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This paper aims to analyze the greatest problems of the compound Aegean dispute between Greece and Turkey, namely the delimitation of territorial waters, legal entitlement of some Aegean Islands, and delimitation of their respective continental shelves. This article analyzes the nature of each dispute and potential solutions in light of previous international adjudications on similar disputes. Greece and Turkey both have different approaches for the dispute. Greece regards the dispute as a legal issue while Turkey regards it as a diplomatic issue and insists on diplomatic measures only for the resolution of the dispute. The differences in the Parties’ approaches have made the issue even more complicated. For this reason, referral of the dispute to an arbitral tribunal is the best solution for lasting peace in the area and adherence to equitable principles. Additionally circumstances particular to the dispute can be considered in the context of international treaties. In case Greece and Turkey fail to agree on inter-state arbitration, the best alternative would be mediation by the U.S. and/or NATO. The U.S. and NATO have neutral positions vis-à-vis the Aegean dispute, and they will both benefit from the resolution of this ongoing conflict.

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