Turkey says deal with US is within reach

TURKEY: Turkey yesterday signalled that it was within reach of an urgently awaited deal with the United States allowing US forces…

TURKEY: Turkey yesterday signalled that it was within reach of an urgently awaited deal with the United States allowing US forces to deploy on Turkish soil for a possible attack on neighbouring Iraq.

Prime Minister Mr Abdullah Gul, speaking as US naval ships waited not far from Turkish ports and troops readied for airlift, said there were still differences on a key financial compensation package and other issues.

"But . . . they understand our worries, we understand theirs," he told a meeting in Istanbul. "A result will be reached in the coming days."

The US, possibly only a few weeks away from war, had expected Turkey's parliament to approve deployment of tens of thousands of troops on Tuesday. A decision has been delayed while Ankara seeks improvement on an approximately $26 billion (€24.15 billion) package to cushion the country against the impact of war.

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Washington, which with much further delay might have to abandon an assault from Turkish territory and divert forces south to join a main invasion force near the Gulf, said on Thursday its offer was final. But officials said some fine-tuning was possible.

In Washington, a Bush administration official said the talks had taken a "very positive" turn but a final agreement had yet to be reached.

"It's progress. It's very positive," the official said. "We've been working through tough issues."

The official said the size of the economic aid package was unchanged. It would still cost US taxpayers $6 billion and provide Turkey with grants, credits and US government backing for up to $20 billion in loans.

While holding firm to the $6 billion figure, officials say the US may alter the structure of grants and loans to give Ankara more flexibility in how it uses the money and in how much it can raise through private banks with US backing.

If agreement is reached over the weekend, a vote might not take place until Tuesday.

A memorandum of understanding must then be hammered out and signed, and this could take several days.

Troops and equipment would then be brought in through southern, Mediterranean ports and through air bases currently being upgraded by US and Turkish engineers, under an interim deal.

Ships bearing armour and other military vehicles of the US Fourth Division were, according to diplomats, not far from Turkey.

Up to about 30,000 troops would be flown in from bases at Fort Hood, Texas, and Fort Carson, Colorado.

Around 250 US troops bound for Turkey arrived at a Romanian air base near the Black Sea port of Constanta late on Thursday. Others might arrive quickly from Germany.

Turkish Foreign Minister Mr Yasar Yakis said he thought a deal would not be rejected by parliament, despite public misgivings.