the waters of other nations.

    No further details have emerged, leaving military experts to speculate whether the revamped hulk will indeed mark a significant projection of Chinese military power as a “blue water” force or the revamped hulk will hold only symbolic value, lacking the technology and operational experience to challenge the US navy.

    The commander of US Pacific forces, Admiral Robert Willard, told the Senate in April that he was not concerned about the carrier’s military impact but expected it would make a big impression on public opinion. “I think the change in perception by the region will be significant,” he said.

    In the past year the Chinese military has surprised many foreign observers with the speed of its weapons development – notably the test flight of a J-20 stealth fighter and a “carrier-killer” missile.

    China has yet to announce whether the carrier will be renamed. One report suggests it will be called Shi Lang, after a Qing dynasty admiral who conquered Taiwan – further fuelling unease about its impact on regional stability.

    • This article was amended on 9 June 2011. The original suggested that the carrier will be called Shi Lang, after a Ming dynasty admiral. This has been corrected.

    via China admits ‘secret’ aircraft carrier is nearly ready for launch | World news | The Guardian.