| Debate prior to decision
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| (a) | We recommend a debate in advance, rather than in the wake, of a Ministerial decision on export credit (paragraph 5).
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| Conditions |
| (b) | In cases such as this, we therefore support the general policy pursued by Ministers of making their assent to export credit conditional on the fulfilment of a number of conditions (paragraph 6).
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| (c) | We would counsel caution in making the grant of export credit unduly conditional on, for example, approval of the proposed fuel mix of another country (paragraph 18).
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| Coordination |
| (d) | The UK Government appears to have been the last to fall in line with the Zurich conditions agreed fifteen months ago. It is indeed important that the other export credit agencies involved and their Governments sign up to the four conditions laid down in December 1999 by the Secretary of State. The evidence we have heard suggests that it is likely that they will indeed do so, given that these are the same areas identified by the agencies over a year ago and discussed in some detail over the past year with the Turkish authorities (paragraphs 9 and 10).
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| (e) | We recommend that the United Kingdom use its best efforts to ensure that all those countries contemplating the grant of export credit guarantees for the project prepare for detailed joint scrutiny of the Environmental Impact Assessment Report and the plans put forward by the Turkish authorities, with the intention of producing a united response in the course of the summer. Should credit be given, there would be much benefit in establishing now among participating ECAs a common approach to post-contract monitoring, periodic assessment and public reporting of the fulfilment of undertakings given by the Turkish authorities (paragraphs 7 and 17).
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| DTI |
| (f) | We are surprised that DTI Ministers were not made aware of this controversial project until March 1999 (paragraph 3).
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| (g) | We would be concerned if DTI took their own responsibilities for promotion of the Government's commitment to human rights and sustainable development the less seriously because of a perception that other departments would take up those issues, leading in practice to DTI invariably granting priority to commercial considerations (paragraph 11).
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| (h) | While we accept the reasons for the delay in publishing the two Government-sponsored reports, we consider that the timing and manner of their publication, and of the Secretary of State's conclusions, could and should have been arranged with a greater regard for transparency and the rights of backbench Members of Parliament (paragraph 14).
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| Transparency |
| (i) | The process of consideration of whether to grant export credit for the dam has been bedevilled by an excessive degree of secrecy. We recommend that the discussions within the OECD Consensus group of Export Credit Agencies address the deplorable and counter-productive lack of transparency in the way in which documentation has been kept from the public on the Ilisu Dam Project. The agreement which is expected to emerge from these discussions must ensure a proper degree of transparency (paragraphs 12 and 13).
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| Resettlement etc |
| (j) | We share the view of Ministers that the greatest remaining obstacle to granting export credit for the dam is the prospect of a programme of displacing thousands of local residents without proper consultation, compensation and resettlement. Before considering approval of export credit, the Secretary of State must ensure that there are satisfactory and open mechanisms for monitoring the effects of any resettlement programme, including the effectiveness of local legal remedies in the case of dispute. As a member state of the Council of Europe, Turkey may consider that some involvement of the Council would be appropriate in this task (paragraph 20).
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| Upstream |
| (k) | The second condition raised by the Secretary of State refers to the need to make provision for upstream water treatment plants capable of ensuring that water quality is maintained. While the implementation of this must be closely monitored, there is no reason to doubt that it can and will be fulfilled (paragraph 21).
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| Downstream |
| (l) | We recommend that the Government, preferably in conjunction with other ECAs, publish an independent expert assessment of the formula for maintenance of downstream flows. We recommend a published assurance that the required consultation of neighbouring states has indeed been carried out by the Turkish authorities (paragraphs 24 and 25).
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| Hasankeyf |
| (m) | In view of the diversity of views on the adequacy of the archaeological and conservation programme underway at Hasankeyf, we recommend that an independent expert evaluation of the adequacy of the rescue plan be made publicly available before export credit is decided (paragraph 27).
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