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ISTANBUL (Reuters) - Tayyip Erdogan denounced U.S. justice on Friday and suggested Turkey could rethink some bilateral agreements with Washington, after a U.S. court convicted a Turkish banker in a trial that included testimony of corruption by top Turkish officials.

In his first public comments on Wednesdays verdict, the Turkish president cast the case as American plot to undermine Turkeys government and economy - an argument likely to resonate with nationalist supporters.

If this is the U.S. understanding of justice, then the world is doomed, Erdogan told a news conference before his departure to France for an official visit.

A U.S. jury convicted an executive of Turkeys majority state-owned Halkbank (HALKB.IS) of evading Iran sanctions, at the close of the trial which has strained relations between the NATO allies. Some of the court testimony implicated senior Turkish officials, including Erdogan. Ankara has said the case was based on fabricated evidence.

Without being specific, Erdogan said the case put agreements between the two countries into jeopardy: ....The bilateral accords between us are losing their validity. I am saddened to say this, but this is how it will be from now on.

Turkeys foreign ministry on Thursday condemned the conviction as unprecedented meddling in its internal affairs. The row has unnerved investors and weighed on the lira currency, which hit a series of record lows last year.

The court case has put pressure on relations between Washington and the biggest Muslim country in NATO, already strained since a 2016 failed coup in Turkey which Erdogan blames on followers of a cleric who lives in the United States.

Only last week the United States and Turkey lifted all visa restrictions against each other, ending a months-long visa dispute that began when Washington suspended visa services at its Turkish missions after two local employees of the U.S. consulate were detained on suspicion of links to the coup.

The Halkbank executive, Mehmet Hakan Atilla, was convicted on five of six counts, including bank fraud and conspiracy to violate U.S. sanctions law. The case was based on the testimony of a wealthy Turkish-Iranian gold trader, Reza Zarrab, who cooperated with prosecutors and pleaded guilty to charges of leading a scheme to evade U.S. sanctions against Iran.

In his testimony Zarrab implicated top Turkish politicians, including Erdogan. Zarrab said Erdogan, then prime minister, had personally authorised two Turkish banks to join the scheme.

Turkey says the case was based on fabricated evidence and has accused U.S. court officials of ties to the cleric Turkey blames for the coup attempt. The bank has denied any wrongdoing and said its transactions were in line with local and international regulations.

The United States is carrying out ... a chain of plots, and these are not just legal but also economic plots, Erdogan said.

Reporting by Daren Butler and Tuvan Gumrukcu; Editing by David Dolan and Peter Graff

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Under the state of emergency imposed by Mr. Erdogan since the attempted coup, public gatherings are prohibited and freedom of expression and the media are tightly constrained. Most of those joining Ms. Akseners movement are young people chafing under the restrictions, she said.

Ms. Aksener and Mr. Erdogan both represent the center right of the political spectrum, but she opposes him on almost every aspect of his politics, from his increasingly autocratic form of government to his anti-Western diatribes that have damaged relations and scared off foreign investment.

Mr. Erdogan remains Turkeys most popular politician by far, but last years referendum showed that the country is deeply divided. Ms. Aksener says she is uniquely placed to draw support from right-wing nationalists and more liberal centrists who are disenchanted with Mr. Erdogan.

We saw in the referendum the country is split in half, she said. The Good Party is the only party that can get votes from both camps.

Still, her path ahead will be anything but easy. Although Mr. Erdogans Justice and Development Party has slipped slightly in the polls, there is little sign that Ms. Aksener is the cause, said Kemal Can, a prominent political writer.

Most of the polls show that she cannot draw the vote away from A.K.P., he said, using the partys Turkish initials. She may sway 1 or 2 percent from A.K.P., but these are already estranged voters who most probably already voted No in the referendum.

Since she occupies some of the same political space as the president, Ms. Aksener is in many ways campaigning as the anti-Erdogan.

She says she wants to re-establish freedom of expression, reverse draconian measures that have imprisoned journalists and closed down newspapers and media outlets, and restore a nonpartisan justice system and constitutional court.

She also says she wants to reverse Mr. Erdogans April referendum, which will introduce an executive-style presidency after the next elections, regardless of who wins.

We are going to return to a parliamentary system, she said. The second thing is to restore trust in the economy.

The daughter of a civil servant, Ms. Aksener grew up in a small rural village in western Turkey. Her family was among the hundreds of thousands resettled from Greece in the population exchanges between Greece and Turkey in 1923.

Despite limited education, I managed to go to university and became a lecturer, she said. She gained her doctorate in history in Istanbul and taught at several universities.

Yet Ms. Aksener said the possibility of moving up a class through education had become elusive in Turkey, where employment has become partisan, depending on whether a person is connected to the governing party. The opportunity I got 45 years ago, you cannot receive today, she said.

Education and the economy are the two things people are most concerned about on the campaign trail, she said.

Thousands of families were affected when Mr. Erdogan scrapped the national high-school entrance exam in September, ordering students instead to attend their closest neighborhood school, many of which have been transformed into religious academies.

Pupils were preparing for the exam for four years, Ms. Aksener said, and you change it overnight?

Mobility between the social classes will be diminished, she added. Children will not be able to dream about their future, and this is the saddest thing.

Although Mr. Erdogan has overseen a period of impressive economic growth, allowing many in Turkey to climb out of poverty and join the middle classes, Ms. Aksener noted that the growth has been built on a construction boom rather than industrialization.

Pointing to high youth unemployment, she said research conducted by her party had found that 18- to 25-year-olds from middle-income families felt trapped in a triangle of unhappiness, despair and fatalism. The Good Party will give hope to these people, she said.

She entered politics in 1994, joining the True Path Party of Suleyman Demirel and serving as interior minister for nine months until a military coup replaced the government in 1997. She joined the Nationalist Movement Party in 2007 and became deputy speaker of Parliament for eight years.

Although the Nationalist Movement Party has a history of extreme right-wing elements, Ms. Aksener has avoided nationalist rhetoric and describes herself as center-right. Her party manifesto is carefully worded, supporting a strong defense against terrorism, immigration and outside cultural influences.

Senior members of her new party have been more outspoken, though. Umit Ozdag, the vice chairman of the Good Party, caused an outcry in November with derogatory comments about Syrian refugees.

Ms. Aksener remains focused on attacking Mr. Erdogans policies.

She broke with the Nationalist Movement Party leader, Devlet Bahceli, over his support for Mr. Erdogans new presidential system, which she criticizes for lacking checks and balances.

She is also campaigning for womens rights, hoping to win over female voters. In the cities, women are harassed based on their gender, she said. In the villages they are beaten up or even killed.

She describes her 24 years in politics as a very rough political life. During the 2015 parliamentary election campaign, supporters of Mr. Erdogan alleged on television that a video showed her cheating on her husband, a mechanical engineer.

In the furor that followed, both Mr. Erdogan and his wife called her in sympathy, as did Prime Minister Ahmet Davutoglu and his wife although Ms. Aksener said that amid that sympathy they also encouraged her to drop out.

I noticed there was an expectation that I should end this fight, she said. I went in the opposite direction. I continued the fight and I sued those people.

Her accusers backed off somewhat, but were later acquitted.

The battle taught her a lesson, she says. I saw them up close, she said. I am not afraid of Erdogan, not as much as a grain of dust.

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Ankara is set to embrace a bold and risky foreign policy next year, Turkish President Recep Erdogan has promised in his New Year's message. He said Turkey will play an active role in the Middle East and on the Jerusalem issue.

Turkey will not be able to secure its future without resolving problems in its region, Erdogan said in his message published on December 31. This leads us to pursue a more active, bold, and if necessary, more risky foreign policy, he added, as cited by Hurriyet newspaper.

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The Turkish president said Ankara cannot hold negotiations with other actors on the international arena and play a particularly active role in the Middle East without being [active] in the field. He then listed Turkeys recent actions that allowed it to take on a more prominent role among regional powers.

To this end, we have taken significant steps over the last year by launching an operation into Idlib [in Syria] and by nixing the regional governments independence bid in Iraq, he said. In autumn, Turkey launched a campaign in the northwest Syrian province of Idlib aimed at enforcing the de-escalation zone in the area.

The proposal to establish four de-escalation zones in Syria, championed by Russia, was finalized in September at the latest round of Syria peace talks in Kazakhstan's capital, Astana, with Idlib becoming the fourth safe zone to be established under the deal. In late October, Erdogan said Turkish operations in Idlib were largely completed.

In a separate development, Turkey exerted pressure on the Kurdish regional authorities in Iraq following an independence referendum held by the Kurds in September. Erdogan threatened the Kurds with sanctions, warning, that they would not be able to find food if Ankara decided to halt the flow of trucks and oil into the region over the independence vote.

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Erdogan also touched on the Jerusalem issue, which, he said, turned out to be a test for us and our region, as well as for all Muslims and oppressed nations. Turkey has been one of the most vocal critics of US President Donald Trumps decision to recognize Jerusalem as the Israeli capital. Apart from Israel, no state has supported the step taken by the United States. To the contrary, it led to a favourable development of the recognition of Jerusalem as the capital of Palestine, the Turkish president said in his New Year's message.

On December 13, Turkey hosted an emergency summit of the Organization of the Islamic Conference (OIC) in Istanbul which strongly condemned Washingtons recognition of the Holy City as the Israeli capital. Earlier, Erdogan slammed Arab countries for what he called a weak response to the US move, chastising them of being afraid of Washington.

Erdogan also called Trumps decision a major catastrophe, while warning that Muslims may lose Mecca and other holy sites if the US decision isnt reversed. Ankara also took the issue to the UN General Assembly (UNGA) after a UN Security Council resolution on rescinding Trumps Jerusalem decision was vetoed by the US.

In the UNGA vote, 128 countries denounced the US decision in a move that was hailed by Erdogan on Twitter.

Erdogan said Turkey will face very important developments both inside and outside the country throughout 2018, and that he would work day and night to be prepared for any challenges.

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But the president has evidently calculated that the changes will pay off before nationwide municipal elections next year. Political rivals suggest that Mr. Erdogan may even be preparing to call early presidential elections in July, if it appears that his popularity is slipping.

The moves against the mayors come after the president already imprisoned and fired tens of thousands of police officers, judges, civil servants, journalists and academics in the aftermath of last years failed coup. In the largely Kurdish southeast, he replaced the mayors in 82 of 103 municipalities.

After his victory in the April referendum, he reassumed the leadership of his Justice and Development Party, or AKP, in May and then started a cull within the organization he had founded, swiftly changing 19 seats on its 50-member executive board.

More personnel changes are expected in coming months, Turkish political journalists are reporting, as the party holds a series of regional congresses ahead of a general party congress early next year.

This is in fact our peoples demand, Mr. Erdogan told a biannual party congress in October. We have to undertake this renewal process, need for change, and demand for refreshing, with our own will. If we do not do this ourselves, our people will do it at the ballot boxes.

Mr. Erdogan remains by far the most prominent and popular politician in Turkey. But his party has slipped to 43 percent from 49 percent in popular support, according to one recent opinion poll.

His officials and even family members have been tainted by growing accusations of corruption, including that ministers accepted bribes worth millions of dollars, a case now before a United States federal court.

The Erdogan-backed referendum only narrowly passed in April, an indication that he cannot take the presidential race for granted, particularly in Turkeys largest cities. Government officials say the mayors were not performing satisfactorily.

Municipal services have stalled, a presidential adviser explained recently in an interview. He spoke on condition of anonymity in accordance with standard protocol in the presidency. Thats why people are not happy. he said. Thats why President Erdogan is saying we need a shake-up.

Mr. Erdogan has been warning party members that they must win 51 percent of the vote to secure the presidential election, a harder task than winning a simple majority under the parliamentary system.

What is more natural than us strengthening our party with new names? he asked in the same October speech. The reason we are discussing this issue so much is the current difficult conditions. These hard roads cannot be walked with tired bodies.

One of the aims is to bring in new energy and fresh ideas because Turkeys electorate is becoming increasingly younger, Mehdi Eker, vice president of the AKP and member of Parliament, said in an interview. We are a young population, he said. The median age is something like 32.

One of the first things the new mayor of Ankara has done is to extend public transportation to run all night, a decision popular with the youth. Another measure has lowered the minimum age for holding public office to 18 from 25.

Yet despite Mr. Erdogans dominance of the party, the mayors did not go meekly. Several resisted for weeks, reluctant to step down.

Perhaps the chief resister was Melih Gokcek, an ebullient self-promoter who had served 23 years as mayor of Ankara, and whose position had seemed unassailable.

After several meetings with the president, he eventually yielded. Not because I am unsuccessful, not because I am tired, he told city officials and supporters at a final council meeting on Oct. 28. Only and only, I am fulfilling Recep Tayyip Erdogans request.

There was no love lost between Mr. Gokcek and Mr. Erdogan, both former mayors, and both ambitious businessmen and politicians.

Mr. Gokcek wielded enormous patronage in Ankara through his municipal construction projects and local welfare programs, and with more than four million followers on Twitter, he was a potential political rival to Mr. Erdogan.

Yet many residents and local officials were glad to see him gone, complaining of corrupt practices and ill-judged construction projects that have created unsustainable urban sprawl and even a shortage of water.

The Chamber of City Planners in Ankara fought 600 court cases against Mr. Gokcek over the years, challenging the legality of much of his municipal work, said Orhan Sarialtun, the groups president.

Political opponents criticized the manner of the mayors dismissal, but did not shed many tears.

We are objecting to his resignation because it is against democracy, said Aylin Nazliaka, a member of Parliament from Ankara who has been in dispute with the former mayor for years. However Melih Gokcek is of such a nature that no one can defend him, she said.

Putting a new broom to his administration and changing mayors who could not deliver the vote makes political sense, said Soner Cagaptay, an author and political analyst. Mr. Erdogan cannot afford to lose the big cities, especially Istanbul, his hometown and power base, Mr. Cagaptay said.

But the vetting has left a bitter taste. The mayor of Balikesir, the rich industrialist Edip Ugur, complained that his family had been threatened and resigned in tears from the party and from his job on Oct. 30.

In an interview in December at a sprawling conference center, his last project as mayor, developed on land that was once a city slum, Mr. Ugur said that Mr. Erdogan had wooed him assiduously to join his new party back in 2001. They had enjoyed success because the party had been open to discussion and new ideas, he said.

Reading from his resignation speech, Mr. Ugur lamented that the party was turning into an autocracy and was devouring its own.

Does loyalty seem to be overtaking meritocracy, he asked. This reform and innovation within the AK Party is turning into an autophagy.

Rusen Cakir, an experienced political columnist and founder of a live-streaming outlet, Medyascope TV, said the decisions may leave the party weaker, even if they concentrate more power with the president.

The greatest secret of his success has always been teamwork, Mr. Cakir said of Mr. Erdogan in a recent video blog. At every stage he shuffled his team, but he always worked with very strong teams each time.

But the president was no longer sharing power with strong players. Step by step, he purged everyone who is capable of standing on their own feet, Mr. Cakir said. He does not share power anymore, he allocates.

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ISTANBUL (Reuters) - Turkey told U.S. President Donald Trump on Thursday he could not buy its support in a United Nations vote on Jerusalem, and said the world should teach the United States a very good lesson by resisting U.S. pressure.

Trump has threatened to cut aid to countries that support a draft U.N. resolution calling for the United States to withdraw its decision to recognize Jerusalem as Israels capital.

Turkish President Tayyip Erdogan said in Ankara U.N. member states should not let their decision in Thursdays vote at the U.N. General Assembly be dictated by money.

Mr. Trump, you cannot buy Turkeys democratic will with your dollars, he said. The dollars will come back, but your will wont once its sold.

That is why your stance is important.

Trumps announcement two weeks ago that he was recognizing Jerusalem as Israels capital broke with decades of U.S. policy and international consensus that the citys status must be left to Israeli-Palestinian talks.

Last week Erdogan hosted a special meeting of the Organisation for Islamic Cooperation, which condemned Trumps decision and called on the world to respond by recognizing East Jerusalem as the capital of Palestine.

Jerusalem, revered by Jews, Christians and Muslims alike, has been at the heart of the Israeli-Palestinian conflict for decades. Israel captured Arab East Jerusalem in 1967 and later annexed it in an action not recognized internationally.

Trumps Jerusalem move led to harsh criticisms from Muslim countries and Israels closest European allies, who have also rejected the move.

A draft resolution calling for withdrawal of Trumps decision was vetoed at the United Nations Security Council by the United States on Monday. Following that vote, opponents of the U.S. decision called for the vote in the General Assembly.

I hope and expect the United States wont get the result it expects from there and the world will give a very good lesson to the United States, Erdogan said.

Reporting by Ezgi Erkoyun; Editing by Dominic Evans and Ralph Boulton

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