Part 194

Type of government: republic note: a disaggregation of the two ethnic communities inhabiting the island began after the outbreak of communal strife in 1963; this separation was further solidified following the Turkish invasion of the island in July 1974, which gave the Turkish Cypriots de facto control in the north; Greek Cypriots control the only internationally recognized government; on 15 November 1983 Turkish Cypriot "President" Rauf DENKTASH declared independence and the formation of a "Turkish Republic of Northern Cyprus" (TRNC), which has been recognized only by Turkey; both sides publicly call for the resolution of intercommunal differences and creation of a new federal system of government

Capital: Nicosia note: the Turkish area's capital is Lefkosa (Nicosia)

Administrative divisions: 6 districts; Famagusta, Kyrenia, Larnaca, Limassol, Nicosia, Paphos; note - Turkish area administrative divisions include Kyrenia, all but a small part of Famagusta, and small parts of Nicosia and Larnaca

Independence: 16 August 1960 (from UK) note: Turkish area proclaimed self-rule on NA February 1975 from Republic of Cyprus

National holiday: Independence Day, 1 October note: Turkish area celebrates 15 November as Independence Day

Constitution: 16 August 1960; negotiations to create the basis for a new or revised constitution to govern the island and to better relations between Greek and Turkish Cypriots have been held intermittently; in 1975 Turkish Cypriots created their own constitution and governing bodies within the "Turkish Federated State of Cyprus," which was renamed the "Turkish Republic of Northern Cyprus" in 1983; a new constitution for the Turkish area passed by referendum on 5 May 1985

Legal system: based on common law, with civil law modifications

Suffrage: 18 years of age; universal

Executive branch: chief of state and head of government: President Glafcos CLERIDES (since 28 February 1993) was elected for a five-year term by universal suffrage; election last held 14 February 1993 (next to be held NA February 1998); results - Glafcos CLERIDES 50.3%, Yeoryios VASSILIOU 49.7% cabinet: Council of Ministers was appointed jointly by the president and vice president note: Rauf R. DENKTASH has been "president" of the Turkish area since 13 February 1975 (president is elected for a five-year term by universal suffrage); Hakki ATUN has been "prime minister" of the Turkish area since 1 January 1994; there is a Council of Ministers (cabinet) in the Turkish area; elections last held 15 and 22 April 1995 (next to be held NA April 2000); results - Rauf R. DENKTASH 62.5%, Dervis EROGLU 37.5%

Legislative branch: unicameral Greek area: House of Representatives (Vouli Antiprosopon): elections last held 19 May 1991 (next to be held May 1996); results - DISY 35.8%, AKEL (Communist) 30.6%, DIKO 19.5%, EDEK 10.9%; others 3.2%; seats - (56 total) DISY 20, AKEL (Communist) 18, DIKO 11, EDEK 7 Turkish area: Assembly of the Republic (Cumhuriyet Meclisi): elections last held 12 December 1993 (next to be held NA); results - UBP 29.9%, DP 29.2%, CTP 24.2% TKP 13.3%, others 3.4%; seats - (50 total) UBP (conservative) 15, DP 16, CTP 13, TKP 5, UDP 1

Judicial branch: Supreme Court, judges are appointed by the Supreme Council of Judicature note: there is also a Supreme Court in the Turkish area

Political parties and leaders: Greek area: Progressive Party of the Working People (AKEL, Communist Party), Dimitrios CHRISTOFIAS; Democratic Rally (DISY), Ioannis MATSIS; Democratic Party (DIKO), Spyros KYPRIANOU; United Democratic Union of the Center (EDEK), Vassos LYSSARIDIS; Socialist Democratic Renewal Movement (ADISOK), Mikhalis PAPAPETROU; Liberal Party, Nikolaos ROLANDIS; Free Democrats, Yeoryios VASSILIOU; New Horizons, Nikolaos KOUTSOU, secretary general Turkish area: National Unity Party (UBP), Dervis EROGLU; Communal Liberation Party (TKP), Mustafa AKINCI; Republican Turkish Party (CTP), Mehmet ALI TALAT; New Cyprus Party (YKP), Alpay DURDURAN; Free Democratic Party (HDP), Ismet KOTAK; Nationalist Justice Party (MAP), Zorlu TORE; Unity and Sovereignty Party (BEP), Arif Salih KIRDAG; Democratic Party (DP), Serdar DENKTASH; National Birth Party (UDP), Enver EMIN; the HDP, MAP, and VP merged under the label National Struggle Unity Party (MMBP) to compete in the 12 December 1993 legislative election

Other political or pressure groups: United Democratic Youth Organization (EDON, Communist controlled); Union of Cyprus Farmers (EKA, Communist controlled); Cyprus Farmers Union (PEK, pro-West); Pan-Cyprian Labor Federation (PEO, Communist controlled); Confederation of Cypriot Workers (SEK, pro-West); Federation of Turkish Cypriot Labor Unions (Turk-Sen); Confederation of Revolutionary Labor Unions (Dev-Is)

International organization participation: C, CCC, CE, EBRD, ECE, EU (applicant), FAO, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFAD, IFC, ILO, IMF, IMO, Inmarset, Intelsat, Interpol, IOC, IOM, ISO, ITU, NAM, OAS (observer), OSCE, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WMO, WToO, WTrO

Diplomatic representation in US: chief of mission: Ambassador Andreas J. JACOVIDES chancery: 2211 R Street NW, Washington, DC 20008 telephone: (202) 462-5772 consulate(s) general: New York note: Representative of the Turkish area in the US is Namik KORMAN, office at 1667 K Street NW, Washington, DC, telephone (202) 887-6198

US diplomatic representation: chief of mission: Ambassador Richard A. BOUCHER embassy: corner of Metochiou and Ploutarchou Streets, Engomi, Nicosia mailing address: P. O. Box 4536, FPO AE 09836 telephone: (2) 476100 FAX: (2) 465944

Flag: white with a copper-colored silhouette of the island (the name Cyprus is derived from the Greek word for copper) above two green crossed olive branches in the center of the flag; the branches symbolize the hope for peace and reconciliation between the Greek and Turkish communities note: the Turkish Cypriot flag has a horizontal red stripe at the top and bottom between which is a red crescent and red star on a white field

Economy -------

Economic overview: The Greek Cypriot economy is small and prosperous, but highly susceptible to external shocks. Industry contributes 25% to GDP and employs 26% of the labor force, while the service sector contributes 70% to GDP and employs 62% of the labor force. After surging 9.7% in 1992, economic growth slowed to 1.6% in 1993 - its lowest level in two decades - because of the decline in tourist arrivals associated with the recession in Western Europe, Cyprus' main trading partner, and the loss in export competitiveness due to a sharp rise in unit labor costs. However, real GDP picked up in 1994 and 1995, as inflation fell from 4.7% to about 3%. Economic prospects appear favorable for 1996: real GDP is likely to grow between 3% and 4%, and inflation is likely to rise slightly to 3.5%-4.5%. The Turkish Cypriot economy has less than one-third the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. Economic growth sharply dropped during 1994 because of the severe economic crisis affecting the mainland, and inflation soared to 215%. To compensate for the economy's weakness, Turkey provides direct and indirect aid to nearly every sector; financial support has risen and now equals in value about one-third of Turkish Cypriot GDP.

GDP: Greek area: purchasing power parity - $7.8 billion (1995 est.) Turkish area: purchasing power parity - $520 million (1995 est.)

GDP real growth rate: Greek area: 5% (1995 est.) Turkish area: 0.5% (1995 est.)

GDP per capita: Greek area: $13,000 (1995 est.) Turkish area: $3,900 (1995 est.)

GDP composition by sector: Greek area - agriculture: 5.6% Greek area - industry: 24.9% Greek area - services: 69.5% (1994) Turkish area - agriculture: 11.4% Turkish area - industry: 22.9% Turkish area - services: 65.7% (1994)

Inflation rate (consumer prices): Greek area: 3% (1995 est.) Turkish area: 215% (1994)

Labor force: Greek area: 294,100 by occupation: services 61.5%, industry 26%, agriculture 12.5% (1994) Turkish area: 75,320 by occupation: services 52.9%, industry 23.6%, agriculture 23.5% (1994)

Unemployment rate: Greek area: 2.7% (1994) Turkish area: 1.6% (1994)

Budget: revenues: Greek area - $2.3 billion, Turkish area - $246 million expenditures: Greek area - $3.4 billion, including capital expenditures of $500 million, Turkish area - $350 million, including capital expenditures of $75 million (1996 est.)

Industries: food, beverages, textiles, chemicals, metal products, tourism, wood products