In its 2004 Human Rights Report, the US State Department stated that the Greek Cypriot Administration "was continuing to block any effort by Turkish Cypriot authorities or international parties to open Ercan airport or any port in the north for travel to destinations other than Turkey". The report said that, as a result of the Greek Cypriot side's EU membership, EU norms were applied in the South but not in the north.

The US State Department report stated that "the economy in the north was handicapped by restrictions imposed by the "Republic of Cyprus" and by international institutions".

Continuing the report also said that "in the weeks leading up to the April 24 2004 referendum on the Annan plan, there were reports that the Greek Cypriot government had pressured the media to support its position on the plan and had blocked international mediators (the UN Secretary-General's Special Representative to Cyprus, Alvaro de Soto, and the EU's former Enlargement Commissioner, Gunther Verheugen, from appearing on television".

The EU Ambassador to Cyprus, Adriaan Van Der Meer, on 1 March met with Prime Minister Mehmet Ali Talat and his accompanying delegation for lunch and discussed the progress being made on trade between the two sides in Cyprus within the framework of the Green Line Regulation.

Announcing that the new amendments to the Green Line Regulation were put into force on 27 February, Meer said these amendments meant that individuals could bring with them 135 Euro worth of goods, up to l litre of alcohol and two packets of cigarettes over the Green Line.

Responding to a question asked if the European Commission would put forward a new proposal to make approval of the Direct Trade Regulation much easier, Meer said for certain things to improve the European Commission was researching various ways but, was trying to do this through a restricted framework and diplomatic channels.

Meanwhile, speaking after the meeting, Prime Minister Talat said the Turkish Cypriot side had carried out its responsibilities and had some humanitarian requests. He said this request was the lifting of the isolation and the main regulation that should be implemented was direct trade and that the Turkish Cypriot side would not take a backward step on this issue.

In a decision taken in yesterday's (2 March) TRNC Council of Ministers meeting it was decided that individuals crossing over from the South to the North can now bring with them 135 Euro worth of goods, instead of the previous amount of 50 Euro, and that goods produced in South Cyprus could be imported to North Cyprus.

Pointing out that after yesterday's Council of Ministers meeting, amendments were also made to the regulation on trade arrangements with South Cyprus in the Foreign Trade Arrangement and Inspection Law, the Council of Ministers Spokesman, the Minister for Health and Social Welfare, Huseyin Celal, said in accordance with the decision taken by the Greek Cypriot Administration, the total cost of goods individuals could bring with them over the Green Line was increased from 50 Euro to 135 Euro. Celal said, in addition to this, goods produced by companies operating in South Cyprus could also be imported to the North through standard import procedures. He added the TRNC Ministry of Economy would publish a list of those goods that could be imported.

Speaking during his weekly press conference, the Spokesman of the Turkish Foreign Ministry, Namik Tan, denied the allegations made by the Greek Cypriot side that Turkey has sent arms to the TRNC. Pointing out that these allegations did not reflect the realities, Tan said these allegations were also denied in the statement issued by the US State Department.

The US State Department's Acting Spokesman, Adam Erely, has stated that "as long as the weapons in the TRNC are under the control of the Turkish troops", US made weapons possessed by the Turkish army in the TRNC were legitimate.

Denying allegations that "tanks were being brought to the TRNC", Erely said: "Nothing is being sent. These are weapons that belong to the Turkish government and the Turkish Armed Forces. We are not aware of any transfer of weapons and no laws have been violated. There are no developments to suggest that something has been carried out illegally or without obtaining the necessary permission".

Explaining that the tanks were made in the US but currently belonged to the Turkish government, Erely said: "They haven't transferred anything. They have control over these weapons and haven't transferred their control to anyone else".