Beijing Review: How have China-Cyprus relations developed since the two countries established diplomatic ties in 1971?

Marios Ieronymides: Cyprus and China established diplomatic relations on December 14, 1971. Our bilateral relations are excellent--higher than ever, at their zenith one has to say--in the political area, whereas in the fields of trade, economy and culture they are rapidly developing. It is my sincere hope that these relations will be consolidated and further enhanced in the years to come. At the same time, our cooperation and understanding in the international arena is excellent and of prime importance.

Although diplomatic relations between Cyprus and China were established in the 1970s, the Cyprus Embassy in Beijing was opened later in 1989. All the presidents of the Republic of Cyprus have visited China during their terms of office. The 35th anniversary of the establishment of diplomatic relations between Cyprus and China was celebrated last year during the official visit of Tassos Papadopoulos, President of the Republic of Cyprus.

Cyprus was one of the first friends lending its valuable support to China's efforts to restore its seat in the UN in 1971. Cyprus supports the one-China policy and the legitimate and inalienable rights of the Chinese people for reunification with Taiwan. We condemn all secessionist acts, i.e. the so-called "referendum [on Taiwan's membership of the UN]" against this reunification process.

I would like to stress once again the excellent bonds of friendship that exist between Cyprus and China. These bonds go back to the 1960s at the time of the establishment of the newly born Republic of Cyprus. China has long been a trustworthy friend whose cooperation and assistance we can fully and unhesitatingly rely on. This has been demonstrated countless times throughout numerous different occasions in many international fora and organizations, in particular, the United Nations and the UN Security Council.

Cyprus is thankful to China, a permanent member of the UN Security Council, for its solid and constant support toward a just and viable solution to the Cyprus issue in accordance with relevant UN and Security Council resolutions. Cyprus welcomes China's support in the implementation of the July 8, 2006, process agreed between President Tassos Papadopoulos and [Mehmet Ali] Talat (leader of northern Cyprus)-Gambari Agreement-which has been endorsed by the UN Security Council, providing the only opportunity for a speedy, comprehensive and viable solution to the problem.

We earnestly hope and sincerely believe that our close cooperation as a result of this amicable friendship shall continue and be strengthened considerably.

As a new ambassador to China, what are your major plans for deepening our bilateral relations?

So far, we have signed 18 bilateral agreements in areas such as cultural, economic, scientific and technological cooperation, tourism, avoidance of double taxation, mutual promotion of investment and merchant shipping. My priority first will be given to the promotion and further enhancement of these agreements; second, to the development of deeper cooperation in trade, culture and education and tourism; and third, to the projection of Cyprus' historical and cultural image to China and vice versa.

What are the major areas of potential China-Cyprus cooperation, and why?

Cyprus, due to its small domestic market and the open nature of its economy, considers access to international markets of utmost importance. The total trade exchanges between Cyprus and China have been increased recently, and with a deficit for Cyprus, stand at $260 million. The geographical distance, the high costs of labor in Cyprus and the strong yuan are three negative key factors making the export of Cypriot products onerous. Products, such as wine, dairy products, citrus fruits, olive oil and pharmaceuticals, have good market value and are welcomed in China. With a view to further strengthening bilateral business contacts, I suggested that Cypriot exporters should be invited more often to participate in fairs in China, while Chinese companies should be encouraged to use Cyprus as a transit for their exports.

Cyprus' strategic location and its close proximity to the trade routes linking three continents-Europe, Asia, Africa-as well as its excellent telecommunications, banking system and professional services make Cyprus an ideal home for business and joint ventures.

Attracting foreign investment and tourists is among the primary objectives of Cyprus' development policy. Foreign companies can benefit from the numerous incentives and low taxes by using Cyprus as a base for their investments. The industrial trade zone offers possibilities for setting up manufacturing and assembling units for the production of goods destined for export to Europe and nearby markets. Strong encouragement is also given to research and technological development.

Since its accession to the EU, Cyprus has been considered to be a favorable investment destination mainly because of its low tax rates-a flat rate of 10 percent on profit-and a wide network of double taxation treaties. Cyprus aspires to become the investment center of the region, connecting Europe to Asia and Africa. We envisage transforming Cyprus into a spot that offers services at minimum possible cost. We possess the infrastructure and the know-how to do this. In such a venture, we welcome the active participation of China.

Cyprus is known as the island of copper. Are there any joint projects between our two countries in copper mining?

Cyprus has been known throughout the centuries as the island of love, the island of the goddess Aphrodite and of copper. The name of Cyprus presumably derives from the word copper--cuprum. The extensive exploitation of copper mines for the past 5,000 years and the wide application of other metals today have dealt a blow to Cyprus' copper industry, which eventually was forced to closed down a few years ago. Homer in The Iliad praised King Kinyras of Cyprus who donated an armor shield of bronze or copper to King Agamemnon, leader of the Greek expedition against Troy. A joint venture in this respect and the expertise of the Chinese people to revive the "Bronze Age" of Cyprus would be highly esteemed.

How is China perceived by the general public in Cyprus?

Very positively. China has been a fraternal and traditional friend from the time of the era of the late President Archbishop Makarios and the legendary figure Chairman Mao Zedong. This is why China is a popular destination for Cypriot tourists. For Cypriots, China is not only a tourist destination with natural beauties, such as the Great Wall, the Forbidden City, the terracotta warriors, and so on; it is also a country with a great civilization, a unique blend of living history from the long-forgotten mythical past of the Shang Dynasty to the most recent days. It is the country of the unexpected, the country where myth meets with realities, philosophy with religion, culture with tradition. This is why Cypriots are addicted to China. They have the so-called "China Syndrome" and a deep love for China.

The president of the Shipowners Association of Cyprus would like to sponsor a trip from Larnaka port to Shanghai on the replica of the ancient ship Kyrenia-Eleftheria (freedom), the remnants of which were found near occupied Kyrenia. The ship, full of Cypriot products, such as almonds, olive oil, carob, bronze metals, etc., will travel across the "Old World" along the ancient sea route via the Mediterranean and the Indian Ocean and finally arrive in Shanghai before the 2008 Olympic Games. The products on board will be presented as gifts, like the ancient ship did at the Athens Olympiad. The project will be carried out after getting approval from authorities in Cyprus as well as the Beijing Organizing Committee for the Games of the 29th Olympiad.

As a member of the EU, how can Cyprus benefit from stronger China-EU relations?

First of all, the whole world would benefit from the strengthening of China-EU relations, which is conducive to peace and stability in the world. The EU and China have an established forum going on to deal exclusively with subjects of this nature. The 10th EU-China Summit was held at the end of November.

There is, in fact, a close proximity of views on a majority of key international issues and mutual commitments to promote peace and stability. Possible areas of cooperation could be the non-proliferation of weapons of mass destruction, denuclearization, renewable energy, climate change, sustainable development and poverty alleviation. These issues are high on the agenda of both sides.

A closer affiliation between the EU and China with the conclusion of a comprehensive agreement would also benefit Cyprus in regards to issues of trade and commerce. Cyprus imports a vast quantity of products from China, though its exports to China are minimal in number. If China establishes certain trade and tariff agreements with the EU, Cyprus could, in affiliation with other EU member states, considerably increase its exports to China. It should also be noted that stronger relations between EU and China would spark the registration of more Chinese ships under the Cypriot flag.