UPDATE - 'Turkey to seek options if US refuses to sell F-35'

UPDATES WITH MORE REMARKS BY ERDOGAN; OTHER EDITS

By Ferdi Turkten

ANKARA (AA) - Turkey will turn to other options if the U.S. refuses to sell F-35 fighter jets to Ankara, President Recep Tayyip Erdogan said Friday.

"You don't sell F-35s [to Turkey]. Very well. But then we will take our own measures and look for other options," Erdogan told a meeting of provincial heads of his ruling Justice and Development (AK) Party in the capital Ankara.

He said Washington did not deliver to Turkey the jets pledged during the term of former U.S. President Barrack Obama.

"They said: 'Our congress did not allow'," Erdogan said, referring to the U.S. Congressmen.

"You rejected when we wanted to buy Patriot [missiles] during the Obama era. You are trying to prevent it again during Mr. Trump's era. We would like to purchase it but you don't want to give it. Then what are we going to do? We will buy it from whoever sells it."

U.S. President Donald Trump reportedly told Republican senators during a closed-door White House meeting Tuesday that he does not want to penalize Turkey for buying the Russian S-400 air defense systems.

Trump has repeatedly voiced reluctance to penalize Turkey over its purchase of the S-400s, including last week when announcing Ankara's removal from the F-35 fighter jet program. Turkey's expulsion is slated to be completed by the end of March 2020.

The Trump administration has maintained that the S-400 could expose the advanced fighter to possible Russian subterfuge and is incompatible with NATO systems.

Turkey, however, counters that the S-400 would not be integrated into NATO systems and would not pose a threat to the alliance.

Trump blames the Obama administration for the current row over its refusal to sign a deal with Turkey to sell it the American Patriot missile system, causing Ankara to seek Russia's support in the purchase of S-400s.

- Attack on Turkish diplomat in Erbil

Erdogan also said last week's attack on a Turkish diplomat in Erbil, northern Iraq justifies Turkey’s decision to launch a counter-terrorism operation in northern Iraq.

“The attack on our consulate employee in Erbil confirms that our Operation [Claw] was the right decision.”

Last week, Osman Kose, who was serving at Turkey's consulate general in Erbil, was martyred in an armed attack at a restaurant. Apart from the diplomat, two Iraqi nationals sitting at the next table were also killed.

On July 13, Turkey launched Operation Claw-2 as a follow-up to the successfully ongoing Claw-1, which was launched May 27.

In its more than 30-year terror campaign against Turkey, the PKK -- listed as a terrorist organization by Turkey, the U.S. and the EU -- has been responsible for the deaths of 40,000 people, including women, children and infants.

Since 2016, Turkey has conducted two major military operations in northwestern Syria -- Operations Euphrates Shield and Olive Branch -- to purge the region of terrorist groups Daesh and the YPG, which is the Syrian branch of the terrorist organization PKK.

- Safe zone in Syria

The Turkish president also touched upon rising incidents of terrorism east of the Euphrates River.

"Turkey is determined to rip apart the terror corridor east of the Euphrates River no matter what the results of talks with the U.S. on establishing a safe zone along the Syrian border are," said Erdogan.

Earlier this week, Turkey’s National Defense Minister Hulusi Akar and James Jeffrey, the U.S. envoy to Syria, met in the capital Ankara to discuss the establishment of a safe zone in northern Syria.

Syria has been locked in a vicious civil war since early 2011, when the Bashar al-Assad regime cracked down on pro-democracy protests with unexpected ferocity.

Since then, hundreds of thousands of people have been killed and more than 10 million others displaced, according to UN officials.

- Turkey - EU relations

Complaining that the EU failed to keep its promises given during membership negotiations, Erdogan said: "Although we fulfilled our obligations on the refugee issue, we know that they [the EU] broke their promises like the ones on financial contributions [for Syrian refugees] and visa exemption."

"Turkey can still be Europe's closest, most powerful and most beneficial friend with highest potential in all respects. We want to remain the same as long as we see that the Europeans are on the same page as well," said the Turkish president.

Erdogan also spoke about European countries' approach on the Syria issue and Turkey's activities in the Eastern Mediterranean.

"I would like to hope that in the coming period, we will provide a reconciliation platform with the EU on regional policies, especially on our sensitivities in Syria, and the Eastern Mediterranean," he went on to say.

Turkey has consistently contested the Greek Cypriot administration’s unilateral drilling in the Eastern Mediterranean, asserting that the Turkish Republic of Northern Cyprus (TRNC) also has rights to resources in the area.

Since this spring, Ankara has sent two drilling vessels -- Fatih and Yavuz -- to the Eastern Mediterranean, asserting the rights of Turkey and the TRNC over the resources of the region.

Athens and Greek Cypriots have opposed the move, threatening to arrest the ships’ crews and enlisting EU leaders to join their criticism.

- Interest rate cut

Erdogan also said the decline in interest rates would revitalize the Turkish economy and help the country reach fuller growth.

"The Monetary Policy Committee of [Turkish] Central Bank's decision yesterday [to cut interest rates] is a vital milestone and I hope it will eventually bring down inflation," the president said.

The Central Bank on Thursday lowered its one-week repo rate 425 basis points.

The bank's policy rate -- also known as one-week repo rate -- fell to 19.75%, down steeply from 24%.