Turkish Cypriot leader Rauf Denktash hinted his people could reject the UN peace plan that he negotiated with his Greek Cypriot counterpart. An opinion poll indicated Greek Cypriots might also say ``no.''
For many Cypriots, the initial optimism over the start of talks -- seen as the best chance for reuniting the island in 30 years -- is tempered with nervousness over concessions they will have to make to reach a settlement.
Friday's negotiations focused on technical details such as the reunited island's flag and national anthem, but the sides remained far apart on core issues such as the Turkish army's presence in the north. Another point that could cause the talks to collapse is the return of refugees to their homes on the other side of the UN buffer zone that has divided Cyprus since 1974.
"Peace is, of course, very good, but many people will have to leave their houses and villages, and it is very difficult to set up a new life," said Mehmet Tek, a Turkish Cypriot who is keenly watching the talks.
Tek's village of Karsiyaka was mostly populated by Greek Cypriots before 1974.
Today, its Turkish-speaking residents fear that the refugees might return and displace them from their homes.
An abandoned Greek church is in the middle of the village, which had a majority Greek Cypriot population and was called Vasilia before the Turkish army invaded Cyprus to counter a coup by supporters of union with Greece.
"Definitely there should be peace," said villager Ulfet Pasaogullari. "But we can't live together. What would it be like if they came to live here? We live in their houses."
Some 200,000 Greek Cypriot refugees live in southern Cyprus today.
Only about half would be able to return to their former homes in the north under the UN plan -- a disputed point in negotiations.
Also contentious: Only about 50,000, or half, of the Turkish settlers in the north would be allowed to stay.
The EU and Turkey are pressing for a solution before Cyprus enters the EU on May 1. If the island remains divided, EU laws will only apply in the internationally recognized Greek Cypriot south.
The US also strongly supports the reunification of the island.
Denktash and his Greek Cypriot counterpart Tassos Papadopoulos agreed at the UN last week to negotiate according to a plan devised by UN Secretary General Kofi Annan.
The agreement calls for strict timetables: the two sides have until March 21 to agree. If they fail, Greece and Turkey will join the talks. If there is still no agreement, Annan will fill in the blanks, and referendums will be held on both sides of Cyprus.
The formula puts intense pressure on the two sides to make a deal. But any agreement could still fail if voters don't approve it. Experts say either leader could signal voters to oppose a deal that was accepted largely due to outside influence.
"Since they are making us negotiate the Annan plan with pressure, we will try to change the parts we can," Denktash said Friday.
"If not, we have to tell our people what this plan brings and takes away," said Denktash, who rejected the Annan plan last year. "The referendum is a question of whether we will live or not live in Cyprus."
On the Greek side there was also deep concern.
A poll published Friday in the Greek Cypriot newspaper Simerine suggested 61 percent of Greek Cypriots would vote ``no'' if a referendum on the UN plan were held today.
Asked whether the plan ensured a lasting settlement, 67 percent of respondents said no.
The poll was carried out by the Cyprus Communications Services Bureau and had a margin of error of plus or minus 3.46 percentage points.
To help encourage a deal, the EU is offering to spend $330 million to help integrate a unified Cyprus, including $275 million in the north.
Cyprus has been divided since a 1974 Turkish invasion that followed a short-lived coup by supporters of union with Greece.
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