Motorola Case Stuns Ankara

Sources in Ankara noted that Motorola’s application has surprised Turkey. As negotiations continued between the Turkish Savings Deposit Insurance Fund (TMSF) and Motorola, as well as negotiations in the arbitration tribunal in Switzerland in relation to the repayment of debts to Motorola, Turkey had not expected such a move from Motorola. A source summarized the mood of the government on the issue saying: "It is a surprise to us. Motorola opening this case against Turkey, despite the ongoing arbitration negotiations in Switzerland between Telsim and Motorola, comes as a real surprise to us."

Turkey applied to the ISCID, a branch of the World Bank, in the framework of an agreement between the US and Turkey, which came into effect on August 13, 1989 after being announced in the official gazette. The agreement is related to securing and encouraging the investments between the two countries. Under this mutual agreement, one of the parties may apply to the ISCID tribunal if a problem occurs between the foreign investor and the local country. Motorola claims that since the Turkish government seized custody of Telsim and assigned new managers to the company through the TMSF, the ISCID arbitration tribunal has became the authority able to solve the conflict between the two parties. Motorola defended that the issue was with regard to the management of Telsim after it was seized by the government, and claims that it opened the case against the Turkish government because they were no longer addressing Telsim, but the Turkish government.