ITALY AGREES ON NEED FOR IMMEDIATE AID FOR CYPRUS,

C O N F I D E N T I A L ROME 003917

SIPDIS


E.O. 12958: DECL: 10/06/2014
TAGS: PREL PHUM ECIN TU CY IT EUN
SUBJECT: ITALY AGREES ON NEED FOR IMMEDIATE AID FOR CYPRUS,
TRADE AGREEMENT NOT AS EASY

REF: STATE 209905

Classified By: POL MINISTER-COUNSELOR TOM COUNTRYMAN. REASON: 1.5 (B)(
D)


1. (C) MFA Turkey/Cyprus Office Director Renato Ricci told
Poloff on October 4 that Italy concurs with the US view
(REFTEL) that increased economic development in North Cyprus
will aid reunification. To that end, Italy supprts rapid
disbursal of the Commission's propoed Euro 259 million aid
package, and appreciaed the USD 30.5 million contribution.
Ricci's personal view was that even these generous amounts
were not sufficient to promote business evelopment and
economic growth in the North, nd he would not be surprised
if an additional more robust, package would be proposed for
the near future, particularly if it was perceived by Member
States to help the cause of Turkey receiving a date to start
EU accession talks at the December Council.


2. (C) Ricci recognized that long term growth in the North
could not be sustained indefinitely by handouts, and that a
major component of Turkish-Cypriot economic development and
stabilization for the island in general depended on a trade
agreement for the North. The EU would have to work carefully
to craft an agreement acceptable to both sides of the island,
as well as to Ankara and Athens. Ricci was confident this
could be accomplished in relatively short order in Brussels.

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2004ROME03917 - Classification: CONFIDENTIAL