Cyprus News Agency: News in English (PM), 97-09-16

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

CONTENTS

[01] Holbrooke: security talks important step

[02] Security core issue in a Cyprus settlement

[03] Cyprus Stock Exchange

[04] Security talks bolster peace effort

1450:CYPPRESS:01

[01] Holbrooke: security talks important step

In an interview on CNN, Holbrooke called yesterday's announcement of the agreement by US Secretary of State Madeleine Albright at Larnaca International Airport, "a big step" and something which "hasn't happened in a long time".

"It doesn't mean anything is substantively decided yet, but it is a significant step towards lowering tensions," Holbrooke said.

Noting that the talks will be under UN auspices, the US Presidential Emissary said that both he and Albright will be meeting with Greek and Turkish leaders in New York in the next two weeks.

Holbrooke stressed that the US Secretary of State's "personal involvement" in the announcement as well as the planned contacts with Greek and Turkish leaders are "another indication of the aggressive engagement of the United States in solving the security problems of this region, and instability in this region is a direct threat to America's national interests". CNA/MH/MM/1997

ENDS, CYPRUS NEWS AGENCY

1530:CYPPRESS:02

[02] Security core issue in a Cyprus settlement

This was pointed out today by Executive Director of the Western Policy Centre, John Sitilides, noting at the same time "a genuine political will on the part of the US to see a solution achieved on Cyprus".

Whether a solution is achievable in the short term or the long term is a difficult question to answer, Sitilides told CNA, pointing out to the "need to establish a climate of greater confidence before there can be any assured guarantees on security".

Commenting on the agreement between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash to discuss security issues, Sitilides expressed the wish "that parties adhere to their statements", noting that in the past the Turkish occupation regime did not abide by its promises.

"We think that the security issue is paramount for the Cyprus issue to move forward in a genuine and substantive way", he added.

Sitilides pointed out to "a tremendous movement in the State Department to try and achieve some type of solution", but expressed misgivings as to how wise the policies followed are.

"We do not know that the State Department is pursuing the wisest course right now and we are working as Americans to try and deal with policy planners in Washington to move the issues of demilitarisation and EU accession forward", he said.

"As we heard from Denktash there are already pre-conditions on demilitarisation", Sitilides said.

He pointed out that US Presidential Emissary Richard Holbrooke has stated that Cyprus' accession to the EU "is only possible after a bi-zonal, bi-communal federation is at place".

That, he stressed "is in contrast to statements made by the US administration only a year ago. We believe that this is the wrong policy to pursue and it would not advance security or stability in the region".

Cyprus, he said, "should be demilitarised as quickly as possible" and her accession to the European Union should be promoted "without any preconditions whatsoever".

Sitilides, who along with Angelos Tsakopoulos, were on a brief visit to the island, was speaking after today's meeting with President of the House of Representatives, Spyros Kyprianou.

The Western Policy Centre, a California based organisation set up in 1994, aims to engage foreign policy planners on issues relating to Greece, Turkey, Cyprus and the Balkans. It publishes a bi-monthly review with in- depth analysis and comments on developments in this part of the world.

CNA MCH/MM/1997

ENDS, CYPRUS NEWS AGENCY

1550:CYPPRESS:04

[03] Cyprus Stock Exchange

CSE All Share Index                    78.70 (+0.13)

Highest: 82.46 (2/1/97)
Lowest : 73.90 (30/1/97)

Sectural Indices

Banks                                  89.86 (+0.16)
Approved Investment Companies          64.65 (-0.93)
Insurance Companies                    56.40 (+0.21)
Industrial Companies                   77.98 (-0.14)
Tourist Industries                     65.91 (+0.09)
Commercial Companies                   47.06 (+0.02)
Other Companies                        60.26 (+0.99)

Trading Volume                         CYP 1038422.252

CNA MM/1997

ENDS, CYPRUS NEWS AGENCY

1645:CYPPRESS:04

[04] Security talks bolster peace effort

Christofides noted their decision has been widely described as "a great and substantial step and as an act of wisdom and foresight".

The Government Spokesman saod US Secretary of State Madeleine Albright congratulated President Clerides and Denktash on their willingness to hold talks on security issues, under UN auspices.

Christofides expressed the government's approval for Albright's statement that the Cyprus problem constitutes one of the US government's top foreign policy priorities.

He also described the fact that the US will follow the talks closely as "immensely important".

"We see that US initiative has never been more determined, given the statements from the highest level of US diplomacy," Christofides said.

Regarding the discussions, he said their agenda is open and that no terms or conditions have been set, but did not exclude the possibility that the first meeting between President Clerides and Denktash may be held in October.

"The discussions will be in Cyprus and will be held in the presence of the UN representative here, and it seems there will be an outer circle led by the US," Christofides said.

The Government Spokesman said that each side will present at the discussions problems it believes concern security issues.

He described the US assessment of the Cyprus problem by US diplomats as "correct".

"The assessment that the atmosphere of tension and threats has been overdrawn and that the whole climate must improve is correct. This would allow for serious discussions on the core of the Cyprus problem, a very difficult and explosive problem," Christofides said.

He also noted as correct the view that the 1974 Turkish invasion of the island "left a horrible legacy and an island still divided by a wall reminiscent of the Berlin Wall".

Invited to comment on the fact that this is not the first time the US Secretary of State announced an agreement on talks regarding security issues and that hopes are vested in a dialogue in which Denktash will discuss security issues, Christofides said that the value of achievements should not be diminished.

He said that parallel to the discussions on security issues, an ongoing military dialogue between the National Guard and the Turkish forces of occupation aimed at reducing tensions along the demarcation line will continue and may be taken up by politicians.

Christofides added talks between President Clerides and Denktash on humanitarian issues will continue parallel to the security discussions, as well as Cyprus' course towards accession to the European Union which, the Government Spokesman noted, "is considered as a catalyst which will help efforts to solve the Cyprus problem".

Regarding yesterday's brief stop-over at Larnaca Airport by Albright, Christofides said "the details of the visit were arranged following an understanding reached with the Cyprus government".

He also said that no meetings between Albright and Cypriot government officials were requested.

CNA KN/MH/MM/1997

ENDS, CYPRUS NEWS AGENCY

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