Folks
 OPIC, EXIM and the Department of State each raised the issue of Trakya 
withTurkish Minister of Economy Dervis yesterday reflecting a unified front 
of the USG on the issue.
 Harmon, Chairman of EXIM, apparently did not go into great detail on the 
situation but EXIM staff had a side conversation with the Deputy Sec'y of 
Treasury in which the issue was addressed in greater detail.
 At the OPIC meeting, OPIC focused on Trakya and went through the situation 
in great detail.  Minister Dervis was not aware of all the details, but is 
now.  He stated that the sector had to be cleaned up.  He noted that the IMF 
deal had to first be struck but that the energy sector had to be addressed in 
the "near term".   Drumheller's sense was that in the next several weeks 
there would be definite action on the part of Treasury or both Trakya and the 
USG need to take further steps.  He wants to go ahead and meet with the 
lenders with an eye towards preparing the letters re the guarantee and then 
gear up if necesary to beat on the GOT.
 Alan Larson, Undersecretary of State for Economic Affairs also spoke to 
Dervis and stated to the Minister that the continuation of the Trakya 
situation would become a major public issue between the US and Turkey.  That 
this is now the official position of the Department of State is a huge step 
forward.  Thanks John