Cyprus News Agency: News in English (AM), 98-07-21

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

CONTENTS

[01] President Clerides - EU envoy

[02] Government - Cyprus problem

[03] Government protests - Turkish violations

[04] Cyprus Stock Exchange

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[01] President Clerides - EU envoy

Sir David is accompanied by Dr Walter Hagg, who represents the Austrian EU Presidency.

Present at the 70-minute meeting at the Presidential Palace were also Cyprus Foreign Minister Ioannis Kasoulides, Attorney General Alecos Markides, Under-Secretary to the President Pantelis Kouros and Britain's High Commissioner and Germany's Ambassador to Cyprus.

Sir David, who arrived in Cyprus yesterday, said afterwards that he had "a very useful and intensive" discussion with President Clerides about a range of issues.

He said "our talks with the President covered a whole range of issues, relating to the UN process, to get out of the present impasse, relating to Cyprus' EU application, how to make good and steady progress with it and how to achieve the objective we all share of bringing the Turkish Cypriots into that process and giving them a real say in it."

The British diplomat said they also discussed the security issues and "the increase in tensions in recent weeks and how to get away from them."

He avoided to elaborate, saying he was not prepared to discuss details of his talks with President Clerides.

"We covered all aspects of these problems and they were very useful," he added.

After the Presidential Palace, Sir David went to the Foreign Ministry, where he held talks with Foreign Minister Ioannis Kasoulides.

CNA/MA/GP/1998

ENDS, CYPRUS NEWS AGENCY

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[02] Government - Cyprus problem

It also told the Austrian European Union rotating presidency representative, Sir David Hannay, that President Glafcos Clerides' invitation to Turkish Cypriots for participation in Cyprus' EU accession talks still stands.

The government's positions were outlined to Sir David by Foreign Minister Ioannis Kasoulides, who said that no new ideas came out of their 75-minute meeting.

"I was given the opportunity to repeat our side's readiness to participate in a dialogue for the solution to the Cyprus problem, based on UN resolutions, at any time," Kasoulides said.

"The way each side views its status when coming to the negotiating table is not as important as the fact that the UN will call for talks based on its resolutions," he added.

Turkish Cypriot leader Rauf Denktash has said he will not participate in peace talks unless his regime in the occupied areas of Cyprus is recognised and the Republic withdraws its application to join the EU.

Referring to the government's invitation to Turkish Cypriots to participate in the EU negotiations, the Foreign Minister said that "despite the negative developments in efforts to settle the Cyprus problem we are ready to talk to them, if they accept the President's proposal".

Cyprus opened accession talks with the EU in March 1998, but the Turkish Cypriot side has turned down an invitation from President Clerides to nominate representatives in the official negotiating team.

On security matters, which is the other issue on Hannay's agenda, Kasoulides underlined the government's concern for the people's security, but said it would never take measures that would lead to tension or are beyond its legal rights.

He said Turkish Cypriot audacity has turned the security matters into "a major issue".

Foreign governments have reacted strongly to a Cyprus government decision to buy surface-to-air missiles in a bid to boost its air defences, in case of a new Turkish offensive.

Turkish troops have been occupying 37 per cent of Cyprus territory since 1974, in violation of repeated UN resolutions calling for their withdrawal.

Kasoulides said that US State Department special coordinator for Cyprus, Thomas Miller, is expected to discuss security issues during his brief Cyprus trip beginning on Thursday.

Invited to comment on statements made yesterday in the occupied areas by Turkish Prime Minister Mesut Yilmaz, with which he threatened Cyprus with war, Kasoulides announced that the Cyprus government would make the necessary representations.

At the same time, he pointed out that Yilmaz only seems to remember the position Cyprus' forces were in during 1974.

CNA MA/GP/1998

ENDS, CYPRUS NEWS AGENCY

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[03] Government protests - Turkish violations

In a letter to the UN Secretary-General, Cyprus' Permanent Representative to the UN, Sotiris Zackheos, referred to the violations of Cyprus' airspace and FIR Nicosia (flight information region) by military aircraft of the Turkish Air Force, recorded on 10 July, 1998.

Zackheos said "such intrusions...are in violation of international air traffic rules."

He pointed out that they are also "in contravention of the provisions of the Security Council resolutions on Cyprus which state that such overflights increase political tension on the island and undermine efforts towards achieving a final settlement."

Zackheos protested strongly against "these new provocative acts by Turkey, a member state of the UN, against the sovereignty and territorial integrity of the Republic of Cyprus".

These acts, he added, "are in complete disregard of international law, the UN Charter and the relevant decisions of the organisation on the question of Cyprus."

Cyprus has been divided since 1974 when Turkish troops invaded and occupied 37 percent of the island's territory.

CNA EC/MM/1998

ENDS, CYPRUS NEWS AGENCY

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[04] Cyprus Stock Exchange

   CSE General Index                          84.79 ( 0.66)

   Traded Value            CYP    981,714

   Sectural Indices

   Banks                   CYP   596,677      99.58 ( 0.63)
   Approved Investment
   Companies               CYP    22,109      59.83 ( 1.79)
   Insurance Companies     CYP   168,431      58.50 ( 0.22)
   Manufacturing Companies CYP     7,347      77.53 ( 0.12)
   Tourism Companies       CYP    39,084      70.25 (-0.64)
   Trading Companies       CYP    43,603      42.16 ( 4.95)
   Other Companies         CYP    30,309      71.75 ( 1.28)

CNA MM/1998

ENDS, CYPRUS NEWS AGENCY

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