Greek Cypriot party leaders have given the go-ahead to the country's President, Mr Glafkos Clerides, to take part in a second round of UN-sponsored settlement talks scheduled for August 11th-16th in Switzerland.
The Greek Cypriots, in consultation with Athens, have begun to formulate their position on a draft document outlining a comprehensive Cyprus settlement.
The document was presented to the two sides by the UN mediator, Mr Diego Cordovez, during the first round of face-to-face negotiations which convened two weeks ago at the secluded Troutbeck resort north of New York.
However, the Turkish Cypriot leader, Mr Rauf Denktash, has threatened to boycott the August round unless the EU puts "on ice" Cyprus's accession talks, which are due to begin in January.
"The EU has to postpone Cyprus's application while the intercommunal talks are proceeding," Mr Denktash declared.
He has consistently argued that Cyprus could not join the EU until after a settlement was reached and Turkey was made a candidate for full membership.
During a visit to the island last weekend the Turkish Deputy Prime Minister, Mr Bulent Ecevit, challenged the UN plan to reunite the divided island in a bizonal, bicommunal federation by proclaiming Turkey's enduring support for the "Turkish Republic of North Cyprus".
He threatened that if EU accession discussions went ahead Ankara would "partially integrate" the Turkish-occupied northern third of the island into the mainland by taking over foreign affairs and defence.
On Thursday Mr Ecevit added: "From now on the Turkish Cypriots will not feel all alone in the world because they will be represented by Turkey" - implying that Ankara would be taking the decisions in the bicommunal negotiations.
Greek Cypriot politicians condemned the statements as a "slap in the face to the international community", which is strongly committed to the UN-brokered negotiations.
The Greek Prime Minister, Mr Costas Simitis, stated angrily that Athens would use "all measures", including its veto, to block EU membership to the other five candidates if other members, notably Germany, sought to block Cyprus's entry on the grounds the island remained divided.
