AzerNews, Azerbaijan
July 7 2005

Erdogan demands Armenia pullout

Turkey has called on Armenia to pull out of the occupied Azeri
territories and honor UN resolutions, re-affirming its support to
Azerbaijan’s fair position on the long-standing dispute over Upper
Garabagh.
“Turkey will continue supporting Azerbaijan on the Garabagh conflict
and its position remains unchanged”, Turkish Prime Minister Recep
Tayyip Erdogan

said following talks with President Ilham Aliyev in Baku on Thursday.

Erdogan, who paid his first official visit to Baku last week, said
Turkey has contributed to recognizing Armenia as aggressor in the
Council of Europe resolution. The country supports a settlement
through dialogue between the conflicting sides, he said.
The Turkish Prime Minister told news briefing that the European Union
has not put forth any demands to Turkey concerning recognition of the
so-called ‘genocide of Armenians’ and the issue of opening
Turkish-Armenian border in light of Turkey’s admission to EU.
“Turkey will not open its border with this country until the Garabagh
conflict is resolved fairly.”
Erdogan made an unexpected statement on Russia’s moving arms from its
Georgian bases to Armenia, which astonished the Azerbaijani public.
“The issue is Russia’s internal affair”, he said.
President Aliyev said Turkey has always supported Azerbaijan on the
Garabagh problem.
“Turkey has always stood and will stand beside Azerbaijan. It
supports our fair position and votes in our favor in all
international organizations. We are grateful to the Turkish
government and people for their support.”
The President also said he saw signs of progress in efforts to
resolve the Upper Garabagh dispute after a long period of apparent
stagnation. “Talks between Azerbaijan and Armenia are today going in
a positive direction”, he said.
Touching upon the issue over the Turkish Republic of Northern Cyprus,
Aliyev said Azerbaijan is ready to do its utmost to find a solution.
“The fact that our Turkish brethren continue to live there in such
conditions is certainly unacceptable. The Cyprus Turks should come
out of the isolation.”
Turkey is the only country that recognizes as a state the Turkish
Cypriot-run Mediterranen island populated by ethnic Turks and Greeks.

The President voiced disappointment with the fact that the referendum
held in Northern Cyprus fell short of expectations for solving the
Turkish community’s problems.
Azeri trade and tourism companies plan to open their representations
in the republic and a charter flight will open to Northern Cyprus in
the future. Azerbaijani businessmen will visit Cyprus soon to
establish closer cooperation with their Cypriot colleagues, Aliyev
said.

‘Test for democracy’
The parliamentary elections due in November ‘will be a test for
democracy’ for Azerbaijan, the Turkish Prime Minister said.
Speaking at the parliament on Thursday, Erdogan noted that the
country is currently on the road to democracy.
“Progress in Azerbaijan is very important for us. We want the
country’s people to live in a country honoring democracy and human
rights”, said Erdogan, welcoming reforms being carried out by
President Ilham Aliyev.
“Democracy is a key to long-term stability. The elections will be a
good chance for Azerbaijan to show progress it has achieved in this
area.”
The Turkish Prime Minister also said his country is ready to provide
technical assistance in organizing the upcoming elections. Turkish
observers will be a part of the international mission to monitor the
voting, he said.
Erdogan added that he believes the Azerbaijani authorities and
opposition will ‘pass the test’.
Touching upon Turkey’s bid for EU membership, the Turkish Prime
Minister said the organization should not generate a conflict of
cultures, but, on the contrary, serve their integration.
“We do not see the European Union as an economic or Christian club.
It should be an organization uniting civilizations. For this to be
possible, we should be granted EU membership. But regardless of
whether or not we are accepted, we will stay on the road of
development.”
The European Union is due to start discussions on Turkey’s membership
on October 3.
Erdogan said Ankara will continue its efforts at mastering democratic
values. The current realities show that every nation rejecting
democratic changes and trampling on human rights is not accepted by
the international community, he said.
Erdogan called for closer attention to the global poverty problem.
The huge funds allocated for weaponry around the world should be used
to alleviate poverty instead. $900 billion is earmarked for armament
throughout the world every year, and if just half of the amount is
spent on poverty reduction, this problem can be resolved, the Turkish
Prime Minister said.
“The plight of the poor around the world is turning into a serious
problem for the countries they live in. We must help these people, as
we share a common world with them, otherwise, we will be guilty
before the future generation and history. We all live in this world
just once. The posts we hold are not forever, regardless of whether
you are president, parliament member or prime minister. At the end of
the lifetime, we will not be able to take the possessions we gained
with us. We should therefore leave behind a good memory of our
deeds.”

‘Problems for business remain’

Problems for business remain in Azerbaijan despite growing
investments, Turkish entrepreneurs said in a meeting with the Turkish
Prime Minister in Baku.
Turkey has invested over $2 billion in Azerbaijan so far. 50,000
people are employed at companies opened by Turkish entrepreneurs in
the country, board chairman of the Union of Turkish and Azerbaijani
industrialists and businessmen (TUSIAB) Bagacar Baysal said at the
meeting, attended by representatives of 249 out of 300 Turkish
companies working in the country.
Despite the unresolved status of the Garabagh conflict, Azerbaijan’s
economy is developing very rapidly. The recent launch of the
Baku-Tbilisi-Ceyhan main export pipeline is of great economic and
political importance for Turkey and Azerbaijan, Baysal said. He noted
that Turkish businesspeople are looking forward to the opening of the
Gars-Tbilisi-Baku regional railway line.
Representative of TUSIAB construction section Yusif Ziya Inan said
Turkish businessmen hold 11% share of Azerbaijan’s construction
market but said some problems remain, although they have invested
some $360 million in the sector. “Certain ‘fees’ are requested to win
most of the tenders for construction operations”, he said, requesting
the Prime Minister to assist in solving the problem.
Turkish entrepreneurs also said that customs duties are overly high
in the country.
Businessman Mustafa Gobeklioglu noted that Azerbaijan has signed
agreements with Russia and other neighboring countries on mutual
breaks on customs tariffs, but not with Turkey yet.
“Whereas bringing a ton of cargo from Russia to Azerbaijan costs
$1,200, Turkish businesspeople spend $3,500. Therefore, documents are
needed on lowering customs tariffs between Turkey and Azerbaijan.”
Addressing the meeting, Prime Minister Erdogan said that although
economic and trade ties between the two countries have expanded over
the last three years, they are still below potential.
“The trade turnover should be raised from $550 million to $1 billion.
Turkey is the third country, next to the US and Britain, for the
volume of investments in Azerbaijan. The investments should be
doubled and the commodities turnover raised to $3 billion.”
As for high financial and customs tariffs, Erdogan said ‘there are
problems on both sides’.
“Some decisions should be passed. We should also be fair in laying
out demands. At times we face conflicting demands. But the state has
its interests as well. Let’s work not on instructions from above but
in compliance with the law. We are ready to assist you in the
problems you encounter. Remember that your success is our success.”
The Turkish Prime Minister noted that the idea of setting up the
Turkish-Azerbaijani trade house was discussed and approved at his
meeting with President Aliyev. Erdogan noted that he proposed that
Azeri businessmen invest in production and the services sector in
Turkey, while his country – increase the number of production
enterprises in Azerbaijan. The proposal also envisions establishing
cooperation of the two countries’ entrepreneurs in a third country.
The meeting concluded with electing the Turkish Prime Minister an
honorable member of TUSIAB.