A.N.A. Bulletin, 30/05/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 899), May 30, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Gov't calls off planned Pangalos-Gonensay meeting

The government yesterday canceled a meeting between the Greek and Turkish foreign ministers scheduled for June 3, citing "government instability" in the neighboring country and a worsening of relations resulting from recent statements by Ankara and what it called repeated Turkish violations of Greek airspace and territorial waters.

Theodoros Pangalos and his Turkish counterpart Emre Gonensay had agreed at a recent meeting in Bucharest to hold talks on the sidelines of a NATO meeting in Berlin on June 3.

"The meeting will not take place," Press and Media Minister Dimitris Reppas told reporters in Thessaloniki.

A foreign ministry statement yesterday stated that Greece had agreed to the new meeting so that the two countries "might find some basis for the commencement of an effort to de-escalate tension," stressing that the Berlin meeting would not have constituted a "structured dialogue" nor "pre-paration for negotiations."

It was within this framework that diplomatic officials of the Greek and Turkish foreign ministries met Tuesday in Geneva as personal representatives of the two ministers.

"However, the government instability which has arisen in Turkey has made continuation of that effort precarious, precisely due to its nature, since the prospects of the present government in Turkey are unclear," the statement said.

The foreign ministry said that after the Bucharest meeting both Turkish Premier Mesut Yilmaz and Mr. Gonensay had made television statements in which "they added terms and conditions to any effort for an improvement in Greek-Turkish relations, which once again bring to the forefront fixed Turkish designs."

Furthermore, the foreign ministry added, in their statements Mr. Yilmaz and Mr. Gonensay even "expanded and exacerbated the territorial claim put forward by Turkey after the Imia crisis."

The conclusions from the Geneva meeting were similar, the statement read.

The foreign ministry went on to accuse Turkey of continuing its tactic of violating Greece's airspace and territorial waters and reneging on the commitments it had undertaken to maintain the status quo ante in the regions from which the military forces of the two countries were withdrawn after the Imia crisis in late January.

"In view of this, the Greek government considers that a new meeting between the foreign ministers in Berlin would not be useful at the present conjuncture and until the conditions have been created for a new contact between the two countries at this level," the foreign ministry statement said.

"In the meantime, Greece reiterates its insistence with regard to the need to implement the 1988 Papoulias-Yilmaz agreement and calls on Turkey to do the same in order to avoid situations which pose a threat to peace in the Aegean," the statement concluded.

In 1988, then foreign minister Karolos Papoulias and his Turkish counterpart at the time and now premier, Mesut Yilmaz, agreed in the seaside resort of Vouliagmeni near Athens to promote confidence-building measures (CBMs) based on the principle of good neighborliness.

Yesterday's cancellation of the Berlin meeting follows an incident Tuesday near the Imia islets involving a Greek coast-guard vessel and a Turkish patrol boat which violated Greek territorial waters. It was the third such incident in Greek territorial waters between the Imia islets and Kalymnos since the Imia crisis.

Athens on Tuesday lodged a protest over the incident which was rejected by Ankara, which countered that the incident occurred in Turkish territorial waters.

A shadow had been cast over the Berlin meeting also due to recent statements by Ankara claiming the existence of so-called "gray areas" in the Aegean, and its continued refusal to move towards seeking recourse to the International Court of Justice at The Hague over the issue.

[2] Government spokesman

"These communication procedures were aimed at increasing the efforts of both sides to find a basis for de-escalating tension between Greece and Turkey. However, the systematic violations and infringements by Turkey and the statements by officials of Turkey's political leadership, who repeat Ankara's known claims against our national rights, have led the Greek government to believe that there is no reason for this meeting to take place in Berlin," Mr. Reppas said from Thessaloniki, where he was attending t he official opening of the Macedonian Press Agency.

At the same time, Mr. Reppas sent a clear warning to Ankara that Greece would "react" to plans to settle 400 Turks on Imvros.

"If Turkey goes ahead with the movement of aliens to Imvros, the Greek character of the island will be distorted and this will overturn the provisions of the known treaties," he warned, adding that "such moves illustrate once again that it is not in Turkey's intentions for it to exhaust all possibilities for rapprochement with Greece."

Asked about the stance of the United States on Greek-Turkish relations, particularly following elections there in November, Mr. Reppas reiterated that "Greek foreign policy is based on principles which are in line with international law and order, inter national agreements and treaties."

"The US government, at least theoretically, has accepted that Greece's positions are well-grounded and just. We believe that the United States will remain firm in this stance, regardless of domestic developments there. All (countries) have a duty, over and above what they might say theoretically, to show in practice that they have a policy which is in harmony with international law, as is the case with Greek foreign policy," Mr. Reppas said.

[3] Ankara's reaction

Turkey called the Greek government's decision to cancel the scheduled meeting "unfortunate."

An announcement by the Turkish foreign ministry said "this decision means that Greece does not accept the appeal made by the Turkish prime minister for a start to Greek-Turkish dialogue.

"We feel regret that the agreed upon procedure for dialogue between the two countries has been led to a deadlock, without adequate substantiation on behalf of Greece... (this procedure) had begun with the aim of the resolution of issues between the two countries with sincere and constructive negotiations," it said.

It added that Athens' reason of domestic political developments in Turkey was "unacceptable."

"This position of Greece constitutes an indication of a lack of political will on its part for an improvement in bilateral relations and a quest for a solution in a sincere manner," it said, adding that "despite the alarming position of Greek government s, Turkey will continue to insist on a solution through dialogue of existing issues with Greece, with which it is obliged to live in the same geographical region. We believe that at least this position is to the benefit of both the Turkish and Greek people."

The Greek government's decision to cancel the June 3 meeting between the Greek and Turkish foreign ministers was relayed yesterday to the Turkish foreign ministry by Greece's Ambassador to Ankara Dimitris Nezeritis.

Referring to low-level contacts Greek and Turkish diplomats had in Geneva, Turkish foreign ministry spokesman Omer Akbel said "the meeting gave both sides the chance to present their views in a comprehensive manner."

"Turkey reiterated the need for immediately implementing confidence-building measures (CBMs) in the Aegean," Mr. Akbel said, adding that Tuesday's incident off Imia "demonstrated how necessary implementation of such measures remains."

[4] Opposition remarks

In a statement following announcement of the cancellation, main opposition New Democracy party said that the "government was right to cancel the meeting," adding however, that the decision was taken with great delay. ND also stated that the scheduled meeting had been planned without even the basic conditions for its successful conclusion taken into account.

The Political Spring party said a "step-by-step" policy on dialogue with Ankara would have "catastrophic" results.

Party spokesman Notis Martakis reiterated his party's warnings that "a compliant stance vis-a-vis Ankara would only serve to increase the appetite of the Turks."

[5] Gov't expresses regret at Tuesday's violence in Albania

The government yesterday expressed regret over events in Albania after security forces attacked opposition party supporters in the center of Tirana on Tuesday following national elections in the neighboring country.

"These events show that democratic institutions have not been consolidated all over the world to any great extent, at least on the basis of the accusations," government spokesman Dimitris Reppas said, adding however, that in order to take a "final and valid" position, the Greek government would first await the official reports of the international observers who monitored elections in Albania at the weekend.

"The main concern of the Greek government is to protect the interests of the Greek minority in the neighboring country, a right which is established by agreements and a right which we will not give up under any circumstances," Mr. Reppas said.

He underlined, however, that the Greek government could not interfere in the domestic affairs of other countries, and particularly electoral procedures.

"The Greek government stresses as its fixed position its desire for there to be democratic, normal conditions in the daily life of the citizens of each country, and particularly the neighboring countries, with which we have well developed relations, an d of course that elections are held within the framework of these democratic conditions," the spokesman added.

[6] Opposition statements

Main opposition New Democracy also expressed its regret yesterday over the recent election turmoil in Albania, adding however, that it will await the final report from international observers.

ND also called on the government to take necessary actions so that an OSCE report on the elections is quickly released.

Former premier and ND honorary leader Constantine Mitsotakis expressed his "deep anxiety" at recent developments in the neighboring country, saying that following the "abnormal and anti-democratic manner in which the elections were held in the country,

Albania is sliding once again into totalitarianism."

"This entails the beginning of a new period of violations of the basic human rights of the Greek minority and operates simultaneously as a factor of destabilization for the entire region, as, for the first time, the course to democracy which began on the fall of the communist regime is being reversed," Mr. Mitsotakis said.

He said he believed that these election results could in no way be recognized and that Greece, the EU and the US should exert their influence for the holding of another ballot.

Meanwhile, the Coalition of the Left and Progress announced yesterday that it will stage a rally outside the Albanian Embassy today at 6pm to protest what it called election violence in the neighboring country and to express "solidarity with the Albanian people."

[7] Kaklamanis: strong economy and military best deterrent for Turkey

Parliament President Apostolos Kaklamanis said in Thessaloniki yesterday that a strong Greek economy and armed forces would make it clear to Turkey that it would be a risky venture to carry out its threats to use force against Greece.

"Our country is facing critical problems on the external front to the East and we have 'friends' who do not appear to be interested in the principles of international law, nor in the treaties between states which determine their borders," Mr. Kaklamanis said in reply to reporters' questions on arriving at the Council of Europe (CoE) Parliamentary Assembly's spring session which began in the northern city on Monday.

"Particularly in our region, the regime concerning the Aegean is clearly laid down in international conventions - the Treaty of Lausanne and the Paris Convention," Mr. Kaklamanis added.

"Our friends, however, want to drag our country either to compromise or conflict," Mr. Kaklamanis said, underlining that neither would take place with respect to the Aegean.

[8] Turkish Islamists demand Saint Sophia be turned into a mosque

Hundreds of Islamists demonstrated yesterday in Istanbul outside the Orthodox church of Saint Sophia demanding the 1,600-year-old cathedral be converted into a mosque.

The demonstration was organized by the 'World Order' organization, which is affiliated to the nationalist, Islamist Great Union Party, on the occasion of the 543rd anniversary of the fall of Constantinople to the Turks.

The Church of Saint Sophia was built in 306 by the Byzantine emperor Constantine II and was converted into a mosque in 1453 by the Ottoman sultan Mehmet II, the conqueror of Constantinople.

It was converted into a museum in 1934 by Kemal Ataturk, founder of the modern Turkish state. Its conversion into a mosque is one of the aims of the Turkish Islamists.

[9] Reppas comments on Cypriot elections

In comments yesterday on the outcome of the elections in Cyprus, the Greek government said it was cooperating with the Cyprus government and whatever initiatives undertaken or due to be undertaken on resolving the issue of the divided island were welcome.

"The Greek government is in co-operation with the Cyprus government. Whatever initiatives have been undertaken or are due to be undertaken are welcome by us provided they promote a just and legal solution to the Cyprus problem in the framework of UN resolutions," government spokesman Dimitris Reppas said.

"What the Greek government has a duty to do and is doing in full is to intensify its effort to have the issue of Cyprus' accession to the European Union led unimpeded to the beneficial for both Cyprus and the European Union end, which is the completion of accession processes and the inter-governmental conference immediately afterwards," Mr. Reppas said.

[10] New Macedonian Press Agency offices inaugurated

The new offices of the Macedonian Press Agency (MPA) were inaugurated in Thessaloniki yesterday in the presence of Parliament President Apostolos Kaklamanis, Press and Media Minister Dimitris Reppas, government members, deputies and local authorities.

Speaking during the ceremony, Mr. Kaklamanis stressed the need to strengthen the competitiveness of the MPA and other state media agencies against private media by modernizing and upgrading their services.

He said the MPA aimed at briefing Greek and international public opinion on events in the Balkans, eastern Europe and the Mediterranean and promoting the achievements and possibilities of the business, scientific and cultural world of northern Greece.

Mr. Kaklamanis said the mission of the press and the mass media was to help the citizen with multifaceted informatics, the free movement of concepts and the comparison of arguments.

During the official opening, Mr. Kaklamanis said that Greece and the whole of the Balkans were threatened by Turkish expansionist policies, the continuing Yugoslav problem and the illegal occupation of the northern part of Cyprus for the past 22 years.

Mr. Kaklamanis made distinctions between Turkey and the rest of the Balkan countries, saying that it should be clear that "countries which attempt to influence the fate of the peoples of the region, such as the powerful countries of Europe and the West in general" are not Balkan countries, "nor is Turkey, whose only relation to Europe and the Balkans belongs to the time of mediaeval Ottoman darkness."

On his part, Mr. Reppas said the current era of technological developments had led people to become more and more distant spectators of efforts to create a global communications system on which the development of the digital post-industrial society would be based.

[11] Hungary secures Greece's support for EU, NATO bids

Visiting Hungarian President Arpad Goncz said yesterday he had secured Greece's support for his country's application for both European Union and NATO membership.

Mr. Goncz told a press conference he was "pleasantly surprised" during his high-level talks with Athens' willingness to support the Hungarian bid, particularly given Athens' concern over the redistribution of EU funds to new members, which would be affected by a Community enlargement toward central and eastern Europe.

Mr. Goncz, who arrived in Athens Monday on an official visit and heading a high-ranking Budapest delegation, welcomed the imminent commencement of EU accession negotiations with Cyprus and Malta six months after the completion of the inter-governmental conference (IGC), expressing a view that Hungary could also begin accession negotiations six months after the IGC. "I believe we have convinced Greece that our (EU) accession would bring benefits to both countries," Mr. Goncz said, adding that Greece an d Hungary, as agricultural nations, could play a particular role in the EU farming sector.

The Hungarian president, who met Monday with President of the Republic Kostis Stephanopoulos and has held talks with government officials, added that neither government had any "difference of views" on the issues of the Aegean continental shelf and the Cyprus problem. He also said coinciding views were ascertained on issues pertaining to the future of Europe.

Several Hungarian ministers and undersecretaries accompanying Mr. Goncz were also holding talks with their Greek counterparts in the ministries of the interior, national defense, foreign affairs, public order, industry, and agriculture, while an accompanying delegation of 33 Hungarian businessmen is meeting with Greek counterparts. Contacts will continue today with businessmen in Thessaloniki, which is the next stop on Mr. Goncz's itinerary.

Replying to press questions on the forthcoming elections in Russia, Mr. Goncz said he did not fear any "turning back," adding that it was only natural that the developments in Russia would bring about changes also in its foreign policy.

[12] Hellenic studies in Hungary

Earlier yesterday, during Mr. Goncz's visit to the Society of Greek Playwrights, Culture Minister Sta-vros Benos announced the conversion of the current Hellenic studies center in Budapest into the first Hellenic Institute in Europe, the first such cultural entity on the continent.

The Budapest center was originally founded by Dimitris Hatzis.

Mr. Benos made the announcement while accompanying the Hungarian president on his meeting at the society's headquarters with several Greek playwrights.

Mr. Goncz, himself a noted author, was declared an honorary member of the society.

[13] Meetings with northern Greek businessmen

The Hungarian president was welcomed in Thessaloniki later yesterday by Macedonia-Thrace Minister Philippos Petsalnikos.

During the visit to Thessaloniki, the 33-member Hungarian delegation accompanying Mr. Goncz met with Thessaloniki businessmen at the Thessaloniki Chamber of Commerce and Industry, in the presence of Justice Minister Evangelos Venizelos.

Mr. Goncz also met with the city's Mayor Constantine Kosmopoulos, who awarded the Hungarian president the city's gold medal.

During his speech at the Chamber of Commerce, Mr. Goncz expressed his satisfaction at the meetings he had in Athens with the Greek president and prime minister, and said conditions for co-operation between the two countries in the economic sector exist.

[14] New PASOK Parliamentary Group presidium meets with Andreas Papandreou

PASOK president Andreas Papandreou last night made his first appearance before television cameras since leaving the Onassion hospital two months ago, when he met with the presidium of the ruling party's Parliamentary Group.

The group's secretary Nikos Akritidis told reporters that the members of the presidium were all deeply moved at meeting with the former premier.

He said that Mr. Papandreou underlined the duty to carry out the promises made to the people and to the need to maintain the movement's historical unity.

Mr. Akritidis said Mr. Papandreou reassured the members of the presidium that he would have regular meetings with them and stressed that he felt able to function as a unifying factor for the movement.

He added that the PASOK president characterized the current phase as "difficult" and, when asked whether Mr. Papandreou was worried by internal developments in the party, said that Mr. Papandreou was optimistic about the unity of PASOK.

He added that there was no discussion of the course of the government's work or of whether Mr. Papandreou would undertake any initiative ahead of the congress or whether he would be present.

[15] Council of Europe spring session winds up

President of the Council of Europe's Parliamentary Assembly, German deputy Leni Fischer, congratulated Parliament President Apostolos Kaklamanis for the excellent organization of the session by the Greek parliament and for the Greek representatives' active participation in the session and in the CoE in general.

She said that the members of the parliaments of 39 countries were leaving Thessaloniki with a sense of satisfaction at the success of the spring session.

Mr. Kaklamanis was the main speaker on the last day of the spring session yesterday, and met with Ms Fischer and with CoE Secretary-General Daniel Tarschys after finishing his speech.

Mr. Kaklamanis said that national parliaments can play an important role in the revision of the Maastricht Treaty as they are the genuine voice of popular will and therefore of the dreams and concerns of the European people.

The parliament president said matters which are, in his opinion, basic to progress and security in Europe are the promotion of democratic security, the broadening of the CoE to other republics of central and eastern Europe and the protection of human rights.

He stressed that Greece is among the strong supporters for the entry into the CoE of Romania, Albania and Russia, reiterating statements he had made during his visit to Moscow.

Answering a question put by members of the Parliamentary Assembly on the subject of the name of the Former Yugoslav republic of Macedonia (FYROM), Mr. Kaklamanis replied that the interim agreement was a step in the right direction, that there were good intentions and expressed the hope that a solution will be found which will not create any problems in the future.

[16] Greek positions in line with Europarliament, Kranidiotis says

PASOK Eurodeputy Yiannos Kranidiotis said Greece's position was close to the positions of the European Parliament which, being the sole directly democratically-elected agency, constituted the exclusive institution being in a position to safeguard the democratic legalization of the European Union's operation.

In the framework of yesterday's session of the European Parliament's institutional committee, Mr. Kranidiotis was invited, as a representative of the Greek foreign minister, to outline his assessments on the course of the inter-governmental conference's (IGC) work.

Mr. Kranidiotis also announced that Greece would submit a memorandum today on the role and duties of the European Parliament as part of a meeting of representatives of EU foreign ministers on the IGC.

He said Greece was interested in strengthening policies aimed at "deepening" the European Union and resolving basic problems faced by European citizens, such as incorporating the social protocol, the policy on employment and the policy on remote islands.

Mr. Kranidiotis said Greece would submit a memorandum soon on common foreign policy and civil security which would stress the need for the Union to support its policy in this sector on a series of principles such as a peaceful resolution of differences, the promotion of international law and respect for borders and solidarity.

In another development, the representatives of EU foreign ministers on the IGC will convene on May 30-31 to once again discuss the Community's institutional problems.

They will be discussing common foreign policy and security policy (in a new meeting on June 6-7 before the Council of Foreign Ministers convenes on June 10 in Luxembourg.

[17] Athens, Boston sign co-operation protocol

Athens and the US city of Boston signed a protocol of friendship and co-operation yesterday.

Athens Mayor Dimitris Avramopoulos said the protocol aimed at mutual efforts to develop the teaching of the Greek and English languages, with particular emphasis on the education of expatriate Greeks. He said the protocol also focused on co-operation on matters of municipal administration, culture, tourism and social issues.

Boston's Mayor Thomas Benino extended an invitation to Mr. Avramopoulos to visit the US city as a guest of honor during the March 25 Greek Independence Day celebrations held by the city's large Greek community.

[18] Panathinaikos maintains hold on national soccer championship

Panathinaikos won the Greek first division soccer championship for the second consecutive year after beating Edessaikos 3-1 at the Athens Olympic stadium last night in the last match of the season.

AEK Athens came second, Olympiakos Piraeus third and Iraklis Thessaloniki fourth.

Panathinaikos will play in the European Champions Cup next year, AEK Athens in the Cupwinners' Cup, while Olympiakos and Iraklis will play in the UEFA Cup.

Larissa, Panionios and Ethnikos were relegated to the second division.

Kavalla, Veria and Kastoria were promoted to the first division.

[19] Athens flounders in sudden rains

A thunderstorm wrought havoc in the greater Athens area yesterday morning, leaving approximately 50 basement homes and stores flooded and contributing to two serious traffic accidents, in which one woman was killed and two men injured.

The sudden change in the weather caused numerous minor vehicle crashes and unprecedented chaos on the streets in the city's center and the suburbs.

The fire department received dozens of calls for assistance to pump water out of basements and to free people trapped in elevators due to local power cuts.

Traffic police reported at least 50 traffic lights were knocked out by the heavy rain, exacerbating the already chaotic situation on the streets caused by poor drainage and low visibility.

The traffic fatality occurred when a truck overturned at the Acharnon and Athens-Lamia intersection crushing a taxi. The cab's driver was injured, while his passenger was killed. The name of the victim had not been released by press time.

At the same time, a rainstorm which began Tuesday afternoon and lasted the better part of Wednesday morning caused enormous damages to the village of Sykia in the northern Greek prefecture of Halkidiki.

More than 230 homes were flooded and are temporarily unsuitable for habitation, while 50 stores were forced to close. In addition, crops and cultivation in the area have also sustained great damage.

Dozens of beehives were destroyed, while the village's water supply has been cut off, with reports noting that the entire area looks more like a lake.

The rest of central and western Macedonia experienced an unseasonal cold snap along with heavy rains.

[20] Medium-scale naval exercise ends

The "Kataigis '96" military exercise, overseen by Fleet Chief Vice Admiral G. Bezerianos, was successfully completed yesterday.

The exercise was held in the central Aegean and the Dodecanese with the participation of roughly 60 vessels, naval and special land forces, as well as a large number of air force planes.

The units participating in the "Kategis '96" were trained in all forms of naval operations, while the last phase of the exercise was observed by the leadership of the armed forces.

In a separate development, a retroactive salary increase of 35 per cent to Greek soldiers in NATO forces in Bosnia will be awarded soon, a national defense ministry representative said yesterday. The salary increase was promised by National Defense Minister Gerassimos Arsenis during his visit to Bosnia.

[21] IBM bomb similar to last month's Kolonaki attack, police say

Police said yesterday that a large amount of dynamite and a slow-burning fuse were used in Tuesday night's bomb attack on the IBM building in Halandri.

Police sources said the explosive device was similar to the two used in the shopping center in Kolonaki last month.

Eyewitnesses said they saw two young men on a motorcycle leave a bag by the side of the building minutes before the explosion, which caused extensive damage to the IBM offices and to neighboring buildings.

Reliable sources said IBM representatives in Athens had recently asked the police to take measures to protect the building, and had suggested they put a guard on the empty building opposite the IBM offices.

[22] Greece to receive US aircraft

The first of six propeller-driven Orion P-3 naval support and reconnaissance aircraft donated from the US Navy's stock, is due to arrive in Greece tomorrow.

The aircraft will be incorporated into a squadron based at Elefsina airbase, the first step in replacing the aging "Albatross" fleet currently in service.

Four P-3s have already been delivered to Greece but have been dismantled at the Hellenic Aerospace Industry (EAB) for use as spare parts.

The crew of the aircraft, which are fitted with the latest high-tech equipment, will be made up of three Hellenic Air Force officers and eight naval officers.

[23] FAA official praises excellent co-operation with Greek authorities

The deputy governor of the US Federal Aviation Authority, Carhal Flynn, yesterday expressed the FAA's satisfaction over the excellent level of co-operation with Greece's Civil Aviation Service during a meeting with the administration yesterday.

Mr. Flynn congratulated the administration over moves to upgrade the security system at Hellenikon airport, recognized the importance of the political decision by Transport and Communications Minister Haris Kastanidis on independent security management for the specialized training sector and stressed the satisfaction of the US over the improvement of security standards in Greece.

[24] Labor ministry's bill aims to ease conditions for long-term unemployed

The long-term unemployed over 55 could be entitled to free health care if the new bill on unemployment tabled in Parliament is approved. To be eligible they will only need a minimum of 3,000 days employment stamps and to have been registered at the local OAED (Organization for the Employment of Human Resources) office for the last 12 months.

The amendment is expected to cost about 500 million drachmas a year.

Other amendments in the bill, tabled in Parliament on Tuesday by Labor and Social Security Minister Evangelos Yiannopoulos, are expected to give rise to heated discussion, however, especially the "employer subsidy for the non-salary costs of employment .

This would relieve employers from having to pay insurance contributions for young workers between 20 and 30 years of age if they are hired on an 18-month contract and if they are not sacked either six months before or 18 months after the programme start s.

These contributions will be subsidized chiefly by OAED and are expected to cost 3.8 billion drachmas.

This measure is very similar to proposals made in the past by the Federation of Greek Industries and is included in the European Union's White Paper.

Mr. Yiannopoulos also announced that bills dealing with the farmers pension fund, OGA, and social security would be tabled in the next 10 days.

He was not optimistic regarding pensions, due to be discussed by a government meeting on Friday. He said he hoped his position (gradually linking pensions to 20 days wages) would be adopted but there was "no indication of this until now."

[25] Commercial banks proceed to cut deposit interest rates

The Ionian Bank announced a half percentage point decrease in its interest rates on time deposits yesterday; other banks have already decreased interest rates unofficially without making an announcement.

The decreases are expected to be extended to savings bank interest rates in the next few weeks.

Banks have found themselves between two conflicting trends on interest rates.

The Bank of Greece maintains interest rates in the inter-bank market relatively high to contain inflationary pressures, while the finance ministry has decreased the interest rates of securities and will continue to decrease them in June provided it is able to do so.

Banks have made a relatively bigger decrease in lending interest rates than for deposit interest rates and currently they are pursuing lower deposit rates.

The Ionian Bank announced a decrease for one-year time deposit interest rates from 15 per cent to 14.50 per cent, for six-month and nine-month deposits to 14.25 per cent by 0.50 per cent and 0.75 per cent respectively and for monthly incomes deposits from 14.025 per cent to 13.60 per cent.

The decrease will take effect as of June 4.

[26] Cyprus-Greece trade on the rise

Trade between Greece and Cyprus is on an increasing trend and last year the volume of transactions between the two countries reached just over 153,45 million Cyprus Pounds (about 307 M. US dollars), Greek Embassy Commercial and Financial Attachi Chrysanthi Passadi told a press conference here yesterday.

Speaking at the Greek pavilion at the 21st Cyprus International State Fair, currently underway, Ms. Passadi said Cyprus is among the seven top markets of Greek products.

In 1995, she added, Greece ranked fifth in the list of exporters of goods to Cyprus, with 7.19 per cent of the island's imports.

Greece's market is of equal importance to Cyprus since 6.02 per cent of the island's exports went to Greece in 1995 and 7.57 per cent in 1994, she said.

The Greek attachi said 1995 was a decisive year for bilateral trade transactions since the decision of the two governments for joint financial co-operation started to take shape.

This year Greece participates in the Fair with 29 exhibitors.

[27] Fthiotida, Odessa look at possibilities for cultural, economic ties

The possibility of co-operation between the prefecture of Fthiotida in central Greece and the Ukraine city of Odessa in the economic and cultural sectors will be probed in an exchange of visits by representations from the two regions.

A representation from Odessa, which has submitted a request for Fthiotida to become its sister city, will visit the region in early July, while a representation from Fthiotida will visit Odessa in early autumn.

In a meeting on Tuesday, agencies in Fthiotida agreed that preconditions for co-operation in the economic, tourist and commercial sectors were positive, noting that it was necessary for similar co-operation to be widened.

Great interest has been shown in the tourist sector from regions in Odessa and Russia for holidays in Fthiotida. About 2,000 overnight stays have already taken place in regions of Kamena Vourla.

[28] Greece ratifies maritime co-operation agreement with China

Parliament's standing committee for production and commerce on Tuesday unanimously approved the text of a Greek-Chinese maritime co-operation agreement, which was signed in Beijing last October.

The agreement, based on the principle of free and fair competition, provides for bilateral implementation of non-discrimination in international marine transport.

Under the terms of the agreement, Athens and Beijing will reciprocally confer the status of most favored nation in matters related to merchant shipping.

The accord will also facilitate the movement and stayover of Greek and Chinese seamen as well as introduce reduced harbor and pilotage dues for environment-friendly tankers.

In the event of a shipwreck, a vessel running aground or similar accidents, Greece and China have agreed to provide every possible assistance.

[29] OKE releases proposals on tax exemptions

The Economic and Social Committee (OKE) publicized its views on tax exemptions yesterday during a press conference held by OKE President Ioannis Koukiadis.

The views ask for the full and immediate abolition of 51 categories of tax exemptions, the abolition of another 56 at a later date and the maintenance of 12 with conditions or restrictions. Out of the 588 tax exemptions examined by the committee from a total of 824, it recommended the expansion, readjustment or maintenance of the rest without conditions.

The recommendations have already been submitted to Finance Minister Alekos Papadopoulos for a final decision, which will be included in a draft bill. The minister said this is the first step of the necessary tax adjustments which will take one or two years.

OKE decided through a majority vote to suggest the taxing of state securities by 15 per cent, although the finance ministry has already expressed its objection to this proposal. Both unions and employers believe tax exemption for state securities must b e abolished.

No position was taken regarding the 'objective criteria' taxation regime, although the OKE's plenum said it was against its implementation.

In a statement issued yesterday on the occasion of the publication of OKE's recommendations, Political Spring called for the abolition of all tax exemptions except in cases where they must be reviewed for national or social welfare reasons.

OKE advises the government on a variety of matters; its decisions are not binding.

The announcement stressed that income derived from the cuts should not be channeled into the covering of the budget's "black hole", but should be used in social policies, particularly for those who have suffered under the constant austerity programs.

[30] Greek-Turkish telecoms link approved

A draft agreement between the Hellenic Telecommunications Organization (OTE) and the Turkish telecommunications company for the construction of an underground optical fiber network linking telecoms between Greece and Turkey has been ratified.

The NATO alliance is expected to have an 80 per cent share in expenditures for the building of this network.

The cost of the project is expected to amount to 200 million drachmas: OTE's share will total 40 million drachmas, since NATO will finance the biggest part of the project.

[31] Commission approves funding for Spata airport

The European Commission yesterday adopted a decision on funding of the new Greek airport at Spata.

The decision was announced last Thursday by Commission President Jacques Santer during his visit to Athens.

The Commission ruled the Greek government's contribution to the building of the airport "does not constitute a state subsidy". According to its announcement, the nature of the project makes it impossible to attract private investment without the support of the public sector and the "offered aid is the minimum necessary to safeguard the interests of private investors."

Construction costs for the airport are estimated at 2.15 billion ECU. The airport is included in the Inter-European Transport Networks and the EU will contribute 250 million ECU from the Cohesion Fund and a loan of one billion ECU from the European Investment Bank (EIB).

The remainder of the cost will be covered by the state and the German Hochtief consortium. The state's contribution will be raised chiefly through tax relief and VAT revenues, the "Spata Airport Tax" levied on all air travel to and from Greece and by standing as guarantor for the EIB loan.

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