Turkey Moves Toward Supporting U.S. in Iraq War

Turkish State Minister Ali Babacan said he was optimistic on prospects for a resolution to support the United States that would unlock a vital multibillion dollar aid package.
"At the moment the general feeling is positive on finalizing the motion in a positive way. I think that on this subject we will be working closely with the United States," Babacan said in an interview with the local CNN Turk television.
Time was running short as U.N. arms inspectors left Iraq on Tuesday after President Bush gave President Saddam Hussein and his sons 48 hours to leave the country.
Prime Minister Tayyip Erdogan was expected to chair an urgently called cabinet meeting to discuss the resolution on Tuesday afternoon following a parliament session. A vote on a deal was expected to be held on Wednesday.
A motion limited to overflight rights would frustrate U.S. hopes of setting up a fully-fledged "northern front" that defense analysts say could shorten any conflict and reduce casualties.
But even a limited deployment would force Iraqi troops to fight on two fronts and ease the burden of a main invasion force entering Iraq from Kuwait. It might also help U.S. troops to seize control of oil fields in northern Iraq that Washington fears Baghdad might seek to sabotage in any retreat.
Ships loaded with armor and equipment for the Fourth Infantry Division, a high-tech body of 30,000 soldiers, are waiting off Turkish Mediterranean ports for orders to disembark or divert elsewhere.

MARKETS RECOVER, OPPOSITION REMAINS
The prospect of war starting without Ankara’s involvement alarmed Turkish financial markets on Monday amid fears Ankara may forfeit up to $30 billion in aid to ease the impact of war.
Babacan stressed the aid package was still available.
Anticipation of a deal triggered a sharp recovery in prices on Tuesday. Shares surged 10 percent, bond yields fell and the lira recovered from a record low close against the dollar.
Turkey fears a war on its southern border could cause economic turmoil and derail a fragile recovery from its deepest recession since 1945.
There are also concerns that Iraqi Kurds could seek to establish an independent state in northern Iraq after a war — a move that may reignite a Kurdish rebellion in Turkey itself.
Iraqi opposition figures were holding talks with Turkish and U.S. officials in Ankara on Tuesday to resolve the issue of the Turkish military’s role in northern Iraq. A Kurdish source said there was a "greater understanding" but no agreement yet.
While Turkey seeks a say in any war and its aftermath, there is also deep public opposition in Turkey to an attack on a Muslim neighbor and many deputies share those concerns.
Erdogan’s Justice and Development Party (AKP) has a large majority in parliament but two weeks ago the assembly rejected an earlier proposal to allow 62,000 troops to deploy here, with many AKP deputies voting against the motion.
The president had said that the motion was unconstitutional in the absence of a second U.N. resolution authorizing force.
But Turkish armed forces chief, General Hilmi Ozkok, who was at Monday’s meeting with political leaders, has made clear his belief that Turkey would be better off with a role in any war than without one. (Additional reporting by Ayla Jean Yackley)