Turkish Trade Complaints Anger Shultz : Asserts He Was ‘Hit Behind the Ear’ on Textile Import Quotas

Secretary of State George P. Shultz, clearly angered by the complaints of Turkish businessmen, Sunday rejected an appeal to relax U.S. textile quotas for Turkey’s fledgling clothing industry.

Shultz had hoped to avoid controversy during a day devoted largely to sightseeing but, after a lunch in his honor, he was provoked into an undiplomatic response by Turkish industrialist Sakip Sabanci. The industrialist said that U.S. trade restrictions are damaging the Turkish economy more than U.S. foreign aid is helping it.

“Do you have a word in your language called ‘sandbag?’ ” Shultz asked. “I have been brought here in order to have a nice luncheon . . . (but I) get hit behind the ear.

“It’s perfectly all right not to be satisfied with it (U.S. trade policy),” he said. “But that’s the reality. So there’s no point in bringing me here and beating me over the head about it.”

The lunch, sponsored by the Turkish Industrialists and Businessmen’s Assn., was closed to the press, but the State Department issued a transcript of Shultz’s remarks after Turkish sources relayed the substance of Sabanci’s complaints.

Dependence on U.S. Aid

Sabanci, a self-made millionaire and president of the association, said Turkey would like to reduce its dependence on U.S. aid but could not do so unless it was able to increase its exports, particularly to the United States.

Shultz said that textile quotas were imposed to protect the jobs of U.S. workers. He said the system has been in effect for years and is unlikely to change.

“It doesn’t fit with the principles of liberal trade,” he said. “We all know that. But it’s there.

“As an economist in the university, I’ll say it’s a terrible system,” he added. “As a practical person in any country, it’s the reality. So you have to cope with that reality.”

Shultz’s comments confirmed the fears of Turkish officials that Washington has reached the limits of its generosity with its strategically located ally.

‘Empty-Handed’ Mission

The Sunday editions of most Turkish newspapers reported that Shultz was unlikely to give his hosts much hope about either trade or aid.

“The Shultz mission has come here empty-handed. . . . There will not be much achieved” during the visit, the conservative and usually pro-government daily Tercuman said.

Shultz spent about two hours--almost half of that with no aides present--with Turkish Foreign Affairs Minister Vahit Halefoglu on Sunday during a cruise on a Turkish naval boat through the Bosporus and into the Black Sea. U.S. officials declined to reveal any details of their talks, but there was no doubt that a major topic was the renewal of the agreement that permits the United States to maintain military bases in Turkey.

The original five-year term ended last year, although the pact contains a clause that keeps it in effect indefinitely unless either side terminates it. Turkey has made it clear that it wants better terms in the next agreement.

A Turkish official said that Washington last week proposed extension of the old agreement with only minor changes. The officials said they have not yet studied the plan in detail, but at first glance it does not appear to be satisfactory.

Talks With Premier

Shultz goes on to Ankara, the capital, today for talks with Prime Minister Turgut Ozal and additional meetings with Halefoglu.

U.S. officials believe that Turkey will come to terms eventually, but they are not so confident about extending the base rights pact with Greece, which Shultz is scheduled to visit Tuesday.

A senior Turkish official said his government would prefer more trade to more aid. Last year, Turkey exported $600 million worth of goods to the United States and imported $1.3 billion worth of American products, leaving Ankara with a $700-million trade deficit.

Turkey’s recently developed textile and clothing industry currently supplies less than 1% of U.S. imports. Under the U.S. quota system, those sales will be allowed to almost double next year, but the level is so low that even a substantial percentage increase is insignificant in terms of dollars.

Turkish officials said that Turkey exported about $120 million worth of textiles last year. The quota increases to $190 million this year, but the officials say that without restrictions, they could sell $400 million worth of clothing and other textiles.