Government Spokesman Kypros Chrysostomides said the Cypriot government and the people "rightfully feel disappointed with such commentaries in the report."

Washington accused the Cypriot government of "continuing to block any effort by Turkish Cypriot authorities or international parties to open Ercan airport or any port in northern Cyprus for travel to destinations other than Turkey."

In response, Chrysostomides said the US report "ignores the continuing Turkish occupation and makes the allegations
particularly unfair for the Republic of Cyprus."

"It (the report) does not correspond to the fundamental principles of the international law which all UN member states, including the US, say they respect and observe," he added.

Cyprus has been divided since 1974 when Turkish troops took over the northern third of the island following a failed Greek Cypriot coup seeking union with Greece.

The internationally recognized Greek-Cypriot dominated government has regarded the use of all the ports and airports in the Turkish controlled north as illegal.

In addition, Chrysostomides also denied the US allegations that the Cypriot government had "pressured the media to support its position on the UN plan concerning the island's reunification."

The plan, sponsored by UN Secretary General Kofi Annan, was rejected by Greek-Cypriots in an referendum last April because the Cypriot government held that the plan would solidify the island's division and meet the interests of the Turkish north.

"The debate on the Annan plan took place under absolutely democratic conditions," said the spokesman.

"Air time was given to those who supported the plan, perhaps more than to its opponents, and any references to non-democratic behaviour by the Republic of Cyprus are rejected without any hesitation," he concluded.