Turkish FM Gul announced 10-point action plan 24 January: proposes opening of Turkish ports and airspace to Greek Cypriots, end to international blockade on traffic to Turkish Cypriot ports and airport, “practical inclusion” of Turkish Cypriots in EU Customs Union, and high-level meeting under UN auspices to finalise plan by June 2006. Proposal dismissed by Greek Cypriots and Greeks, welcomed by U.S., UK and EU Enlargement Commissioner Olli Rehn. Greek Cypriot President Tassos Papadopoulos refused to meet UK FM Jack Straw 25 January, objecting his meeting with Turkish Cypriot leader Mehmet Ali Talat in his office promoted “symbols” of North. Talat accused Greek Cypriots of “escalation of intransigence”. UNDP established fund to aid Turkish Cypriots.

UN Security Council authorised 14 December extension of UN mission to June 2006.

EU-funded project to open symbolic roadblock dividing main street of Nicosia since 1963 began with Turkish Cypriot clearance work 24 November. Greek Cypriot government withdrew consent on issue 28 November, saying Turkish troops violated ceasefire line in buffer zone. Greek- Cypriot presidential aide Tzionis controversially stated Annan Plan could not be basis for Cyprus solution.

After start of EU membership talks Turkey said would not change stance on Cyprus until “lasting settlement” reached. FM Gul suggested Turkey might ease restrictions on Cyprus, stressing would not mean recognition. EU Parliament President Borrell urged new effort for settlement during visit to both sides of island. Turkish Cypriot President Talat met U.S. Sec. State Rice in Washington 28 October, first time U.S. Sec. State has formally received a Turkish Cypriot leader.

Cyprus dismissed suggestions at UN summit reunification deal should be reached before scheduled start of EU membership talks with Turkey 3 October. EU resolved crisis stemming from Turkish refusal to recognise Cyprus with agreement that recognition required before end of accession negotiations.

France said Turkish recognition of Greek Cyprus should be prerequisite for EU accession talks; German opposition leader Angela Merkel called for partnership short of membership. Turkey rejected any attempt to push back 3 October start date. EU said talks would begin on time.

Azerbaijan agreed to accept Turkish Cypriot passports and send flights, becoming only second country after Turkey to give degree of recognition to Turkish Cyprus. Turkey signed protocol 27 July extending ties to all EU states including Greek Cyprus.

Head of UN political affairs Kieran Prendergast briefed UN Security Council following visit; warned against premature external initiative, following failure of 2004 Annan plan in referendum rejection by Greek Cypriots.

Head of UN Dept. of Political Affairs visited 30 May following talks with Greek Cypriot diplomats in New York on possible revival of peace deal based on April 2004 Annan plan.

Turkish Cypriot PM Mehmet Ali Talat won northern Cyprus’ parliamentary elections, pledging to work toward reunification of Cyprus and integration with EU.