Turkish Cypriot Leader Rauf Denktash January 29 reaffirmed his two-state position on the Cyprus issue, two days before a new round of "proximity talks" that will start in Geneva on January 31.

In a statement made available to the press here, Denktash said "there exists in Cyprus today two equal sovereign and democratic states which represent the two peoples of the island." "Reconciliation in the island will only be permanent if it is achieved between the two equal states, and the balance between Turkey and Greece preserved," he added.

Cyprus has been divided into a Turkish Cypriots-ruled north and a Greek Cypriots-dominated south since 1974 when Turkish troops invaded and occupied the northern third of the island in the wake of an aborted coup which sought unity with Greece.

Turkish Cypriots in 1983 unilaterally declared a "republic of northern Cyprus," which is recognized only by Turkey. Turkey and Greece take sides in the divided island along ethnic line.

UN has been trying to end the 26-year division through a bi-communal or bi-zonal federation formula, but Turkish Cypriots optedout of peace talks in 1997 and later conditioned the resumption of the negotiations on recognition of their republic as a equal state.

The upcoming Geneva meeting is the continuation of last December's proximity talks in New York that was sponsored by UN Secretary General Kofi Annan between Cypriot President Glafcos Clerides and Denktash.

Denktash stressed in the statement that any comprehensive initiative directed toward achieving lasting reconciliation requires a common ground to be found for negotiations between the two parties, and that if progress is to be achieved in Cyprus, thiscan only be done, on the basis of the equality of the two parties.

Denktash believed that "there is a new era in front of us. We believe we are entering this era under new conditions, with new parameters and new hopes." "It was in this understanding that we went to New York as two equal parties. In order to facilitate progress, we requested the international community to confirm that a joint administration in Cyprus does not exist," he added.

Denktash said that in New York he conveyed his view at the highest level to Annan, claiming that "our views are beginning to gain ground within the UN framework in New York and among interested third parties."

"As always, we will attend the forthcoming proximity talks, which will take place in Geneva, with good-will and in a constructive spirit," he declared.

Denktash put forward the confederation proposal on August 31, 1998. He said in the statement that the proposal, which had been rejected by the UN and Cypriot government, had opened a path leading to what he called a lasting settlement on the Cyprus issue.