Turkey and Greece cancel military maneuvers near Cyprus

"In the spirit of the Olympic games, we are announcing together that we will cancel military exercises that are taking place around Cyprus," Papandreou said. Athens is hosting the Olympics in August 2004.

Gul, standing at Papandreou’s side, later added that "both sides have the will to solve problems. Talks are going on. We are optimistic."

The cancelation applies to two major Greek and two major Turkish military exercises that were scheduled for the Cyprus area later this year.

Greece’s annual Nikiforos exercises on and around Cyprus were scheduled to start on Oct. 20.

Turkey and Greece also canceled military exercises in that area last year and in 2001 to promote cooperation.

Gul and Papandreou met on the sidelines of a meeting of the 11-member Mediterranean Forum, which apart from Greece and Turkey also includes Algeria, Egypt, France, Italy, Malta, Morocco, Portugal, Spain and Tunisia. Foreign ministers and high-ranking officials of the countries met for two days of talks aimed at enhancing economic and political cooperation and seeking a common stance against terrorism.

Tensions in Iraq and in the Middle East will also be discussed.

Greece is looking to calm tensions as Cyprus prepares to join the European Union in 2004.

Turkey is also eager to reduce friction in the area. Joining the EU has been a key goal of Turkish governments and EU members have made it clear that Turkey must work to resolve the division of the island before joining.
Gul is scheduled to visit Athens on Oct 21.