New US Ambassador to Cyprus John Koenig said that if confirmed by the Senate, his top priority will be to support efforts to reunite Cyprus into a bi-zonal, bi-communal federation.

Speaking on Wednesday before the US Senate Committee on Foreign Relations, Koenig noted that “the longstanding division must come to an end through a just and lasting settlement”.

He added that his foremost priority will be promoting US interests in Cyprus while working to advance a comprehensive settlement.

“The United States stands only to gain from a reunited Cyprus that is peaceful, prosperous, and fully benefits from EU membership,” he said.

Koenig went on by saying that since 2008, the leaders of the Greek Cypriot and Turkish Cypriot communities have made important progress in the Cypriot-led negotiations under the auspices of the UN Good Offices Mission and coordinated by Special Advisor Alexander Downer.

He added that much more must be done to end the de facto division of the island and, while saying that this is a Cypriot-led process, he noted that the US will remain actively engaged.

“The status quo is unacceptable,” the new Ambassador said and noted that it threatens effective NATO-EU cooperation and affects regional stability, while it also remains an obstacle to Turkey’s EU accession process, supported by the US.

On bilateral relations, Koenig noted the increased investment by US companies in
Cyprus, especially in the energy sector.

He also referred to the cooperation of the two sides to safeguard Cypriot cultural heritage, prevent pillaging, and stop the illegal trafficking and sale of antiquities.

Moreover, he said that Cyprus has been a generous host for an increasing number of US navy ship visits, which has driven growing cooperation in anti-terrorism and port security.

Koenig, while noting that the Republic of Cyprus is facing a number of challenges, referred to the rotating presidency of the EU, the European financial crisis, and the management of the newly discovered natural gas resources.

Although Cyprus has the third smallest economy in the EU, its financial sector is heavily exposed to Greek debt, he said and noted that, if confirmed, he will work closely with the Government of Cyprus to explore ways the United States can assist Cyprus as it seeks to meet these challenges.

Speaking further on energy issues, the Ambassador said that the US Administration recognizes the Republic of Cyprus’ right to develop its Exclusive Economic Zone.

“We believe that its oil and gas resources, like all of its resources, should be equitably shared between both communities in the context of an overall settlement,” he said.

He added that the discovery of natural gas underscores the urgent need for a settlement, but it need not hinder the talks.

During his address speech, Koenig said that he will be accredited to one government, that of the Republic of Cyprus, but added that he looked forward to engaging the Turkish Cypriot community.

“We need to maintain a constructive relationship with the Turkish Cypriot
Community,” the Ambassador said and added that we must continue to work with them to help prepare for reunification.

Presiding Chairwoman Senator Jeanne Shaheen said Cyprus was a vital ally and asked Koenig if the US administration is sending similar messages to the Turkish government, with the ones the members of the Senate have highlighted in a letter to President Obama concerning Turkey’s threats against Cyprus’ EEZ activity.

The Ambassador responded positively, by saying that this is happening in all levels.

Responding to a series of questions by Senator Robert Menendez, Koenig referred to the unwillingness of the Turkish Cypriot side to continue the inter-communal dialogue and said he saw no obstacle in restarting the talks immediately.

He added that the US does not endorse any arbitrary timetables in the talks, while he said he would seek to get more information on the issue of Anatolian settlers, in order to form an independent opinion.

Koenig finally said he would seek to meet with the leadership of the Cypriot community in the US.

Cyprus, which currently holds the six-monthly rotating Presidency of the Council of the EU, has been divided since 1974, when Turkish troops invaded and occupied its northern third.

A new round of peace talks started on September 2008 to find a negotiated settlement that will reunify the country, under a federal roof.

Following the 1974 invasion, settlers from Turkey have been brought to Cyprus by Ankara, under a deliberate and systematic policy aiming at altering the demographic character of the Republic of Cyprus and creating a new political and social reality in occupied Cyprus.

Ankara does not recognise the Republic of Cyprus and stated that it will not talk to Nicosia during its EU Presidency term, in the second half of 2012. Numerous officials from the EU and the member states reacted by saying that the EU Presidency should be respected by all, including countries that aspire to join the bloc.

Following a decision by Nicosia to begin natural gas and oil exploration in its Exclusive Economic Zone last September, senior Turkish government officials have warned that Ankara will not hesitate to deploy warships in the Mediterranean, if the Republic of Cyprus proceeds with the exploitation of its natural resources.

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