Renewal of Base Agreements on Agenda : Turkey to Press Shultz for Boost in Aid

Secretary of State George P. Shultz haggled his way through Istanbul’s famed covered bazaar Saturday in what amounted to a warm-up for talks with Turkish leaders about terms for renewal of the agreement allowing the United States to maintain military bases in Turkey.

Police maintained a rolling blockade to prevent other shoppers from coming too close as Shultz, his wife and a gaggle of aides made their way through the rabbit warren of rug, gold, leather and copper shops.

The security was unusually tight, even by stern Turkish standards. Local residents said that they could not remember a previous instance when part of the crowded market was closed off for the benefit of visiting dignitaries.

Later in the day, Shultz conferred for almost an hour--about twice as long as scheduled--with Turkish Foreign Minister Vahit Halefoglu in what U.S. officials said was a brief preview of four days of talks. After a weekend in this historic city by the Bosporus, the meeting will shift to the capital, Ankara.

The secretary of state is scheduled to go on to Greece on Tuesday.

Turkish officials have made no secret of their hope to win an increase in U.S. military and economic aid in exchange for renewal of the bases agreement, which has been extended on a year-by-year basis since the original five-year term expired last year. But because of U.S. budget pressures, Shultz has little choice but to tell them that Washington cannot afford it.

Things Going ‘Quite Well’

Shultz told reporters traveling with him that the United States is in no hurry to renegotiate the pact because, he said, things currently “are going along quite well.”

Nevertheless, a senior U.S. official said after the Halefoglu meeting that it would be advantageous for Shultz to complete the Turkish pact before going on to Athens, where negotiations on U.S. base rights are expected to be much tougher.

Other U.S. officials said there is no chance that the United States will agree to Turkey’s request for substantial increases in aid levels.

A senior Turkish diplomat said an Atlantic Alliance study shows that Turkey needs $1.2 billion in economic assistance this year to modernize its armed forces along the longest land border any North Atlantic Treaty Organization nation has with the Soviet Union.

U.S. military and economic aid to the Ankara regime is expected to total about $737 million this fiscal year, following the mandatory cuts imposed by the Gramm-Rudman deficit-reduction measure. The Administration has requested an increase to $970 million for the year that begins next Oct. 1, but officials said that level is almost certain to be pared sharply by Congress.

Turkey has not even suggested that it might shut down the U.S. bases if its demands are not met. But the senior Turkish diplomat said his government wants a new agreement that would “make Turkish-American relations more stable.”

U.S. officials said about the most Ankara can hope for is an exchange of letters in which the Administration would promise to seek substantial aid levels without spelling out the amount. The letters would also take note of the fact that Congress has a right to reduce Administration requests.

Much of Shultz’ weekend schedule was devoted to seeing such Istanbul tourist attractions as the Blue Mosque and ancient Byzantine churches. A senior U.S. official said it was important for Shultz to get a better feel for the country and its culture.

“If something happens in Britain or France or Italy, all of us (in the State Department) know the background, but when it comes out of Turkey, fewer of us know the people and the way things operate.”