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1. Cooperation projects and operations may be financed in the following indicative areas:

(a) modernising manufacturing, improving institutional and infrastructure capacity in areas including the environment, energy and transport, excluding the development of nuclear power, especially in earthquake zones;

(b) promotion of industrial cooperation by methods including support for diversification in industry and the establishment of small and medium-sized enterprises;

(c) cooperation in telecommunications, infrastructure, rural development and social services;

(d) boosting the capacity of the Turkish economy, inter alia by measures to encourage the restructuring of the country's public sector and private initiative;

(e) cooperation in protecting health;

(f) cooperation in the field of education and training;

(g) regional and cross-border cooperation;

(h) any form of cooperation seeking to defend and promote democracy, the rule of law, human rights, respect for minorities and the protection and recognition of their cultural identity, and support for measures seeking to abolish capital punishment;

(i) any form of cooperation seeking to resolve the Kurdish problem;

(j) cooperation on humanitarian issues;

(k) measures to promote the development of social dialogue within Turkey and between Turkey and the European Union;

(l) all forms of assistance aimed at promoting the development of relations between the European Union and Turkey;

(m) promotion of cooperation between the two parties' public administrations with a view to the approximation of legislation and the training of staff, including customs officers.

2. Where appropriate, measures could be taken to underpin a structural adjustment programme on the basis of the following principles:

(a) support programmes must be tailored as far as possible to Turkey's particular circumstances and take account of economic and social conditions;

(b) support programmes must include measures to alleviate any negative impact of the structural adjustment process in social and employment terms, in particular for the most disadvantaged sectors of the population;

(c) account must be taken of Turkey's economic situation, and in particular regional economic imbalances, its level of indebtedness, debt servicing charges, balance of payments and foreign currency supply, monetary situation, per capita gross domestic product and unemployment level.