VZCZCXRO0819
PP RUEHAG RUEHAST RUEHBW RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHNC #0270/01 1201405
ZNR UUUUU ZZH
P 291405Z APR 08
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC PRIORITY 8735
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 1115
RUEHBS/USEU BRUSSELS

UNCLAS SECTION 01 OF 02 NICOSIA 000270 
 
SIPDIS 
 
SIPDIS, SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL CY
SUBJECT: ECHR ENDORSES PROPERTY SWAP BUT SIDESTEPS THE TURKISH 
CYPRIOT "PROPERTY COMMISSION" 
 
Ref:  07 Nicosia 811 
 
¶1.  (SBU) Summary:  The April 22 decision of the European Court of 
Human Rights (ECHR) approving a property swap between Greek Cypriot 
refugee Michael Tymvios and Turkey fell short of declaring the 
Turkish Cypriot "Property Commission" an effective local remedy, a 
finding that the Republic of Cyprus had feared could confer indirect 
recognition on the "Turkish Republic of Northern Cyprus."  However, 
the burden of implementing the ECHR decision now falls on the 
shoulders of the RoC, since the Turkish Cypriot-owned property 
awarded to Tymvios lies in the government-controlled area. 
Government officials must choose between two options both carrying 
significant risks:  accepting the ECHR decision, a potentially 
precedent-setting move that could leave it susceptible to a flood of 
copycat cases, or opposing it, earning the Strasbourg court's ire 
and threatening Greek Cypriots' continuing use of international 
litigation to settle property claims. 
 
¶2.  (SBU) In a second judgment, the Court ordered Turkey to pay 
835,000 Euros (USD 1,333,000) to a Greek Cypriot refugee (Demades) 
for loss of use of his property in Kyrenia, in the T/C-administered 
area.  The latter ECHR decision was hailed by Greek Cypriots as yet 
another blow to Turkey since it reaffirmed that refugees retain 
ownership of their properties in the north.  Post will report Septel 
additional reactions from both sides of the Green Line, as well as 
the Government's thinking on maintaining the "lawsuit track" even as 
preliminary negotiations on property and other elements of the 
Cyprus Problem continue.  END SUMMARY. 
 
------------------ 
Tymvios vs. Turkey 
------------------ 
 
¶3.  (U) On April 22, the European Court of Human Rights issued a 
long-awaited decision approving a friendly settlement reached 
between Greek Cypriot Michael Tymvios and the Government of Turkey. 
The deal in question was brokered by the Turkish Cypriot "Property 
Commission" in May 2007, and entailed striking the case from the 
ECHR's docket, an action that caused consternation in the G/C 
community and RoC (Reftel).  Tymvios, a well-known businessman and 
chemist, in 1990 had filed his case against Turkey for damages over 
loss of use of his property in the north, now home to "illegal" 
Ercan Airport.  The ECHR found in 2003 in his favor, but a decision 
on actual compensation looked distant and Tymvios was deep in debt. 
Tymvios and the Turkish Cypriot "Property Commission" met sometime 
in 2007 and, on May 21 of that year, reached a friendly settlement. 
The deal called for withdrawal of his application before the ECHR 
and exchange of his property in the north for Turkish Cypriot 
property in the city of Larnaca, in the south, plus one million 
dollars. 
 
¶4.  (SBU) News in 2007 that the ECHR might soon bless the property 
swap had caused tremors in the Greek Cypriot community for two 
reasons:  firstly, that such a decision would confer a degree of 
recognition on the "TRNC" by declaring the "Commission" an effective 
local remedy which must be exhausted before G/C-originated property 
cases against Turkey could be filed in Strasbourg; and, secondly, 
that the ECHR finding could lead to the collapse of the Guardian of 
Turkish Cypriot Property Law, the RoC statute that bars Turkish 
Cypriots residing in the north from reclaiming their properties in 
the south.  The RoC unsuccessfully attempted to prevent the 
sanctioning of the land swap by intervening in Court proceedings and 
questioning Tymvios's ability to enter into any settlement in light 
of his earlier declaration of bankruptcy. 
 
¶5.  (U) Strasbourg officials, however, opined that Tymvios's 
bankruptcy had no bearing on the case.  Further, the plaintiff 
accused the government of persecuting him and acting vindictively 
against him ever since he agreed to the friendly settlement in 2007. 
 As proof, he revealed that in January, the Ministry of Commerce and 
Industry had foreclosed on a piece of his property and immediately 
sold it at a price far below its market value.  He also said that 
foreclosure proceedings had been initiated for his chemical 
laboratory and, as result, he would soon be rendered jobless. 
Tymvios had communicated these complaints to the ECHR. 
 
¶6.  (SBU) Lawyer and property expert Achilleas Demetriades told us 
April 23 that, while the Tymvios decision did not "upgrade" the 
Turkish Cypriot "Commission," it could still have grave effects on 
the Guardianship Law, depending on how the RoC decided to deal with 
the case.  If the Land Registry Department, citing restrictions in 
the Guardianship Law, refuses to transfer the property in Larnaca to 
Tymvios -- a possibility, since the original T/C owners do not 
reside permanently in the south -- Tymvios is already on record 
stating he will file suit in Strasbourg against the government. 
Such a refusal risks international condemnation, however, and could 
prove disastrous to the RoC-blessed practice of G/Cs seeking redress 
through international courts.  Demetriades considered some sort of 
"out-of-court" arrangement between the RoC and Tymvios the most 
likely outcome, although he did not rule out the government 
 
NICOSIA 00000270  002 OF 002 
 
 
transferring the property outright.  Should the RoC fully implement 
the ECHR decision and allow Tymvios to register his property through 
normal channels, additional, direct property exchanges between 
displaced G/Cs and T/Cs likely would occur. 
 
------------------ 
Demades vs. Turkey 
------------------ 
 
¶7.  (U) A second ECHR decision handed down on April 22 called on 
Turkey to pay 835,000 Euros (USD 1,333,000) to the heirs of John 
Demades for loss of use and enjoyment of their property in Kyrenia. 
The ECHR's principal judgment finding Turkey responsible for 
"continuing violation of the Convention of Human Rights and 
Fundamental Freedoms" had been issued in July 2003.  In its latest 
finding, the Court rejected the Turkish government's request to 
refer the case to the "Commission," stating that since the Court 
earlier had decided on the merits of the case, it should determine 
the issue of just satisfaction as well. 
 
¶8.  (SBU) The Court reiterated that, as in the earlier cases of 
Titina Loizidou vs. Turkey, Cyprus vs. Turkey, and Xenides-Aresti 
vs. Turkey, displaced Greek Cypriots could not be deemed to have 
lost title to their property as a result of the events of 1974.  As 
such, ECHR-awarded compensation was confined to losses emanating 
from the denial of access, and the loss of control, use and 
enjoyment of their property.  Demades's lawyer Demetriades, who had 
represented Loizidou and Xenides-Aresti as well, commented that the 
decision "quantified the cost of Turkey's occupation of Cyprus."  He 
pointed out that the damages awarded for loss of use were almost 
double the amount that Turkey had offered to his client to settle 
the case. 
 
------- 
Comment 
------- 
 
¶9.  (SBU) If not exactly promoting the practice, past Greek Cypriot 
administrations certainly condoned the seeking of international 
court redress by displaced Greek Cypriot property owners.  As long 
as the decisions favored Nicosia and tarred Ankara, as Loizidou, 
Arestis, and others earlier had, the strategy made great sense. 
With Tymvios, however, Strasbourg has delivered at least a partial 
victory to the other side, leaving many in the south worried about 
long-term repercussions.  Early bluster by some in the 
administration to oppose the ECHR's ruling over technicalities has 
since given way to more measured statements, with experts cognizant 
that, having adopted and supported the legal track for years, the 
government must be prepared to accept and implement all outcomes, 
not just favorable ones.  The government spokesman subsequently 
pledged the administration's intention to work closely with the 
Attorney General to determine the RoC's course of action. 
Encouragingly, he also reiterated that the Cyprus Problem - and not 
just its property component -- required a political, not a legal 
solution.  We agree, and will suggest to leaders that the growing 
uncertainties involved in using international legal fora to pursue 
local property claims should serve as a strong impetus to negotiate 
the necessary political solution.