$Unique_ID{COW01048} $Pretitle{222} $Title{Cyprus Economic integration of the occupied part of Cyprus with Turkey} $Subtitle{} $Author{Embassy of Cyprus, Washington DC} $Affiliation{Embassy of Cyprus, Washington DC} $Subject{turkish turkey protocol economic cypriot area occupied trnc cyprus government} $Date{1988} $Log{} Country: Cyprus Book: Cyprus, Torn Apart by Warring Factions Author: Embassy of Cyprus, Washington DC Affiliation: Embassy of Cyprus, Washington DC Date: 1988 Economic integration of the occupied part of Cyprus with Turkey The economic integration of the occupied area of Cyprus with Turkey which began soon after the Turkish invasion of Cyprus in 1974 has been made official with the economic "protocol" signed between Turkey and the "TRNC" to enforce Turkish Prime Minister, Ozal's economic suggestions for the occupied area. It is interesting to note that Eroglu, the present "Prime Minister" of the "TRNC" in November 1983, said that his party (the NUP founded by Denktash in 1976) aimed at "integration with Turkey on all levels". It is obvious from reactions appearing in the press both to the "protocol" and to the ever increasing attachment to Turkey, that this is by no means the primary aim of the Turkish Cypriot community. Although it may appear prima facie that the "protocol" envisages integration only on the economic level, it is blatantly obvious to all that what in reality it means is the subjugation of the "TRNC" to Turkey on all levels. That is why the vast majority in the Turkish Cypriot community and all parties (except the NUP which applauded it and the settlers' New Birth Party (NBP) which remained passive) reacted so strongly against it. The "protocol" was simply the formalization of the agreement Turgut Ozal made with the Turkish Cypriot "government" last July; and both that agreement and Ozal's visit to the occupied area had raised a storm of protests to the extent of bringing down the "government". A coalition between the NUP and the Turkish settlers' party the NBP, had to be hastily formed which promptly agreed to implement the economic agreement. The previous coalition partner of the NUP, Mr Bozkurt's Communal Liberation Party (centre-right) objected so strongly to the application of Ozal's economic package that it saw no other alternative but to withdraw from the "government". The main opposition party, Mr. Ozgur's Republican Turkish Party (RTP, left) called for early "elections". No "elections" were held. Instead, obviously with the Turkish Government's blessings, a new coalition was formed. The new partner presented no problem as far as economic subjugation to Turkey was concerned, but that is not of course the only significant thing. Turkey now openly runs the show. The NBP is the party of imported Turkish settlers who were brought to the occupied area of Cyprus as voting force for the reactionary Denktash faction and as perpetrators of the Turkish expansionist policies on Cyprus. These people have nothing in common with the Turkish Cypriot population who are realising with bitterness and disappointment that they no longer have a real say in the running of the occupied area and that their votes no longer truly count. Only the day before the announcement of the new coalition, Zeki Erkut in an article in the Turkish Cypriot daily YENIDUZEN (1.9.86), referring to a statement by Besesler that he wanted to be a partner in the "government" to serve the grass roots of his party, characteristically says: "Who are your grass roots? To whom are your grass roots mortgaged? Who has turned you into a party? From whom do you get support and strength?". The clear accusation here is that the NBP is not a party of Turkish Cypriots and Erkut makes this even clearer by saying that the "bargaining" between the two parties for the formation of a coalition was a sham, as the last word was spoken by Ankara in the form of "either you apply this economic package which I have imposed on you or find governments which will apply it". This "government" has been found, says Erkut, and adds: "Dervis Bey has taken directives during his Ankara visit, whereas Besesler is not in a position to express views or bargain. He is one who has to obey orders." Finally, the NBP which will negatively affect the fate of the Turkish Cypriot community are setting up a government. But is it not necessary to ask: "In whose name are you forming this government? How can a government, formed with the authorisation of Ankara, represent the Turkish Cypriot community and govern it? If your government is set up who will you serve? Your grass roots? That is, one of you the exploiters and the others the imported voters?" Much earlier, RTP leader Ozgur (YENIDUZEN 7.7.86) referring to Ozal's economic package and a possible NUP-NBP coalition said: "Anyone listening to Ozal would think him a Sultan who has very recently ascended on his father's throne" and added: "To try and change the economic structure of Cyprus by bringing together the controlled NBP with the NUP would mean direct intervention in the democratic life (whatever of it exists) in Cyprus". There is no shortage of such comments. Reaction to both the package and the coalition was so widespread as to be virtually unanimous. The Turkish Cypriot community both realises that it is being gradually subjugated to Turkey in every way and on every level and objects. We shall not cite all the numerous articles in the Turkish Cypriot press to this effect. Suffice it to say that Arif Hasan Tahsin in SOZ (29.8.86) once again says that the Turkish Cypriots are being exploited by the settlers and the Denktash regime which they prop up and that, if the truth were known, the Turkish Cypriots "never voted for the NUP". Tahsin in the same article says that an NUP-NBP coalition would still be a minority "government" as they only account for 45.5% of the votes while the percentage of votes in the opposition is 54.5%. Mr. Tahsin concludes: "With the NBP, will not the monopoly of the Turkish Cypriot administration, through votes brought in from Turkey be exposed before world public opinion in a very obvious way?...Is there anyone who does not know that the NBP's founder is the Turkish Ambassador?. Will an NUP-NBP coalition not mean that the Turkish government has officially laid hands on the north Cyprus Republic? Will Mr. Denktash be able to face this situation at the UN? Let us put aside UN reaction. What about the reaction of the Turkish Cypriots? Or will all the Turkish Cypriots be declared `traitors' in the face of such a situation?" How could it be put more clearly? The upshot of the matter is Turkey controls the so-called "TRNC" in every way, and the final aim is annexation. Illegal "Bayrak" radio station (3.9.86) expounding on the new coalition's foreign policy says that the new "government" believes that the Turkish Cypriots are an indivisible part of the Turkish nation and declares that relations with Turkey will be developed as a matter of priority, and that "everything will be done toward unification with Turkey on every issue". According to the same principles, says "Bayrak", the coalition will act within Ataturk's principles, in total attachment to Turkey and will always fight with faith and determination against any type of action which will weaken the ties with Turkey. So, it would appear, Turkey now controls the play in the "TRNC" not from the wings but from the stage and it is not surprising that the Turkish Cypriot community was, and is, up in arms about Ozal's visit, his economic package and the political changes it brought to the occupied area. A characteristic reaction by Ozker Ozgur, published in YENIDUZEN (10.7.86) was that Denktash in this matter as in all saw himself as the "elected governor of north Cyprus and not the president of the Turkish Cypriots". As long as this happened the Turkish Cypriots would not be able to develop an identity for themselves as distinct from the Turks. Ozgur goes on to say that the mentality that "everyone coming and going (in Turkey) are our bosses" prevailed in the occupied area as it did in Cyprus in the colonial days. Ozgur concludes: "Today we can be considered a little more advanced, because we elect our own `governor' by ourselves. If the `governor' we have elected continues in this attitude then they will even see the right to elect our `own governor' as too much for us". Following the agreement concluded during Ozal's visit in July and disregarding all opposition by the community and political parties in the occupied area the Eroglu "government" proceeded to sign a "protocol" with Ozal in Ankara on December 5, 1986 which set out in the utmost detail in 34 articles what the "economic cooperation" that had been agreed upon in July would consist of. The "protocol" refers to: trade relations between Turkey and the "TRNC", monetary matters (banking, exchange, currency), investments, public companies, distribution of equivalent value land, infrastructure works and miscellaneous. Not included in the "protocol" but agreed during talks between Ozal and Eroglu in Ankara as Eroglu points out in a letter to the "Turkish Embassy" in occupied Nicosia dated 10 December 1986 were the following matters: a) "Citizens" or companies of the "TRNC" will have the right to establish or to become members of an air company which will be set up according to Turkish Law and will be registered in Turkey. b) There will be more ferry-boat calls between Turkey and the "TRNC" in accordance to the request to be made by the Turkish Cypriot "authorities" on this matte;r. c) The current "protocol" on road transport will be revised so that "TRNC" vehicles, can move through third countries. Despite the continuing reaction on all fronts to this "protocol" and the decision of the Republican Turkish Party, Communal Liberation Party and Elan Peoples' Party to oppose the economic agreement or as is otherwise known "the Ozal economic package" the "government" has already begun to implement it. Already, two committees have been set up and began their deliberations with the express aim of the application of the "protocol". Approximately 25 "Bills" are being prepared concerning the application of the "protocol" and a "law" has been passed forbidding strikes in the "free port area". It is noteworthy that according to KIBRIS POSTASI (30.1.87) following Mr Ozal's suggestion the "TRNC" has employed the company Morgan Grenfell to draft the "Bills" which concern the application of the "protocol" and two specialists from the said company are currently in the occupied area for this express purpose. It becomes obvious then that for the application of the package/ "protocol" the adoption of "laws" will be necessary which will have a restrictive effect on basic workers' rights like the right to strike and that is one of the main reasons why Turkish Cypriot parties have objected so strongly to it. Another reason, of course, is that the "protocol" aims at attracting foreign capital and that is something the opposition parties believe will put the occupied area under the absolute control of foreign capital It would appear that what the Turks are aiming for here is to formulate a long-term economic policy which will completely integrate and/or subjugate the Turkish Cypriot economy to that of Turkey plus make a few experiments using the "TRNC" as a test case to find out whether a given system is good enough to apply in Turkey or not. One such example is the "free trade zone". For the rest however the "TRNC" is being united economically with and being turned into a little replica of Turkey as it has become after the application there of the 24 January 1980 economic model. This economic model, the opposing Turkish Cypriot parties advance, had disasterous effects in Turkey and is certain to have disasterous economic and political effects in the "TRNC". In studying the "protocol" carefully one cannot help but notice that to attract foreign capital is one of its major aims. It is, for instance, mentioned in the protocol that taxation of companies will be decreased at the level of 25% "so that the outflow of capital be prevented". At another point, it is mentioned that an agreement will be signed on the basis of which Turkey will guarantee both "politically" and economically the investments to be made in the "TRNC". The "protocol" also specifies that within 3 months from the signing of the "protocol" there will be a "law" concerning foreign capital. Incentives are envisaged in the "protocol" in the tourism, trade, banking and communication sectors. In the free trade zone there will be no strikes and no lock-outs will be allowed. Land has been leased to foreigners for tourist development. Already, we have the example of land in Voukolida having been leased to a West German by the name of Manfred Karl Boers and this, it would appear, is just the beginning. The matter could take great and worrying dimensions with political aspects as could indeed the free trade zone issue which has not so far been particularly successful but which could attract more interest on the part of foreign companies with the application of the measures envisaged in the "protocol". A major economic aim of the "protocol" is also the attraction of offshore companies. Although the Turkish Cypriot press in the past mentioned the possibility of certain US firms establishing branches in the free port area of Famagusta, this did not in the end materialise. The new "legislation" obviously aims at making such decisions easier to take. The "protocol" also deals with the very crucial matter of the distribution of Greek Cypriot property to Turkish Cypriots. The Turkish press recently, (Nov. 1986) reported that rent or tax should be paid by those receiving "equivalent" property in accordance to the "equivalent property law"; later ORTAM (23.1.87) writes that this has worried the foreign embassies in Cyprus which have begun to demand explanations about the exact meaning of the relevant article in the "protocol". There is a possibility that in the place of the "certificates of ownership" that had been so far given to the "refugees from the south" who got Greek Cypriot land and property in the occupied area, now "title deeds" will begin to be issued. This of course has serious political repercussions as it can properly be viewed as a move to further consolidate division and the misappropriation of Greek Cypriot property in the occupied area of Cyprus. The "protocol" obviously also deals with bilateral matters such as trade between Turkey and the "TRNC" and infrastructural works for which only Turkey is responsible. When we consider that these include electricity, telecommunications, water supply, irrigation, we come to realise that the degree of control over the occupied area by Turkey is bound to increase and as it must be said that it never was negligible, attachment to Turkey, seems to be proceeding on all levels, just as Eroglu had wished. Given the difficulty or even impossibility, at the present, of recognition of Denktash's bogus state, it is perceived as being of paramount importance, both on the political and economic level that the occupied area become economically viable and that the sectors of trade and tourism which are now simply plodding along, flourish. There is no hope of recognition unless the "state" is consolidated first, and it cannot be consolidated and no consolidation is possible without a viable economy. The attraction of foreign capital with the incentives envisaged by the "protocol", will solve many of the existing problems and it is hoped that with its application the economy of the "TRNC" will finally be brought out of the morass. It would appear then that the "protocol" has ambitious aims both in the political and the economic level. The means which it seeks to employ to further those aims are indeed drastic, bordering on the "dictatorial". However it might be said in their defence that drastic measures are needed for serious maladies and the Turkish Cypriot economy is undoubtedly ailing. It is arguable that the "protocol" will save the economy of the "occupied area". What it will do will be to cause even greater social and political unrest than is already smouldering. The most tragic thing though is that the occupied area will, with the application of the protocol move closer and closer to Turkey in every way and become more subjugated to it and the voice of the genuine peace lovers and patriots among the community will be gradually stifled.