Cyprus PIO: News Update in English, 96-12-17

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From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>

News Update

17/12/96

CONTENTS

• [01] Rifkind puts forward ten elements for Cyprus solution
• [02] Cassoulides: "Government willing for direct negotiations, provided common ground is found"
• [03] EU-Cyprus talks on economic matters
• [04] FAO Director-General ends official visit to Cyprus
• [05] Cyprus offered as offshore basis to Hong Kong businessmen

[01] Rifkind puts forward ten elements for Cyprus solution

In a press conference at the end of his two-day visit to the island, Rifkind outlined the ten elements as follows:

"( i ) the aim should be a comprehensive settlement covering all aspects of the Cyprus problem which will be based on a bizonal, bi-communal federation, in conformity with the High Level agreements and Security Council resolutions.

( ii ) the federation and its constitution will reflect the principle of political equality of the two communities as defined by the UN Secretary- General.

( iii ) the federation will have a single international personality. Its existence and powers will derive from separate referenda in the two communities.

( iv ) there will be no right of partition or secession, nor will there be domination of the federation by either side.

( v ) the security of each of the two communities and of the settlement as a whole will be achieved by means of international guarantees and by such measures of international collective security as may be agreed by the parties.

( vi ) the boundary of the two federated zones will not conform to the present cease-fire line. The adjustment should contribute to a solution of the problem of refugees.

( vii ) before the end of the first half of 1997, there should be an open- ended session of face-to-face negotiations under the aegis of the UN aimed at securing a comprehensive settlement to the Cyprus problem. The further preparation of these face-to-face negotiations by an intensified process will start early in 1997.

( viii ) the success of these negotiations will depend on the creation of genuine mutual confidence between the two sides. It will therefore be important for both sides to encourage steps designed to achieve that and to avoid any such actions which will increase tension over the coming months. In particular they will work to ensure the success of UN efforts on unmanning, unloading and rules of military conduct.

( ix ) EU membership should be of benefit to all the people of the island and the terms of accession will need to take account of the basic interests of each of the two communities.

( x ) the negotiation of the terms of accession of Cyprus to the EU will, if a political settlement can be reached in 1997, be conducted on behalf of the bizonal, bicommunal federation, taking account of the EU's agreement to start such negotiations six months after the conclusion of its Intergovernmental Conference."

Mr Rifkind said that 1997 provides a genuine opportunity for progress, "not least because of the prospect of the opening of accession negotiations with the EU''.

He stressed, however, that both Cypriot communities will need to make compromises if solutions to the issues between them are to be found.

"I do not underestimate the task facing us all. But I am determined Britain will do its utmost to assist the UN and the two communities in the search for a comprehensive settlement'', he said.

''The task that lies ahead, for the leaders of the two communities and for the friends of Cyprus, among which Britain counts itself, is to turn these elements into the provisions of a detailed settlement'', he concluded expressing the hope that ''both leaders will work whole-heartedly and energetically for a settlement in 1997''.

During his stay on the island Mr Rifkind had talks with Cyprus President Glafcos Clerides, Foreign Minister Alecos Michaelides and Turkish Cypriot leader Rauf Denktash.

In statements after a working breakfast with President Clerides, Mr Rifkind said he was ''encouraged'' to hear the extent to which the President wishes to see real progress in 1997. He said he ''sensed a willingness to address the outstanding problems with the imagination and statesmanship that is a necessary ingredient for progress,''

''I think there is a real scope for progress but one must acknowledge it will not happen overnight but 1997 ought to be the year that perhaps an important breakthrough is made,'' Rifkind said.

Rifkind also said the question of security has to be a ''component'' in any solution of the protracted Cyprus question, saying that the prospect for political progress cannot be assisted if in the meantime there was further militarisation on the island.

''That would be a big step in the wrong direction, a point that has to be understood by all concerned,'' he said and remarked on the ''very large military presence in the north but also the very strong military capability in the south.''

Rifkind said the amount of military hardware and military personnel on an island the size of Cyprus is ''absurdly and dangerously high'' because that degree of military presence entails the risk of using the military hardware.

Asked if he urged President Clerides to slow down plans to buy more arms, Rifkind replied ''you can assume that these are points that are relevant to all my discussions and we attach a very great importance to.''

Invited to outline his position on President Clerides' proposal for Cyprus' complete demilitarisation, the Foreign Secretary said anything that may contribute towards demilitarisation ''would be hugely beneficial but one cannot go from the present situation to zero.''

Foreign Minister Alecos Michaelides, speaking after the working breakfast, said the talks had focused on security concerns but had also dealt with British involvement in efforts to settle the Cyprus question.

The Cypriot Minister said during the talks there had been no attempt to impose any position on the government but ''Britain's substantive interest was outlined.'' He said this interest focused on the next moves in anticipation of intensive negotiations.

Michaelides said discussions covered matters relating to the procedure that has to be followed. "We focused our attention on the solution of the Cyprus question, beginning with the issue of security with particular reference to the effectiveness of an international force on the island.''

He also said that President Clerides had raised the issue of missing persons and urged Britain to use its influence to contribute towards the resolution of this humanitarian issue, saying that the appointment of a third member to a UN-sponsored committee on missing persons would be a first step to enable movement in the issue.

Mr Michaelides said he expected the next move on Cyprus to occur in March, as "one cannot expect any substantive US involvement in Cyprus before US President Bill Clinton is sworn in for his second term in office". He said America was the main country promoting efforts and added that Britain agrees it would be better for all those who wish to contribute to a Cyprus solution to act in concert and proceed at a time that suits everybody.

[02] Cassoulides: "Government willing for direct negotiations, provided common ground is found"

The above statement was made today (17.12.96) by Government Spokesman Mr Cassoulides when asked to comment on British Foreign Minister's statement at a Cpress conference in Nicosia yesterday.

Mr Cassoulides stated that Mr Rifkind's statement was not a proposal but Britain's views on the Cyprus issue. He refused to comment on the content of the 10-points included in Mr Rifkind's statement. Instead he outlined the Government's position on each of the points stressing that the unanimous decisions of the National Council of 1989 are still valid.

[03] EU-Cyprus talks on economic matters

The Cypriot delegation will have meetings with Irish Finance Minister, Ruairi Quinn, whose country holds the current EU presidency, and EU Commissioner on Economic and Financial affairs and Monetary matters, Yves- Thibault De Silguy.

[04] FAO Director-General ends official visit to Cyprus

During his visit Diouf held talks at the Ministry and defined new areas of co-operation. He also visited various projects such as the Kouris Dam, the Forestry College, the Agricultural Research Institute and met with marketing boards for agricultural produce.

[05] Cyprus offered as offshore basis to Hong Kong businessmen

The Chairman of the Cyprus Ports Authority, a representative of the Ministry of Finance, Members of the Cyprus Bar Association and the Institute of Certified Public Accountants, as well as representatives of Russian offshore banking units and enterprises operating from within Cyprus, joined the Central Bank's delegation.

While in Hong Kong, the delegation's members had also meetings with representatives of a number of financial institutions, which have already established an offshore presence in Cyprus as well as companies whose applications are currently being dealt by the Central Bank of Cyprus.

Hong Kong media covered extensively the delegation's activities and explained the advantages which Cyprus can offer to Hong Kong companies which trade with China by using the island's treaty for the avoidance of double taxation with China.

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

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