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The United States and Cyprus:
Common Agenda and Prospects for a Settlement

Remarks by Ambassador Michael Klosson

International Coordinating Committee for Justice for Cyprus (P.S.E.K.A.),

January 12, 2004

Astoria, New York

I’m pleased to be with you this evening.  My visit is something that Phil Christopher and I have been discussing ever since my confirmation as Ambassador. 

As Phil and some others here will recall, my first formal act as ambassador upon arriving on the island two summers ago was to attend a reception at my residence in honor of the American delegates to PSEKA.  I say “attend” rather than “host” since I came directly from the airport, and had not even toured my house, much less presented my credentials to then President Clerides.   But I was delighted to have PSEKA as my first guests, and to enjoy their company again last summer when I did “host” them at the residence.  I look forward to seeing many of you in Nicosia in the months ahead.

Let me say at the outset we appreciate the role PSEKA plays in linking Cyprus, the Greek Cypriot American diaspora and the U.S.  Your active communication and advocacy are signs of the vitality of American democracy in our foreign policy arena.  It makes me and my Embassy colleagues feel good when we know there are many people back home interested in what we are doing.  Please keep it up. 

My time in Cyprus so far has been a momentous, an observation you probably hear from every visiting American ambassador, but which happens also to be true.  International interest in the issue remains so high. 

What do you see if you look back just over the sixteen months of my assignment?  You see:  the roller coaster ride in the UN-hosted settlement effort; the successful culmination of Cyprus’s drive to join the European Union; the tremendous, positive boost in interaction between Greek and Turkish Cypriots now able to cross the buffer zone in huge numbers; and political ferment among Turkish Cypriots leading to strong, new voices calling for a settlement.

Much of the embassy’s effort is focused on resolving the “Cyprus Problem,” but there is a lot more going on in our relations with Cyprus than just that.  I would like to begin tonight by sharing with you a perspective on Cyprus different from what you normally encounter. 

Our relationship with Cyprus is gaining in significance.  By joining the European Union, Cyprus joins not only Europe, but also the transatlantic partnership.  It has stepped on to a broad, new playing field, acquiring new opportunities but also new responsibilities.  Just as Cyprus is receiving more attention from the United States and Europe on a broader range of issues, we too expect more engagement by Cyprus on those same issues. 

We have four major priorities in our relationship with Cyprus. 

Anti-Terrorism

First and foremost is cooperation in the war on terrorism and efforts to deny weapons of mass destruction to dangerous groups and countries.  Given the island’s strategic location in the eastern Mediterranean, we welcome Cyprus’s active involvement in this international effort.  We have enjoyed its support in many ways.  Operation Iraqi Freedom was controversial in Cyprus, as it was with public opinion in much of Europe, but the government did approve over flight rights for U.S. military aircraft. And this fall, the Cypriot delegation to the Madrid donors’ conference for Iraq made a helpful pledge of assistance, which was substantial when measured by Cyprus’ past contributions. 

We also look forward to strengthening our concrete cooperation with Cyprus in joint efforts to thwart the spread of weapons of mass destruction.   With one of the largest merchant fleets in the world under Cypriot registry, we believe there is a very positive role for Cyrus to play in counter-proliferation efforts.  So, together with our international partners in President Bush’s Proliferation Security Initiative, we have opened a dialogue with Nicosia on how it can assist this vital campaign. 

Law enforcement Cooperation

           We have a solid record of cooperation in the field of law enforcement cooperation.   One good example took place in December when cooperation between the Greek police, the Cypriot police and American authorities took down a U.S. dollar counterfeiting operation in Greece.   Another potential area of cooperation involves trafficking in persons, a scourge that affects many nations, including the United States and Cyprus.  The Cypriot Ombudsman issued a report in November recommending additional measures to combat traffickers’ abuse of Cyprus as a destination.  The concerned ministers have held a series of meetings to develop a national strategy.  In my meetings with these ministers, I have offered any U.S. expertise and assistance that Cypriot authorities might consider helpful. 

Foreign Policy Cooperation

            Our third priority is cooperation on foreign policy issues.  Cyprus has become more important to us because it now has a voice in EU councils and soon will have a vote.  The U.S. Government sent a team of senior officials last spring to the other 9 new accession states to discuss how U.S.-EU relations operate.  We now engage GOC officials on many new issues.

Economics and trade promotion

                Last but by no means least are our excellent commercial relations, which the embassy is working to make even better.  If you need help in working the market in Cyprus, the Embassy’s door is always open and we are at your service.  Just call.
 

In 2002, the U.S. exported $202.8 million worth of goods to Cyprus, to the United States, making the U.S. Cyprus’s seventh largest supplier. Thirty-five American owned businesses operate on the island, employing hundreds of Cypriots. Just last month Alteera – an international consortium that includes Bechtel International – won the status of preferred bidder for Cyprus’s largest public tender ever -- the construction and operation of two international aviation terminals in Paphos and Larnaca.  Assuming negotiations between Alteera and the Government of Cyprus result in a final contract, this will take our commercial ties to a new level.   This sort of foreign direct investment is in addition to the hundreds of U.S. brands that are available in the local economy.  Just last month, Starbucks opened its doors in Nicosia.  
 

The bottom line is that by accepting the EU acquis, Cyprus has liberalized its market place, and America has been a strong beneficiary of this. It’s a win-win situation -- by lowering non-tariff barriers to trade, Cyprus realizes powerful economic growth as well as the diversification of its markets.   Of course, while membership has its privileges, it also has its challenges.  By joining the EU, Cyprus will now be part of headline grabbing debates on steel, biotechnology, farm subsidies and competition policy. 

Cyprus Settlement

            Now to the issue which defines much of our work -- a comprehensive settlement of the Cyprus problem, the longest standing item on the UN Secretary General’s peacekeeping agenda.  We are going through a critical phase in international efforts, which could yield a settlement in a matter of months if the parties demonstrate the political will necessary for the UN Secretary General to resume the UN talks.  Although a solution has eluded many for many years, it is by no means a pipedream.  In fact, developments over the past year have made the prospect of a settlement more tangible for hundreds of thousands of Greek and Turkish Cypriots alike as they have resumed contact after decades of separation.

     Europe remains a strong catalyst for efforts to achieve a solution.  The European Union (EU) reiterated its preference last month for a reunited Cyprus to join the EU in May and noted that a settlement would greatly facilitate Turkey’s own membership aspirations.  With Cyprus’s signature of the accession treaty last April, Greek Cypriots no longer feel threatened by the possibility of delayed membership – this sense of confidence can play a positive role in the solution process.  A settlement would also open the EU’s door to Turkish Cypriots, who are overwhelmingly in favor of full membership as soon as possible.  And the Turkish Government, elected a year ago, has made EU membership a top national priority, and wants accession negotiations to begin as soon as possible.  

          The stakes for the United States in a settlement, as you well know, are clear and significant.  A settlement will benefit Cypriots from one end of the island to another, economically, politically and culturally.  If the two sides take advantage of this opportunity then Cyprus’s full potential will be unleashed.  A settlement would resolve an important dispute between two NATO allies, a dispute that could harm NATO cohesion.  The EU has made clear that a Cyprus solution would also greatly facilitate Turkey’s own European aspirations.  That is something the United States has long championed.   In sum, a settlement would be a win-win for all the parties and make a vital contribution to peace, stability and prosperity in a critical region. 

          We were, of course, disappointed that the direct UN talks between the two sides did not reach agreement last March due to the negative approach of the Turkish Cypriot side.  All is not lost, however.  In fact, we have in hand a number of elements and developments that bolster the current opening for achieving a settlement. 

          Let me mention three from my perspective on the island that could make 2004 the year of a Cyprus settlement rather than another chapter in a seeming never ending saga:

The Annan Plan

          First is the Annan plan, an initiative tabled last year and supported by the UN Security Council.  Neither side is completely happy with the plan as it now stands, but it is the most comprehensive and detailed proposal of its kind.   It provides both a blueprint for a functioning government and a roadmap to a brighter future in the European Union for Greek and Turkish Cypriots.  The Annan plan remains on the table for all parties to carry forward.

Crossing the Buffer Zone

          The second significant development was the Turkish Cypriot side’s decision last April to relax restrictions across the buffer zone last.  This initiative has had an overwhelmingly positive impact on the island’s atmosphere.  With over two million crossings to date and a huge boost in interaction between Greek and Turkish Cypriots after decades of separation, the prospect of a solution and membership in Europe has become more concrete. A solution is no longer an abstract goal left to everyone’s imagination, or dreams.  A real solution is now at hand. It is tangible, palpable.  It can be realized.  Greek and Turkish Cypriots alike can now put faces on “the other side.”  They now have recent, first-hand experience with those with whom they will share the island. 

         The experience of the past eight months certainly defies claims that Greek Cypriots and Turkish Cypriots can’t work together or live in peace in modern day Europe. If we look at the Annan plan in light of these recent, encouraging developments, we can say there is a secure and functional structure set forth in the plan that will be established on a foundation of recently confirmed goodwill between individuals.  That is the way to carry forward the reconciliation we have witnessed in recent months.

         For those of you who have not been to Cyprus during the past year, the stories arising from this interaction are quite moving.  On the one hand, Greek Cypriots visiting their former homes in the north have been welcomed warmly and, in many cases, been given family heirlooms preserved for decades.   And then there’s the story of a Turkish Cypriot who went to his former village near Paphos to find a Greek Cypriot who tried to kill him in 1964, so he could forgive him.  When he arrived at the village, it turned out the Greek Cypriot had passed away; “Let God forgive him,” said the Turkish Cypriot, “I have forgiven them all.    We have seen unprecedented visits by leaders of political parties and chambers of commerce.  The relaxation facilitated establishment of a bicommunal forum aimed at promoting a solution.  Between 5,000 and 8,000 Turkish Cypriots now work daily in the south.  Measures implemented by the Government of Cyprus have also facilitated the issuance of thousands of passports, identity cards and other documents to Turkish Cypriots and given them access to medical care in the south. 

        There have been no serious incidents of intercommunal violence, which is remarkable given the island’s history.  Although the overall record has been positive, we have observed difficult experiences for individuals and mixed messages as well.  Romanticizing about former homes, in some cases, ran up against the cold reality of the present as many discovered they were gone or ruined.  For some, the visit to their former home was so overwhelming they could not repeat it.  Finally, although increased interaction between Greek and Turkish Cypriots has been helpful, it has also spurred questions from Turkish Cypriots about whether Greek Cypriots are indeed sincerely interested in a settlement.  If so, they ask, why are Greek Cypriots so reluctant to make use of Turkish Cypriot shops and restaurants when they visit the north?  Why the ban on overnight stays in the north?  Why has it not been possible to get on-island trade going?

Political Change in the North

The third development contributing to the prospects for a solution is the unprecedented political ferment we have seen in north Cyprus over the past year.   Turkish Cypriots are making their voices heard.  The huge pro-solution Turkish Cypriot demonstrations early last year, calling on the authorities to support the Annan plan, were carried forward into the December ballot.

The pro-solution parties outpolled the establishment parties which campaigned against the UN peace plan, although under the Turkish-Cypriot system, the votes translated into an even split of 25 seats for each camp in the assembly.  The important point, however, is the trend.  Compared to the 1998 vote, the two establishment parties lost between one third and one half of their support.  The pro-solution parties, by contrast, increased their popular votes by about 70% and nearly doubled their number of seats. 

This outcome is all the more noteworthy given the pressures Turkish Cypriot voters had to confront.  The U.S. Embassy in Nicosia as well as the EU and several non-governmental organizations had serious concerns about whether the electoral process would be free and fair. The University of Oslo had several observers on the ground who will be issuing a report shortly.  During the fall, we received reliable reports regarding attempts to manipulate citizenship and voter lists; politically motivated government hiring and firings; vote buying and voter intimidation; a media environment favoring pro-status quo candidates; and legal actions discouraging the press from reporting on pro-solution candidates and parties.

A close race to be sure, but make no mistake, the message is perfectly clear.  A majority of Turkish-Cypriots seek a comprehensive settlement, one based on negotiating the UN plan that would enable them to join Europe by May 1 as part of a new Cyprus.  Even in the area of Morphou, which under the Annan plan would return to the Greek Cypriot side and cause significant numbers of Turkish Cypriots to relocate, a majority voted for the pro-solution parties.  This was a vote of hope over fear. 

The Road Ahead

So where does this leave us?  Well, certain things are clear:

First, the only way to resolve the Cyprus problem is through negotiation and mutual agreement.  It cannot be imposed from the outside.  The history of UN brokered efforts -- including this past year’s -- demonstrates that neither party can compel the other to accept a solution contrary to its perceived fundamental interests.  When talks resume, both parties must be prepared to make accommodations -- including difficult decisions and bitter compromises.  

Second, the longer the problem remains, the harder it gets to solve.  The absence of a solution is not cost free for either side.  Restrictions retard development in the north, but uncertainty about the future casts a shadow over the entire island, inhibiting Cypriots from achieving their full potential.  The lack of certainty engenders a sense of insecurity, which only a settlement can dispel definitively. That lack of certainty damages businesses, industry and the tourist sector on the island.

It is also becoming clearer to Greek Cypriots that they will face problems if a divided Cyprus enters the EU.  There is concern that the buffer zone -- which will become the eastern most limit of the EU -- not take on the character of an international border formally dividing the island.  In addition, there is concern about Turkish Cypriots leaving the north and moving south to pursue their property claims in Republic of Cyprus courts.

Third, the choice Cypriots face isn’t between the Annan Plan and a hypothetical “better plan” -- one that hasn’t been drafted yet. The choice is between negotiating the Annan Plan and no solution for the foreseeable future.  They must realize that the benefits of a balanced, comprehensive settlement are more compelling than clinging to the status quo in the vain hope of achieving unrealistic expectations. 

So, the way forward to achieve a settlement by Cyprus’s May first accession to the European Union is to negotiate the Annan Plan under the auspices of the UN Secretary General’s Good Offices mission.  The Secretary General has offered to reengage in the settlement process only if all parties express the necessary political will.  That means the parties – backed by Turkey and Greece – must commit to finalize the UN plan and put it to referenda by a date certain.   The United States – indeed the entire UN Security Council– firmly backs this approach.  We hope the parties will fulfill this requirement as soon as possible.  There remains time to negotiate a solution and hold referenda before May, but the clock is ticking.  After May 1, things become more difficult for all parties.

Role of the United States

What can the United States do to help?  Far from imposing a settlement from the outside, our role is to provide diplomatic support and assistance to the UN effort and to contribute to conditions on the island that can facilitate a settlement.  Over the past year, President Bush, Secretary of State Powell, senior State Department officials, Special Cyprus Coordinator Weston, whom you know well, and our Embassies in Europe have worked vigorously to promote a settlement.

We also work on the island to help these diplomatic efforts bear fruit.  Since the 1980s, the United States has contributed over $300 million to support bicommunal activities in Cyprus.  This is a sound investment in a better future for all on the island.   With these funds, the Embassy promotes cooperation between the two communities. Each year we fund dozens of programs in areas as wide-ranging as teaching English, improving healthcare, helping the handicap and restoring historic buildings -- all designed not only to make Cyprus a better place in which to live, but also to bring the two communities together and to help them relearn habits of cooperation.

Whenever I need reassurance that we are on the right track, I meet with young graduates of our programs.  Earlier this year, for example, I spent time with young Greek and Turkish Cypriots who had gone to summer camps in the U.S.  I was struck by their attitudes on the Cyprus Question, and two points I heard them make.  First, one of them told me “we deserve better,” a theme which he had also incorporated into a song that I hope political leaders will take to heart.  A second, speaking about conceptions the two communities had of one another, said, “Before we were told; now we tell.”  Attitudes like these among the youth hold out tremendous hope for reconciliation. 

In fact, summer program alumni return to the island and often maintain their newfound relationships.  They organize reunions that introduce their families and friends to one another and often energize existing bicommunal groups like Youth Promoting Peace.  Y2P, as it is known, regularly organizes activities of different kinds that bring new young people into the fold.  They’ve named 2004 “The Year of Peace” and are organizing dozens of activities to get youth enthusiastic about a Cyprus solution. 

In the context of a settlement, U.S. financial support will be essential for the smooth implementation of arrangements approved by majorities of Greek and Turkish Cypriots in referenda.  The European Union announced it would organize a donors' conference, and recently reaffirmed its commitment to provide financial assistance.  The United States, too, will participate and contribute to a donors' conference.  I know you understand the importance of such U.S. funding.

Conclusion

          The main message I hope you will leave with this evening is this: a window of opportunity for a solution remains open, a settlement before May 1 remains possible, but it is up to leaders -- both on the island and off -- to seize the moment quickly or it will pass.  This could well prove the best opportunity ever for Cyprus.  Both sides are being asked to make compromises, but the costs of “no solution” are significantly greater for all.  The United States is ready to help.

          At the dawn of a new century and millennium, with its trend toward greater integration and resolution of ethnic based conflicts, a settlement is well overdue.  What a tremendous accomplishment for all if Greek Cypriots and Turkish Cypriots could join the EU together in just five months!  The world would applaud and support the tough compromises required to achieve such a success. Thank you.