Cyprus News Agency: News in English (PM), 98-07-14

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

CONTENTS

[01] Cyprus Stock Exchange

[02] Clerides ends Moscow visit

[03] President Clerides - Moscow visit

1430:CYPPRESS:01

[01] Cyprus Stock Exchange

   CSE General Index                          84.59 (-0.94)

   Traded Value            CYP   1,016,723

   Sectural Indices

   Banks                   CYP   464,901      98.91 (-0.74)
   Approved Investment
   Companies               CYP     7,489      58.83 (-0.47)
   Insurance Companies     CYP    51,117      59.65 (-0.93)
   Manufacturing Companies CYP   101,500      78.15 (-1.19)
   Tourism Companies       CYP   160,754      69.95 (-1.19)
   Trading Companies       CYP    64,921      42.64 (-3,51)
   Other Companies         CYP    67,329      71.60 (-0.97)

CNA MA/1998

ENDS, CYPRUS NEWS AGENCY

1430:CYPPRESS:02

[02] Clerides ends Moscow visit

Moscow, Jul 14 (CNA) -- President Glafcos Clerides today expressed full satisfaction with the talks he had here with his Russian counterpart Boris Yeltsin and Foreign Minister Yevgeny Primakov.

Speaking at a press conference at the end of his four-day visit to Moscow, President Clerides reiterated his government's positions for a Cyprus solution and made special reference to his proposal for the island's demilitarisation.

He said the Russian-made S-300 air defence system would not be delivered by August, noting that the Cyprus Republic would fulfill its financial obligations irrespective of obtaining or not these anti-aircraft missiles, in case preconditions set out by the government for their non- importation were met.

The President referred to the negative and intransigent Turkish stance in efforts to solve the long-standing Cyprus problem, noting that Turkey had rejected both his proposal for demilitarisation and a proposal for an international conference on Cyprus.

President Clerides praised the "very close relations" between Russia and Cyprus and referred to the desire of the two governments to further enhance them.

Clerides said during his meetings with the Russian leadership "there was full understanding" and added: "I'm leaving fully satisfied with the talks I had with Mr Yeltsin and Mr Primakov."

"I reiterated to the Russian President our positions and insistence on a peaceful Cyprus solution, using the UN Secretary-General's good offices mission," he said.

He added he had underlined the need for the withdrawal of "all foreign troops and the deployment of an international force, under the UN, that would monitor the withdrawal of foreign troops" from the island.

The Cypriot President said "issues regarding the continuation of cooperation on Cyprus' armaments were also discussed," expressing the desire to buy "certain types of arms from Russia, having already bought various types of armoured vehicles."

Clerides said he had briefed Yeltsin and Primakov on Turkish intransigent positions on the Cyprus problem.

"The Turkish side does not show the necessary will for a solution, demands recognition of the pseudostate, the fixing of borders between the two sides, exchange of properties and a substantial presence of Turkish troops in the north," he explained.

Noting that all these demands are contrary to UN resolutions and rejected by the international community, President Clerides said "we came to the conclusion the pseudostate will in no way be recognised."

Asked whether the postponement for the delivery of the missile system was discussed, he said: "The S-300s would not reach Cyprus in August. A part of the system was scheduled to be obtained in August, but Cyprus decided that the system should be delivered as a whole," and the decision was conveyed to Russia.

President Clerides refrained, however, from revealing the delivery date.

To a question if there is any chance to cancel the deployment of the anti-aircraft system, he said the Cyprus Republic's basic objective for a Cyprus settlement would be a demilitarisation agreement.

"We proposed to the Turkish side the immediate start of talks on demilitarisation, and if an agreement was reached, a gradual reduction of armed forces and armaments from both sides would begin, followed by a timetable for the withdrawal of foreign troops," he explained.

He said "if this point was reached before the date of the S-300's arrival, we would not obtain the missiles, but we would pay the manufacturers, as it would be irrational to import arms after reaching a reduction of armaments agreement."

President Clerides reiterated the missiles deployment could be postponed if considerable progress towards a Cyprus solution was reached, providing for an agreement on demilitarisation.

He said in his letter to the UN chief he had proposed that money spent on armaments could be spent on development projects for the Turkish Cypriots, in a bid to increase their per capita income, but this was also rejected by the Turkish side.

Asked whether a proposal to convene an international conference on Cyprus was abandoned, Clerides said although the Greek Cypriot side had not rejected it, the Turkish side did not accept it.

To a question whether the Cyprus government takes into consideration US proposals aiming to help UN efforts for a Cyprus solution, such as a no-fly zone over the island, he said all US proposals were looked into.

He noted that the US had both verbally and in writing assured it does not question the Cyprus Republic's right to decide on the kind of arms required for its self-defence.

"What they warned about is that a continued arms race would contribute to an increased tension between the two sides," he said.

Referring to the issue of a moratorium on overflights of Greek and Turkish warplanes in Cyprus, Clerides said it was not "satisfactory", pointing out that Turkey continuously violates UN resolutions without bearing any consequences.

President Clerides, who went to Russia last Saturday, returns to Cyprus later today.

CNA MM/AP/GP/1998

ENDS, CYPRUS NEWS AGENCY

2035:CYPPRESS:03

[03] President Clerides - Moscow visit

Speaking on his return from Russia, where he paid a four-day visit at the invitation of Moscow Mayor, Yury Luzhkov, President Clerides reiterated his "full satisfaction" with his meetings.

During his stay, he met Russian President Boris Yeltsin and Foreign Minister Yevgeny Primakov, with whom he discussed the latest developments on the Cyprus issue.

"We reconfirmed our common positions on the settlement of the Cyprus problem, giving emphasis to the demilitarisation of the island", the President said.

He said they also discussed the Turkish side's demands for recognition of the illegal regime, unilaterally declared in 1983 in the areas of Cyprus occupied by Turkey since 1974.

"We came to the conclusion that the international community will not recognise this regime and Russia's policy is the same as ours, namely that we should carry on with the discussions for a bizonal, bicommunal federation", the President said.

He noted that other issues of common interest were also discussed, that were elaborated on at his meeting with Primakov, including military cooperation and economic issues.

Referring to the opening ceremony of the World Youth Games, which he was invited to attend, President Clerides described it "impressive".

Replying to a question regarding the issue of the Russian-made S-300 surface-to-air missile system ordered by Cyprus in 1997, that was discussed during his meetings, the President said his intention "was not to discuss the contract".

"My intention was for the two sides to reiterate that they would implement the agreement", he clarified.

President Clerides dismissed statements by Turkish Cypriot leader Rauf Denktash who supported that if Cyprus joins the European Union, the Greek Cypriots will declare the 1960 agreements, by which the Cyprus Republic was established, as void.

He underlined that "for many years now we have been discussing the amendment of these agreements, and are searching for a new federal constitution".

Pointing out that issues such as future security and demilitarisation are on the negotiating table, the President stressed: "Mr. Denktash's claims are completely unfounded. Of course those agreements will have to change".

He also said the EU has rules and regulations by which Cyprus will have to abide.

Invited to comment on next week's visit to the Turkish occupied part of Cyprus by Turkish Premier Mesut Yilmaz, on the occasion of the 24th anniversary of the Turkish invasion, that will be followed by a visit by Turkish President Suleyman Demirel, President Clerides said the timing was bad.

CNA MA/RG/1998

ENDS, CYPRUS NEWS AGENCY

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