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this defeat which opened the gates to a long history of Turkish colonisation of Anatolia. However, the Turks' best known achievement is undoubtedly the foundation and the expansion of the Ottoman Empire. This Empire flourished in the late thirteenth century as a small principality near Bursa. Osman Bey became its leader in 1281 and founded a dynasty which was to reign for six centuries, the longest imperial dynasty in human history. In 1362, the Ottoman armies began their conquest of the Balkans. Then, following a war against Tamerlan's army, it conquered Hungary and most of South-East Europe in 1421, in addition to Anatolia. In 1453 a new era began with Mehmet the Conqueror's conquest of Constantinople, which he renamed Istanbul and made the capital of his expanding Empire.
At its height during the seventeenth century, the Empire controlled Asia Minor, Crimea, the Caucasus, Mesopotamia, the Middle East, North Africa and the Balkans. The Black Sea, the Red Sea and half of the Mediterranean became Ottoman "lakes". But changes brought to the Sultanate's structure diminished the monarchy during the eighteenth and nineteenth centuries. The Ottoman Empire entered in World War I on the side of Germany. When the war ended, occupation armies from Greece, Britain, France and Italy were on Turkish soil. The Treaty of Sèvres of 1920, which aimed to dismantle the Empire was signed by the Sultan but rejected by Ataturk. He carried the flag of resistance and, following violent battles, the Turks re-took the control of their country. The Treaty of Lausanne of 1923 acknowledged that situation and the same year, the Republic of Turkey was born. A strategic position The strategic position of Turkey is of great importance. As a natural bridge between Asia and Europe and as the protector of the Black Sea and the Mediterranean straights, Turkey is a country of significant importance in the region. The significance of Turkey's regional role increases and the country is determined to establish good economic and diplomatic relations with its neighbours. At the core of Turkey's foreign policy stands its commitment to western values and institutions. Turkey is a parliamentary democracy with a liberal economy. It is one of the founding member states of the Council of Europe and is linked to the European Union through a Custom Union as well as having candidate country status to the EU membership. Atatürk declared that Turkey was pursuing "Peace at home, Peace in the World". Along the line of the peace efforts of the United Nations in Korea in the Fifties, to which it contributed, Turkey continues to participate to UN interventions in the Balkans, in Somalia and now in Afghanistan. Turkey also represents a valuable link between the Western World and Islam. Turkey is one of the few countries to enjoy good relations with both Israel and Palestine. Being a member of the Organisation of the Islamic Conference, Turkey is therefore the only member state in NATO and the Council of Europe to take part in this fifty member strong organisation.An Ally of the West Between the two World Wars, Turkey initiated its cooperation with Western countries. Today this commitment is demonstrated in Turkey's application to EU membership. Turkey has been an associate member of the EU (and its former organisations) for forty years and has reduced custom tariffs and opened its borders to Europe. Since 1996, Turkey and the EU are linked by a Custom Union which implies that the EU producers have a tax-free access to a Turkish market of nearly 70 million consumers. The Turkish companies have responded positively by improving their production in order to compete with these imported goods. Turkey has thus become an important trade partner of the EU.
Turkey offers investors a unique range of advantages. Over the past three decades, Turkey has undergone a transformation; with its economy being among the fastest growing eco-nomies of Europe, its financial markets growing rapidly, a dynamic entrepreneurship, an industrial infrastructure improving significantly and an active society of consumers. Energy for the future Formerly known as being the country where the Silk Road toward the mystic East starts, Turkey has gained new importance. Indeed, its location on the main export routes of the most recently discovered oil and natural gas resources, i.e. the rich basin of the Caspian Sea, which has not been yet exploited. Turkey looks to its future with confidence as important reforms have been adopted. In 2004, a crucial year in terms of Turkey-EU relations, one should assess carefully Turkey's contributions to the EU. bemixfinance@skynet.be Anadolu Kredi