Current Intelligence Weekly Summary

Approved for Release: 2026/03/06 C03176167
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CURRENT INTELLIGENCE WEEKLY SUMMARY
regions would probably require
less initial investment than
the expansion of livestock pro-
duction. The mild climate and
cheap agricultural labor in the
Aegean and Mediterranean coastal
regions favor both expansion of
the truck farming already car-
ried out there and the estab-
lishment of a local food-proc-
essing industry to handle the
high-value food items which
the area can produce. Such lo-
cal items as peaches, artichokes
peas, shrimp, and anchovies
could compete in quality and
price in any market, if proc-
essed, packaged, and delivered
according to market standards.
Another potential source
of foreign exchange now receiv-
ing great attention is tourism.
Present plans call for large- A
scale government support, in-
cluding promotional advertising,
low-interest loans for the con-
struction of modern tourist fa-
cilities, relaxation of many of
the petty customs regulations
which have irritated foreign
visitors, and the establish-
ment of a government-sponsored
training school in hotel manage-
ment.
It is too early to assess
the chances for developing an
important tourist industry in
Turkey, but, as a West German
adviser on tourism has recently
pointed out, the road distance
between Hamburg and Istanbul is
approximately the same as from
New York to Miami, the number
of potential touristsiazwestern
Europe is increasing rapidly,
and the roads across Yugoslavia
and Greece are being improved.
These factors, together with
the pleasant climate and scenery
of western Turkey and its prox-
imity to the_heavily traveled
Mediterranean cruise routes,
favor the expansion of tourism
and have made it an important
objective of the Five-Year Plan.
Drawbacks
Although Turkey“s natural
endowments offer the prospect
of significant increases in
foreign exchange earnings, prog-
ress is threatened by a number
of institutional factors. The
peasant population, while docile
_%
'.and hard-working, is conserva-
tive and resistant to change.
There is also a serious short-
age of technically qualified
personnel to carry through
many of the government's planned
programs. The dead hand of
bureaucracy rests heavily on
enterprise, stifling initia-
tive and often imposing exor-
bitant administrative costs.
Despite widespread under-
employment and a low wage scale,
labor is expensive in Turkey
because of its low produc-
tivity. Private capital is
scarce, and tends to be in-
vested either in land or in
urban housing. Entrepreneu-
rial and managerial classes "
are lacking, and young Turks
with better than average edu-
cation prefer to seek their
fortunes in government or the
professions rather than in
business.
Nevertheless, despite its
reliance on outside financing,
its weak currency, lack of know-
how, and poor past record, the
Turkish economy possesses an
essential vigor which could
project the nation into an
era of higher living stand-
ards. The country's natural
resources, if properly used,
are capable of providing the
base for a rate of capital
formation adequate to sustain
unaided economic growth. AS
in the past, much will depend
on the integrity and ability
of the governing body.
The present regime appears
more willing to face reality
in economic planning than its
predecessor. Much of the re-
sponsibility for coordinating
governmental development pro-
grams is exercised by Minister
of State Turhan Feyzioglu, an
able administrator with a repu-
tation for hard work. Feyzioglu
has broughttogether a group
of advisers, many of whom--hold-
overs from the CNU period--are
less subject to political pres-
sures than those whom they have
replaced. There are hopeful
signs that the present group
will carry out the government's
programs in a more coordinated
manner than was achieved by
The previous administration.
.
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23;'.;.,Mar 62 SPECIAL ARTICLES Page 8 of 8."
. Approved for Release: 2026/03/06 C03176167 -a
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