A bill to support the Government of the Republic of Cyprus as the sole legitimate government on Cyprus and to facilitate the withdrawal of Turkish military forces from Cyprus.

Expresses U.S. recognition of the Government of the Republic of Cyprus as the sole legitimate government on Cyprus. Expresses U.S. support for a negotiated settlement to the conflict on Cyprus and for the withdrawal of all foreign military forces, including Turkish troops.

Prohibits obligating funds for military assistance for Turkey after FY 1984 unless the Turkish military forces which are on Cyprus do not exceed those permitted by the 1959 Treaty of Alliance.

Limits the amount of foreign military sales financing provided for Turkey under the Arms Export Control Act for each of FY 1985 through 1987. Prohibits any foreign military sales financing for Turkey after FY 1987 unless: (1) the Turkish military forces which are on Cyprus do not exceed those permitted by the 1959 Treaty of Alliance; or (2) the Congress enacts a joint resolution approving the furnishing of such financing notwithstanding the failure of the Turkish Government to withdraw its military forces from Cyprus. Limits such financing if Congress enacts such a joint resolution.

Amends the Foreign Assistance Act of 1961 to require that the President's certification to Congress of assistance to Greece or Turkey shall include a statement by the President on whether Turkey has transferred to Cyprus any defense articles or other goods which were acquired with assistance provided by such Act or the Arms Export Control Act. Requires the statement to describe the items transferred and the U.S. actions taken in response to such transfer.

Requires the President, in determining the levels of security assistance for Turkey for each fiscal year, to take into account whether Turkey has taken all possible steps to arrange for military forces from another country or for a multinational military force, acceptable to the Republic of Cyprus, to replace Turkish military forces on Cyprus. Requires the congressional presentation documents for security assistance programs for each fiscal year to describe how such efforts or lack of efforts influenced the President's decision on the amount of security assistance to request for Turkey.

Requires the Administrator of the Agency for International Development to develop an assistance program to promote the economic development of Turkish Cypriots if Turkey withdraws all its military forces from Cyprus which are in excess of those permitted by the 1959 Treaty of Alliance.