Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/cyprus.bkg

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#CARD:Cyprus:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES: CYPRUS

MARCH 1992
Official Name:   Republic of Cyprus1

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
expen-diture--$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. [phone]).  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. [phone]).   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 Printing Office, Washington,
DC  20402.(###)


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