Apr 11, 2001 - 11:28 AM

Tens of Thousands Protest Turkish Financial Crisis By Selcan Hacaoglu Associated Press Writer

ANKARA, Turkey (AP) - Thousands of Turks clashed with police Wednesday and more than 200 were injured in a protest demanding the resignation of the government amid a crippling financial crisis. Police fired in the air and used water cannons and tear gas to disperse a crowd of more than 70,000 after demonstrators threw stones, bricks and pieces of wood at police in downtown Ankara, the capital. The protesters were demanding to be allowed to walk to the parliament building.

Scores of demonstrators, policemen and journalists were injured by flying objects, and many officers were forced to hide behind armored vehicles to protect themselves.

At least 202 people, including 137 police officers, were treated in hospitals, the Anatolia news agency reported. Three people, including one policeman, were reported in serious condition.

A group of demonstrators, most of them shop owners, used a truck to ram into a police armored personnel carrier. Paramilitary police wearing bulletproof vests were called in as reinforcements but were later pulled back.

Demonstrators tore large stones from sidewalks and set up barricades before police finally succeeded in forcing the protesters out of a large square in central Ankara.

Groups of protesters smashed shop windows around Ankara's main square. Scores were being detained by police, who beat demonstrators with nightsticks.

Interior Minister Sadettin Tantan condemned the violence, saying that illegal groups may have infiltrated the demonstration, private television NTV reported. He did not specify which groups, but officials had earlier accused Islamic groups of trying to take advantage of the protests.

Wednesday was the largest protest since the latest economic crisis that has seen the lira fall by more than 40 percent, interest rates skyrocket and a half-million layoffs.

Critics have pointed to the government's reluctance to carry out structural reforms, including restructuring the banking sector and swiftly privatizing key state companies, as the main cause of the crisis.

Prime Minister Bulent Ecevit said Wednesday his government had no plans to leave office.

"If they are shouting 'resign,'" Ecevit said, "they also have to provide an alternative. I am not glued to my chair."

"I do not believe that the search for a new government would help the country, therefore I am staying at my post, and will stay," Ecevit said.

Within the current parliament, there are few alternatives to Ecevit's three-party coalition government.

At least 40,000 people marched in the Aegean port city of Izmir, where shopkeepers refused to open their shops. Another 20,000 people marched through the central Anatolian city of Konya.

The demonstrations followed Tuesday's call by Turkey's biggest business group for the government to resign over its handling of a financial crisis.

The Turkish Union of Chambers, an umbrella group representing companies, said in a statement that the government had lost the trust and confidence of the people.

Small businesses are struggling after the lira's fall. High interests rates have also made it more difficult for companies to pay their debts.

One demonstrator in Ankara, Salih Erdogu, a shop owner, said he was forced to declare bankruptcy because of the latest crisis.

"I had five workers with me. They are all jobless now and so am I. I am ashamed of this," Erdogu said, tears rolling down his face.

Turkish officials opened talks with an International Monetary Fund delegation Sunday on the details of a recovery program. They are looking for $10 billion to $12 billion in foreign loans. The IMF has already promised to move forward $6.25 billion in loans that have been previously pledged.

The military announced Wednesday it was postponing 32 projects worth $19.5 billion due to the economic crisis. It did not specify which projects would be postponed.

AP-ES-04-11-01 1127EDT

http://ap.tbo.com/ap/breaking/MGAFC918FLC.html

-- Carl Jenkins (somewherepress@aol.com), April 11, 2001