Five-Year Plan In Cyprus

Press, Volume C, Issue 29602, 26 August 1961, Page 10

Five-Year Plan In Cyprus

There were uo official celebrations in Cyprus on August 16, the first anniversary of independence; instead, Cypriots soberly awaited the announcement by Archbishop Makarios of a five-year, £62 million plan intended to alleviate the republic’s daunting economic difficulties. Until this month, when more agricultural work began to be available, unemployment this year had remained fairly constant at 8000 out of a labour force of 120,000. Merchants and shopkeepers complain of a lack of business, partly because of the general economic stagnation, partly because racial bitterness between the Greek and Turkish communities has been accentuated by the independence settlement The first instalment of £2| million from Britain’s final grant of £l2 million (to be spread over five years) this year produced a budget surplus that is unlikely to be repeated. Though many Cypriots privately yearn for the “good “ old days ” before terrorism began, they do not admit the truth that without a continuing annual

income of £ 15 million from the British bases the island would be very close to bankruptcy. Economic problems are causing an alarming upsurge of disruptive political elements, notably Akel (the Cypriot Communist party) and the National Democratic Union, which still favours union with Greece. The most critical issue is the modernisation of Cypriot agriculture, on which a United Nations mission has recommended the spending of £l7 million. An extremely complex constitution intended to satisfy the aspirations and lull the fears of all racial groups has already hampered some administrative reforms. Communal jealousies, intensified by illiteracy among the rural population, will complicate formidably the agricultural planners’ task. Nevertheless the successful functioning of the Cyprus Parliament and its leaders’ good sense encourage hope that the island will ultimately develop a betterbalanced, prosperous economy, based on racial tolerance and continued good relations with Britain.