APPENDIX R
FINANCIAL ASSISTANCE TO THE REPUBLIC OF CYPRUS
Draft Exchange of Notes between the Representative of the
United Kingdom authorised to sign the Treaty of Establishment and Archbishop Makarios and
Dr. Kutchuk
A.-Draft Note to Archbishop Makarios and Dr. Kutchuk
Your Excellencies,
I have the honour to refer to discussions on financial
matters which took place during the negotiations leading up to the Treaty
concerning the Establishment of the Republic of Cyprus of today's date. In the course of
these discussions, agreement was reached between us on the following arrangements:-
(a) the Government of the United Kingdom of Great
Britain and Northern Ireland shall pay to the Government of the Republic of Cyprus, by way
of grant, the sum of £12 million during the period of five years ending on the 31st March, 1965. This sum shall be made available as follows:-
In the financial year ending on the 31st March, 1961,
£4,000,000.
In the financial year ending on the 31st March, 1962,
£3,000,000.
In the financial year ending on the 31st March, 1963,
£2,000,000.
In the financial year ending on the 31st March, 1964,
£1,500,000.
In the financial year ending on the 31st March, 1965,
£1,500,000.
(b) In addition to the sum of £12 million mentioned in
subparagraph (a) above, the Government of the United Kingdom shall
(i) pay to the Government of the Republic, by way of grant,
the sum of £500,000 towards the construction of a new Civil Air Terminal at Nicosia
Airport;
(ii) pay to the Government of the Republic, by way of
grant, a sum not exceeding £500,000, to be paid in accordance with detailed arrangements
to be agreed within the principles set out in the Schedule hereto, for inhabitants of
Akrotiri who desire to leave Akrotiri and settle within the territory of the Republic of
Cyprus;
(iii) pay to the Government of the Republic, by way of
grant, a sum no. exceeding £340,000 towards the cost of constructing roads within the
territory of the Republic for the purpose of bypassing the Ayios Nikolaos region of the
Dhekelia Sovereign Base Area; and
(iv) on a request by the Government of the Republic for
financial assistance towards an extension of the electricity supply in the Island of
Cyprus, make a loan in an amount and on terms to be agreed between the two Governments,
such terms to be comparable to those generally applicable at the time to loans being made
by the Government of the United Kingdom to independent member countries of the
Commonwealth.
(c) Within the period of six months immediately before the
31st March, 1965, and before the end of each succeeding period of five years, the
Government of the United Kingdom shall review, in consultation with the Government of the
Republic, the provisions of subparagraph (a) of this paragraph and, taking all factors
into account, including the financial requirements of the Government of the Republic,
shall, after full consultation with the Government of the Republic, determine the amount
of financial aid to be provided to that Government in the following period of five years.
(d) Except as
may be provided in the abovementioned Treaty or as may today otherwise have been
agreed and recorded between us, the Government of the Republic shall not make any claims
against the Government of the United Kingdom and the Government of the United Kingdom
shall not make any claims against the Government of the Republic arising or purporting to
arise out of or in connexion with either the administration of Cyprus or the establishment
of the Republic of Cyprus.
2. I have the honour to suggest that, if the above
arrangements are acceptable to the Government of the Republic, this Note, together with
your reply to that effect, shall constitute an agreement in this matter between the
Government of the United Kingdom and the Government of the Republic which shall enter into
force on today's date.
B.-Reply by Archbishop Makarios and Dr. Kutchuk
Your Excellency,
We have the honour to acknowledge the receipt of your Note
of today's date which reads as follows:-
[text as above]
2. The proposals set out in that Note are acceptable to the
Government of the Republic of Cyprus and we have the honour therefore to confirm that your
Note, together with this reply, shall constitute an agreement accordingly.
SCHEDULE
The following are the principles referred to in paragraph 1
(b) (ii) of this Note:-
(a) resettlement will not be compulsory;
(b) there will be no organised resettlement of the whole
community;
resettlement will be carried out on a voluntary and
individual basis;
(c) those who leave will keep their agricultural land and
other property;
(d) those who leave
will not be allowed to return to their houses for permanent residence;
(e) the Republic will be responsible for administering the
resettlement scheme;
(f) payments by the Government of the United Kingdom will
not exceed expenditure incurred under
the resettlement scheme;
(g) applications for a resettlement grant will be
considered only if made within one year from today's date;
(h) villagers will be eligible for a resettlement grant
only if on moving into the Republic they have no
nationality other than that of the Republic.
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