High-ranking military arrests stir fresh Turkey concern

ISTANBUL, (Reuters) – Two retired generals were  charged yesterday over a plot to unseat the government, raising  the stakes in a potential stand-off between the ruling party and  armed forces that has hit Turkish markets.

The two were the most senior military figures so far to be  charged over an alleged 2003 plot. Hours earlier, police had  conducted a second wave of military detentions, widening an  investigation that has seen more than 30 officers arrested and  prompted an emergency summit among Turkey’s leaders.

Turkish state-run news agency Anatolian said retired general  Cetin Dogan, former head of Turkey’s First Army, and lieutenant-  general Engin Alan, a former special forces commander, had been  formally arrested after appearing at an Istanbul court.

Dogan had occupied a position traditionally seen as a step  towards becoming head of the Turkish Armed Forces. Alan led a  successful operation to bring captured Kurdish separatist leader  Abdullah Ocalan back to Turkey, according to Turkish media.

Turkish markets, weakened by five days of tension since the  first wave of detentions on Monday, had begun to recover on  Friday on hopes that the likelihood of a confrontation between  the government, in power since 2002, and the secularist military  was receding with the release of three other retired generals.

However, reports police had detained 17 more serving  military officers and one retired officer in an operation  stretching across Turkey, sparked renewed selling, and fresh  concern over a possible standoff.

“The second wave of arrests will have already raised the  tensions,” said Istanbul-based analyst Gareth Jenkins, ahead of  news of the retired generals’ arrest.

Prime Minister Tayyip Erdogan accused the media of fanning  alarm among investors, who were unnerved by the detention on  Monday of some 50 officers suspected of participating in the  alleged plot.

“I am talking to the media bosses,” Erdogan told an AK Party  function in a televised speech. “No one has the right to turn a  country’s economy on its head. We won’t allow it, because it’s  clear the state to which the economy has come.”

Erdogan’s party, which denies accusations it has a secret  Islamist agendaa, is banking on an economic recovery after last  year’s deep recession to win over voters ahead of an election  due early next year.