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3. (C) Erdogan has been primed to hear plainspoken expressions of U.S. interest in Turkish action (1) to reach a Cyprus settlement by May 1; (2) to hew to credible economic reform and macro policies; (3) to cooperate unreservedly against terrorist groups of all stripes, including Islamist ones (he rejects the term “Islamic terrorism”); (4) to cooperate on Iraq; (5) to open the border with Armenia; and (6) to reopen the Ecumenical Patriarchate's Halki seminary in a way acceptable to the Patriarchate.

4. (C) In turn Erdogan will argue that raising U.S.-Turkish relations to a higher level depends directly on (1) clear USG political and diplomatic actions to dispel the conviction and consequent resentment among Turks of all political stripes that the U.S. is tolerating step-by-step formation of a de facto independent Kurdish state in northern Iraq; (2) concrete USG actions to remove the PKK threat from Iraq; (3) high-level, sustained USG support for the GOT's new Cyprus initiative; and (4) the clearest possible signal that the U.S. stands behind the democratically-elected government.