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The U.S. and Cyprus: Back to the Future –

Reflections on Progress and Potential

Remarks by Ambassador Michael Klosson
Cyprus American Business Association
June 24, 2005

It’s a pleasure to have this opportunity to meet with the Cyprus American Business Association (CyABA) as I conclude my assignment as the American Ambassador. Since CyABA was the venue for my first speech, it is fitting that CyABA, which has been such a good partner in developing our commercial relationship, be the venue for my last as well.

It seems like only yesterday that I arrived at Larnaca and spoke to you shortly thereafter. At that point, I knew nothing about “meze,” “siga siga/yavas, yavas,” coffee “sadeh/sketo,” not to mention “asfyktiki piesi” (asphyxiating pressure). I’ve learned a lot since then, and wish to thank many of you here for educating me about the beauties, realities, and potential of this island.

When we first got together three years ago, I spoke about my goals for the U.S. relationship with Cyprus, our hope for a comprehensive solution and my pledge of active support for the UN effort. It has been a momentous three years.

Today I want to reflect on that period and again discuss the future -- lessons those years hold for the way forward in the U.S. relationship with Cyprus and the path toward a comprehensive solution.

Transatlantic Partnership

Much has changed over the past three years, much of it for the better. First, Cyprus joined the European Union with all the opportunities and responsibilities that membership entailed. The U.S., long a champion of Cyprus’s accession, applauded this accomplishment, although like all we had hoped it would accede as a unified country.

By joining the European Union, Cyprus also joined the transatlantic partnership between the United States and Europe. Our relationship, as I have said many times, was fundamentally transformed. From our perspective, it is no longer just a relationship with a small island with difficulties in the eastern Mediterranean. A significant, new dimension was added May 1, 2004: Now a member state of our most significant partner on the world stage, Cyprus needs to be an informed and responsible player with us and our other European partners on regional and global issues.

The overall transatlantic partnership is moving forward with renewed vigor. A corner has been turned. “When Europe and America stand together,” President Bush said during his February visit to Brussels, “no problem can stand against us.” We have been through a difficult period, but Americans and Europeans are now working together on our common agenda.

I hope this sense of common transatlantic mission will increasingly take hold here. It is going to take more time, I suspect, for all to realize the full scope of what joining the European Union and the transatlantic partnership means, including the demands on Cyprus to contribute on international issues. We have seen, nevertheless, an impressive record of growing cooperation between the United States and the Republic of Cyprus in the areas I set out when I spoke to you in 2002.

We stand shoulder to shoulder in the war on terrorism, and I very much appreciate the excellent cooperation the Embassy received from the Cypriot police on that front. Thank you. There is more. Together we have enhanced Cyprus’s ability to protect its borders, deter terrorists, prepare for contingencies and combat the proliferation of weapons of mass destruction. In concrete terms, that means we helped Cyprus establish and train an anti-smuggling customs team with radiation portal monitors. Cypriot authorities are now better able to target suspect shipments. We held a major inter-agency training session last year to help first responders organize themselves in the event of a chemical, biological or radiological incident. Just recently we conducted additional training in hazardous material handling. Cyprus has endorsed the principles of the multinational Proliferation Security Initiative, and this past April we concluded a mutual ship-boarding agreement – the first with an EU member state – that I hope will be signed in the near future. This is something President Papadopoulos took a personal interest in accomplishing, which I very much welcome. In the case of Iraq, Cyprus approved over-flight rights, pledged a donation at the September 2003 donors’ conference and participated in this week’s U.S.-EU conference on Iraq.

In other areas, we have consulted on common objectives and worked in parallel. Both the United States and Cyprus, for example, were quick to respond to the tsunami catastrophe that struck Asia earlier this year. We have worked to build conditions for peace in the Middle East through assistance to the Palestinian Authority. We have also made progress in combating trafficking in persons.

In the economic field, we have seen progress in our commercial ties – new franchises have opened, for example -- although I would like to see more business interaction and more American companies winning government tenders. We have strengthened cooperation against money laundering, as underscored by the recent memorandum of understanding concluded between the Department of Treasury and MOKAS. We have also seen increased attention to protection of intellectual property rights through formation of a dedicated police unit and increased seizures, although in this area too there is much work to be done, especially regarding pirated software.

Finally, during my tenure we have strengthened our relations at the people-to-people level. For 43 years, Americans and Cypriots have shared experiences, education, traditions and culture through organized exchanges. In fact, the United States Government has provided more direct funding than any other foreign government (excluding Greece and Turkey) for the education of Cypriots. The Fulbright program and the Cyprus America Scholarship Program have sponsored nearly 2,400 Cypriots for academic study in the United States. In addition, about 3,700 Cypriots have participated in various workshops, seminars and youth camp programs. Those exchanges -- supported by an almost $5 million annual investment by the United States as well as by contributions from the Republic of Cyprus, $660,000 in 2003 -- have enriched both societies. We now also have one American corner on the island, which will help Cypriots to do Internet research and otherwise learn about the United States, and I hope more will follow.

At all levels there is much more that unites Americans and Cypriots than divides us. Our cooperation is deepening, constantly. On most issues we agree; on some we do not. And where we disagree, we should keep things in perspective and address our differences on their merits. When language spills over into invective and baseless accusation, a line is crossed that is fundamentally damaging to our relationship. After all we share the same commitment to democratic values, free market principles and reunification. Our common membership in the transatlantic partnership provides a solid foundation on which we must build further.

There remains much untapped potential for cooperation, which I hope can be realized as Cyprus hits its stride in the European Union. That potential, however, cannot and should not be subjected to one-issue litmus tests. We have never looked at the relationship in those terms. Now that Cyprus has new responsibilities as a member of the European Union and as a transatlantic partner, one issue should never limit what we can and must do together to make the world a more secure, democratic and prosperous place for our citizens. Mature relationships are never black and white. They accommodate both agreement and disagreement.

I look forward to the day when Cyprus will be able to reach its full potential as a strong, active partner within the EU, with the U.S. and in the region. I look forward to the day when its energies are not focused inward on its division. I look forward to the day when the opportunities it faces and responsibilities it must shoulder can be shared by all Cypriots alike through a comprehensive settlement. For now, however, the island’s division unfortunately consumes most of the energy of Cyprus’s talented leaders.

The question is not just what the world can do for Cyprus. Now that Cyprus is a member of the European Union and transatlantic partnership, the question, to paraphrase an American president, is also what you can do to carry out those new responsibilities. By doing so, you will promote the security and prosperity of Cypriots.

Cyprus Problem

That said, we all know there is a problem here, which is long overdue for a solution. Here too, I would say that much has changed, much of it for the better. Look at what has happened since 2002:

• First, Turkish Cypriots mounted unprecedented demonstrations against Rauf Denktash’s stance. They demonstrated in favor of joining Europe and the UN settlement plan. Remember how those displays of “people power” captured your imagination as well as ours! I was there and you could feel the ground shifting under the old leadership. Through four significant votes between 2003 and 2005, Turkish Cypriots jettisoned rejectionist-type thinking, embraced unification and anchored new, pro-settlement leadership in the north. Rauf Denktash is out of office, succeeded by Mr. Talat, a Turkish Cypriot leader who has extended his hand to Greek Cypriots and regularly calls for unification, not separation.

• Second, the UN prepared the most comprehensive settlement plan ever that now provides the basis for a renewed effort when the conditions are deemed ripe. In this process, Greek and Turkish Cypriots worked well together in technical groups to design the implementing details.

• Third, there have been over 7 million crossings of the Green Line since 2003 without any major inter-ethnic incidents. Orthodox liturgies have been held in several churches in the north. Large-scale military exercises on both sides were cancelled for the past three years. The security situation remains militarily stable and increasingly benign, with EU membership giving Greek Cypriots a much greater sense of security than before.

• Fourth, for the first time in thirty years, trade has begun across the Green Line in both directions – just a trickle so far, but nevertheless a start. Turkish Cypriots participated for the first time in thirty years in the Cyprus International Fair, and Greek Cypriot authorities were very supportive of that.
  
• Finally, Prime Minister Erdogan’s Government declared that the current non-solution is not a solution, a position he recently reaffirmed in the U.S. Until 2002, various Turkish governments considered the problem resolved. Last December, the EU, with Cyprus’s concurrence, set a date to begin accession negotiations with Turkey.

On the other hand, we have to face the fact that an overwhelming majority of Greek Cypriots rejected the UN settlement plan last year. Americans like Europeans were disappointed. Americans like Europeans, however, also accepted the result. The question is: Where do we go from here?

New Mindset

From an American perspective, let me emphasize the following: The status quo is as unacceptable to Americans as it is to Cypriots on both sides, and we understand it is not sustainable. The U.S. does not support the island’s continued division. We do not support its permanent partition. This is U.S. policy.

The 1974 coup and Turkey’s military intervention were disastrous for both communities. The resulting circumstances, such as the large presence of foreign military forces on the island, are not an acceptable long-term solution.

So, Americans and Cypriots are agreed. We must work toward a comprehensive settlement that provides for the island’s unification. Easier said than done, for sure. A new settlement effort, if it is to succeed, must be informed by a new mindset that the leaders – I repeat, leaders -- should seek to cultivate. Europe after World War II was not unified by one-upmanship. European integration did not progress through the triumph of one country’s interests over another’s. Walls came down, divisions were bridged and differences resolved because leaders led with a vision of a common future. They emphasized – and the people understood this from the horrors of war – the importance of cooperation over conflict, compromise over confrontation, and reconciliation over provocation. Leaders looked forward to a common future, not back to a divisive past.

Why can’t that be done in Cyprus? Why not now? Does focusing on what divides the parties, or on who is to blame move things forward? Does antagonistic rhetoric today create better partners tomorrow in a unified Cyprus? Fanning suspicions merely reinforces division.

Now that Cyprus is part of the European Union, why not take a page out of Europe’s book. The spirit that integrated Europe needs to displace the corrosive, zero-sum mindset that infuses so much discourse here. Cypriots on both sides, for example, regularly tell me they have more in common with each other than with their mainland counterparts. One would never know that from the political debate, and most youth have not experienced it first-hand. Why not build on those common points and work toward a solution that also protects each community’s identity in a common arrangement? That was certainly the spirit in evidence at the recent commemoration of the Kataklysmos in Famagusta that I attended.

There is much talk about preparing the conditions necessary for a successful settlement initiative. Great. But clearing away old ways of thinking must also be part of the task. For too long, each side has jockeyed for advantage and assessed developments solely through the lens that what hurts the other side must necessarily benefit its side. Where the international community sees win-win outcomes, the parties more often than not see “conspiracies” and “traps.” Seeking to put the other side at a disadvantage neither fosters trust nor brings parties closer to a settlement. That way of thinking, on the contrary, perpetuates division. It must yield to acknowledgement on both sides that no solution will be workable unless both sides have strong stakes in making it work. In other words, a solution cannot be imposed.

This zero-sum mindset is bound up with past history and decades of separation that reinforced perceptions that one side is trying to dominate while the other side is trying to separate. Despite changes on the ground over the past two years and increased contact between individuals on both sides, this mistrust of intentions remains potent, even though foreign diplomats such as myself, who have opportunities for much greater contact with both sides, can see real attitudinal shifts. Through intensified contact and dialogue, both sides need to confront these anxieties and convince the other about their goodwill if serious settlement efforts are to get underway and bear fruit.

Good will means seeking to find common ground and working to build mutual confidence. Good will requires that leaders make clear their willingness to compromise and that the people be ready to accept painful compromises and bitter arrangements. Recent referenda in Europe demonstrate why preparation of public opinion has to go hand in hand with serious negotiations among the leaders to strike realistic compromises.

The Way Forward

The question before us is how to encourage at least half of the Greek Cypriots who rejected last year’s UN plan to say “yes” in a new settlement effort while retaining the support of a majority of Turkish Cypriots. That is a tall order, but not an impossible one. We have watched Greek Cypriot party leaders begin to come to grips with what they believe is required to resume progress.

In any renewed effort, it is reasonable for each side to expect satisfaction of its key concerns -- not every concern, but realistic and defined key ones. Changes to the settlement plan can only be achieved through genuine negotiation, through give and take by both sides at the table. The international community, through the UN, can help facilitate the process, provide ideas, and even offer assurances. Only the leaders, however, can make the necessary compromises to strike the deal and then work to achieve majority support. A political settlement, as the Russian Foreign Minister recently said, must come from the island's two communities, not be imposed from outside.

As you gather from my remarks, I am not one who has concluded, as a growing number of skeptics across the island and abroad have, that a Cyprus settlement is a mountain just too high to climb. That said, the failure of nine UN initiatives over many decades is a sobering reminder of its challenges.

Despite the numerous positive developments I noted earlier, everyone is conscious that time does not work in favor of a settlement. The passage of time creates new complications. The number of Cypriots, for example, who have first-hand experience of Cyprus’s multicultural heritage continues to decline as the population ages.

Developments in the property sector threaten to set back gains achieved over the past two years. Many Greek Cypriot property owners understandably view the construction boom in the north as pouring concrete over their hopes for returning. On the other hand, as the UN Secretary General wrote, “The prospect of an increase of litigation in property cases on either side poses a serious threat to people-to-people relationships and to the reconciliation process.” Individuals have their rights, but any reasonable person will also acknowledge that communities cannot litigate a comprehensive settlement. It has to be negotiated politically and mutually accepted. Squaring that circle will grow seriously more complicated if litigation initiated by both sides expands, arrest warrants proliferate and acrimony intensifies.

So, where does that leave us? My conclusions are the following:

First, since a negotiated solution is the objective, there is no substitute for increased contact and intensified dialogue inspired now by the new mindset I discussed earlier. Thousands of Turkish Cypriots working productively in jobs on the Greek Cypriot side or being given medical care under the Republic of Cyprus health plan are welcome developments. Initiatives on the part of individuals, NGOs and political parties to intensify dialogue should be encouraged. Orthodox services in Agias Mamas and St. Barnabas churches signal respect for religious traditions and should be promoted. Expanded trade between the two communities can also help reestablish patterns of day-to-day cooperation that will be vital to the success of a united island.

In U.S.-supported projects and exchanges, both on and off the island, I have witnessed the positive impact of increased contact. The Nicosia Master Plan, which we have long supported, recently opened a jointly staffed Information Center. That was a big step forward for the idea of a unified city and island. Helping those on both sides, who have similar interests and concerns, work together on such practical daily issues as disability, the environment, or English as a second language, also prepares the ground for a successful settlement.

I met not long ago with a group of students from across the island that had spent 5 weeks together in the U.S. Acknowledging their initial indifference to young people from “the other side,” one student confidently told me on their return that they had discovered how much they had in common, established new bonds and “solved the Cyprus problem.” Idealistic? Perhaps, but isn’t that the best way to prepare the ground for a successful settlement initiative? In most cases, increased contact helps reassure the other about imputed intentions and reduces the predisposition, cultivated over the years, to suspect the worst of “the other side.”

Second, only the UN Secretary General’s Good Offices Mission can help the parties agree the arrangements and compromises required for a settlement. I welcome the fact that President Papadopoulos sent an envoy to the UN and that the Secretary General subsequently asked Mr. Prendergast to take the pulse on the island and in the region. We shall see what the Secretary General decides is an appropriate next step. It is my hope that over time the parties will do what is necessary to enable the UNSYG and UN Security Council to judge the time ripe for the settlement process to resume. It is up to the parties – not the outside world – to make that happen by demonstrating realistic and constructive positions. Steps to narrow the gaps would be welcomed. The UN settlement plan remains the best basis and framework for any eventual renewed effort.

Third, both the United States and the European Union have emphasized a determination to put an end to the isolation of Turkish Cypriots and to facilitate reunification by encouraging their economic development. In our new assistance program, we focused these past few months on building business bridges between Greek and Turkish Cypriot businesses, on opening up commerce in both directions across the Green Line and on creating links with American and European markets. We hired a local contractor, for example, who joined retired American business executives to interview almost a hundred firms on each side of the Green Line and promoted successful matchmaking. Such work to deepen economic integration on the island and to multiply the whole island’s economic links with markets abroad needs to be intensified. Reducing economic disparities between the two sides will enhance, not harm, the prospects for reunification. Our efforts over time should also help the Turkish Cypriot community better shoulder its share of the economic costs of a settlement, so the burden does not fall disproportionately on Greek Cypriots.

In conclusion, the two words most often associated with the word “Cyprus” are “problem” and “hope” -- the past and the future, if you will. My wish for all here today is to leave the past behind and bring the future forward. My wish is that Cypriots will be able to translate their hopes into the reality of a lasting settlement and banish the term “Cyprus problem” from our collective vocabulary. Leaders of goodwill with realistic aims and a common vision can make that happen.

Let this finally be a conflict resolved. You will find the United States a good partner for all – I repeat all -- Cypriots in such an effort.