National and ethnic conflict have assumed new prominence in world politics. This article builds upon Robert Putnam's model of multi-level games to assess both the dynamics of conflict and conditions favoring settlement in the case of the on-going battle between the Turkish government and Kurdish separatists. In this case, interaction among issues and forces at inter-ethnic, domestic politics, and international levels affect prospects for a negotiated settlement. Particularly crucial elements have been the structure of Turkey's government and the constraints on free expression. These factors severely limit the chances to resolve the dual Prisoners' Dilemma and find a means to achieve mutual cooperation.