""Nothing to worry about"
By Elias Hazou
Israel reassures Cyprus over state of relations with the north
ISRAEL�S policy vis � vis the status of the breakaway regime remained unchanged, the government categorically stated yesterday, in the wake of media speculation that Israel was encouraging trade and investment in the north.
The scandal broke out when the Israeli ambassador in Ankara told Turkish journalists: �We do not encourage investments in the occupied territories, but at the same time we have no laws that prohibit this.�
Coming just days after Turkish Foreign Minister Abdullah Gul�s visit to Tel Aviv on January 3 � with political analysts saying the trip�s aim was to mend the somewhat soured relations between the two countries � the comments sparked a diplomatic frenzy in Cyprus, with the government seeking clarifications from the Israelis.
Yesterday Foreign Minister George Iacovou played down the issue, attributing the racket to media hyperbolising. He said the government had received assurances from Israel that its policy toward the legitimate Republic of Cyprus was the same and that Israeli businessmen were not being encouraged to invest in the north."
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