Turkey has presented UN Secretary-General Kofi Annan a proposal package aimed at settling the Cyprus issue.

Announcing the proposal package at a press conference yesterday (24 January), Turkish Foreign Minister Abdullah Gul said:

"The developments of 2005 have once again shown to all of us that the absence of a settlement in Cyprus is, first of all, contrary to the interests of both peoples on the Island. It has become obvious that the current status quo works against the interests of all, including the EU and the parties to the problem themselves.

So the priority should be given to finding a comprehensive settlement which would be lasting and just. Our Government maintains its conviction in that regard. Such a settlement in Cyprus under the good-offices mission of the UN Secretary General was within reach in 2004 and we believe that it is still attainable.

However, as the international community witnessed closely, despite the encouragement's and best efforts of the Turkish side, the developments last year did not give the UN Secretary-General sufficient ground to re-launch a new phase of the negotiation process, which would bring about the comprehensive settlement.

The impasse seems to be continuing. But, we have noted with satisfaction that the UN Secretary-General remains engaged with the issue, and that he is prepared to re-launch the process once the conditions are suitable.

Nevertheless, the prevailing conditions should not deter us from taking concrete steps forward, which are aimed at improving the overall atmosphere in the region. Implemented in good faith, these mutually complementary measures could also pave the way for re-launching of the UN negotiation process aiming at a comprehensive settlement.

Ladies and Gentlemen,

Today I wish to inform you that we are coming forward with a new initiative to show once again our commitment to this objective. The Action Plan is as follows:

"The UN Secretary General is kindly invited to consider holding consultations with the parties concerned with a view to implementing the Action Plan, the principal elements of which are outlined here below:

1. Opening of the sea ports of Turkey to Greek Cypriot vessels serving the trade of goods in accordance with the EC-Turkey Customs Union.

2. Allowing Greek Cypriot air carriers to use the Turkish air space for over-flights and to land at the Turkish airports in accordance with relevant international rules and procedures.

3. Opening of the ports in North Cyprus, including Gazimagosa, Girne, and Gemikonaðý to international traffic of goods, persons and services under Turkish Cypriot management.

4. Opening of Ercan airport for direct flights under the Turkish Cypriot management.

5. Special arrangements for the practical inclusion of North Cyprus, as an economic entity, into the European Union’s customs union. Unhindered direct trade between both sides of the Island as well as with the outside world.

6. Participation of the Turkish Cypriot side in international sports, cultural and other social activities.

We propose the following procedural steps for the implementation:

7. A high level meeting is to be convened no later than May/June 2006 under the auspices of the UN with the participation of Turkey, Greece, the Turkish Cypriot side and the Greek Cypriot side with a view to finalizing the draft action plan which will be implemented as an integrated whole within an agreed time frame.

8. The action plan and outcome of the meeting are to be submitted by the UN Secretary General to the UN Security Council. The UN Secretary General may wish to establish a mechanism to keep the implementation of the plan under review, with a view to regularly reporting any development to the Security Council.

9. The assistance, particularly to the Turkish Cypriot side, of the UN and the EU Commission will help facilitate the implementation of the proposed measures.

10. The action plan will, in no way, prejudice legal and political positions of the parties concerned. It is aimed at bringing about an environment of cooperation and mutual trust with a comprehensive settlement perspective to the Cyprus issue.

In this respect, Turkey remains committed to the efforts to achieve a comprehensive settlement of the Cyprus problem within the framework of UN Secretary-General’s mission of good offices and on the basis of the UN Secretary General’s settlement plan. Turkey earnestly hopes that an agreement on the comprehensive settlement will be reached in 2006."

We propose an Action Plan to be adopted and implemented in earnest as a whole. The gist of this proposal is the elimination of all restrictions for both sides in Cyprus, providing substantial benefits to all parties and promoting socio-economic development by reducing disparities.

The Action Plan is not a substitute for a mutually acceptable political solution. The fundamental objective remains a comprehensive settlement. Yet, this initiative has a strong potential to bring about a process that would facilitate a comprehensive settlement to the Cyprus question.

Neither does our proposal prejudice the respective legal and political positions of the relevant parties concerned. I wish to emphasize this point in particular.

The proposed Action Plan is based on the main idea of rapprochement amongst all. It is so devised that the relevant parties take mutual and complementary steps towards each other, gradually creating an environment of mutual trust and cooperation. The new initiative has been built on the premises laid down by our suggestions of 30 May 2005.

Under the Action Plan, Turkish sea ports and airports will be opened to Greek Cypriot sea vessels and air carriers. Likewise the sea ports and the airport in North Cyprus will be opened to international traffic.

The practical arrangements should envisage, under an established timetable, the removal of all obstacles to the free movement of goods, persons and services, including restrictions on means of transport. They should also provide the two sides in Cyprus with the perspective of economic integration within the EU customs union.

In the proposed Action Plan the UN Secretary-General is kindly invited to consider the Plan and take the lead. We also suggest the convening of a high level meeting under the auspices of the UNSG and with the participation of both sides in Cyprus, Turkey and Greece for the implementation of the Action Plan.

We call upon the international community to carefully study and extend active support to this proposal. We believe that the time has come to move forward all together, leaving behind restrictions and confrontation. We need to turn a new page. The new proposals that I announce today might well be the first step in that direction.

This new initiative also conforms with the repeated calls and expectations of the international community; particularly as expressed by the UN Secretary General in his report of 28 May 2004, the resolution of the EU Council of 26 April 2004, and various resolutions of the EU Parliament, the OIC and the Council of Europe, made after the referenda, with a view to integrating the Turkish Cypriots with the world.

It presents an opportunity to improve daily relations between the two sides on the Island; help stabilize the Eastern Mediterranean region; provide economic benefits for all; help two sides in Cyprus reach EU norms, standards and values; and integrate the Turkish Cypriots with the rest of the world, which has been a goal of the international community, including the EU, since mid-2004.

Briefly, the Action Plan provides an improved environment of trust and economic development in which concerned parties can work together towards a settlement.

We sincerely hope that Turkey’s package of proposals will be received and examined positively by the relevant parties.

Turkey, as in the past, is ready and willing to work with the UN Secretary-General and relevant parties for peace, stability and harmony".

Evaluating Turkey's new initiative on Cyprus, which was announced by Turkish Foreign Minister Abdullah Gul yesterday (24 January), President Talat said the Turkish Cypriot side would do whatever was necessary to implement the new Turkish initiative.

He said: "I want to stress that we are ready to engage in efforts to do whatever is necessary to implement this plan. In this context, in order to open our sea ports to international trade and our airports for direct flights the necessary measures must be taken and we must work on ensuring the Turkish Cypriot economy's participation as an entity in the joint market of the European Union. These are technical, administrative and legal responsibilities".

Indicating that the Turkish Cypriot side openly and strongly supported the new Turkish initiative, the President said Turkey presented the plan in order to overcome non-settlement and it would encourage mutual cooperation and stability between the two sides and prompt a settlement.

He added that during the plan's preparation the Turkish Cypriot side had been in constant consultation with the Turkish Government.

Highlighting that the plan was a comprehensive plan that took into consideration the EU's expectations from Turkey and the Greek Cypriot side and that the timing of its announcement was important, President Talat said: "This plan was presented because the impasse in the settlement process was clearly evident. We are heading towards a new impasse. The path outlined by Turkey is a new opening (for overcoming this impasse)".

Calling upon the Greek Cypriot side "not to immediately dismiss the plan", President Talat said he hoped Greek Cypriot Leader Tassos Papadopoulos would welcome this new extended hand of peace. He said: "This plan is reasonable, logical, modern and will increase stability and security in the region ".

Arriving on the island late last night (24 January) the UK Foreign Minister Jack Straw today (25 January) crossed over to the TRNC and meet with President Talat at the Presidential Palace at 11:30am.