Cyprus

Lord Kilclooney Excerpts

Tuesday 15th July 2014 Lords Chamber

[The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)]

My Lords, I thank my noble friend Lord Northbrook for calling this debate and for having it in the main Chamber. I thank other noble Lords for their valuable and eloquent contributions. I know that several noble Lords maintain close contacts with a range of Cypriot and Turkish interlocutors, and I commend their continued support for efforts to unify Cyprus. The interventions today have shown the full extent of the UK’s strategic interest in a comprehensive settlement in Cyprus. The Cypriots would be the main beneficiaries of a solution, for which they have waited too long, but, as noble Lords have pointed out, it is also right to be aware of the advantages for the wider region. I welcome the recognition given by many noble Lords to the intense efforts of this Government in support of the current round of talks. We will continue to support the UN and the leaders of both communities in these negotiations.

As part of our diplomatic efforts, my right honourable friend the Minister for Europe invited the two chief negotiators to London in June. They both showed determination and seriousness to negotiate a solution. It is not unusual at this stage of any peace talks for there to be disagreements on the process and on the substance. The two communities—and, just as importantly, Turkey—are showing the right level of ambition to reach a settlement. No one should underestimate the scale of the potential challenges ahead, but there has been no better time in recent years to achieve a lasting solution.

I am aware that today is the 40th anniversary of the coup. The difficult events of the summer of 1974 continue to cast a long shadow over Cyprus. This is a moment also to remember all those Cypriots who have been victims of violence since independence. At the time, British military intervention was seen as contradicting the long-standing UK policy of pursuing a peaceful settlement of the dispute by means of negotiations between the parties under the aegis of the UN. This Government’s focus is on supporting the reunification of Cyprus. If noble Lords want to examine the UK’s policy at the time, I refer them to the report of the House of Commons Select Committee on Cyprus which was published in 1976. In response to my noble friend Lord Balfe, I can confirm that the Government’s position has not changed and we do not recognise the so-called Turkish Republic of Northern Cyprus.

I understand that members of each community and noble Lords in this House tend to interpret past events in different ways, and indeed the exact population percentages are contested even today. I note the point made by the noble Lord, Lord Maginnis. I hope that he takes my comment about a previous speech of his being a “robust alternative critique” in a positive manner. I of course pay tribute to those British personnel who lost their lives during that emergency period, and the noble Lord, Lord Maginnis, referred to that. Given the long history of the negotiations, there is much valuable previous work to draw on, and we are encouraging both sides to establish areas of agreement on the unresolved core issues as soon as possible.

A number of noble Lords, including my noble friend Lord Northbrook, asked about the UN special adviser. We have discussed this matter with the UN and with the parties and of course support an early appointment. The previous special adviser, Alexander Downer, who was referred to in this debate, has made great efforts during the past six years to help the parties reach a solution. A new special adviser could help the parties achieve what they say they want, but the process, as a number of noble Lords have said, must be led by the Cypriots, who will need full ownership of any solution. I hope that my noble friend Lord Sharkey will understand if I am not drawn on names at this stage.

The noble Lord, Lord Harrison, and my noble friend Lady Hussein-Ece spoke about the current state of play. Noble Lords will be aware that talks resumed on 11 February. The leaders have since then met five times and we welcome their commitment to reach a solution. Both sides now have a much better sense of each other’s positions and concerns, and they have begun seeking the common ground in a number of areas. We hope to see further progress from September, when we expect a new UN special adviser to be in place. We would also consider what further political support the Security Council could give to the process, including during the United Nations General Assembly week.

Leaders in both communities also need to prepare the public for a settlement. My noble friend Lady Hussein-Ece spoke about the civil society being engaged. I fully agree with her recommendations. As negotiations make progress, greater civil society involvement is highly desirable. This Government have given practical support to increasing civil society participation in the process. Just yesterday, business leaders from both sides reached an agreement on mobile phone roaming across the whole of Cyprus. As the noble Lord, Lord Hannay, said, a better understanding of the benefits of a solution can only help ordinary Cypriots to make an informed decision in the referenda to come. I pay tribute to the work of the noble Lord, Lord Hannay, who for many years has given huge service and commitment to this cause.

Her Majesty’s Government have also co-funded, with the United Nations, an initiative to promote the involvement of civic and business leaders in the talks. We also maintain good relations with a wide spectrum of Cypriot society and with the diaspora in London. Faith groups, too, have given their backing to the current talks and our High Commissioner in Cyprus attended the landmark Good Friday church service in Famagusta. In May, my right honourable friend the Minister for Europe and the Archbishop of Cyprus met in London and agreed the importance of interfaith dialogue in support of the talks. For the first time since 1963, Muslim prayers were recently held in a historic mosque in Nicosia.

In response to the noble Lord, Lord Wood, I can confirm that the UK has maintained the offer to cede nearly half the sovereign base area territories in the event of a comprehensive settlement in Cyprus.

The noble Lord, Lord Hannay, and others have rightly spoken of the economic benefits of a settlement. A united Cyprus would benefit from a larger and more efficient economy and an improved investment climate.

[Lord Kilclooney (CB)]

When the Minister says we are prepared to cede our sovereign territories to Cyprus, to which part of Cyprus does she mean? To the Greek Cypriot part if there is a settlement, to the Turkish Cypriot part if there is a settlement, or to both parts?

[Baroness Warsi]

We hope that the settlement will ensure that there is a united Cyprus.

A united Cyprus would benefit from a larger and more efficient economy, an improved investment climate and improved trading relations with Turkey and the wider Middle East. A solution would also allow Cyprus fully to exploit its natural resources. I welcome the increased attention being paid to the economic dimension. More than a year after the bailout agreement, the Cypriot economy is doing better than expected, but there are challenges ahead. We are providing technical assistance in the area of public sector reform to support Cyprus’s efforts to implement the troika memorandum, which sets out the framework for troika support to the Cypriot economy. I hope that the noble Lord, Lord Harrison, will see that as part of the UK’s support for public sector reform.

The noble Lord, Lord Harrison, also raised the issue of direct flights. This would, of course, help. The UK Court of Appeal has confirmed that direct flights from the UK to the northern part of Cyprus would breach our obligations under international law. The court found that it was for the Republic of Cyprus to determine which airports are open to international traffic, and as a result no airlines are licensed to operate flights from the UK direct to the north of Cyprus. The UK supports the European Commission’s proposal for a direct trade regulation to enhance the Turkish Cypriot community’s access to EU markets. Disagreements over the legal basis mean that this has not yet been agreed. A comprehensive settlement to the Cyprus problem would mean that such measures would not be required, since the whole island would enjoy the benefits of EU membership.

The noble Lord, Lord Harrison, asked about UK support at the time of the financial crisis. For a settlement to work, the Turkish Cypriot constituent state will need to be ready to function as part of a united Cyprus within the EU. Since 2004, the UK and the EU have funded a range of projects, including during the period of the financial crisis, supporting modernisation of the public administration, which we think is necessary in order to be ready for a settlement. Now that talks have resumed and are making progress, it may be time to look again at what more the EU could do so that a settlement is viable.

My noble friend Lord Balfe spoke about Turkish Cypriot isolation. The UK remains committed to supporting the economic development of the Turkish Cypriot community and bringing Turkish Cypriots closer to Europe. They are, after all, EU citizens. The status quo is, of course, difficult for all Cypriots, and the Turkish Cypriots in particular feel the effects of Cyprus’s division.