A.N.A. Bulletin, 15/06/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 912), June 15, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Simitis sends world leaders a warning of the Turkish threat to regional peace and stability

Prime Minister Costas Simitis has sent a letter to world leaders underlining the dangers for peace and stability in the region posed by Turkish foreign policy.

The letter has been sent to the leaders of the European Union member-states, European Commission President Jacques Santer, European Parliament President Klaus Haensch, US President Bill Clinton, Russian President Boris Yeltsin, UN Secretary-General Boutros Boutros-Ghali and NATO Secretary-General Javier Solana.

In his letter, the Greek premier refers at length to a chronicle of Turkish disputes of Greek sovereign rights, beginning with the Imia crisis in late January up until the most recent instance involving the Greek island of Gavdos, off southern Crete.

Invoking Treaty of Lausanne provisions, the premier rejects one by one Turkey's arguments claiming the existence of so-called "grey areas" in the Aegean.

Mr. Simitis also rejects all notions of revising the Treaty of Lausanne, since "this treaty, from a legal viewpoint, constitutes the cornerstone of the territorial status quo between Turkey and neighboring countries in the eastern Mediterranean."

Mr. Simitis underlines in particular the need to maintain peace and stability in the region, saying "any expansion of territorial claims in the region may seriously upset the extremely delicate balance and stability which came about recently following enormous human and material sacrifices."

Against this background, Mr. Simitis urges the recipients of the letter to turn their attention to the problems being created and to examine whether they can take any action in the interests of peace and stability in the region.

[2] Arsenis: Athens expects NATO to act

National Defense Minister Gerassimos Arsenis said that Athens expected some kind of initiative from its NATO allies regarding increased Turkish provocativeness.

Mr. Arsenis said the main aims in his contacts with his NATO counterpart during a two-day alliance conference was that Greece's allies in NATO understand the problems created by the escalation in Turkish provocativeness, and that the Greek side hopes and expects the assumption of certain initiatives by them and the application of pressure on Turkey.

After his meetings with his Canadian, British, French and German counterparts, Mr. Arsenis met yesterday with US Defense Secretary William Perry and NATO Secretary-General Javier Solana, whom he briefed on the problems faced today by Greece, which the alliance is liable to face tomorrow because of Turkish intransigence, he said.

Speaking to reporters, Mr. Arsenis reserved comment on the results of his contacts, saying these will depend on whether there is "some change in the situation," and adding that he expected his counterparts to "adopt a stand and press for a change in Turkey's general behavior, at least in the framework of the alliance".

The defense ministers, he said, are now "fully informed on what exactly is happening in Greek-Turkish relations regarding defense, what Turkey's provocations are, and what problems the alliance itself will face in future if Ankara continues to exhibit the same behavior".

In response to a question regarding when he expected pressures to be brought upon Turkey, Mr. Arsenis replied that NATO must adopt important decisions in forthcoming months, both regarding its new military structure, as well as the financing of regional headquarters, stressing that the Greek stand towards these decisions, which will be adopted unanimously, "will be influenced by the reaction of the alliance towards Turkish provocations".

Regarding his meeting with US Defense Secretary William Perry, Mr. Arsenis said his US counterpart had referred to confidence-building measures, which he himself rejected, referring to the 1988 Papoulias-Yilmaz (then foreign ministers) memorandum, which remained inoperative.

Questioned whether the withdrawal of the Turkish statement regarding Gavdos would be an adequate condition for a start to a Greek-Turkish dialogue, the defense minister said the contacts which foreign ministers Pangalos and Gonensay had begun were interrupted for "many reasons", and not only because of the Gavdos issue. He added that the 'Dynamic Mix' NATO exercise would go ahead, "given that the Turkish position had not been accepted".

"What annoyed Greece was the inclusion in a NATO document of a unilateral Turkish statement which we consider outrageous," he added.

In a related development, NATO Secretary-General Javier Solana reiterated his position on confidence-building measures between Greece and Turkey at a press conference held at the end of the alliance's ministerial session in Brussels yesterday.

Mr. Solana said he met with the Greek and Turkish defense ministers, adding that "the temperature should fall" in the Aegean and that the two sides should go ahead with confidence-building measures.

Speaking to Greek reporters, Mr. Solana implied that steps were being taken to defuse the Greek-Turkish crisis.

[3] EU counterparts puzzled, bemused by Turkish actions, Pangalos says

Foreign Minister Theodoros Pangalos also said he had had the opportunity yesterday to brief his counterparts on Greek-Turkish relations on the sidelines of a ministerial review of the Dayton peace accord in Florence, Italy.

Mr. Pangalos said that the impression created by Turkey's latest provocation among those with whom he spoke was one of "hilarity and puzzlement."

Commenting on the speech of Turkey's representative at the meeting, Mr. Pangalos said he had listened to "rhapsodies about human rights, guaranteed democratic procedures, respect for refugees, a fiery speech against partitioning ... and of course all this was said in complete forgetfulness of the Cyprus problem." Mr. Pangalos had talks yesterday with US acting Assistant Secretary of State John Kornblum, but declined to comment on their content. He said, however, that Greece was not prepared to accept the "policy of equal distances as expressed by the United States, since it does not correspond to reality, for there is an aggressor (Turkey) and a defender (Greece)."

"This stance is not even useful, since it does not help resolve the problems, but simply exacerbates them and encourages Turkish expansionist designs," Mr. Pangalos said.

[4] Evert asks president to look into political party leaders meeting

In a related development, main opposition New Democracy party leader Miltiades Evert yesterday asked President of the Republic Kostis Stephanopoulos to begin exploratory contacts with the government and opposition parties to ascertain whether it is possible to hold a meeting of political party leaders in order to formulate a common policy to confront Turkish provocativeness.

Mr. Evert, who made the proposal during a 20-minute meeting with Mr. Stephanopoulos, stressed that the council of political leaders should examine the entire spectrum of Greek-Turkish relations.

In later statements, government spokesman Dimitris Reppas did not completely rule out a meeting of the country's political leaders, but launched a stinging attack against Mr. Evert, saying "now he is asking for a leaders' meeting despite the fact that he refused to visit the prime minister when invited."

Asked whether Mr. Simitis would meet with Mr. Stephanopoulos, the government spokesman replied that no meeting was scheduled, but "at some point there will be such a meeting."

Mr. Reppas once again described Turkey as an "international troublemaker," adding that Ankara must clarify its position on the Gavdos issue "because up to now we have had three different stances." He also advised Turkey not to allow domestic fluidity and instability to influence its foreign policy.

Replying to Mr. Reppas' statements, the main opposition New Democracy party accused the government of attempting to create an artificial crisis.

The New Democracy announcement stressed that the drawing up of a single national foreign and defense policy is a priority, and added that it will contribute to this with all its power. ND noted that party leader Miltiades Evert has never refused to discuss national issues, while Prime Minister Costas Simitis "has diligently and systematically avoided such a dialogue until now".

ND spoke of government embarrassment caused by "great mistakes and unfortunate handlings which have led to the reinforcement of Turkish expansionism and the appearance of the unacceptable provocations of the 'grey zones'."

Speaking on the issue, Political Spring party leader Antonis Samaras said that while the country is being dragged into direct discussions with Turkey, which is continuing its expansionist policy, government members are concerned only with the PASOK party congress.

Referring to Greek-Turkish relations, Coalition of the Left and Progress party leader Nikos Constantopoulos stressed that the "constant Turkish threat must be dealt with as a provocation against international law", and criticized the "hypocritical stance" of "the powers of the new world order".

Mr. Constantopoulos proposed the immediate calling of a meeting between party leaders in order for there "to be a responsible briefing and exchange of views which will ensure an elementary framework of common strategy."

[5] Premier's letter to world leaders

The text of the premier's letter is as follows:

"I should like to make known my thoughts concerning the following developments which have taken place recently and constitute a cause of deep concern for my country. "During the planning of the NATO exercise 'Dynamic Mix', the representative of the Turkish general staff submitted a statement (appendix 1), according to which Turkey opposed the inclusion in the exercise of the Greek island of Gavdos, which is located southwest of Crete, 'due to the disputed situation regarding sovereignty.'

"This outrageous Turkish statement was further accompanied by the recent request to the NATO military authorities 'not to include in the planning and operations of the exercise other islands and/or rocks around Crete' due to the dispute concerning the Greek sovereignty of same. In the days that followed, these claims were also adopted by high-ranking Turkish government officials as well as by Prime Minister Mesut Yilmaz himself.

"It is, of course, generally known that Turkey has on a permanent basis been disputing a number of sea and air zones in the Aegean as well as Greece's sovereignty and control of these zones. This year, however, for the first time Ankara began to dispute Greek land territory (island) in the Aegean and consequently the existing borders between the two countries. After the Imia crisis, which brought the two countries to the brink of war, Turkey under Ms (Tansu) Ciller expanded its claims to include 3,000 islands, islets or rocks, reaching such a point of provocation to assert that any attempt by Greece 'to dispute Turkish sovereignty of these islands' would be a casus belli.

"The raising of new claims continued during the premiership of Mr. Yilmaz who, surpassing even Ms Ciller, disputed the Treaty of Lausanne itself.

"The aforementioned treaty, from a legal viewpoint, constitutes the cornerstone of the territorial status quo between Turkey and neighboring countries in the eastern Mediterranean. Although 70 (seventy) years have passed since the treaty came into effect, during which time it has been implemented without interruption or deviation, Turkey puts forward the claim that there are certain 'gaps' in the treaty, involving so-called 'grey areas' of sovereignty in the Aegean. It should be noted that the Treaty of Lausanne expressly stipulates that Turkish sovereignty in the Aegean is restricted to those islands which are located within three miles of the Turkish coast, as well as Imvros, Tenedos and the Lagouses complex (articles 6 and 12). In the same treaty, Turkey explicitly waives all its rights and titles to all territory and islands beyond this three-mile limit, with the exception of those specifically referred to in the treaty.

"The most recent incident, namely Ankara's claim relating to Gavdos which, it should be stressed, is an inhabited Greek island, as well as to other island groups around Crete, completes, up to now, the novel Turkish policy of comprehensively disputing the territorial status quo in the Aegean. This time moreover, Turkey is disputing groups of islands which lie hundreds of miles from the Turkish coast, and whose legal designation as Greek territory was determined 10 years prior to the Treaty of Lausanne, by virtue of the 1913 London Peace Treaty (article 4).

"It emerges from this brief description that Turkey is openly disputing all the legal provisions pertaining to Greece's titles to the Aegean islands and to the respective international borders. This stance comes as a great surprise to both Greece and the international community, not only because it constitutes a blatant violation of the general and specific rules of international law, but also because it creates a further source of serious threat for stability in the region, a region which is particularly volatile and which, in the course of the last six years, has been the theater for intense territorial rearrangement. Any expansion of territorial claims in the region in question may seriously upset the extremely delicate balance and stability, which came about recently, following enormous human and material sacrifices.

"In view of the above, the recent developments most certainly warrant your attention as well as any action which you may deem to be expedient in the interests of peace and stability in the region."

[6] Ankara wrong on Gavdos, Turkish daily says

According to the mass circulation Turkish daily 'Sabah', Ankara is wrong on the issue of Gavdos, with an editorial writer stating that Athens' concerns over the matter are "justified."

The Gavdos issue is a "characteristic example of our carelessness," Sabah editorial writer Mehmet Ali Birant notes, adding that "suddenly we realize that it (Gavdos) is a Greek island occupied by 300 Greeks and a mayor."

The commentator also wrote that the incident caused an increased amount of anxiety in Athens.

"Thus, without reason, the lack of coordination and disharmony on this issue between us has increased Athens' suspicions," he added.

[7] German human rights group condemns Ankara's 'playing with fire' in the Aegean

A German human rights organization said yesterday that it was concerned over recent Turkish provocations and that Ankara was 'playing with fire' in doubting internationally recognized Greek-Turkish borders in the Aegean.

President of the German humanitarian organization "Society for threatened peoples", one of the most active in Germany in supporting minorities, Tilman Zuelch sent an "urgent request" to German Chancellor Helmut Kohl for him to condemn Turkey's territorial claims.

"Turkish provocations could lead Europe into a new war," the society's press release said. "It is a danger signal when Turkish Foreign Minister Emre Gonensay reaches the point of even doubting as a grey zone the status of Gavdos, which is 400 kilometers away from Turkish coasts and is southwest of Crete."

Mr. Zuelch, who has visited Cyprus on many occasions and has organized mobilizations for the missing Greek-Cypriots there, stressed in his memorandum to Chancellor Kohl that "the Turkish invasion of Cyprus and the uprooting of the Greeks, Maronites and Armenians from the northern part of the island, proved from 1974 that Turkey will not hesitate to change international borders by force..."

Mr. Zuelch also criticized the policy of equal distances currently being followed. "The German policy of neutrality is incomprehensible and dangerous," he said in the memorandum.

[8] Gov't proceeding with upgrading military, Kouris tells Parliament

National Defense Under-secretary Nikos Kouris, replying to a question in Parliament made by New Democracy deputy Alekos Papadongonas regarding the armaments programme for the armed forces, said yesterday that a new timetable is being drawn up for frigates and other units to be obtained by the navy.

Mr. Kouris said the government is making efforts to deal with Turkish provocations with all means available, and with the modernization of the armed forces' equipment. He added that large amounts of the state budget are being provided for this reason.

Mr. Papadongonas said his party will examine the possibility of no longer participating in discussions concerning the armed forces if the government does not solve the issue of salaries for the armed forces.

Mr. Kouris announced that the government is to table an amendment in Parliament through which officers killed in action will be posthumously promoted by one rank.

The national defense under-secretary was replying to a statement made by Political Spring party deputy Fotini Stephanopoulou, who criticized the government for the "meager" pensions being received by the widows of the three navy officers killed in a helicopter crash during the Imia incident.

Mr. Kouris said the three widows were awarded the highest pensions allowed under the law.

[9] FYROM has no intention of changing name, Gligorov admits, but talks with Greece at the UN will continue

A change in the name of the country will create a great psychological and moral problem among the people of the Former Yugoslav Republic of Macedonia (FYROM), and no politician, either in the government or opposition, can accept a change in the name, FYROM President Kiro Gligorov told the weekly magazine 'Vreme', out today.

"We showed a spirit of co-operation and readiness to understand the Greek side because there is always part of the truth on the other side, and we are trying to find a solution that does not dispute the identity of our people, and the name of the state," says Mr. Gligorov, stressing further that any such change would open a Pandora's box, and bring to the surface old disagreements with neighboring countries.

He goes on to say that he agrees with the continuation of talks with Greece, because through them, FYROM can prove that its inhabitants are a different people by setting out historical and other arguments.

"Greece was worried about the appearance of territorial claims against its northern part if FYROM became an independent state," he adds, admitting indirectly that such a danger was real due to the disposition of certain citizens in his country who have nationalist tendencies.

"However, the parties with nationalist disposition lost the election, were not able to form a government and were thus not able to follow this policy," he says.

Reaction Commenting on the Gligorov interview, Political Spring party spokesman Notis Martakis wondered why the government was not facing a similar psychological problem as the one invoked by Mr. Gligorov for his people, "with the surrendering of a right that has belonged to Greeks for 2,500 years".

[10] New round set for June 24

Direct talks under the sponsorship of the UN secretary-general's representative Cyrus Vance between Greece and the Former Yugoslav Republic of Macedonia (FYROM) on the issue of the name, based on article five of the interim agreement, will resume on June 24, according to authoritative sources.

The circles predict that the discussion will constitute a continuation of what was said at last Tuesday's meeting to clarify whether ground existed for specific methodizations which could possibly lead to examining possible solutions.

Pointing out that a specific formula must be found before the discussion on names goes ahead, the sources expressed the view that the new round would certainly give a clearer picture of how matters were developing.

However, they stressed that drastic developments were not expected during the new talks which could last many days, but were not expected to be resumed before August due to Mr. Vance's absence from New York in July.

The same diplomatic sources observed that a possible lack of progress in talks in New York would have a direct negative effect on relations between Greece and FYROM and, more specifically, the implementation of the interim agreement, since the complete application of practical measures anticipated by the agreement largely depended on the climate prevailing at the New York talks on the name issue.

[11] UN official due in Athens next week

The UN Human Rights Committee's special rapporteur for issues of religious intolerance, Tunisian ambassador Abdelfatah Amor, will visit Greece from June 18-25 at the invitation of Athens.

Mr. Amor, who will be accompanied by an official of the UN's Center for Human Rights, will visit Athens and Alexandroupolis and meet with religious authorities, representatives of religious minorities and of non-governmental organizations as well as private individuals.

The visit is within the framework of Mr. Amor's mandate to promote and protect the freedom of religious worship in accordance with implementation of decision 1996/23 of the UN's Human Rights Committee.

[12] Crete can play important role in Mediterranean, Simitis stresses

Prime Minister Costas Simitis yesterday referred to the role of Crete in promoting Greece's presence in the eastern Mediterranean, and the integrated programme the government has drawn up for the island.

"We want to promote the potential of Crete as a junction in the area, to be developed into an economic, educational and cultural metropolitan center," he said during a speech at Iraklion Town Hall.

"We must promote and strengthen our country's presence to the south and southeast. Along with Thrace, Crete can play an equally important role, this is why I am making my second visit here," he added. Its purpose was "to see how we can achieve this target and promote it with infrastructure," he said.

Referring to the overconcentration of public services in Athens, he spoke of the responsibility of local government in managing its finances correctly, to plan its work correctly, and work with a long term strategy.

The prime minister is accompanied by a team of ministers and undersecretaries who discussed problems with local officials.

Transport and Communications Minister Haris Kastanidis referred to plans to turn Crete into a sophisticated telecommunications center.

Mr. Simitis concluded his presence in Iraklion with a visit to the Technology and Research Institute (ITE), in which, among other things, pioneering work in robotics and laser technology is being carried out.

"We must plan the adjustment to the future, create the mechanisms, institutions, functions, and mentalities, for a fast and effective adjustment and progress," he said afterwards.

[13] Kaklamanis-Andreas Papandreou meeting today

Parliament President Apostolos Kaklamanis is expected to visit PASOK President Andreas Papandreou at his home in Ekali at noon today.

[14] Search for justice in Bosnia should involve both sides, Pangalos says

Foreign Minister Theodoros Pangalos yesterday expressed his serious reservations about the criminal charges brought against Bosnian Serb leaders Radovan Karadzic and General Ratko Mladic for alleged war crimes.

Mr. Pangalos is in Florence to attend a two-day ministerial meeting to review implementation of the Dayton peace accord for Bosnia-Herzegovina.

"An attempt is being made to reduce the problem to that of the persons of Messrs. Karadzic and Mladic," Mr. Pangalos said.

"We believe that wherever crimes are ascertained, they must be punished. But people should not be condemned before due process has been completed," he said.

"We also believe that if persons are to be implicated and referred to trial for their moral and political responsibility, this should be done equally for all sides. As you know, crimes have been committed by all sides. The problem is that those guilty on all sides should be punished, and in this respect, the level of responsibility must be sought on all sides. It would be illogical for Mr. Karadzic to be condemned without identifying the respective leader who may have tolerated or approved the actions in question.

"We must stop presenting the one side as demons if we want to have peace and equal justice," Mr. Pangalos said.

Both Mladic and Karadzic have so far refused to step down from their posts to face charges before the UN war crimes tribunal in The Hague as required by the Dayton peace deal.

The Greek foreign minister also noted "a strange event observed today (yesterday), namely, that all the speakers came out against postponing the elections in Bosnia. But one of the main issues concerning the elections is how and if the refugees will vote... There is, of course, the French proposal with which we are in agreement, concerning the re-holding of elections in three years."

Mr. Pangalos stressed that Greece had suffered economically from the conflict in the former Yugoslavia. Despite this, he added, and owing to the fact that Greece is the only EU country with close contacts in the region, "Athens will play an important role in the reconstruction of (former) Yugoslavia, which must, however, be correlated with the general development of the Balkan region."

Mr. Pangalos also announced that the meeting of Balkan foreign ministers within the framework of the enlarged Balkan conference would take place on July 6-7 in Sofia.

[15] Simitis, Tsohatzopoulos to attend European Socialists summit

Prime Minister Costas Simitis and Interior Minister Akis Tsohatzopoulos are among the prominent figures that will participate in the European Socialist Party (ESP) summit in Florence on June 20, ahead of the European Union summit.

The socialist summit will be presided over by Massimo D'Alema of the Italian Democratic Party, due to the illness of ESP president Rudolf Scharping, and will also be attended by Italian Prime Minister Romano Prodi.

[16] Athens airport anti-terrorist squad receives 'Safe Skies' award

Athens Airport's anti-terrorist squad has been awarded the 1995 Conway Safe Skies Award, it was announced here yesterday.

The annual award, which recognizes extraordinary efforts to protect air travelers from acts of terrorism, was presented to the airport's police for their quick action in disarming a knife-wielding hijacker on an Olympic Airlines Boeing 747 last November.

World Development Council Chairman McKinley Conway, founder of the annual commendation, presented the award - at the Council's Global Super Projects Conference and Exhibition in San Francisco - to Police Brigadier General Ioannis Ergazakis, who led the successful assault.

"The Athens Airport Police Anti-Terrorist Squad used courage and subterfuge to defuse a dangerous situation without any serious injuries or loss of life," said Mr. Conway.

"This unit's actions are an important victory in the fight against air terrorism. The Athens police deserve the highest praise for disarming the hijacker without incident - and without delay," Mr. Conway added.

The Olympic Airways flight was hijacked by an Ethiopian national shortly before it landed in Athens. Members of the squad, under the direction of Brig. Gen. Ergazakis, posed as reporters to board the plane and quickly overpowered the hijacker. There were no injuries to any of the rescuers or the 114 people on board.

A $10,000 award was established in 1989 and is also given in addition to the award. The 1994 award was presented to France's Gendarmerie Nationale Intervention Unit for foiling the hijacking of Air France flight 8969 by four Algerian terrorists in December 1994 at the Marseille airport.

The recipient of the Conway Safe Skies Award is selected by a distinguished international panel representing broad corporate, scientific, aviation, civic and global travel interests.

The award is endorsed by the World Development Council and presented annually at its Global Super Projects Conference and Exhibition, an international forum that brings together implementors and sponsors of various large-scale endeavors that have an impact on the world's economy and environment.

[17] Former US president Bush begins Greek vacation

Former US president George Bush, along with his family, began their vacation in the Ionian Sea yesterday morning after landing in Corfu late Thursday night.

Accompanying the Bush family is retired US joint chiefs of staff chairman General Colin Powell.

The large group was met at the airport on behalf of the Latsis business group, who invited the ex-president and his entourage to Greece, by Marianna Latsi.

The Bush party in turn boarded the luxury vessel "Alexandros" to begin an Ionian cruise, headed initially toward the Albanian coastline.

Earlier this week, Mr. Bush, his family and Gen. Powell were on a chartered SwissAir Boeing 757 plane that made an emergency landing at the Bangor, Maine Airport late Wednesday evening because of engine trouble, a Reuter dispatch reported yesterday.

The plane, which had taken off from Portland, Maine, was headed for Zurich, according to US Federal Aviation Administration officials.

[18] Greece, Tunisia confirm good bilateral relations

Alternate Foreign Minister George Romeos and Tunisian Overseas Tra-de Minister Slaheddine Ben Mbarek confirmed the friendly relations between their countries during their talks yesterday.

The ministers exchanged views on economic co-operation between their countries and the continuation of the Euro-Mediterranean Conference in Barcelona.

On the question of the MEDA programme, Mr. Romeos explained the reasons why Greece could not consent to the funding of Turkey by whatever source.

Meanwhile, prospects of improving economic relations between Greece and Tunisia are extremely positive since the income level of Tunisian consumers is continuously rising and the liberalization of its economy is being promoted at a fast rate.

The signing of an agreement between Tunisia and the European Union in July 1995 abolishing all restrictions in trade relations between the two sides is also a positive step for the further development of trade relations between the two peoples.

[19] Spata Airport group receives loan from EIB, commercial banks

A loan agreement for the construction of the new Athens airport at Spata was signed yesterday by the 'New Airport Company' and representatives of the European Investment Bank and a group of commercial banks.

The ceremony was held at the Zappeion Mansion in the presence of National Economy Minister Yiannos Papantoniou, Finance Minister Alekos Papadopoulos, Environment, Town Planning and Public Works Minister Costas Laliotis, European Investment Bank President Brian Owen, Vice-President Panayiotis Yennimatas, the President of the New Airport Company Mr. A. Tzavelas, representatives of the Hochtief company and others.

The European Investment Bank has granted 1,057 million ECU, with the Greek state as guarantor, and 600 million marks from the commercial bank group, with the German state as guarantor.

The new airport will be operational in 4.5 years.

[20] Contract for Platanovrysi hydroelectric project signed

The Public Power Corporation (DEH) and the German Bayerische Vereinsbank A.G. signed a contract in Munich yesterday for the funding of the procurement and installation of electrical and mechanical equipment destined for the hydroelectric project at Platanovrysi on the Nestos River.

The contract is for 15,305,124 ECU and covers 85 per cent of the exchange price to be paid to the Siemens AG firm which, together with the Russian LMZ firm and the Siemens S.A. company, has undertaken to procure and install the project's electrical and mechanical equipment after international tendering.

The Platanovrysi project includes two units of a capacity of 50 MW each. The first will become commercially operative in 32 months' time and the second in 34.

[21] Papantoniou, Papademos review developments in interest rates

National Economy Minister Yiannos Papantoniou and Bank of Greece governor Lucas Papademos yesterday discussed the effects of the recently announced measures for restricting liquidity on the course of interest rates.

The restriction of liquidity has already led the Commercial Bank to increase its lending rate by 0.25 per cent, its consumer loan rate by 1 per cent, and its credit card rate by 0.5 per cent. The National Bank is soon expected to follow suit. Both banks are following in Alpha Credit Bank's foosteps, but are not expected to reduce their deposit rates any time soon.

Bucking the trend, Egnatia Bank is expected to raise deposit rates on Monday, June 17.

End of English language section.