front and a storeroom behind. Overhanging eaves or roofed alleys give protection against the weather. Fruit and vegetables of every kind are sold in open-fronted shops and closed shops deal in hardwares, yoghurt, cheese, bread, cakes, and pastries. In other areas of the city vendors of vegetables, fruits and even drinking water cry their wares through the streets.

Women usually shop early in the local bazaar, and their purchases are carried by a market boy. Customarily the trader and the prospective buyer bargain to agree upon a price. Deals are sometimes made haphazardly and identical goods may be offered at different prices in different areas of the bazaar. In Istanbul bargaining has been abolished and the shopkeeper is required to put a price label on all goods displayed.

Storage

Lack of storage space, especially at the seaports, is a pressing problem to which the government has devoted much attention in the past 20 years. Though ports are still congested, warehouse space has been increased at Istanbul, Izmir, Samsun, Mersin, and Trabson. The Soil Products office operates grain elevators throughout the country to store cereals purchased from farmers. Such facilities and facilities for other products, including cold storage, were either too expensive or too distant for the small farmer to make use of them in order to get better prices for his produce. The Meat and Fish Association has cold storage space for fish and food as well as refrigerated railroad cars. Both this organization and the municipal governments manufacture ice, which is sold to private and industrial customers in addition to renting cold space in ice plants.

TRANSPORTATION, COMMUNICATIONS AND

PUBLIC UTILITIES

Difficult topography and an area large both in relation to the population and the country's financial resources have combined to restrict the development of a comprehensive network of roads, railroads and communications, especially in the east. During periods of political unrest and two World Wars the transportation system deteriorated and some portions were badly damaged. The most extensive development was undertaken in the interwar years, and after World War II foreign aid assisted reconstruction and improvements.

Although animal transport is still used in most areas of the country, it is gradually giving way to other forms of transportation. The transportation system is still inadequate to meet the needs of the growing consumer market though there have been

extensive additions to the railroad and highway networks as well as considerable development of the airways and sea ports.

At the end of 1967 there were 130,225 miles of roads of all sorts, including 20,463 miles of state highway and some 72,500 miles of unimproved roads. Since World War II there have been tremendous improvements in the Turkish highway system and by the mid-1960's emphasis was being placed on improving existing roads rather than the building of new roads. However, the Second 5-Year Plan includes a superhighway through Turkey from Greece to Syria, via Istanbul and Ankara. This artery will cross the Bosporus by a bridge. A coastal highway linking Istanbul and Iskenderun is also planned and a highway from Izmir to Ankara has been opened. One of the most important post-World War II projects now completed is the 600-mile Erzerum-Iskenderun road. In 1967, there were about 106,000 passenger vehicles, 100,000 trucks and 25,000 buses licensed to operate in the country. Freight traffic on the highways amounted to about 7.5 million ton-miles, and passenger traffic totalled some 22.5 million passenger-miles. While the major cities and towns are fairly well served by the highway system, the majority of the country's 40,000 villages have no improved roads linking them to state highways or the nearest towns.

When the Republic was established, the railroads constructed under the Ottoman Empire by European investors were acquired from their foreign owners, nationalized and formed into a single national system consisting at the outset of about 2,500 miles of track, primarily in Anatolia. New railways were built, including the line from Eregli and Zonguldak to Ankara, Kayseri, and Adana, and the series of lines which later linked Samsun on the Black Sea with Kayseri, Erzerum, Malatya, Adana, and Kurtalan.

Rail traffic began to increase considerably after World War II and in 1954 the operation of railways passed from the Ministry of Communications to an autonomous government-owned enterprise, the State Railways (TCDD). By the early 1960's some dieselelectric locomotives were introduced, and some units were converted from coal to oil.

In 1965 there were about 5,000 miles of state-owned railway (most track is standard gauge-56.5 inches), and the rolling stock consisted of 859 steam, 165 diesel, and 33 electric locomotives. There were 15,850 freight cars and 1,145 tank cars. Freight accounted for about 74 percent of the total traffic and was increasing while passenger traffic was declining. By 1967 freight traffic totalled 3,125 ton-miles and railroads carried about 85 million passengers.

The country's railway system has international connections

with Syria and Iraq in the south and with railways of the Soviet Union via Kars and Tiflis on the northeast. In Europe, a trunk line from Istanbul makes connections with railways in Greece and Bulgaria. Development planning calls for an additional 1,400 miles of main line. The expansion of the rail system is proceeding with the construction of a line from Mus, in Eastern Turkey, to the Iranian border. This line will meet a similar line under construction in Iran, linking the rail systems of the two countries. There was no railway bridge across the Bosporus in 1968 and all passengers and freight passing between Asia Minor and Europe had to be transshipped by car ferry or lighter.

In 1938 a State Airways Administration was established. Later it became Turkish Airlines (Turk Hava Yollari), and in 1957 British Overseas Airways Corporation became a partner in the company. With minor exceptions domestic air transport is the monopoly of this company. Domestic air service connects about 30 of the major cities in the summer, and about 15 in the winter. The most important commercial aerodromes are the international airports serving Istanbul and Ankara. In 1967 Turkish Airlines recorded 207 million ton-miles of freight (11 million in 1963).

The main seaports in Turkey are Istanbul, on the Bosporus, and Izmir on the Aegean Sea. Secondary ports include Zonguldak, Eregli, Samsun, Trabzon on the Black Sea, Iskenderun and Mersin on the Mediterranean, and Izmit on the Sea of Marmara. In addition, there are over 50 minor ports, mostly engaged in coastal trade.

The country's coastline stretches 3,000 miles and because communication with the interior is difficult through the mountains, the sealanes are important to the national economy. Beginning in 1923 a merchant fleet was built up, and by 1965 the country had nearly 300 merchant vessels of 150 deadweight tons or over. About half of these are owned by the government's Maritime Bank (Denizcilik Bankaşi). The merchant fleet has a few passenger ships and tankers but most of the vessels are freighters. During 1965, 6.5 million tons of international cargo were handled at Turkish ports, but only about one-third by Turkish vessels.

Istanbul handles about 65 percent of the country's seaborne trade and suffers from congestion because of inadequate port installations. However, it has good shipbuilding and drydock facilities as well as excellent rail and highway connections. Izmir is a shipping point for agricultural produce from Western Turkey, especially tobacco, dried fruits, and vegetable oils. Iskenderun in the far southeast has rail connections with Syria, Iraq and eastern Turkey and is the country's third leading seaport. Adana is the natural center of the rich Çukurova agricultural region in the

southeast and its trade passes through the port of Mersin. The only inland waterway of importance is Lake Van where traffic consists primarily of small craft and vehicular ferries.

Postal, telephone and telegraph services are operated by an autonomous government enterprise, the General Directorate of Posts, Telegraph and Telephone, under the jurisdiction of the Ministry of Communications. The larger cities and towns have automatic exchanges but most areas still depend on manual switch boards. Direct radio-telephone communication links Turkey with the principal cities of Europe. The telegraph system provides both domestic and international service with a traffic of 9 million messages in 1965. It is supplemented by short wave radio which furnishes continuous domestic and international communication. Postal service throughout the country is channelled through about 3,000 post offices. The service includes airmail between the principal cities.

Generally, public utility services are available only in the 10 main cities and in the company housing areas provided by some of the larger industrial establishments, such as the steel mills and mines. The services are state-owned and have been largely developed since World War II. In 1968, only about 25 percent of the population had access to electric power. Central water supply and distribution was a municipal responsibility but only the larger cities had adequate, safe systems (see ch. 8, Living Conditions).

Role of Government in Business

Trade in certain commodities is the monopoly of various government agencies, and the government plays an important role in the purchase and distribution of food, equipment and fuel. State economic enterprises account for about one-half of the country's manufacturing production by value. The prices of most public utilities, transportation and communication services are established or controlled by the government. All rail and most air and sea transportation services are operated by the public sector and freight rates are set by official agencies. The government sponsors the Izmir International Trade Fair which is held annually in August and September.

Although the National Protection Law of 1940, which granted the government wide price control authority, was suspended in 1960, price controls are still maintained for some goods. The price of grain products, sugar beets, tobacco, tea, and all goods produced and sold by the Monopoly Administration is set by that agency, and the Ministry of Economy and Commerce fixes maximum prices for liquid fuel oils. The Ministry of Health controls the prices of pharmaceutical raw materials, drugs and medicine.

National law governs the production of certain agricultural and industrial goods and enforces strict quality control through the Turkish Standards Institution. The General Directorate of Industrial Affairs in the Ministry of Economy and Commerce sets standards for some manufactured consumer goods such as textiles and clothing, and for building materials. Certain agricultural products, such as tobacco and fruits, are subject to inspection by the General Directorate of Standardization. Packaging and packing have traditionally posed a problem. In 1955 the Turkish Packaging Society was founded to promote cooperation in developing techniques, to improve technical knowledge of packing and packaging, and to encourage production of such materials. Cardboard boxes, glass bottles, and tin cans are produced domestically.

The Ministry of Industry controls a number of state enterprises which are quasi-monopolies and strongly influences the price of beer, salt, coffee, sugar, and some steel, paper, and chemical products. The cement industry is particularly important. Both the mills operated by State Economic Enterprises and private establishments participate in production. Since 1965 there have been no formal controls over prices charged by cement producers. However, because of volume of production, State Economic Enterprises is able to exercise price leadership for the entire industry and thus indirectly controls cement prices. Municipal governments are authorized by law to set retail prices for a variety of products such as flour, bread, meat, dairy products, and fresh fruits and vegetables.

The Ministry of Economy and Commerce is most directly concerned with private business activity. Within this agency the General Directorate of Internal Trade concerns itself with the organization and control of markets, chambers of commerce and industry, cooperatives, and associations of small merchants and craftsmen. A section of the Directorate is concerned with standards and measures. Its Foreign Trade Office enforces importexport regulations and issues permits for imports and exports. The Ministry also represents the interests of Office of Soil Products and the Meat and Fish Association in the government.

The distribution of certain commodities is either reserved to the state by law or in practice these functions have been taken over by a state agency. These include essential goods, notably cement, lignite and steel. The Coal Sales and Distribution Office of the Etibank controls the trade and distribution of coal. Some goods are rationed to provinces and their distribution is in the hands of provincial commissions. Municipal authorities administer public markets, ice plants, and slaughter houses.

Under the authority of a 1954 law municipal authorities have