U.S., Turkey haggle over war aid

American and Turkish diplomats held intensive and inconclusive negotiations on Thursday over the terms of a multibillion-dollar economic aid package designed to secure Turkish support for a potential U.S.-led invasion of Iraq and insulate Turkey from war costs.

After a day of discussions that included Secretary of State Colin Powell and Treasury undersecretary John Taylor, the two sides remained billions of dollars apart, said a senior Turkish official who described "slight movement, but not enough to satisfy the Turks."

Turkey, which shares a 218-mile border with Iraq, hasn't agreed to allow U.S. troops to use its facilities in the event of war, and Prime Minister Abdullah Gul told reporters in Ankara that the decision would depend on the outcome of the aid talks.

Turkey received a commitment of military help Thursday from Germany and the Netherlands, which prepared to ship Patriot missiles there despite the Nato alliance's inability to agree to a Turkish request for protection against a potential Iraqi threat.

Turkey continues to seek reconnaissance planes and units able to respond to germ and biological warfare. U.S. officials say Turkey will certainly receive financial help from the United States.

The principal questions are how much and in what form, said a State Department official who reported that Foreign Minister Yasar Yakis and his team are "looking for a budget sweetener. They want money, as much as they can get."

While neither side would specify numbers, sources reported that they are far apart. Turkish officials and media have cited figures ranging from $14 billion to $25 billion – amounts the Americans consider outlandish. U.S. officials said they may yet reach an agreement before Yakis departs today.

"There is a gap, but we think we've made a fair offer," the official said. "One of the arguments we're making is that an Iraq that is normal and democratic and economically viable is a huge benefit to them. Yes, there may be some short-term challenge to the Turkish economy, but over the long term, the great benefit is to Turkey."

The Bush administration is growing impatient with the Turks at a time when senior policy-makers have said a war to oust Iraqi President Saddam Hussain may be just weeks away.

Turkey's parliament is set to vote Tuesday on the U.S. request to station an estimated 30,000 to 40,000 troops in the country, but Gul said he couldn't promise that it would take place on time.

A State Department official said: "The United States is coming to the end of its line and is expecting some kind of action."

The Ankara government has taken steps to help the Americans by allowing wider use of military sites and seaports, signing an agreement last Saturday to permit about 3,500 U.S. troops and civilian workers to modernise such facilities there.

But it has protested that a war with Iraq would be deeply unpopular. Economic contributions are needed to ease the sting, the Turks have told the Americans. The talks are designed to resolve three sets of issues, the Turks reported. The first comprises the rules that would govern U.S. troops stationed in Turkey. The second is the economic package.

The third is a set of principles to define post-conflict Iraq, a particularly sensitive subject because of the enmity between the Turkish government and the Kurds who control much of northern Iraq.