CYPRUS: A FRUSTRATED "TRNC PM" TALAT MEETS FONMIN

C O N F I D E N T I A L ANKARA 004737 SIPDIS E.O. 12958: DECL: 08/20/2014 TAGS: PREL TU CY SUBJECT: CYPRUS: A FRUSTRATED "TRNC PM" TALAT MEETS FONMIN GUL (U) Classified by Political Counselor John Kunstadter, E.O. 12958, reasons 1.4 (b) and (d). ¶1. (C) Summary: In four-hour meeting with Turkish FM Gul August 18, "TRNC PM" Talat, accompanied by "FM" Serdar Denktas, expressed great frustration with EU's lack of concrete measures to help the Turkish Cypriots (TCs). Talat appeared convinced that the EU's trade and aid proposals will be blocked or significantly delayed. Talat asked the Turks not to extend the Customs Union to the Republic of Cyprus (ROC) absent reciprocal Greek Cypriot concessions. End Summary. ¶2. (C) Jointly with UK embassy we obtained readout of Talat visit from Turkish MFA Cyprus Department Head Bilman. It was Ankara which had asked for the meeting, Bilman confirmed. Talat and Gul exchanged ideas on a long list of issues including the status of EU measures for the TCs, Turkish extension of Customs Union to the ROC, GC claims in the ECHR, and other issues. Bilman emphasized that throughout the meeting Talat expressed great frustration at the EU's lack of concrete action to support TCs. EU Trade and Aid Proposals -------------- ¶3. (C) Bilman described Talat as pessimistic and frustrated about what Talat feels is the lack of any concrete EU help to the TCs. Talat is worried about the Council's September decision on the EU's trade and aid proposals. Bilman said Talat's consultations with EU on-island representatives convince him both will be either blocked or significantly delayed. According to Bilman, Talat considers direct trade more important than the aid proposal. Customs Union Extension -------------- ¶4. (C) Noting the Talat asked Gul not to extend the Customs Union to the ROC absent some reciprocal GC move on trade between the EU and the north or further openings for Turkish and TC products in the ROC. He and Serdar argued that Turkey should consider concessions on trade and free movement of goods a two-way street. ECHR Case on the Horizon -------------- ¶5. (C) Bilman noted that in early September the ECHR will decide on the admissibility of a Cyprus property case against Turkey. The GOT hoped that payment of the Loizidou case plus an approved Annan Plan would end such claims. Without the Annan Plan mechanisms, now the legal issue is whether "TRNC" mechanisms constitute an "adequate domestic remedy" for plaintiffs. Turkey will argue they do and therefore the case should be dismissed. However, Bilman worries that a contrary ECHR decision will set precedent for a flood of claims against Turkey, creating a significant political problem for the GOT. ¶6. (C) Comment: There may be a growing gap between Ankara and Talat, operationally and politically. Bilman told us Talat's recent letter to SYG Annan was "news to us" and noted pointedly that Talat does not tell Ankara about his on-island meetings with GCs. The Customs Union problem, which Turkey must solve in order to get a date to begin accession talks in December, suggests a deeper fault line: unlike Talat, Ankara must balance frustration at the slow pace of EU measures for the TCs against its EU aspirations. End comment. EDELMAN