Turkey says talks continue with U.S. on Iraq

U.S. President George W. Bush said on Sunday that Monday would be "a moment of truth" in the stand-off with Iraq over its alleged arsenal of weapons of mass destruction, signalling efforts at finding a diplomatic solution were nearing an end.
Washington had turned to its close ally Turkey for the use of military facilities in a possible war against neighbouring Iraq, but a motion early this month to deploy some 60,000 troops in Turkey was rejected by parliament.
The government has dragged its feet on a second motion, and the United States has been focusing increasingly on an invasion force massing around Kuwait. A second motion, if it is submitted at all, seems unlikely now before next Monday.
Financial markets have sagged as a deal looks more remote. Washington offered up to $30 billion in aid to cushion Turkey’s economy against the shock of war, but that money was unlikely to come without permission for the use of bases and sea ports.
"Of course it is not over. We are looking for a way to overcome the problems," Gul said. "We give much importance to relations with our strategic ally the United States, but up until today there have been problems on the Iraq issue."
Gul said the issue would be taken up at a cabinet meeting on Monday, the first since Prime Minister Tayyip Erdogan took over the post from Gul on Friday after a political ban lapsed.