ABSTRACT
Seventy years ago, Turkey's great nationalist hero of the modern era, Mustafa Kemal Ataturk, battled to establish an independent Turkish republic committed to a European-oriented path of modernization. It was not until early 1990 that Haydar Kutlu and Nihat Sargin, who had been arrested in November 1987 upon re-entry into Turkey from exile in Western Europe, were finally set free. Beginning in 1989, Turkey did show a balance of payment surplus, yet domestic demand is so overheated that inflation remains at dangerous levels while budget deficits are very large. NATO allies can alter the external environment by providing to Turkey both more of the tangible benefits and intangible attention that such a key state warrants. The Turkish republic of today retains a healthy suspicion of Moscow. Iraqi aggression in 1990 led to a Turkish acceptance of large US military deployments to Turkey.
