Cyprus News Agency: News in English (PM), 99-01-21

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

CONTENTS

[01] Cyprus - Hungary - New Ambassador

[02] Cyprus Stock Exchange

[03] Cyprus - New Zealand - New High Commissioner

[04] Hannay - Statement

1455:CYPPRESS:01

[01] Cyprus - Hungary - New Ambassador

Presenting his credentials to the President of the Republic Glafcos Clerides today, Pataki said his country is convinced that the long standing division of the island "can be overcome with a clear commitment of the international community and with a strong political will of the partners involved".

"The recent courageous decision" of President Clerides to reduce tension on the island is another proof of that kind, Pataki pointed out, adding that Hungary has always supported "a just and stable settlement of the Cyprus problem and continues to do so".

"We support the implementation of the UN Security Council decisions and the goodwill mission of the Secretary-General, as well as international efforts aiming to bring about a just, permanent and mutually acceptable solution based on international law, on relevant UN resolutions", he said.

"We consider that a comprehensive settlement should be based on a single, independent, federative state, comprising two politically equal communities, where the rights of all minorities are respected", Pataki pointed out.

Referring to his country's participation in UNFICYP, he said its aim is "to contribute to create favourable conditions for a peaceful solution".

Hungary participates in UNFICYP with 105 troops. Pataki stressed that both countries are preparing for European Union (EU) membership, while referring to bilateral relations, he said Hungary and Cyprus "concluded several important agreements" in the past few years.

He confirmed the Hungarian government's decision to re-establish a resident diplomatic representation in Nicosia this year, noting that "more and more Hungarian tourists choose to come to Cyprus to spend their summer holidays".

On his part, President Clerides said the two countries "are bound by a long tradition of friendship, mutual understanding and cooperation", adding that they look forward to "strengthening even further" the ties between them.

Clerides "welcomed most warmly" the Hungarian government's decision for a resident diplomatic representation in Nicosia, adding that "being part of the first enlargement wave of the EU is very important" for the two countries.

He expressed his gratitude "for the principled stance and the support of the government of Hungary in our efforts to achieve a solution of the Cyprus problem" and for Hungary's contribution to UNFICYP.

Clerides pointed out that Cyprus' EU accession process "can and should act as a real catalyst in our efforts to achieve a just, viable and lasting solution to the problem of Cyprus on the basis of the relevant UN resolutions and the two High Level Agreements of 1977 and 1979".

Cyprus, Hungary, Estonia, Poland and the Czech Republic started accession negotiations with the EU last year.

CNA GG/MM/1999

ENDS, CYPRUS NEWS AGENCY

1515:CYPPRESS:02

[02] Cyprus Stock Exchange

      CSE General Index                          97.20 ( 0.81)

      Traded Value            CYP 4,864,875

      Sectural Indices

      Banks                   CYP 2,600,352     112.28 ( 0.69)
      Approved Investment
      Companies               CYP   133,436      60.57 (-0.33)
      Insurance Companies     CYP   490,541      77.57 ( 0.36)
      Manufacturing Companies CYP   362,842      91.09 ( 1.22)
      Tourism Companies       CYP   287,743      76.50 ( 3.20)
      Trading Companies       CYP   291,192      45.55 ( 0.31)
      Other Companies         CYP   342,549      85.56 ( 0.13)

CNA MA/1998

ENDS, CYPRUS NEWS AGENCY

1645:CYPPRESS:03

[03] Cyprus - New Zealand - New High Commissioner

The country's support was expressed today by its new High Commissioner to Cyprus Peter Robert Bennett, who presented his credentials to the President of the Republic Glafcos Clerides.

Bennett, who was appointed his country's High Commissioner to Cyprus for the second time, said both countries "attach a great deal of importance to the Commonwealth as one of the more successful international organisations".

He said it is disappointing that there has been little substantive progress towards a solution of the island's question in the nine years since he last presented his credentials in Cyprus.

"Our support for the territorial integrity of Cyprus remains firm and so is our support for a solution based on a bicommunal, bizonal federation of Cyprus in accordance with the relevant UN resolutions", Bennett pointed out.

Describing the Cyprus issue as "arguably the most intractable of international problems", he said his country was involved in efforts to find a solution "in the very early days through the dispatch of a police contingent to the island".

Referring to Dame Ann Hercus, the current Resident Representative of the UN Secretary-General on the island, Bennett said "an eminent New Zealander is once again actively engaged in the Cyprus question".

"We remain firmly of the view that the international community continues to have a vital role to play in facilitating a solution to the problem", he noted, adding, however, that it "can do no more than facilitate".

"A just, lasting and peaceful settlement of the issue lies in the hands of the parties directly affected - the Greek Cypriot and Turkish Cypriot communities themselves", he said.

Replying, President Clerides said the process of Cyprus' accession to the European Union "can and should act as a real catalyst in our efforts to achieve a just, viable and lasting solution to the problem of Cyprus on the basis of the relevant UN resolutions and the two High Level Agreements of 1977 and 1979".

"Despite intensive efforts on the part of the UN Secretary General and other interested governments, despite our own strong political will and honest efforts so far, the problem of Cyprus remains still unresolved", he noted.

"We will continue, however, our efforts towards the reduction of tensions, demilitarisation and the peaceful reunification of our country always in a spirit of good faith and goodwill", Clerides pointed out.

The President of the Republic also expressed his "deep appreciation and support to the ongoing efforts of Madame Ann Hercus".

Referring to bilateral relations, he said "we are ready to work with you in order to improve further the already existing excellent relations between Cyprus and New Zealand in all fields".

CNA GG/MM/1999

ENDS, CYPRUS NEWS AGENCY

2135:CYPPRESS:04

[04] Hannay - Statement

Though he welcomed the President's full acceptance of UN Security Council resolution 1218 relating to reduction of tension and a settlement as "an extremely important step", the British diplomat stopped short of describing it as a tactical manoeuvre which aims at reciprocal moves from the Turkish side.

Hannay stressed the need for a sustained effort and a discussion primarily on issues of substance, pointing out that President Glafcos Clerides' decision not to deploy Russian anti-aircraft missiles in Cyprus "creates a space in which it will be possible to make progress."

He also reiterated Britain's position in that it only recognises the Republic of Cyprus, dismissing press suggestions to the contrary.

Speaking on arrival at Larnaca airport, he said he is here to "listen to the views of the two (community) leaders" and try and strengthen the UN process which will lead to its objectives, namely to reduce tension and make progress towards a comprehensive settlement.

"I am not here to negotiate, there are no deadlines, no blueprints, what is needed is a sustained effort to move forward," he said.

Hannay, on the island for consultations with Britain's ambassadors to Cyprus, Greece and Turkey as part of regular contact, said there will also be focus on the core issues of a comprehensive settlement, including constitution, territory, refugees, compensation and security matters.

Asked if one should expect the Turkish side to act in response to the President's decision not to deploy the anti-aircraft missiles, Hannay said he did not think this was the best way to achieve progress.

"The best way to achieve progress is on the basis of the resolution 1218 itself, which does not say there is some reciprocation that has to be done, it just says what is desirable and seeks compliance," he explained.

Commenting on the President's letter to UN Secretary General Kofi Annan accepting in full the said resolution and resolution 1217, Hannay gave it a warm welcome only to turn round and add "it is not a sufficient step to achieve the implementation of 1218 because it talks about a whole range of things that have to be worked out beyond it."

Turkey has rejected the two resolutions which reaffirm the independence and single sovereignty of Cyprus and calls on Annan to work intensively for a settlement and the reduction of forces.

The President's letter, Sir David said, is "a very good start, a very welcome initiative but not the end of the story."

Replying to questions, he said presenting the President's letter as a step which warrants a response from Ankara on its stance on the UN resolutions "is a tactical way of proceeding which I do not think will get us very far."

Invited to comment on Turkish Cypriot insistence on a confederation in Cyprus, the British diplomat expressed the view that there is "excessive concentration on matters of forms and not enough of focus on matters of substance."

"If you say to me should we be discussing issues of substance relating both to tension reducing and to a comprehensive settlement, I say yes," he told the press.

He noted that issues of form should not be allowed to obscure all discussions on the substance of the problem and stressed that there will be no satisfactory solution on the issues of form unless substantive issues are discussed.

"We are as firmly convinced as we were from the beginning that the basis the UN has laid down offers the best opportunity," he said, referring to the distinction between federation (called for in UN resolutions) and confederation (Turkish Cypriot demand).

On the forthcoming Turkish elections, he said the British government will be talking to whatever government emerges from the elections "very seriously."

Sir David rejected press suggestions that Britain has altered its stance on the issue of recognition of the legal government of the Republic of Cyprus because he is not seeing the President in his official residence, but instead over a semi social and working dinner at the High Commissioner's residence in Nicosia.

"There is no change of any sort in Britain's position," he said. Hannay is scheduled to meet President Clerides tomorrow evening and Turkish Cypriot leader at lunchtime on Friday.

On arrival at Larnaca airport he had a brief meeting with the Greek Foreign Under Secretary Yiannos Kranidiotis, who was leaving the island.

The two men will meet on February 9 in Athens. Sir David leaves Sunday.

CNA MAN/MM/GG/1999

ENDS, CYPRUS NEWS AGENCY

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