I think DT. is right. Demilitarise the whole island.
It is a fundamental mistake to believe that Cyprus, whether united or partitioned, would ever have the economic or financial wherewithall to establish and maintain its own military force which would have even a deterrent effect.
Look at (a) the military budget of Cyprus (RoC on its own, or RoC plus TRNC) and then look at the military budget of Turkey, Greece, Syria, Lebanon, Israel, Egypt i.e, Cyprus' immediate neighbours. See the authoritative : http://first.sipri.org/non_first/milex.php
Cyprus 2005 = 1.4% of GDP 2006 = US$239m
Turkey 2005 = 2.8% of GDP 2006 = US$11291m
Greece 2005 = 4.1% of GDP 2006 = US$9642m
Lebanon 2005 = 4.5% of GDP 2006 = US$899m
Syria 2005 = 5.1% of GDP 2006 = US$5526m
Israel 2005 = 9.7% of GDP 2006 = US$11373m
Egypt 2005 = 2.8% of GDP 2006 = US$2710m
Let's put the above in proportion : Turkey spends about the same in 1 week what Cyprus spends in 1 year on the military.
Then consider that (b) of these only Turkey and possibly (but I don't really think so) Greece can be said to have any 'territorial ambitions'.
On the assumption that Cyprus does not have territorial ambitions against any of these countries - I've never heard anyone suggest this - then the need for a military to face an external military threat is either simply non-existent or, at most, simply impossible to maintain (viz. Turkey). The active use of the military of course assumes that there is the political will to do so, and the record of the last thirty four years is that RoC has not had the political will nor the military capacity to militarily eject Turkey from Cyprus.
Of these neighbours all have maritime claims which do or might conflict with Cyprus claims (again whether of a united or partitioned Cyprus). Therefore if any armed service is needed, then there may be a case for maritime - not military - forces.
The blunt reality is that Cyprus was, is and will remain a military minnow. The only practical target of a Cyprus military is ... Cypriots.
Let's just demilitarise. The immediate effect of that is to pull the rug from under the feet of the Turkish military's justification for continued presence on the island. Demilitarisation is a win for Turkish Cypriots, foir Greek Cypriots, for all islanders, and for peace.
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