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A.N.A. Bulletin, 10/09/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 985), September 10, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca


CONTENTS

  • [1] Simitis to Clinton: Turkish plans for 'security zone' dangerous

  • [2] Arsenis: Turkish invasion of N. Iraq 'extremely dangerous'

  • [3] Evert promises ND campaign to reduce unemployment

  • [4] Building in Brussels donated for Greek public, private institutions

  • [5] Kaklamanis cites Turkish aggressiveness as a destabilizing force

  • [6] Athens reiterates that latest Cyprus incident a Turkish provocation

  • [7] Evert pledges to implement proposals on education, tourism

  • [8] Papariga expresses KKE opposition to draft bill on public utilities

  • [9] Simitis continues campaign with rally in Ioannina

  • [10] Simitis says vote for DHKKI a vote for the right

  • [11] Constantopoulos claims Simitis attempting to blackmail leftist votes

  • [12] Two pre-election poll results released

  • [13] Reactions

  • [14] OAED allocates 20 per cent subsidy for Thracian businesses' payroll

  • [15] Transport minister denies report of floatation of OTE stock

  • [16] Joint Greek, Cypriot business delegations to tour Balkan capitals

  • [17] Papoutsis. Greece's efforts for convergence must continue

  • [18] Pumping started from North Prinos 2 site


  • [1] Simitis to Clinton: Turkish plans for 'security zone' dangerous

    Athens, 10/09/1996 (ANA)

    Prime Minister Costas Simitis yesterday warned that Turkey's plan to establish a "security zone" in northern Iraq violated fundamental principles of international law, creating an extremely dangerous precedent for the region and elsewhere.

    Such a development, Mr. Simitis said, "raises alarming concerns from many points of view and has a direct destabilizing effect in the area."

    Mr. Simitis was responding to a last week's letter from US President Bill Clinton to NATO allies seeking support for its cruise missile attacks, and assessing Turkey as having a "key role" in the wider region.

    The full text of Mr. Simitis' letter of response to President Clinton, released here yesterday, is as follows:

    "I would like to thank you for your message of the 3rd of September on the subject of the action the United States has taken against Saddam Hussein, of which I have taken good note. The Greek government sincerely hopes that the situation in Iraq will be resolved according to the relevant UN Resolutions, and unreservedly supports all efforts to this end.

    "In this context, Greece considers essential to ensure full respect for the existing territorial status quo in this area as defined by long-standing international treaties. All the more so since Greece has recently been faced with territorial claims on the part of Turkey.

    "As a matter of fact, Turkey challenges the 1923 Lausanne Peace Treaty, which defines the frontiers of Turkey, from the Black Sea to the eastern Mediterranean, extending down to Iraq and Iran.

    "Greece would understand the need to take into account the legitimate security interests of Turkey, only within the framework prescribed by international law and treaties and provided that such legitimate interests of other neighboring countries are equally taken into account. This is the only way to ensure stability and security in the region and beyond, in the interests of peace.

    "After receiving your message, news has been confirmed of the Turkish decision to set up a 'security zone' within Iraqi territory along the border, and the relevant military advance has started. This development raises alarming concerns from many points of view: It has a direct destabilizing effect in the area, it violates basic principles of international law, it curtails relevant UN resolutions and creates a most dangerous precedent for the region and elsewhere. I am convinced that this turn of events needs your immediate attention.

    "I am sure, Mr. President, that the principles I have referred to serve our common quest for a stable world environment and safeguard the interests of western democracies."

    Meanwhile, in a related development, caretaker Press and Media Minister Dimitris Konstas, replying to reporters' questions said the Athens had only unconfirmed reports at present claiming that two Turkish battalions had crossed the border into northern Iraq.

    In addition, Mr. Konstas said the government was in continuous contact with the governments of the states in the region.

    [2] Arsenis: Turkish invasion of N. Iraq 'extremely dangerous'

    Athens, 10/09/1996 (ANA)

    National Defense Minister Gerassimos Arsenis held a meeting yesterday with a delegation from the Western European Union's (WEU) parliamentary group on issues touching on the future of the Union, developments in the region, Iraq and Cyprus as well as Greek- Turkish relations.

    Referring to expressed Turkish intentions to establish a security zone within Iraqi territory, the minister said Turkish troops were massing on the border with northern Iraq but that "we have no information about an attack by Turkey, although we must consider this as imminent.

    "This action by Turkey is extremely dangerous for stability and peace in the region, violates international treaties, UN resolutions, questions the inviolability of borders, which we must all respect, and creates serious problems because there are no safeguards for human rights," Mr. Arsenis added.

    Calling on the European Union to form a common position on the issue, he expressed hope that the WEU's presidium had been convinced that Turkish-Iraqi relations "are not an issue solely concerning Greece and its security, but an issue concerning the economic future of the European Union and the safety of Europe."

    Briefing the delegation on Greece's national issues, Mr. Arsenis said "violability of borders creates precedents which we don't accept."

    The head of the WEU delegation, Armand de Decker, said the Union should closely follow developments "in this European country that is so close to the Middle East, and all other geographic regions recently presenting developments."

    Mr. de Decker said "Greece can play a very important role regarding stability in the region."

    Meanwhile, President of the Republic Kostis Stephanopoulos also received a group of Belgian deputies and members of the Western European Union (WEU), also headed by Mr. de Decker.

    Greece's permanent representative to the WEU was also present at the meeting.

    [3] Evert promises ND campaign to reduce unemployment

    Athens, 10/09/1996 (ANA)

    Addressing a special press conference on unemployment yesterday, main opposition New Democracy party leader Miltiades Evert said the parties' bidding on who would create the most new jobs "would constitute an affront to the unemployed and their families."

    Mr. Evert said the problem of unemployment was not only Greek but European as well, adding that if it were not tackled with suitable measures it would take on explosive dimensions and could reach 15 per cent by the end of the century.

    Outlining the main sectors contributing to unemployment, Mr. Evert stressed the farming sector, which was continuously waning and predicted that unless it was supported, 280,000 people would move to urban centers and further increase unemployment.

    Mr. Evert also referred to small- and medium-size enterprises, which employ 70 per cent of people employed in the transformatory sector, and which are currently going through what he called a great crisis.

    He also focused on the unchecked entry of foreigners into the country, excluding ethnic Greeks from Albania and Black Sea Greeks. He added that foreigners should only be allowed to work in productive sectors where work is not provided by Greeks and under humane conditions.

    Mr. Evert said measures announced by ND precisely concern support for farmers and SMEs and were aimed at stabilizing unemployment at an initial stage and not extending it.

    He said ND's main proposal on tackling unemployment was speeding up GDP development rates, which should reach 4-5 per cent in the next few years, as well as timely and appropriate absorption of Community funds.

    Mr. Evert said his party would not impose more taxes but expected an increase in state revenues through a decrease in state spending and an increase in the development rate.

    [4] Building in Brussels donated for Greek public, private institutions

    Athens, 10/09/1996 (ANA)

    The Public Buildings Service in Belgium has donated an older building to the Greek government in Grande Place, in the center of Brussels, to be used to house several Greek public and private institutions.

    Besides the Hellenic Culture Foundation, a number of professional associations will be housed at the building, such as the Federation of Greek Industries (SEB), the Small- and Medium-Sized Enterprises Organization (EOMMEX) as well as Greek shops with international distinctions.

    Alternate Foreign Minister Giorgos Romeos yesterday welcomed the move.

    "Concession of this building to the Greek state serves in promoting the singular possibilities our country has as a member of both the European Union and the Black Sea Economic Co-operation Council," he said.

    [5] Kaklamanis cites Turkish aggressiveness as a destabilizing force

    Athens, 10/09/1996 (ANA)

    Parliament President Apostolos Kaklamanis yesterday stressed the dangers for the Balkans and the greater region of the eastern Mediterranean and the Middle East emanating from what he called Turkey's aggressive policy and the worsening political instability in Ankara following the ascent of the Islamists to power.

    Addressing a group Belgian deputies that are also members of the Western European Union (WEU) parliamentary group which visited Parliament yesterday, Mr. Kaklamanis referred to Turkish intransigence, saying it culminated to the cold-blooded murder of two

    Greek Cypriot demonstrators in the buffer zone dividing the island republic last month, as well as to other provocative acts.

    Concerning the dispute with the Former Yugoslav Republic of Macedonia (FYROM), he expressed confidence that a solution to the name issue will be found in negotiations under United Nations auspices.

    The Parliament president also referred to the need for smaller countries and the citizens of Europe to participate in the procedure of revision of the Maastricht Treaty and the intergovernmental conference in order to achieve a more effective completion of European integration. He added that Greece's Parliament had recently amended its regulation in order to promote new procedures for control of government agencies undertaking Community obligations.

    For his part, the head of the Belgian delegation, Belgian parliamentarian Armand de Decker, a candidate for the WEU presidency in December, expressed satisfaction with the briefing from Mr. Kaklamanis.

    [6] Athens reiterates that latest Cyprus incident a Turkish provocation

    Athens, 10/09/1996 (ANA)

    Greece yesterday reiterated that the latest violent incident in Cyprus was a Turkish provocation intended to force Athens to the negotiating table with Ankara.

    Prime Minister Costas Simitis told a political rally in Serres on Sunday evening that recent incidents in Cyprus could be interpreted as a Turkish-engineered gimmick to "drag Greece into negotiations."

    Noting that Cyprus has become the scene of Turkish barbarity, Mr. Simitis reiterated the government's position that Greece's sovereign rights are "non-negotiable," adding that "we will defend our positions and our rights with every means."

    The latest incident in Cyprus involved the murder of a Turkish Cypriot soldier and the wounding of another near the UN-controlled buffer zone early Sunday morning. Last month, Turkish occupied forces and extremists murdered two unarmed Greek Cypriots in another part of the UN-controlled buffer zone.

    Greece and Cyprus categorically denied that the Cypriot National Guard was involved in the incident.

    The Turkish side alleged that the gunfire, believed to be from Kalashnikov assault rifles - a type of weapon not used by the National Guard - were fired by Greek Cypriots across the buffer zone dividing the island since the Turkish invasion in 1974.

    Nicosia said no incident was reported during the night in the region where the shooting is claimed to have occurred, while government spokesman Yiannakis Cassoulidis branded it as "clearly, a Turkish provocation."

    In Athens, caretaker press minister Dimitris Konstas said yesterday "that Turkey should use the term "terrorism" sparingly and with great caution, particularly in view of the fact that Ankara has been accused by the international community for heinous acts.

    He was commenting on statements by Turkish Foreign Minister Tansu Ciller, who claimed that Cyprus was "a haven for terrorism", following the death of the Turkish Cypriot soldier.

    "The use of the word 'terrorism' by Ms Ciller is inappropriate," Mr. Konstas added.

    In Ankara, Ms Ciller called for the "immediate arrest and punishment of those responsible for the murder."

    The Turkish foreign ministry announced that she would attend the funeral of the soldier today in the occupied region.

    Meanwhile, in Istanbul, Turkish authorities took special security measures outside the Ecumenical Patriarchate in the Fanar district, where some 30 members of an extremist Islamist organization protested Sunday's incident in Cyprus.

    The Patriarchate has been the object of constant criticism in the past few days by extremist Islamist newspapers.

    [7] Evert pledges to implement proposals on education, tourism

    Athens, 10/09/1996 (ANA)

    Main opposition New Democracy leader Miltiades Evert held a meeting yesterday with the deans of the Greek universities whom he informed on the party's proposals regarding higher education in Greece.

    Mr. Evert held a separate meeting with representatives of tourist enterprises, pledging to support and develop the field.

    New Democracy has pledged to allocate 5 per cent of the Gross National Product to education, establish the position of a permanent Education Under-secretary, introduce university self-administration and include higher education problems in the agenda of a planned National Counci, thus initiating an inter-party approach to education.

    "Everything I said we will (as government) fully implement," Mr. Evert said. "Education and culture, the best thing Greece can offer to the world, are under persecution."

    Mr. Evert also met yesterday with the Association of Greek Tourist Enterprises Association to whom he reiterated a party commitment to support and develop tourism.

    Mr. Evert has pledged that as prime minister, he will double the number of tourists visiting Greece from 10 million today to 20 million by the year 2000.

    He said such an increase will result in "absorption of our farming products" as well as to "a more effective promotion of our national issues."

    Regarding Greece's national carrier Olympic Airways, Mr. Evert said OA should be reinforced, adding that the carrier should not have exclusive rights to operate all international flights "thus resulting in a reduction of tourist traffic."

    [8] Papariga expresses KKE opposition to draft bill on public utilities

    Athens, 10/09/1996 (ANA)

    Communist Party of Greece (KKE) Secretary General Aleka Papariga yesterday expressed her opposition to a new draft bill for public utilities and state-run corporations, during her visit to the Thessaloniki International Fair (TIF). Ms Papariga said the law will lead to privatizations and expressed a fear that its implementation, in the case of TIF, will estrange it from the Greek people.

    The KKE leader added that she fears the law will drastically change relations at the exhibition between Greek and foreign products and will create problems for employees of the TIF organization. Ms Papariga said the exhibition's role is positive and that the annual visit "is a good habit for the KKE", as it provides the opportunity to ascertain the effort made for its organization and the problems as they appear in participation.

    KKE calls on Tsovolas to clarify position on possible post-election co-operation with PASOK - Communist Party of Greece (KKE) Secretary General Aleka Papariga yesterday criticized Social Democratic Movement (DHKKI) leader Dimitris Tsovolas, accusing him of "not clarifying his position regarding possible post-election co-operation with PASOK."

    Addressing a press conference in Thessaloniki, Ms Papariga said the policies of the former PASOK minister and DHKKI's founder were "full of generalizations."

    "Mr. Tsovolas seeks pretexts in order to form a post-election co-operation with PASOK," she said. Stressing that KKE "is the most fanatic supporter of co-operations," Ms Papariga went on to clarify that "there is no possibility for co-operation with the two major parties. Their attitude and anti-popular policies do not allow co-operation with them," she added.

    [9] Simitis continues campaign with rally in Ioannina

    Athens, 10/09/1996 (ANA)

    The great dilemma in the upcoming Sept. 22 general elections is a choice between progress and the right, Prime Minister and PASOK leader Costas Simitis told an election rally yesterday in the northwestern city of Ioannina.

    Mr. Simitis severely criticized main opposition New Democracy (ND) leader Miltiades Evert and also presented the government's development program for Epirus, saying the region would soon come out of its isolation and serve as a springboard for Greece' s strong presence in the Balkans.

    "If Mr. Evert wins the elections he will lead the country into adventures," Mr. Simitis said, attacking the ND leader for his party's foreign and economic policy.

    "Foreign policy is not about drawing little flags on a map," Mr. Simitis said, referring to a recent presentation by Mr. Evert, "and economic policy is not announcing seven measures and promising in each place that you visit whatever sounds most pleasant."

    In order for there to be development, the premier noted, there must be planning, hard work and a perspective.

    He also criticized the way in which the ND leader has proposed facing Turkish provocativeness.

    "When there is tension, you cannot respond with greater tension, because this may lead to a pointless confrontation. We say 'yes' to confrontation when we are going to defend our sovereign rights and the country, but beforehand we will exhaust all means in order to secure peace, because in this way we shall be able to isolate Turkey internationally," Mr. Simitis said.

    The prime minister continued his attack on Mr. Evert, saying the ND leader adopted a Turkish proposal for preparation of an agenda for talks on so-called Greek-Turkish differences. He said the ND leader was also falling into the trap of Turkey, "which i s increasing tension in order to provoke an incident and subsequently, (force) a dialogue on the so-called Greek-Turkish differences."

    In the face of this challenge, Mr. Simitis continued, "we are cool-headed and are developing diplomatic initiatives in order to place Turkey in the corner.

    "We have already achieved a great deal," Mr. Simitis said, referring to the European Union's decision to block funds allocated to Ankara under its customs union agreement with the Community.

    Turning to the economy, the prime minister lashed out against New Democracy, saying it changed its economic policy three times as government between 1990-93.

    Branding Mr. Evert's pledges regarding the economy as "contradictory," Mr. Simitis went on to say that Mr. Evert said Greece's economy "is destroyed," while announcing measures, which if implemented, will cost the economy 900 billion drachmas, thus showing that "the economy is on the right path."

    "But if the economy is stable then we don't chose a person who will lead us to adventures," the prime minister added, calling on all citizens who voted for PASOK in 1993 to give the party a new powerful Parliamentary majority.

    Mr. Simitis further called on those who did not cast their vote in favor of PASOK to think that the country "is at a crucial crossroads.

    [10] Simitis says vote for DHKKI a vote for the right

    Athens, 10/09/1996 (ANA)

    Speaking before his arrival in Arta, the hometown of Democratic Social Movement (DHKKI) leader Dimitris Tsovolas yesterday, Prime Minister Costas Simitis indirectly criticized the DHKKI leader.

    Mr. Simitis implied that anyone voting for DHKKI would be supporting the right-wing, as he said the only socialist party is PASOK.

    "Whoever breaks the progressive faction brings the right-wing to power," Mr. Simitis said. "Whatever the right gives with one hand, it takes several times over with the other, and this will be the price the Greek people will pay because of those they will bring to power."

    The prime minister was due back in Athens last night. He will make a one-day visit to Irakleio tomorrow as part of the party's campaign.

    During his visit, the prime minister will visit the Venizelion Hospital, meet with representatives of farmers' cooperatives of the region as well as regional authorities and address a political gathering.

    Parliament President Apostolos Kaklamanis yesterday expressed certainty that the ruling PASOK will win a fresh mandate during elections later this month.

    Addressing a press conference, Mr. Kaklamanis said PASOK was the only guarantee for "a smooth course of the country," adding that the Greek voter was "aware of this."

    Mr. Kaklamanis said the government had specific positions on Greece's national issues. He added, however, that those issues, especially the Cyprus problem, are expected to come under the limelight after US elections this November.

    [11] Constantopoulos claims Simitis attempting to blackmail leftist votes

    Athens, 10/09/1996 (ANA)

    Speaking at a press conference at the Zappeion Hall yesterday, Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos criticized Prime Minister Costas Simitis of attempting to exert psychological and sentimental pressure on leftists, aimed at snatching votes for his party.

    Mr. Constantopoulos, who appeared confident that Synaspismos will enter Parliament from the Sept. 22 election, criticized the way with which the two major parties treated several opinion polls publicized in recent days. He said both the ruling PASOK and the main opposition New Democracy party handled the issue outside established practice and illicitly, in order to create impressions and disorientate voters and entrench them within the confines of two-party politics.

    He said his party was neither over-optimistic nor concerned, adding that there was a positive political atmosphere for Synaspismos.

    In addition, Mr. Constantopoulos addressed a number of questions to the leaders of the two major parties, Costas Simitis and Miltiades Evert.

    He questioned whether the PASOK and ND leaders would promise to support tax reform after elections and whether they would publicize their positions on the state budget.

    Mr. Constantopoulos further asked them whether they would accept a reorganization of services and inter-party control on the allocation of funds contained in the Delors II package. He further pondered whether an armaments program would have repercussions on the economy and the convergence program in particular, asking where funds would be found to purchase new weapons systems.

    Mr. Constantopoulos further asked both major party leaders if they would commit themselves to transparency in awarding public works projects and state contracts in general, and to strengthening local administration and transferring powers from the capital to the provinces.

    He said his party aimed at influencing developments in a progressive direction and reiterated that there was no question of co-operation with the ruling PASOK party, regardless of whether or not it obtained a Parliamentary majority.

    Commenting on the election campaign so far, Mr. Constantopoulos said the most important factor was the failure of the two major parties to create a climate of polarization and dissent among Greek voters.

    [12] Two pre-election poll results released

    Athens, 10/09/1996 (ANA)

    Two nationwide opinion polls, conducted by the MRB and PRC firms in the first week of September, show the two major parties neck-and-neck in the electoral race.

    The MRB poll, conducted on behalf of the Mega television channel, puts New Democracy ahead with 31 per cent, compared to 30.6 per cent for the ruling PASOK party, and followed by 6 per cent for the Democratic Social Movement (DHKKI), the Communist Party of Greece (KKE) with 4.9 per cent, the Coalition of the Left (Synaspismos) 4.2 per cent and the Political Spring party with 3 per cent.

    The PRC poll, conducted on behalf of "TA NEA" newspaper, and whose first part was published yesterday, shows PASOK ahead with 32.8 per cent, compared with New Democracy's 31.9 per cent, and followed by Synaspismos with 5.3 per cent, DHKKI with 5.2 per cent and the Political Spring and KKE with 4.1 per cent each. A total of 9.2 per cent said they were undecided, would vote blank or spoil their vote.

    [13] Reactions

    Athens, 10/09/1996 (ANA)

    Asked to comment on the results of the two opinion polls, National Defense Minister Gerassimos Arsenis said they described a static situation prevailing at the moment, and their only message to parties was that they should go out and explain their positions and proposals to the people.

    Referring to former PASOK finance minister and DHKKI leader Dimitris Tsovolas' decision to follow a separate political course, he described it as sterile and a mistake. "He is not helping the unity of democratic forces," he said.

    Former New Democracy minister Dora Bakoyianni also commented on the results of the polls, saying her party appeared to have significant potential, and that Mr. Simitis' decision to call an early poll was proving to the detriment of his party.

    "I see a major effort on Mr. Simitis' part to rally his party's base. I would call it an agonizing effort. I sense that PASOK voters themselves have a very big skepticism," she said.

    Political Spring party leader Antonis Samaras dismissed the results of the polls.

    "We have been expecting it, but not to this extent. It is a shame and an affront to the Greeks and a threat to democracy, continuously growing," he said.

    KKE Secretary General Aleka Papariga refused to comment, and said that "the Greek people have to see the elections not like a race course betting office, but must choose on the basis of political criteria".

    Meanwhile, caretaker Press Minister Dimitris Konstas reiterated again yesterday the inter-party election committee's decision that radio and television stations were not allowed to broadcast opinion polls 10 days before the election.

    The ban did not apply to newspapers, he specified.

    [14] OAED allocates 20 per cent subsidy for Thracian businesses' payroll

    Athens, 10/09/1996 (ANA)

    The Organization for the Employment of Human Resources (OAED) has begun payment of a 20 per cent subsidy of labor cost for businesses in Thrace following the securing of three billion drachmas by the national economy ministry.

    The funding concerns hundreds of businesses in Thrace which receive grants of 20 per cent from OAED for each daily wage of their employees.

    Agriculture Under-secretary Apostolos Fotiades said the measure for the 20 per cent grant was judged as being imperative by the state in order to reinforce businesses in Thrace and to aid in the area's unemployment problem.

    [15] Transport minister denies report of floatation of OTE stock

    Athens, 10/09/1996 (ANA)

    Transport and Communications Minister Haris Kastanidis and Hellenic Telecommunications Organization (OTE) president D. Papoulias yesterday denied reports that the telecommunications utility is looking for a strategic investor or is considering a new flotation of shares in the Athens Stock Exchange.

    "OTE is not looking for a strategic investor, it is looking for a partner in the development of mobile telephone services in the Balkans," the minister said.

    Mr. Kastanidis attributed the legal entanglement and frequent allegations of irregularities concerning the provision of digital telephones by OTE's management to disputes between members of the judiciary, adding that the government had ready a draft law for securing transparency in OTE procurements.

    Mr. Papoulias announced that an international firm of consultants would be hired to re-examine issues pertaining to procurements, while Mr. Kastanidis described 1996 as a landmark year for the organization, specifying that planned revenues amounted to 7 00 million drachmas, and profits to 250 billion.

    He also announced that OTE' mobile telephone subsidiary would start operation on Sept. 25, forecasting that its first mobile telephone connection would be ready in the first months of 1997, and that the organization would possess 40 per cent of the Greek market by the year 2000. In addition, he described as especially satisfactory OTE's international ventures in the execution of large telecommunication projects in various countries.

    [16] Joint Greek, Cypriot business delegations to tour Balkan capitals

    Athens, 10/09/1996 (ANA)

    Representatives of Greek and Cypriot businesses will visit Balkan capitals within the framework of establishing joint ventures in the region.

    A large delegation of businessmen from Greece and Cyprus is expected to visit Albania first, the cultural attachi of the Cypriot Embassy in Athens, Andreas Nikolaou, announced yesterday during a press conference on Cyprus' participation in the Thessaloniki International Fair.

    Mr. Nikolaou spoke of the progress in the co-operation between Greece and Cyprus, and particularly of the consultant committee for economic issues which has been formed for Greek-Cypriot co-operation.

    He also spoke of the promotion of co-operation between Greek commercial banks, the Cypriot Development Bank and the European Bank for Development and Reorganization (EBDR), with the aim of founding financial organizations of a developmental nature in the Balkans.

    The Greek and Cypriot governments are also promoting co-operation between the two countries' construction companies for the undertaking of construction projects in the Balkans and the Middle East.

    Replying to a question, Mr. Nikolaou referred to self-rule Palestinian areas and Bosnia as areas of common interest for similar activities, while Cypriot Ambassador in Athens Haralambos Christoforou said the objective conditions for co-operation between the two countries in the business sector are more favorable now than ever.

    He added that what is now needed is "the creation of a strong Cypriot-Greek business network through which Hellenism's economic activity will be directed."

    The press conference stressed that the Cypriot economy's indicators satisfy all criteria set by the Maastricht Treaty as the budget deficit during 1995 amounted to 1 per cent (compared to 1.4 per cent in 1994 and 2.4 per cent in 1993), inflation was limited to 2.6 per cent and public debt stood at 53.5 per cent of GDP.

    Commercial relations between the two countries rose during 1995, with the greatest increase being the 19 per cent rise in exports of Greek products to Cyprus, while Cypriot exports to Greece rose by 6.3 per cent.

    During 1995, Greek exports to Cyprus amounted to 61.3 billion drachmas in comparison to 49.6 billion drachmas in 1994, while exports of Cypriot products amounted to 6.8 billion drachmas, up from 5.3 billion drachmas in 1994.

    [17] Papoutsis. Greece's efforts for convergence must continue

    Athens, 10/09/1996 (ANA)

    Despite significant progress, the Greek economy's divergence from the performance of other European Union countries continues to be great which means that Greece will not be able to participate in the third phase of Economic and Monetary Union before the year 2000, Greek EU Commissioner for SMEs, tourism and energy, Christos Papoutsis, said in Thessaloniki yesterday.

    Speaking at an event organized by the European Commission's office in Greece and the Federation of Northern Greek Exporters, Mr. Papoutsis said that economic developments show that Greece has undertaken a serious effort to achieve the aims of the convergence program.

    "These efforts must continue as must, at the same time, the absorption of (EU) funds and their use in a truly developmental direction," he said.

    Referring to the new single currency, "Euro", he said the aim to establish the Euro by Jan. 1, 1999, still stood since international markets are directed towards this date despite the fact that there are rumors that the beginning of the third phase of EMU may be postponed, on the basis that Europe's recovery is weak and that it has not achieved the needed convergence.

    The commissioner noted that the issuing of Euro coins and bills would begin in 1998, as soon as it was clear which countries would participate in the final phase of EMU in 1999. The Euro will be in circulation, in place of national currencies, by July 1, 2002.

    With the establishment of the Euro, Mr. Papoutsis continued, "trade will be easier while competition with foreign enterprises will become more intense. Banks, companies and consumers will have to familiarize themselves with the challenge of the single currency and proceed without delay to the needed adjustments."

    With the establishment of the Euro, currency and exchange policies will be shaped at a European level, and as such "we cannot expect to use the national exchange policy as a means of improving the competitiveness of companies," he said.

    He stressed that the cost of adjusting to the new situation being shaped "is not negligible, but the expected advantages will be much greater".

    He called on Greek firms "to win the wager of adjustment to the course of the integration of Europe", saying that the possibilities for their development were particularly to be found in the exploitation of the advantages in expanding to the Balkans and Black Sea countries.

    [18] Pumping started from North Prinos 2 site

    Athens, 10/09/1996 (ANA)

    Regular pumping of crude oil from the North Prinos 2 deposit began at the site yesterday.

    Development Minister Vasso Papandreou officially opened a valve channeling the crude oil through special pipes to tanks in the Nea Karvali region, in the presence of senior members of the Hydrocarbons Exploration and Exploitation S.A. (DEP-EKY) and the contractor, the North Aegean Petroleum Co.

    Daily yield amounts to 13,000-13,500 barrels, while implementation of a petroleum utilization program has been secured for NAPC employees, totaling 400 people on the island of Thasos and Kavala.

    End of English language section.

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