Cyprus News Agency: News in English (PM), 99-06-25

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] Cyprus Airways - Strike - Pilots

[02] Spokesman - Cyprus - Annan

[03] Cyprus - Russia - Avoidance of double taxation agreement

[04] Cook - Annan - Meeting

1610:CYPPRESS:01

[01] Cyprus Airways - Strike - Pilots

However, a spokesman for the Pancyprian Airline Pilots Union (PALPU), George Charalambous told CNA all possibilities were open, including further strike action.

Cyprus Airways spokesman, Tasos Angeli said the management contingency plan devised by Cyprus Airways was implemented smoothly with the effort to cause minimal disruption to passengers.

A total of 11 flights were affected with 4.500 passengers but the company leased aircraft from abroad and used crew and pilots from other Cyprus Airways unions for its contingency plan.

The company is suffering damage estimated at 100 thousand Cyprus Pounds per day of strike.

On Tuesday the pilots carried out a 24-hour strike grounding a further 11 flights and caused delays to some 3.000 passengers.

Charalambous said the pilots' union will meet today to examine developments, "not excluding the possibility to announce a new strike."

"We do not rule out anything", he said, adding however that efforts will be made to avoid a new strike.

Asked by CNA if there were any developments regarding dialogue between the two sides Charalambous cited the government's effort through the ministers of Communications and Finance, noting however that no specific negotiations are being held.

On his part, the Cyprus Airways spokesman said the pilots did not approach the company. "No mediation has been made", he said.

Angeli urged the pilots to "lift their strike action and come forward to the negotiating table because a solution can only be found through dialogue with the five interested parties", that is Cyprus Airways, Eurocypria (the charter subsidiary of Cyprus Airways) and the pilots union PALPU, CYNIKA and Eurocypria SEK.

"We must make sure that there will be no further threats to disrupt the company's operations throughout summer", he added.

Referring to the cabinet decision yesterday which endorsed a proposal by the Communications Minister to liberalise air transport until the strike issue is resolved, Angeli said the measure was not necessary since the company had implemented its contingency plan.

However he said if the measure becomes permanent, "it will cause additional problems to Cyprus Airways". The company, he added, must be given time to reform and adjust to the new conditions of competition in order to survive," he added.

CNA GG/EC/MCH/1999

ENDS, CYPRUS NEWS AGENCY

1820:CYPPRESS:02

[02] Spokesman - Cyprus - Annan

Government Spokesman Costas Serezis said Friday, Foreign Minister Ioannis Kasoulides yesterday met the ambassadors of the five permanent members of the UN Security Council in Nicosia.

"The government is making moves towards all directions", Serezis said, pointing out that similar moves have been made in the capitals of the five permanent members of the Security Council and at the UN headquarters in New York.

In his report on his good offices mission in Cyprus earlier this week, Kofi Annan says "the Turkish Cypriot contention is that other aspects of their situation place them at a disadvantage and undermine the commitment to political equality."

Turkish Cypriot leader Rauf Dentkash demands international recognition of his self-styled regime in the Turkish occupied north of Cyprus, which no country barring Turkey recognises.

Annan also said he is ready to invite the two leaders in Cyprus to "enter into a process of comprehensive negotiations without preconditions and in a spirit of compromise and cooperation."

Replying to questions Serezis also said there are no indications that the UN Secretary-General will not chair the Cyprus peace talks which he is expected call for autumn 1999.

CNA GG/EC/MCH/1999

ENDS, CYPRUS NEWS AGENCY

2010:CYPPRESS:03

[03] Cyprus - Russia - Avoidance of double taxation agreement

Expressing the government's "full satisfaction", Finance Minister, Takis Klerides told reporters here Friday that it is an "important" agreement and comes into effect immediately.

He said Cypriot businessmen in Russia, foreign investors who have companies in Cyprus and invest in Russia, as well as Russian business people who invest in Cyprus will benefit from the agreement.

The agreement provides for a review of the taxation of profits on dividends which will be calculated in accordance with the 1992 agreements of the Russian Federation with European countries and the US.

It also provides for no taxation for profits made from services or profits from interests.

Klerides said the Russian Duma had asked for more information from Cyprus regarding the presence of Russian companies in Cyprus and other investments, "because it seems that some enemies of Cyprus were giving false information to the Duma."

He explained that Cypriot officials both from Cyprus and in Moscow at the country's embassy there "were frequently providing the necessary information and details."

An official announcement said here Friday that the agreement was ratified with a 258 votes in favour and four abstentions.

Left wing AKEL party General Secretary, Demetris Christofias, earlier today described the ratification of the agreement as a "positive development" for the Cyprus Republic.

He said that following AKEL initiatives the Russian Communist Party undertook to promote the ratification of the agreement.

CNA FZ/EC/MCH/1999

ENDS, CYPRUS NEWS AGENCY

2030:CYPPRESS:04

[04] Cook - Annan - Meeting

He was speaking in the British capital after meeting Foreign Secretary, Robin Cook.

Invited to comment on the reaction of the Turkish and Turkish Cypriot sides to his report published on Tuesday, Annan said "the Cyprus issue is a complex one and a long standing issue", adding that "we are at the beginning yet of this new effort that we are trying to bring the parties together."

He expressed the hope that the parties will come to the negotiating table and "hopefully stay at the table until we find a solution this time round."

In his report on his good offices mission in Cyprus published earlier this week, Annan said he is ready to invite the two leaders in Cyprus to "enter into a process of comprehensive negotiations without preconditions and in a spirit of compromise and cooperation."

Asked whether the statement of the seven most industrialised countries plus Russia (G8) in their final communique urging Annan to invite the two leaders in Cyprus to enter talks without preconditions, implies talks will move from the bicommunal bizonal model, Annan replied:

"I think that in the communication it was said very clearly that we should try and have everything on the table. Come to the table without preconditions and stick with the discussions until we find a solution."

He added the leaders should come to the talks with "an open mind and be bold and creative in the search for a solution, not be tied down by history or some other previous arrangements..."

Turkish Cypriot leader Rauf Dentkash demands international recognition of his self-styled regime in the Turkish occupied north of Cyprus, which no country barring Turkey recognises.

On his part Foreign Secretary Cook said the G8 decision at the weekend "put new impetus into the work of the UN to find a solution to the division of Cyprus."

He said he hoped "that both sides will respond to the call by the G8 to take part in talks without preconditions to at last find a way forward to restore a single united island in which the people of Cyprus can move and live and work peacefully."

Cook remarked Britain "has strong historic ties with Cyprus" and it "argued strongly for the text of the G8 and for this new initiative", assuring his country "will do everything we can to make it a success".

He further said Britain will provide its "expertise and the people who have been working" on the Cyprus problem in the Foreign Office at the disposal of the Secretary-General for advice.

CNA KT/EC/MCH/1999

ENDS, CYPRUS NEWS AGENCY

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