The Republic of Turkey and the Turkish Republic of Northern Cyprus,

Underlining the full political and legal equality of the Turkish Cypriot people in determining the future of Cyprus, as confirmed and enshrined in international treaties,

Reiterating that Turkey recognizes the TRNC as a sovereign and independent state,

Believing in the need for the two peoples of the island to live side by side in mutual respect, peace, security and cooperation,

Recalling that a just and lasting settlement of the Cyprus question could be achieved through negotiations between the Turkish Cypriot and Greek Cypriot peoples,

Reiterating the continued validity of the system of guarantees as established by the 1960 Treaties,

Have decided as follows:

1. The ultimate aim in Cyprus is the achievement of a bi-zonal and bi-communal federal settlement based on the sovereign equality of the Turkish Cypriot and Greek Cypriot sides. The settlement to be reached shall be submitted to the two peoples in separate referendums in order to enable them to reflect their free will.

2. The full and effective guarantee of Turkey will continue under the Treaties of Guarantee and Alliance of 1960 following a final political settlement.

3. The EU membership of Cyprus can be taken up in discussions once the final political settlement is reached. However, it should be borne in mind that, as stipulated by the 1959 Zurich and London Agreements, Cyprus cannot join international political and economic unions to which Turkey and Greek are not members.

4. The objective of EU membership will be taken into consideration during the intercommunal talks conducted under the auspices of the U.N.; and after the two sides agreed on fundamental issues such as sovereign equality, they could begin to discuss, as a separate topic, the conditions of EU membership for Cyprus.

5. Accession talks with the EU should be carried out only after the final settlement, within the framework of the common positions to be agreed upon by the Turkish and Greek Cypriot sides and with the participation of a joint delegation.

6. Until the final settlement, as before and after it, Turkey will continue fully to ensure the security of the TRNC and shall take all necessary counter measures against the ongoing Greek/Greek Cypriot attempts of military escalation.

7. The two sides confirm that the customs union between Turkey and the EU does not include any provision that hinders commercial and economic relations between Turkey and the TRNC.

Incentive and support measures designed to promote trade and economic relations as well as bilateral investments between Turkey and the TRNC will be maintained.

8. With a view to promoting trade and economic relations between Turkey and the TRNC, the opportunities provided by the Customs Union between Turkey and the EU will be put to use to the fullest extent possible.

9. Taking into account that after a political settlement the federal Cyprus can join the EU only simultaneously with Turkey's accession, it is decided to initiate the preparations which will facilitate harmonization with the EU and gradually implement them.

10. Turkey and the TRNC will make joint efforts to ensure the lifting of all restrictions imposed on the TRNC in the international arena with a view to providing unhindered political, economic, cultural and sportive ties between the TRNC and third countries, pending a political settlement.

11. Turkey will make its political contribution in order to enable the TRNC to express its views in international organizations. To this end, the existing close cooperation between the Ministries of Foreign Affairs of Turkey and the TRNC will be intensified and a permanent consultation mechanism will be established.

12. The two sides will achieve these basic objectives in due course through intensifying high level visits and contacts as well as joint technical work.