Makes a Strong Appeal for Reunification
Glafcos Clerides was sworn in for a second five-year term as the President of the Republic of Cyprus on Feb. 28, before a ceremony at the House of Representatives in Nicosia. Clerides was re-elected President in a second round of balloting on Feb. 15.

In his inaugural address, the President called on Turkish Cypriot leader, Rauf Denktash, to work together for a common homeland and reunite the Mediterranean island, divided since the 1974 Turkish invasion.

Clerides told the nation that his main objective is  to achieve progress in the efforts to secure a solution of the Cyprus question. He also said he would promote the Republic’s process for accession to the European Union and utilize the dynamics created to reunify Cyprus.

Moreover, Clerides stressed that he intends to maintain close cooperation with Greece. He pledged to build the country’s defenses, unless Turkey agrees to efforts to demilitarize the island.

Turning to his  compatriot Rauf Denktash, the President said,  I call on you to work with us for our common homeland. Let us start the process for creating a new Cyprus in a new century.

He pointed out that  it is our duty to do so and it is the best gift we can give to our children and grandchildren, to all Cypriot children. Clerides pledged he would  help Mr. Denktash to bring about together the new reality and underlined that although third parties can help towards this goal,  a lot depends on us ourselves. The President said:  I look forward to cooperating with the Turkish Cypriot leadership in the coming months so as to turn this ideal into a reality in Cyprus, noting the forthcoming period would be one of intensive consultations on the Cyprus problem and political activity behind the scenes. Acknowledging that both communities have suffered greatly and paid dearly for their mistakes, Clerides said,  now is the time to think about the future; to bequeath to future generations a heritage of peace, not a heritage of confrontation and conflict.

He stressed that Cyprus, as a united country, should be  one state, with a single sovereignty,
single international personality and single citizenship, regardless of decentralization and specific differences. A Cyprus settlement, he said, is  not difficult, provided there is goodwill on all sides.

Referring to Turkey, which continues to occupy 37 percent of the island, the President said it must realize that a solution in Cyprus  will give the necessary impetus, offering at the same time tremendous benefits. He called on Turkey to allow the Turkish Cypriots to  participate in the journey of no return of Cyprus towards EU accession, or face the isolation of the Turkish Cypriot community and an obstacle in the way of Turkey’s own aspirations.

If the Turkish Cypriot community has the necessary political will, it would not be difficult to find ways for it to participate in Cyprus’s accession course, the President said.

The President put a major emphasis on the importance to the Republic of joining the EU.  We are all aware of the advantages which will accrue from the accession of this small island to the large European family, he said.  The globalization of the world economy, international competition, the necessity of grouping national economies into larger units, cooperation in communications and the need for stability and collective security cannot leave a small country like Cyprus, with a dynamic economy, isolated and alone. Cyprus must belong, and naturally belongs where its history, geography, civilization and social values have destined it to be, in a united Europe.

Commenting on defense issues, he reiterated that  we have no intention of attacking anyone, our intention is to have an adequate deterrent to avert the military option as a method of solving differences. It is absurd to talk about a balance of power.  Turkey’s advantage in having occupying forces on the island and the proximity of Turkey to Cyprus are well known facts, the President underlined.

He said the great strategic importance of this part of the world affects the vital interests of the international community.  Stability in the Eastern Mediterranean passes through a solution of the Cyprus problem" a solution which will contribute greatly to the improvement of relations between Greece and Turkey, Clerides said. A  primary objective continues to be Cyprus’s accession to the EU the soonest possible.

Clerides said he believed a genuine effort to implement a U.N. brokered agreement to ascertain the fate of missing persons will finally pave the way for an end to the agony of their families.
On the homefront, the President promised to further promote the principles of meritocracy and good government, maintain a strong and dynamic economy, upgrade the island’s role as an international services center and strengthen and upgrade democratic institutions.

Cyprus’s economy is based on strong foundations, he said.  However, fundamental adjustments are required to adapt successfully to the new conditions and challenges emerging and great demands of the 21st century. But I am optimistic as I have confidence in the creative abilities of our people.

Clerides affirmed before the House and foreign diplomats faith to, and respect for, the constitution and the laws, the preservation of the independence and the territorial integrity of the Republic of Cyprus.

In his remarks at the ceremony, House President Spyros Kyprianou noted that the President’s responsibilities increase in view of anticipated critical and defining developments. Kyprianou called for unity and sincere cooperation within the National Council, the top advisory body to the President on the handling of the Cyprus question.

In the days up to his inauguration, Clerides held talks with other parties and politicians in an effort to put together as broad a government as possible, and that was reflected in the cabinet he selected.

U.S.: 1998 Will Be "An Important Year for Cyprus"
U.S. foreign policy experts believe the time is right for an aggressive initiative to attempt to solve the Cyprus problem. On March 8, State Department Special Coordinator, Tom Miller, will begin a two-week visit to Cyprus, Greece and Turkey. Special Envoy on Cyprus, Richard Holbrooke, is expected to visit at a later date.

Speaking after conveying President Bill Clinton’s post-election congratulations to President Clerides in Nicosia, U.S. Ambassador Kenneth Brill said:  The U.S. is very serious about trying to take advantage of the opportunities that 1998 provides in efforts for a solution, and described 1998 as  an important year for Cyprus.

In Athens, Ambassador Nicholas Burns echoed that sentiment saying:
We think that 1998 is the year in which progress should be made on Cyprus. The U.S., he said, wishes to see a united Cyprus on a bizonal, bicommunal basis.

U.S. Ambassador to Turkey, Mark Parris, speaking in Ankara also said he had high expectations, but feared 1998 could be  a year of opportunity lost, if flexibility isn’t found, and if Turkey doesn’t recognize that the complex issues relating to Greece, the Aegean and Cyprus are given  special, separate status in Washington.

Rep. Donald M. Payne of the International Relations Committee also held out hope for the coming initiative. In a Washington address, he said  Turks and Greeks of Cyprus should be given their own fair share in an expanded Europe instead of becoming prisoners of an expanding Turkey.

Regarding Turkish threats against the new airbase opening at Paphos, Payne noted that Cyprus has  no air force or navy, and only a small army, and that the government has said the Russian-made air-defense missiles would only be deployed if there was no progress in solving the Cyprus problem or no movement toward demilitarization.

President Clerides has maintained that Cyprus has the sovereign right to defend itself and that the deployments will go ahead as planned. He added it is wrong to exaggerate the issue, since the missiles are not due until autumn and talks on Cyprus are pending.  The government has said it will scrap the missile deal if there is progress in the talks, or an agreement reached on demilitarization.

In Washington, Ambassador Andros Nicolaides has explained the Cyprus position in a series of recent meetings with senior U.S.  officials and leading members of Congress.

Russian Ambassador to Cyprus, Georgi Mouradov, has announced that Russia’s Special Envoy for Cyprus, Vladimir Tchizhov, will visit Cyprus in March with  certain ideas relating to the demilitarization of Cyprus. Russian Foreign Minister, Yevgeni Primakov, visiting Greece last month, said  the demilitarization of Cyprus would eliminate the need for any kind of armaments.

Meanwhile, two former chairmen of the Senate Foreign Relations Committee, Republican Charles Percy and Democrat Clairborne Pell, have come out in support of a new Cyprus initiative based on an evenhanded approach.

U.S. Reports Praise Cyprus's Efforts
Two reports released last month by the U.S. State Department had high praise for Cyprus.

The State Department’s International Narcotics Report for 1997 applauded Cyprus for its efforts to combat drug trafficking and other drug-related crimes and described the Republic’s moves to curb money laundering as  encouraging.

The Narcotics Report says,  the (Cyprus) government enforces tough anti-drug laws, and notes the  excellent relations it maintains with the U.S. administration and other foreign government counterparts.

The report praises the government for the introduction of legislation to implement the EU Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime, passed in April 1996.

The U.S. report also remarks that, as in other successful international financial centers, Cyprus is potentially  vulnerable to international money laundering activities, but adds that  the Central Bank’s efforts in recent years are encouraging.

The Laundering Investigations Unit, it adds, believes  Cyprus’s efforts in this area have reduced money laundering activity . . .  There has been a falloff in detected illicit financial activity on Cyprus during the past two years.

Commenting on corruption, the report continues  there is no evidence of senior or other officials facilitating the production, processing, or shipment of drugs or the laundering of drug-related assets.

The government’s  aggressive advances on the anti-money laundering front and its excellent co-operation on drug law enforcement during 1997 warrant U.S. government optimism for even stronger bilateral cooperation in 1998, the report says.

Meanwhile, the State Department’s 1997 report on Human Rights Practices says that human rights are respected by the government of the  Republic, but the authorities in the occupied north continue to interfere with U.N. access to Greek Cypriots and Maronites living in areas occupied by Turkey since 1974, where the Turkish Army exercises  effective control.

The report states:  The treatment of these groups still falls short of Turkish Cypriot obligations under the Vienna III agreement of 1975. There are no Greek-language educational facilities beyond elementary level in the occupied north, and Greek Cypriots complain about lack of access to telephones and vandalism of Orthodox churches.

The report refers to a 1996 European Court of Human Rights decision that reaffirmed the validity of property deeds issued prior to 1974. However, it fails to underscore the massive violations of human rights by Turkey in the occupied areas, most notably the denial of the right of refugees to return to their homes.

The court found  the Turkish Army exercised effective overall control in the occupied north. It concluded, however, that Turkish authorities have not conducted a credible investigation of the 1996 murder . . . of a Turkish Cypriot journalist Kutlu Adali, who had written articles critical of Turkey’s role in the north.  Nor did it hold  significant investigations into the killing of a Greek Cypriot demonstrator and the beating death of another in the U.N. buffer zone in 1996.

Freedom of speech, religion, the press and labor are protected in government-controlled areas. However, the report notes, that  a significant percentage of the labor force in the north consists of illegal workers, mostly from Turkey.

New Cabinet Named
The new 11-member Council of Ministers appointed by President Clerides officially took office on March 3. Following their swearing in at the Presidential Palace on Feb. 28, the President noted,  cooperation among all of us must be constructive for the good of Cyprus.

The members are:

Foreign Affairs, Ioannis Kasoulides.
Interior, Dinos Michaelides.
Finance, Christodoulos Christodoulou.
Defense, Yiannakis Omirou.
Education and Culture, Lykourgos Kappas.
Communications and Works, Leontios Ierodiaconou.
Commerce, Industry and Tourism, Nicos Rolandis.
Agriculture, Natural Resources and Environment, Costas
Themistocleous.
Labor and Social Insurance, Andreas Moushouttas.
Justice and Public Order, Nicos Koshis.
Health, Christos Solomis.

Christos Stylianides was appointed Government Spokesman.
 

Cyprus & the EU: Accession Negotiation to Begin
Talks will begin in Brussels on March 31 on Cyprus’s accession to the European Union, although whether or not Turkish Cypriots will participate remains unresolved.

European Union External Relations Commissioner Hans Van den Broek said recently that the invitation towards the Turkish Cypriot side to participate remains open. The Dutch Commissioner will visit Cyprus March 5, ahead of the start of the accession talks.

The Cyprus government has proposed Turkish Cypriot participation provided that the Turkish Cypriot side accepts the principle of Cyprus’s accession and the Turkish Cypriot representatives be part of the Cyprus Republic’s negotiating team. Both Van den Broek and European Commission President, Jacques Santer, have welcomed the Cyprus government’s efforts to secure Turkish Cypriot participation.

Government Spokesman Christos Stylianides said the government will consult with the political leadership, the Greek government and its legal experts to try and find a formula for Turkish Cypriot participation.

There are basic principles governing this matter. Under no circumstances should Turkish Cypriot participation undermine the status of the Republic of Cyprus or imply in any way direct or indirect recognition of the illegal entity in the Turkish-occupied part of the island, Stylianides stressed.

The spokesman also said that former President and United Democrats leader, George Vassiliou, would head the negotiating team of the Republic of Cyprus in the accession talks.

His statement came amid indications of a flurry of diplomatic activity, including the expected resumption of the United Nations-led peace process. The Secretary General’s special adviser, Diego Cordovez, is to visit Cyprus on March 16 in order to continue his efforts for reaching a solution. Mr. Cordovez will also visit Athens and Ankara. Britain’s Representative for Cyprus, Sir David Hannay, paid a visit to the island in late February and returned to Cyprus on March 4 for a second visit.

President Clerides is due in Athens on March 10 and will then be attending the European Conference in London on March 12, when he will meet with British Prime Minister Tony Blair and Foreign Secretary Robin Cook. The United Kingdom currently holds the rotating presidency.

Business Liberalization
Representatives of European stock exchanges will meet in Cyprus on March 6. The Cyprus Stock Exchange (CSE) will host the  European Stock Exchanges Forum of the  Federation of European Stock Exchanges which will deal mainly with the issue of emerging markets.

The CSE hopes this conference will boost Cyprus’s drive to become a regional and international financial center. Delegates to attend will come from the stock exchanges of London, Frankfurt, Zurich, Brussels, Luxembourg, Athens, Amsterdam, Helsinki, Copenhagen, Lisbon, Madrid, Ljubliana, Malta, Bratislava, Prague, Riga, Tallinn, Warsaw and Lithuania.

Six other stock exchanges will attend the forum as observers, namely the Russian Stock Exchange and the stock exchanges of Moscow, Beirut, Yerevan, Egypt and Jordan.

The fact that the forum will be held in Nicosia reflects the reality that the island’s stock market is capable of becoming an international one the CSE said in a press release.

President Glafcos Clerides has announced a series of government measures to help boost the CSE and promote it as a regional financial center.

Separately, the government will also shortly announce plans to abolish a ceiling on interest rates imposed during British colonial rule. The move, coming in advance of the EU accession talks, will establish Cyprus’s commitment to full liberalization of financial markets. It is likely to speed the lifting of controls on capital move- ment and restrictions on foreign investment.

 
Book Notes

• Blocking the Sun, the Cyprus Conflict, by John L. Scherer.
• Britain and the International Status of Cyprus,  1955-59, by Evanthis Hatzivassillou. Contact Minnesota Mediterranean and East European Monographs (MMEEM), (612) 624-4526.
• Hostage to History, Cyprus, from the Ottomans to Kissinger, by Christopher Hitchens, third edition, new preface, Verso, 180 Varick St., New York, N.Y. 10014.

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