A.N.A. Bulletin, 14/03/96

From: "Greek Press & Information Office, Ottawa Canada" <grnewsca@sympatico.ca>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 837), March 14, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] OTE shares to go for 4.000 drachmas

The inner cabinet agreed on an offer price of 4,000 drachmas for Hellenic Telecommunications Organization (OTE) shares at its meeting yesterday.

Public subscription will begin March 26 and the 20 million shares in the share flotation will be admitted to the Athens Stock Exchange on April 19.

National Economy Minister Yiannos Papantoniou said that the share price of 4,000 drachmas included a 125-drachma dividend derived from OTE's 1995 profits.

Mr. Papantoniou said that the total value of OTE was set at 1.676 trillion drachmas, higher than all previous estimates.

Government spokesman Dimitris Reppas said that the 4,000 drachma price was about 65 per cent higher than previous estimates and was due to the improved picture of the Greek economy and OTE itself.

The inner cabinet also authorized Finance Minister Alekos Papadopoulos to release a further 2 per cent of OTE's present share capital, in addition to the 6.034 per cent being currently floated, in the event of an oversubscription.

The amount raised through the partial privatization will be used to finance the organization's modernization and investment program.

[2] Stavros-Elefsina motorway

The inner cabinet also decided to expedite construction of the Stavros-Elefsina motorway concession.

Environment, Town Planning and Public Works Minister Costas Laliotis is expected to award the final contract to the 'Attiki Odos' consortium in a few days' time.

The project, with an estimated cost of 400 billion drachmas at 1994 prices, will be completed in five years.

The 53.5 km highway will stretch from Elefsina, west of Piraeus, to Athens' new international airport at Spata, 20 kilometers east of Athens.

Work is expected to begin in the summer and the contractor will retain the right to operate the motorway for 18 years.

Drivers wishing to use the motorway will join it at one of 32 junctions along its length, paying a toll of approximately 450 drachmas plus VAT.

The project will be funded 16 per cent by investors' own capital, 30 per cent by state and European Union assistance and 54 per cent by borrowed capital.

The contractor 'Attiki Odos' (Attica Highway) groups seven major Greek construction companies, including 'Aktor' - the joint venture leader - and the semi-state French company 'Transroute' which operates 80 per cent of French motorways with toll gates.

The new highway will have the capacity to serve up to 300,000 motorists daily, while its construction will create 10,000 jobs.

[3] Flurry of initiatives to resolve protracted Cyprus problem in the pipeline, Cyprus president reveals

Cyprus President Glafcos Clerides said in an interview released yesterday that for the first time there was consensus between the United States and the European Union that Cyprus should join the EU, which, in turn, had a role to play in a settlement of the 22-year-old problem.

In an exclusive interview in Nicosia with Athens News Agency senior editor Gerassimos Zarkadis, Mr. Clerides disclosed that there were three initiatives on the horizon for a settlement of the Cyprus problem - one each from the US, Britain and the European Union.

He revealed that the American initiative was expected in June, while there were unconfirmed reports that the US presidential emissary on the Cyprus issue Richard Beattie could be replaced by President Clinton's regional "troubleshooter" Richard Holbrooke.

Mr. Clerides said that there were indications that Washington's approach consisted of helping the Greek Cypriot and Turkish Cypriot sides to minimize their differences rather than presenting a draft solution and, if progress was achieved, then the UN Secretary-General should be called on to render his good services.

But he did not rule out the US considering a new Camp David process for a final settlement of the problem if substantial progress was achieved between the two sides on Cyprus.

Mr. Clerides, who is expected to visit Washington in June for talks with Mr. Clinton, said that despite Turkey's unmoving positions on the Cyprus issue, progress had nevertheless been achieved since all international factors agreed that the issue of security was of equal importance with respect to both the Turkish Cypriots and the Greek Cypriots.

The Cypriot president said that for the first time all sides agreed that an international force should be stationed in Cyprus and that changes should be made in the "treaties of guarantee" so that both communities would feel secure about the future.

Mr. Clerides - who said that the EU, by way of Commissioner for External Relations Hans van den Broek, clarified that it set neither conditions nor a veto on Cyprus' accession to the EU although it preferred a solution of the problem to have been achieved before accession - stressed that he would not accept a Cyprus solution with the old system of guarantees.

Responding to criticism of him for his agreeing to discuss the issue of sovereignty, Mr. Clerides stressed that "there can be only one sovereignty, one international identity, one citizenship and one federal republic."

"But I am against saying that you do not discuss. You create bad impressions that way, and, secondly, if I take the liberty of saying that 'I do not discuss the issue of sovereignty', (Turkish Cypriot leader Rauf) Denktash will say that 'I (Denktash) d o not discuss the issue of the guarantees, I insist on the old guarantees'. Where will we be headed then? It is one thing to say 'I do discuss, but this is my position', but to say that 'I refuse to discuss' also contravenes the (UN) resolutions. The resolutions say that a solution acceptable to both communities must be found. How can a solution be found when each side says that 'I do not discuss that chapter'? I do not think we become understood internationally that way," Mr. Clerides explained.

The Cypriot president stressed his harmonious co-operation with the present and previous Greek governments, and defended the joint defense doctrine between Greece and Cyprus, which he said had functioned correctly during the recent Greek-Turkish crisis.

The full text of the interview will appear in a special feature insert in Saturday's ANA bulletin.

[4] Premier briefs Papandreou on current political issues

Prime Minister Costas Simitis visited PASOK leader Andreas Papandreou in hospital yesterday. After the meeting, Mr. Simitis said they had discussed current political issues.

The prime minister refused to answer journalists' questions, but according to sources, matters discussed included developments in the FYROM issue. Mr. Simitis briefed the PASOK leader on developments, and is also due to brief leaders of the Political Spring, Communist and Coalition of the Left and Progress parties today.

According to reports, the last medical tests are to be conducted today and tomorrow on Mr. Papandreou, after which a decision will be reached as to when he will be discharged from hospital.

[5] Premier, Tsohatzopoulos discuss bill on party financing

Prime Minister Costas Simitis and Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos yesterday discussed the main directions contained in the bill on financing political parties.

The government intends to promote the bill immediately and it will probably be discussed at a cabinet meeting tomorrow.

Among others, the bill includes clauses on funding for parties, the establishment of a ceiling on pre-election expenditures for parties and candidates, transparency in private financing sources, audits for party books and candidates by tax authorities and the imposition of sanctions on offenders, ranging from the curbing of state subsidization or the loss of parliamentary seats.

The interior, public administration and decentralization ministry has already prepared the bill which will include settlements concerning politicians' sources of income.

[6] Reppas comments on MAVI group

The government has not changed its position on the matter of the seven alleged members of the ultra-nationalist North Epirus Liberation Front (MAVI).

Government spokesman Dimitris Reppas made the announcement yesterday when asked to comment on an Athens prosecutor's motion to acquit the seven of charges that they staged an attack on an Albanian conscripts training base in 1994.

Mr. Reppas reiterated that the government is facing the issue with "special attention," adding that "we desire good relations with Albania, relations which depend on the observance of the Greek minority's human rights."

[7] Greek military chief to visit Bulgaria

Greece's Chief of Staff General Athanasios Tzoganis will pay an informal visit to Sandaski, Bulgaria tomorrow for talks with his Bulgarian counterpart Tsvetan Totomirov.

The purpose of the visit is to review the implementation of the military co-operation program signed last year and the signing of a corresponding accord for the current year.

At the same time, the two military chiefs will examine ways of broadening defense co-operation between the armed forces of the two countries and discuss issues of mutual interest concerning developments in the wider Balkans region.

[8] President meets with FYROM office head

The head of the Former Yugoslav Republic of Macedonia's liaison office in Greece, Ljupco Arsovski, paid a courtesy call on President of the Republic Kostis Stephanopoulos yesterday.

There were no statements made after the 20-minute meeting.

[9] European Parliament recommends IGC give guarantees for external borders

The European Parliament yesterday incorporated two amendments concerning the problem of security guarantees for the European Union's external borders in its resolution to the forthcoming inter-governmental conference (IGC).

Adopted with 267 votes in favor, 120 against and 71 abstentions, the resolution amounts to no more than a recommendation to the governments of the member-states.

The first of the two amendments, submitted by five members of the Socialist group, proposes that "the European Union guarantee the territorial integrity of the Union and the security of its external borders".

The second, submitted by three European Peoples' Party deputies, states, "the absolutely necessary strengthening of the capacity of the Union for assuming action abroad will be achieved only when the Union and the member-states act in a spirit of solidarity, more cohesively and effectively than at present, even regarding international developments and threats (and/or provocations) to the external borders".

During discussion of the resolution, the need for the provision of guarantees for the Union's external borders was especially stressed by Greek Eurodeputies Dimitris Tsatsos (PASOK), and George Anastasopoulos (ND).

"A European Union which declares its solidarity, the safeguarding of national identity and the freedom of European citizens, must also declare, in an unequivocal manner, that it guarantees its territorial integrity and its borders," said Mr. Tsatsos.

He also insisted on the need for the new treaty to include a special chapter on the problem of unemployment.

"Political democracy collapses without social justice," he said.

Mr. Anastasopoulos, who is also a vice-president of the European Parliament, said "the times dictate a European Union with a common external and defense policy that will guarantee its external borders".

He spoke of "limited hopes and even fewer expectations" in view of the IGC, describing the period the EU is going through as one of "deficits, not only in terms of public debt, but also of democracy, communication, transparency, and reliability".

Political Spring party Eurodeputy Nikitas Kaklamanis expressed his indignation at the exclusion of the European Parliament from effective participation in the deliberations of the IGC, and stated he would vote against the resolution.

[10] Evert pleased with outcome of Paris meeting

Main opposition New Democracy party leader Miltiades Evert said he was "enthusiastic" about the final statement issued by a one-day meeting of leaders of parties belonging to the Democratic European Union (UDE).

The meeting's final communiqui, also signed by Turkish Prime Minister Mesut Yilmaz, contains a number of additions by Mr. Evert.

The chapter of the statement titled "Stability and Safety in the Mediterranean" refers to Greece's and Turkey's intentions to find a peaceful solution to their differences in the Aegean, in accordance with international law and agreements.

The chapter also refers to "concerns at the continued division of Cyprus," expressing support for the United Nations and other organizations "working towards finding a peaceful settlement to the problem," and adds that Cyprus' petition for full membership of the European Union is "a step in this direction."

The communiqui condemns "every form of security violation and offensive action in Europe and anywhere else." The communiqui also pledged that its co-signatories "will work together to ... ensure strong support for European security and stability, as well as to avert any possibility of altering borders in Europe with the use of military force."

[11] Evert, Yilmaz cross swords at Paris meeting

Turkish Prime Minister Mesut Yilmaz yesterday said Ankara wished to ease tensions with Greece, offering dialogue in order "to restore trust and lead the two countries to reconciliation," but his statement was challenged by Greece's main opposition leader Miltiades Evert, who accused Turkey of constant provocations and not responding to Greece's goodwill gesture in lifting its veto on the Turkish-EU customs union.

"We want to decrease tension with Greece, develop a procedure of dialogue which will restore the confidence and lead to the reconciliation of the two countries," Mr. Yilmaz said at a one-day meeting of leaders of parties belonging to the Democratic European Union (UDE).

He said Ankara "respects international law," adding that "we co-participate with Greece in international fora and we will find a peaceful way to settlement."

Mr. Evert, however, reminded Mr. Yilmaz of his 1988 agreement with then Greek Foreign Minister Karolos Papoulias for confidence building measures between the two countries which Ankara did not respect, continuing its provocative attitude towards Greece.

Responding to a press question, Mr. Yilmaz did not rule out the possibility of referring the Imia crisis to the International Court at The Hague.

[12] Increased violations of Athens FIR noted by Turkish planes

Violations by Turkish warplanes of flight regulations in the Athens Flight Information Region (FIR) have increased in the last 40 days and are almost double the number in the same period of 1995, press sources said here yesterday.

Sources said the increase in violations of Greek air space by Turkish warplanes have been chiefly observed in the region of the Dodecanese as opposed to the Northern Aegean where they are usually noted.

According to the same sources, two Turkish F-15 fighter jets yesterday violated Greek air space near the island of Kastellorizo before being intercepted by Greek F-16 fighters east of the island.

[13] Papantoniou brings message from Simitis to Clerides

Greek National Economy Minister Yiannos Papantoniou will convey a message on the Cyprus problem from Greek Prime Minister Costas Simitis to Cypriot President Glafcos Clerides during his visit to Cyprus.

On arrival in Nicosia yesterday, Mr. Papantoniou said that the Greek prime minister places great importance on the promotion of a just solution to the Cyprus problem, although he did not reveal the message itself. Mr. Simitis and Mr. Papantoniou met early yesterday afternoon in order to discuss the issue.

Mr. Papantoniou said the aim of his visit to Cyprus is the reinforcement of economic co-operation between Greece and Cyprus in many new areas, such as the countries of the former Soviet Union and the Middle East, and the reinforcement of brotherly ties between Greece and Cyprus.

Mr. Papantoniou is due to discuss the development of common investments in new markets with his Cypriot counterpart, Christodoulos Christodoulou. He is also due to meet with President Clerides and Cyprus Archbishop Chrysostomos, as well as with members of the Cypriot government.

[14] Reppas denies press report

Government spokesman Dimitris Reppas said a report in the newspaper 'Eleftheros Typos' on a 'special agreement' between Greece and the US on the islets of Imia was not based on official data. Commenting on a statement on the issue by a US official appearing in the same newspaper, Mr. Reppas said "officials say many and various things", adding that "we should stay with Mr. Holbrooke's statement that the agreement on Imia was to return to the previous status quo."

[15] Hillary Clinton to visit Athens

Government spokesman Dimitris Reppas said yesterday "there were proposals and thoughts" regarding a possible visit by Hillary Rodham Clinton to Greece at the beginning of April to attend events marking the lighting of the Olympic flame.

In Ankara, an AFP dispatch quoted the US embassy as saying Ms Clinton would visit Turkey and Greece at the end of March. The US embassy described Ms Clinton's visit as a "courtesy call" and said she would be received by President Suleyman Demirel. The embassy added that Hillary Clinton would then fly on to Athens to attend events marking the departure of the Olympic flame for the Atlanta Games this summer. Turkish foreign ministry spokesman Nurettin Nurkan was quoted as saying that Ms Clinton would vis it Ankara and Istanbul on March 27-29. The Turkish newspaper 'Hurriyet' wrote yesterday that in order to maintain a balance between Greece and Turkey, the White House had decided that Hillary Clinton should visit Turkey also, but the US embassy in Ankara declined to comment on this assessment.

[16] Greek MPs discuss better national parliament representation with French colleagues

A delegation of the Greek Parliament's foreign affairs committee with colleagues of the French National Assembly and Senate yesterday to discuss ways of promoting the interests of national parliaments at the inter-governmental conference (IGC) in Turin at the end of the month. The delegation, headed by parliament's second vice-president, Pafsanias Zakolikos, proposed the setting up of a new representative body of national parliaments that will constitute a "reliable interlocutor" of the European Union, outside its present structures.

Mr. Zakolikos said this organ could be made up of representatives of foreign affairs committees of the national parliaments, and be assigned with the task of communicating their views to the Union. The Greek delegates also briefed their French colleagues on national foreign policy matters. French foreign ministry deputy secretary Mr. Martin, whom the Greek deputies also met, expressed "understanding for Greek positions". The delegation will visit Belgium and Luxembourg next.

[17] Coalition party congress begins today

The Coalition of the and Progress begins its second party congress today, which is expected to re-elect president leader Nikos Constantopoulos for another two-year term.

Despite confidence within the party that its central political aim of winning seats in Parliament at the next election will be attained, there are problems and concerns relating to its political and ideological identity, possible alliances it may be invited to participate in after the elections, and the potential to attract support and participate effectively in political developments.

The attainment of consensus on such issues within the party is considered difficult, and it is thought possible that the addresses to the conference by Prime Minister Costas Simitis and main opposition leader Miltiades Evert will ignite further discussion.

It is known that Mr. Simitis favors the creation of a strong center-left current, which apparently includes the Coalition, and it is precisely this prospect which is provoking intense discussions within the party.

[18] Expatriate journalist meetings announced

The General Secretariat of Overseas Hellenism announced yesterday that the Second Educational Expatriate Journalists Seminar will take place between May 5 and June 6 in Athens and Thrace.

The seminar will run concurrently with the Fifth Pan-Hellenic Journalists Conference organized by the Prefecture of Rodopi and Evros.

The seminar aims to provide the opportunity for expatriate journalists to expand their knowledge and be informed of current important issues in Greece.

Participation applications must be submitted to local Greek embassies and consuls by April 8. Those eligible to take part are journalists of Greek decent who have a good knowledge of the Greek language, are permanent residents abroad and regularly deal with the expatriate media.

[19] OA returns to profit after 18 years

Olympic Airways registered a net profit of 6.5 billion drachmas in 1995, in what is considered to be the debt-ridden national carrier's first real profit since 1977.

According to figures presented to the company's board by president and managing consultant Professor Rigas Doganis, operating profits totaled 17.4 billion drachmas, compared to five billion drachmas in 1994.

Revenues decreased by 11.7 billion drachmas, namely by 5 per cent (230.2 billion drachmas in 1994 compared to 218.5 billion drachmas in 1995), primarily due to the cutting of the Tokyo route, a general decrease in fares and a decrease in tourist traffic to and from Greece. Expenditures decreased by 24 billion drachmas, or 10.7 per cent.

The number of passengers traveling in 1995 increased by 3 per cent. Their numbers increased by 8 per cent in domestic routes, despite strong competition by private airlines (2,385,000 passengers in 1995 compared to 2,209,000 passengers in 1994), while the figure for overseas flights decreased by 1 per cent (2,492,000 passengers in 1995 as against 2,497,000 in 1994).

Revenues from domestic flights increased 8 per cent in 1995, while revenues from overseas flights decreased by 10 per cent.

Comparative expenditures decreased by 17.9 per cent due to the containment of expenditures in the framework of the stabilization program and the depreciation of the dollar.

Standing expenditures decreased by 5.2 per cent primarily due to a 4.8 per cent payroll decrease.

Olympic's available funds amounted to 46 billion on December 31, 1995, while in 1994 they totaled 21.5 billion drachmas.

The company covered all its commitments in 1995 with its own funds, it paid off the existing balance of short-term loans amounting to five billion drachmas and created a surplus of 46 billion drachmas, including 19 billion drachmas which was the first installment by the state in an increase in share capital.

According to reliable reports, Transport and Communications Minister Haris Kastanidis is expected to announce changes to the OA board today.

[20] Halyvourgiki steel mills announce major cutbacks, layoffs

One of Greece's last remaining heavy industries, the Halyvourgiki steel mill, unveiled a voluntary retirement program yesterday along with production cutbacks, in what the plant's management said was an effort to fight increasingly fierce foreign competition.

According to plant officials, workers at the steel mill, located west of Athens in the Elefsina industrial district, have agreed with the voluntary retirement plan.

Halyvourgiki's management once again cited extremely inexpensive steel imports from other European Union nations, the Balkans and east European countries, as contributing to a decline of the Greek steel production sector. Six steels mills currently operate in Greece, with Halyvourgiki the largest.

[21] Thessaloniki Stock Exchange to get trial run

The Thessaloniki Stock Exchange will have a trial run in the next ten days before it launches into full operation officially in April.

The Thessaloniki Stock Exchange was inaugurated on Tuesday night by Prime Minister Costas Simitis who said that there were high expectations from the new body.

Athens Stock Exchange President Manolis Xanthakis reiterated those great expectations during a press conference yesterday, adding that a study was currently underway defining the conditions and regulations for the body's co-operation with and promotion i n the Balkans.

[22] Thrace, Evros must receive more EU funding for development, mayor says

Demanding a reallocation of EU funds to achieve greater development for the northern Greek regions of Thrace and Evros, Alexandroupolis Mayor Ilias Evangelidis yesterday drew attention to Thrace's "geostrategical position" and the need to develop it as a communications, trade, energy, cultural and tourist center.

If the government continued its short-sighted and "Athens-centered" behavior, he warned, the opportunity to link Greece with the rest of the Balkans would be missed.

At a press conference at the Athens Journalists Union's Hall yesterday, the mayor stressed that Thra-ce, and especially the city of Alexandroupolis, was a communications, trade, energy, cultural and tourist junction following the great geopolitical changes in the broader region.

"If we want to upgrade the country, then the railway road and sea axis of Alexandroupolis-Burgas-Crimea-Novorosisk-Moscow should be done now, Egnatia should be constructed on the specifications of a European highway and the Alexandroupolis port must be developed in time," Mr. Evangelidis said.

He accused the government of giving priority to the construction of the Metro, the Spata airport and the Elefsina-Stavros highway, instead of major regional projects.

[23] Assessment of reports on possible terrorist attacks

The government is not concerned over the increased readiness in the armed forces observed over the last few days, according to government spokesman Dimitris Reppas. The press and media minister said that the national defense ministry had "certain, not particularly reliable, information" regarding potential terrorist targets.

However, it was not disclosed what group or faction was planning such attacks. Mr. Reppas said readiness exercises are periodically run, with the last alert taken on the initiative of the national defense ministry's leadership.

End of English language section.