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Viewing cable 02ANKARA7973, FINALIZING THE $200 MILLION GRANT TO TURKEY

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Reference ID Created Released Classification Origin
02ANKARA7973 2002-11-06 15:10 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ankara
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