GOOD MORNING--TURKEY PRESS SCAN ON JULY 18

HURRIYET

--ACTUAL AGENDA

Since Turkey is wasting its time with political disputes, it cannot deal with vital problems. Drug dealers sell a shot of heroin in front of schools just for 5 YTL (nearly $4.1). During the last one year, security forces impounded 31.4 tons of hashish and 13.2 tons of heroin. During the operations, more than 23 thousand people were arrested.

--SECRET TALKS WITH YEREVAN

It was revealed that Turkey and Armenia held a series of secret and historic meetings in Switzerland on July 8. A high-level official from the Ministry of Foreign Affairs headed the Turkish delegation during the talks which led to a positive atmosphere between the two countries.

--THE CARLYLE GROUP ENTERS TURKISH MARKET

The Carlyle Group, a leading global private equity firm, has acquired a 50 percent stake in TVK Shipyard (TVK), a Turkish shipbuilder specializing in chemical tankers and other specialty vessels. It is the Carlyle's first investment in Turkey.

MILLIYET

--HAYDARPASA MANHATTAN TAKES START

Istanbul Metropolitan Municipality pushed the button for the Haydarpasa Project which was brought up by the government but criticized by several non-governmental organizations. Municipality officials contracted a company for 3 dimensional modelling and consultation works of the land at Haydarpasa district of Istanbul which is cited as "Haydarpasa Manhattan" because of skyscrapers to be built.

--"GOVERNMENT SHOULD OFFER AN APOLOGY TO OKKIR'S WIFE"

Istanbul Chief Public Prosecutor Aykut Cengiz Engin said he learned the condition of Kuddusi Okkir, who was arrested under the Ergenekon investigation and diagnosed with cancer in jail, from Milliyet. Okkir died 4 days after he was released.

Engin said he agreed with Okkir's wife Sabriye who said "government should offer an apology," according to daily Bugun.

--MUSTAFA KOC VISITS AYGUN

Koc Holding Chairman Mustafa Koc paid a visit to Sinan Aygun, chairman of Ankara Chamber of Commerce, who was arrested within the scope of Ergenekon investigation and then released. Koc Holding's high level executives were also in attendance at the meeting.

--IRANIAN MINISTER IN ANKARA

Following U.S. National Security Adviser Stephen Hadley, Iranian Foreign Minister Manuchehr Motaki arrived in Ankara too. Motaki was invited to Turkey by Turkish Foreign Minister Ali Babacan at a time of U.S.-Iranian convergence.

SABAH

--41 CITIES TO BE LEFT WITHOUT WATER IN 2 YEARS

Environment Minister Veysel Eroglu said that there was currently a water shortage in 7 Turkish provinces. "By 2010, almost half of the country will be left without water," he said.

Eroglu said that, according to a survey on water reserves, an investment of $2.9 billion is needed in the next 4 years in order to provide a sufficient amount of drinking water in all provinces.

--USA WARNS TEHRAN FROM ANKARA

U.S. National Security Adviser Stephen Hadley sent a message to Iran during a confidential security summit held in Ankara. "There will not be any negotiation unless Tehran gives up the uranium program," Hadley said.

VATAN

--USA-IRAN BARGAINING IN ANKARA

Turkish government which mediated between Israel and Syria has launched initiatives in regard to "nuclear" crisis between the United States and Iran. Ankara hosted U.S. National Security Adviser Stephen Hadley yesterday. Turkish authorities will hold talks with Iran's Foreign Minister Manuchehr Motaki today.

--CENTRAL BANK RISES INTEREST RATES

Central Bank has raised short-term interest rates from 16.25 percent to 16.75 percent. In the meantime Istanbul Stock Exchange (IMKB) benefited from positive climate in foreign markets and stocks gained 3.63 percent in value.

CUMHURIYET

---DID TURKEY STEP IN?

U.S. National Security Adviser Stephen Hadley held talks with Turkish officials and Iranian Foreign Minister Manuchehr Motaki arrived in Ankara prior to Geneva talks on Iran's nuclear program. High level visits to Turkey raised the question of "whether a diplomatic process has been initiated through Turkey."

--COUNTDOWN STARTS FOR CLOSURE CASE

Countdown started for the closure case filed against ruling Justice and Development Party (AKP) following the report submitted by Constitutional Court's rapporteur Osman Can. The jury, who would start hearing the case in the coming days, has three options. The jury will either reject prosecutor's request to close the party, or deprive it partially or completely of Treasury funds, or shut down the party.

RADIKAL

--TWO MOST IMPORTANT CLAIMS FROM PROSECUTOR OF ERGENEKON PROBE

Two claims in the indictment about the Ergenekon probe seem to determine the route of the trial. These are the armed attack on members of the Council of State and bomb attack on the Cumhuriyet daily's headquarters in Istanbul. The prosecutor carrying out the Ergenekon probe, interrogated Osman Yildirim, one of the suspects.

Yildirim said that Alparslan Aslan, who staged the attack on the Council of State, and he met Veli Kucuk, another suspect, and that Kucuk gave them the bomb to be hurled at the Cumhuriyet offices.

--IRAN DIPLOMACY IN ANKARA

Ankara will host Iranian Foreign Minister Manuchehr Motaki today. Prior to Motaki's official visit to Turkey, U.S. National Security Adviser Stephen Hadley held a series of talks with Turkish authorities. The Guardian wrote that the United States would send a diplomat to Iran for the first time since the revolution.

YENI SAFAK

--TURKSAT 3A STARTS TO SERVE

Turkey's new generation communication satellite Turksat 3A which was launched from the Kourou base of French Guiana on June 13th began serving after being located in the orbit of "42 degrees east". The satellite will serve in a vast geography from China to Atlantic Ocean.

--BUSH'S SECURITY ADVISER HOLDS TALKS IN ANKARA

U.S. President's National Security Adviser Stephen Hadley who held talks in Ankara said the United States welcomed the reforms that had been fulfilled in Turkey in the recent period. "These reforms which are also supported by Turkish people should continue," Hadley stated.