3. The settlement will be based on a bi-communal, bi-zonal federation with political equality, as set out in the relevant Security Council Resolutions and the High Level Agreements. The united Cyprus, as a member of the United Nations and of the European Union, shall have a single international legal personality and a single sovereignty, which is defined as the sovereignty which is enjoyed by all member States of the United Nations under the UN Charter and which emanates equally from Greek Cypriots and Turkish Cypriots. There will be a single united Cyprus citizenship, regulated by federal law. All citizens of the united Cyprus shall also be citizens of either the Greek-Cypriot constituent state or the Turkish-Cypriot constituent state. This status shall be internal and shall complement, and not substitute in any way, the united Cyprus citizenship.
The powers of the federal government, and like matters that are clearly incidental to its specified powers, will be assigned by the constitution. The Federal constitution will also provide for the residual powers to be exercised by the constituent states. The constituent states will exercise fully and irrevocably all their powers, free from encroachment by the federal government. The federal laws will not encroach upon constituent state laws, within the constituent states' area of competences, and the constituent states' laws will not encroach upon the federal laws within the federal government's competences. Any dispute in respect thereof will be adjudicated finally by the Federal Supreme Court. Neither side may claim authority or jurisdiction over the other.
...this is paragraph three (as you have quoted it, originally).
While it describes the competencies of a constituent state, its exclusivity as a Jurisdiction, there is more to the paragraph than that, thus, I find your interpretation a bit short once again. Electors and Citizens are not the same Lordo, because as a Citizen you are the Citizen of the Republic, an Individual, whatever you are as a Person does not come first, it should not even matter. Cyprus, this government as a Cypriot's representation as Cypriots, does exist and will continue to exist (although Constitutionally reformed) by the will of the voters, the People, without further distinction or discrimination, identified by being Cypriot, as Cypriots. Electors, as in the self-representation allowed for, and proposed, with Constituent states, at another level of Government, does not constitute Citizenship; in Cyprus, Cypriots have Free Movement. Persons, Individuals choosing "who" they are as Persons (Liberty), choose where to live too (Freedom), and within that context, either a part of this distinct identity (geographically speaking), or a Minority within it. Nothing denies the existence of a set of Cypriot Constituencies. And as i've also said, whether Greeks (or the other "Communities") as a Constituency choose to benefit as Turcophones wish to, is mute. In either case there will exist a Federal Government, which in some respects is superior because, while the Constituencies would be equal, no Constituency has the powers exclusive to the Federal Government itself.