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Following is a transcript of statements by Carey Cavanaugh, director of Office of Southern European Affairs at the State Department, after meeting with Foreign Minister Alecos Michaelides, Monday, January 13, 1996:

(Begin transcript)

CAVANAUGH: I would like to let you know that we have finished another round of what I found very useful talks with the foreign minister. We explored in some depth these measures that might be able to be done to reduce tensions on the island. We also talked about some next steps toward working on a comprehensive settlement for the island, how important that is, and different ways of moving towards that. I will be meeting this afternoon, as you know, with Mr. Denktash. I will review with him as well the things we have worked out this morning with President Clerides and Foreign Minister Michaelides.

QUESTION: Has the U.S. given any assurances to the government of Cyprus about the security of Cyprus?

CAVANAUGH: No, I think the security of Cyprus is something that is clearly maintained both by the international environment and by the current geopolitical situation in the region. We have given no additional assurances, and I do not think that additional assurances were called for.

QUESTION: But you do recognize that it is the right of tHe government of Cyprus to look after its security?

CAVANAUGH: we have never questioned Cyprus' ability to provide for its defense. What we questioned, and I think I made clear last night, was the timing of this decision in light of the process of moving forward to work for a comprehensive settlement here. I would add though that countries can do things in their own self-defense that in fact create tensions that on occasion can create conflict. Countries are responsible to take very careful decisions when they do this so that it does not become a development.

QUESTION: It has been stated by Washington that these arms will take 16-18 months to arrive in Cyprus. So, what is the news?

CAVANAUGH: As I have said, the news this morning was that President Clerides gave me assurances that not a single component of those weapon systems will be on this island in the next 16 months. What is important about that is, this is a sign that this is not a crisis situation we face today. This is not a case where missiles will be coming to Cyprus in the near term; they will not be coming to Cyprus this year. We have already made clear repeatedly, and I will be glad to stress that again, Turkey has no right to respond to this threat because we have said today, President Clerides has made it clear, there is no threat today. There are no missiles here. There is nothing to respond to. But I think that is an important step.

QUESTION: What do you mean when you say component?

CAVANAUGH: A component is a part. Nothing is coming In the next 16 months of these missiles to this island. That is important.

QUESTION: Yes, but this was acknowledged by Nicholas Burns publicly...

CAVANAUGH: I think this was said in public, but what I have told you today is that we have very firm assurances that this will not take place. I think that these firm assurances are important. We appreciate that they were given, and we are supportive of that fact.

QUESTION: Can you review what proposals you presented to President Clerides concerning the overflights for the dialogue to restart?

CAVANAUGH: As I have said, the overflights question remains on the table. I think it's an important issue, but it is one that deals not simply with Cyprus but also with Greece and Turkey. As you know, I will go tonight to Greece and later this week to Turkey. President Clerides is also going to Greece later this week, so this issue will continue to be discussed this week to see if a solution might be found.

QUESTION: So, there are new proposals concerning the issue of overflights.

CAVANAUGH: The proposals are that question and other measures to reduce tensions on this island are on the table and, as I have said at the conclusion of the meeting with President Clerides and at the conclusion of this meeting, we are hearing positive things and ways to try to move those proposals forward.

QUESTION: Do you expect that you will be in a position to announce an agreement on the overflights after the conclusion of your trip to the three capitals?

CAVANAUGH: I am not today in a position to say that. I would like to be able to do that. I think there should be not doubt. I think that would be a very welcome development and a very welcome addition to security in the region and in Cyprus.

QUESTION: Yesterday you said that the Turks were Supportive of the overflight proposal in Lisbon, implying That it was the Greek Cypriot side which said no. Now After speaking with the Greek Cypriot side, do you think That the obstacles have been overcome?

CAVANAUGH: I think there is clear goodwill on all sides to try to find a way to move this forward. There are technical aspects to it that are still under discussion. Hopefully, these can be worked through; in fact, there is a meeting of the minds of all parties to do this.

QUESTION: but, according to reports, Mr. Michaelides was positive to your proposal in Lisbon. Has he changed his mind now?

CAVANAUGH: As I have said, it is an issue that remains on the table. We are working on this to make it come about. We were not able to conclude that initiative in Lisbon, but we are working on it. Thank you very much.

(End transcript)