FACTBOX - Key issues in Cyprus conflict

(Reuters) - Greek and Turkish Cypriots on Thursday dismantled a poignant symbol of the island's decades-old division, re-opening the Ledra Street thoroughfare to pedestrians after almost half a century.

Leaders of the two sides have agreed to restart peace negotiations by June, a move likely to aid Turkey's bid to join the EU where Cyprus is now represented by its Greek Cypriots.

Here are key facts on the conflict:

HISTORY - Cyprus gained independence from Britain in 1960 in a power-sharing deal between the Greek Cypriot majority and the Turkish Cypriot minority. Turkish Cypriots left government in 1963 in a rift over attempts to renegotiate their say. A U.N. peacekeeping force was sent in 1964. A brief Greek-instigated coup prompted Turkey to invade in 1974, citing its right as a guarantor of Cypriot sovereignty. Greece and Britain were the other guarantor nations.

POLITICS - The European Union recognises the government which controls the Greek Cypriot south as representing the entire island in the bloc. The north is a breakaway Turkish Cypriot state recognised only by Ankara, which has about 30,000 troops there. Greek Cypriot-led Cyprus has veto rights over Ankara's drive to join the EU, and Turkey's membership talks have been partly suspended because of the deadlock in Cypriot peace talks.

DISPUTES - Key disputes between the sides are sovereignty, governance, territorial claims and people's settlement rights. The invasion and preceding violence uprooted an estimated 165,000 Greek Cypriots and 40,000 to 50,000 Turkish Cypriots, among a then total population of 630,000.

* Sovereignty - Disputes focus on whether a peace deal will be an evolution of the present Republic of Cyprus, as advocated by Greek Cypriots, or a "virgin birth" and merging of two equal states, advocated by Turkish Cypriots.

* Governance - There are disputes on how much say will go to each community in the context of a federal system, and what deadlock-easing mechanisms can be adopted for the smooth functioning of the state.

* Guarantor system - Greek Cypriots will not accept any system of third countries offering the island guarantees of its sovereignty similar to the one set up in 1960. Turkish Cypriots say they need Turkish guarantees because of past experience with Greek Cypriots.