Golden formula on property

Turkish daily Hurriyet yesterday published a front page a report saying that the proposal on the property issue submitted by the Turkish Cypriot side was discussed and finalized during a summit in Turkey on June 18 attended by Turkish President Abdullah Gul, Foreign Minister Ahmet Davutoglu and Turkish Deputy Prime Minister Cemil Cicek.

The paper says describes the proposals as a “golden formula” to solve the property issue and says this opening package shocked both the Greek Cypriots and the United Nations.

It says that President Gul congratulated those involved in the preparation of the package, which is based on mutual gain with Cyprus becoming one massive construction site, representing the largest urban development in the world, while creating the funds necessary to support a solution.

The formula replies to the Greek Cypriot question of who will pay for the difference in property values if they agree to an exchange of properties between Greek Cypriot-owned land in the north and Turkish Cypriot properties in the south, with the answer being to allow for mass development on large plots of land administered by a property commission, staffed by Greek Cypriots and Turkish Cypriots.

Large plots of Turkish Cypriot land, such as in Limassol, Larnaca and Paphos, and would gain value after their “urban development”, and potentially raise enough funds for compensation to be provided to the displaced Greek Cypriots.
Theoretically, this is feasible as the Turkish Cypriot side claims to be in possession of nearly all Turkish Cypriot title deeds south of the buffer zone after a policy whereby they exchanged them for the property of Greek Cypriots left behind in the north.

This proposal would work on the assumption that Turkish Cypriots will not seek to return to their homes in villages and towns in Limassol, Larnaca and Paphos.

Another controversial component of the formula is that the title deeds of Varosha will also be included in the mix.

Hurriyet also reported that Greek Cypriots will be allowed to return to empty properties in the north immediately. Those that do not accept will be offered plots of public land or land owned by the church or Muslim charitable foundation Evkaf. The Turkish proposal reportedly stipulates that Greek Cypriots returning to their properties “will not exceed 15 per cent of the Turkish population there”.

The Cyprus Mail quotes a source close to the negotiations as saying that Turkish Cypriot-owned property in the government-controlled areas has a “trapped value” which has potential to rise. Rather than seeking permission from 20 land owners, for example, to develop on their properties, this proposal entails putting the land under one authority, the Property Development Corporation (PDC), which can then administer it accordingly, facilitating a programme of redevelopment and rehabilitation.

The proposal, for which the Turkish side cannot take full credit, given the impetus of UN experts in the talks, creates a situation whereby Turkish Cypriot-owned land in the south can be developed relatively easily and with much greater prospects for increasing its value exponentially. Any development should be based on environmental criteria to be agreed.

The PDC will have a range of options before it, including the power and funds to compensate, reinstate or relocate refugees. A feasible exchange of properties deals at least with one third of the property issue. Then there is the question of the level of restitution as well as the debate over the levels of compensation.
According to the source, one idea is to make Greek Cypriots and Turkish Cypriots invest in property across the island, along with Greece and Turkey, thereby, making all parties invest in the federation. If successful, this would translate into real progress on the property chapter while making a solution more economically attractive.

According to Bayrak television, Kudret Ozersay, Eroglu’s Special Representative, has said that the Christofias’ statements concerning the Turkish side’s proposals on property did not reflect the Greek Cypriot side’s true stance at the negotiating table.

He described Christofias’ latest statement as a pessimistic stance and said that the Turkish side was not very happy with the Greek Cypriot proposals either and that it was not possible for the two sides to place all their demands on the negotiating table.

Explaining that the Turkish side’s proposals had been carefully prepared with a certain degree of flexibility, Ozersay said that either domestic political concerns or Christofias’ upcoming address at the UN General Assembly were the reason for his statement.

“We don’t find this right. Both sides need to be flexible and show good will in order to achieve progress on the proposals tabled at the meetings” he said.

He also said that despite the Greek Cypriot side’s negative statements on the proposals, the Turkish side’s perception was different.

“Looking at the questions asked by Christofias at the last meeting, it is possible to say that the Greek Cypriot side is ready to discuss the proposals and to enter a give and take process. It seems he was interested. In any case if he wasn’t, he would have just criticized the proposals”, he said.

Ozersay was also quoted as saying the Limnitis crossing would be officially opened on October 14, with EU Enlargement Commissioner Stefan Fule in attendance.

US President Barack Obama yesterday commended the courage with which President Demetris Christofias has been trying to reach a solution, noting that division of the island has lasted a very long time.

During a special ceremony at the White House where new Cypriot Ambassador to the US Pavlos Anastassiades gave his credentials, Obama expressed the wish that Cyprus will be reunited soon.

The US president described Cyprus as an important ally for the US and noted the two countries’ cooperation in various fields including security, financial relations, economy and culture.

President Christofias leaves for New York today, where he will meet UN Secretary General Ban Ki-moon on Tuesday and address the UN General Assembly on Friday.

He will also give a speech at the New York University, attend a reception hosted by US President Barack Obama and have lunch with the leadership of the American Jewish Committee.

On September 28, Christofias will fly to Washington to inaugurate the exhibition ‘Cyprus: Crossroads of Civilizations’ at the Smithsonian’s National Museum of Natural History on the occasion of the 50th anniversary of the independence of the Republic of Cyprus.

Turksish daily Bakis reports that the former Turkish Cypriot leader, Rauf Denktash, has said that a new plan on the Cyprus problem might come to surface by the end of the year and warned that the Turkish Cypriots might “come face to face with new pressures”. He says that this plan will most probably be amended in favour of the Greek Cypriots and claimed that the “sovereignty of the Turkish Cypriot people” and the treaty of guarantees will not be included in this plan.

“Pressure will be exerted again on us. I do not know whether the Greek Cypriots will accept it or not, but the TRNC, our sovereignty, the guarantees are not included in the plan”.

He said that the moment the Turkish Cypriots are united with the Greek Cypriots and enter into the EU before Turkey does, the basis of the 1960 Treaty of Guarantees will cease to exist.

It is important for Turkey to stand solidly before the “dangers” and the Turkish Cypriots to defend their “state”. Denktash said that a “document of principles” might be tabled this time, instead of a 9000-paged agreement text. The paper also reports that the Turkish Cypriot leader, Dervis Eroglu was due to have lunch today with both Rauf Denktash and Mehmet Ali Talat.