Don't hold Turkey hostage to Cyprus-EU trade chief

BRUSSELS, Dec 6 (Reuters) The European Union's trade chief warned member states today against making Turkey's membership bid a hostage to the Cyprus dispute as EU envoys began debating a partial suspension of entry talks with Ankara.

Trade Commissioner Peter Mandelson said Turkish membership remained ''the big strategic objective for the European Union'', and cautioned against overreaction to current problems.

''It's not acceptable in my view to hold Turkey's accession process hostage to a settlement in Cyprus, especially when everyone, not just Turkey, has a duty to foster this settlement,'' he told a news conference.

Ambassadors of the 25-nation bloc met to discuss how hard to punish Turkey for refusing to open its ports and airports to traffic from EU member Cyprus, with Nicosia threatening to go on blocking all membership talks with Ankara.

The executive European Commission has recommended suspending eight out of the 35 policy areas or ''chapters'' into which the negotiations are divided, and not concluding talks on any sector until Turkey fulfils its treaty obligation on Cyprus.

The Greek Cypriot government, which wants the EU to take a tougher line, is refusing to give any commitment to allow talks on policy areas not affected by such a freeze to go ahead.

Nicosia objected to a phrase in the Finnish EU presidency's proposed statement that ''notes the good prospect for further steps in the negotiation process with Turkey in the near future'', according to a draft seen by Reuters.

NEGATIVE SCENARIO At the other extreme, British Foreign Secretary Margaret Beckett called the Commission's proposals ''too harsh'' and told parliament they could be counter-productive.

Diplomats said positions were so far apart that the issue was bound to be taken to an EU summit on December 14-15 despite the Finnish chair's wish to avoid another crisis summit on Turkey.

The leaders of France, Germany and Poland stepped back yesterday from demanding the EU set an ultimatum for Turkey to comply on Cyprus by a hard deadline or face a further setback to its membership ambitions.

Instead, German Chancellor Angela Merkel said the Commission should report sometime between Turkish elections due next November and European Parliament elections in May 2009 on whether Ankara had met its obligation.

Merkel's top aide, Thomas de Maiziere, told Reuters that Berlin still wanted a review clause under which member states would determine whether Turkey had met its obligation.

A Dutch spokesman said: ''We are disappointed in the results so far and we think a clearer signal is needed towards Turkey. What the Commission proposes makes sense to us, but we think their recommendations can be sharpened.'' German EU ambassador Wilhelm Schoenfelder said most countries could live with the Commission proposal but it was not clear whether that would be sufficient to assuage Cyprus.

''The negative scenario is that Cyprus vetoes the opening of any chapters. We'll find out next week one way or the other, and either way, it will be difficult,'' he told the European Policy Centre think-tank.

Cyprus, Greece and Portugal want a formal review clause to increase the pressure on Turkey, but Britain, Spain, Sweden, Italy, Poland, Lithuania, Estonia and Hungary oppose such a clause, which would effectively set a new deadline.

Cyprus has been divided since Turkish troops invaded in 1974 in response to a coup by Greek Cypriot militants seeking union with Greece. A U.N.-backed settlement failed in 2004 because the Greek Cypriots rejected it after the Turkish Cypriots endorsed it in a referendum.

Turkey has said it will only open its ports when the EU makes good on its promise to end the economic isolation of Turkish Cypriot northern Cyprus, which Nicosia has blocked.

Reuters BDP DB2248