Cyprus News Agency: News in English (PM), 98-07-13

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] Clerides - Primakov

[02] Cyprus Stock Exchange

[03] EU candidate-countries meeting in Ljubliana

[04] Government Spokesman - Tension

[05] EU official - Visit

[06] Israeli embassy - Denial

[07] Kasoulides - Russia

[08] Chief negotiators - Ljubliana meeting

[09] Russia - Cyprus problem - S300s

1430:CYPPRESS:01

[01] Clerides - Primakov

Moscow, Jul 13 (CNA) -- Russian Foreign Minister Yevgeny Primakov believes his country's ties with Cyprus are on a very good level and does not think anything can disrupt them.

Speaking before a working lunch he hosted for President Glafcos Clerides at his official residence, Primakov, speaking through an interpreter, said "a large part of our ties coincides".

He said "I cannot find anything which can bother the close and friendly relations between the two countries."

Primakov added that talks with President Clerides would cover in greater detail the issues discussed at this morning's meetings Clerides had with President Boris Yeltsin.

In his remarks to the press, Clerides thanked Primakov for hosting the lunch and reconfirmed "we will discuss in greater detail the issues we talked about this morning.

"Our morning meeting was so good that I do not think we will meet any difficulties now to enter into a more detailed discussion," he added.

Present at the lunch were Foreign Minister Ioannis Kasoulides, Undersecretary to the President Pantelis Kouros, Cyprus ambassador to Russia Platon Kyriakides and Russian ambassador to Cyprus Georgi Mouradov.

Later today President Clerides was scheduled to meet Russian Patriarch Alexy II and attend the opening of the World Youth Games.

The Cypriot President is in Moscow since Saturday at the invitation of the Russian capital's mayor Yury Luzhkov.

He will return to Cyprus tomorrow.

CNA MM/MA/GP/1998

ENDS, CYPRUS NEWS AGENCY

1515:CYPPRESS:02

[02] Cyprus Stock Exchange

   CSE General Index                          85.39 (-0.27)

   Traded Value            CYP   1,328,801

   Sectural Indices

   Banks                   CYP   383,037      99.65 (-0.50)
   Approved Investment
   Companies               CYP    23,013      59.11 ( 0.25)
   Insurance Companies     CYP    46,375      60.21 (-0.84)
   Manufacturing Companies CYP    15,393      79.09 ( 0.09)
   Tourism Companies       CYP   500,879      70.79 ( 1.40)
   Trading Companies       CYP    57,608      44.19 ( 0.73)
   Other Companies         CYP   160,535      72.30 (-0.11)

CNA AP/1998

ENDS, CYPRUS NEWS AGENCY

1650:CYPPRESS:03

[03] EU candidate-countries meeting in Ljubliana

The meeting, to be held today, is the third of a series of similar meetings and is taking place at the invitation of the head of the Slovenian negotiating team, Janez Potocnik.

The two previous meetings were held in Prague, the first in December 1997 and the second in March this year.

The chief negotiators of the six EU candidate-countries will exchange views on the results of each country's screening process, their negotiating positions and the timetable of accession talks.

Vassiliou will also meet with the Slovenian Minister without Portfolio responsible for European Integration, Igor Bavcar.

The Foreign Ministers of the 15 EU member-states, who will meet today in Brussels, are expected to discuss the timetable of the accession negotiations with the six candidate-states.

Cyprus along with Slovenia, Hungary, Poland, Estonia and the Czech Republic have started accession talks with the EU in March.

CNA GG/AP/1998

ENDS, CYPRUS NEWS AGENCY

1715:CYPPRESS:04

[04] Government Spokesman - Tension

Stylianides was commenting on a Monday report in Turkish daily "Hurriyet" that six F-16 Turkish fighters have conducted exercises at an Israeli training centre, designed to destroy the Russian-made S-300 missile defence system, ordered by the Cyprus government and expected to be deployed here later this year.

Noting he has no information on the issue, the spokesman said the government "has always maintained a cautious stance towards the military defence agreement between Israel and Turkey."

Stylianides pointed out that Israel has often reassured the government that its agreement with Turkey does not affect Cyprus.

"Cyprus' demilitarisation and the solution of the Cyprus problem is the only way the tension Turkey is trying to create in the region could be tackled," he added.

He said the government is investigating into the reports and called for caution.

Turkey, which occupies 37 per cent of the island's territory since its 1974 invasion, has stepped up its threats against Cyprus since the government decided in January 1997 to purchase the S-300s, in a bid to boost its air defences.

Prime Minister Mesut Yilmaz said last week Turkey will install missiles in the occupied areas if the S-300s are deployed in Cyprus.

CNA EC/MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

1830:CYPPRESS:05

[05] EU official - Visit

Padraig Flynn, a European Commission member, will visit Cyprus July 20- 21.

During his stay he will call on President Glafcos Clerides and will meet Foreign Minister Ioannis Kasoulides and the head of the negotiating team for Cyprus' accession to the EU, George Vassiliou.

Commissioner Flynn will deliver a speech on "Social Policy and Enlargement" at the European Institute of Cyprus.

Cyprus opened accession talks with the EU in March.

CNA MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

1845:CYPPRESS:06

[06] Israeli embassy - Denial

It also denied reports that an air-base will be constructed in eastern Turkey, especially used by Israeli planes.

Turkish daily "Hurriyet" today wrote that Turkish fighter pilots have been given training by Israel to destroy the Russian-made S-300 missile system, ordered by Cyprus in 1997.

It claimed that six Turkish F-16 warplanes, combat pilots, military experts and maintenance officers recently underwent training exercises in Israel's Shdema base in the Neguev region.

The Israeli embassy press release said it "categorically denies these reports" and described them as "unfounded and untrue".

"The embassy also denies the reports that an air-base will be built in eastern Turkey, that will be especially used by Israeli planes," it concludes.

Cyprus purchased the S-300 in a bid to bolster its air defences because of the 35.000-strong Turkish army stationed in the areas of the island occupied by Turkey since 1974.

Ankara has threatened to respond if the missiles are deployed in Cyprus.

CNA MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

2150:CYPPRESS:07

[07] Kasoulides - Russia

Moscow, Jul 13 (CNA) -- The Cyprus government remains firm in its positions regarding the Russian-made anti-aircraft missile system S-300 it ordered in 1997, Foreign Minister Ioannis Kasoulides said today.

Speaking in Moscow at the end of President Glafcos Clerides' meetings with Russian officials, the Foreign Minister said the government will take into consideration Russia's positions, if it decides to take the Cyprus issue before the UN General Assembly.

He also said that discussions on an agreement signed between Russia and Cyprus in 1982 for the avoidance of double taxation, with a view to introduce amendments, will continue.

Referring to the meeting between President Clerides and his Russian counterpart Boris Yeltsin, earlier today, Kasoulides said they reconfirmed their wish to continue the "friendly and close cooperation" between the two countries.

He added that issues concerning bilateral relations and military and technical cooperation were discussed.

Kasoulides refrained from disclosing details of discussions about the S- 300s, but pointed out that there was no need to reconfirm the terms of the contract for their purchase.

"Our positions are known and will be adhered to," he said. The Cyprus government has repeatedly said it would reconsider halting the import of new weapon systems provided progress is made on a schedule leading to demilitarisation or if there is substantive progress in a Cyprus settlement.

Replying to questions, Kasoulides said that the possibility of Cyprus making a recourse to the UN Security Council was not raised at today's meetings, pointing out "it has been discussed on other levels."

"If we finally decide to make a recourse, Russia will support us, but we will take into consideration Moscow's assessment when such a decision must be made," he added.

Kasoulides said that the agreement between the two countries for the avoidance of double taxation for citizens and companies was also discussed at the Clerides-Yeltsin meeting.

He described this issue as "complex" and expressed Nicosia's wish to be treated on an equal footing as other off-shore centres and countries.

A large number of Russian off-shore companies operate from Cyprus, because of the agreement and tax incentives.

Replying to questions he said that during the visit to Moscow last week by Finance Minister Christodoulos Christodoulou, it was decided "to step up negotiations between technocrats on this issue."

The Foreign Minister said the position of the Russian government appears to be more favourable now.

"A lot of work is needed on the part of the technocrats, who will work out the details," he concluded.

CNA MM/MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

2120:CYPPRESS:08

[08] Chief negotiators - Ljubliana meeting

They have also pledged to work hard towards the preparation of their accession, so they could join the EU until the end of the year 2002.

The chief negotiators of Cyprus, Slovenia, the Czech Republic, Poland, Hungary and Estonia met today in Ljubliana, Slovenia, to discuss their countries accession course.

The head of the Cyprus delegation that carries out the EU accession talks, former president George Vassiliou participated in this third meeting of the chief negotiators.

After the meeting, the Slovenian officials said the chief negotiators are in favour of the start of the membership talks by this autumn, during the Austrian presidency.

The six countries agreed that they must step up preparatory work in seven chapters and put forward their positions to the Commission by September.

The seven chapters deal with research and science, education, telecommunications, the common external and security policy, the industrial policy and small and medium enterprises.

Their aim is to continue their efforts for harmonisation with the aquis communautaire so that they can become EU members by the end of the year 2002.

"Our conclusion is that all countries are consistent in their preparatory work and their harmonisation with the aquis communautaire," Vassiliou said.

He pointed out that all six countries are aware of the difficulties harmonisation entails, but are convinced they can succeed.

The next meeting of the six chief negotiators will take place in Warsaw, Poland, at the end of September or beginning of October 1998.

During his stay in Ljubliana, Vassiliou met with Slovenian Prime Minister Janez Drnovsek, the Under-Secretary for Foreign Affairs, responsible for EU issues, Franco Juri and the Minister without portfolio Igor Bavcar.

Vassiliou briefed Drnovsek on the deadlock in efforts to settle the Cyprus problem, due to Turkish intransigence, and thanked him for Slovenia's interest and its participation in the UN Peacekeeping Force in Cyprus (UNFICYP).

Efforts to settle the Cyprus question have come to a stalemate, because Turkish Cypriot leader Rauf Denktash insists on the recognition of the illegal regime in the areas of Cyprus occupied by Turkey since 1974.

He has also said he will not return to the negotiating table unless Cyprus withdraws its application to join the EU.

CNA MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

2240:CYPPRESS:09

[09] Russia - Cyprus problem - S300s

Moscow, Jul 13 (CNA) -- The Russian anti-aircraft missile system, Cyprus has bought, is expected to arrive to the island in October, according to reliable diplomatic sources, which do not foresee any change in the intransigent positions Turkey maintains on the Cyprus question.

The missiles purchase deal was one of the issues President Glafcos Clerides discussed here today.

The Cypriot side did not question at all the possibility of not fulfilling its part of the contract for the purchase of the missile system and understands that the Russian part of the deal is to deliver and deploy the S-300s in Cyprus.

Commenting on the positions of the Turkish side on the Cyprus question and various ideas to reduce tension or resume dialogue for a settlement, the sources indicated Turkey's outlook is unlikely to change.

"We do not think anything can be achieved, Turkey does not accept," they told CNA.

In spite of the fact that the Cyprus government has outlined views and proposals to break the current deadlock in efforts to settle the Cyprus issue, through the postponement or cancellation of the missiles deal if certain terms are met, at present "Turkey bears the responsibility" for the impasse in that it does not see such moves in a favourable light.

Given these circumstances, the sources explained, the missiles are due for delivery "after the end of September," namely in October.

Russia, according to the same sources, considers Cyprus' positions and proposals on the non-importation of the S-300s as "sufficiently reasonable" and Moscow does not object to the non-importation of the missiles to Cyprus, if enough progress was made towards demilitarisation or a solution.

On the contrary, Russia would consider it a great contribution if its arms deal with Cyprus created an impetus which led to the satisfaction of the terms the government of Cyprus set out to halt the import of the missiles system.

"Russia has no political reasons that prevent it from opening its military market to help boost Cyprus' defences," the sources said, noting that Russia wishes to see Cyprus enjoying good relations with other countries, including itself, and declares its readiness to assist Cyprus.

The same sources explained that Russia has given assurance that "there will be a solution to the issue of amending an existing agreement on the avoidance of double taxation" and reassured that "no unilateral arrangement will be made on the matter."

At present, Russia is reviewing its agreements on this issue with various countries with a view to increasing its revenue.

In the case of Cyprus, no time-table for concluding an agreement on amendments has been set, but this will be worked out during negotiations technocrats from both countries will have.

CNA MM/MA/AP/1998

ENDS, CYPRUS NEWS AGENCY

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