Cyprus PIO: News Update in English, 98-05-11

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From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>

News Update

Monday 11/05/98

CONTENTS

• [01] Government Spokesman on missiles
• [02] No change in US policy
• [03] Cyprus successfully combating money laundering
• [04] Annan hopes Cyprus talks will resume
• [05] G7 communique on Cyprus
• [06] National Council meeting
• [07] Defence Minister says Cyprus wants peace and stability
• [08] Kranidiotis meets Cordovez
• [09] IMF preliminary report on Cyprus

[01] Government Spokesman on missiles

"Everyone is aware of the Turkish threats and the reaction of international circles as regards the S-300 missiles. Orchestrated suggestions, wherever they may come from, will not affect the Cyprus government's decision on the matter. The Cyprus government has explicitly communicated its views to those who advise it against the installation of the missiles in Cyprus. As for those who express fears about the creation of instability, their suggestions should be directed solely at the Turkish government and not, obviously, at the Cyprus government. The Cyprus government regrets that there was no reaction to the statement made by the Second Chief of Staff of Turkey General Cevik Bir, during his recent illegal visit to Cyprus, that the Turkish Armed Forces "have been bringing peace and stability to the region for the past 24 years" and will not abandon Cyprus.

The Cyprus government does not intend to make any further unnecessary comments on the question of the missiles. It also urges the mass media to refrain from blowing up the issue in a manner which could cause harm at this delicate phase".

[02] No change in US policy

Asked to clarify the US position regarding statements made by Ambassador Holbrooke and comments he made himself, Mr Foley said on Friday (8.5.98) "Holbrooke was not in any way signalling a policy change with regard to our excellent relationship with the Republic of Cyprus which, indeed, is the only government that we recognise on the island. Nor was he according any official status to the Turkish Cypriot entity in the north".

Foley stressed that "Holbrooke was describing the de facto situation which has existed in Cyprus for a long time".

Foley explained that "Ambassador Holbrooke and Special Cyprus State Department Co-ordinator, Thomas Miller, have said repeatedly and publicly that the US does not recognise the so-called Turkish Cypriot republic of northern Cyprus".

He pointed out that Holbrooke was responding to a question he was asked concerning the situation on the ground and intending to advance US efforts for a Cyprus settlement.

"There is really nothing new here at all", he concluded.

[03] Cyprus successfully combating money laundering

Speaking at a press conference in Nicosia on Saturday (9.5.98) Mr Kasoulides presented the measures the government has taken in order to prevent and combat money laundering.

The minister said that Cyprus' geographical location and the fact that it has one of the world's largest offshore sectors made it open to allegations of money laundering. He said it was these reasons and not because of a lax attitude that Cyprus was being targeted and added that such allegations were usually exaggerated and had no bearing on reality.

The Minister pointed out, moreover, that the 1997 US State Department report, issued this March, described Cyprus' anti-money laundering efforts as "notable and encouraging".

He added that although Cyprus remains a country of primary concern in the US report, so do the United States themselves, Canada, France, Germany, Switzerland and the UK.

The Minister also said that since December 1996, over 60 cases have been investigated by the authorities, 30 of which came after requests from foreign governments. From the investigations, 22 disclosure orders were requested. In addition, two freezing orders and two restraint orders were issued, representing around $13 million.

[04] Annan hopes Cyprus talks will resume

Speaking on CNN via satellite from Uganda where he is on tour, Mr Annan replied to questions on Cyprus and said "we are having difficulties because Mr Denktash has imposed certain conditions. He would want to be recognised and be placed on the same footing as President Clerides before he will sit down to negotiate."

The UN Chief expressed the hope that even though US Presidential Emissary, Richard Holbrooke's, "last visit to the island was not very encouraging, the parties and in particular Mr Denktash will reconsider his position and come back to the table to continue the discussion".

Mr Annan also said that President Clerides' proposal for the complete demilitarisation of Cyprus " is much on the agenda".

"If we were to move forward with the negotiations we will deal with it in transition, constitutional issues, security issues and a whole range of issues which will have to be tackled".

Commenting on the forthcoming deployment of the Russian defence missiles, the UN Chief stressed "we are against heightened tension".

He said the UN "do not want to see a new arms race in the region. We have been trying to find a solution. Our efforts have not been successful so far, but we have not given up".

Mr Annan added that the UN hoped that if the peace process moved forward with both community leaders at the table, that would have been a good incentive to convince President Clerides not to deploy the missiles.

"Hopefully we will be able to convince them. We do not want to see any tension in any part of the world. We have enough crises around", he concluded.

The UN Secretary-General also confirmed the appointment of Dame Ann Hercus, former Minister and UN permanent representative of New Zealand, as his special representative to Cyprus, succeeding Gustave Feissel, who retires.

[05] G7 communique on Cyprus

In a communique issued after their two-day talks in London over the weekend, the group of the world's richest nations reiterated its support to UN efforts for a Cyprus settlement and for the resumption of bi-communal talks towards this end.

The G7, plus Russia called upon Greek and Turkish Cypriots "to resume the direct talks under the auspices of the UN" and urged all concerned "to work for a settlement on the basis of a bi-zonal, bi-communal federation".

They also expressed concern "that new developments in the military sphere, including an increase in force levels and the upgrading of sophisticated weaponry may risk further raising tension in this already unstable region".

Reiterating their support for UN efforts for a comprehensive settlement of the Cyprus problem the G7 and Russia particularly urged Greece and Turkey, "to promote good relations between them and to work for the peaceful settlement of their bilateral differences".

Cyprus' Foreign Minister, Ioannis Kasoulides, commenting on the G7 communique, said that it "proves that the Cyprus problem has not been forgotten".

Speaking before leaving the island on a 13-day tour of France, Argentina, Colombia and New York, Mr Kasoulides also said that as long as the Cyprus problem remains unresolved more weapons will be concentrated on the island and called all those concerned to assist efforts for a solution.

[06] National Council meeting

Government Spokesman, Christos Stylianides, announced that a new meeting will be held next week.

He added that party leaders had discussed the results of the three day consultations US Presidential Emissary for Cyprus, Richard Holbrooke, had with the two sides earlier this week.

[07] Defence Minister says Cyprus wants peace and stability

Mr Omirou also pointed out that the deployment of Russian defensive system S-300 could be avoided if there was an agreement on the demilitarisation of Cyprus or if talks leading to a Cyprus settlement were held.

Asked to comment on Cyprus' prospects of becoming an associate partner to the Western European Union, Omirou said a dialogue is in process and expressed the hope that Cyprus' status of participation in the WEU will be upgraded.

[08] Kranidiotis meets Cordovez

He told journalists that they had discussed the latest developments in the Cyprus problem and that he had expressed his disappointment at the way the US initiative had turned out, feelings that Mr Cordovez shared.

He added that they would remain in touch and follow developments closely.

As regards future plans, he said that Mr Cordovez had said these had not yet been finalised.

"Our view is that it has to be repeated to all concerned that the search for a Cyprus solution is of the utmost urgency, that the status quo is unacceptable, and that a future solution should be based on the principles and resolutions of the United Nations so that peace and stability can be restored in the region.

[09] IMF preliminary report on Cyprus

Speaking after a meeting with a visiting IMF delegation, Mr Christodoulou said the report points out that after the problems of 1996 and 1997, there is now a satisfying recovery in terms of growth rate and stabilisation of the economy.

He said the report calls for measures to reduce the fiscal deficit within the next two-three years and keep it under the 3 per cent limit, according to the relevant Maastricht criterion.

The liberalisation of the island's financial system and measures to improve competitiveness and productivity in both the private and public sectors, are also recommended by the IMF report, the Finance Minister noted.

He added that while the report does not call for the abolition of the Cost Of Living Allowance (COLA), it recommends additional consideration of the issue, taking into account the relevant regulations in competitive countries.

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

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