Cyprus

Lord Wood of Anfield Excerpts

Tuesday 15th July 2014 Lords Chamber

[Lord Wood of Anfield (Lab)]

My Lords, I too thank the noble Lord, Lord Northbrook, for this debate. For 40 years we have seen moments of opportunity come and go but very little progress towards a settlement in Cyprus. Now, as many speakers have said, we have a moment of opportunity that we have not had since the Annan plan of 2004—the noble Baroness, Lady Hussein-Ece, referred to that—and possibly a moment we have not had since 1974.

The people of Cyprus deserve a settlement to bring stability, peace, settlement of long-standing grievances and issues, and the possibility of prosperity. The failure to achieve a settlement in Cyprus, however, also undermines the search for security in a crucial region that is a hinge between Europe and the Middle East. Instability in Cyprus continues to affect the function of the European Union and the ability of the European Union to co-operate effectively with NATO.

For our part, as many speakers have said, the UK has a special responsibility to be a supportive force for resolution because of our colonial past, because of our pivotal roles in the European Union and NATO, and because we are a guarantor power. This year it seems we have a moment for very cautious optimism but, as always, we need optimism grounded in realism.

I will make a few remarks about the principles of our party’s approach to achieving a settlement in Cyprus, to assess the progress in the process that began with the February declaration and to look at the wider issues that any successful process needs to address.

I will start by setting out our party’s approach. We are committed to a just and lasting settlement for the whole of Cyprus. That settlement has to be based on a bi-communal, bi-zonal federation. We strongly believe that, to use the formulation of the noble Lord, Lord Northbrook, a settlement has to be negotiated by Cypriots, for Cypriots and under the auspices of the UN. Only then will it be acceptable and provide for a just and sustainable solution.

While we do not support recognition for the Turkish Republic of Northern Cyprus, Turkish Cypriots have interests, aspirations and a burning desire for peace that are as valid as those of Greek Cypriots. Cyprus’s population is about 800,000, of whom 80% are Greek Cypriots and about 11% Turkish Cypriots, but, despite this numerical asymmetry, any just settlement must be based on the principle of equality of treatment of the two communities.

While peace has to be negotiated by Cypriots themselves, we believe that the UK has a privileged role. We are the main export market for Cyprus, and Cyprus punches above its weight as a destination for UK exports. As the noble Lord, Lord Maginnis, has reminded us, our historical role has been, to put it mildly, a chequered one. Britain took administrative control of Cyprus after the Congress of Berlin in 1878—a Disraeli special—and declared Cyprus a British colony in 1915. Under the terms of the 1960 treaty, we remain one of three guarantor powers.

Of course we have another role, as about 3% of the island of Cyprus is comprised of UK sovereign bases. In government, we proposed that about half the land in bases in Cyprus would be made available to a united island once a resolution was found. Will the Minister tell us the coalition Government’s position on that proposition now that negotiations have begun again?

Recent developments have given us some cause for hope, particularly the joint declaration process that started in February. The declaration signed by representatives of both communities marked the most significant breakthrough that we have had for at least 10 years. There are encouraging signs in the declaration of principles that can form the basis of a lasting settlement. The declaration confirms the unacceptability of the status quo. It commits to the integrity and identity of both Greek and Turkish Cypriot communities. It affirms respect for democratic principles, human rights and fundamental freedom. It states that,

“any settlement will be based on a bi-communal, bi-zonal federation with political equality”,

to form a single, sovereign Cyprus inside the European Union. It envisages a federal constitution,

“composed of two constituent states of equal status”,

legitimised by separate and simultaneous referenda.

These are all encouraging shared commitments. It is further encouragement that, although progress has been slow, there have been further meetings, most recently at the beginning of last week. The meeting seems to have made some limited progress—I am being more optimistic than my noble friend—on mutual confidence-building, and ended with a five-step road map being submitted to the Greek Cypriots by the Turkish Cypriot leadership and an agreement to meet again later this month.

I want to ask the Minister about reports that the Turkish Cypriot side has suggested a meeting with the guarantor powers, including the UK, at some point this year after discussions have begun on the highly vexed issue of territory on the island. Are the Government involved in discussions on participating in such a summit? What is the Government’s response to the Turkish Cypriot leader Eroglu’s proposal that the referenda take place before the year’s end?

The progress in negotiations is welcome to all of us, but we know that agreement has proved elusive in the past for good reasons. There are significant areas of disagreement and difficulty—issues that have sabotaged previous plans for the past 40 years.

First, there is the bundle of issues around territory, property and displaced persons. The legacy of both the violence of the early 1960s and the Turkish military intervention in 1974 is a complex set of issues around the need for land swaps, restitution of property, the status of areas such as Morphou and Famagusta, and church property on the island. It is estimated that around 200,000 Greek Cypriots were forced to leave their land in Northern Cyprus after 1974, and the issue of repatriation of new Turkish settlers on the island was a key factor in the unravelling of the Perez de Cuellar plan in the mid-1980s. These issues are the most sensitive of all and demand more than any other—

[Lord Maginnis of Drumglass]

I apologise for interrupting, but I did not pick up what the noble Lord said. Did he say that Greek Cypriots had to abandon their territory and did he fail to mention the fact that Turkish Cypriots—for example, on the site of the present airport in the south—had to abandon theirs? Did he overlook that point?

[Lord Wood of Anfield]

No, absolutely not. The noble Lord is absolutely right: Cypriots of both communities have had to leave land. Working out a final agreement on settlement and property restitution affects both communities. These issues demand more than any other a spirit of pragmatism, compromise and trust between the representatives of the two communities.

Secondly, there are the issues around the Cypriot economy and trade with the European Union and the neighbourhood. On the Greek side of the island, Cyprus has seriously suffered from the fallout of the financial crash and a bailout—or rather a bail-in, to be more accurate—of Cypriot banks which imposed a levy on depositors, in banks that were supposedly covered by a deposit insurance scheme. It was a move which in my view the EU would not have countenanced for the larger members of the EU but which was seen as okay for smaller ones.

Meanwhile, Turkish Cyprus continues to have no direct trade relations with the European Union. Ten years ago, the EU proposed giving more than €260 million to the Turkish Cypriots for infrastructure spending and to open up trade with them, but, sadly, very little progress has been made on this front in the past decade. I would like the Minister’s view on whether there is any prospect with the advent of a new Commission and a newly elected European Parliament for any limited progress in the next few months in that area.

Lastly, there is the question of constitutional arrangements. Prior to 1974, Cyprus had a constitution that one expert called,

“unique in its tortuous complexity”.

Of course, any constitutional arrangement that provides rights of self-government for two communities, as well as rules for decision-making at the federal level, is bound to be complex, but so-called consociational arrangements for countries with a history of conflict between two or more communities can take root and endure. I appreciate that these solutions take time, but can the Minister tell us whether any thinking is going on in the Government about offering assistance in the form of constitutional expertise to the communities?

There is a line in the February declaration that reads that,

“nothing is agreed until everything is agreed”.

It is a simple maxim, but a crucial one. If 2014 is, as the communities’ leaders seem to want it to be, the year in which a successful negotiation is concluded, they have to provide a credible and legitimate way through on all these issues and not just on some.

It is said of Aphrodite, who was born in Cyprus, that because of her beauty, other gods feared their rivalry over her would interrupt the peace among them. Surely it is time for us all to combine our efforts to ensure that peace and stability in Cyprus are interrupted no longer.