Cablegate: Finalizing the $200 Million Grant to Turkey

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 007973

SIPDIS

SENSITIVE

STATE FOR E, P AND EUR
TREASURY FOR OASIA ASSISTANT SECRETARY QUARLES
STATE PASS USAID/EUROPE AND EURASIA/OM - CARL MABBS-ZENO
TREASURY PASS FEDERAL RESERVE BANK OF NY - ASSISTANT VP
TIMOTHY FOGARTY

E.O. 12958: N/A
TAGS: EAID EFIN PREL TU
SUBJECT: FINALIZING THE $200 MILLION GRANT TO TURKEY

Sensitive but Unclassified. Not for internet distribution.

1. (SBU) Embassy is concerned with the delays in
implementing the Grant Agreement between Turkey and the
United States, signed on September 13, involving nearly $200
million in grant assistance to Turkey. We understand there
are technical legal problems between the Federal Reserve Bank
of New York and USAID holding up disbursement of this grant.
The Turkish Government in its debt program has planned to use
these funds to make payments to the IMF November 7.

2. (SBU) We are concerned that the intent of this grant, to
recognize Turkey's contribution to the Global War on
Terrorism by taking the lead on peace-keeping in Afghanistan,
is being lost in our internal bureaucratic hurdles. The
Turkish Treasury has informed us that the eight-week delay is
not explicable. Ultimately the danger is that this delay
reduces the benefit to U.S. interests from the grant.
Embassy urges State and Treasury to raise with both USAID and
the Federal Reserve Bank the urgency of finalizing
arrangements for disbursing this loan this week.
PEARSON

© Scoop Media