The Cyprus Conflict Message to the Congress Reporting on Progress Toward a Negotiated Settlement.

To the Congress of the United States:

As required by Public Law 94-104, this report describes the progress that has been made towards a negotiated settlement on Cyprus in the past sixty days.

The last report described proposals submitted by the Turkish Cypriots on April 13, and noted several expressions of flexibility subsequently made by the Turkish side. In July there were further encouraging signs. Both the Government of Cyprus and the Turkish Cypriot leadership put forward fresh and promising proposals for the resettlement of the important commercial and resort city of Varosha (New Famagusta). Varosha has been deserted and under Turkish control since the 1974 fighting. Significantly, both sides foresee that progress on this issue will lead to a resumption of the intercommunal negotiations.

We have urged the two Cypriot parties to give these proposals careful consideration, and plan to continue to encourage a satisfactory compromise on Varosha, one we hope will lead them to reconvene the intercommunal negotiations under the aegis of the Secretary General of the United Nations.

Both the Congress and the Administration feel that the United States 1) should continue to play an active role in seeking a just and lasting Cyprus settlement, and 2) should continue to support the efforts of Secretary General Waldheim. On August 14, the conference committee on the Security Assistance Bill approved the language to end the Turkish Arms Embargo. I consider this action appropriate and necessary to our continuing impartial and constructive role.

JIMMY CARTER

The White House,

September 1, 1978.