MEMORANDUM

Illegal Construction in the occupied area (As revealed through Turkish and Turkish Cypriot Press reports since February 2007)

Construction boom takes place on Greek Cypriot properties According to TODAY (3-9/2/07), “a Multi-million-pound shopping development1 comprising 1,000 shops and stalls is set to transform the fishing village of Bogaz, (occupied ), near Gazi Magusa (occupied ) – which the developers see as “being like Las Vegas” within five years. An Israel-based company plans to start building a traditional Turkish-style bazaar complex this summer and the project is due to be completed in three years. An area of 45,000m² located 400 metres from the village on the road towards Bafra (occupied Vokolida) has been earmarked for the ambitious project which is set to become the biggest one-stop shopping centre in ´North Cyprus´. Various housing developments are currently being built in the area which has a population of about 2,000, rising by another 1,000 in the summer months. Nine hotels – three of which are nearing completion – are planned for nearby Vokolida. A spokesman for Big Old Bazaar Developments Ltd said: “It’s going to be like Las Vegas in the next five years. We have a vision and we think now is the time to invest as the area will be unrecognizable in a few year’s time”. KIBRIS (8/2/07) reports that the breakaway regime is preparing to establish an “Investments’ Agency”, aiming at the increase of the investments which are necessary for the development of the economy and at determining and applying strategies for supporting and promoting local and foreign investments. The “Agency” will also be aiming at improving the environment for investment and attracting international investors to the occupied areas of Cyprus. A “strong team” at the self-styled prime minister’s office is working for the materialization of the “Agency”. The “permanent undersecretary” of the so- called “prime ministry”, Mr Ontac Duzgun, said, inter alia, the following: “Both serious investments and about three billion-dollars of capital are waiting for a decision at various bureaucratic levels as a result of our gaining legal status, even though we partly did, especially after the Annan Plan and the referendum procedure. The state should be organized according to it. It is an application which will pave the way for consultancy in a professional sense in the country”. KIBRIS (28/2/07) reports that the Cyprus Turkish Contractors’ Union held a protest in order to draw attention to problems being faced by the construction sector and to protest against the unplanned development in the occupied Cyprus. Under the title “An unprecedented property scandal”, AFRIKA (1/3/07) reports that the “government” is putting into force a practice that was never done before. Two plots that belong to Greek Cypriots in Famagusta were sold to the “Medical Centre - Hospital”. The plots, the value of which is said to be 100 thousand sterling for each one, were sold as follows: 53 thousand sterling were given for the first one and 52 thousand sterling were given for the second one. The money taken from this sale will be deposited in an account of the self-styled “council of ministers” and the money gathered will be paid as compensation to persons as equivalent for the property they abandoned in the free areas

1 According to the distribution o population by ethnic group in 1960, Bogazi village was inhabited by 90 people of whom 88 belonged to the GC community. of the Republic of Cyprus. The paper adds that the self-styled deputy of the Okan Dagli is among the owners of the “Medical Centre Hospital”. In this case, the occupation regime far from taking measures to safeguard the property rights of the displaced persons is selling property that belongs to another in order to provide cash for its treasury. The statement of Enver Ozturk, self-styled “minister of tourism and economy” that their aim is to increase the beds in the fields of tourism from 13.600 to 40.000 in 2012 (HALKIN SESI 5/3/07) proves beyond any doubt that the occupation regime not only is not willing to take any measures to protect the property rights of the displaced persons but it follows a policy of alienating the displaced persons from the properties. Under the title “Constructions are being built now in Morfou”, KIBRIS (7/4/07) reports that the majority of the new constructions during the past two years were built in the occupied areas of Kyreneia and Trikomo, but a boom in the constructions took place in the occupied area of Morfou, where the building of new constructions had been stopped. The paper notes that KADEM Company conducted a research in December 2006 upon a request by Tosunoglu Group. Officials from the two companies announced on Friday the results of the research. KADEM’s director, Muharrem Faiz said that the research was conducted in 724 houses, 237 working places and 212 architects and engineer offices. He noted that according to the results of the research, Trikomo and Keryneia are the areas where most of the constructions were built during the past two years. The increase in Trikomo was 13.7 % and in Keryneia 13.5 %. On the same day KIBRIS reports that Ozkan Murat, self-styled “minister of internal affairs”, stated that during the term of their “government” the areas of occupied Trikomo and Karpass peninsula are turned into construction sites. Mr Murat toured the Karpass area last Friday. He noted that the one fourth of his “ministry’s” budget is spent for the above- mentioned areas. Murat said that they have already opened tenders for the construction of a new “court” building at Trikomo. CYPRUS TODAY (7-13/4/07) reports the following: “Turkish Cypriot businessman Ali Ozmen Safa is in negotiations to take over the completion of part-built homes at Amaranta Valley in occupied Klepini village. The Medview Homes managing director was approached by Aga Development Construction founder Gary Robb and an initial meeting was held six weeks ago, CYPRUS TODAY has discovered. Builders downed tools at the Aga Development project in September 2005, leaving around 300 people, mainly British, with only partly constructed homes despite investing tens of thousands of pounds each. KIBRIS (18/4/07) reports that the opening ceremony of the Malpas Hotel and Casino was held yesterday. The Hotel, which is built in occupied Ayios Epiktitos village, covers an area of 35 thousand square metres and is a five star hotel. The hotel has 174 rooms and is of 428-bed capacity, five restaurants, six bars, four swimming pools, a salon where 180 persons can gather and offers services of tennis, football, basketball and other sports. AFRIKA (23/4/07) reports that the “law” for acquiring a residence will soon pass from the self-styled assembly. The “law” will be implemented first in occupied Famagusta. The self- styled “Prime Minister” Soyer has said that the resources for this are ready and added that the “citizens” will become owners of houses and that will be “just like paying rent”. He noted that at the first stage 400 residences will be built on a territory of 25 donums (Tr. Note: A land measure of 1000 square meters) in the Besevler area in occupied Varosha. The self-styled “minister of internal affairs”added that the houses will be from 75 square meters to 130 square meters. Commenting on the same issue KIBRIS (23/4/07) reports that Soyer and Murat made the above statements during a meeting yesterday with inhabitants of occupied Famagusta. The paper writes that Soyer said that a great economic development took place in the occupied areas during the last three years and added that this development drew the attention of the international community. He noted that the GDP increased from 985 million euros to two billion euros and the budget deficit decreased to 7 % of the GDP. CUMHURIYET (23/4/07) reports that Mr Erdogan ιn statements he made during a visit to Bursa’s Chamber of Commerce and Industry, said that until four and a half years ago there were no investments in the occupied part of Cyprus. He noted: “There was nothing except a couple of hotels. But look now brand new hotels have began to be built. Their number exceeds fifteen. Investors began to come to Cyprus from various places of the world. … Per capita income had been around 4.700 dollars when we came to power. Now it became 12 thousand dollars. …The motherland gives the necessary support. This is the way these things happen. …What have you lost? What have they lost? Until four and a half years ago there was a Cyprus with absolutely no political respect in the world, but now there is a which is being respected with political invitations to its president of the republic, its prime minister and its ministers. RADIKAL (25/4/07) reports that Reha Arar, chairman of the executive committee of the Merit Hotels, which is the biggest foreign investor in occupied Cyprus, stated that their investments in occupied Cyprus will reach 250 million dollars with the construction of another hotel which will offer therapies using sea water, which is planned to start operating in 2008. Mr Reha Arar added that the new investments which started in the construction sector will have a significant contribution to Cyprus tourism as well. RADIKAL cites also the names of the hotels that “Merit Hotels” have in occupied Cyprus: Merit Crystal Cove2, Cyprus Garden and Green Karmy. VATAN (26/4/07) reports that ’s Minister of Transport, Binali Yildirim will illegally visit the occupied areas of Cyprus tomorrow in order to participate in the opening ceremony of the additional unit of the electricity power plant in occupied Keryneia area3. The unit will be of 70 megawatt capacity. On the same issue ANKARA ANATOLIA news agency (28/4/07) reported from occupied Keryneia, that the “Turkish Transportation Minister Binali Yildirim stated that the so-called ´TRNC´ grew by 53 percent during the last 3 years, adding that the country improved continuously. The 70 megawatt - additional unit of Teknecik Power Plant4 in ´TRNC´ was inaugurated today by Yildirim and Soyer. Delivering a speech at the inaugural ceremony, Yildirim said that Turkey and ´TRNC´ carried out a successful cooperation in areas of energy, infrastructure and transportation lately. Yildirim indicated that all the projects inaugurated in Turkey by the Turkish Transportation Ministry, were started in ´TRNC´ at the same time. The newly established plant, which is one of the biggest investments in ´TRNC´ in recent years, cost nearly 32 million EUR.” KIBRIS (27/4/07) reports that all the offices and service units, which belong to the so- called “presidential palace” and are scattered around, will be placed in a new building which is being constructed in the area. An area of 1536 square meters on the walls of Nicosia has been expropriated for the needs of the building.

2 It is the Zephyros Hotel already running before the Turkish invasion and owned by a displaced Greek Cypriot. 3 The area on which the said electricity power plant is build is forest land belonging to the government of the Republic of Cyprus. 4 Build in forest land belonging to the government of the Republic of Cyprus. STAR KIBRIS (30/4/07) reports that occupied Mare Monte Hotel5 has been turned into ruins because of the lack of interest. The hotel has been neglected for a period of three years by its “owners”, which is the EVKAF religious foundation. The paper notes that Mare Monte will be transferred for a long period to Net Holding, but the approval of the “assembly” is needed for the transfer. Meanwhile, CYPRUS TODAY (28/4/07-4/5/07) reports that a 30 million-dollar hotel has been built in the occupied area of Agios Epiktitos village. The paper notes that the hotel under the name of Malpas is built by Resat Altinor, “who spent four years on the project and still harbours ambitious plans for further development, including a proposed new track to Buffavento Castle and even a cable car link to whisk guests to the mountaintop ruin”. KIBRIS (3/5/07) reports that the self-styled “council of ministers” held its meeting yesterday in occupied Trikomo. The spokesman of the “council”, Salih Usar said that the “government” works for the better organization and institutionalization of Trikomo6, just like it does for the other occupied regions. He noted that within this framework they opened tenders for the construction of some buildings. Mr Usar noted that they decided to give plots of land to 240 young persons. The total area to be distributed is 19 donums (Tr. Note: a land measure of 1000 square meters). According to BAYRAK television (13/5/07) the so-caled “Prime Minister” Soyer said that current economic figures showed the construction sector played a major role in economic development in Northern Cyprus, adding that the sector’s average contribution to the Gross National Product within a period of three years was as high as 127 million dollars. Mr. Soyer was speaking during a meeting which brought together the so-called “Minister of Finance” Ahmet Uzun, the so-called “Minister of Interior” Ozkan Murat and contractors as well as civil engineers to discuss the outstanding problems being faced in the construction sector. BAYRAK television (14/5/07) broadcasted the following: “In an address made during the inauguration ceremony of the newly built Mosquito Beach hotel in occupied Keryneia, Mr. Soyer pointed to the importance of investments being made in the ´Republic´ and said that these investments were the guarantee of the Turkish Cypriot ´people’s´ future. Also, speaking at the ceremony the so-called “Minister of Economy and Tourism”, Enver Ozturk said that a nearly 26% rise has been recorded in the number of tourists who visited the ´Republic´ in the first 4 months of 2007, compared to the same period last year. Mr Ozturk pointed out that various holiday premises which would contribute to the tourism sector greatly, were inaugurated last month and said that the opening of two new five-star hotels in Catalkoy (occupied Agios Epiktitos) and Bafra (occupied Vokolida) region will increase further the bed capacity in the ´country´. The Mosquito Beach Hotel in the occupied Karavas village of Keryneia has a 150-bed capacity. BAYRAK TV (14/5/07) broadcast also the following: “The foundation stone for the five-star Merit Lefkosa Hotel was laid at a ceremony in the capital today. The foundation stone for the 250-bed capacity hotel was laid by Mr. Soyer, the so-called Turkish “Ambassador” to Lefkosia, Turkekul Kurttekin and the “Minister of Economy and Tourism”, Enver Ozturk. The 250-bed capacity hotel is scheduled to be completed in 2008. In an address at the foundation stone laying ceremony, Mr. Soyer said that the Merit Lefkosa Hotel would

5 It was running under the same name already before the Turkish invasion and belongs to a displaced Greek Cypriot. 6 According to the official data regarding the distribution of population by ethnic group in 1960, out of a total of 2195 citizens of Trikomo, only 7 belonged to the Turkish Cypriot community. greatly contribute to the Turkish Cypriot ´People’s´ economic development; which would itself, contribute to political achievements of the Turkish Cypriot. Pointing out that the latest political developments on the Cyprus issue increased foreign investments in the ´country´, he said that new arrangements were being made to attract more investors to the ´Republic´. In his speech at the ceremony, the Turkish “Ambassador” stressed that the aim of tourism investments was to strengthen further the so-called ´TRNC´. The Minister of Economy and Tourism Enver Ozturk, for his part, said that the bed-capacity in the country would be increased to 16-thousand-five-hundred by June this year.” ORTAM (21/5/07) reports that Greek Cypriot houses in the occupied Rizokarpasso village are being demolished. The New Cyprus Party (YKP) has expressed its worries over the developments in Rizokarpasso. The YKP noted that a new process is taking place during which the Greek Cypriot houses in Rizokarpasso are being demolished under the name of “restoration” in an operation which started with the aid of the army. The party stressed that this should stop immediately. Destruction of the environment Most of the Turkish Cypriot press (2/4/07) report under banner headlines “Who will stop this massacre ?” and publish a picture where bulldozers have leveled a large area covered with shrubs and bushes in the occupied Bellapais village for building an eight storey hotel complex. The papers repot that ten NGO’s jointly published a protest calling the occupation regime to take urgent measures to stop this massacre. The papers claim that the land belongs to the Vakif. KIBRIS (8/5/07) reports under banner headlines that the “Association of Environment and Promotion of Lefka” will file an international lawsuit against the American Company of the CMC for the environmental disaster caused by the company in the occupied Lefka. Turkey’s responsibility – Funding The following statement of the Justice and Development Party (AKP) deputy and Chief Whip of the European Democrat Party of the Parliamentary Assembly of the Council of Europe, Mr Mevlut Cavusoglu, speaking at the 3rd education and briefing meeting of the AKP Foreign Affairs group, is revealing enough in the sense that it provides tangible proof about the real aim of the Turkish side to legalise an illegal commission which was established to serve the political aims of the Turkish invader and usurper of Greek Cypriot properties, and the amounts provided by Turkey for illegal constructions on Greek Cypriot properties in the occupied part of Cyprus. According to KIBRIS (4/2/07) Mr. Cavusoglu said that the ruling AKP government will not make any concessions on Cyprus. He went on by saying: “Founding the Compensation Committee in Cyprus, we obtained the recognition of a domestic legal remedy. The court is sending now every Greek Cypriot, who applies to the European Court of Human Rights, to the TRNC. It is said: ‘There is a domestic legal remedy there; if you are not satisfied from that, then you would come to the ECHR’. Noting that they did investments of 400 million dollars in four years, Mr Cavusoglu said: “We do not include in these investments the 35 million dollars investment for the Ercan7 airport (occupied airport of Tymbou) and other investments for infrastructure works.” KIBRIS (27/2/07) reports that the works for the construction of the new “state” hospital in Famagusta are continuing rapidly. The new hospital which is being constructed with the aid of Turkey will have three floors and a capacity of 120 beds. The works for the

7 Constructed on property belonging to Greek Cypriot displaced people. construction of the hospital have started last year and the hospital is expected to start operating next October. KIBRIS (5/4/07), under the title “600-trillion aid from Turkey”, reports that Abdullatif Sener, Turkey’s State Minister responsible for Cyprus, has told the paper that Turkey helps the breakaway regime so that a productive economy is created in the occupied areas of Cyprus. In an exclusive interview with KIBRIS, Mr Sener evaluated the “Economic Program and Text of Mutual Understanding” signed yesterday between Turkey and the breakaway regime. He noted that the total aid of Turkey will be 600 trillion Turkish liras. 560 trillions will be spent to “state” expenses and 40 trillions to incentives. Mr Sener noted that with the financing of Turkey issues such as the salaries of the “public” servants, roads, schools, the building of hospitals and investments for universities and airports have been guaranteed. Some works have been made with donations by Turkey, he added. Reiterating the Turkish allegation that embargo is being applied against the Turkish Cypriots, Mr Sener said: “The Cyprus economy stands on its feet completely with the support provided by Turkey. Even the operation of the private sector, of the market, is secured with Turkey’s support. We have secured the establishment of six universities here and we have provided support. More than 40 thousand students are studying in the universities. The great majority of these students come from Turkey. …We provide great support for tourism. Turkey has provided great financing support for tourism installations. Furthermore, because of the embargo, the majority of the tourists who come here are from Turkey. …The minimum salary of the public servants in Turkey is 500 dollars. In Cyprus it is 900 dollars. That is, Turkey shares its bread with this place. The national income is 5.500 dollars, whereas in Cyprus is 11.800 dollars. When you look at the purchasing power it is 22.000 dollars. …”.Mr. Sener added: “Northern Cyprus exists now. It has constitutional institutions. A democratic tradition has been created. It has economic potential and performance. This is how they look at it. Both the Greek Cypriots and the world and Greece and the EU and Northern Cyprus (look at it in this way). The mechanism which brought this to surface is the cooperation with Turkey”. On the same issue KIBRISLI (5/4/07) reports that Mr Gul said that the aid of Turkey to the Turkish Cypriots will be increased from 200 million dollars to 400 million dollars this year. According to statements made in KIBRIS (26/4/07) Turkey’s State Minister responsible for Customs, Kursat Tuzmen stated that there were serious developments in the economy of the “TRNC” and increase in the trade volume. He noted that the “TRNC” – Turkey foreign trade volume was 500 million dollars in 2002 and increased to 800 million dollars in 2006. “And an estimation that this year the trade volume with Turkey will reach the level of one billion dollars”, he noted. Mr Tuzmen said that per capita income in the occupied areas of the island is 11.000 dollars and argued that the “TRNC” is being turned into a place suitable for foreign and local investments and that it will become an important centre in the Eastern Mediterranean. Settlers According to an analysis made to the so-called “2006 population census” held in the occupied area of Cyprus by the competent authorities of the Republic of Cyprus, the number of the Turkish Cypriots ranges between 89.000-90.000, whereas the number of settlers around 150.000-160.000. Commenting on this fact, KIBRIS (9/2/07) reported that the New Cyprus Party (YKP) has expressed the opinion that the results of the population census which have been announced recently do not reflect the real situation in the occupied areas of the island. In a statement issued yesterday YKP noted that the results have not yet been fully announced and pointed out that the issue which interests is whether or not the Cypriots are the majority of the inhabitants of the occupied part of the island. The party reminded that it had taken to the European Court of Human Rights the effort of Turkey to change the demographic structure of the island in a manner which is contrary to the Geneva Convention and that it boycotts the “elections” saying that no elections can be held in the north with this population structure”. Commenting on the issue of the announcement of the results of the 3rd stage of the data of the “population and building census” conducted last year in the occupied areas of Cyprus, KIBRISLI (12/4/07) uses the title “The de-jure population living in the TRNC: 256 thousand 207!” and the subtitle “Turk comes and Turks goes!” The paper notes, inter alia, the following: “…According to these data, the number of those who came afterwards in Cyprus is 27.081 persons bigger than the number of those who live in Cyprus from the day they were born. Experts, who note that the number of the population who came afterwards is not bigger than the local population in no country of the world, say that we are the first in the world who do this and that we come first. In case the democratic rules according to which the majority administrates the minority are applied in this situation, those who came afterwards should administrate the country and not those who were born in Cyprus. Those who do not know that we are very sincerely committed to the ‘Turk goes, Turk comes’ philosophy, think that we complain about this situation. Referring to the same issue, SOZCU (12/4/07) reports that “when the so-called “State Planning Organization” announced the results of the 2006 Building and population Census, it showed that the population changes against the Turkish Cypriots”. ORTAM (12/4/07) reports that “the Republican Turkish Party (CTP) administration violated the demographic structure more than the National Unity Party (UBP) – Denktas administration”. The paper notes that in four years the CTP administration brought from Turkey more population than UBP and Rauf Denktas had brought in 22 years. The paper refers to the issue under the title “44,344 persons in four years!”

22 May 2007