THE ECONOMIC crisis could “open up” opportunities to end the frozen conflict on the island, said US Secretary of State John Kerry yesterday, adding that hydrocarbon prospects in Cyprus’ exclusive economic zone (EEZ) could be a part of that solution.
Foreign Minister Ioannis Kasoulides, in Washington to meet his American counterpart, countered that the three issues- economic crisis, gas and the Cyprus problem- were separate issues that could, however, be developed in parallel.
Standing next to the Cypriot minister in a brief address to the press before their 50-minute meeting, Kerry acknowledged that Cyprus was struggling with “very, very deep economic challenges” that required “difficult choices”.
The top American diplomat described Cyprus as “a very good friend of the United States”, adding that the US wanted to be helpful “in ways that we can be”.
Kerry said he looked forward to working with Kasoulides and President Nicos Anastasiades, along with others, “to try to move Cyprus forward on one of the world’s frozen conflicts”.
The Secretary of State said he has already spoken with Turkey’s Prime Minister Tayyip Erdogan and Foreign Minister Ahmet Davutoglu, as well as with the Greek Foreign Minister and Cypriot President about finding ways to solve the decades-old dispute.
“The United States supports a bizonal, bicommunal federation. We would like to see us unfreeze this conflict and be able to move to a resolution.”
He added: “I would hope that rather than preventing people from moving forward, the economic crisis in fact opens up opportunities. And needless to say, there are important possibilities of exploration off the coast of Cyprus with its economic zone, and that may even be able to be a part of a solution.”
For his part, Kasoulides noted Kerry’s “very keen interest” in the eastern Mediterranean, which he has already visited three times since his appointment.
The Cypriot minister said he wanted to discuss Cyprus not in isolation but as part of the wider picture in the region.
“We want to be and play the role of stability in this region and work with all the neighbours and with the United States,” he said.
Solving the “open wound” of the Cyprus problem remains the government’s “first and foremost desire”.
However, it wants to deal with peace efforts, as well as the issues of the economy and natural gas as three separate issues. If one reinforces the other, it’s through these parallel three roles, he added.
According to the Cyprus News Agency (CNA), following the meeting, diplomatic sources said Kerry showed understanding to the Cypriot desire to keep the peace process, economic crisis and exploitation of energy resources as separate issues.
At the same time, the US reportedly considers the natural gas issue could act as an incentive for a solution.
The same sources said Kerry heard with interest Kasoulides’ proposals for the return of the fenced off part of Famagusta to its lawful inhabitants as a confidence-building measure (CBM). The US diplomat will have the chance to sound out Erdogan and Davutoglu on the proposal when they visit Washington next week.
Kerry also offered US support regarding the economic crisis, to which Kasoulides suggested a review of the law on double taxation, which could encourage more US companies to operate in Cyprus.
“It was a very interesting discussion,” said Kasoulides, noting Kerry’s in-depth knowledge on what is happening in Cyprus, and the region in general.
“He has some ideas on how the US could help in the efforts. He accepted our suggestions, which he will gladly explore and we will keep in touch to see how we can continue with a view certainly always for a solution of the Cyprus problem, in a way which is fair and just towards Cyprus and the Cypriots,” said the Cypriot minister.
Asked if Kerry linked the crisis to a solution, Kasoulides replied: “As you heard him say, he has raised three issues. From the moment we have explained these three issues are not dependent on each other but can reinforce these three separate paths, I believe things are in the right perspective.”
Asked if Kerry raised the issue of putting a stop to hydrocarbon explorations in Cyprus’ EEZ, he replied: “Not at all, on the contrary.”
Before his Washington visit, Kasoulides also met with UN Secretary-General Ban Ki-moon in New York.
According to Kasouildes, Ban agreed to hold back the resumption of peace talks until the autumn, giving time for the new government to get a grip on the economic crisis enveloping Cyprus right now.
The government has been pushing with one voice for Turkey to take a massive step towards building trust between the opposing sides by opening up Famagusta in exchange for direct trade between the EU and the Turkish Cypriots and the unblocking of some frozen chapters in Turkey’s EU accession negotiations.
Kasoulides said the return of the fenced off part of Famagusta to its lawful inhabitants would be a “test of Turkey’s real intentions in Cyprus”.
Government spokesman Christos Stylianides yesterday pointed out the need to restore confidence and trust between Greek Cypriots and Turkish Cypriots before the resumption of talks.
Speaking to a Paralimni audience on Thursday evening, Anastasiades said a Cyprus solution remained a top priority. He called on Turkey to confirm with actions its stated desire for a solution: “For this reason, we believe that a significant step towards this would be the return of Famagusta to its rightful inhabitants and not through declarations or empty threats.”
During his US tour, the Cypriot minister also met with National Security Advisor to Joe Biden, Jake Sullivan, the American-Israeli Lobby, the Hellenic Caucus, the House Foreign Affairs Committee, the Senate Foreign Relations Committee as well as with the Israeli Ambassador in Washington.
Addressing a gathering at the Brookings Institution in Washington, the minister said Cyprus could cooperate both with Israel and with Lebanon and Egypt in the field of energy.
He noted that Cyprus is the only predictable neighbour of Israel, adding that a bad solution of the Cyprus problem would change that predictability, since it would allow Turkey to meddle in Cyprus’ internal affairs.
Meanwhile, UN spokesman Michel Bonnardeaux yesterday confirmed that UN Special Adviser Alexander Downer will host a dinner for the two leaders and their spouses on May 29 at the Chief of Mission’s residence in the United Nations Protected Area in Nicosia.
US Secretary of State John Kerry (right) with Foreign Minister Ioannis Kasoulides in Washington