Cyprus leaders agree to framework of talks-UN

NICOSIA, July 8 (Reuters) Leaders of ethnically partitioned Cyprus agreed today to a framework to allow the resumption of peace talks in a major breakthrough to a process stalled for more than two years.

''This is a very historic occasion,'' UN under-secretary general Ibrahim Gambari told reporters after hosting a meeting in Cyprus between President Tassos Papadopoulos, the Greek Cypriot leader, and Turkish Cypriot leader Mehmet Ali Talat.

A process should be started by the end of July, Gambari said.

Cyprus was divided in a Turkish invasion in 1974 which followed a brief Greek-inspired coup. Resolution to the conflict is key for Turkey to become a fully fledged member of the European Union, where Cyprus is now represented only by the veto-wielding Greek Cypriots.

In April 2004 the Greek Cypriot community rejected a UN settlement blueprint that had been accepted by the poorer and politically isolated Turkish Cypriots. The stalemate ushered a partitioned island into the EU.

Gambari said the two leaders had agreed to a set of principles governing a future reunification of Cyprus.

''(There was an) agreement to begin a process immediately, involving bi-communal discussion of issues that affect the day to day life of the people and concurrently those that concern substantive issues, both of which will contribute to a comprehensive settlement,'' said Gambari after three hours of talks with the two leaders.

Flanked by both, he added: ''Confidence building measures are essential, both in terms of improving the atmosphere and improving the life of all Turkish and Greek Cypriots.

In that connection, an end must be put to the so-called ''blame game'', he said.

REUTERS SY RK2220