The outline of the package, which I believe could act as a catalyst for the realisation of a mutually acceptable comprehensive settlement, is as follows:

(i) As a first step, the fenced area of Varosha south of Dhimoktrathias street, including the area extending to the UN Buffer Zone, will be transferred to the Greek Cypriot control to be opened for resettlement.

(ii) Parallel to this, all restrictions on overseas trade, transport, travel and cultural and sportive activities from or to both parts of Cyprus will be lifted. I am convinced that Turkey and Greece will also positively respond to this by removing the restrictions which they apply to the Greek Cypriot and Turkish Cypriot sides respectively. We shall invite the UN and EU to acknowledge and give effect to these arrangements.

(iii) The freedom of movement will be facilitated between the two sides, subject only to minimal procedures. The restrictions on the movement of tourists will also be lifted.

(iv) Steps will be taken gradually for the normalisation of the flow of goods between the two parties on the island. Cooperation shall be also encouraged between the institutions of both sides to identify and develop joint projects.

(v) The Turkish Cypriot side will lift the measures regarding the movement of UNFICYP of July 2000.

(vi) A bilateral Reconciliation Committee will be established with the objective of promoting understanding, tolerance and mutual respect between the two parties. This Committee will make specific recommendations for promoting bilateral contacts and projects.

These ideas and suggestions constitute an integrated whole and I am convinced that their implementation, while greatly enhancing the prospect of a mutually acceptable comprehensive settlement based on the political equality of the two sides, would bring significant tangible benefits to both parties.

It is understood that the acceptance and implementation of the package will neither prejudice the respective positions of the two sides, nor will it be a substitute to a final settlement.

I am also prepared to discuss with the Greek Cypriot side the subject as to how we could benefit from the assistance of the UN and the EU in the implementation of the proposed ideas and package.

In the context of the above, I have also informed Mr. Tassos Papadopoulos that I am ready to talk with him the core issues of a comprehensive settlement, and matters related to EU membership, with the objective of reaching a mutually satisfactory conclusion.