Denktash holding up historic Cyprus deal

Hopes of a historic deal to reunify the divided island of Cyprus, and to give Turkey a date to start talks on EU membership, hung in the balance last night on the eve of a crucial European summit in Copenhagen.

With the prospects of an agreement on Cyprus thought to be better than at any time since 1974, diplomats were working frantically to try to resolve a complex series of negotiations before today's meeting of leaders.

If the package succeeds, there will be a political commitment from the leaders of the Turkish and Greek Cypriot communities to back a UN reunification proposal, with a timetable to finish negotiations. Turkey would be given the prospect of starting EU membership talks no later than 2005, provided Ankara improves its human rights record to meet European standards.

Yesterday Rauf Denktash, the Turkish Cypriot leader, took a hard line, insisting there was no prospect of a deal before the end of the talks in Copenhagen, but not closing the door on the UN plan.

"We're not in a position to sign a document," he said. "We're not running away from negotiating. Give us time to negotiate with the Greek Cypriots." Ankara knows its help in persuading Turkish Cypriots to back the UN plan, and the removal of its veto over the EU's rapid reaction force having access to Nato's planning capabilities, will have a crucial bearing on its bid for membership talks. While there is optimism that a deal could be clinched, diplomats agree that relations with Turkey are at a crucial juncture.

Yesterday Recip Tayyip Erdogan, the leader of Turkey's ruling party, also took a tough line, saying he would look elsewhere if the EU failed to grant a date for entry talks this week, and suggested joining the North American Free Trade Agreement.

On the table is a Franco-German plan to offer Turkey membership talks in 2005 if they have met human rights standards by 2004. That has been rejected by Ankara, which wants to start negotiations with the EU before it admits 10 new member states in May 2004. It fears that a pledge given by the present 15 member states might be overturned by a 25-strong EU.

Britain is among a handful of countries backing the Turkish position, with France resisting change. President George Bush lobbied on behalf of Turkey yesterday.