Investment Arbitration Claim

From the PR Newswire:

Cypriot Investment Firm Files $10 Billion Investment Arbitration Claim Against Turkey at World Bank for Seizure of Electric Utilities

WASHINGTON, Feb. 23 /PRNewswire/ -- Cypriot investment firm Libananco Holdings Company Ltd. announced today that it has filed a US$10 billion investment arbitration claim against the Republic of Turkey for its unlawful 2003 expropriation of the assets of Cukurova Elektrik Anonim Sirketi (CEAS) and Kepez Elektrik Turk Anonim Sirketi (Kepez), two of Turkey's largest hydroelectric companies.
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News Roundup

Development Boom to Legal Mess
The authorities in the occupied North are preparing to pour in large amounts of money into the development of parts of the Morphou region. Morphou (Guzelyurt in Turkish) is currently under Turkish Cypriot administration. It is believed that, under a future agreement, Morphou would return to the Greek Cypriots as part of an overall settlement to the Cyprus problem. The Turkish Cypriot daily Kibris today (21.02.06) quoted Mr. Talat as saying "Strengthening our economy is more important than the Cyprus problem." Mr. Talat's remark was made while addressing the "Association for the Development of the Area of Morphou." A small bit of info on Morphou: The town of Morphou fell to the advancing Turkish troops on August 16, 1974. An estimated 8,000 Greek Cypriots from Morphou were forced to abandon their properties.

EU Backs UN Sponsored Talks
The European Union on Tuesday said it supports UN backed talks between Turkey and Cyprus, but acknowledged that resolving the conflict between the two countries would not be easy. "The Austrian presidency is doing everything in its power to support the current UN sponsored process," Austrian Chancellor Wolfgang Schuessel, whose country currently holds the bloc's rotating six month presidency, said in a statement. "We know the situation is very complex and difficult and that it will not be easy to solve the conflict." Schuessel's comments came after a meeting in Vienna with Cypriot president Tassos Papadopoulos.

International Film Festival
Cyprus will hold its first film festival in March. The festival is a three-day event being held on March 24-27, and will include the screening of 130 films from 40 countries competing in feature film, short film and animation categories. "We have a VIP jury for the entries, it will be a very glamorous event," said organiser Petra Terzi. "Cyprus offers several comparative advantages to filmmakers because of its landscape and climate," said Vakis Loizides of the Cyprus tourism board. Authorities were preparing a package of incentives to encourage studios to the island, he said.
Cyprus International Film Festival: http://www.ciff2006.com/

Divided Capital

A photo of a couple standing in front of the barrels that divide the Greek and Turkish Cypriot controlled areas at the UN buffer zone in the divided capital of Nicosia, Cyprus, on Friday, Feb. 17, 2006.

Reviving Peace Efforts

The Cypriot President will meet with U.N. Secretary-General Kofi Annan in Paris on February 28 to discuss reviving efforts to reunite the war divided island nation. U.N. spokesman Mr. Stephane Dujarric today confirmed the Cypriot government’s announcement of the meeting. The spokesman said the agenda will include reviewing the Cypriot issue and discussing ways of moving forward on reunification. Please read below for more details.

Tassos and Annan to meet in Paris

BY ANDREAS HADJIPAPAS

PRESIDENT Papadopoulos and UN Secretary-General Kofi Annan will meet in Paris on February 28 to explore ways of reviving the stalled Cyprus peace talks.

The crucial issue is whether the UN chief will be persuaded to appoint a special envoy for Cyprus who will shuttle between the two sides in order to see if there is enough common ground allowing the UN to launch a new initiative.

So far, the Secretary-General has been reluctant to do so, noting that there remained a wide gap between the sides.

He now wants to make sure any new effort will have reasonable chances of success.

Presidential Under-secretary Christodoulos Pashiardis said yesterday the President was "ready to listen but also to make concrete suggestions." This was seen as an indirect reply to critics, who have been claiming Papadopoulos is not keen to resume the peace process.

Papadopoulos, who has dismissed the Turkish "action plan" announced by Foreign Minister Abdullah Gul last month, is expected to present counter-proposals, involving the return of the deserted town of Varosha and the joint operation of Famagusta port under EU supervision.

The official announcement about the forthcoming Paris meeting said Papadopoulos and Annan had agreed to meet "in order to review and take stock of the situation in Cyprus and discuss ways of moving forward the process of reuniting the island."

Pashiardis said the two men would examine "effective ways of preparing the ground for the launching by the United Nations of a new effort to conduct meaningful talks with serious prospects of success".

Foreign Minister George Iacovou said that as a means of preparing the ground, the S-G could either appoint a resident representative, or send a high ranking UN official to the island periodically to carry out proximity talks between the sides and report back to him.

He stressed that this did not mean new talks were "imminent."

Reports suggest the aim is to see whether settlement talks, which grounded to a halt two years ago, can get off the ground by the summer, even th0ough most observers believe chances of a possible breakthrough will be better after the Turkish elections next year.

Iacovou said the important thing was to see whether the Turkish side was ready for "substantive" negotiations, after agreeing to consider "substantial changes" to the Annan Plan.

The Greek Cypriot side has already submitted to the UN a detailed list of changes to the Plan, which was rejected by the vast majority of Greek Cypriots in the May 2004 referendum.

The National Council will be meeting today under President Papadopoulos to review developments, following requests by the Opposition who have been expressing concern about the lack of movement, stressing that the protracted stagnation helped cement the island’s division. Iacovou said the Paris rendezvous showed that "there is mobility."

Papadopoulos is likely to tell Annan that any new UN brokered peace process musts see the full involvement of all five permanent members of the UN Security Council, not just of Britain and the US.

He also wants the European Union to play an active role in any new negotiations, since he insists that a settlement must be based on Security Council resolutions and the principles upon which the EU is founded.

President Papadopoulos leaves for Vienna on Sunday for a two-day working visit to Austria, which holds the rotating EU presidency.

He will meet Chancellor Wolfgang Schussel and Federal President Heinz Fischer, to explain Cyprus’s views on EU matters and efforts to resolve the problems of the divided island.

Turkish Cypriot leader Mehmet Ali Talat said yesterday he was ready to resume negotiations "on the basis of the Annan Plan".

He added: "The Secretary General will probably decide after his meeting with Mr Papadopoulos whether he will take a new initiative. I believe the S-G will take this initiative, if the Greek Cypriot leader really desires this, if the meeting is not just for creating positive impressions in view of the election period."

Greek Prime Minister Costas Caramanlis, speaking during a brief visit to Germany, said his government’s policy on Cyprus and other national issues "does not change, is stable."

He said Greece was willing to contribute to efforts to find a just, workable and sustainable solution to the Cyprus problem. The solution should conform with international law, UN resolutions and the principles and values of the European Union, of which Cyprus is already a member.

Meanwhile, US deputy assistant Secretary of State Mathew Bryza has again put off his planned visit to the island, originally set for last summer. Although he said in Brussels he hoped to visit the region later this month, the US Embassy informed the Foreign Ministry this week that Bryza would probably be coming "some time in the spring."

Cyprus Weekly, 18 - 25 February 2006