VZCZCXRO7394
PP RUEHAG RUEHROV RUEHSR
DE RUEHNC #0351/01 1521254
ZNY CCCCC ZZH
P 011254Z JUN 09
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC PRIORITY 9901
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 5478
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1187
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1467

C O N F I D E N T I A L SECTION 01 OF 02 NICOSIA 000351 
 
SIPDIS 
 
DEPT FOR UR/SE, EUR/RPM, L/EUR 
 
E.O. 12958: DECL: 06/01/2019 
TAGS: PREL PARM MARR ECON EPET CY TU
SUBJECT: CYPRUS OFFSHORE EXPLORATION: TALAT'S HALF-HEARTED 
PROTEST 
 
REF: A. 07 NICOSIA 120 
     ¶B. 07 NICOSIA 675 
     ¶C. 08 NICOSIA 813 
     ¶D. 08 NICOSIA 910 
     ¶E. NICOSIA 344 
 
Classified By: AMB F C URBANCIC FOR REASONS 1.4 B AND D 
 
¶1. (C) In a June 1 meeting with the Ambassador, Turkish 
Cypriot (T/C) leader Mehmet Ali Talat, complained that Greek 
Cypriot progress towards exploiting offshore energy assets 
with Houston-based Noble Energy, Inc. "affects the 
negotiations" and was a cause of concern given the 
"controversial nature of the issue."  Talat argued that T/Cs 
have the same rights over natural resources as Greek Cypriots 
(G/Cs), noting that mineral rights would be a federal 
responsibility in a reunified Cyprus. In the past, Talat 
said, G/C President Demetris Christofias had responded to 
these objections by saying "we are preparing the ground in 
advance to share this wealth" but that this ignored the T/C 
right to be involved in this process as well. Talat does not 
intend to raise the matter with Christofias again because "I 
already know how he will answer." "We are expressing to you 
our views on this so that you can do something to stop this 
sort of activity - because it undermines the spirit of the 
talks," Talat concluded. 
 
¶2. (C) The Ambassador explained that Noble is a private 
company that entered into a contract with the RoC to which 
the USG is not a party. Noble did not seek USG authority or 
backing for this venture. Noble understood the potential in 
teh Cyprus bloc on which it bid from its current operations 
in an adjacent field in the Israeli Exclusive Economic Zone 
(EEZ). He emphasized to Talat the USG desire to continue to 
help the island to reunify and offered to Talat to seek a 
legal opinion of the EEZ delimitation if that would be 
helpful, but it was unlikely that the USG would take a 
position on it. Talat's response was to throw out the idea of 
"taking Noble to a US court" although he immediately added 
that this seemed "overly ambitious." 
 
Limnitis 
-------- 
 
¶3. (C)  Talat said that the leaders' representatives  (Ozdil 
Nami and George Iacovou ) were still working on modalities to 
open the Limnitis/Yesilirmak crossing point, a stalled 
confidence building measure that has turned into a point of 
friction.  He added that Nami and Iacovou, who happened to be 
meeting today regarding the issue, had hammered out a draft 
agreement at their last meeting.  Talat dubbed that agreement 
"not bad", but said he had heard from unnamed Greek Cypriots 
that Christofias was not happy with it.  Talat added, 
however, that Christofias did not raise Limnitis/Yesilirmak 
at their last tete-a-tete, on May 28. He thought that 
Christofias was avoiding the issue until after the June 6 
European Parliamentary elections. 
 
Varosha 
------- 
 
¶4. (C)  In response to the Ambassador's request for 
assistance in allowing the Embassy to inspect abandoned AMCIT 
properties in the fenced-off city of Varosha, Talat said that 
the Embassy needed to apply through the "TRNC MFA" and 
refuted the Turkish "Ambassador's" May 22 comment to the 
Ambassador that Mr. Talat could be helpful in arranging such 
a visit per Reftel E. (Comment: Our take, supported by both 
the UN and candid contacts in the "TRNC MFA", is that the 
Turkish Military must approve all requests to visit Varosha. 
The Embassy has not been given access since 2005 despite 
making two formal requests. End Comment) 
 
¶5. (C) Comment: Talat's heart was not in this discussion of 
gas exploration in teh Cyprus EEZ, even though he requested 
the meeting. His approach was desultory and pro forma.  While 
saying that the negotiations were proceeding well, his body 
language and attitude indicated a man who is tired and viewed 
the offshore exploration issue as a distraction. We recommend 
the following as guidance if press asks for comment to the 
Turkish Cypriot reaction to the story that a U.S.-based 
company will explore for energy in Cyprus' EEZ: 
 
Begin Text: U.S. policy on this issue has not changed.  The 
decision by an American company to enter into agreements with 
the Republic of Cyprus is a business decision, not a 
political one. 
 
All parties must exercise restraint. This controversy points 
to the need for all parties to continue to focus on forging a 
comprehensive solution to the Cyprus problem that will 
reunify the island into a bi-zonal, bi-communal federation. 
A final settlement will enable all Cypriots to benefit from 
the island's resources. End Text. 
Urbancic