* Cyprus talks set to start again next week
* U.N. wants progress by October
* Decades of failed talks cloud future
By Justyna Pawlak
BRUSSELS, July 15 (Reuters) - Turkish Cypriot leader Dervis Eroglu has accused his Greek Cypriot partners of foot-dragging in peace talks on the divided island but said progress can still be achieved by an October deadline set by the United Nations.
U.N. Secretary-General Ban Ki-moon called on Cypriot leaders last week to overcome their differences by then, with a view to ending a conflict that is harming Turkey's accession to the European Union.
Eroglu, speaking to Reuters during a visit to Brussels, said peace talks were due to start next week, with two meetings scheduled each week to narrow differences between the two sides on a range of issues.
But he was cautious about the prospects for success.
"We do want a settlement by then (October)," he said. "With respect to the Greek Cypriot side, I can't talk on their behalf. But the impression we get is that there are some problems, regarding willingness."
"When you look at the position of the Greek side, they are a recognised state ... This is a comfortable situation and time is on their side."
The eastern Mediterranean island of about 1 million people was split in a 1974 Turkish invasion triggered by a brief Greek-inspired coup. Decades of separation have made resolving the conflict more difficult and talks, relaunched in 2008, have been limping along.
Greek Cypriots represent the island internationally and in the EU, and say Turkey cannot join the bloc until the division of the island is resolved.
Turkey is the only country that has recognised the Turkish Cypriot state and has threatened to freeze relations with the rotating EU presidency if Cyprus assumes the post in 2012 without a solution to the divided island.
In principle, the Greek and Turkish Cypriots agree to unite the island as a two-zone federation but have been unable to reconcile differences ranging from redrawing existing boundaries to property claims by people uprooted in the conflict.
Eroglu said progress had been made on issues such as policing and listed the economy, governance, power sharing and EU issues as areas were divisions were less pronounced.
The United Nations says that if the two sides are able to reach convergence on all core issues, it will pave the way to convening a final international conference.
Eroglu also said Cyprus might take advantage of its six-month rotating presidency of the European Union, which it takes over in July 2012, to slow down talks. An EU state that holds the position oversees many policy discussions in the bloc.
"Most likely the plan is to use the advantages of the presidency," he said. "They will be able to organise meetings, conferences, which will give a positive message to their vision ... There is no concern for the Greek side about time."
(Editing by Rex Merrifield and Timothy Heritage)
Our Standards: The Thomson Reuters Trust Principles.
