U.N. Says Encouraged By Cyprus Peace Process Talks

`They have put more on paper now, of an agreed nature, than at any time since 1974`, U.N. envoy told reporters.

The United Nations said on Friday it was encouraged by progress in Cyprus reunification talks, but that it was important not to impose deadlines on the process. Greek and Turkish Cypriots have been holding peace talks since September 2008 to try to resolve a 35 year conflict holding up Turkey's hopes of joining the European Union.

Turkish Cypriot leader Mehmet Ali Talat and Greek Cypriot leader Demetris Christofias met on Friday.

"They have made real progress," said U.N. envoy Alexander Downer. "They have put more on paper now, of an agreed nature, than at any time since 1974," he told reporters.

But Christofias said: "There are some very fundamental issues which still remain open".

Cyprus was split in 1974 when Turkey invaded the north of the island in response to a brief Greek backed coup. The two sides are debating a raft of complex issues ranging from property rights of refugees to power sharing, issues they have been unable to agree on in decades.

Pressure is mounting for a deal on Cyprus. The island is represented in the European Union by its Greek Cypriots who will obstruct Turkish entry to the bloc as long as Cyprus is divided.

The Turkish Cypriot enclave is holding a parliamentary election on April 19, which a party advocating a harder line in reunification talks is tipped to win.

Talat's position as Turkish Cypriot leader will not be affected, but his room to manoeuvre in peace talks could be crimped by hardliners, who advocate a two-state solution.

Downer said there were no fixed timelines on concluding the process, now moving on a chapter-by-chapter basis. Diplomats say that the present negotiation is in its "first reading" with a second negotiation round in the summer, and possibly bargaining starting in the autumn.

"It is important not to impose any timelines but it is crucial that the momentum is maintained," Downer said. "There is an expectation from the international community that this time the two leaders can finally reach an agreement".