In accordance with the provisions of Public Law 95 - 384, I am submitting the following report on progress made during the past 60 days toward reaching a negotiated settlement of the Cyprus problem.

In the course of continuing discussion of the United Nations ``evaluation'' of the intercommunal negotiations, the Greek Cypriot and Turkish Cypriot negotiators met on May 18, 25 and 27, June 1, 3, 24 and 29 and July 1, 6 and 8. The negotiations are now in recess with the next session scheduled for early August. Throughout recent discussions, the negotiators have carefully reviewed elements of the United Nations ``evaluation'' dealing with inter alia the possible organization of the executive structure of a federal system and the organs and powers of a federal government. The intercommunal negotiations are continuing in a serious and constructive manner.

United Nations Secretary General Perez de Cuellar met in New York on June 8 and 10 with Cypriot President Kyprianou and on June 9 with Turkish Cypriot leader Denktash. These meetings provided a further opportunity for useful discussion of the status of and developments in the intercommunal talks.

The United Nations continues to pay close attention to the Cyprus problem. In his June 1, 1982 report to the Security Council on Cyprus, a copy of which is attached, the Secretary General reviewed recent developments and emphasized that ``the intercommunal talks continue to represent the best available method for pursuing a concrete and effective negotiating process.'' He noted that negotiations are proceeding at ``a deliberate but reasonable pace'' and while major substantial problems are still to be resolved, ``they are being systematically reconsidered, reformulated and reduced.'' The Secretary General also noted the prospective need for devising solutions to unresolved constitutional and territorial issues and urged the communities to give ``earnest thought'' to the requirements for an agreement. We fully endorse the efforts and observations of the Secretary General and his Special Representative on Cyprus, Ambassador Hugo Gobbi.

I also note with pleasure that on June 15, 1982, the Security Council unanimously passed a resolution extending the mandate of the UN Peace-keeping Force on Cyprus (UNFICYP) to December 15, 1982. We share with other Security Council members the judgment that the continued presence of UNFICYP adds a valuable dimension of security and stability conducive to productive intercommunal negotiations.

Sincerely,

Ronald Reagan

Note: This is the text of identical letters addressed to Thomas P. O'Neill, Jr., Speaker of the House of Representatives, and Senator Charles H. Percy, chairman of the Senate Foreign Relations Committee.