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===The "Set of Ideas"=== In August 1988, Pérez de Cuéllar called upon the two sides to meet with him in Geneva in August. There the two leaders – [[George Vasiliou]] and [[Rauf Denktaş]] – agreed to abandon the Draft Framework Agreement and return to the 1977 and 1979 High Level Agreements. However, the talks faltered when the Greek Cypriots announced their intention to apply for membership of the [[European Community]] (EC, subsequently EU), a move strongly opposed by the Turkish Cypriots and Turkey. Nevertheless, in June 1989, de Cuellar presented the two communities with the "Set of Ideas". Denktaş quickly rejected them as he not only opposed the provisions, he also argued that the UN Secretary-General had no right to present formal proposals to the two sides. The two sides met again, in New York, in February 1990. However, the talks were again short lived. This time Denktaş demanded that the Greek Cypriots recognise the existence of two peoples in Cyprus and the basic right of the Turkish Cypriots to self-determination. On 4 July 1990, Cyprus formally applied to join the EC. The Turkish Cypriots and Turkey, which had applied for membership in 1987, were outraged. Denktaş claimed that Cyprus could only join the Community at the same time as Turkey and called off all talks with UN officials. Nevertheless, in September 1990, the EC member states unanimously agreed to refer the Cypriot application to the commission for formal consideration. In retaliation, Turkey and the TRNC signed a joint declaration abolishing passport controls and introducing a customs union just weeks later. Undeterred, [[Javier Pérez de Cuéllar]] continued his search for a solution throughout 1991. He made no progress. In his last report to the Security Council, presented in October 1991 under [[United Nations Security Council Resolution 716]], he blamed the failure of the talks on Denktaş, noting the Turkish Cypriot leader's demand that the two communities should have equal sovereignty and a right to secession. On 3 April 1992, [[Boutros Boutros-Ghali]], the new UN Secretary-General, presented the Security Council with the outline plan for the creation of a bi-zonal, bi-communal federation that would prohibit any form of partition, secession or union with another state. While the Greek Cypriots accepted the Set of Ideas as a basis for negotiation, Denktaş again criticised the UN Secretary-General for exceeding his authority. When he did eventually return to the table, the Turkish Cypriot leader complained that the proposals failed to recognise his community. In November, Ghali brought the talks to a halt. He now decided to take a different approach and tried to encourage the two sides to show goodwill by accepting eight [[confidence building measures]] (CBMs). These included reducing military forces on the island, transferring [[Varosha, Famagusta|Varosha]] to direct UN control, reducing restrictions on contacts between the two sides, undertaking an island-wide census and conducting feasibility studies regarding a solution. The Security Council endorsed the approach. On 24 May 1993, the Secretary-General formally presented the two sides with his CBMs. Denktaş, while accepting some of the proposals, was not prepared to agree to the package as a whole. Meanwhile, on 30 June, the European Commission returned its opinion on the Cypriot application for membership. While the decision provided a ringing endorsement of the case for Cypriot membership, it refrained from opening the way for immediate negotiations. The Commission stated that it felt that the issue should be reconsidered in January 1995, taking into account "the positions adopted by each party in the talks". A few months later, in December 1993, [[Glafcos Clerides]] proposed the demilitarisation of Cyprus. Denktaş dismissed the idea, but the next month he announced that he would be willing to accept the CBMs in principle. [[Proximity talks]] started soon afterwards. In March 1994, the UN presented the two sides with a draft document outlining the proposed measures in greater detail. Clerides said that he would be willing to accept the document if Denktaş did, but the Turkish Cypriot leader refused on the grounds that it would upset the balance of forces on the island. Once again, Ghali had little choice but to pin the blame for another breakdown of talks on the Turkish Cypriot side. Denktas would be willing to accept mutually agreed changes, but Clerides refused to negotiate any further changes to the March proposals. Further proposals put forward by the Secretary-General in an attempt to break the deadlock were rejected by both sides.
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