The explosive Kurdish situation in the southeast is starting to unsettle the industrialized western regions of the country. Already relentless terrorist attacks by Kurdish rebels have forced Prime Minister Suleyman Demirel to cede much authority to the military. This has led to repression, including the devastation of Sirnak, a city of 20,000, and the killing of 200 militants and civilians in Semdinli, another southeastern town. It is feared that the militants will retaliate by attacking businesses in the Istanbul and Izmir areas - including those owned by Western companies and frequented by tourists. The crackdown is also bound to hurt Turkey's image abroad, including its efforts to join the European Community.

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