First, we find the total area of the rectangle and then subtract the area of the two semicircles.
Area of rectangle:

Where:
width = 16 cm
length = 34 cm
Substitute the values:

We have that 2 semi-circles make a whole circle, and the area for the circle follows the formula:

Where:
d = diameter = 16 cm
pi = 3.14
Substitute the values:

Therefore, the area of the paper that remains is given by:

Answer: 343.04 cm^2