A.N.A. Bulletin, 05/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 929), July 5, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Papantoniou says inflation's decrease key to Gov't economic policy

National Economy Minister Yiannos Papantoniou yesterday announced a freeze in public utilities' prices, following a meeting with Prime Minister Costas Simitis.

Mr. Papantoniou reiterated that the central axis of the government's economic policy will be a reduction in inflation. He pledged no further increases in the overall tax burden, and made it clear that the 1997 budget, which he described as "difficult", will be austere regarding public expenses.

He described the general economic climate as positive, expressing optimism that targets would be attained, and predicted a fall in interest rates. Mr. Papantoniou said a draft bill concerning cutbacks in public expenses would be tabled in Parliament in forthcoming weeks.

He added that the course of large projects and of the Community Support Framework is being accelerated.

[2] Chamber of Commerce

The government must adopt all additional measures necessary to cover the gaps created as soon as possible, at the same time leading the economy out of a pre-election environment, the president of the Athens Chamber of Commerce and Industry (EBEA), Yiannis Papathanasiou, said yesterday, during the presentation of the chamber's semi-annual report on the course of the Greek economy.

"Mr. Simitis' election (as party leader) is, indeed, a clear solution, but clear decisions are also needed. The government has to immediately adopt all necessary measures, disregarding any political cost, and we must hope that the 'incision' promised by

Mr. Simitis will acquire, here and now, a practical content," he said.

"In order that the 1997 budget is in accordance with the Convergence Programme, additional savings of 600-700 billion drachmas are needed. This can only come about through restrictions in government expenses and privatizations," he added.

The EBEA report says inflation will only fall below 8 per cent by the end of the year with difficulty, treasury bill rates are not expected to fall below 13 per cent, and public debt is likely to continue its upward course and exceed the 123.8 per cent of GDP level in 1995.

By contrast, it makes the optimistic prediction that the GDP growth rate will be 2.3 per cent, compared to the 1.4 per cent EU average, provided it is not undermined by a predicted slowdown in European economic activity, delays in the implementation of the Delors II Structural Aid Package, and any internal developments.

The EBEA report states that the Achilles' heel of the government's economic policy is in the area of privatizations and fiscal reform of public enterprises. It cites as typical examples the inability of Olympic Airways to follow its financial rehabilitation programme with consistency, the continuing overdebtedness of the Hellenic Railways Organization (OSE), continuation of prohibitions regarding power production by private enterprises, the revocation of casino licenses etc.

The partial floatation of Hellenic Telecommunications Organization (OTE) shares, the report concludes, is the government's greatest success, but it must be extended.

[3] Simitis meets top PASOK cadres in light of today's crucial central committee session

Prime Minister Costas Simitis yesterday had successive meetings with prominent party members in view of today's central committee session, which will elect a secretary and the ruling party's executive bureau.

Yesterday morning the premier met with present PASOK Secretary Costas Skandalidis, who according to sources, will be the sole candidate for the post of secretary.

Later, Mr. Simitis met with Education Minister George Papandreou, who said he would be a candidate for the executive bureau, and that the session would be held in a spirit of unity.

Finally, the prime minister met with Parliament President Apostolos Kaklamanis, who did not make any statements.

[4] Gov't spokesman disputes criticism of 'organized factions' in PASOK

There are no organized factions or groups in ruling party PASOK, government spokesman Dimitris Reppas said yesterday, in an indirect reference to recent comments from leading PASOK cadres that it was time to "dissolve groups in PASOK".

"There are only trends, opinions and tendencies, which also exist in society and are also expressed within the party," he said.

"Hypothetical statements of some people do not have the same weight as the deeds done by these people," he added.

[5] ASE board approves bulletin on bank's proposed share capital increase

The Athens Stock Exchange's board of directors has approved an information bulletin detailing an increase in the Bank of Piraeus' share capital.

The Bank of Piraeus plans to increase its capital by issuing 3.6 million new shares at a face value of 1,200 drachmas each, and with a sale price of 2,500 drachmas each.

The new shares will be issued with a right of first preference for current shareholders, and with a ratio of nine new shares for every 10 old ones.

[6] Bank lowers interest rates

The Agricultural Bank of Greece (ATE) announced yesterday that as of Monday July 8, 1996, the regular savings bank basic interest rate will decrease by 0.25 per cent from 12.50 per cent to 12.25 per cent.

The interest rates of the other forms of deposits (DIMITRA/Time) will decrease by half a percentage point (0.50 per cent) and will range at levels between 13.25 per cent and 14.50 per cent.

[7] Greece wants full implementation of '88 Greek-Turkish memorandum

Athens yesterday reiterated that it wanted implementation of a 1 988 memorandum on de-escalating tension between Greece and Turkey, signed by the then foreign ministers of the two countries.

Foreign ministry spokesman Costas Bikas, commenting on a letter from US President Bill Clinton to Prime Minister Costas Simitis earlier this week, said Greece wanted to see the full text of the memorandum applied.

He added, however, the fact the United States would like to see a part of the memorandum implemented was a "positive" development.

In his letter, Mr. Clinton called the 1988 memorandum "a good start toward reducing the rise of inadvertent confrontation."

In talks on Wednesday with visiting US Under-secretary of State Peter Tarnoff and Assistant Defense Secretary Jan Lodal, both Foreign Minister Theodoros Pangalos and National Defense Minister Gerassimos Arsenis came out in favor of the bilateral implementation of part of the agreement calling for a suspension of military exercises in the Aegean over the summer months.

[8] Hotline

Greece agrees in principle with the idea of establishing a "hotline" between Athens and Ankara, within the context of NATO, government spokesman Dimitris Reppas said yesterday, but would like the proposal to be further processed and made more specific so it can be proved to be "beneficial".

There is no such agreement at present, he added, stressing that Turkey must first show good faith and, politically, a change of behavior, so an initiative for rapprochement could be taken, he added.

"The problems are not solved on a technical level or with 'hotlines' but on a political level," Mr. Reppas concluded.

Mr. Reppas said the US president's letter was "approaching" and "in line" with recent Greek foreign policy elements.

The "acceptance" of Greek positions by the United States "is naturally satisfying" the Greek government, he said, adding the change in the US position was obvious. He also said that up until 1985, Washington constantly pressed Greece to open a dialogue with Turkey on all issues, while now, the United States accepts that improvement of Greek-Turkish relations can occur through rules and principles, such as referring problems to the International Court of Justice at The Hague.

Asked whether there was a chance of any new memorandum being signed between Greece and Turkey, Mr. Reppas replied that the government was ready to proceed to an agreement with Ankara which would include the Vouliagmeni agreement of 1988 as well as elements of Greek foreign policy, "provided all will accept such a text".

Referring to Mr. Simitis' comment in his response to Mr. Clinton's letter that "...our responsible attitude must not lead to the interpretation that restraint is the only possible response of Greece to persistent and flagrant provocations regarding Greek sovereignty", Mr. Reppas said: Greece could not "continually and forever" tolerate these provocations. It is not at all strange if the continued provocativeness of Turkey "whether by default or by its own design" leads to tension or incident, he added.

[9] Turkey accepts NATO initiative on CBMs

Ankara yesterday announced that it had accepted a NATO initiative for the implementation of confidence-building measures (CBMs) in the Aegean and asked NATO Secretary-General Javier Solana to continue his efforts.

Turkish Foreign Minister Tansu Ciller confirmed that the measures proposed by Mr. Solana are now in force and also that there would be a bilateral hold-off on air and naval exercises in the Aegean between July 1 and September 1.

She said there would be an announcement on the issue by the NATO Secretary-General in the next few days.

'Our government believes that these sorts of measures create the appropriate climate for resolving the problems with Greece," Ms Ciller said, adding that Turkey wanted Mr. Solana to continue his efforts, which she described as "constructive and effective," and "expected new proposals for confidence-building in the Aegean."

"As I mentioned to the American Assistant Secretary of State Mr. Tarnoff, Turkey does not intend to escalate its relations with Greece, but wants the resolution of problems in a manner securing bilateral interests," Ms Ciller said.

[10] Reppas asks Kornblum to support statements on Cyprus missing

Government spokesman Dimitris Reppas yesterday requested that US Assistant Secretary of State for European and Canadian Affairs John Kornblum hand over to the Greek government any information he has on the fate of the 1,619 missing persons in Cyprus.

Mr. Reppas' request came after Mr. Kornblum said that the United Nations and others have long believed that the 1,619, missing since the 1974 Turkish invasion, were dead.

"If Mr. Kornblum has no such information, then any assessment is a rather arbitrary conclusion," Mr. Reppas said. In any case, he added, "we should show greater sensitivity when we are talking about human lives".

[11] Europarliament to Turkey: End of aggressive acts vis-a-vis Union

The Europarliament's plenum yesterday approved a resolution on results of the recent EU summit meeting in Florence, noting that "a mandatory condition for any strengthening of ties with Turkey must be respect of human rights, as well as abandonment of aggressive behavior against any European Union member-state."

The wording mentioning EU-Turkey relations was added to a draft of the resolution after an amendment was adopted by the European People's Party (EPP), and following a proposal by main opposition New Democracy party's Eurodeputies. Practically all the political groupings in the Europarliament voted in favor of the amendment.

However, the European Parliament in the same resolution also states that it considers "unacceptable... the freezing of the MEDA regulation, a programme which would create a region of peace and stability in the Mediterranean," the resolution read.

[12] NATO 'Partnership for Peace' exercise gets going in Bulgaria

Land exercises between NATO allies, Greece, Turkey and the US, and four NATO "Partnership for Peace" countries got under way in Bulgaria yesterday, the Bulgarian defense ministry said.

Called "Cooperative Determination '96", the joint exercises will last until July 12 and will take place in the city of Belene, on the Danube. Bulgaria, Moldova, Romania and Malta are participating in the exercises.

The Turkish participation is comprised of 13 officers and 35 troops.

The aim of the exercises is the training of land forces in humanitarian and peacekeeping missions and natural disasters.

[13] Pangalos to attend Balkan foreign ministers' meeting

Foreign Minister Theodoros Pangalos will fly to Sofia tomorrow to attend the meeting of Balkan foreign ministers over the weekend in the Bulgarian capital, foreign ministry spokesman Costas Bikas announced yesterday.

Reiterating Greece's great interest in the co-operation between Balkan states, Mr. Bikas expressed his conviction that the meeting will yield positive results.

[14] French foreign under-secretary due in Athens next week

French Foreign Under-secretary Michel Barnier is expected in Athens on Monday for a two-day working visit, it was announced yesterday.

Mr. Barnier will be received by Prime Minister Costas Simitis and have talks with Alternate Foreign Minister George Romeos, who is responsible for European affairs.

According to reports, talks between Messrs. Barnier and Romeos will focus on the EU Intergovernmental Conference, conclusions of the recent Florence summit, the Union's Mediterranean policy as well as the situation in the Balkans, Greek-Turkish relations and the Cyprus issue.

[15] OSCE Parliamentary session begins today in Stockholm

The fifth annual Parliamentary session of the Organization for Security and Co-operation in Europe (OSCE) will begin in Stockholm today in order to examine, among other issues, the political situation in Turkey, preparation for elections in Bosnia and recent elections in Albania.

The Greek Parliamentary delegation is composed of deputies Theodoros Stathis, Loukas Apostolidis, Ioannis Stathopoulos, Mihalis Galenianos, Anastasios Nikopoulos and Orestis Kolozov.

[16] Mitsotakis congratulates Yeltsin

Honorary New Democracy president and former premier Constantine Mitsotakis yesterday sent Russian President Boris Yeltsin a telegram of congratulations.

Mr. Mitsotakis called Mr. Yeltsin's re-election "a political event of great international significance".

In statements on arriving in Thessaloniki, meanwhile, Mr. Mitsotakis said the US initiative was a positive development and the Greek government's handling "appropriate".

[17] Commission warns Athens to equalize residency permit fees

The European Commission has decided to initiate pre-judicial proceedings against Greece, demanding that residence permit fees for non-EU nationals who are family members of an EU member-state's citizen, should fall in line with those paid by the latter.

A Commission opinion stated that the practice followed by Greece is contrary to the spirit of Directive 68/360, regarding the elimination of restrictions on the movement and residence within the 15-member Community of EU member-states' workers and their families.

[18] Pol.An, KKE both hold rallies in Thessaloniki yesterday

Speaking at a press conference in Thessaloniki yesterday, Political Spring party central council secretary Akis Gerontopoulos said the party was ready for possible early elections.

Mr. Gerontopoulos said "we are going through a period of political fluidity with major issues remaining open," saying PASOK was unable to provide solutions, main opposition New Democracy could not constitute an alternative proposal, and that Political Spring wanted elections.

He predicted that in the event of elections, none of the two large parties would be able to form a self-sufficient government. In this case, he added, Political Spring would discuss specific proposals of co-operation with the other parties but only on a basis of political programs.

Meanwhile, in an address to Communist Party of Greece (KKE) supporters in Thessaloniki's Aristotelous Square last night, KKE honorary leader Harilaos Florakis did not rule out the possibility of early elections in the autumn.

"It is possible, despite government denials, that the country will be led to elections in the autumn," Mr. Florakis said.

He added that "it is natural for the new president of PASOK to seek popular endorsement before the people experience a new and tougher unpopular policy the government intends to implement."

Mr. Florakis said the election of Costas Simitis as leader of PASOK combined with the overall repercussions and the effect the event will have on the other parties could lead to a more generalized shakeup.

He expressed his party's opposition to government policy both on economic issues and on foreign policy, and in particular to the way with which Turkish aggression was faced, as well as the position of the United States on the issue of Turkish expansionism.

Mr. Florakis also expressed KKE's opposition to the purchase of new weapons systems to strengthen the armed forces.

[19] Coalition promotes front against nationalism

The Coalition of the Left and Progress (Synaspismos) is promoting formation of an organization against nationalism with the participation of prominent personalities of various political orientations.

The organization is called the "Front Against the Logic of Nationalism for the Formation of a Modern Foreign Policy."

A first debate took place at the Athens Union of Journalists (ESHEA) yesterday, attended by independent deputy and former New Democracy foreign minister Mihalis Papaconstantinou, veteran left-wing leader Leonidas Kyrkos, journalist Rihardos Someritis, the medical director of the Center for the Rehabilitation of Torture Victims, Maria Kalli, General Confederation of Greek Workers (GSEE) president Christos Protopapas, among others.

Referring to Greek-Turkish relations, Synaspismos president Nikos Constantopoulos criticized the government for its recently announced new armaments programme, proposing instead a de-escalation of tension, possibly with the gradual application of the 19 88 Papoulias-Yilmaz memorandum, as well as the launching by Athens of a "prolonged diplomatic counter-offensive" and a "disengagement of Greek-Turkish relations from the Ankara-Washington-Athens triangle."

Mr. Papaconstantinou stressed that in Greece there is confusion between patriotism and nationalism, that to a large extent it is due to fear. He expressed the view that "Greece's foreign policy has fallen in the hands of private individuals," claiming t hat Greek-Turkish dialogue was necessary, and adding that "if we don't go into it ourselves, we will certainly be drawn into it as in the case of dialogue with Skopje."

Anna Karamanou, a PASOK central committee member, predicted "bold changes in foreign policy" following the election of Costas Simitis to the leadership of the party, citing the prime minister's views on national strategy, as expressed in a relevant book .

"We want to delete the picture that PASOK is dominated by patriotic and other forces," she said.

[20] Kavalla prepares for European peace conference

The international organizational committee that is to prepare the 2nd European Conference for Peace, Democracy and Co-operation in the Balkans is to convene in Kavalla today.

Attending the meeting will be an emissary of the Secretary-General of Council of Europe, under whose auspices the conference is being held, and representatives from Germany, Russia, Hungary and all Balkan countries.

A general meeting of the Federation of Balkan Non-Governmental Organizations is also to be held in the city on Saturday, to discuss common approaches to the problems of Balkan countries and ways of strengthening the ties between similar non-governmental organizations in the region.

[21] Papoutsis to head delegation promoting exports of renewable energy sources

EU Energy Commissioner Christos Papoutsis announced yesterday that he would head a commercial delegation next year promoting exports by Europe's renewable energy sources (RES) industry to third countries. He made the announcement during the inauguration of the European Renewable Energy Export Council by five European RES associations. Mr. Papoutsis stressed that the main obstacle for exports was how to gain access to third country markets.

"We must inform and persuade our likely buyers and users of the advantages and reliability of renewable sources of energy and the related technology," he said. He added that industries needing financial assistance in their export drive should receive it either through the various EU programs, such as MEDA, PHARE, and TACIS, or through international financial bodies such as the World Bank. He said the Commission would present a strategy for the promotion of RESs in the Union before the end of the year.

The five associations taking part in the newly founded council are the European Wind Energy Association (EWEA), the European Photovoltaic Industry Association (EPIA), the European Solar Industry Federation (ESIF), the European Biomass Industry Association (EUROBIA), and the European Small Hydropower Association (ESHA).

[22] Greece readies its Olympics 2004 bid

Losing out to Atlanta in the bid to host this year's centenary Olympic Games has not dampened Athens' conviction that it is worthy of staging a modern Olympiad.

Athens is up and running and in with a chance for the 2004 Olympics, the organizing committee for the bid said yesterday, but with a approach markedly unlike that which has characterized Athens' efforts at the International Olympic Committee in the past .

This bid, organizing committee president Yianna Angelopoulou-Daskalaki said, is totally different.

"Now, we are basing our efforts on our infrastructure projects - which are among the best in the world - and on the fact that Athens is being transformed, slowly, into a modern city.

"Work on the Athens Metro has already begun, as has work on the new international airport at Spata, two very important projects which will be ready in 2004 and are necessary for a city that aspires to host the greatest athletics event in the world."

Athens is competing for the first Olympic Games of the new millennium with Rome, Stockholm, Seville, Istanbul, the French city of Lille and St. Petersburg. The candidacies of Cape Town and Rio de Janeiro are considered to lead the field as neither Africa nor Latin America have ever hosted an Olympic Games tournament.

The Athens 2004 Olympics Committee is working on a budget of 1.5 billion drachmas, when most competitor cities are working on upwards of the equivalent of 2 billion, but is hoping to receive financial support from sponsors and the state. The final touches are being put to the Athens bid now before it is submitted to the IOC in August. An IOC delegation will visit the city in October before the IOC decides on a shortlist of candidates in February next year. The final decision is expected in September 1997.

"The Greek government fully supports in every way Athens' attempt to host the 2004 Olympic Games. This is a national effort which requires the mobilization of all of us," says Sports Under-secretary Andreas Fouras.

Ms Angelopoulou-Daskalaki said she was "cautiously optimistic" about the result.

"The philosophy behind the bid this time is different and on the facilities side we are ready," she said. "Athens has abandoned the prevailing Greek position that our country was the one that gave birth to the Olympic games and therefore has a given rig ht to host a modern Olympiad... We have to be reliable and to show that we are professionals".

[23] Largest ever Greek team at this summer's Olympics

Greece will participate in this summer's Atlanta Olympic Games with a 121-member team, its largest ever, it was announced yesterday.

The Greek Olympic Committee said the team consists of 87 male and 34 female athletes.

[24] US leaders honor retiring Iakovos

A letter by US President Bill Clinton, extracts of which were read by former US Sen. Paul Sarbanes at the Clergy and Laymen's Assembly's official bulletin on Wednesday, warmly praised outgoing Archbishop of North and South America Iakovos.

In his letter, Mr. Clinton lauded the Archbishop for "...his inspired, leading role in guiding the Christian world of the western hemisphere and in enlightening and strengthening the Greek Orthodox community within the framework of US society and in a period of great challenges and changes."

Moreover, in a video shown in the venue hosting the event, two more former US presidents, George Bush and Jimmy Carter, along with ex-Massachussetts governor and former presidential contender Michael Dukakis, referred to the achievements of the retiring ecclesiastical leader, stressing primarily his contribution to the protection of human rights, the eradication of racism and his efforts for world peace.

In addition, leaders of various religions and denominations spoke of the contribution of Iakovos to the unification and close co-operation of all faiths.

New York Mayor Rudolf Giuliani also addressed the ceremony, although Mr. Sarbanes best summed up Archbishop's contributions, referring to the "perpetual, laborious and persistent efforts by Mr. Iakovos for the participation of the Greek Orthodox faithful throughout the western hemisphere in all the sectors of life and work in the countries they settled, creating a community of immigrants which undertook a leading role in wider society."

He also referred to his struggles for human rights in the United States, Cyprus and around the world.

In a voice choking with emotion, Iakovos sought to allay the anxiety of Greek expatriates over the selection of his successor by the Ecumenical Patriarchate.

[25] Emergency pollution measures extended to today

The environment ministry yesterday said it would extend measures designed to fight pollution, including restrictions on traffic in the downtown area and a 30 per cent reduction in industrial production, until today.

The ministry banned all private vehicles from the Athens inner ring yesterday as temperatures in the high 30s and an absence of winds were expected to push already high levels of pollution up further. Despite the ban, pollution levels remained at high levels: a ministry announcement said the Patission monitoring station recorded nitrogen dioxide levels of 472mcgs at 11 a.m. Ozone levels hit the 311mcg mark at the Lykovrisi station, above the 300mcg limit for emergency measures.

Restrictions on traffic in the inner Athens ring will apply to all private vehicles from 7 a.m. until 2 p.m. Only taxis with number plates ending in odd numbers and vehicles that can prove they are transporting students for university entrance examinations will be allowed to circulate.

In the outer ring, all taxis and cars with license plates ending in odd numbers will be allowed to circulate.

The national ambulance service (EKAB) reported ferrying 138 people to hospitals for cardiac- and respiratory-related problems, as well as for dizziness. It said it received some 200 calls for assistance.

By and large, Athenians took the advice of the ministry and restricted their outside movements to the absolute necessary.

Prevailing weather conditions are expected to continue tomorrow with temperatures again in the high 30s.

[26] Independent advisory group to monitor public projects

The national economy ministry yesterday announced the hiring of an independent expert to control public projects and service contracts.

The signing of a three-year contract was announced between the ministry and the Center for International, European and Economic Law, focusing on rendering specialized advisory services and legal advice to state agencies on issues concerning observance of Community and national law during implementation of public projects and services contracts.

To this end, the center will organize a system of monitoring and registering the actions of all authorities connected with carrying out public projects and service contracts as well as establishing a special data bank to gather relevant information.

In this way, possible violations of Community legislation will be spotted and complications in the process of awarding and carrying out public works and services will be avoided.

[27] Water supply, drainage projects for E. Macedonia, Thrace announced

The interior, public administration and decentralization ministry announced yesterday a final list of projects envisioned in a water supply and drainage programme for eastern Macedonia and Thrace, and funded through the ministry's public investment programme.

Projects will total more than 9.3 billion drachmas.

In addition, Eastern Macedonia and Thrace Regional Secretary-General Haris Tsiokas issued a circular to prefects and agencies involved, stressing the need to accelerate procedures for implementation of the projects as part of an effort in the region to increase the rate of the projects' absorption of funding.

[28] Cohesion Fund grants 30.5 billion drachmas for projects around Greece

The Cohesion Fund has granted 30.5 billion drachmas (ECU 101.75 million) for a number of projects in Greece in the environmental sector and more specifically for sewage and drainage networks as well as sewage treatment plants .

Cities and regions slated to benefit from the projects are Patra, Volos, Hania, Sparta, the island of Hios, Komotini, Argos, Orestiada, Rethymno, Kalamata, Tripoli and Larisa.

The percentage of the Cohesion Fund's contribution amounts to 80 per cent of the total cost of the projects.

[29] Commission issues guide on equality of opportunities for men and women

The European Commission's office in Greece announced yesterday that the Union's General Dept. V - covering employment, labor relations and social affairs - has issued a practical guide and application form for funding within the Community's medium-term action programme on facilitating equality of opportunity between men and women.

Those interested in more information may obtain application forms from the following address: European Commission, Fifth General Dept. (DGV), Employment, Labor Relations and Social Affairs, Department of equal opportunities between women and men, rue de la Loi 200, B-1049 Bruxelles and from the European Commission's representation in Greece, Vassilisis Sophias Ave. 2, 106 74, tel. 72.51.000.

End of English language section.