Cyprus Mail: News Articles in English, 03-03-12

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From: The Cyprus Mail at <http://www.cyprus-mail.com/>

Wednesday, March 12, 2003

CONTENTS

[01] Collapse of talks dashes Turkey's EU hopes

[02] Health Minister pledges full assistance in leukaemia appeal

[03] Iranian company rubbishes claims over bank guarantee for refinery project

[04] Disappointment among ordinary Greek and Turkish Cypriots

[05] Silence in the north as the news sinks in

[06] Politicians unite to blame Denktash

[07] Market plunges on talks deadlock

[08] US raps Denktash over talks collapse

[09] Passenger survey gives CY the thumbs down

[10] Deadlock in airport bank dispute

[11] Cyprus in talks with Greece over fuel storage

[01] Collapse of talks dashes Turkey's EU hopes

ALL EYES were on Turkey's EU prospects yesterday in the wake of the overnight collapse of the Cyprus talks in The Hague.

The EU yesterday reconfirmed its intention to admit a divided Cyprus next year, as the Commission warned Ankara that its obduracy on Cyprus could seriously affect its own prospects.

A statement by Enlargement Commissioner Gunter Verheugen, read by his spokesman Jean-Christophe Filori, said the Commission encouraged all parties concerned, and, in particular Turkey, to strive to achieve a settlement.

But Filori warned that if there was no settlement when the EU executive reported in December 2004 on Ankara's own bid to open membership talks, it would be very difficult to recommend starting accession negotiations with Turkey.

“If by the time of the report at the end of 2004 there is still no settlement on Cyprus, we will be facing this rather weird situation where a candidate country knocking at the door does not recognise one of our own member states,” Filori said. “It appears difficult in this situation to envisage the start of accession negotiations with Turkey,” Filori added.

Asked whether the EU would consider part of its territory under occupation by Turkey after Cyprus' accession, Filori said: “Yes we can look at things in that way. The occupation has always been considered illegal by the international community, including the EU. Nothing changes there.”

One EU diplomat told Reuters that Turkey's sabotage of the Cyprus talks would please opponents of Turkey's accession within the bloc. “There are plenty of people here (in Brussels) who will be happy to use the failure of the Cyprus talks to block Turkey's entry indefinitely,” one said.

It has also been suggested in Brussels that both Cyprus and Greece would almost certainly block the opening of accession talks with Turkey in the absence of a Cyprus settlement.

Another diplomat said the Iraqi crisis had got in the way of a successful outcome in The Hague. He suggested that the US State Department had quietly signalled to the Turkish military that Ankara would incur no punishment if it failed to cut a deal on Cyprus.

“There were mixed signals from Washington which the hardliners in Turkey could use to block a Cyprus settlement. The civilian leadership in Turkey clearly wanted a deal but under the circumstances they could not prevail,” he said.

In Nicosia, a regional political analyst told the Cyprus Mail that the debacle in The Hague had complicated everything for Turkey.

He echoed Filori's comments that Turkey would be occupying an EU member state.

“That is important but a more important element is the question of recognition,” he said. “Turkey is going to be in a position where it's going to be not recognising a member of the same European Union it wants to join, so Turkey is caught in a difficult situation and I don't think it's really realised what's just happened.”

He felt Turkey may be just playing a political trump card in holding out on Cyprus for the moment, as retaliation for being snubbed in Copenhagen.

“If Ankara had agreed to solve Cyprus now, what's to stop the EU in December 2004 from snubbing Turkey again by delaying the start of accession negotiations,” the analyst added.

“They've calculated 'let's keep the Cyprus card in hand'… but the trouble is suddenly they will turn it over and find that what they thought was an Ace is now only a Two.”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[02] Health Minister pledges full assistance in leukaemia appeal

NEW Health Minister Dina Akkelidou said yesterday she would extend every possible aid in the drive to find a bone marrow match for five-year-old Turkish Cypriot leukaemia sufferer, Jale Sakaoglu.

The minister yesterday visited the blood donation centre set up last Thursday at the Ledra Palace Hotel in Nicosia's buffer zone. Since then, over 6,200 samples from both sides of the Green Line have been collected, said Bi-communal Forum representative Marinos Ioannides.

“I am here to give the message and assure the people who are working relentlessly that I am at their disposal,” said Akkelidou.

She asked the weeklong campaign's organisers to submit a list of what they needed by the end of the day. The organisations included the Bi-communal Forum, Doctors of the World, Karaiskakio Foundation, the United Nations and the Kemal Saracoglu Foundation.

Akkelidou added the private sector would cover the requirement for more nurses to collect blood samples.

“Everyone is ready to offer their voluntary assistance. The state hospitals are already informed and will help whenever necessary and as needed,” she said.

The Minister welcomed the work that was being carried out at the Ledra Palace and noted the issue held a clear humanitarian aspect and promoted solidarity between people.

“The message of the rapprochement committees is important because it gives the political message that people, Greek Cypriots and Turkish Cypriots, can work together to handle all problems,” Akkelidou said.

During her visit to the centre, she also met with Jale's grandmother and assured her that “we are at your side to do whatever we can on our part”.

Medical Association president Antonis Vassiliou said extra doctors and nurses would be sent to help collect blood samples.

“We have come to see how we can help this altruistic effort by both communities…health has no colour, language, religion or frontiers,” he said.

All blood samples are being sent to the Karaiskakio Foundation for tissue type screening in order to determine whether there is a compatible match for little Jale. Yesterday around 1,250 samples were collected, organisers said. The campaign will continue until Friday; the Ledra Palace Hotel is open between 9am and 5pm.

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[03] Iranian company rubbishes claims over bank guarantee for refinery project

THE IRANIAN company hired to upgrade Larnaca refinery to EU standards yesterday blasted Cyprus Petroleum Refinery (CPRL) Chairman Takis Lefkaritis, rubbishing his claims that they had received a multi-million pound deposit to cover a required performance guarantee they could not get from their banks.

Lefkaritis told the Cyprus Mail last week that SAZEH was finding it difficult to get a bank guarantee from European banks because of their reluctance to deal with Iranian companies. He added the CPRL had paid SAZEH a deposit, so part of it could be used by the company to cover their performance guarantee.

But speaking to the Cyprus Mail on behalf of SAZEH yesterday, Ioannis Athienitis said not a penny had been paid to the company by the CPRL, and showed written proof that a French bank had approved their bank guarantee.

“The agreement states that by March 13, a performance guarantee has to be issued on the benefit of the CPRL,” he said.

“As soon as our people signed here in Cyprus they started their procedure to issue a performance bond. And I have documented proof from Bank Tejarat Iran to Bank Tejarat in Paris that the bank guarantee of 4,119,700 euros was sent on March 3 and was received on March 7.

“SAZEH has never received any payment from the CPRL to the present time. No money was paid to SAZEH in order to raise a bank guarantee.

“Nobody could send two million euros out of the country without first going through the Central Bank and the company that would receive the money should have an account in Cyprus. SAZEH does not have an account in Cyprus yet.

CPRL General Manager George Lambrou backed Athienitis', comments saying Lefkaritis did not have the full details on the contract.

“There is absolutely no problem with SAZEH,” he said. “They had to present a performance guarantee from a European Bank as we requested and they presented that guarantee.

“We did not pay SAZEH a penny until the performance guarantee was presented. The bank guarantee is here and we now have to obtain permission from the Central Bank to export the money. We will give five per cent of the contract, and they presented 10 per cent of the contract.”

Commerce and Industry Minister George Lillikas said last week he was prepared to review the contract because of the high cost. If the project is given the go-ahead, it should be completed 19 months from the signing of the contract.

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[04] Disappointment among ordinary Greek and Turkish Cypriots

SADNESS was the prevailing sentiment among most Greek and Turkish Cypriots on either side of the Green Line yesterday, after Monday's joint meeting in The Hague between UN Secretary-general Kofi Annan and the leaders of the two communities failed to bridge the gap between the two sides.

Following talks lasting almost 20 hours, the UN yesterday admitted defeat. Turkish Cypriot leader Rauf Denktash refused to put Annan's proposals for a solution to his people in a referendum, which would have been held on March 30, dealing a death blow to efforts to reunite the island before it signs a treaty to join the European Union on April 16.

Sitting outside his shoe shop in old Nicosia, Charalambos Mitsingas told the Cyprus Mail he was saddened but not surprised by the outcome of The Hague meeting.

“What happened was expected because it seems Denktash cannot change his stance - there is a lot against him. And if there was a solution then all this would come out in the open, so he prefers to wait a bit longer. I think when all these things against him are known he will eventually leave the north, take all his money with him, giving his health as an excuse. I think this will happen nearer 2004 when Turkey comes into the game -- until then nothing will happen. We will stay as we are.

“With Denktash's stance as it is we are better off as we are,” he added.

Eighty-year-old Karpis Kasantjian has not given up on the prospect of future negotiations for a solution yet.

“We want a solution to the Cyprus Problem, we want a workable government where Turkish and Greek Cypriots can live all together.

“I had four shops in the occupied north, I lost everything and I still want a solution 100 per cent, but I think there were still a lot of points in the Annan Plan that needed work… But it's Turkey which is the real problem.

“Things will get worse now, the longer time goes on, but I hope the two sides can come back to negotiations again.”

Christoforos Charalambous believes a solution is not far away despite the failure of both sides to agree to referendums on Monday.

“I want a solution still, personally… the Annan Plan may not have been perfect but I hope there will be a solution in future. I believe there will be a solution in the next two years, in fact.”

Androulla Yerakiotou is not so optimistic.

“I don't think we can feel too optimistic right now -- I only hope I could be, but it's hard especially given Denktash's obstinacy… Of course we want a solution, I'm a refugee from the north, but things don't look as rosy now as they did before (Monday). It really depends on the Turks I feel, not on us. I think we are all trying. But we need a solution now, the longer the situation goes on the worse things will become. But it's not looking good.”

Ioanna Antoniou cited Denktash's obstinacy as the stumbling block in the failure to reach a solution.

“Whenever Denktash becomes obstinate, nothing happens, we have seen it on many occasions… perhaps with someone more reasonable

maybe a solution could be found. Of course Mr Denktash doesn't work on his own, Turkey tells him what to do even though Turkey appears to be more willing recently.”

And will the UN now abandon its efforts to unite the island?

“I believe that now all the attention will turn to Iraq and I don't think the international community will attempt to find a solution again in the near future.”

At Nicosia's Ledra Palace, where Greek and Turkish Cypriots were giving blood in a donor drive to save a Turkish Cypriot girl, 26-year-old Turkish Cypriot Serkan Hasturer was in sombre mood.

“I believe last night we had bad news and it was not an expectation of mine, and I believe the majority of (Turkish Cypriots) were not expecting this result. There is a lot of disappointment and anger -every one who thinks of his own future must make long-term plans and if someone wants to commit suicide he has no right to put a gun to my head too…”

And is he hopeful for a solution in future?

“That's a hard question - if one side has more strength than the other then the balance will not be equal. I don't think a (future solution) will be under the same conditions…. Looking at it from the (our) side, this was the best chance for a solution we have been offered since 1974.”

Muammer Gayusoglu agreed.

“We want peace urgently. We are very disappointed with what happened on Monday. We want a referendum still.

“But we want one now, not in the future,” he added.

Sevket Oznul was quick to blame Denktash.

“All Turkish people want peace but Mr Denktash didn't want peace - that's my opinion.”

Sevda Cenkci said she was bitterly disappointed with the deadlock in The the Hague, but did not believe Denktash did not want peace.

“What can I say? We were expecting something (on Monday), but… nothing.

“I believe that both Mr Denktash and the people want peace. But you know the situation after 1974… (the two sides) have been separated for a long time, that's the (difficulty). And the politics are also a problem in my opinion… (the people) don't deserve this…The (government) don't want peace though, because they want to have everything.”

But she hasn't completely given up hope yet.

“We are still hopeful -- we are waiting for April now…”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[05] Silence in the north as the news sinks in

THERE was an air of eerie silence in the occupied areas yesterday, following the collapse of the talks on the Cyprus problem in The Hague.

Depression was in the air in the occupied part of Nicosia and there was no sign of the angry spontaneous demonstrations that followed the December European Union summit in Copenhagen, where Cyprus received an invitation to join the bloc irrespective of a solution.

One eyewitness said it was very quiet, with fewer cars on the streets than usual.

There was no air of revolt, though many believe the first reaction from many Turkish Cypriots would be to abandon the north in search of a better future abroad.

They blamed Turkish Cypriot leader Rauf Denktash for the collapse, but also felt betrayed by Turkey.

In the south, authorities have prepared contingency plans for a mass influx of Turkish Cypriots, though no security measures were visible on the Green Line.

The Turkish Cypriot opposition are determined to go ahead with their own referendum on a solution on March 30, though their request to the United Nations and the European Union to send monitors have not yet been answered.

Opposition Republican Turkish Cypriot party leader Mehmet Ali Talat laid the blame for the collapse of the talks squarely on Denktash.

“We have lost an opportunity, we have rejected the best plan to date that could have solved the Cyprus problem, and we know Denktash is responsible for this,” Talat said.

He said the opposition would push for early elections, anticipating that support for Denktash in 'parliament' had dwindled.

Talat said the 'government' controlled around 35 seats in the 50-seat 'parliament' but early elections could be achieved.

“The Greek Cypriots have won the game; (now) they could easily join the EU while the Turkish Cypriots would have to wait for political change,” Talat said.

But his party does not believe that everything is over, even after ruling AK party leader and soon-to-be prime minister Tayyip Erdogan's apparent about turn on the Cyprus problem.

Erdogan, who appeared more conciliatory when he first came to power, has in the past few days adopted a more hard line stance.

Yesterday, Erdogan predicted the recognition of the breakaway regime as a “founding state having a sovereign and equal political status”.

But the opposition in the north believe Erdogan was playing the system, wanting the people to realise for themselves the potential consequences that the Cyprus issue might have on Turkey, especially after Cyprus becomes a full EU member, which is now seems inevitable after the UN blamed the Turkish side for the collapse of talks.

The EU has already warned Turkey that it would be difficult to consider its membership if Cyprus remains divided, as candidate Turkey would be in military occupation of an existing member state.

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[06] Politicians unite to blame Denktash

THERE was muffled disappointment over the impasse at The Hague, as the political community put the blame squarely on Turkish intransigence.

Despite UN Secretary-General Kofi Annan's statement that a similar opportunity would not present itself again “any time soon,” party leaders on the island insisted there was still hope for a settlement; conventional wisdom yesterday said that Cyprus' pending accession to the EU would provide new momentum to peace efforts.

Greek Cypriot politicians were in complete agreement over who was responsible for derailing the talks in The Hague. Communist AKEL boss Demetris Christofias said Rauf Denktash alone was to blame for the impasse, for his insistence on two separate sovereign states. “Unfortunately, once again Denktash has been fully backed by Ankara, which seems to be hanging on to its expansionist policy vis-à-vis Cyprus,” read an announcement by Christofias yesterday.

For his part, former Foreign Minister Yiannakis Cassoulides predicted that Cyprus' upcoming accession to the EU would trigger a new round of intensified diplomatic activity following failure of The Hague talks. According to Cassoulides, Cyprus should work with the UN Security Council to encourage the Secretary-general to continue his efforts.

“Clearly, it was Turkey's choice that Cyprus sign the accession treaty without a settlement to the political problem,” said Cassoulides.

The former minister went on to add that the Turkish Cypriot community needed support now more than ever, advising that a financial aid package be made available.

DIKO's Andreas Angelides agreed that from now on the onus would be on Turkey. “Look at it this way; once we get into the European Union, Turkey will be the only country that maintains occupation forces in an EU-member state.”

Socialist KISOS honorary chairman Vassos Lyssarides -- no champion of the Anan plan -- said the impasse in The Hague would not necessarily have negative consequences. In Lyssarides' view, the deadlines of the UN plan were too tight for an issue as complex as the Cyprus problem.

“A nation's fate cannot be decided over the space of a few weekends,” he remarked.

Lyssarides reiterated his call for the drawing up of a “comprehensive national strategy” making maximum use of Cyprus' EU prospects. The veteran politician went on to criticise the UN's Secretary-general, saying, “unfortunately it seems Kofi Annan represented the interests of major powers and not of the entire international community.”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[07] Market plunges on talks deadlock

STOCKS ended 3.62 per cent down yesterday following the collapse of last- ditch UN efforts to reunify the island on Monday in The Hague.

“What happened in The Hague took an already uncertain market and tipped it over the edge,” said one Nicosia analyst. “It's added to the general bleakness”.

Turkish Cypriots on Monday refused to sign a commitment promising to take a UN reunification plan to referendum.

The all-share index hit a new low of 82.95 points while the blue chips FTSE/CySE index fell 6.11 per cent to 313 points. The day's volume stood at £875,940.

As hopes for a political settlement finally fizzled out yesterday, investors began cashing in their blue chips starting with bank and insurance stocks. The banking sector, still licking its wounds from recent disappointing annual results, plummeted 6.23 per cent, closely followed by insurance, which shed 6.76 per cent.

Bank of Cyprus ended 0.09 poorer at £1.18 while Laiki closed £0.07 down at £1.08. Hellenic managed to remain relatively stable with a loss of only £0.04 to close at £0.64.

According to the analyst, there were two factors affecting the Cyprus market: EU accession and the political problem. “The solution of the Cyprus problem was the most significant factor and now that we don't have that any more there is a gap,” he said.

This gap, he added, was compounded by the uncertainty of what would happen next. 'There is an unknown factor as regards the Turkish Cypriots,” he said. “Will they come over here looking for jobs and passports and a better life?”

But broker Stavros Agrotis said that would not necessarily be a bad thing for the economy.

“I think that given the present psychology of the Cypriot people and I include Greek Cypriots and Turkish Cypriots, I think such a development would be something very positive for the island as a whole,” he said, adding it would not be as much of a burden to the state as total reunification would have been, at least in the short term.

He said that now the Cyprus problem was likely to go through a period of stagnation for the foreseeable future, Cypriots might start to focus on the benefits of upcoming EU accession instead of the political problem.

“We have not seen a positive impact on the economy from the move of Cyprus to Europe. We have not seen it because there were other parameters on the horizon like the solution to the Cyprus problem, which has not allowed us to feel more optimistic about Cyprus' entry,” he said.

“Now that we will have possibly a period of no developments or stagnation of the Cyprus problem, we might be able to start thinking of the positive impact of the European entry.”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[08] US raps Denktash over talks collapse

THE UNITED States appeared to blame Turkish Cypriot leader Raul Denktash yesterday for the collapse in The Hague of the Cyprus peace talks.

"We find it very regrettable that Mr Denktash has denied Turkish Cypriots the opportunity to determine their own future and to (vote) on such a fundamental issue," US State Department spokesman Richard Boucher said in Washington without voicing any similar criticism of President Tassos Papadopoulos.

"We are deeply disappointed that the (UN) Secretary-general's discussions with the two leaders in The Hague did not result in an agreement to put, as planned, a referendum (to) both communities," Boucher said at his daily briefing.

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[09] Passenger survey gives CY the thumbs down

CYPRUS Airways (CY) has been placed second from bottom on a list of 'third division' airlines, three places behind the breakaway regime's Cyprus Turkish Airlines.

The survey was carried out by Britain's Holiday Which? Magazine, and focused on the percentage of passengers who would recommend specific airlines to a friend.

Only 30 per cent of CY passengers surveyed by the magazine said they would recommend it to a friend, compared to 85 per cent for the winning airline Palmair and 32 per cent for Cyprus Turkish Airlines. Bottom of the list was JMC, a British charter airline.

On average, fewer than 20 per cent would definitely recommend charter airlines to a friend, compared with 40 per cent who recommended scheduled carriers and nearly 50 per cent who did so for no-frills airline.

The survey covers 52 airlines from around the world, divided into five divisions based on the percentage of passengers who would recommend them to a friend.

The first division has three airlines, Palmair, followed by the highly- regarded Singapore Airlines with 80 per cent and Emirates with 77 per cent.

In division two, there are 17 airlines with percentages ranging from 61 per cent approval down to 45 per cent. These include the no-frills EasyJet, GO, Buzz and Virgin Atlantic but also Swissair, Air Malta and Sri Lankan Airlines.

Third division airlines have an approval rating from 41 per cent for Turkish Airlines down to Austrian Airlines with 29 per cent. In this category, CY is placed just higher than Austrian but below, not only Cyprus Turkish Airlines but Kenya Airlines with 33 per cent and British Airways with 36 per cent. Surprisingly German airline Lufthansa has also been placed in this category, fourth from the bottom with a 31 per cent approval.

The last two divisions, with approval ratings from 27 per cent for Air China to eight per cent for JMC, also include Greece's Olympic Airways, Egyptair, Air France, Alitalia and Air2000, all around the 20-24 per cent mark.

CY spokesman Tassos Angelis told the Cyprus Mail the survey did not bother the airline because it was not representative and did not count within the airline industry, which has its own specialised ratings system carried out by IATA, the International Air Transport Association.

He praised both Lufthansa and Austrian as very good airlines and dismissed several in higher categories as well-known flawed operations.

“According to the last two IATA official surveys the rating of Cyprus Airways is among the top in Europe,” he said. “These people come and do special checks.”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[10] Deadlock in airport bank dispute

THE strike by bank employees at Larnaca and Paphos airports continued yesterday, with employees refusing to work past normal opening hours.

The overtime ban was announced last Friday by bank employees' union ETYK, after government-brokered negotiations regarding the renewal of a collective agreement between employers and employees collapsed.

ETYK's Organisational Secretary Stelios Stylianou said yesterday that airport bank employees would continue to adhere to the overtime ban.

“It is not a strike, bank employees will simply stick to the normal bank opening hours, from 7.30am to 2.30pm.

“We want and ask for our rights to be upheld. We asked for a significant increase in wages, but there has been no break in the deadlock.”

A banking source said the Bank Employers' Association would not concede defeat.

“The strike is continuing. We have told shift workers not to bother turning up - we are not going to pay them unless they are going to work their shift.”

Asked what steps the Employers' Association was planning to take in response to the strike, the source said no measures had been decided yet.

“We will await further developments.”

Copyright Cyprus Mail 2003

Wednesday, March 12, 2003

[11] Cyprus in talks with Greece over fuel storage

INDUSTRY Minister George Lillikas said yesterday the government was considering the construction of a tank farm in Greece to store the island's emergency fuel until an energy centre was completed by 2009.

Speaking to the Cyprus News Agency from Berlin, Lillikas said the issue was being discussed with the Greek government and that a deal was expected within a few weeks' time. He said the issue would also be brought before the Cabinet.

The tank farm in Greece would hold the island's emergency fuel supply until the construction of an energy centre at Vassiliko in the Larnaca district, to meet EU regulations, which call for a minimum of 90-day fuel storage facilities. The cost of the tank farm is estimated to amount to $300 million.

“I have discussed the issue with Greek Development Minister Akis Tsohatzopoulos and it should be finalised with the signing of agreements within a few weeks,” Lillikas said.

Asked whether the construction of the tank farm would solve the problem of storage on the island, Lillikas said there was no time to have it solved.

“We have to be in a position to satisfy EU terms by May 1, 2004,” he said.

“Creating fuel storage facilities in Cyprus causes practical problems because the designated areas for the construction of such facilities have to be released from the existing facilities, and based on the procedure of putting out tenders, I'm afraid we don't have much time to be ready,” he added.

An EU directive allows for the storage of part of the island's fuel reserves abroad, which leads to speculation that once the energy centre at Vassiliko is completed the tank farms in Greece will continue to hold part of Cyprus' fuel.

Copyright Cyprus Mail 2003

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