A.N.A. Bulletin, 09/09/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 984), September 9, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Simitis says Gov't targets in '97 are higher GDP, lower inflation

A further de-escalation of inflation, reduction of the public debt and accelerated GDP growth are the government's three main macro-economic policy targets for 1997, Prime Minister Costas Simitis announced on Saturday in Thessaloniki.

Mr. Simitis said the government was determined to accomplish the task begun three years ago and would attain the targets set through a policy embodied in a triptych he called "development-stability-social cohesion."

With general elections just two weeks away on Sept. 22, he addressed a dinner traditionally given in honor of the prime minister on the occasion of the annual Thessaloniki International Fair, the 61st such exhibition that opened on Saturday in the northern Greek port city.

"The further de-escalation of inflation by at least 2-2.5 percentage points, reduction of the public debt as a percentage of GDP by 3-4 percentage points as foreseen by the convergence program and the accelerated growth of GDP to 3 per cent are our three main targets of macro-economic policy for 1997," Mr. Simitis said.

In 1997, Mr. Simitis added, the main goal of monetary and exchange policy would continue to be stability and the combating of inflation.

"This will generate suitable conditions for the further reduction of interest rates and, consequently, the strengthening of investment and economic activity in general."

Mr. Simitis forecast that the average annual rate of inflation would be 8.2 per cent - one percentage point down on 1995.

In addition, he noted that for the third successive year, workers would receive wage increases higher than the rate of inflation.

"We shall not base our stabilization program on the curtailment of the purchasing power of salaries. Our incomes policy will give constantly real increases to workers, increases which will not only protect them from the repercussions of inflation, but will reflect their just participation in the improvement of the national income," Mr. Simitis stressed, adding that the Greek economy was currently in a "peculiar watershed", on the one hand showing some of the best performances for many years, while on the other, faced with "a difficult course ahead" in order to attain targets set by the European Union.

The prime minister said that even greater progress must be made in the economy "in order to avoid its being left out of the new EU."

"It is no good moving along at our own pace when the others are running faster," Mr. Simitis said, adding: "Today's starting point is favorable, but the target is ambitious and the difficulties of attaining it a real challenge.

"If we hesitate and are irresolute, if we balk at the demands of adjustment, we will be faced by the end of the century with a much higher cost of adjustment, with consequences for our standard of living and serious repercussions for our national issues ," he warned.

Reviewing his government's economic performance, Mr. Simitis underlined that Greece's GDP was now growing at 2.6 per cent, the fourth highest in the EU. Investments, he continued, had increased during the last three years at an average annual rate of ab out 6 per cent, compared to just 1.4 per cent in the period 1990-1993.

Public and private investments were growing at a rate of 11 per cent in the current year, Mr. Simitis said, noting that Greece would have the highest rate of growth of industrial investments in the EU. "...and this investment explosion has not yet reached a peak," he said.

"We have reversed de-industrialization," Mr. Simitis went on, noting that industrial output had risen for the first time in many years, increasing at a rate of nearly 2 per cent in the period 1994-1996, compared to an average annual rate of -2 per cent in the period 1990-1993.

"This progress had direct results for workers. In the last three years 160,000 new jobs were created and the trend for unemployment to rise has been reversed," Mr. Simitis said.

The premier also said that PASOK government has stabilized public debt as a percentage of GDP at around 110 per cent, following a massive increase from 81 per cent in 1990 to 112 per cent in 1993. Describing the confidence of Greek and foreign investors in the country's public finance and economic policy as "self-evident", Mr. Simitis noted that the inflow of business capital was constantly increasing year after year "to the benefit of the country's development."

Foreign exchange reserves have reached a record high of $17 billion, the premier stated.

On fiscal policy, Mr. Simitis claimed the government had made substantial progress in creating a "modern and efficient tax system, which had also been made fairer.

"Participation of salary-earners and pensioners in total tax revenue fell from 60 per cent in 1993 to 53.5 per cent in 1995 while indirect taxes now account for 65 per cent of revenue, compared to 70 per cent in 1993," he said.

In implementing the state budget for 1997, Mr. Simitis said the government would make every effort to attract private capital for the financing of certain infrastructure works. In addition, "socially unjustifiable" tax exemptions would be abolished.

"Our public finance targets will be attained, as in the previous two years, without any deviation from the Convergence Program," the prime minister said, adding that this attainment would be "combined with a change in the operation of the public sector."

"We shall continue our efforts to effect savings on expenditures and combat waste, such as restrictions on hiring and stricter conditions and checks with regard to grants of all kinds," Mr. Simitis said.

Privatization procedures will proceed "carefully". he added, stressing that criteria to be applied in this respect would be the relevant "development prospects, the credibility of investors, the securing of as many jobs as possible, together with the parallel introduction of social protection measures."

In the public sector, the government's target would be "less hiring, better wages," Mr. Simitis promised.

Concerning absorption of EU funds, an issue on which the government has come under repeated fire from the opposition, the premier said funds totaling 965 billion drachmas would be absorbed in 1996 - almost as much as in the previous two years together.

The rate of absorption of funds under the Delors Package II for 1996 is estimated at almost 100 per cent, the premier noted, stressing that these funds were being used to finance major infrastructure projects and not minor works for petty political reasons.

Mr. Simitis also placed particular emphasis on the government's efforts to further develop the energy, tourism and agricultural sectors.

"In 1997, the introduction of natural gas in industry, in the commercial field and in homes will be a milestone in the country's energy sector and economy," he said, adding that it would have positive results for the cost of production, competitiveness, the environment and consumer prices.

In the tourism sector, Mr. Simitis said it was becoming increasingly clear that initiatives must be developed in new directions.

"The government is creating new infrastructure, some of which in co-operation with private investors. But in order to gain the preference of tourists, we must improve the quality of services," Mr. Simitis said.

The prime minister said the agricultural sector was one of the main aspects of the government's economic policy.

"During the last three years, the governments of PASOK have managed to realize a large part of their policy commitments, despite certain problems in particular sectors of production. But the agriculture sector is being called upon over the next few year s to fight for its survival and become more competitive through restructuring," the premier said.

One third of funds under the Delors II package had been allocated to the provinces "and directly or indirectly to farmers", he said, reiterating the government's measures, announced earlier this week, to assist young farmers in particular and to boost agricultural investments.

Mr. Simitis said the holding of early general elections later this month would have beneficial results for the economy, since the "erosive pre-election climate, promises and worthless handouts of the opposition, which would have destabilized the country for another 12 months" would be over in two weeks.

"Our society today finds itself faced with a fundamental choice, namely, if it will proceed in the same direction, a direction in which the social element is intertwined with the economic element and constitutes a crucial component of the political element, or in the direction of 'liberal conservatism,' in which the social dimension will relentlessly bear the entire burden of economic adjustment," the premier said.

"For our government, the linking of the political, economic and social elements is not merely a choice reflecting our system of values and ideology. We believe that no policy will achieve its targets if it does not win society over, if it does not make the broader social groups participants in its demands and its results," the premier added.

"Our aim is not just a strong Greece, but a Greece with a better quality of life, a different quality of relations between state and citizen, a Greece in which the mechanisms of the free market do not operate without controls and indiscriminately to the detriment of society. They will be both under control and will serve the forces of society," Mr. Simitis concluded.

[2] Nicosia, Athens deny any National Guard involvement in Turkish Cypriot's death

Greece and Cyprus yesterday categorically denied that Cypriot National Guard units were involved in the murder of a Turkish Cypriot soldier and the wounding of another near the buffer zone adjacent to the Turkish-occupied part of the island republic, attributing it to Turkish provocations.

According to Turkish Cypriot sources, broadcast by Turkey's semi-official Anatolia news agency and confirmed by the UN peacekeeping force UNFICYP, stationed in Cyprus, the Turkish Cypriot soldier was shot dead and another wounded early yesterday morning at a guard station near the village of Aheritou in the occupied part of Cyprus.

The Turkish side maintained that the gunfire, believed from Kalashnikov assault rifles - a type of weapon not used by the National Guard - were fired by Greek Cypriots across the UN-controlled buffer zone dividing the island since the Turkish invasion i n 1974.

Nicosia said no incident was reported during the night in the region where the shooting is claimed to have occurred.

Cypriot government spokesman Yiannakis Cassoulides said the incident was clearly a Turkish provocation, and recalled that his government had warned three days ago of a possible action by Turkish provocateurs.

In Thessaloniki, Prime Minister Costas Simitis, commenting on the issue during a press conference, accused Turkey and the Turkish Cypriot leadership of trying to present the incident as a result of previous actions by Turkish occupation forces and extremists, in order to justify their previous stance.

Turkish Cypriot leader Rauf Denktash said yesterday that the killing of the Turkish Cypriot soldier was an "act of vengeance" for the murders of Greek Cypriots Tassos Isaac and Solomon Solomou in Dherynia last month by Turkish forces and extremists in t he buffer zone.

The Greek prime minister, referring to contacts he had earlier yesterday with the Greek embassy in Cyprus and the Cypriot government, noted that following a weapons check of Cypriot National Guard units, it was found that no shots had been fired from the weapons in question.

"The causes (of the incident) are not known," said Mr. Simitis, adding "it could be due to domestic problems within the Turkish Cypriot community. They have nothing to do with and do not originate in the Greek Cypriot side."

Mr. Simitis linked the issue to that of Turkish aggression in general.

"Turkish aggression exists, thus we are obliged to deal with it effectively. Over the past two months, we have begun a diplomatic campaign which I believe has had tangible results. Where a favorable attitude to Turkey existed on the part of many Europe an countries, there is now mistrust, there are many doubts with regard to the Turkish position."

The premier emphasized that there was no question of continuing European Union funds to Turkey within the framework of the customs union.

The Europeans, he said, have seen that Turkey is not willing to accept the EU's positions regarding the problems that have come up after the Imia islet incident (in late January this year), and therefore they are not willing to continue funding Turkey."

Mr. Simitis concluded by reiterating that Greece would continue all efforts to present its positions, by exerting pressure on Turkey to respect international law and conventions.

Meanwhile, National Defense Minister Gerassimos Arsenis commenting on yesterday's incident noted that a distance of 700 meters separated the two guard units - an area patrolled by British soldiers. Neither the latter nor the UN forces have confirmed the Turkish allegations, he said.

Mr. Arsenis said the cold-blooded murders of Isaac and Solomou had created a particularly negative climate towards Turkey among the international public opinion.

"Thus, it was possible that Turkey was using every opportunity to reverse that climate," he added.

The defense minister drew attention to the existence of serious tension in the occupied territory between Turkish Cypriots and the occupation forces, a conflict which could have been the cause of yesterday's incident.

Mr. Arsenis also noted that Turkey, in view of the discussion of the Cyprus question by the United Nations, would perhaps try to exploit this incident by blaming the Greek Cypriots, something which it would not be able to succeed in doing, he contended.

[3] Cyprus government

In Nicosia, the Cyprus government criticized statements made by Turkish Foreign Minister Tansu Ciller and Mr. Denktash, who described the killing as a "cold-blooded murder" by the Greek Cypriot side and blamed the government for the killing.

Such statements "do not help in defusing tension," government spokesman Cassoulides noted.

He added the government does not want tension in the region or in Cyprus and it is ready to contribute to defuse tension.

"We are a responsible government and we shall examine all possibilities. We will not come to any rough conclusion," Mr. Cassoulides said.

He noted that a "thorough investigation carried out by the National Guard proved that no shots were fired from a Greek Cypriot National Guard post to the occupied areas."

Mr. Cassoulides said the government was certain about this following an investigation into the weaponry held by soldiers in the area.

A similar conclusion was arrived at during a meeting at National Guard headquarters, headed by Cyprus Defense Minister Costas Eliades. The meeting was told that the incident is believed to be the result of an act of Turkish occupation provocateurs.

According to a Cyprus News Agency (CNA) dispatch from Nicosia, the British Sovereign Base Area (SBA) announced that the shots were fired from a place north of the Turkish forces' cease-fire line, thus occupied territory.

From an initial investigation by the Sovereign Base Police and the Royal Military Police, it appears that the shots were fired from a point north of the Turkish forces' cease-fire line, and thus beyond the jurisdiction of the British forces, an announcement said, adding that occupation Turkish forces were now in charge of inquiries. However, sovereign base authorities would be assisting in investigating the crime, since there was a possibility that the perpetrators of the crime had acted via British bas e territory.

A Greek Cypriot witness said he heard the shots early yesterday morning and saw a car speeding into Turkish occupied territory.

[4] Simitis' press conference on election, foreign policy, economy

Prime Minister Costas Simitis expressed confidence yesterday that PASOK would win the Sept. 22 election with an increased majority, saying it was the party which aimed at unifying all the country's forces and also formed the backbone of the progressive movement.

Speaking at a press conference in Thessaloniki yesterday during the inaugural weekend of the 61st International Trade Fair (TIF), Mr. Simitis responded to questions ranging over a variety topics, chiefly related to the election campaign, foreign affairs and the economy.

PASOK, Mr. Simitis said, had no need of "drama or fireworks" to draw crowds, since creating tension did not help the election campaign. Greek citizens needed to judge calmly and soberly, while this election campaign was aimed "at better contacts with the people."

The prime minister reiterated his rationale for an early poll, saying that a drawn-out election campaign period would have created problems.

Accusing the main opposition New Democracy party of making "empty promises", he announced that a televised debate between himself and ND leader Miltiades Evert would be held this Friday. He stressed that it would be held according to rules governing such debates in all European Union member-states - in the form of questions from reporters with a time-limit on answers.

The premier maintained that voters did not want to watch a personal rivalry and conflicts that lowered the level of the campaign. There were those, he said, who saw political competition as a boxing match. however, it was his job and that of PASOK to ensure the quality of the campaign.

"Voters should reach their conclusions on the basis of arguments and perspectives, not on the basis of who had the bossiest manner," he emphasized.

Turning to foreign affairs, he denied any knowledge of a possible American initiative after the US presidential election in early November, yet he stated that "logically speaking" the new US president would undertake initiatives.

The prime minister also replied to another question that it was Greece's inalienable right to extend its territorial waters to 12 nautical miles whenever it saw fit.

With regard to the dispute with the Former Yugoslav Republic of Macedonia (FYROM), Mr. Simitis noted that existing policy was based on an interim bilateral accord and that negotiations were continuing. He pointed out, however, that the accord had been signed when Andreas Papandreou was prime minister and Karolos Papoulias foreign minister.

Turning to the economy, Mr. Simitis promised there would be no new taxes. His said the government, if re-elected, would not be changing its policy after the elections, and stressed that Greece's foreign exchange reserves stood at the record figure of $17 billion.

"I would like to remind you that our policy over the last three years has led to a dramatic fall in inflation, a reduction in the public deficit and an increase in the GNP to an unprecedented level in recent years. It has led to an inflow of foreign exchange as well as investor confidence."

Unnecessary tax benefits would be scrapped, while privatizations already in progress would proceed, he promised.

Questioned on the recent closure of the Goodyear plant in Thessaloniki, Mr. Simitis contended that the age of cheap labor in Greece has ended with the opening of new inexpensive labor markets in eastern Europe. However, he said, the company told the government it was considering the creation of an inter-Balkan tire distribution network based in Thessaloniki, which could absorb many of the laid off Goodyear workers.

In addition, the premier responded to questions regarding other measures for northern Greece by referring to works in progress - such as the Egnatia Highway, port improvements in Alexandroupolis, Kavala and Thessaloniki, telecommunication infrastructure upgrades as well as new projects such as the Black Sea region development bank and the Thessaloniki Stock Exchange. Questioned with regard to the development of border areas, he drew attention to the plan drawn up for Macedonia and Thrace, similar to that for the Aegean.

Finally, in response to questions regarding campaign promises by Mr. Evert, Mr. Simitis drew attention to the fact that the ND leader's seven promised measures would cost the Greek economy 900 billion drachmas, according to estimations by ND experts. He said Mr. Evert was playing campaign theatrics, since if such a sum were available, the economy could not be in such dire straits as ND claimed.

[5] PM lauds role of Thessaloniki International Fair

The prime minister expressed certainty yesterday that the Thessaloniki International Fair (TIF) will operate as a decisive lever in promoting the effort on Greece's presence in the Balkans.

Premier Costas Simitis, who visited TIF's offices at the head of a government representation, said this year's 61st TIF was particularly successful, adding that he ascertained from his visit that it "has promoted the standing target again this year which is highlighting the achievements of the Greek economy, its linkage with the economies of other countries and the presentation of the work taking place in our country all over the world."

TIF President Antonis Kourtis gave Mr. Simitis a commemorative replica of the golden casket of Phillip of Macedon and reminded the premier of what he (Simitis) had said during his visit last year, that "the fair is an instrument for policy, primarily strategy, the government will develop for the Balkans and the wider region."

[6] Clinton message notes excellent contacts with Greece's leadership

In a message heralding the official US participation at the 61st annual Thessaloniki International Fair (TIF), US President Bill Clinton said he has come away with the best impressions from his contacts with Greece's top leadership over the past year.

Mr. Clinton met this year with President of the Republic Kostis Stephanopoulos, Prime Minister Costas Simitis and other party leaders as well as Greek businessmen.

"More than on any other occasion, these visits convinced me on the significant role your country can play in promoting democratic values and economic development all over the region of southern Europe. In addition, I was impressed by the progress achieved in expanding trade and private businesses in the region.

"A great deal has been done and we can do more," President Clinton said in his message.

[7] Pangalos notes change in EU concerning Greek-Turkish relations

A different mind-set is beginning to take hold within the European Union with regard to Greece's problems vis-a-vis Turkey, Foreign Minister Theodoros Pangalos noted yesterday, after attending an informal meeting with his EU counterparts in Ireland over the weekend.

"Gone are the days when we spoke about Turkey and (our European partners) sighed with resignation and indifference," Mr. Pangalos said.

The Greek foreign minister on several occasions also put forth Athens' concerns regarding Turkey's behavior, chiefly drawing attention to the EU's inability to rise to the challenges facing it and to exercise a strong joint foreign policy based on the preservation of peace and security in the Union's immediate region.

The EU's relations with Turkey will be the subject of a meeting in New York at the end of the month between Turkish Foreign Minister Tansu Ciller and the EU's rotating council president, Irish Foreign Minister Dick Spring, on the sidelines of the United Nation's general assembly.

Mr. Spring is expected to attempt to come away with a response from Ankara to a "text of principles" regarding Greek-Turkish relations, adopted by the EU Ministers' Council last July.

[8] Pangalos on Iraq

Meanwhile, during yesterday's session, Mr. Pangalos noted that Ankara was moving towards a general dispute of the 1923 Treaty of Lausanne, promoting territorial claims not only against Greece but also on its southeastern border with Iraq.

"This development is an event of international significance and the European Union cannot ignore a source of tension and potential military conflict created by Turkey's stance. I have the impression that this has become generally accepted," Mr. Pangalos said.

On Saturday, the first day of the meeting, Mr. Pangalos criticized the absence of a firm set of principles and regulations to govern a joint foreign policy for the EU, which he said was being "pushed to the wings of the international stage."

"What interests us is securing protection for the Kurds from a regime (Baghdad) which does not guarantee respect for human rights," he said, adding:

"On the other hand, the international community should function with consistent principles and avoid using two different yardsticks according to whatever interests were at stake or according to the amount of dependence on the US superpower. I do not understand why we should protect the Kurds from Saddam Hussein and then allow Turkey to slaughter them," he said.

In reference to Cyprus, Mr. Pangalos briefed his counterparts on the tragic events at Dherynia last month, which resulted in the murder of two unarmed Greek Cypriots protesters, emphasizing the role of Turkey in planning and carrying out the violence. H e added that "Turkey is not interested in solving the Cyprus issue, but on the contrary, is working towards the final partition of the island so that the two communities have no contact with each other."

IGC --- Tralee, Ireland 09/09/1996 (ANA)

With regard to the intergovernmental conference (IGC), the Greek foreign minister also expressed reservations regarding the necessity of calling an unscheduled summit meeting on Oct. 5 in Dublin, aimed at giving a political impetus to the IGC - a meeting which Mr. Pangalos said will be restricted to discussion of the items for inclusion on the agenda.

"We emphasized the view of most of the member-states and of the presidency, that there should be a discussion of the entire treaty reform plan, to include the various views on individual articles," he emphasized.

[9] Gov't warns that Turkish invasion of N. Iraq would violate Treaty of Lausanne

Prime Minister Costas Simitis yesterday reiterated Athens' position that a Turkish invasion of northern Iraq would be in contravention of the 1923 Treaty of Lausanne determining Turkey's borders with its neighbors.

"We are against any such intervention since Turkey is not a stabilizing force in the region, but on the contrary, constitutes a destabilizing factor," Mr. Simitis told a press conference in Thessaloniki on the sidelines of the 61st Thessaloniki International Fair.

"The US should reconsider the situation," the premier said, adding that he had replied to US President Bill Clinton's letter on the Iraqi issue, which was received by the premier through the US embassy in Athens last week.

Mr. Simitis also emphasized the need to abide by international law.

Speaking on the same issue in Thessaloniki, Caretaker Press Minister Dimitris Konstas said Greece was already in contact with European Union member-states in order to formulate a common community position in the event Ankara intervened militarily in northern Iraq.

Mr. Konstas said that at the informal meeting of EU foreign ministers, the Greek side would pursue the shaping of a common position by EU member-states, adding that Athens' raising of the issue of Turkish provocativeness with its EU partners is a standing position.

"A possible intervention by Turkey in Iraq would constitute an act of violation of the sovereignty of an independent state and would contribute to destabilization in the wider region. The establishment by force of arms of 'safety zones' is not tenable in international law, but only in the logic of crude force and the creation of faits accomplis," Mr. Konstas said.

"It ultimately proves the political deadlock in which a state has found itself in, and which resorts to such methods. Resorting to force against neighboring countries does not even resolve the domestic problems of the party applying it. It simply under mines peace and security in the wider region of the Middle East, an inseparable part of whose problems Turkey itself has now become," he added.

Referring to the same issue in Thessaloniki on Saturday, National Defense Minister Gerassimos Arsenis said a possible military intervention in northern Iraq by Turkey would be an extremely dangerous and destabilizing action for the region.

Speaking to reporters, Mr. Arsenis said stability in the area required respect for international treaties, UN resolutions and human rights, adding that Ankara constantly infringed on these issues.

The national defense minister said international public opinion and international organizations should condemn such action by Turkey, adding that this action was of particular importance to Greece since the borders of Turkey and Iraq had been established by the Lausanne Treaty.

On his part, Alternate Foreign Minister Giorgos Romeos said the shaping of a common position by the Community's 15 members was not always feasible, and indirectly admitted that some EU countries, which he did not name, do not appear prepared to directly condemn Turkey.

[10] Greek expatriate deputies to form int'l union

Several foreign parliamentarians of Greek descent have decided to establish an "Interparliamentary Union of Hellenism" worldwide.

The union will be a non-partisan political union and include expatriate Greek deputies from Sweden, the Netherlands, Romania, Ukraine, Peru, Australia and Canada, as part of an effort to further promote issues of concern and to create a network bringing them into contact with other parliamentary representatives with similar backgrounds.

The Union is expected to function as supplementary organization to the World Council of Hellenes Abroad (SAE) and its members will participate in the international assembly of expatriate Hellenes.

[11] Simitis slams Ciller remarks on Cyprus incident

Prime Minister Costas Simitis sternly replied to earlier statements by Turkish Foreign Minister Tansu Ciller, saying there was a possibility of yesterday's incident in Cyprus being a Turkish provocation aimed at dragging Greece into negotiations.

A Turkish Cypriot soldier was killed by gunfire, while another was wounded, early yesterday morning.

Mr. Simitis, speaking at a party rally in Serres, commented on Ms Ciller's statement that "matters were dangerous in Cyprus and there was Greek aggressiveness" with the premier responding that "there is Turkish barbarity in Cyprus."

"We all know that the Turks murdered the two Greek Cypriots (murdered by Turkish occupation forces and extremists in the UN-controlled buffer zone in August) and today's (yesterday's) incident could be a provocation set up by the Turks to achieve this negotiation and achieve this dialogue," Mr. Simitis said.

He added that Turkey should first clarify its position in relation to its dispute of the sovereignty of Greek islets in the Aegean and take a step forward, adding that it should apply international law and go to the international court of justice if it had any claims. He also stressed that Greece would defend its positions and rights with all means.

In a written statement yesterday, Ms Ciller claimed that "in principle, the Greek Cypriot side is responsible for the 'murder'," warning that "the armed attack is a sign that the Greek and the Greek Cypriot side could go ahead with new provocations in Cyprus in the next few days."

[12] First open rally for ND held in Karditsa, Evert addresses crowd

Addressing his party's first open rally in the central Greek city of Karditsa yesterday, main opposition New Democracy party leader Miltiades Evert expressed certainty that ND will win the upcoming general elections.

"We are coming to create a new Greece which does not lower the Greek flag, which does not start and does not end at Syntagma Square, which does not bow to organized and inter-related interests and is not subjected to misery and fatalism," he added.

Wielding the slogan "new government, new Greece, we are not the same", Mr. Evert said "inter-related interests do not support us, they are fighting against us because they know that we will not let you work for their benefit, because extortion and compromises against the Greek people have no place with us." Mr. Evert criticized the government for its policy on foreign issues and stressed that "we did not thank the US government, neither did we apologize to the Germans, we base our relations with other countries on mutual respect.

"The time has come for work, the time has come for the government to work for the Greeks, an end should come to extravagance and misery, the government on vacation should come to an end - there should be no 'television channel' ministers during a nation al crisis and there should be no government in which every minister does what he pleases," the ND leader added.

Mr. Evert is scheduled to give a press conference on national issues at the Zappeion Hall today.

Meanwhile, in Larisa on Saturday, Mr. Evert said his party had support in all political sectors and would receive votes from disappointed people from all over the political spectrum.

"We have no class distinctions. We are a national, liberal, social and progressive party. We embrace all Greek citizens and we will give no farmer, professional, etc. to any other party," he said.

Speaking to local residents and leaders, Mr. Evert said grants promised to farmers by the prime minister were fake, adding that ND had proposals and solutions for all the problems faced by the Greek people, but did not present them so as not to be criticized of making promises and creating confusion among the voters.

Mr. Evert also expressed reservations over the way his television encounter with Mr. Simitis on Friday has been organized, saying it will be "an intermediary discussion, as if a piece of glass will be standing between us" and adding that in "a dialogue those who are sincere and those who have no fear look at each other in the eyes and discuss directly."

[13] Premier hits the election trail with visits to several communities

Prime Minister Costas Simitis toured the communities of Veria, Yiannitsa, Irinoupolis, Aiginio and Halkidona on Saturday as part of his pre-election campaign, warning that "the future cannot wait."

Mr. Simitis, who was accompanied by several ministers, deputies and PASOK party cadres, said the nation's priorities, and particularly those of northern Greece, are economic modernization, consolidation of a "new social state" and the country's equal participation in unified Europe.

Criticizing the main opposition New Democracy party, Mr. Simitis said when it was in power when inflation and unemployment rose and that Athens' positions were not promoted on national issues. He also claimed that the ND government between 1990-1993 was absent from GATT negotiations.

In addition, a large part of the prime minister's speeches were dedicated to farmers and the agriculture sector. He referred to possibilities of funding through leasing, with land being the sole contribution on their part and additional training for far mers.

On the question of pensions, Mr. Simitis said the issue could not be resolved with tips and grants, adding that the government already had a plan ready for immediate tabling in Parliament.

End of English language section.