"Given that approximately 77 per cent of tobacco consumed in the EU is imported, the regime's abolition would merely lead to 100 per cent of EU tobacco demand being met by imports," a commission statement said.The commission did decide to reform its subsidies programme by targeting aid on higher-quality tobacco. Proposals to consider strengthening cigarette packet health warnings were also agreed, as were proposals to consider reducing tar and nicotine content."It's a stepping stone in the right direction but it doesn't go anywhere near as far as we would have preferred," said Andrew Hayes, of the Association of European Cancer Leagues.Rejection by the commission of Mr Flynn's call for a complete phase-out of the subsidies represents a victory for the international tobacco industry. Phillip Morris, the American giant, mounted what EU officials described as an "incredible" campaign. It is understood the company enlisted a number of former agriculture commissioners to put its case.While the industry may face new anti-smoking curbs through stricter labelling, and eventually measures to impose new limits on cigarette tar and nicotine content levels, tobacco-growing subsidies will continue to benefit the manufacturers.. In a judgement with potentially far-reaching implications for the Cyprus dispute, the European Court of Human Rights ruled yesterday that Turkey had violated the rights of a Greek Cypriot who lost access to her property after the 1974 Turkish invasion of northern Cyprus. It was the first time an international court had held Turkey responsible for the consequences of its invasion, which displaced of at least 160,000 Greek Cypriots from the northern third of the island. "It is a great success.

I believe its effects could be enormous," said President Glafcos Clerides, the Greek Cypriot who heads the internationally recognised state of Cyprus. "If we take into account those who were forced to leave their homes, then the effects could be even greater."The Strasbourg-based court, an arm of the 40-nation Council of Europe, issued its judgement at a time when the United States, Britain and its European Union allies are intensifying efforts to make 1997 the year of a settlement of the Cyprus dispute. There was no immediate reaction from Turkey, but the prospect of a wave of Greek Cypriot legal claims stemming from the court's judgement may stiffen the resolve of the Turkish government and its Turkish Cypriot allies to maintain a hard negotiating stance.Since the Turkish invasion, Cyprus has become an island of two ethnically pure sectors, with only a handful of Greeks left in the north and almost no Turks in the south. Much Greek property in the north has ended up in the hands of Turkish Cypriots or settlers from the Turkish mainland.The court ruled by 11 votes to six that Turkey had violated the rights of Titina Loizidou, a tourist guide, by denying her access to plots of land that she owned in the northern coastal resort of Kyrenia. She launched her case after being detained by Turkish Cypriot police in 1989 as she entered the Turkish-controlled sector of Nicosia.Accompanied by a group called "Women Walk Home", Ms Loizidou was trying to draw attention to the fate of Greek Cypriots displaced from northern Cyprus in 1974. The Turkish Cypriot authorities later insisted on her return to the Greek sector of Nicosia.One vital element of the court's judgement was that Turkey, rather than the self-proclaimed "Turkish Republic of Northern Cyprus", was responsible for what happened to Ms Loizidou.

Turkey, which keeps 30,000 troops in northern Cyprus and is the only country to recognise the TRNC, argued that it could not be responsible since the events took place outside the territory of Turkey.The Council of Europe said in a statement: "In the court's view, it was obvious from the large number of troops engaged in active duties in northern Cyprus that the Turkish army exercised effective overall control there. In the circumstances of the case, this entailed Turkey's responsibility for the policies and actions of the `TRNC'".The court dismissed Turkey's argument that it had no authority to consider the case since it related to events before 1990, when Turkey accepted the court's compulsory jurisdiction.The court deferred judgement on Ms Loizidou's claim for compensation and asked the Turkish government to submit its observations within six months. The court also dismissed her claim that she had lost her home, commenting that she had not been living in Kyrenia at the time.. British Airways will end its increasingly acrimonious relationship with USAir by selling its 24.6 per cent stake in the American carrier.

The move follows conditional approval earlier this month for BA to forge a new transatlantic alliance with American Airlines. BA said it expected to dispose of the shareholding at a premium to the $400m it paid in 1993. In accordance with the terms of the original agreement, BA has offered to sell the shares back to USAir but neither airline would disclose the price. The decision to terminate the relationship with USAir heightened speculation that BA would accept the undertakings tied to approval for the alliance with American, principally that the two carriers surrender 168 take-off and landing slots at Heathrow to rival airlines.Bob Ayling, chief executive of BA, said BA had taken the USAir decision with regret but he added that such a move had become inevitable. "It would clearly be unwise to pursue an alliance with an unwilling partner. Provided a sale can be achieved at an acceptable price, I intend to bring our relationship with USAir to a close."Although USAir is suing BA and American in the US courts, alleging that the alliance breaches anti-trust rules, Mr Ayling said this had not sparked the decision to sell the stake. He said BA believed the action to be "groundless".USAir welcomed the announcement, describing it as an important first step in its attempts to become an independent, effective competitor at Heathrow airport. A spokesman said USAir would continue to pursue its lawsuit against BA and American.Industry observers suggested BA would seek to raise about $500m from its stake of various classes of untraded preferred stock.