Athens News Agency: Daily News Bulletin in English, 97-02-26

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

ATHENS NEWS AGENCY BULLETIN (No 1125), February 26, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[01] Athens, Nicosia regret cancellation of EU-Cyprus structured dialogue meeting

[02] Reppas

[03] Opposition reaction

[04] Reactions in Cyprus

[05] Kranidiotis meets with Britain's envoy for Cyprus problem

[06] Michaelides, Van den Broek discuss Cyprus' EU accession

[07] Kyprianou criticizes EU stance on Cyprus accession talks

[08] Rifkind says solution to Cyprus problem a condition for EU accession

[09] Turkish foreign under-secretary: 'No borders in Aegean'

[10] Simitis meets with PASOK ministers

[11] G. Papandreou submits Greece's initiative on EU aid toward the Balkans

[12] Greece, Lithuania agree to strengthen bilateral ties

[13] Invitation to invest

[14] Internal ND posturing continues in view of March's congress

[15] Costas Karamanlis

[16] Mitsotakis says national consensus needed to solve foreign policy problems

[17] Civil servant strike yesterday

[18] Protesting fishermen block Thessaloniki port

[19] Low interest rates signals changes for Greek economy

[20] Athens bourse continues its record-breaking run

[21] IOBE study on construction sector notes high growth, decrease in tender prices

[22] Mount Athos community reacts against Schengen Accord

[23] Apostolakis in S. Africa for talks on joint projects

[24] 'Mad cow'-related reports in Greece denied

[25] Turkish immigrant smugglers receive jail sentence

[01] Athens, Nicosia regret cancellation of EU-Cyprus structured dialogue meeting

Brussels, 26/02/1997 (ANA - M. Spinthourakis)

"It is regrettable that eventually the political dialogue between the European Union and Cyprus did not take place due to a lack of a common position, but there was no other option," Alternate Foreign Minister George Papandreou and Cypriot Foreign Minister Alecos Michaelides told reporters in a joint press conference.

Athens on Monday stood its ground in the face of strong pressure from Germany, Britain and France during an EU General Affairs Council meeting in Brussels, which aimed to overcome objections to the involvement of the Turkish Cypriots in the island republic's accession negotiations. Mr. Papandreou did not accept compromise proposals by the Dutch presidency and the all-day session ended in a stalemate. As a result, yesterday's meeting between EU and Cyprus, within the framework of the structured dialogue was canceled, while a meeting of the EU-Cyprus Association Council went ahead as planned.

On his part, Mr. Michaelides said that both Greece and Cyprus agreed that it was preferable, under the present circumstances, for the structured dialogue to be postponed, and for the Association Council to deal only with the economic and trade aspects of EU- Cyprus relations.

Meanwhile, EU External Affairs Commissioner Hans Van den Broek, who is arriving on Cyprus today, indirectly indicated after the end of the Association Council session that Cyprus' full membership is not feasible if the political problem is not solved beforehand. Other Community diplomats were saying they "could not imagine a country on whose soil there were 30,000 Turkish soldiers joining the European Union".

However, Dutch European Affairs Minister Michiel Patijn said the "EU certainly recognizes only the legitimate government of Cyprus, with which it will continue pre-accession negotiations".

He added, nevertheless, that Cyprus' accession would be politically and physically impossible without at least some progress between the island's Greek and Turkish communities towards a settlement to the protracted Cyprus problem.

[02] Reppas

Athens, 26/02/1997 (ANA)

"This effort by EU partners constitutes a new policy element which Greece rejects," he said. Athens is sticking to the fundamental agreement concerning Cyprus' accession which cannot be conditional on the Turkish Cypriots and even more so on Turkey "which is linking Cyprus' accession with its own membership", he added.

Mr. Reppas underlined that EU policy on Cyprus' accession was clearly set out in the decision of March 6, 1995, by virtue of which the Community reconfirmed Cyprus' suitability to become a member and its will that the island republic should join during the next stage of enlargement.

In view of Monday's developments, the spokesman added, EU enlargement eastwards would become more difficult, since Greece intended to impede the process for as long as its EU partners insisted on the stance expressed in Brussels on Monday.

Mr. Reppas said that the stance of its EU partners in effect also exerted pressure on Greece in view of the undertaking of initiatives for a settlement of the Cyprus problem "as well as the desire of certain parties for the commencement of dialogue between Greece and Turkey."

"What is important, however, is that the pressure is being effectively dealt with," Mr. Reppas said. Asked to comment on statements by British Foreign Secretary Malcolm Rifkind, who expressed the view that a settlement of the Cyprus problem was a condition for its accession, Mr. Reppas said the two issues were entirely separate.

On the other hand, he expressed the hope that the Cyprus problem would be resolved before the island republic's accession to the EU, "which in Greece's opinion should take place in accordance with the agreed time framework".

[03] Opposition reaction

Athens, 26/02/1997 (ANA)

In the announcement, Synaspismos maintains that negotiations for Cyprus' accession to the European Union should proceed and used for the promotion of a just and vital solution to the Cyprus issue.

In the announcement, Synaspismos also criticized the government for what it called its weakness to "plan and implement a whole and balanced national strategy that faces with insight... emerging problems."

Democratic Social Movement leader (DHKKI) leader Dimitris Tsovolas called on the government to make it clear that Greece would block all processes serving the interests of major European powers, as well enlargement eastwards.

Political Spring leader Antonis Samaras also strongly reacted against Germany's and Britain's stance in the General Affairs Council meeting on Monday.

"The pro-Turkish 'coup' against Cyprus should be dealt with as a most serious provocation against Greece, by the entire political leadership," Mr. Samaras said.

[04] Reactions in Cyprus

Nicosia, 26/02/1997 (ANA)

He said the proposed text could have multiple interpretations, some of which were contrary to the EU decision of March 6, 1995, providing for Cyprus' membership negotiations to begin six months after the end of the Intergovernmental Conference.

Mr. Cassoulides also noted that it could complicate Cyprus accession process and make efforts for a Cyprus solution more difficult, adding it could complicate EU enlargement as well.

[05] Kranidiotis meets with Britain's envoy for Cyprus problem

Athens, 26/02/1997 (ANA)

The British proposals is based on a 10-point list drawn up last December by British Foreign Secretary Malcolm Rifkind.

Both men declined to make any statements after the two-hour meeting.

[06] Michaelides, Van den Broek discuss Cyprus' EU accession

Nicosia, 26/02/1997 (ANA/CNA)

During the meeting, Mr. Michaelides reaffirmed that Nicosia is making every possible effort to break the present deadlock in efforts to reach a solution to the Cyprus problem, for which, he noted, the Turkish side is to blame.

The foreign minister pointed out that every serious effort undertaken to restart negotiations fails, as a result of the Turkish side's intransigence.

He also called on the EU to intensify efforts towards Ankara so that it changes its negative stance.

On his part, Mr. van den Broek reiterated that Cyprus-EU accession talks will begin six months after the end of the Intergovernmental Conference, as decided on March 6, 1995.

He added that in view of these talks, intensive efforts must be made in 1997 so that progress is made on the Cyprus issue and negotiations between the two sides begin.

The EU Commissioner arrives in Cyprus today on a three-day official visit for talks with both sides.

Government spokesman Yiannakis Cassoulides described Mr. van den Broek's visit as "particularly important" and said it will offer the opportunity to review Cyprus' progress towards EU accession and the results of the structured dialogue.

Mr. Cassoulides said they will also exchange views on how best to implement the March 6 decision, especially as regards informing Turkish Cypriots of the benefits they will have from Cyprus' EU accession.

He pointed out that the visit will prompt the EU to show how it will aid efforts for a solution to the Cyprus problem.

In Brussels, a spokesman for the EU Commissioner underlined that Mr. van den Broek's visit will aim to prepare the way for accession and to search for a solution to the island's problem, within the spirit of UN resolutions and efforts.

[07] Kyprianou criticizes EU stance on Cyprus accession talks

Athens, 26/02/1997 (ANA)

"We have expressed our opposition to the blackmail regarding the involvement of Turkish Cypriots in Cyprus' EU accession negotiations," Mr. Skandalidis said after meeting in Athens with the former Cypriot president and current president of the island re public's parliament.

Mr. Skandalidis also said that co-operation between PASOK and the Democratic Party (DHKO), Mr. Kyprianou's party, will be closer, more systematic and more frequent. Mr. Kyprianou described as "unacceptable" the efforts by the three EU partners to involve Turkish Cypriots in Cyprus' EU accession negotiations.

He did not rule out the possibility that these efforts were part of Britain's initiative for direct talks to work out a solution to the issue.

"In this way, Turkey is encouraged to maintain its intransigent and unacceptable stance," Mr. Kyprianou said, adding that "the Cyprus issue cannot be solved neither with pressure nor with blackmail."

Speaking in Turkey on Monday, British coordinator for the Cyprus issue, Sir David Hannay, said he expected a direct resumption of talks in the first half of 1997.

Mr. Kyprianou noted that solution to the Cyprus issue will come only after Turkey is pressured by the United States and the European Union to change its stance and abandon its expansionist designs.

Mr. Kyprianou also said co-operation between PASOK and DHKO will be reinforced, expressing hope that this co-operation will yield results and will be useful for "common goals and the national issues."

Mr. Kyprianou, who kicked off an official visit to Athens yesterday, also held a meeting with Prime Minister Costas Simitis.

[08] Rifkind says solution to Cyprus problem a condition for EU accession

Athens, 26/02/1997 (ANA)

"Accession of a partitioned island would create considerable problems to the European Union and this is a course that neither we nor our EU partners are willing to follow," Mr. Rifkind was quoted as saying in an interview with the Athens daily "Ta Nea."

In the interview, which was published in yesterday's edition of the newspaper, Mr. Rifkind said Cyprus had the right to purchase Russian-made S-300 anti-aircraft missiles, but expressed the view that "this purchase would be imprudent in view of the existing conditions."

Cyprus has recently signed a multi-million dollar deal for the purchase of the surface-to-air missiles, expected to be deployed on the island in about 16 months.

Mr. Rifkind also said that a British-proposed 10 point action plan -a three-page document focusing on a settlement based on a bi-zonal, bi-communal federation - for the working out of a solution to the Cyprus problem constituted the best basis for making progress.

He further stressed Britain's active involvement in the "preparatory period of consultations" through the current mission of British envoy Sir David Hannay to Nicosia, Athens and Ankara.

Sir David said on Monday in Turkey that he expected a resumption of talks for the working out of a solution to the Cyprus issue to begin in the first half of 1997.

Commenting on his recent statements concerning the risk of war between Greece and Turkey, Mr. Rifkind clarified that he was referring to Greek-Turkish differences in the Aegean and not the Cyprus issue.

In a BBC interview earlier this month, Mr. Rifkind said that a military confrontation between Greece and Turkey was possible. The statement prompted strong reactions from Athens.

Seeking to set the record straight, Britain at the time announced that Mr. Rifkind's statements had been incorrectly interpreted, stressing that the British secretary's remarks were made in the specific context of tensions in the Aegean.

Concluding, Mr. Rifkind noted that Turkey's accession to the EU would also be to the benefit of Greece.

He said, however, that Ankara should meet the same strict accession criteria that apply for other countries.

[09] Turkish foreign under-secretary: 'No borders in Aegean'

Athens, 26/02/1997 (ANA)

Mr. Oymen said Ankara was prepared to discuss the issue with Greece "on the basis of interpretation of current international agreements," he said, adding: "Greece has since 1950 proposed negotiations to Turkey on the signing of a convention on sea borders."

Asked about the Imia islet issue, the Turkish under-secretary said that "the problems in the Aegean are interrelated" and that he did not believe "that the Greek government was prepared to take these problems to The Hague".

[10] Simitis meets with PASOK ministers

Athens, 26/02/1997 (ANA)

[11] G. Papandreou submits Greece's initiative on EU aid toward the Balkans

Brussels, 26/02/1997 (ANA - G. Daratos)

Mr. Papandreou told his EU counterparts that "the recent phenomena of acute crisis in the economies of certain Balkan countries in transition are causing serious concern in Greece... I am certain that you share our concern.

"The Balkans should not be left, at this crucial time, at the mercy of an uncontrolled economic crisis, which, as is seen in the cases of Bulgaria and Albania, can easily be converted into a very acute social crisis with direct destabilizing effects," Mr. Papandreou said.

"I believe that on our side, we will have to proceed with the provision of immediate humanitarian aid where the need for such arises, and of technical support and macro-economic aid, where the conditions of the European Union and of international organizations are being met."

He added that "the financial aid decided on for Bulgaria, amounting to 20 MECU, must be sent as soon as possible, as all delays will render it ineffective." Mr. Papandreou visited Bulgaria last week.

[12] Greece, Lithuania agree to strengthen bilateral ties

Athens, 26/02/1997 (ANA)

Mr. Brazauskas said the help of the Greek Parliament would be useful, since the Lithuanian Parliament had only six years of experience. The Lithuanian president, accompanied by Lithuanian Foreign Minister Algirdas Saudargas, arrived in Athens for a two- day official visit on Monday.

Meanwhile, the mayors of Piraeus and Vilnius, Stelios Logothetis and Algirdas Tsoutselis, respectively, signed a sister-city agreement in Piraeus yesterday morning.

[13] Invitation to invest

Athens, 26/02/1997 (ANA)

"Lithuania's advantageous position, the improvement of all the country's economic indicators and its relations of close friendship with all the neighboring countries constitute strong incentives for the development of investment initiatives by Greek businessmen," he said.

Mr. Brazauskas also referred to the privatization program currently under way in Lithuania, particularly in the sectors of communications, transport, services and construction. He also pointed out investment opportunities in Lithuania's growing tourism market, suggesting that Greek companies in the sector could develop co-operation in areas such as providing equipment and organizing hotel complexes.

Mr. Brazauskas also held a meeting with Transport and Communications Minister Haris Kastanidis. Lithuanian Informatics Minister Rimadav Pleikish also participated in the meeting.

In the meeting, Mr. Kastanidis requested permission for Greece's Telecommunications Organization (OTE) to participate in the privatization procedure of the Lithuanian Telecommunications Organization. The two ministers also discussed co-operation issues in the radio sector.

Mr. Brazauskas also held a meeting with Athens Mayor Dimitris Avramopoulos. "We believe in economic co-operation," Mr. Avramopoulos said, adding that "commercial transactions will contribute in the best possible way to the consolidation and reinforcement of ties between our states."

[14] Internal ND posturing continues in view of March's congress

Athens, 26/02/1997 (ANA)

He made the comment in an interview with the monthly magazine "Nitro".

Mr. Evert also issued a warning towards ND's honorary leader Constantine Mitsotakis, saying that "I do not believe that Mr. Mitsotakis will say anything like this (doubting) any more, because his is very intelligent and will understand that ND cannot take such a procedure. If, and I am speaking hypothetically, he does do it, I can say that yes, he will have no place in New Democracy."

The main opposition leader said that he will co-operate with all members if he is re-elected to the party leadership, saying that "the president will have to forget if certain people go against him and he must see them all in the same way."

Mr. Evert added that if he is not re-elected, "I am obliged to serve the new leader because I will never leave politics. Neither as a thought, nor as a resignation from (the post of) deputy. I had said this only regarding the FYROM issue. I will stay with the new leader regardless of who he is and I will serve. And I expect the same from others. Otherwise, we should not hold a congress if we are expecting something different."

[15] Costas Karamanlis

Athens, 26/02/1997 (ANA)

ND deputies and party members who are supporting him have said there is no possibility of Mr. Karamanlis not submitting his candidacy, while some have even expressed the possibility of him winning from the first round of voting.

According to reports, Mr. Karamanlis met with former Athens mayor Leonidas Kouris, who asked for an agreement with Mr. Evert that the two would not both submit candidacies for the leadership.

ND deputy and former minister George Souflias, who is also to stand for ND's presidency, said he is not worried by the candidacies of Mr. Evert and Mr. Karamanlis. The former minister will present his proposals on the party's charter today.

In a related development, the director of the party's political bureau, Mr. Balios, met with party members in Lamia yesterday, in an effort to restrict what he called "leaks" from an organization which has, up until now, fully supported Mr. Evert's decisions.

The move came one day after Mr. Evert announced his candidacy and while 16 ND members in Fthiotida prefecture, including members of the prefectural committee, who have increased influence on the party, have announced their support for Costas Karamanlis, while the majority of local ND members said they will support Mr. Souflias.

Mr. Balios also met with members of DAKE, the party's union-affiliated body, and members of the Fthiotida self-administration and social bodies.

Many party members are now calling for the prefectural committee to meet and to condemn the meetings as illegal.

[16] Mitsotakis says national consensus needed to solve foreign policy problems

Athens, 26/02/1997 (ANA)

Mr. Mitsotakis made the observation in an opinion piece published in yesterday's edition of the Athens daily "Ethnos."

He warned that "international weakening (of Greece's position), lack of political courage on the part of the government, as well as unpleasant developments in the neighboring Turkey, result to our facing for the first time since the Second World War a real danger for a Greek-Turkish war..."

In the article, Mr. Mitsotakis defends his policy between 1990-1993 (during which he served as prime minister) especially in Greece's relations with the Balkan countries, adding that "both the United States and the European Union had recognized the leading role of our country in the region."

Acknowledging the fact that the FYROM issue had undermined his government's foreign policy strategy, Mr. Mitsotakis noted that "the council of political leaders' decision (on FYROM in 1992) prolonged the pending issue."

Concluding, Mr. Mitsotakis criticized the PASOK government for "grave mistakes" in the handling of the issue, adding that coupled with "delays in economic restructuring and wrong handling in Greek-Turkish relations it (PASOK) has seriously worsened the country's international position."

[17] Civil servant strike yesterday

Athens, 26/02/1997 (ANA)

ADEDY President Yiannis Koutsoukos described the salary scale as being "unacceptable" and called on the government to withdraw it, warning that otherwise, mobilizations will be intensified and "are expected to pass from ADEDY to the hands of sector federations."

A petition was handed to Finance Under-secretary Nikos Christodoulakis by representatives of the striking civil servants. Mr. Christodoulakis said the issue has now passed into the sphere of Parliament's responsibilities.

Mr. Koutsoukos estimated that no significant changes will be made in the legislation after yesterday's meeting, and called on civil servants to continue their mobilizations.

[18] Protesting fishermen block Thessaloniki port

Athens, 26/02/1997 (ANA)

A delegation of the protesting fishermen met with Macedonia-Thrace Minister Philippos Petsalnikos yesterday afternoon, who arranged a telephone communication with Finance Under-secretary George Drys.

Mr. Drys reiterated that the system of tax-free transit fuel has not been abolished by the ministry, and that they could continue to purchase fuel, paying a special consumer's tax which will be returned by customs following a procedure to be determined by the finance ministry.

He added that the time lag between the purchase of the fuel and the return of the tax would not exceed 30 days.

[19] Low interest rates signals changes for Greek economy

Athens, 26/02/1997 (ANA)

For depositors, the decrease means a lower net return on capital, at 9 per cent, which, after the deduction of the inflation rate, comes down to a real return of around 2 per cent. It is considered that such rates of return, comparatively low for Greece, will induce banks to differentiate the range of their saving products, with deposit rates varying according to sum and duration. Also, the closing of the gap between rates for deposits in drachmas and foreign currencies is considered likely to induce monetary authorities t o lift restrictions on the opening of accounts in foreign currencies by Greek residents.

The downward trend is also estimated to lead to cheaper consumer and housing loans, thereby contributing to a recovery of the economy through the real estate and building sectors.

The development will also mean a lower cost of borrowing for businesses and a consequent boost in the competitiveness of Greek firms.

Finally, the beneficial effects of lower interest rates have already been apparent in the stock market, which has enjoyed a boom for the last two months. Company dividends have reached the level of the net return of a savings account.

[20] Athens bourse continues its record-breaking run

Athens, 26/02/1997 (ANA)

Turnover totaled 33 billion drachmas, led by investor interest in construction (+5.34%) and banks (+5.06%).

The general price index began to edge towards the 1,400 mark yesterday, closing at 1,366.92 points (+2.55%), after reaching the 1,300-mark on Thursday last week, the first time in six years.

Turnover yesterday set a new record of 34.7 billion drachmas.

Profits on the bourse have increased by 50.86 percent since the beginning of the year and the significant capital inflows are attributed mainly to the fall in interest rates, which has made stocks more attractive than state titles and bank deposits.

More than 600 billion drachmas has been transacted on the bourse since the beginning of the year.

[21] IOBE study on construction sector notes high growth, decrease in tender prices

Athens, 26/02/1997 (ANA)

The particularly high growth rates of the sector in recent years are mainly attributable to increased construction activity related to infrastructure projects under the two Community Support Frameworks (CSF) of the European Union, and less to the building sector as such, whose volume of activity has been in continuous decline. The study describes the second CSF as the engine of the Greek construction industry at present.

The sector employs about 7 per cent of the workforce and contributes to Gross Domestic Product (GDP) at a rate varying from 10.8 to 15.2 per cent in the last decade.

On the other hand, intensification of competition has led many large companies to the Athens Stock Exchange in the last three years in the search for capital funds, thereby creating new dynamics in the sector.

The prospect of a shrinkage in activity after the end of the second CSF in the year 2000 has led many large companies to seek contracts abroad, the study points out.

Finally, the self-financing of projects by companies in return for obtaining concessions for specific periods of time is the method with the highest growth currently, the study states.

[22] Mount Athos community reacts against Schengen Accord

Athens, 26/02/1997 (ANA)

The monastic community cited "protection of individuals from the use of personal data" as the main reason for eliminating the proposed bill.

An announcement issued by the monastic community's supreme administrative board said the voting of such a bill "creates the danger of an institutionalized and general electronic filing (system) with all the negative consequences for the human individual's God-given freedom and his savior through Christ."

"In practice, it unfortunately appears to legalize the electronic storing, use and distribution of personal information," the Mount Athos community stated.

The monks warned that "the possible voting of (the bill) by the Greek Parliament will constitute the last step for the ratification of the Schengen Accord and the permanent loss of personal confidentiality and the respect of our freedom."

[23] Apostolakis in S. Africa for talks on joint projects

Athens, 26/02/1997 (ANA)

During his stay, Mr. Apostolakis will meet with South Africa's Alternate Defense Minister Ronald Kasrils and sign a co-operation protocol concerning the sector of defense equipment and technology.

Informed sources said that in addition to issues of general interest, the two officials will discuss the possibilities of joint production of an attack helicopter.

Apart from Greek and Cypriot interest, Britain has reportedly ordered 99 helicopters.

According to the same sources, Mr. Apostolakis and Mr. Kasrils may also discuss the construction in Greece of three MEKO-200 class frigates for the South African navy.

Mr. Apostolakis is being accompanied on his visit by representatives of Greek defense industries.

[24] 'Mad cow'-related reports in Greece denied

Athens, 26/02/1997 (ANA)

He added that Creutzfeldt-Jakob's Disease has been known since 1927 and is not connected epidemiologically with BSE.

Mr. Geranidis also stressed that occasional isolated incidents of CJD in people of middle or old age in Greece are not caused by BSE as there has been no hint of a BSE outbreak in the country and no live animals are imported from countries with high instances of the disease, while the results of clinical, epidemiological and histological investigations over the past 12 years have all been negative.

Meanwhile, the director of the AHEPA Hospital in Thessaloniki, Marios Pyrpasopoulos, said no patients with CJD have been hospitalized in AHEPA's neurological clinic, and refuted a report in a daily newspaper yesterday.

[25] Turkish immigrant smugglers receive jail sentence

Athens, 26/02/1997 (ANA)

The illegal immigrants -citizens of Rwanda, Iraq and Bangladesh- are being held by police, with the exception of the three women and a child who have been taken to hospital suffering from breathing difficulties. In a separate incident early yesterday morning, 33 Iraqi Kurds, including nine women and children, were apprehended near Karlovasi on the island of Samos, for illegally entering the country.

Meanwhile, authorities said 250 Albanian illegal immigrants have been arrested in Epirus over the last 24 hours. All have been deported.

On Tuesday night a truck carrying 81 Albanians was stopped by police, but the driver managed to escape with the 4,800,000 drachmas paid to him by the illegal immigrants to transport them into Greece.

End of English language section

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