Cyprus News Agency: News in English (PM), 98-05-07

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

CONTENTS

[01] New French ambassador stresses need for reunification

[02] New Argentinean ambassador presents credentials

[03] One government, one people, one President, Spokesman says

[04] CYTA to install DAMA service

[05] S-300 deployed unless agreement on demilitarisation

[06] Cyprus Stock Exchange

[07] European Investment Bank delegation in Cyprus

[08] Simitis: Turkey cannot blackmail Cyprus' EU course

[09] Russian factor "important", says Cyprus spokesman

[10] Symposium on Cyprus and the EU-Kasoulides-Madden

1420:CYPPRESS:01

[01] New French ambassador stresses need for reunification

Presenting his credentials to President Glafcos Clerides, de Vaivre pointed out Cyprus has always been a European country and reassured he would work towards consolidating bilateral relations even further.

Replying, President Clerides pointed out that the Cyprus problem remains unresolved because the Turkish side remains rigid and intransigent, but stressed his resolve to work towards a peaceful solution.

He stressed that Cyprus' European Union accession process can act as a "catalyst" in efforts to reach a solution.

"A parallel can evidently be drawn between the EU and the situation in Cyprus. The objective of the unification of Europe is an objective which can very well be compared to that which you Greek Cypriots and Turkish Cypriots have been pursuing for nearly forty years," the new French ambassador said.

Stressing the need for rapprochement, de Vaivre said "no viable solution can be reached without realising that the two communities of the island have a common destiny."

He said Cyprus "will be welcome in the EU by your attachment to its principles as regards the respect of the rule of law" and "of good negeibourliness with other countries."

Noting he studied the island's history long ago and participated in a publication on its archaeological treasures, de Vaivre said "Cyprus has always been European: she became European before us, the French, since the Greeks, who were living on your island twenty-five or thirty centuries, planted the roots of our civilisation."

In his reply, President Clerides pointed out that the Cyprus problem "still remains unresolved despite intensive efforts on the part of the UN Secretary-General, the international community and our own efforts and will to solve the problem."

He said the people of Cyprus as a whole continue to suffer the results of the 1974 Turkish invasion and occupation here, pointing out "the Turkish side remains still rigid and intransigent".

President Clerides reiterated his commitment to a peaceful reunification of the country and reaffirmed "we will certainly do everything we can to achieve a solution" based on UN resolutions and within the framework of the Secretary-General's good offices mission.

He noted that the two countries are "linked by bonds of friendship deeply rooted in history. Their past and present relations and cooperation are based on their common adherence to the eternal values of freedom, peace, justice and respect for human rights."

The President pledged to work hard for the enhancement of bilateral relations in all fields as well as cooperation, particularly in the EU.

CNA MA/GP/1998

ENDS, CYPRUS NEWS AGENCY

1430:CYPPRESS:02

[02] New Argentinean ambassador presents credentials

Presenting its credentials to President, Glafcos Clerides, Gil said "the physical distance that separates us has been no hindrance for the development of our relations".

Pointing out that Argentina and Cyprus have common interests, "beginning with the certainty of the importance of keeping a fair and peaceful international order", Gil said the people of Argentina were proud to participate with a military contingent in the UN Peace-keeping Force in Cyprus (UNFICYP).

"This is a mission that fills us, the people of Argentina, with pride and permits us to create valuable human ties with the people of Cyprus and their millennial culture", he said.

Gil also said, his President, Carlos Saul Menem, instructed him "to tighten our relations as much as possible".

Referring to a visit in the next few days, by Cyprus Foreign Minister, Ioannis Kasoulides, to Argentina, Gil said "I am sure that his mission will significantly contribute to the enhancement of our relations of friendship and cooperation."

Replying, President Clerides referred to a "traditional and long- standing friendship and cooperation", between the two countries, "based on our common adherence to the purposes and principles of the UN as well as to international law in general".

The people of Cyprus are grateful for Argentina's "long and active involvement in the efforts to solve the problem of Cyprus", Clerides said.

He referred to Argentina's participation in the UNFICYP and the fact that "two most distinguished Argentinean diplomats have served in the past as Special Representatives of the UN Secretary General for Cyprus".

The President regretted the deadlock reached in efforts for a Cyprus settlement due to "Turkish attempts to change the very basis and the bicommunal character of the negotiating process, in a flagrant violation of a host of legally binding UN Security Council Resolutions".

He stressed, however, that "in spite of our deep disappointment with the outcome of the latest initiative, we remain committed to continue our efforts to reach a peaceful solution to the Cyprus problem".

Clerides also noted that Cyprus' accession process to the European Union will proceed for the benefit and prosperity of all Cypriots.

CNA MCH/GP/1998

ENDS, CYPRUS NEWS AGENCY

1510:CYPPRESS:03

[03] One government, one people, one President, Spokesman says

He also noted a variation in the wording used by two different American officials with regard to the status of the President of the Republic of Cyprus.

"The Cyprus government recognises that there is only one people, represented by the President of the Republic Glafcos Clerides," Stylianides stressed.

He was commenting on a reference by State Department spokesman Jim Foley that "not all the people on Cyprus see themselves as represented in the one government of Cyprus that we recognise."

Earlier this week, US Presidential Emissary Richard Holbrooke, had said "no one has disputed that Glafcos Clerides does not represent or have control of the people of northern Cyprus".

Asked if he believes Foley was trying to rectify Holbrooke's statements, Stylianides said "there is a differentiation in the wording used."

The Spokesman reiterated that in line with UN Security Council decisions "talks for a Cyprus settlement are carried out by the leaders of the two communities."

Turkish Cypriot leader Rauf Denktash told Holbrooke during his three- day shuttling between the two sides over the weekend, that he will not participate in talks unless his illegal entity in the Turkish occupied part of Cyprus is recognised and Cyprus' application for European Union membership withdrawn.

The preconditions set by Denktash stalled the US emissary's efforts to restart negotiations between the two sides to reunify the island, divided since Turkish troops invaded in 1974.

CNA MA/MM/1998

ENDS, CYPRUS NEWS AGENCY

1520:CYPPRESS:04

[04] CYTA to install DAMA service

DAMA allows for communication from any point of the area covered by the satellite (Europe, Middle East, Caucasus, and North Africa) with the use of special transferable satellite stations.

The calls will be directed via satellite to Cyprus and through CYTA network to the person called.

Calls will be charged according to time duration.

The CYTA will use the DAMA service on a commercial basis outside Cyprus and the introduction of this service is expected to come into effect in the second half of 1998.

Contracts for the establishment of DAMA Station have already been signed.

The agreement for the installment of the EUTELSAT Control System in Cyprus is considered an achievement of great strategic importance for CYTA.

At the same time there will be extra economic benefits stemming from the simultaneous use of the Station for commercial purposes as well as through collecting fees paid to CYTA by EUTELSAT for the operation and service of the Satellite Control Station.

CNA DP/MCH/1998

ENDS, CYPRUS NEWS AGENCY

1640:CYPPRESS:05

[05] S-300 deployed unless agreement on demilitarisation

Responding to reports from Ankara that Turkey would not object to the deployment of the missiles in Greece instead of Cyprus, Government Spokesman, Christos Stylianides, said "our position is clear and we insist that the Cyprus issue is not a matter relating to missiles".

The Cyprus question is an issue which should be discussed under the aegis of the good offices mission of the UN Secretary General and the goal is to reach a bizonal, bicommunal federation, the Spokesman added.

"The government monitors everything that is happening on the other side and assesses the situation in order to handle the Cyprus problem," he said.

Stylianides reiterated the government's readiness to embark on a dialogue for a comprehensive settlement of the Cyprus issue.

CNA MM/MCH/1998

ENDS, CYPRUS NEWS AGENCY

1700:CYPPRESS:06

[06] Cyprus Stock Exchange

CSE All Share Index                    91,11 ( 1,20)

Sectural Indices

Banks                                 106,21 ( 1,72)
Approved Investment Companies          66,34 ( 0,87)
Insurance Companies                    66,60 ( 0,24)
Industrial Companies                   79,98 ( 0,46)
Tourist Industries                     72,01 (-0,30)
Commercial Companies                   54,48 ( 1,45)
Other Companies                        76,21 (-0,70)

Trading Volume                         2.204.701.51

CNA MCH/1998

ENDS, CYPRUS NEWS AGENCY

1700:CYPPRESS:07

[07] European Investment Bank delegation in Cyprus

The loan, which was made available under the 1997-1999 "Euro-Med Partnership" mandate, is scheduled to expand and upgrade the electricity transmission system in the Republic.

The loan agreement was signed here today by EIB Director for the Mediterranean Jean-Louis Biancarelli and EAC Chairman, Costas Constantinides. Finance Minister Christodoulos Christodoulou signed the relevant guarantee agreement on behalf of the Cyprus government.

The project will be carried out by the EAC and it forms part of a large scale capital investment programme established in 1994 to develop electricity supply in Cyprus.

Scheduled for competition by end-2002, the project will substantially increase the capacity of the high-voltage transmission grid so as to meet present and future demand. This is the EIB's second financing operation in Cyprus under the "Euro-Med Partnership".

Speaking after signing the agreement, Biancarelli said the loan "will pave the way for stronger co-operation with the EAC", adding that within the context of the pre-accession lending facilities, the EIB will support Cyprus financially.

"As you know, things have changed. Now we are in a process of pre- accession facility and this is a reason we are having talks with you to see what sort of direction, what sort of priorities you want us to be involved in", Biancarelli said.

On his part, Christodoulou said the loan, with an interest rate of around 4,5 per cent, has a repayment period of 15 years, describing its terms as favourable.

Christodoulou reassured Biancarelli of the government's determination to use the financial support from the EIB in the best possible way.

Earlier today Biancarelli met with Commerce, Industry and Tourism Minister, Nicos Rolandis.

After the meeting he stressed that EIB is "ready to participate in the pre-accession process of Cyprus".

"In that context", he added "we will provide some financing to improve the infrastructure and the environment for the small scale enterprises' investment in Cyprus".

On his part Rolandis said he discussed with Biancarelli the project for expanding the Larnaca oil refinery and expressed the hope an EIB loan for this purpose will be available.

The expansion of the refinery will improve environmental conditions in Larnaca, he added.

EIB is the EU's long-term financing institution and plays a central role in the Union's technical and developmental policies towards third countries in the Mediterranean region.

CNA KN/GG/MCH/1998

ENDS, CYPRUS NEWS AGENCY

1815:CYPPRESS:08

[08] Simitis: Turkey cannot blackmail Cyprus' EU course

"Turkey must realise that it can not blackmail the accession of Cyprus to the EU, a procedure independent from the solution of the political problem of Cyprus", the Greek Premier said.

"Decisions concerning accession procedures were taken in Luxembourg", in December 1997, Simitis pointed out, adding that at the time many asserted that talks would not start in March because of Turkey's objections.

"Still Cyprus accession talks began and they will continue", he stressed.

Accession negotiations with Cyprus started in March this year.

Realising his threats, Turkish Cypriot leader, Rauf Denktash, refused to take part in UN-led intercommunal talks aiming at a Cyprus settlement unless his puppet regime is recognised as an independent state.

Both Denktash and Ankara have repeatedly claimed that by its decision to start accession negotiations with Cyprus, the EU blew any prospects for a Cyprus settlement.

According to the conclusions of the European Council, reached in Luxembourg in December 1997, Turkey will be considered as a candidate for accession if it fulfils certain pre-conditions.

These include, political and economic reform, improvement of its human rights record, settlement of its disputes with Greece and "support for negotiations under the aegis of the UN on a political settlement in Cyprus on the basis of the relevant UN Security Council Resolutions. CNA KI/DP/MCH 1998

ENDS, CYPRUS NEWS AGENCY

1950:CYPPRESS:09

[09] Russian factor "important", says Cyprus spokesman

At the same time, he noted there is a difference between Russian and US official statements concerning a recognition demand by the illegal entity unilaterally established in 1983, in the areas occupied by Turkish troops since 1974.

Stylianides expressed satisfaction with a statement by Russian Ambassador in Nicosia, Georgi Mouradov, stressing that Russia recognises only the government of President Glafcos Clerides as the legal government of the Republic of Cyprus.

Mouradov's statement "greatly assists the struggle of the people of Cyprus" for a solution to the island's political problem, Stylianides said.

Stylianides was invited to comment on a statement by Russian Foreign Ministry Spokesman, Valery Nesterushkin, for the reinstatement of a 1997 Russian proposal, outlining its position on a comprehensive settlement of the Cyprus problem.

He said "our position is that Russia's role, as a permanent member of the UN Security Council, is important in efforts for a bizonal, bicommunal federation within the framework of a unified Europe."

The 1997 Russian proposal stresses that a solution to the Cyprus problem should be based on a bicommunal, bizonal federation to ensure the existence of an independent and territorially integral state of Cyprus with a single sovereignty, single internal legal personality and a single citizenship.

CNA MM/MCH/GP/1998

ENDS, CYPRUS NEWS AGENCY

2045:CYPPRESS:10

[10] Symposium on Cyprus and the EU-Kasoulides-Madden

Kasoulides was addressing a three-day Symposium on "Cyprus and the EU" which opened today in Nicosia and is co-organised by the Cyprus "Intercollege" and the British University of Reading.

Referring to the island's political problem, Kasoulides said the process of accession, and accession itself can work as a catalyst in order to achieve progress.

"The nervousness of the Turkish side's recent reactions proves that Cyprus' accession to the EU without a solution, will be detrimental to Turkish Cypriots", he explained.

"We will do everything in our power to achieve a mutually acceptable solution for the withdrawal of foreign troops and the reunification" of the island, Kasoulides noted.

"Our positive approach was proven once more during the recent visit to Cyprus of US Presidential Emissary, Richard Holbrooke", he pointed out, adding that "we remain committed to a peaceful solution, based on the relevant UN resolutions and the high level agreements of 1977 and 1979".

The high level agreements provide for a federal, bi-zonal, bi-communal Cyprus.

The Foreign Minister pointed out that if the necessary political exists on both sides, a solution is possible well in advance of the EU's next enlargement.

Kasoulides said President Clerides' invitation to the Turkish-Cypriot community to participate in a joint accession negotiating team still remains open.

"We regret that the offer was not accepted", he added.

The most important development in Cyprus-EU relations was the realisation by the Europeans that Cyprus "could not remain hostage of the Turkish army", a view expressed by the EU Commissioner, Hans van den Broek, Kasoulides pointed out.

Referring to Cyprus' aspirations for EU membership, he said "Cyprus has always looked to Europe", and pointed out that Cyprus is more ready than other candidate states to join the EU.

On his part, the British High Commissioner in Cyprus David Madden, addressing the Symposium on behalf of the British EU Presidency, referred to the conclusions on enlargement of the December 1997 EU Luxembourg Summit.

According to the conclusions of the Summit, official talks for Cyprus' accession to the EU started in March.

CNA GG/MCH/1998

ENDS, CYPRUS NEWS AGENCY

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