1 JULY 1978, Page 22

II. The Territories of the Federated States and a Proposal for a Joint Water Project

It has to be recognised that the question of territory is closely related to the economic viability of both Communities and to the question of security. This problem was taken up between President Denktas and Archbishop Makarios at their meeting on 12th February 1977 and it was decided that the question of territory should be discussed "in the light of economic viability or productivity and land ownership". "Security" was the underlying principle on which these four guidelines were based. Therefore, it would be unrealistic to regard this problem from the viewpoint of percentages of population alone. Half of the whole Turkish Cypriot population has moved from South to North. Greek Cypriots have moved from North to South and an agreement for a voluntary exchange of population was reached in the third round of the inter-communal talks, whereby the two parties recognised that such an exchange was inevitable for the peaceful co-existence of the two Communities in Cyprus. The approach to the territorial problem, therefore, should be humanitarian and pragmatic having regard to this accepted necessity so that people who have been resettled after so many years of suffering should not be uprooted again. Where this is not fully possible one should settle the problem in such a way that a minimum number of people should be uprooted once again. Otherwise the movement of Turkish Cypriots from South to North would have been meaningless and their security needs would be totally ignored.

The Turkish Cypriot side is prepared to discuss the question of territory taking into consideration the above mentioned facts and within the context of the aforesaid guidelines agreed upon by President Denktas and Archbishop Makarios.

Furthermore, while considering the territorial aspect of the problem it would be appropriate to bear in mind the following: (a) The Turkish Cypriot Community is predominantly an agricultural society. Hence, the proportion of Turkish Cypriots depending on land is far greater than that of Greek Cypriots.

(b) Almost all direct or indirect foreign economic assistance given to Cyprus by international organisations since 1963 and more particularly since 1974 has almost exclusively been channelled to the Greek Cypriot Community. (c) As a result of the systematic policy of economic oppression pursued by the Greek Cypriot Administration against Turkish Cypriot Community since 1963, the economic development level of the Turkish Cypriot Community has remained far below that of the Greek Cypriot Community. While readjusting the existing line caution should be exercised so that the transfer of economic resources from the economically poorer to the richer Community would not further widen the economic gap and increase the tension between the two Communities.

When considering the proposals for the readjustment of the existing line between the Turkish Cypriot and Greek Cypriot zones, the following relevant economic facts should also be taken into account: I. Of forests only 22.6% fall within the Turkish Cypriot territory and the remaining 77.4% fall within the Greek Cypriot territory. The forests in the Greek Cypriot territory• have been about 95% more productive than the forests of the Turkish Cypriot territory.

2. Of about 40 existing streams only a quarter are situated in the Turkish Cypriot territory. There are only 8 active dams and reservoirs in the Turkish Cypriot area with a total storage capacity of 8 million cubic meters of water compared with 45 on the Greek Cypriot side with a total storage capacity of nearly six times as much.

3. The annual average rainfall is approximately three times higher on the Greek Cypriot side than on the Turkish Cypriot side.

4. As for the aquifers, two of the three main ones in the Turkish Cypriot area are already depleted and faced with destruction. Sea water has penetrated and salinised most of the Gazi Magusa (Famagusta) aquifer and the important part of the land in the area was dried up some years ago. The Guzelyurt (Morphou) aquifer faces the prospects of total loss in the immediate future unless serious precautions at the expense of millions of pounds are taken. On the contrary the aquifers on the Greek Cypriot side offer excellent prospects for utilisation and development.

5. Approximately 90% of the principal mines and quarries of economic value are situated in the Greek Cypriot area. 6. The only petroleum refinery is situated in the Greek Cypriot area. 7. The Mesarya (Mesaoria) plain is dry land giving one yield of crop on alternate basis a year so that half of the area is not cultivated each year whereas in the South land is irrigated and yields crops at least twice a year.

8. With more water made available land in both sectors can be made more productive so that the prosperity of the island as a whole is increased. A project costing about 150-200 million dollars for bringing water from Turkey to Cyprus is proposed by the Turkish Cypriot side as a matter for serious consideration.

With the above considerations in mind the Turkish Cypriot side is ready to enter into negotiations with the Greek Cypriot side for readjusting the line existing between the Turkish Cypriot and Greek Cypriot zones in Cyprus.

III. Maras (Varosha)

Due to the fact that Greek Cypriot armed elements chose to use Maras (Varosha) and the high buildings within it as attack posts against the Turkish Cypriot population of Gazi Magusa (Famagusta) where 14,000 Turkish Cypriots, including women and children, were trapped and suffered extensive casualties within the walled City from 20th July to 14th August, 1974, it became necessary for security reasons to extend the forward lines south of Maras (Varosha). Ever since Maras (Varosha) has remained uninhabited. Turkish Cypriot endeavours to bring back some or all of the hoteliers and other businessmen in order to activate the town and save the properties from destruction by the elements were fruitless because Greek Cypriot leaders, for political reasons, prevented these people from returning to their properties. The Turkish Cypriot side approaches the problem in ways which will enable a great number of Greek Cypriot owners to return to their properties, subject to certain conditions, while taking care of the security requirements of the Turkish Cypriots — particularly those living in Gazi Magusa (Famagusta), both within and outside the City Walls, as well as the security requirements of the Harbour, being the main commercial port of the Turkish Cypriot Community — and at the same time settling the problem, within the four guidelines agreed upon by the two leaders on 12th February 1977.