CZECHS SUPPORT PHARE ASSISTANCE, BUT ONLY UNDER

C O N F I D E N T I A L PRAGUE 000851 SIPDIS SIPDIS EUR/NCE FOR ERIC FICHTE E.O. 12958: DECL: 07/25/2016 TAGS: PREL EAID LH EUN CY EZ SUBJECT: CZECHS SUPPORT PHARE ASSISTANCE, BUT ONLY UNDER TERMS ACCEPTABLE TO CYPRUS REF: STATE 115693 Classified By: Acting Political-Economic Counselor Karen C. Reider for reasons 1.4 (b) and (d). ¶1. (C) Poloff discussed the Czech position on PHARE assistance for the Turkish Cypriot Community on July 25 with MFA Director of Southeast and Eastern Europe Department Tomas Szunyog, and MFA Director of Coordination and Institutions of EU Tomas Ulicny. Szunyog said the Czechs support the PHARE assistance plan in principle, and therefore, the MFA has consistently instructed the Czech mission in Brussels to support aid and development projects in Northern Cyprus. ¶2. (C) However, the Czechs are also sensitive to the position of Cyprus, that PHARE assistance should not (1) be applied to property in Northern Cyprus claimed by Greek Cypriots (an estimated 85% of the land in the region),or (2) be used for projects not approved or facilitated by the government of Cyprus (such as funding a water project that duplicates facilities in Southern Cyprus). For this reason, Ulicny said the Czechs will only vote in favor of a plan approved by Cyprus. The Czechs are prepared to wait until Cyprus and the European Commission "clarify" the key issues of concern to Cyprus. Ulicny believed that progress is being made on this point, and that another vote could take place as early as September rather than October. CABANISS