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<p align="justify"><b>Situation in Cyprus</b></p>
  <p align="justify"><b><span lang="EN-GB">Doc. 10028</span></b><span lang="EN-GB"><br>
12 January 2004</span></p>
  <p align="justify"><b>Report</b><br>
Committee on Political Affairs<br>
Rapporteur : Mr Mátyás Eörsi, Hungary, Liberal, Democratic and Reformers&#146; Group</p>
  <hr size="1">
</blockquote>
<blockquote>
  <p align="justify"><i>Summary</i></p>
  <p align="justify">Cyprus has now been divided for nearly thirty years. Despite
    the efforts of the international community and the rallying of Cypriot political
    forces, the Cyprus problem remains unresolved and the island&#146;s people
    divided. The Rapporteur particularly deplores the failure, in March 2003,
    of negotiations on the Cyprus settlement on the basis of the plan presented
    by Kofi Annan, Secretary-General of the United Nations.</p>
  <p align="justify">If no settlement is reached, a divided Cyprus will join
    the European Union on 1&nbsp;May&nbsp;2004.&nbsp; The Rapporteur fears this
    may result in a hardening of the two communities&#146; leaders&#146; positions
    and perpetuate the current deadlock. In this respect, the Rapporteur stresses
    that if a <i>de facto</i> divided Cyprus joins the EU, this is likely to
    undermine the prospects for Turkey&#146;s accession and consequently destabilise
    the situation throughout this region of Europe.  </p>
  <p align="justify">The report therefore calls on the leaders of the two communities
    to resume negotiations without delay on the basis of the Annan plan with
    a view to reaching a political settlement of the Cyprus problem by 1 May
    2004; to make further efforts to build confidence between the two communities
    and to respond in a constructive manner to steps taken in that direction.
    Furthermore, it calls on Greece and Turkey to contribute to the resumption
    and smooth conduct of the negotiations on the basis of the Annan plan. Moreover,
    it calls on the European Union to encourage Turkey&#146;s positive involvement
    in the search for a settlement of the Cyprus problem by giving the Turkish
    authorities a clearer prospect for the opening of accession negotiations,
    in compliance with the appropriate criteria.</p>
  <p align="justify"><b>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Draft
      Resolution <i>[<a href="../../AdoptedText/TA04/ERES1362.htm">Link to the
      adopted text</a>]</i></b></p>
  <p align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cyprus
    has now been divided for nearly thirty years.&nbsp; There have been some
    major developments in and around Cyprus since the adoption of Parliamentary
    Assembly <a href="../../AdoptedText/TA02/ERES1267.htm">Resolution 1267</a> (2002).&nbsp; The
    direct negotiations between the leaders of the Cypriot communities in the
    frameworkofthe good offices of Kofi Annan, Secretary-General of the United
    Nations,the magnet effect of the European Union&#146;s enlargement, Turkey&#146;s
    more constructive attitude and the changes in public opinion in the northern
    part of Cyprus have generated a positive momentum and led to hopes that a
    just and lasting solution will at last be found to the Cyprus problem.</p>
  <p align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However,
    despite the efforts of the international community and the rallying of Cypriot
    political forces, the Cyprus problem remains unresolved and the island&#146;s
    people divided.</p>
  <p align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Assembly
    particularly deplores the failure, in March 2003, of negotiations on the
    Cyprus settlement on the basis of the plan presented by Kofi Annan when Mr
    Denktash, the Turkish Cypriot leader, rejected the plan while Mr Papadopoulos,
    President of the Republic of Cyprus, appeared willing to sign it.&nbsp; The
    Assembly calls on all the parties concerned to resume negotiations on the
    basis of the Annan plan without delay in order to reach a settlement before
    the EU enlargement.</p>
  <p align="justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If no
    settlement is reached, a divided Cyprus will join the European Union on 1&nbsp;May&nbsp;2004.&nbsp; The
    Assembly fears this may result in a hardening of the two communities&#146; leaders&#146; positions
    and perpetuate the current deadlock.</p>
  <p align="justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; While
    the Greek Cypriots will benefit from the advantages attendant on Cyprus&#146; accession
    to the European Union, the Turkish Cypriots will be deprived of them.&nbsp; There
    is a real danger that the Turkish Cypriot community will be increasingly
    sidelined, the economy will decline still further and tensions will increase.</p>
  <p align="justify">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Furthermore,
    if a <i>de facto</i> divided Cyprus joins the EU, this is likely to undermine
    the prospects for Turkey&#146;s accession and consequently destabilise the
    situation throughout this region of Europe.&nbsp; In this respect, the Assembly
    stresses that Turkey has a key role to play in the search for a settlement
    leading to the reunification of Cyprus.&nbsp; It welcomes the Turkish Government&#146;s
    more open-minded and pragmatic approach to the Cyprus problem and invites
    it to exert all its influence in support of the United Nations Secretary-General&#146;s
    efforts to achieve a settlement.&nbsp; At the same time, the Assembly believes
    that a clearer European perspective on Turkey would facilitate a settlement
    of the Cyprus problem.</p>
  <p align="justify">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The elections
    held in the northern part of Cyprus on 14 December 2003 have shown that the
    Turkish Cypriot community is very divided in regard to the choices concerning
    its future.</p>
  <p align="justify">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Assembly
    notes with satisfaction that a substantial proportion of the Turkish Cypriot
    community is now in favour of a settlement based on the Annan plan and of
    a reunified Cyprus joining the European Union.&nbsp; Accession is seen increasingly
    as a source of hope rather than a threat, and division as an obstacle to
    the Turkish Cypriots&#146; future in Europe rather than a means of protecting
    their rights.</p>
  <p align="justify">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the
    same time the Assembly is aware that many Turkish Cypriots still perceive
    the Greek Cypriot community as a security threat and Turkey as the best guarantee
    that the tragic events of the past will not happen again.&nbsp; Consequently,
    reunification of the two parts of Cyprus and accession to the European Union
    without Turkey being a member still inspire mistrust.&nbsp; The Turkish Cypriot
    leaders use these feelings of mistrust to justify their uncompromising position.&nbsp; Certain
    attitudes and statements on the part of the Greek Cypriot authorities would
    unfortunately seem to substantiate these feelings.  </p>
  <p align="justify">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is for the leaders
    of the two communities to overcome the pattern of confrontation based on
    past fears and on efforts to secure unilateral advantages and to turn to
    the future of their communities, which form a single people with a shared
    destiny.  </p>
  <p align="justify">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In this connection
    the Assembly welcomes the steps taken by the Government of the Republic of
    Cyprus, on the one hand, and the Turkish Cypriot administration, on the other,
    to build confidence between the two communities and encourages them to make
    further efforts and show greater openness in this respect.</p>
  <p align="justify">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Assembly therefore:</p>
  <p align="justify">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on the leaders of the two communities</p>
  <ul>
    <li>
      <p align="justify">to resume negotiations without delay on the basis of
        the Annan plan with a view to reaching a political settlement of the
        Cyprus problem by 1 May 2004;</p>
    </li>
    <li>
      <p align="justify">to make further efforts to build confidence between
        the two communities;</p>
    </li>
    <li>
      <p align="justify">to respond in a constructive manner to steps taken in
        that direction;</p>
    </li>
  </ul>
  <p align="justify">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on the authorities of the Republic of Cyprus</p>
  <ul>
    <li>
      <p align="justify">to confirm their willingness to resume negotiations
        on the basis of the Annan plan;</p>
    </li>
    <li>
      <p align="justify">to refrain from any attitudes, acts or statements that
        might be interpreted as designed to assert the dominant position of the
        Greek Cypriot community or might be perceived as a threat by the Turkish
        Cypriot community;</p>
    </li>
    <li>
      <p align="justify">to eliminate any remaining obstacles to contact and
        exchange between the two communities;</p>
    </li>
    <li>
      <p align="justify">to facilitate the Turkish Cypriot community&#146;s commercial
        exchanges with other countries;</p>
    </li>
    <li>
      <p align="justify">to develop relations with Turkey;</p>
    </li>
    <li>
      <p align="justify">after the enlargement of the European Union, not to
        oppose Turkey&#146;s application for membership;</p>
    </li>
  </ul>
  <p align="justify">iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on the Turkish Cypriot authorities</p>
  <ul>
    <li>
      <p align="justify">to review their rejection of the Annan plan and return
        to the negotiating table on the basis of the plan;</p>
    </li>
    <li>
      <p align="justify">to abstain from exploiting past fears in order to revive
        and fuel mistrust and suspicion of the Greek Cypriot community and Greece;</p>
    </li>
    <li>
      <p align="justify">to adopt a more positive approach to the European Union;</p>
    </li>
    <li>
      <p align="justify">to ensure freedom of expression and freedom of the media;</p>
    </li>
  </ul>
  <p align="justify">iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on Turkey</p>
  <ul>
    <li>
      <p align="justify">to use its influence to assist the resumption and smooth
        conduct of the negotiations on the basis of the Annan plan;</p>
    </li>
    <li>
      <p align="justify">to develop relations with the Republic of Cyprus;</p>
    </li>
  </ul>
  <p align="justify">v.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on Greece</p>
  <ul>
    <li>
      <p align="justify">to contribute to the resumption of negotiations on the
        basis of the Annan plan and encourage the authorities of the Republic
        of Cyprus to confirm their willingness to accept the plan as the basis
        for a settlement;</p>
    </li>
  </ul>
  <p align="justify">vi.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; calls
    on the European Union</p>
  <ul>
    <li>
      <p align="justify">to encourage Turkey&#146;s positive involvement in the
        search for a settlement of the Cyprus problem by giving the Turkish authorities
        a clearer prospect for the opening of accession negotiations, in compliance
        with the appropriate criteria;</p>
    </li>
    <li>
      <p align="justify">to increase efforts to bring the northern part of Cyprus
        closer to the EU;</p>
    </li>
    <li>
      <p align="justify">to ease conditions for the access of products from the
        northern part of Cyprus to the single market;</p>
    </li>
  </ul>
  <p align="justify">vii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; encourages
    the Secretary-General of the United Nations to resume his efforts as soon
    as an opportunity arises and urges him to pay special attention to security
    issues on the island, which are the main source of mutual mistrust, and to
    embark on negotiations with the flexibility required for the purpose;</p>
  <p align="justify">viii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; decides to reconsider
    the issue after the enlargement of the European Union.  </p>
  <p align="justify"><b>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Draft
      Recommendation <i>[<a href="../../AdoptedText/TA04/EREC1642.htm">Link to
      the adopted text</a>]</i></b></p>
  <p align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
    Parliamentary Assembly refers to Resolution &#133; (2004) on the situation
    in Cyprus.</p>
  <p align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It
    welcomes the initiatives of the Secretary General and the activities of the
    Council of Europe aimed at contributing to the reconciliation of the Cypriot
    communities and at facilitating, in the framework of the efforts of the international
    community, a fair and durable resolution to the Cyprus problem, in the respect
    of the principles and values of the Council of Europe.</p>
  <p align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
    Assembly recommends to the Committee of Ministers to envisage a more active
    contribution on behalf of the Council of Europe to the search for a settlement
    in Cyprus.</p>
  <p align="justify"><b>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Explanatory
      memorandum by the Rapporteur</b></p>
  <p align="justify"><b>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction</b></p>
  <p align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The two
    years that have passed since the Assembly adopted <a href="../../AdoptedText/TA02/ERES1267.htm">Resolution
    1267</a> (2002) on the <i>Situation in Cyprus </i>have been characterised
    by several very important, and sometimes encouraging, developments with regard
    to Cyprus.</p>
  <p align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the
    domestic level, the Presidential elections in February 2003 brought to power
    a new President of the Republic of Cyprus, Mr Tassos Papadopoulos. In the
    northern part of the island, the question of the future of Cyprus became
    a subject of intense public debate, and general elections are scheduled for
    14 December 2003. Moreover, the Turkish Cypriot authorities began opening
    up crossing points between the two parts of the island in April 2003 and
    the ensuing contacts have been a success.</p>
  <p align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the
    international level, the forthcoming enlargement of the European Union by
    ten new members, including Cyprus, was decided at the Copenhagen Summit in
    December 2002. The coming to power in Turkey of a new majority after the
    general elections in November 2002, and the changing attitude of the Turkish
    government, is one of most important factors both in terms of the Cyprus
    issue and the future EU membership of Turkey. These developments have created
    a new situation with regard to the Cyprus issue. The international community
    has intensified its efforts to reach a negotiated settlement between the
    two parts of the island within the framework of the good offices mission
    of the Secretary-General of the United Nations.</p>
  <p align="justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However,
    in spite of all these efforts and signs of a more open-minded approach, the
    Cyprus problem has still not been settled and, failing a last-minute breakthrough,
    the enlargement of the EU on 1 May 2004 will only involve the Republic of
    Cyprus. The division of the island will thus be frozen, at least for the
    next few years.</p>
  <p align="justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Council
    of Europe has continued to keep a close eye on the various aspects of the
    Cyprus problem at several levels. For its part, the Assembly adopted in June
    2003 Recommendation 1608 (2003) on Colonisation by Turkish settlers of the
    occupied part of Cyprus and Resolution 1333 (2003) on the Rights and fundamental
    freedoms of Greek Cypriots and Maronites living in the northern part of Cyprus.
    Personally, while I fully agreed to their substance, I have question marks
    as to whether the timing for presenting these two reports was well chosen
    and whether they have really contributed to reconciliation and brought a
    settlement in Cyprus closer.</p>
  <p align="justify">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As your
    rapporteur, appointed in September 2002, my task is to keep a close eye on
    the political situation in Cyprus, bearing in mind that the key issue is
    the division of the island, and to report on it when I believe it is necessary
    in order to propose political action by the Assembly.</p>
  <p align="justify">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For various
    reasons beyond my control, it has not yet been possible to organise a visit
    to Cyprus. I am aware that this is crucial for the objectivity of the report
    and the accuracy of its conclusions, and I have made plans to go there between
    12 and 16 January 2004.</p>
  <p align="justify">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However,
    I consider it absolutely essential that not only the Assembly but also the
    parties directly or indirectly involved, and especially the guarantor powers,
    should use their influence to contribute to the settlement of the Cyprus
    problem and the reunification of the island before the date for EU enlargement.</p>
  <p align="justify">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For this
    reason, and in view of time constraints and the Assembly&#146;s Rules of
    Procedure, I have decided to present my report before the visit and then
    finalise it on the basis of its results.</p>
  <p align="justify"><b>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a href="../../AdoptedText/TA02/ERES1267.htm">Resolution
        1267</a> (2002): brief recapitulation and review</b></p>
  <p align="justify">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; When <a href="../../AdoptedText/TA02/ERES1267.htm">Resolution
      1267</a> was adopted in January 2002, developments in Cyprus gave rise
      to cautious optimism regarding the prospects for a solution to the Cyprus
      conflict. Noting that the future enlargement of the European Union would
      create a new situation, the Assembly expressed its clear preference for
      a political agreement between the two sides on the island&#146;s future
      prior to enlargement to enable the entire population of Cyprus to benefit.</p>
  <p align="justify">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Assembly thus
    declared its support for the intensification of the efforts of the Secretary-General
    of the United Nations to reach a political solution in Cyprus and called
    on the leaders of the two communities, the guarantor powers and the European
    Union to contribute to a settlement through practical measures.</p>
  <p align="justify">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Today, the assessment
    of the resolution&#146;s implementation is, on the whole, negative. It is,
    of course, possible to detect some limited progress in regard, for example,
    to contacts between the Turkish Cypriots and people living in the Republic
    of Cyprus, dialogue between the political parties and more active and positive
    involvement of the guarantor powers, but most of the measures proposed by
    the Assembly, although they remain as relevant as ever, have not been implemented.</p>
  <p align="justify"><b>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Crucial
      developments in Cyprus 2002-2003</b></p>
  <p align="justify">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Republic
    of Cyprus</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Presidential
      elections (February 2003)</i></p>
  <p align="justify">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The outgoing President,
    Mr Glafcos Clerides (DISY, Democratic Rally), had long indicated that he
    would not stand for re-election but finally decided to seek a new mandate,
    announcing his intention that, if he was elected, he would resign on Cyprus&#146; accession
    to the European Union on 1 May 2004. During the election campaign, he set
    himself up as the guarantor of success in the negotiations on the settlement
    of the Cyprus problem.</p>
  <p align="justify">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; His main rival,
    Mr Tassos Papadopoulos (DIKO, Democratic Party), had often criticised the
    government for its stances in the negotiations with the Turkish Cypriots.
    For their part, the representatives of the Turkish Cypriot community had
    indicated that they were pessimistic about the prospects for a solution if
    Mr Papadopoulos were elected.</p>
  <p align="justify">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the elections
    of 16 February 2003, Mr Papadopoulos obtained 51.5%, compared with 38.8%
    for Mr Clerides. The new President, who took up office on 1 March 2003, has
    confirmed his intention to ensure the continuity of his predecessor&#146;s
    policy regarding a settlement of the Cyprus issue.</p>
  <p align="justify">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Northern
    part of the island</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Demonstrations
      in favour of reunification</i></p>
  <p align="justify">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Political life in
    the Northern part of the island was characterised in late 2002 and early
    2003 by a series of large-scale demonstrations in favour of the reunification
    of the island and democratic reforms. This campaign was an indication of
    the population&#146;s growing discontent, to which my predecessor, Mr Bársony,
    referred in his report in January 2002.</p>
  <p align="justify">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The demonstrations
    reached a peak in January 2003 with the participation of an estimated 70,000
    people, ie a third of the population. Their organisers, including the opposition
    parties and the NGOs forming the <i>This Country is Ours Platform</i>, demanded
    the acceptance of the Annan Plan, the resignation of the Turkish Cypriot
    leader Rauf Denktash and the holding of early elections.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Opening
      of the &#147;green line&#148; and other initiatives by the Turkish Cypriot
      authorities</i></p>
  <p align="justify">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After the failure
    of the negotiations under the auspices of the Secretary-General of the United
    Nations, and in an effort to contribute to confidence building between the
    two communities, the Turkish Cypriot authorities decided on 21 April 2003
    to permit, under certain conditions, the crossing of the &#147;green line&#148; separating
    the two parts of the island. This step was welcomed by the citizens of the
    two communities and by the entire international community. According to UN
    information, some 2&nbsp;million one-day crossings were recorded between
    23 April and 2 November 2003.</p>
  <p align="justify">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Turkish Cypriot
    authorities also made a series of proposals in April and July 2003 aimed
    at restoring trust between the two communities and providing for the elimination
    of restrictions on trade, transport and international tourism, as well as
    on cultural and sports exchanges; the reopening under United Nations administration
    of Nicosia international airport for use by both parts of the island and
    the beginning of talks on the de-mining of Nicosia and the surrounding area.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Economic
      situation</i></p>
  <p align="justify">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The economy of the
    Northern part of the island continues to pay a high price for the division
    of the island, and the situation of the Turkish Cypriots is constantly deteriorating
    owing to the embargo. The growing gap between the standard of living in the
    two parts is a serious threat to the island&#146;s stability.</p>
  <p align="justify">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The whole of public
    opinion in the Northern part of the island considers that the embargo is
    having absolutely disastrous effects on both the economy and political and
    social life. The opposition parties believe Mr Denktash is the sole beneficiary
    of this because it supports his arguments against the reconciliation of the
    two communities.</p>
  <p align="justify">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The European Commission&#146;s
    recent proposals on easing the restrictions on exports of farm produce from
    the Northern part of the island to the countries of the European Union have
    not yielded any significant results since this produce is still required
    to have a certificate issued by the authorities of the Republic of Cyprus
    and to be exported via a port in the South.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Elections
      in the Northern part of the island</i> <i>(14 December 2003)</i></p>
  <p align="justify">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The elections to
    the &#147;parliament&#148; planned for 14 December 2003 are considered a
    key test for the leaders of the Turkish Cypriot community. Mr Denktash is
    using them to try to gain approval for his position vis-ŕ-vis the Greek Cypriots
    and the United Nations as far as the rejection of the Annan Plan is concerned.
    The opposition parties in favour of settling the Cyprus problem on the basis
    of this plan and of the reunited island&#146;s accession to the EU hope their
    success in the elections might make it possible to relieve Mr Denktash of
    his position as chief negotiator for the Turkish Cypriot community.</p>
  <p align="justify">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; According to statements
    by certain representatives of the opposition, the Turkish Cypriot authorities,
    fearing rejection of their stance in the elections, are in the process of
    granting &#147;citizenship&#148; and the right to vote to large numbers of
    immigrants from Turkey, which would affect the composition of the electorate.
    In this context, Mr Akinci, the leader of the &#147;Peace and Democracy Movement&#148; has
    asked for the Council of Europe to organise a census of the population in
    the two parts of Cyprus without delay, as the Assembly proposed in Recommendations <a href="../../AdoptedText/TA92/erec1197.htm">1197</a> (1992)
    and <a href="../../AdoptedText/TA03/EREC1608.htm">1608</a> (2003).</p>
  <p align="justify">24.bis&nbsp;&nbsp; As Rapporteur I believe that the outcome
    of these elections is of great importance for the future of Cyprus. They
    must be held in accordance with international standards for free and fair
    elections, and provide for the Turkish Cypriot community an opportunity to
    express its genuine will. It is even more important that Turkish Cypriot
    leaders respect that will.</p>
  <p align="justify"><b><span lang="FR">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International
        context</span></b></p>
  <p align="justify"><span lang="FR">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EU
      enlargement</span></p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> The
      European Union&#146;s position on a Cyprus settlement</i></p>
  <p align="justify">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Throughout the enlargement
    process, the European Union has declared its support for the United Nations&#146; efforts
    to settle the Cyprus problem and has said it would prefer to reach a settlement
    before enlargement.</p>
  <p align="justify">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However, at the
    Helsinki European Council (December 1999), the EU declared that a political
    settlement in Cyprus would facilitate its accession but was not a precondition.</p>
  <p align="justify">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the same time,
    in view of the misgivings and, indeed, the hostility of the Turkish Cypriot
    administration to EU enlargement before the Cyprus problem is solved, the
    EU decision-makers clearly stated at the Seville Summit (June 2002) that
    the Union, with its <i>acquis communautaire</i>, would never be an obstacle
    to a political solution and would take into consideration any agreement reached
    by the two parts in the context of a political settlement.</p>
  <p align="justify">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The accession negotiations
    with the Republic of Cyprus, which were opened in 1998, ended on 13 December
    2002 and the accession treaty was signed on 16 April 2003. Cyprus will join
    the European Union on 1 May 2004, after ratification of the accession treaty.</p>
  <p align="justify">29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In its report on
    the accession of Cyprus, the European Commission said it &#147;strongly believes
    that a solution to the Cyprus problem can still be found before 1 May 2004
    in order to allow the accession of a united Cyprus. However, in case a comprehensive
    settlement of the Cyprus problem is not reached before the date of accession,
    Protocol No 10 annexed to the Accession Treaty envisages the suspension of
    the <i>acquis </i>in the areas of the country which are not under the effective
    control of the Government of Cyprus&#148;.</p>
  <p align="justify">30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The European Union
    also said it was ready to make a substantial financial contribution to support
    the development of the northern part of the reunited island.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Positions
      of the Turkish Cypriot community</i></p>
  <p align="justify">31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The traditional
    leaders of the Turkish Cypriot community, especially Mr Denktash, have long
    been openly hostile to enlargement. Their position, based on the 1960 treaties
    and the Cyprus Constitution and supported by Turkey, was that Cyprus&#146; accession
    to the European Union would be illegal unless and until Turkey was a member
    of the Union and the Turkish Cypriots had accepted it. My predecessor, Mr
    Bársony, explained this position in detail in his report (<a href="../doc02/EDOC9302.htm">Doc.
    9302 rev.</a>, para. 53).</p>
  <p align="justify">32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However, this stance
    underwent an important change in December 2001, when Mr Denktash took note
    of the EU&#146;s statement that it would take into consideration the terms
    of a political settlement and declared that the Turkish Cypriot side would
    be in favour of the accession of a future Cyprus reunited in the context
    of a settlement, subject to the maintenance of the balance between Turkey
    and Greece established by the 1960 Cyprus treaties.</p>
  <p align="justify">33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nevertheless, in
    the opinion of the Secretary-General of the United Nations, &#147;(Mr Denktash)
    seemed to perceive the approaching date of European Union accession and the
    European Union&#146;s strong preference for welcoming a united Cyprus not
    as an opportunity to achieve a settlement on a favourable basis that would
    pave the way for Turkey&#146;s aspirations regarding the European Union,
    but as a trap and a threat&#148;.</p>
  <p align="justify">34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Most of the political
    opposition forces support the accession of a reunited Cyprus to the European
    Union. According to some surveys, this view is shared by a big majority (up
    to 90% according to some sources) of the population in the northern part
    of the island.</p>
  <p align="justify">35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The EU has launched
    a campaign in the Northern part of the island to inform the population about
    the EU. In March 2002, Commissioner Verheugen opened an information centre
    at the offices of the Turkish Cypriot Chamber of Commerce.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Turkey&#146;s
      position and its European prospects</i></p>
  <p align="justify">36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turkey is a key
    player both <i>de jure</i> (as a guarantor power under the 1960 treaties)
    and <i>de facto</i> in the settlement process.</p>
  <p align="justify">37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It remains the only
    state to have recognised the &#147;TurkishRepublic of Northern Cyprus&#148; proclaimed
    in 1983 and to guarantee its existence. For this reason, the Turkish authorities
    have real leverage with regard to the leaders of the Turkish Cypriot community.
    Moreover, the European Court of Human Rights has ruled that Turkey is responsible
    for the acts of the administration in the northern part of Cyprus<sup><a href="#_ftn1" name="_ftnref1" title>[1]</a></sup>.</p>
  <p align="justify">38.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the same time,
    the Cyprus problem continues to occupy an important position in Turkey&#146;s
    strategic options.</p>
  <p align="justify">39.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the one hand,
    Turkey has kept its troops in Northern part of the island since its military
    intervention in 1974, and the Turkish military authorities continue to claim
    that their presence on the island is of strategic importance.</p>
  <p align="justify">40.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the other hand,
    by joining the Council of Europe and declaring its intention to join the
    European Union, Turkey clearly made a choice in favour of European integration.
    In view of the positive development of its relations with Greece, the prospects
    for Turkey to join the EU in a foreseeable future now seem realistic and
    will be even better if it is able to contribute to a Cyprus settlement.</p>
  <p align="justify">41.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However, these prospects
    risk being seriously jeopardised if the Cyprus issue is not resolved before
    enlargement and if the Republic of Cyprus, having joined the EU, is hostile
    to Turkey&#146;s membership.</p>
  <p align="justify">42.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In this context,
    the new majority in Turkey following the November 2002 general elections
    seems to have adopted a more open-minded and constructive approach to the
    Cyprus issue than its predecessors by making more overtures to the Republic
    of Cyprus and reducing its support for the traditional leaders of the Turkish
    Cypriot community.</p>
  <p align="justify">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Negotiations
    and the Annan Plan</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Direct
      negotiations</i></p>
  <p align="justify">43.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct negotiations
    between Mr Clerides and Mr Denktash, in the presence of the Representative
    of the Secretary-General of the United Nations, began on 16 January 2002
    in Nicosia and continued, with a few interruptions, until February 2003.</p>
  <p align="justify">44.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The initial positions
    of the two sides differed fundamentally from one another on all the settlement
    principles.</p>
  <p align="justify">45.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Referring to the
    Security Council resolutions, Mr Clerides favoured a solution based on a
    Cypriot state with a single sovereignty, a single international personality
    and a single citizenship and made up of two politically equal communities
    within a bi-communal and bi-zonal federation.</p>
  <p align="justify">46.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr Denktash favoured
    a solution in accordance with what he regarded were the realities and would
    consist of a Confederation of Cyprus founded by two pre-existing sovereign
    states. This confederation would have a single international personality
    but would be sovereign only to the extent that sovereignty was given to it
    by the founding states. Mr Denktash then put the term &#147;confederation&#148; to
    one side, preferring to speak of a &#147;PartnershipState of Cyprus&#148;.</p>
  <p align="justify">47.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The views of the
    two delegations were just as far apart on such key issues as the structure
    and powers of the future central state, security aspects, territorial arrangements,
    the principles concerning the resettlement of displaced persons, etc.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Annan
      Plan</i></p>
  <p align="justify">48.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; When it became clear
    that the two parties would not be able to reach agreement, the Secretary-General
    of the United Nations presented a plan entitled &#148;Basis for a Comprehensive
    Settlement of the Cyprus Problem&#148; on 11 November 2002. The two sides
    were to undertake to complete the negotiations on the basis of the plan&#146;s
    substantive proposals before 28 February 2003 and then hold simultaneous
    referenda to approve the plan on 30 March 2003,. This would have enabled
    a reunited Cyprus to sign the Treaty of Accession to the European Union on
    16 April 2003.</p>
  <p align="justify">49.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Rapporteur does
    not intend to present a detailed synopsis of the Annan Plan here. This document
    has been published and is available from a number of sources, including the
    internet. In the Rapporteur&#146;s opinion, the Annan Plan constitutes the
    best genuine basis for a compromise between all sides involved in Cyprus
    problem and contains viable proposals based on experience and international
    guarantees aimed at creating a &#147;United Republic of Cyprus&#148; with
    a federal government and made up of two &#147;constituent states&#148;. The
    plan includes detailed proposals for all aspects of a settlement to the Cyprus
    problem and for the structure and functioning of the future united state.</p>
  <p align="justify">50.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain elements
    of the initial plan seemed to give rise to a few questions regarding compatibility
    with the Council of Europe&#146;s principles and basic texts and with the
    case law of the European Court of Human Rights. However, most of these questions
    were resolved in the course of the two revisions of the Annan Plan.</p>
  <p align="justify">51.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Following the two
    sides&#146; reactions concerning the substance of the document, Mr Annan
    presented a second version of the plan on 10 December 2002. Finally, after
    intensive negotiations with the two sides and with senior Greek and Turkish
    officials, Mr Annan presented the third and last version of his plan on 26
    February 2003 and invited Mr Papadopoulos (elected on 16 February 2003 to
    succeed Mr Clerides) and Mr Denktash to a meeting in The Hague on 10 March
    2003.</p>
  <p align="justify">52.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr Papadopoulos
    informed the Secretary-General of the United Nations that he was prepared
    to undertake to submit the plan to the referendum on condition that the population
    were aware of the issue on which they were to take a decision. Accordingly,
    he wanted to be sure that the problems concerning federal legislation and
    the constitutions of the constituent states would be resolved. He stressed
    that Greece and Turkey had to accept the plan&#146;s proposals with regard
    to security and undertake to implement them.</p>
  <p align="justify">53.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the other hand,
    Mr Denktash stated that he could not submit the plan to a referendum owing
    to fundamental objections concerning certain key aspects. He considered that
    new negotiations were only likely to be successful if they began from a new
    starting point and if the parties agreed on basic principles. He added that
    Turkey was in any case not in a position to sign the statement requested
    of the guarantors.</p>
  <p align="justify">54.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turkey confirmed
    that, for constitutional reasons, it could not enter into the commitment
    demanded of the guarantor under the Annan Plan. For his part, Mr Papadopoulos
    maintained that such a commitment was necessary before it would be possible
    to organise the referenda.</p>
  <p align="justify">55.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr Denktash also
    turned down Mr Annan&#146;s proposals for saving the process and rejected
    his suggestion that the deadline for finishing the negotiations be put back
    to 28 March.</p>
  <p align="justify">56.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a consequence,
    the Secretary-General of the United Nations announced that the process was
    deadlocked and that he had no intention of proposing fresh initiatives, pointing
    out that his plan was still on the table and that the Greek and Turkish Cypriots
    could take it up again at any time and start new negotiations if they wished
    to do so.</p>
  <p align="justify">57.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In his report to
    the Security Council on 1 April 2002, Mr Annan said that, while the two sides
    in Cyprus bore a share of the blame for the failure of the various stages
    and for the missed opportunities in the process of finding settlement opened
    in 1999, it was Mr Denktash, the Turkish Cypriot leader, who bore prime responsibility
    for the failure of the latest effort.</p>
  <p align="justify"><b>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent
      Council of Europe activities relating to Cyprus</b></p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Visit
      by the Secretary General</i></p>
  <p align="justify">58.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In January 2003,
    Mr Walter Schwimmer, Secretary General of the Council of Europe, undertook
    an official visit to the Republic of Cyprus to offer his support for Mr Annan&#146;s
    draft plan for solving the Cyprus problem while ensuring respect in a reunited
    Cyprus for the human rights guaranteed by the Council of Europe&#146;s fundamental
    texts.</p>
  <p align="justify">59.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the context of
    a future settlement, the Council of Europe&#146;s experience could be particularly
    useful for the establishment of confidence-building measures between the
    two Cypriot communities and with regard to the media, the teaching of history,
    language learning, the protection of the cultural heritage and the strengthening
    of civil society.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Dialogue
      between Cypriot political leaders</i></p>
  <p align="justify">60.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the invitation
    of the Secretary General, the leaders of the political parties of the two
    Cypriot communities met in Strasbourg on 7 July 2003 to discuss the Council
    of Europe&#146;s contribution to a Cyprus settlement, especially with regard
    to the role of civil society, youth initiatives and the teaching of history.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Recent
      decisions by the Committee of Ministers on the subject of Cyprus</i></p>
  <p align="justify">61.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On 12 November 2003,
    the Committee of Ministers adopted its 4th Interim Resolution concerning
    the judgment of the European Court of Human Rights in the case of Loizidou
    v. Turkey. Having established that Turkey had not met its obligation to comply
    with this judgment, the Committee of Ministers gave the Turkish authorities
    one week to do so. On 19 November, this deadline was extended by a further
    week. On 2 December, the Committee of Ministers announced that Turkey executed
    the judgment of 28 July 1998 in the Loizidou case by paying to Mrs Titina
    Loizidou the sum which had been awarded to her by the European Court of Human
    Rights in respect of just satisfaction.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Recent
      decisions of the European Court of Human Rights</i></p>
  <p align="justify">62.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In response to an
    application declared admissible by the European Court of Human Rights, a
    law adopted in the Republic of Cyprus In May 2002 abolished restrictions
    on the right to marry for Turkish Cypriots living in the southern part of
    the island.</p>
  <p align="justify">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i> Recent
      Assembly texts</i></p>
  <p align="justify">63.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Assembly adopted
    two texts on Cyprus in June 2003. <a href="../../AdoptedText/TA03/EREC1608.htm">Recommendation
    1608</a> (2003) on Colonisation by Turkish settlers of the occupied part
    of Cyprus, drawn up by the Committee on Migration, Refugees and Demography
    (Rapporteur Mr Laakso), concluded that the island&#146;s demographic structure
    had constantly changed since Cyprus&#146; de facto partition in 1974 as a
    result of the deliberate policies of the Turkish Cypriot administration and
    Turkey, and condemned the policy of &quot;naturalisation&quot; designed to
    encourage new arrivals and introduced by the Turkish Cypriot administration
    with the full support of the Turkish Government.</p>
  <p align="justify">64.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In <a href="../../AdoptedText/TA03/ERES1333.htm">Resolution
      1333</a> (2003) on the Rights and fundamental freedoms of Greek Cypriots
      and Maronites living in the northern part of Cyprus, drawn up by the Committee
      on Legal Affairs and Human Rights (Rapporteur Mr Marty), the Assembly stated
      it was &#147;extremely concerned by the status imposed upon the Greek Cypriot
      and Maronite communities that have remained north of the demarcation line
      and by the resulting violations of human rights. It called on &#147;all
      the representatives of the civil society of Cyprus, independently of the
      community to which they belong, to do their utmost to bring about a climate
      of mutual understanding, of dialogue and of tolerance between the different
      social, political, religious, cultural and linguistic constituents present
      on the island, who, as history has shown, are perfectly capable of living
      together in peace and harmony&#148;.</p>
  <p align="justify"><b>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conclusions</b></p>
  <p align="justify">65.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The failure of the
    negotiations on a Cyprus settlement under the auspices of the Secretary-General
    of the United Nations was met with considerable disappointment by both the
    international community and a large part of the Turkish Cypriot community.</p>
  <p align="justify">66.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EU enlargement on
    1 May 2004 threatens to close the &#147;window of opportunity&#148; for dealing
    with the Cyprus issue. In the new situation that will ensue, there will be
    winners &#150; real or false - and losers.</p>
  <p align="justify">67.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Among the &#147;winners&#148;,
    there will be those who have adapted to the division of Cyprus - and are
    benefiting from it. It remains to be seen whether this will be a lasting
    victory.</p>
  <p align="justify">68.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Among the real losers,
    the first will be the people of Cyprus as a whole, which will remain divided.</p>
  <p align="justify">69.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turkey&#146;s European
    prospects will be more uncertain, as will the stability of the Aegean Sea
    region, and this will doubtless have an impact on the whole of South-East
    Europe.</p>
  <p align="justify">70.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is not yet too
    late to prevent this scenario, but this requires the political leaders of
    the two Cypriot communities to be fully aware of their responsibilities to
    their people and to act in the interests of their future. They must make
    new and substantial efforts to reach a compromise acceptable to both sides.</p>
  <p align="justify">71.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It seems unlikely
    that a new draft settlement plan can be quickly drawn up. The Annan Plan,
    modified if necessary, must therefore remain the basis for a settlement of
    the Cyprus problem.</p>
  <p align="justify">72.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Turkey&#146;s positive
    commitment remains key to the success of efforts to persuade the Turkish
    Cypriots to accept a compromise and reach a settlement.</p>
  <p align="justify">73.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Both Greece and
    the European Union as a whole must continue to encourage the authorities
    of the Republic of Cyprus, which have said they are ready to compromise,
    to continue to pursue their open-minded approach.</p>
  <p align="justify">74.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Council of Europe
    must increase its activities with the aim of restoring confidence and dialogue
    between the two communities and contributing to the efforts of the Secretary-General
    of the United Nations.</p>
  <hr noshade color="#000000" size="1" align="justify">
  <p align="justify"><i><span lang="EN-US">Reporting Committee: </span></i> <span lang="EN-US">Political
      Affairs Committee</span></p>
  <p align="justify"><i><span lang="EN-US">Reference to committee&nbsp;: </span></i> <span lang="EN-US"><a href="../../AdoptedText/TA02/ERES1267.htm">Resolution
        1267</a> (2002)</span></p>
  <p align="justify"><i><span lang="EN-US">Draft Resolution </span></i> <span lang="EN-US">unanimously
      adopted by the Committee on 8 January 2004</span></p>
  <p align="justify"><i><span lang="EN-US">Draft Recommendation </span></i> <span lang="EN-US">unanimously
      adopted by the Committee on 8 January 2004</span></p>
  <p align="justify"><i>Members of the Committee&nbsp;</i>: <i>Jakic</i> (Chairman),
    Rogozin (Vice-Chairman), Feric-Vac (Vice-Chairperson), Spindelegger (Vice-Chairman),
    Aguiar <i>(alternate: Seyidov),</i> Aliyev, de Aristegi <i> (alternate: Lopez
    Gonzale</i>z), <i>Ates, Atkinson</i>,&nbsp; Azzolini <i>(altenate: Provera),</i> <i>Baná&#154;</i>,
    Berceanu, Bianco, <i>Blankenborg</i>, <i>Van der Brande, Cekuolis</i>, Davern,
    Dreyfus-Schmidt, Druviete, Duivesteijn, Durrieu,&nbsp;Elo, <i>Frey, Glesener</i>,
    Goulet, <i>Gross, Hedrich</i>, Henry, Hörster, <i> Iwinski, Judd</i>, Karpov, <i>Kirilov</i>,
    Klich, Koçi, Kostenko, <i>van der Linden</i>, Lloyd <i>(alternate: Chapman),</i> Loutfi,
    Magnusson, Margelov, Martinez-Casan, Medeiros Ferreira, <i>Mercan</i>, Micunovic, <i>Mignon,
    Mihkelson</i>, Muratovic, Neguta,&nbsp;<i>Nemcova</i>, Nemeth, Oliynyk, <i>Ouzky,</i> Pangalos,
    Petrova-Mitevska, Petursdottir,&nbsp; Pintat Rossel, <i>Pourgourides</i>, <i>Prentice,
    Prica</i>, <i>Prisacaru</i>, <i>de&nbsp;Puig</i>, Pullicino Orlando, Ranieru
    (alternate: de Zulueta), Roth, <i>Severin,</i> Severinsen, Tabajdi, <i> Tekelioglu,
    Torosyan</i>, Tritz <i>(alternate: Bindig),</i> Vakilov <i> (alternate: Mollazade),</i> Volpinari,
    Voulgarakis, Westerberg, Wielowieyski, Wohlwend, Wurm, Yarygina, Zacchera,
    Zhvania, Ziuganov <i>(alternate: Slutzky).</i></p>
  <p align="justify"><i>Ex-officio</i>: Davis, <i>Eörsi, Einarsson, Russell-Johnston</i></p>
  <p align="justify"><i>N.B.&nbsp;: The names of the members who took part in
      the meeting are printed in italics</i></p>
  <p align="justify"><i>Secretariat of the Committee&nbsp;: </i>Mr Perin, Mrs
    Ruotanen, Mr Chevtchenko, Mr Dossow</p>
</blockquote>
<blockquote>
  <hr noshade color="#000000" size="1" align="justify">
  <p align="justify"><a href="#_ftnref1" name="_ftn1" title>[1]</a> In a judgment
    of 10 May 2001, the European Court of Human Rights, highlighting the situation
    between 1974 and 1994, established <i>inter alia</i> that Turkey was obliged
    to guarantee in northern Cyprus all the rights set out in the European Convention
    on Human Rights. The Court found that <i>&quot;having effective overall control
    over northern Cyprus, its (Turkey's) responsibility cannot be confined to
    the acts of its own soldiers or officials in northern Cyprus but must also
    be engaged by virtue of the acts of the local administration which survives
    by virtue of Turkish military and other support&#148;</i>.</p>
</blockquote>
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