Background Notes, 1992
Background Notes: Cyprus
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Mar 15, 19923/15/92
Category: Country Data
Region: Europe
Country: Cyprus
Subject: Cultural Exchange, Military Affairs, Travel,
History, International Organizations,
Trade/Economics
[TEXT]
Official Name: Republic of Cyprus
PROFILE
Geography
Area: 9,251 sq. km. (3,572 sq. mi.); about the size of Connecticut.
Cities: Capital--Nicosia (pop. 164,400). Other cities--Limassol,
Larnaca, Famagusta, Kyrenia, Paphos. Terrain: Central plain with
mountain ranges to the north and south. Climate: Mediterranean
with hot, dry summers and cool, wet winters.
People
Nationality: Noun and adjective--Cypriot(s). Population (1991):
735,000. Greek area: 565,000; Turkish area: 170,000. Annual
growth rate: 1%. Ethnic groups: Greek (78%), Turkish (18%),
Armenian and other (4%). Religions: Greek Orthodox, Muslim,
Maronite, Roman Catholic, Armenian. Languages: Greek, Turkish,
English. Education: Years compulsory-- 6 in elementary; 3 in high
school. Attendance--almost 100%. Literacy--about 99%. Health
(1990): Infant mortality rate--10/1,000. Life expectancy--73 yrs.
males; 78 yrs. females. Work force (1991): Greek area--280,000:
trade and tourism-- 24%; industry--20%; agriculture--15%; public
services--6%. Turkish area--74,000: agriculture--29%; public
services--22%; industry--10%; trade and tourism--10%.
1 Figures cited are for the Greek Cypriot Community, unless
otherwise noted.
Government
Type: Republic. Independence: August 16, 1960. Constitution:
August 16, 1960.
Branches: Executive--president elected to 5-yr. term.
Legislative--unicameral House of Representatives, members
elected to 5-yr. terms. Judicial--Supreme Court; six district
courts. Administrative subdivisions: six.
Political parties: Greek Cypriot Community--Democratic Rally
(right); Democratic (center-right); AKEL (communist); EDEK
(socialist). Turkish Cypriot Community--National Unity (center-
right); Republican Turkish (Marxist); Communal Liberation (left);
New Dawn (right); Free Democratic (center); Social Democratic
(center-left). Suffrage: Universal at age 18.
Central government budget (1991): Total revenue--$1.2
billion; Total expenditure--$2 billion; Development spending--
$206 million. Fiscal deficit reached $285 million (5% of GDP) in
1991.
Defense (1991 est.): $379 million (6% of GDP).
Flag: Against a white background, island's shape in gold above
two crossed olive branches.
Economy
GNP (1991): $5.9 billion. Per capita income (1991): Greek
Cypriots--$9,970; Turkish Cypriots--about $3,500.
Natural resources: Pyrites, copper, asbestos, gypsum, lumber,
salt, marble, clay, earth pigment.
Agriculture (7% of GDP): Products--Potatoes and other
vegetables, citrus fruits, olives, grapes, wheat, carob seeds.
Industry (18% of GDP): Types--mining, chemicals, non-
electric machinery, clothing, footwear, beverages, cement.
Services and Tourism (50% of GDP): Trade, restaurants, and
hotels 23%; finance, insurance, real estate, and business 15%;
transport, storage, and communication 10%.
Trade (1991): Exports--$838 million: citrus, grapes, wine,
potatoes, clothing, footwear. Major markets--EC (especially the
UK), Middle East. Imports-- $2.3 billion: consumer goods,
petroleum and lubricants, food and feed grains. Major suppliers--EC
(especially the UK), Japan, Exchange Rate: US$2.30=1 Cyprus pound.
Fiscal year: Calendar year.
OVERVIEW
Cyprus has been divided since the Turkish military intervention of
1974, following a coup directed from Greece. Since then, the
southern part of the country has been under the control of the
Government of Cyprus and the northern part under an autonomous
Turkish-Cypriot administration supported by the presence of
Turkish troops. In 1983, that administration proclaimed itself the
"Turkish Republic of Northern Cyprus," recognized only by Turkey.
UN peace-keeping forces maintain a buffer zone between the two
sides.
PEOPLE AND HISTORY
Greek and Turkish Cypriots share many customs but maintain
distinct identities based on religion, language, and close ties with
their respective motherlands. Greek and Turkish are official
languages in their sectors. English is widely used.
Cyprus has a well-developed system of primary and secondary
education. Cypriots traditionally have received higher education at
Greek, Turkish, or British universities. Growing numbers also are
being educated in the United States. Separate institutions of higher
education on the island have been developed by both the Turkish and
Greek communities.
Cypriot culture is among the oldest in the Mediterranean. By
BC 3700, the island was well inhabited, a crossroads between East
and West. The island fell successively under Assyrian, Egyptian,
Persian, Greek, and Roman domination. For 800 years, beginning in
364 AD, Cyprus was ruled by Byzantium. After brief possession by
Richard the Lion-Hearted, the island came under Frankish control in
the late 12th century. It was ceded to the Venetian Republic in
1489 and acquired by the Ottoman Turks in 1571. The Ottomans
applied the millet system to Cyprus, under which non-Muslim
minorities were governed by their religious authorities. This
system reinforced the position of the church and the cohesion of the
ethnic Greek population. Most of the Turks who settled on the
island during the three centuries of Ottoman rule remained when
control of Cyprus, although not sovereignty, was ceded to the
United Kingdom in 1878. Many, however, left for Turkey during the
1920s. The island was annexed formally by the UK in 1914 at the
outbreak of World War I and became a crown colony in 1925.
Cyprus gained its independence from the UK in 1960, after an
anti-UK campaign by the Greek Cypriot EOKA (National Organization
of Cypriot Fighters), a guerrilla group which desired political union
with Greece, in a process known as enosis. Archbishop Makarios, a
charismatic religious and political leader, was elected President.
Shortly after the founding of the republic, serious differences
arose between the two communities over the implementation and
interpretation of the constitution. Intercommunal fighting erupted
in December 1963, after which Turkish Cypriots, in their view,
were forced to withdraw from most national institutions and began
to administer their own affairs. UN peacekeepers have been on the
island since 1964.
In 1974, a military junta in Athens sponsored a coup in
Nicosia led by extremist Greek Cypriots supporting union with
Greece. The junta had been hostile to Makarios for alleged pro-
communist leanings and for what was perceived as President
Makarios' abandonment of enosis. Turkey, citing the 1960 Treaty of
Guarantee, intervened militarily to protect Turkish Cypriots.
In a two-stage offensive, Turkish troops took control of 38%
of the island. Many Greek Cypriots fled south while Turkish
Cypriots fled north. After a cease-fire was declared, a large-scale
population transfer occurred.
GOVERNMENT
Since 1974, Cyprus has been divided de facto into two areas. The
Government of the Republic of Cyprus has continued as the
internationally recognized authority, but, in practice, its power
extends only to the Greek Cypriot-controlled areas.
The 1960 Cypriot Constitution provided for a presidential
system of government with independent executive, legislative, and
judicial branches, as well as a complex system of checks and
balances, including a weighted power-sharing ratio designed to
protect the interests of the Turkish Cypriots. The executive, for
example, was headed by a Greek Cypriot president and a Turkish
Cypriot vice president, elected by their respective communities for
5-year terms and possessing a right of veto over certain types of
legislation and executive decisions.
Certain provisions of the constitution were never fully
implemented. The Greek Cypriots argued that the complex
mechanisms introduced to protect Turkish Cypriot interests were
obstacles to efficient government. In November 1963, President
Makarios advanced a series of constitutional amendments designed
to eliminate some of these special provisions. The Turkish Cypriots
opposed such changes. The confrontation prompted widespread
intercommunal fighting, after which Turkish Cypriot participation
ceased in the central government. Following a further outbreak of
intercommunal violence in 1967-68, a Turkish Cypriot provisional
administration was formed.
In February 1975, the Turkish Cypriots formally set up their
own government with a popularly elected president and a prime
minister responsible to the National Assembly exercising joint
executive powers. In 1983, the Turkish Cypriots declared the
independence of the "Turkish Republic of Northern Cyprus" (TRNC)
and in 1985 adopted a constitution and held elections; this
arrangement is recognized only by Turkey.
Principal Government Officials
President--George Vassiliou Takis Nemitsas Christofides
Foreign Minister--George Iacovou
Ambassador to the United States--Michaelis Sherifis
Ambassador to the United Nations--Andreas Mavrommatis
Cyprus maintains an Embassy in the United States at 2211 R
Street NW, Washington, DC 20008 (tel. 202-462-5772). The Cypriot
Consulate General is located in New York City and Cypriot Honorary
Consuls are in Atlanta, Baton Rouge, Chicago, Fort Wayne, Houston,
Los Angeles, Oakland, Philadelphia, Phoenix, Portland, San
Francisco, St. Louis, Rochester, MN., and Wellesley, MA. Cyprus also
maintains a trade center at 13 East 40th Street, New York, NY
10016 (tel. 212-686-6016). The Turkish Cypriots maintain offices
in Washington and at the Turkish Mission to the United Nations in
New York.
POLITICAL CONDITIONS
Both the Republic of Cyprus and the "TRNC" have active multi-party
political systems. There are four major Greek Cypriot political
parties--the conservative Democratic Rally, the center-right
Democratic Party, socialist EDEK, and communist AKEL. None has
been able to elect a president by itself or dominate the 56-seat
House of Representatives.
President Vassiliou, a successful businessman elected in
1988 as an independent with backing from AKEL, faces pressures
from the party of former President Spyros Kyprianou and the
Socialist party led by Vassos Lyssarides. Both are considered less
flexible on settlement issues than the President. The 165,000
Greek Cypriot refugees are also a potent political force, along with
the Orthodox Church of Cyprus, an independent branch of Greek
Orthodoxy which exercises broad influence in temporal as well as
ecclesiastical matters.
On the Turkish Cypriot side, the National Unity Party founded
by current "TRNC President" Rauf Denktash, controls all but five
seats in the assembly. The two main opposition parties--the
leftist Republican Turkish Party and the Communal Liberation
Party--have boycotted the assembly since they lost a critical
general election in May 1990. They contend that election rules were
unfair and that the Turkish mainland had intervened unfairly during
the campaign. One month earlier, Denktash, running without party
affiliation, was re-elected with 67% of the votes.
Efforts to develop institutional arrangements acceptable to
both communities have been made almost since the founding of the
republic. UN-sponsored negotiations began in 1968. Since 1975,
there have been several sets of negotiations and other initiatives.
Despite setbacks, discussions continue to focus on ways to
establish a new constitutional arrangement for the State of Cyprus
that will regulate the relations of the two communities on a
federal, bicommunal, and bizonal basis. Turkish Cypriots place
emphasis on bizonality, security guarantees, and political equality
of the two communities. Greek Cypriots emphasize the rights of
movement, property, settlement, and the return of territory.
Turkish Cypriots favor a federation of two nearly autonomous
societies living side by side with limited contact, while Greek
Cypriots envision a more integrated structure.
Talks between Greek Cypriot President Vassiliou and Turkish
Cypriot leader Denktash have taken place since 1988. UN efforts
continue, with Security Council Resolutions 649 (1990) and 716
(1991) calling on both communities to negotiate on an equal footing
and to complete an overall framework agreement.
ECONOMY
The economy of the Republic of Cyprus has made a dramatic
recovery from the 1974 hostilities which created more than
230,000 jobless and homeless refugees across the island. Cyprus
benefited from the mid-1970's economic boom in the Middle East
and from its evolution as a substitute base for multinational
companies fleeing civil war in Lebanon. Already a signatory of a
custom's union agreement with the European Community (EC), which
provides for gradual elimination of bilateral customs duties on 82%
of goods traded, the government applied for full membership in the
EC in 1990.
The economy has shifted from agriculture to light
manufacturing (especially of clothing and footwear) and services
and expanded rapidly in 1990 due to strong growth of domestic
demand and tourism. The government is promoting industrial
restructuring toward "flexible specialization" aimed at penetrating
new markets, especially in Europe. Tourism--which has rebounded
after a decline due to the Gulf war--is a vital source of foreign
exchange and a strong stimulus to growth. More than 1.5 million
tourists visited Cyprus in 1990.
GNP of the government-controlled area grew by 6% in 1990,
topping the 5.6% average growth rate during previous decade.
Unemployment declined further to 1.8% of the workforce. Severe
labor shortages were felt in tourism, industry, and agriculture.
Agriculture fell to 6.8% of the GNP in 1990 and accounted for
14% of employment and 26% of total exports. Potatoes and citrus
are the principal export crops. Cyprus subsidizes vineyards and
winemaking and has an annual glut of unsold wine. The island has
few natural resources and must import fuels, most raw materials,
heavy machinery, and transportation equipment.
A drop in tourist arrivals due to the Gulf war, drought, and
the government's failure to enact tax revisions all had a negative
impact on state finances in 1990, which saw the deficit rise to
5.1% of GDP--more than double 1990 levels. However, the deficit
is forecast to drop to 3.5% of GDP in 1992, well above
administration targets. The trade deficit has increased steadily
from $281 million in 1973 to $1.5 billion in 1991, but other
earnings--mostly from tourism--have kept pace, resulting in a
favorable trade balance.
Turkish Cypriot Economics
The economic disparity between the two communities is
pronounced. In 1991, Turkish Cypriot per capita income was about
$3,500; for Greek Cypriots it rose to $9,970. The Turkish Cypriot
economy suffers from a lack of private and governmental
investment, and shortages of skilled labor and experienced
managers. The Government of Cyprus has sought, with some
success, to limit economic interaction between the Turkish Cypriot
sector and the outside world.
Agriculture is waning as an economic mainstay. Recent
measures have provided subsidized credits for investing in tourism,
an area which Turkish Cypriots are working to develop. As in the
south, earnings from tourism largely offset the merchandise trade
deficit. Four-fifths of visitors to the north are from Turkey.
The common unit of account among Turkish Cypriots is the
Turkish lira, subject to 70% inflation in 1990. Financial reforms
have instituted a free market in foreign exchange and authorized
residents to hold foreign-currency denominated bank accounts. This
encouraged transfers from Turkish Cypriots abroad, resulting in a
construction boom, imports, and customs duties. Local revenues
now cover about 80% of current needs of the authorities.
Commercial bank credit available to Turkish Cypriots, however, is
only 7% of that extended in the Greek Cypriot south.
Turkey is the major source of development assistance and of
imports; the EC is the primary destination of exports, which consist
principally of citrus.
DEFENSE
Since independence, the Republic of Cyprus has been a neutral
country and a member of the Non-aligned Movement. It is not a
member of any military alliance. Troops of five official military
organizations, however, are based in Cypriot territory: Greek
Cypriot, Turkish Cypriot, mainland Greek, mainland Turkish, and the
UN Force in Cyprus (UNFICYP).
The Greek Cypriot community requires compulsory military
service for males following secondary education. The Greek Cypriot
National Guard numbers about 10,000, with 65,000 reserves. Many
senior officers of the Greek Cypriot National Guard and a number of
its personnel are Greek army regulars. A separate mainland Greek
military contingent also is stationed in the Republic of Cyprus.
A 4,500 troop Turkish Cypriot Security Force, originally
designed to protect Turkish Cypriot enclaves before 1974, is also
based on compulsory military service for Turkish Cypriot males. In
addition to the estimated 30,000 Turkish military forces stationed
on Cyprus, Turkish regulars provide a significant portion of the
leadership of the Turkish Cypriot Security Force.
UNICYP has about 2,200 troops with military contingents from
the UK , Canada, Austria, and Denmark, as well as civilian police
from Australia and Sweden and smaller units from Finland and
Ireland. The UN force patrols the cease-fire buffer zone, known as
the "green line," between the two communities. In addition, British
forces are stationed at two Sovereign Base Areas on the southern
coast of the island.
FOREIGN RELATIONS
The Government of Cyprus follows a non-aligned foreign policy,
although it identifies with the West in its cultural affinities and
trade patterns and maintains close relations with Greece. Turkey
does not recognize the Government of Cyprus.
Since 1974, the foreign policy of the Government of Cyprus
has sought the withdrawal of Turkish forces and the most favorable
constitutional and territorial settlement possible. This campaign
has been pursued primarily through international forums such as
the United Nations and the Non-aligned Movement. In 1990, Greek
Cypriot popular and political support for membership in the
European Community spurred the government to make a formal
application to the EC--despite bitter objections from the Turkish
Cypriots, who argued that such a move required their consent.
US-CYPRIOT RELATIONS
The United States regards the status quo on Cyprus as unacceptable.
Successive US Administrations have viewed UN-led intercommunal
negotiations as the best means to achieve a lasting settlement. The
United States will continue actively to support and aid the UN
Security Council's efforts. Since 1981, the United States has had a
Special Cyprus Coordinator--currently Ambassador Nelson Ledsky.
The United States has channeled $260 million in assistance to
the two communities through the UN High Commissioner for
Refugees and the Cyprus Red Cross since the mid-1970s. The
United States now provides $15 million annually to promote
bicommunal projects and finance scholarships for Cypriot students.
The United States has been the largest financial contributor
to UNFICYP since the creation of the force in 1964. By November
1990, the US had contributed 48%--$203 million out of a total $424
million--to the UNFICYP account.
Principal US Officials
Ambassador--Robert E. Lamb
Deputy Chief of Mission Carolyn R. Huggins
Chief Political Officer--Donald Braum
Economic/Commercial Officer--Trevor Evans
Defense Attache--Lt. Col. Thomas Haase
Public Affairs Officer-- Marcelle Wahba
Consular Officer--Cynthia Stockbridge
The US Embassy in Cyprus is located at Therissos Street and
Dositheos Street, Nicosia; US mailing address: PSC 815, FPO-AE
09836-0001. Tel. [357] (2) 465151 through 465155; Telex 4160
AMEMY CY ; Fax: [357] (2) 459-571.
TRAVEL NOTES
Climate and customs: Climate is comparable to the southern
Atlantic states. Clothing and shoe requirements are similar to
those in Washington, DC. December through March are rainy;
summer temperatures often exceed 380C (1000F) with low
humidity. Americans do not need a visa to enter Cyprus.
Health: Medical facilities are available. Tapwater is safe.
Telecommunications: Telephone and telegraph communications
within Cyprus and to international points are good. There are few
telephone links between north and south Cyprus. Nicosia is seven
time zones ahead of eastern standard time.
Transportation: Larnaca International and Paphos International
Airports, and the ports of Limassol, Larnaca, and Paphos are the
only legal ports of entry and exit to the Republic of Cyprus. Ships
carrying cargo and passengers call regularly at Larnaca and
Limassol, the principal southern ports. Ercan and Gecitkale
Airports in the Turkish Cypriot area are served by Turkish Airlines
but are not recognized by the International Civil Aviation
Organization.
Visitors arriving in the north are not permitted to visit the
Republic of Cyprus in the south. Visitors arriving in the south from
abroad can often obtain permission from the Government of Cyprus
and from Turkish Cypriot officials to visit the north, but travelers
with luggage and those suspected of intending to depart Cyprus
from the north probably will be prohibited from crossing. The
American Embassy in Nicosia is able to advise travelers of current
requirements. Buses and taxis are the only forms of local public
transportation. There are no trains on the island. In Nicosia, good
taxi service is always available at moderate prices.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington, DC
-- March 1992 -- Editor: Deborah Guido-O'Grady
Department of State Publication 7932--Background Notes Series --
This material is in the public domain and may be reprinted without
permission; citation of this source is appreciated.
For sale by the Superintendent of Documents, US Government
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