The U.S. ambassador to Turkey said Friday that Washington hopes the S-400 issue between Turkey and the U.S. can be resolved.
"We hope that the issue of S-400 can be resolved. But if it cannot be, we will continue to focus on all the areas of our cooperation that are not directly affected by the sanctions which we put into place," David Satterfield told reporters, evaluating Turkey-U.S. relations.
On Dec. 14, the U.S. imposed sanctions on Turkey over its acquisition of the Russian S-400 missile defense system.
U.S. officials have voiced opposition to the deal, claiming the S-400s would be incompatible with NATO systems and expose F-35 jets to possible Russian subterfuge.
Turkey, however, stressed that the S-400s would not be integrated into NATO systems and pose no threat to the alliance or its armaments.
Turkish officials have repeatedly proposed a working group to examine the technical compatibility issue, which is not on the table, according to the envoy.
Touching on the case involving Turkey's state lender Halkbank, Satterfield said it is "not a matter for the U.S. administration," adding, "The matter of the judicial proceedings in the Southern District of New York with respect to Halkbank case lies exclusively in the whelm of U.S. courts."
Economic ties
Satterfield, on economic relations between the two countries, said the U.S. has investments of over $30 billion (TL 212.6 billion) in Turkey and a current bilateral trade volume of over $20 billion along with 1,700 American companies operating in the country and employing more than 75,000 people.
All these are important elements of the economic ties between the countries, he said reminding that the previous administration has put a trade target of $100 billion which is quite ambitious considering the current trade volume but was designed in this way.
Satterfield said they and the agencies in Washington "continue to do everything to promote Turkish trade to the business community in the U.S."
The U.S. diplomat further emphasized that in the last few months, there has been real progress in terms of foreign direct investment (FDI) to Turkey, which is encouraging. The fixing of the value of the Turkish lira was also among the encouraging aspects. "These are positive developments," he said, adding that they have always relied on the basic strength of the Turkish economy. On the first day of this month, the Turkish lira rallied over 1.9% to its strongest since August.
He stressed that there are strong aspects that need to be retained and used through fiscal and monetary policies that are credible, transparent and predictable, three words that Satterfield says are not his but the words of Turkey’s recently appointed central bank Gov. Naci Ağbal and Economy Minister Lütfi Elvan.
The interest rate hikes that came under the new chief of the Central Bank of the Republic of Turkey (CBRT) and the government’s promise of a new more market-friendly economic era have raised expectations that Turkey will get a handle on inflation, boost its monetary credibility and rebuild FX reserves.
July 15 coup attempt in Turkey
Touching upon Turkish Interior Minister Süleyman Soylu’s recent remarks on the July 15 failed coup attempt in Turkey and those behind it, the U.S. ambassador said they are "concerned over the remarks from high-level Turkish authorities" pointing to the U.S.
Soylu on Wednesday said the Gülenist Terror Group (FETÖ) was not the only actor behind the failed coup attempt that took place on July 15, 2016, in Turkey, as he blamed the U.S. for also being responsible for the military takeover, as it had been in the past.
"These are unfounded claims. They are not the responsible statements of an ally and a strategic partner," he said.
Ankara and Washington, however, have been at odds over several issues such as the U.S.’ siding with the PKK terrorist organization’s Syrian affiliates under the pretext of fighting against Daesh. Ankara accuses Washington of ignoring Turkey's security concerns, arguing that using one terrorist group to fight another is illogical.
The YPG, which Washington has defined as "tactical allies" since the Barack Obama period, is the extension of the PKK, which has claimed the lives of more than 40,000 people in a 30-year terror campaign. The U.S., however, while listing the PKK as a terrorist group, opted to continue its military support for the YPG terrorist group by providing truckloads of military supplies and training despite the warnings of its NATO ally.
Mentioning that his country's position regarding the YPG has not changed, Satterfield said they will continue to work with the YPG terrorists in northeast Syria.