PROFILE
OFFICIAL NAME:
Republic of Cyprus
Geography
Area: 9,251 sq. km. (3,572 sq. mi.); about the
size of Connecticut.
Cities: Capital--Nicosia (pop. 197,800,
2000 fig.). Other cities--Limassol,
Larnaca, Famagusta, Paphos, Kyrenia, Morphou.
Terrain: Central plain with mountain ranges to
the north and south.
Climate: Mediterranean with hot, dry summers and
cool, wet winters.
People
Nationality: Noun and adjective--Cypriot(s).
Population (2004 est.): government-controlled
area: 749,200; area administered by Turkish
Cypriots 218,000.
Annual growth rate (2004): 2.3%.
Ethnic groups (1960 census): Greek (77%),
Turkish (18%), Armenian and other (4%).
Religions: Greek Orthodox, Muslim, Maronite,
Roman Catholic, Armenian Orthodox.
Languages: Greek, Turkish, English.
Education: Years compulsory--6 in
elementary; 3 in high school. Attendance--almost
100%. Literacy--about 99%.
Health: Infant mortality rate--9/1,000.
Life expectancy--73 yrs. males; 78 yrs.
females.
Work force: Government-controlled area (2004),
333,100: agriculture and mining--5.3%;
manufacturing and utilities--12.0%;
construction--10.7%; trade, hotels, and
restaurants--27.1%; transport--5.3%;
finance, real estate, and business--11.9%;
government, education, and health--18.4%;
community and other services--9.3%.
Turkish Cypriot-administered area (2003),
95,000: agriculture--14.5%;
manufacturing and utilities--9.3%;
construction--19.7%; trade, and tourism--11.2%;
transport and communication--8.7%;
finance--2.5%; business and personal
services--15.3%; public services--18.8%.
Government
Type: Republic.
Independence: August 16, 1960.
Constitution: August 16, 1960.
Branches: Executive--President elected
to 5-yr. term. Legislative--unicameral
House of Representatives, members elected to
5-yr. terms. Judicial--Supreme Court;
six district courts.
Administrative subdivisions: Six.
Political parties: Greek Cypriot Community--Democratic
Rally (right); Democratic Party (center-right);
AKEL (communist); KISOS (socialist); United
Democrats (center-left). Turkish Cypriot
Community--National Unity Party (right);
Democrat Party (center-right); Republican
Turkish Party (left); Peace and Democracy
Movement (center-left); Communal Liberation
Party (center-left); National Justice Party
(ultra-nationalist); New Party (Turkish
immigrant party); United Cyprus Party (left).
Suffrage: Universal at age 18.
Economy*
GDP (2004): $15.4 billion.
Annual real growth rate (2004): 3.6%.
Per capita GDP income (2004): Greek Cypriots--$20,961;
Turkish Cypriots--about $7,350.
Agriculture and natural resources (4.4% of GDP):
Products--potatoes and other
vegetables, citrus fruits, olives, grapes,
wheat, carob seeds. Resources--pyrites,
copper, asbestos, gypsum, lumber, salt, marble,
clay, earth pigment.
Industry and construction (19.3% of GDP):
Types--mining, cement, construction,
utilities, manufacturing, chemicals,
non-electric machinery, textiles, footwear,
food, beverages, tobacco.
Services and tourism (76.2% of GDP): Trade,
restaurants, and hotels 20.4%; transport 10.9%;
finance, real estate, and business 23.8%;
government, education, and health 16.1%; and
community and other services 4.9%.
Trade (2004): Exports--$1.2 billion:
citrus, grapes, wine, potatoes, pharmaceuticals,
clothing, footwear. Major markets--EU
(especially the U.K. and Greece), Middle East,
Russia. Imports--$5.8 billion: consumer
goods, raw materials for industry, petroleum and
lubricants, food and feed grains. Major
suppliers--Greece, Italy, Germany, U.K.
(U.S. trade surplus--for 2004: $112.0 million.)
* Section refers to the government-controlled
area unless otherwise specified.
PEOPLE AND HISTORY
Since 1974, Cyprus has been divided de facto
into the government-controlled two-thirds of the
island and the remaining one-third of the
island, which is administered by Turkish
Cypriots. Greek and Turkish Cypriots share many
customs but maintain distinct identities based
on religion, language, and close ties with their
respective "motherlands." Greek is predominantly
spoken in the south, Turkish in the north.
English is widely used. Cyprus has a
well-developed system of primary and secondary
education. The majority of Cypriots earn their
higher education at Greek, Turkish, British, and
other European or American universities. Both
the Turkish and Greek communities have developed
private colleges and state-supported
universities.
Cypriot culture is among the oldest in the
Mediterranean. By 3700 BC, the island was well
inhabited, a crossroads between East and West.
The island fell successively under Assyrian,
Egyptian, Persian, Greek, and Roman domination.
For 800 years, beginning in 364 AD, Cyprus was
ruled by Byzantium. After brief possession by
King Richard I (the Lion-Hearted) of England
during the Crusades, the island came under
Frankish control in the late 12th century. It
was ceded to the Venetian Republic in 1489 and
conquered by the Ottoman Turks in 1571. The
Ottomans applied the millet system to Cyprus,
which allowed religious authorities to govern
their own non-Muslim minorities. This system
reinforced the position of the Orthodox Church
and the cohesion of the ethnic Greek population.
Most of the Turks who settled on the island
during the 3 centuries of Ottoman rule remained
when control of Cyprus--although not
sovereignty--was ceded to Great Britain in 1878.
Many left for Turkey during the 1920s, however.
The island was annexed formally by the United
Kingdom in 1914 at the outbreak of World War I
and became a crown colony in 1925.
Cyprus gained its independence from the
United Kingdom and established a constitutional
republic in 1960, after an anti-British campaign
by the Greek Cypriot EOKA (National Organization
of Cypriot Fighters), a guerrilla group that
desired political union, or enosis, with Greece.
Archbishop Makarios, a charismatic religious and
political leader, was elected president.
Shortly after the founding of the republic,
serious differences arose between the two
communities about the implementation and
interpretation of the constitution. The Greek
Cypriots argued that the complex mechanisms
introduced to protect Turkish Cypriot interests
were obstacles to efficient government. In
November 1963, President Makarios advanced a
series of constitutional amendments designed to
eliminate some of these special provisions. The
Turkish Cypriots opposed such changes. The
confrontation prompted widespread intercommunal
fighting in December 1963, after which Turkish
Cypriots ceased to participate in the
government. Following the outbreak of
intercommunal violence, many Turkish Cypriots
(and some Greek Cypriots) living in mixed
villages began to move into enclaved villages or
elsewhere. UN peacekeepers were deployed on the
island in 1964. Following another outbreak of
intercommunal violence in 1967-68, a Turkish
Cypriot provisional administration was formed.
In July 1974, the military junta in Athens
sponsored a coup led by extremist Greek Cypriots
against the government of President Makarios,
citing his alleged pro-communist leanings and
his perceived abandonment of enosis. Turkey,
citing the 1960 Treaty of Guarantee, intervened
militarily to protect Turkish Cypriots.
In a two-stage offensive, Turkish troops took
control of 38% of the island. Almost all Greek
Cypriots fled south while almost all Turkish
Cypriots fled north. Since the events of 1974,
UN peacekeeping forces have maintained a buffer
zone between the two sides. Except for
occasional demonstrations or infrequent
incidents between soldiers in the buffer zone,
the island was free of violent conflict from
1974 until August 1996, when violent clashes led
to the death of two demonstrators and escalated
tension. The situation has been quiet since
1996.
GOVERNMENT
Since 1974, Cyprus has been divided de facto
into the government-controlled two-thirds of the
island and the Turkish Cypriot one-third. The
Government of the Republic of Cyprus has
continued as the internationally recognized
authority; in practice, its authority extends
only to the government-controlled areas.
The 1960 Cypriot Constitution provided for a
presidential system of government with
independent executive, legislative, and judicial
branches, as well as a complex system of checks
and balances, including a weighted power-sharing
ratio designed to protect the interests of the
Turkish Cypriots. The executive, for example,
was headed by a Greek Cypriot president and a
Turkish Cypriot vice president, elected by their
respective communities for 5-year terms, and
each possessing a right of veto over certain
types of legislation and executive decisions.
Following the 1974 hostilities, the Turkish
Cypriots set up their own institutions in the
area they administered with an elected president
and a prime minister responsible to the National
Assembly exercising joint executive powers. In
1983, the Turkish Cypriots declared an
independent Turkish Republic of Northern Cyprus
("TRNC"). Only Turkey recognizes the "TRNC".
POLITICAL CONDITIONS
In February 2003, Greek Cypriots elected Tassos
Papadopoulos, leader of the center right
Democratic Party, as president of the Republic
of Cyprus. President Papadopoulos was supported
by a broad coalition of parties ranging from his
own Democratic Party to communist AKEL. None of
the Greek Cypriot parties has been able to elect
a president by itself or dominate the 56-seat
House of Representatives. The 165,000 Greek
Cypriot refugees from the area now administered
by Turkish Cypriots are a potent political
force, along with the independent Orthodox
Church of Cyprus, which has some influence in
temporal as well as ecclesiastical matters.
"TRNC President" Mehmet Ali Talat was elected
in April 2005, replacing long-time nationalist
leader Rauf Denktash. Talat’s political rise was
due largely to his support of the UN Settlement
Plan for Cyprus (the "Annan Plan"), which Rauf
Denktash opposed, but which was supported by a
majority of Turkish Cypriots in a 2004
referendum. Talat’s pro-settlement, pro-EU
political allies in the Republican Turkish Party
(CTP) hold 24 of the 50 seats in the "TRNC
National Assembly." In March 2005, the CTP
agreed to form a coalition "government" with the
5-seat Democrat Party (DP) under the leadership
of CTP "Prime Minister" Ferdi Sabit Soyer and DP
"Deputy Prime Minister/Foreign Minister" Serdar
Denktash.
The first UN-sponsored negotiations to
develop institutional arrangements acceptable to
both communities began in 1968; several sets of
negotiations and other initiatives followed.
Turkish Cypriots focus on bizonality, security
guarantees, and political equality between the
two communities. Greek Cypriots emphasize the
rights of movement, property, settlement, and
the return of territory. Turkish Cypriots favor
a loose grouping of two nearly autonomous
societies living side by side with limited
contact. Greek Cypriots envision a more
integrated structure.
Direct talks began in January 2002 between
the Greek and Turkish Cypriot community leaders
under the auspices of the UN Secretary General,
Mr. Kofi Annan.
In November 2002, Secretary General Annan
released a comprehensive plan for the resolution
of the Cyprus issue. This plan was revised in
early December. In the lead up to the December
2002 EU Copenhagen Summit, intensive efforts
were made to gain both sides' signatures to the
document prior to a decision on the island's EU
membership. Neither side agreed to sign. The EU
invited the Republic of Cyprus to join on
December 16.
Following the Copenhagen Summit, the UN
continued dialogue with the two sides with the
goal of reaching a settlement prior to Cyprus's
signature of the EU accession treaty on April
16, 2003. A third version of the Annan plan was
put to the parties in February 2003. That same
month the Secretary General again visited the
island and asked that both leaders agree to put
the plan to referendum in their respective
communities. Also in February 2003, Tassos
Papadopoulos was elected as the fifth president
of the Republic of Cyprus. On March 10, 2003,
this phase of talks collapsed in The Hague when
the then-leader of the Turkish Cypriots, Rauf
Denktash, told the Secretary General he would
not put the Annan plan to referendum.
On April 23, 2003, Mr. Denktash relaxed many
restrictions on individuals crossing between the
two communities, including abolishing all
crossing fees. Since then, the relaxed crossing
procedures have led to relatively unimpeded
bicommunal contact for the first time since
1974. Since April 2003 there have been over
7,000,000 buffer zone crossings in both
directions. Greek Cypriots are currently
required to present identity documents at the
checkpoints along the buffer zone, something
many are reluctant to do. Greek Cypriots are
permitted to drive their personal vehicles in
the Turkish Cypriot community, provided they
first obtain a policy from an insurance provider
in the north. Turkish Cypriots are permitted to
cross into the government-controlled area upon
presentation of a Turkish Cypriot ID card.
Turkish Cypriots must also obtain car insurance
from an insurer in the south to drive their
personal vehicles in the government-controlled
area.
Until recently, visitors choosing to arrive
at non-designated airports and seaports in the
north were not allowed to cross the United
Nations-patrolled "green line" to the
government-controlled areas in the south. In
June of 2004, however, Cypriot authorities
implemented new EU-related crossing regulations
that allowed Americans (and citizens of most
other countries) to cross freely regardless of
their port of entry into Cyprus. Visitors
arriving in the south are normally able to cross
the green line without hindrance, although on
occasion difficulties are encountered at both
the Greek-Cypriot and Turkish-Cypriot
checkpoints. Policy and procedures regarding
such travel are subject to change. More
information on current procedures may be
obtained at the UN "Buffer Zone" Ledra Palace
checkpoint in Nicosia.
In February 2004, President Papadopoulos and
Rauf Denktash accepted the Secretary General's
invitation to resume negotiations on a
settlement on the basis of the Annan plan. After
a meeting with the Secretary General in New
York, talks began in Cyprus on February 19. The
two community leaders met nearly every day for
negotiations facilitated by the Secretary
General's Special Representative for Cyprus, Mr.
Alvaro De Soto. In addition, numerous technical
committees and subcommittees met in parallel in
an effort to resolve outstanding issues and
complete the legislative framework. Beginning on
March 24, the talks moved to Burgenstock,
Switzerland with the participation of the Prime
Ministers and Foreign Ministers of Greece and
Turkey. Negotiations concluded on March 31, and
the Secretary General presented the two sides
with a final settlement package.
Most Turkish Cypriot and Turkish leaders
supported the agreement, but most Greek Cypriot
leaders, including President Papadopoulos, urged
the Greek Cypriot public to reject the
settlement. On April 24, after a three-week
campaign marked by accusations that the
government of Cyprus was unfairly manipulating
public opinion, Cypriots on both sides of the
Green Line went to the polls in parallel and
simultaneous referenda. Turkish Cypriots voted
by a large majority (65% "yes" to 35% "no") to
accept the solution. Greek Cypriots, however,
voted by an even larger margin (76% "no" to 24%
"yes") to reject it.
Cyprus entered the European Union on May 1,
2004 as a divided island. The Secretary
General’s Good Offices Mission is suspended.
Principal Government Officials
President of the Republic--Tassos
Papadopoulos
Foreign Minister--George Iacovou
Minister of Commerce, Industry, and Tourism--Yiorgos
Lillikas
Minister of Finance--Michalis Sarris
Minister of Interior--Andreas Christou
Minister of Communications and Works--Haris
Thrasou
Minister of Justice and Public Order--Doros
Theodorou
Ambassador to the United States--Euripides L.
Evriviades
Permanent Representative to the United
Nations--Andreas Mavroyiannis
Cyprus maintains an
embassy
in the United States at 2211 R Street NW,
Washington, DC 20008 (tel. 202-462-5772) and a
Consulate General in New York City. Cyprus also
maintains a trade center at 13 East 40th Street,
New York, NY 10016 (tel. 212-686-6016). Turkish
Cypriots maintain offices in Washington (tel.
202-887-6198) and at the Republic of Turkey's
Mission to the United Nations.
ECONOMY*
Cyprus has an open, free-market, services-based
economy with some light manufacturing. Cyprus's
accession as a full member to the European Union
as of May 1, 2004, has been an important
milestone in its recent economic development.
The Cypriots are among the most prosperous
people in the Mediterranean region.
Internationally, Cyprus promotes its
geographical location as a "bridge" between West
and East, along with its educated
English-speaking population, moderate local
costs, good airline connections, and
telecommunications.
In the past 20 years, the economy has shifted
from agriculture to light manufacturing and
services. The service sector, including tourism,
contributes 76.2% to the GDP and employs 72.0%
of the labor force. Industry and construction
contribute 19.3% and employ 22.7% of labor.
Manufactured goods account for approximately
58.0% of domestic exports. Agriculture and
mining is responsible for 4.4% of GDP and 5.3%
of the labor force. Potatoes and citrus are the
principal export crops.
Following a classical pattern, growth rates
have gradually begun to decline as the Cypriot
economy has matured over the years. The average
rate of growth went from 6.1% in the 1980s, to
4.4% in the 1990s to 3.4% from 2000 to 2004. In
2004, growth picked up to 3.6%, from 1.9% in
2003. Unemployment was fairly constant at 3.6%
in 2004, while inflation declined to 2.3% in
2004 from 4.1% the year before. As in recent
years, the services sectors, and tourism in
particular, provided the main impetus for
growth.
Trade is vital to the Cypriot economy: the
island is not self-sufficient in food, and has
few natural resources. The trade deficit
increased by 18.4% in 2004, reaching $4.6
billion.
Cyprus must import fuels, most raw materials,
heavy machinery, and transportation equipment.
More than 50% of its trade is with the European
Union, particularly with the United Kingdom.
The economic outlook remained bright in 2005:
growth was expected to remain strong (around
4.0%), with low unemployment (less than 4.0%),
and low inflation (around 2.3%). Equally
important, public finances were expected to
continue improving, with the fiscal deficit
forecast to decline to 2.9% of GDP in 2005, from
4.2% in 2004, and 6.3% in 2003.
Investment Climate
Cyprus, a full EU member since May 1, 2004, has
a liberal climate for investments. On October 1,
2004, the Government of Cyprus lifted most
investment restrictions concerning non-EU
residents, completing earlier reforms
(introduced in January 2000) concerning EU
investors. Through this decision, the Government
of Cyprus has lifted most capital restrictions
and limits on foreign equity
participation/ownership, thereby granting
national treatment to foreign investors. Non-EU
investors (both natural and legal persons) may
now invest freely in Cyprus in most sectors,
either directly or indirectly (including all
types of portfolio investment in the Cyprus
Stock Exchange). The only exceptions concern
primarily the acquisition of property and, to a
lesser extent, restrictions on investment in the
sectors of tertiary education and mass media.
The inflow of approved foreign direct
investment reached $1.22 billion in 2004,
compared with $1.0 billion in 2003, and $1.06
billion in 2002. The sectoral allocation of this
investment in 2003 was as follows: manufacturing
0.8%; construction 0.8%; trading 14.6%; hotels
and restaurants 0.2%; transport and
communications 11.1%; financial intermediation
24.7%; real estate and business 41.0%, other
services 6.7%. In terms of geographical origin,
the majority of new investments in 2003 (58.1%
of total value) originated from the EU; 31.1%
originated from other European countries; 4.6%
from the United States of America; and the
remaining 6.2% from various other countries.
The gradual liberalization of foreign direct
investment regulations has made Cyprus
progressively a more attractive destination for
U.S. investors in recent years. Traditionally,
U.S. direct investment in Cyprus consisted of
relatively minor projects, mostly by
Greek-Cypriot expatriates. New investment
projects with U.S. involvement in 2003-2004
included a well-known U.S. coffee retailing
franchise, an equestrian center, a hair products
manufacturing unit, a firm trading in health and
natural foodstuffs, and a financial services
company. It should also be noted that the
abolition of restrictions on investment
originating from the EU allows U.S. investors to
benefit as well, provided they work through
subsidiaries in the EU.
Cyprus has good business and financial
services, modern telecommunications, an educated
labor force, good airline connections, a sound
legal system, and a low crime rate. Cyprus's
geographic location, tax incentives and modern
infrastructure also make it a natural hub for
companies looking to do business with the Middle
East, Eastern Europe, the former Soviet Union,
the European Union, and North Africa. As a
result, Cyprus has developed into an important
regional and international business center.
European Union (EU)
Along with the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia, and
Slovenia, the Republic of Cyprus entered the EU
on May 1, 2004. The EU’s acquis communautaire is
suspended in the area administered by Turkish
Cypriots pending a settlement of the island’s
division.
Export Opportunities
Best prospects for U.S. firms generally lie in
services, high technology sectors, such as
computer equipment and data processing services,
financial services, environmental protection
technology, medical and telecommunications
equipment, and tourism development projects.
Moreover, alternative energy sources and the
energy sector in general are attracting an
increasing amount of attention, while the
possible existence of natural gas and petroleum
reserves off the southern and eastern coast of
Cyprus opens up new prospects. Finally, the
island’s private sector has a growing appetite
for U.S.-made office machines, computer software
and data processing equipment, while U.S. food
franchises and apparel licensors have found
fertile ground for expansion in Cyprus in recent
years.
Trade Between Cyprus and the United
States
The U.S. Embassy in Nicosia sponsors a popular
pavilion for American products at the annual
Cyprus International State Fair and organizes
other events to promote U.S. products throughout
the year. The U.S. runs a significant trade
surplus with Cyprus, on the order of $112.0
million in 2004 (exports of $131.2 million
versus imports of $19.2 million--according to
Government of Cyprus Statistics).
Principal U.S. exports to Cyprus include
office machines and data processing equipment,
electrical equipment, tobacco and cigarettes,
passenger cars, and wheat. Principal U.S.
imports from Cyprus consist of Portland cement,
clothing, hunting rifle cartridges, canvas,
dairy products, and fresh fish.
Bilateral business ties also encompass a
healthy exchange in services. In 2004, the
inflow of services (from the United States to
Cyprus) was $585.9 million, against an outflow
(from Cyprus to the United States) of $346.7
million, according to Government of Cyprus
statistics.
Turkish Cypriot Economy
The economy of the Turkish Cypriot-administered
area is dominated by the services sector
including the public sector, trade, tourism and
education, with smaller agriculture and light
manufacturing sectors. The economy operates on a
free-market basis, although it continues to be
handicapped by the political isolation of
Turkish Cypriots, the lack of private and
governmental investment, high freight costs, and
shortages of skilled labor. Despite these
constraints, the Turkish Cypriot economy turned
in an impressive performance in 2003 and 2004,
with growth rates of 9.6% in 2004 and 11.4% in
2003. Over the same period, per capita income
almost doubled reaching $7,350 at the end of
2004, compared with $4,409 in 2002. This growth
has been buoyed by the relative stability of the
Turkish Lira, the employment of over 5,000
Turkish Cypriots in the Greek Cypriot economy
where wages are significantly higher, and by a
boom in the education and construction sectors.
In 2003, the services sector accounted for
nearly two thirds of GDP, industry accounted for
11.6% of GDP, agriculture 10.6%, and
construction 10.1%, according to Turkish Cypriot
statistics.
The partial lifting of travel restrictions
between the two parts of the island in April
2003 has allowed movement of persons--almost
seven million crossings to date--between the two
parts of the island with no significant
interethnic incidents. In August 2004, new EU
rules allowed goods produced in the north to be
sold in the south provided they met EU rule of
origin and sanitary/phyto-sanitary requirements.
In May 2005, the Turkish Cypriot "authorities"
adopted a new regulation "mirroring" the EU
rules and allowing certain goods produced in the
south to be sold in the north. Suppliers of
imported products in the government-controlled
area cannot directly serve the Turkish Cypriot
market and vice versa. Despite these efforts,
direct trade between the two communities remains
very limited.
Turkey remains, by far, the main trading
partner of the area administered by Turkish
Cypriots, supplying 60% of imports and absorbing
over 40% of exports. In a landmark case, the
European Court of Justice (ECJ) ruled on July 5,
1994 against the British practice of importing
produce from the area based on certificates of
origin and phytosanitary certificates granted by
"TRNC" authorities. The ECJ decision stated that
only goods bearing certificates of origin from
the Government of Cyprus could be recognized for
trade by EU member countries. The ECJ decision
resulted in a considerable decrease of Turkish
Cypriot exports to the EU--from $36.4 million
(or 66.7% of total Turkish Cypriot exports) in
1993 to $13.8 million in 2003 (or 28% of total
exports). Even so, the EU continues to be the
second-largest trading partner of the area
administered by Turkish Cypriots, with a 25%
share of total imports and 28% share of total
exports. Total imports increased to $853.1
million in 2004 (from $477.7 million in 2003),
while total exports increased to $61.5 million
(from $50.6 million in 2003). Imports from the
U.S. reached $7.1 million in 2004, while exports
to the U.S. were less than $10,000.
Assistance from Turkey is crucial to the
Turkish Cypriot economy. Under the latest
economic protocol (signed in 2005), Turkey
undertakes to provide Turkish Cypriots loans and
financial assistance totaling $450 million over
a three-year period for public finance, tourism,
banking, and privatization projects. Turkey also
provides millions of dollars annually in the
form of low-interest loans to mostly Turkish
entrepreneurs in support of export-oriented
industrial production and tourism. Total Turkish
assistance to Turkish Cypriots since 1974 is
estimated to exceed $3 billion.
* Section refers to the government-controlled
area unless otherwise specified.
FOREIGN RELATIONS
The Government of Cyprus aligns itself with
European positions within the EU's Common
Foreign and Security Policy. Cyprus has long
identified with the West in its cultural
affinities and trade patterns, and maintains
close relations with Greece. Since 1974, the
foreign policy of the Government of Cyprus has
sought the withdrawal of Turkish forces and the
most favorable constitutional and territorial
settlement possible. This campaign has been
pursued primarily through international forums
such as the United Nations. (See Political
Conditions.) Turkey does not recognize the
Government of Cyprus.
The Government of Cyprus enjoys close
relations with Greece. Cyprus is expanding
relations with Russia, Israel, Egypt, and Syria,
from which it purchases most of its oil. Cyprus
is a member of the United Nations and most of
its agencies, as well as the World Trade
Organization, the World Bank, International
Monetary Fund, Council of Europe and the British
Commonwealth. In addition, the country has
signed the Multilateral Investment Guarantee
Agency Agreement (MIGA).
U.S.-CYPRUS RELATIONS
The United States regards the status quo on
Cyprus as unacceptable. Successive
administrations have viewed UN-led
inter-communal negotiations as the best means to
achieve a fair and permanent settlement, but
after the failure of the Greek Cypriots to
approve the comprehensive settlement plan in
April 2004, the path to a settlement is unclear.
The United States is working closely with
Cyprus in the war on terrorism. A Mutual Legal
Assistance Treaty, which has been in force since
September 18, 2002, facilitates bilateral
cooperation.
The United States has channeled $305 million
in assistance to the two communities through
bi-communal projects, the UN Office of Project
Services, the UN High Commissioner for Refugees,
and the Cyprus Red Cross since the mid-1970s.
The United States now provides approximately
$13.5 million annually to promote bi-communal
projects and finance U.S. scholarships for Greek
and Turkish Cypriots.
Principal U.S. Officials
Ambassador--Ronald
L. Schlicher
Deputy Chief of Mission--Jane B. Zimmerman
Consular Officer--Henry Hand
Defense Attaché--Col. Steve G. Boukedes
Economic/Commercial Officer--Michael Dixon
Management Officer--Katherine Munchmeyer
Political Officer--Matthew A. Palmer
Public Affairs Officer--Thomas S. Miller
USAID--Thomas A. Dailey
The
U.S. Embassy in Cyprus is located at the
corner of Metochiou and Ploutarchou Streets in
Engomi, Nicosia; mailing address: PO Box 24536,
Nicosia, Cyprus. U.S. mailing address: PSC 815,
FPO-AE 09836-0001. Tel. [357] 22 39 39 39;
telex: 4160 AMEMY CY; fax: [357] 22 78 09 44;
Consular fax: [357] 22 77 68 41.