Aid Package

The EU recommended 259 million euro aid package to Turkish Cypriots when they voted "yes" to the Annan plan. The RoC government supports the aid package but was seeking decoupling of financial assistance and direct trade claiming that direct trade constitutes de facto recognition. Mr. Talat wants the aid package linked with direct trade between the north of the island and the EU. As a result of the differences...the European Union has abandoned an attempt to provide the aid package. An agreement was not expected. For months now, Mr. Talat and crew were quoted in the Turkish press stating that Northern Cyprus would not accept trade via Southern Cyprus and that the Turkish Cypriots may say "no" to the aid package if it means giving up on direct trade.