DATE=7/20/98 TYPE=CORRESPONDENT REPORT NUMBER=2-235723 TITLE=TURKEY / CYPRUS (L-ONLY) BYLINE=AMBERIN ZAMAN DATELINE=ANKARA CONTENT= VOICED AT: INTRO: TURKISH PRIME MINISTER MESUT YILMAZ VISITED NORTHERN CYPRUS MONDAY TO TAKE PART IN CELEBRATIONS MARKING THE 24TH ANNIVERSARY OF TURKEY'S MILITARY INTERVENTION. AS AMBERIN ZAMAN REPORTS FROM ANKARA, MR. YILMAZ USED THE OCCASION TO ACCUSE GREECE AND GREEK CYPRIOTS OF FAILING TO DRAW LESSONS FROM THE ISLAND'S VIOLENT PAST. TEXT: ADDRESSING REPORTERS UPON HIS ARRIVAL ON THE DIVIDED MEDITERRANEAN ISLAND, PRIME MINISTER YILMAZ DESCRIBED GREEK CYPRIOT PLANS TO SOON DEPLOY RUSSIAN-MADE SURFACE-TO-AIR MISSILES AS HIGHLY DANGEROUS. HE CALLED THE DECISION PART OF WHAT HE TERMED A JOINT GREEK CYPRIOT AND GREEK DEFENSE PACT AIMED AT TURKEY. THE TURKISH LEADER SAID HIS COUNTRY WOULD TAKE ALL NECESSARY MEASURES TO PROTECT THE TURKISH CYPRIOT COMMUNITY FROM GREEK AGGRESSION -- A THINLY VEILED REFERENCE TO EARLIER TURKISH THREATS TO DESTROY THE MISSILES, IF AND WHEN THEY ARE DEPLOYED. MR. YILMAZ ALSO CRITICIZED THE EUROPEAN UNION OVER ITS DECISION LAST DECEMBER TO OPEN MEMBERSHIP TALKS WITH THE GREEK CYPRIOT GOVERNMENT -- WHILE FAILING TO DO SO WITH TURKEY. ANKARA APPLIED FOR FULL MEMBERSHIP IN THE E-U 11 YEARS AGO. //OPT// TURKEY SAYS IT WILL PURSUE FULL ECONOMIC INTEGRATION WITH NORTHERN CYPRUS UNLESS THE EUROPEAN UNION PUTS ON HOLD MEMBERSHIP TALKS WITH THE GREEK CYPRIOTS. SO-CALLED "ASSOCIATION COUNCIL TALKS" WILL BE HELD ON THE ISLAND THIS WEEK BETWEEN SENIOR TURKISH AND TURKISH CYPRIOT OFFICIALS IN ORDER TO DISCUSS ECONOMIC TIES. //END OPT// ON SATURDAY, TURKISH PRESIDENT SULEYMAN DEMIREL TRAVELS TO ISLAND TO WATCH THE ARRIVAL OF A HUGE BALLOON CARRYING WATER FROM THE TURKISH MAINLAND. TURKEY HAS PLEDGED TO SUPPLY THE TURKISH NORTH WITH URGENTLY NEEDED WATER AND IS PLANNING TO BUILD A PIPELINE TO CARRY THE WATER ACROSS THE MEDITERRANEAN TO THE TURKISH NORTH. //REST OPT// CYPRUS HAS REMAINED DIVIDED SINCE 1974 AFTER TURKISH TROOPS INTERVENED FOLLOWING AN ATTEMPTED COUP BY ULTRA-NATIONALISTS TO ANNEX THE ISLAND TO GREECE. AROUND 30-THOUSAND TURKISH TROOPS REMAIN ON THE ISLAND. U-N SPONSORED PEACE TALKS TO REUNITE THE ISLAND HAVE FAILED, SO FAR. A U-S-LED INITIATIVE TO REVIVE THE PEACE PROCESS FALTERED EARLIER THIS YEAR AFTER THE TURKISH CYPRIOT LEADER RAUF DENKTASH INSISTED THAT HIS COMMUNITY BE OFFICIALLY RECOGNIZED AS A POLITICAL ENTITY AS A PRECONDITION FOR RESUMING INTER-COMMUNAL TALKS. BUT THE DEMAND WAS REFUSED BY THE GREEK CYPRIOTS. THE UNITED STATES REMAINS DEEPLY CONCERNED THAT CONTINUING TENSION BETWEEN THE CYPRIOTS AND BETWEEN NATO MEMBERS GREECE AND TURKEY COULD LEAD TO A FRESH CONFLICT IN THE REGION. U-S MEDIATION EFFORTS NOW FOCUS ON PREVENTING DEPLOYMENT OF THE RUSSIAN-MADE MISSILES. IN A RELATED DEVELOPMENT, NATO SECRETARY GENERAL JAVIER SOLANA SAID NATO WOULD BE PREPARED TO MONITOR A NO-FLY ZONE OVER CYPRUS. GREECE AND THE GREEK CYPRIOT ADMINISTRATION SAY THE DEPLOYMENT OF THE RUSSIAN-MADE S-300 MISSILES COULD BE CANCELLED, IF A NO-FLY ZONE WERE DECLARED. BUT TURKEY SAYS THE THE MISSILES CANNOT BE MADE THE SUBJECT OF BARGAINING OR POLITICAL PRESSURE, AND OFFICIALS IN ANKARA SAY THE REAL OBJECTIVE OF THE NO-FLY ZONE PROPOSED BY THE GREEKS IS TO END TURKEY'S AIR SUPERIORITY OVER THE ISLAND. (SIGNED) NEB/AZ/PCF 20-Jul-98 9:33 AM EDT (1333 UTC) NNNN Source: Voice of America .