Cyprus News Agency: News in English (PM), 97-02-07

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

CONTENTS

[01] Economy not affected by fictitious stories

[02] Solution must come through peaceful means

1850:CYPPRESS:09

[01] Economy not affected by fictitious stories

''Fictitious incidents, such as yesterday's alleged shoot out between the Turkish and Greek Cypriot sides, and Turkey's propaganda cannot affect Cyprus' economy,'' the Spokesman told today's briefing.

Acknowledging that the Cyprus economy is facing some problems, Cassoulides said such fictitious stories cannot be maintained for ever.

The Cypriot economy, he added, can withstand fluctuations.

''It would be wrong to send the message that we are on the verge of collapse or that our economy cannot tackle these problems,'' he said.

Commenting on the economy's heavy dependence on tourism, Cassoulides said efforts are made to change this and direct the local economy on to other sectors.

On Thursday the self-styled Turkish Cypriot regime claimed there was a shoot out near the Turkish occupied village of Louroudjina, some 20 kilometres southeast of Nicosia.

The Cyprus government has categorically denied any Greek Cypriot involvement in the alleged event, following inquiries which proved that no National Guardsman was involved in any incident.

Cassoulides said a police search around the island's hospitals and private clinics did not locate any casualty who might be connected to the alleged incident.

The UN Peacekeeping Force in Cyprus is continuing its own investigations into the matter and will continue to maintain an increased presence in the area of the alleged shooting until further notice, its spokesman told CNA today.

He would not give any details about the UN inquiries.

''The situation in the area has returned to normal,'' he added.

CNA MA/MM/1997

ENDS, CYPRUS NEWS AGENCY

2030:CYPPRESS:11

[02] Solution must come through peaceful means

Government Spokesman Yiannakis Cassoulides reiterated today that ''efforts for a solution to the Cyprus issue should be made only through peaceful means.''

His comments came as a reply to statements by the opposition that defence expenditure sends the wrong message about government intentions on the peace process and will have adverse repercussions on the local economy.

''Boosting our defence capability aims at giving us a strong deterrent to avoid war, should the other side (Turkish side) opt for military confrontation,'' Cassoulides told the press.

He also underlined that ''the National Guard's arms acquisition programme does not shift our determination to seek a peaceful settlement.''

The local economy, he said, can withstand the expenditure needed for the programme but refrained from disclosing any figures about the cost of the programme.

Replying to questions, Cassoulides said the purchase of the Russian S- 300 surface-to-air missiles will not be affected by a House decision to either increase the defence levy or maintain it at its present levels.

According to the Spokesman, the cost of purchasing weapons has doubled in the past five years.

CNA MA/MM/1997

ENDS, CYPRUS NEWS AGENCY

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