Athens News Agency: Daily News Bulletin in English, 97-04-05

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

ATHENS NEWS AGENCY BULLETIN (No. 1156), April 5, 1997

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

CONTENTS

[01] Simitis calls for comprehensive action plan for Balkans

[02] Nano, Pirinski

[03] Scharping, Green

[04] Press conference

[05] Inflation drops to 6.0 per cent in March

[06] Tourism show opens next week

[07] Greece proposes Vranitzky to head Albanian restoration efforts

[08] Multinational force could land by April 14

[09] Fino comments

[10] Violence continues

[11] Apostolakis to head WEU delegation's US visit

[12] Second IOC member arrives in Athens

[13] Gov't emphasizes social nature of EU in IGC deliberations

[14] Unions, social groups prepare for IGC

[15] Conclave meeting

[16] Sioufas appointed ND parliamentary representative

[17] Imia of enormous national importance, Gov't emphasizes

[18] New Democracy

[19] Turkish parliament president due in Athens today

[20] Greek, Turkish self-administration officials meet in Cesme

[21] Pangalos interview to Swiss paper

[22] Five-nation Pangalos tour

[23] Interior minister tours eastern Macedonia, Thrace

[24] National Bank payments linked to consumer loans increase considerably

[25] Prosegisis programme to be presented next week

[26] GSEE unveils rare photos of pre-war labour movement

[27] Gov't decides on second OTE share offer

[28] IOBE study says reduction in work hours doesn't increase employment

[01] Simitis calls for comprehensive action plan for Balkans

Athens, 5/4/1997 (ANA)

The premier made the statement at the opening of a two-day conference of the European Socialist Party (ESP) covering the Balkans.

"The first priority is the provision of emergency aid so as to achieve economic stabilization and consolidate the hopeful political solutions, which are already on course," he said.

He reiterated that the European Union does not yet have a comprehensive policy which will effectively support Balkan countries during this fluid period of transition to the free market economy, calling on EU countries to assume their responsibilities.

"There is a danger of a deadlocked course towards a generalized crisis," he warned, pointing out that there are already "hot spots" of crisis, such as in Kosovo and in the Tetovo region of FYROM.

"The solution does not lie in ships that sink other ships," he stressed, in obvious reference to the policy of using force to prevent the outflow of refugees from Albania, "but in how we shall prevent the hunger that is threatening countries of the Balkan s, such as Bulgaria".

He asked ESP to promote an all-round policy for eastern Europe, given that particular measures are not by themselves sufficient, and called for the mobilization and intervention of other international organizations, such as NATO, the Western European UN ion, OSCE, as well as the governments of all countries that directly or indirectly influence developments in Europe. Addressing Greece's EU partners, he stressed the need for equal treatment of the countries of central and eastern Europe regarding their common goal for membership in the 15-member Union and NATO.

Referring to the EU response to the current crisis in Albania, Mr. Simitis said it was correct but not sufficient.

"What is necessary is the prevalence of another perception of 'medium-to-longterm' dealing with the problems," he said.

Analyzing the need for special mobilization and action in the Balkans, he referred to the problems of development and infrastructure that existed before, and resulted in dampening the initial force of reforms.

"The provision of technical aid for the consolidation of institutions in the domains of justice, separation of powers and elections is as important as the provision of economic aid by all the countries of the EU, as no single country can shoulder that burden by itself," he said.

[02] Nano, Pirinski

Athens, 05/04/1997 (ANA)

Discussion centered on the situation in Albania, prospects for its resolution and Greece's stand.

Speaking at the conference, Mr. Nano described the Balkans as Europe's soft underbelly, and stressed his party's stand would remain a moderate one, and that Albania needed multiform aid and support. He asked for the help of European Socialists in ensuring that planned elections in his country in June will be fair and honest.

On its part, the ESP group in the European Parliament invited Mr. Nano to visit Strasbourg during the plenum of next week, for a briefing on the Albanian crisis.

Former Bulgarian foreign minister George Pirinski, who also spoke at the conference, said the situation in the Balkans was sending out an urgent signal, and agreed with Mr. Tsohatzopoulos' proposal for the establishment of a Balkan security council.

[03] Scharping, Green

Athens, 05/04/1997 (ANA)

The president of the Socialist Group in the European Parliament, Pauline Green, added that the disputing of Greece's sovereign rights by Turkey constituted a threat to the borders of the EU.

"We must consider how we define the borders of the EU," she said, and wondered how the Union would react if the situation in Russia deteriorated in the coming years, leading to a climate of instability and insecurity whereby that country began posing a threat to the borders of Finland.

She said priority should be given to Greece regarding problems in the Balkans, as no other country in the EU had "the age-old experience of Greece" in the region, and consequently, the ability to best understand its political, cultural and other peculiarities.

Ms. Green called on the other EU member-states to take seriously into account the fact that Greece was the only EU member with borders only in the Balkans.

[04] Press conference

Athens, 05/04/1997 (ANA)

ESP President Scharping said that dialogue among the political forces of the Balkans could play a decisive role in developments in the region "since the ultimate objective must be the political resolution of problems, because otherwise we will have an outbreak of conflict". In this respect, he added, the fact that representatives of socialist parties from countries of the Balkans would be participating in the ESP conference for the first time was of particular significance.

In a similar vein, Mr. Tsohatzopoulos said that the ESP would at its upcoming conference in Sweden submit a collective proposal on security, which would include the Balkans.

Asked by reporters about EU enlargement, Mr. Scharping said the ESP believed that those countries wishing to participate in enlargement should be allowed to do so, following necessary negotiations.

He added, however, that in the case of certain states, such as the Balkan countries which have particular problems, efforts were being made to establish co-operation on a third level - "that of regional co-operation" - which will open the path to the Union .

Replying to another question on the issue of Turkey's accession to the EU, Mr. Scharping replied that the matter would be discussed during the coming years and expressed concern about domestic developments in Turkey since "the trend (towards) total accession may lead to great difficulties".

"If Turkey wants to remain a state supported by western-style democracy and wishes to continue to be of a secular nature, then it must accept very cordial observations from NATO and the EU regarding its very good democratic tradition, which is now, however, in jeopardy," Mr. Scharping said.

[05] Inflation drops to 6.0 per cent in March

Athens, 5/4/1997 (ANA)

The latest drop in inflation was greater than the expectations of the government which had hoped for an annual rate of 6.2 per cent at the most.

According to National Statistics Service (ESYE) data released by Mr. Papantoniou, the sharp drop was due to the fact that the Consumer Price Index (CPI) in March rose by only 2.2 per cent, compared to 2.7 per cent in the same month of 1996. The 2.2 per cent rise was the result of price increases of clothing and footwear, durable goods, household items and services, hotel, coffee shop and restaurant services, transport -- mainly due to increases in petrol prices, alcoholic beverages and cigarettes and foodstuffs.

Mr. Papantoniou said that the government's target of 4.5 per cent inflation in 1997 - three percentage points lower than inflation last year - had been half-achieved in the first quarter of the year.

Forecasting further reductions in the coming months, Mr. Papantoniou said the rapid drop in inflation reflected the effectiveness of the government's economic policy.

[06] Tourism show opens next week

Athens, 5/4/1997 (ANA)

Over 400 exhibitors from all over Greece, including hotels, local government and travel agents will be participating in the fair, which runs until April 13. This year's theme is the Aegean, which is to be celebrated in a multimedia show.

[07] Greece proposes Vranitzky to head Albanian restoration efforts

Athens, 5/4/1997 (ANA)

Speaking to reporters after the cabinet meeting, government spokesman Dimitris Reppas referred also to proposals put forth by Greece during ongoing consultations in Rome concerning the multinational protection force (COMANDFOR) to be sent to Albania.

"We proposed that Mr. Vranitzky be placed as head of the effort for the restoration of order and the dispatch of humanitarian aid to Albania, and that a representative of the Dutch (EU) presidency be placed under Mr. Vranitzky," Mr. Reppas said.

The spokesman added that Athens had proposed that these two officials should be supported by groups of specialists in military, economic and institutional issues.

"These proposals were accepted by all sides," Mr. Reppas said.

Meanwhile, the health ministry said yesterday that it was prepared to offer medical services to Albania, but that it could only do so if a request from Tirana was forthcoming.

"The health ministry cannot offer health services to Albania unless its government asks for them," Health Under-secretary Manolis Skoulakis told Parliament in response to main opposition New Democracy deputy George Sourlas' suggestion for the formation of Greek medical units to be sent to Albania.

[08] Multinational force could land by April 14

Rome, 5/4/1997 (ANA/L. Hatzikyriakos)

The meeting, held at the Italian foreign ministry, was attended by diplomats from Italy, France, Spain, Greece, Austria, Turkey, Romania and Denmark.

[09] Fino comments

Gjirokaster, 5/4/1997 (ANA/P. Barkas)

At the end of his official visit to Greece, Mr. Fino held a private meeting with Vassilis Bornovas, Greece's consul in Gjirokaster when Mr. Fino was mayor.

[10] Violence continues

Athens, 5/4/1997 (ANA)

Gunmen also tried to destroy the city's telecommunications center but were prevented by local residents and police.

The acts are believed to have been politically motivated as they came immediately after an announcement by the Vlore "National Salvation Committee" expressing satisfaction with a recent meeting between Italian Prime Minister Romano Prodi and his Albania n counterpart Mr. Fino.

However, the committee reiterated that it was not abandoning its demand that Albanian President Berisha resign.

[11] Apostolakis to head WEU delegation's US visit

Athens, 5/4/1997 (ANA)

The delegation will visit the United States in the framework of cross-Atlantic WEU contacts, with the delegation to meet the UN's alternate secretary-general responsible for peace mission issues, politicians and media representatives. Greece holds the Transatlantic Forum's presidency from July 1, 1996 to June 30, 1997.

Mr. Apostolakis will also meet Archbishop of Spyridon, in addition to addressing a gathering of Greek expatriates.

[12] Second IOC member arrives in Athens

Athens, 5/4/1997 (ANA)

Mr. Khouri is arriving tomorrow and will stay until Friday, during which time he will be briefed on Athens' candidacy, while he will also symbolically participate in various events. The most prominent of them will be the planting of a second tree in the specially designated "IOC members' olive grove".

Branches from the olive trees will be used to crown Olympic champions if the city wins the 2004 nomination.

[13] Gov't emphasizes social nature of EU in IGC deliberations

Athens, 5/4/1997 (ANA)

The government, Mr. Reppas added, had certain reservations about "flexibility" with respect to decisions by EU bodies, a concept supported by the more powerful countries of the Union, favouring instead the principle of unanimity and institutional equality and balance between member-states.

Mr. Reppas said that Greece was interested in the strengthening of the EU's common foreign policy and described as successful Athens' efforts for the acceptance by its Community partners of the notion of guarantees for territorial integrity and solidarity among EU member-states.

[14] Unions, social groups prepare for IGC

Athens, 05/04/1997 (ANA)

Committee members from Greece will include members from the Coalition of the Left and Progress as well as feminist and anti-racist groups. Also involved are members of the General Confederation of Workers of Greece (GSEE) and the Athens, Patra and Thessaloniki labour centers, some of whom are members of the ruling PASOK party.

[15] Conclave meeting

Athens, 05/04/1997 (ANA)

Greece will be represented at the Council of Ministers by Alternate Foreign Minister George Papandreou, who detailed Greek positions at the cabinet meeting yesterday and the course of negotiations on revising Maastricht.

Mr. Papandreou predicted considerable clashes between larger and smaller countries during the EU's European Summit Council on the Intergovernmental Conference in Amsterdam in June.

Mr. Papandreou said the larger countries favour flexibility in decisions which, he added, means pressure for a multi-speed Europe, namely that some countries will proceed faster than others.

Greece, together with other countries, is opposed to this prospect and insists on unanimity in decisions concerning vital interests.

[16] Sioufas appointed ND parliamentary representative

The main opposition New Democracy party's new parliamentary representative is Dimitris Sioufas, in accordance with the decision of party leader Costas Karamanlis.

Mr. Sioufas's alternates are Anna Psarouda-Benaki (justice and institutions), Vangelis Meimarakis (economy) and Savvas Tsistouridis (European and agricultural issues).

The party's council of president of prefectural committees will meet on Wednesday to appoint the 20 members to participate in the party's Central Committee, which will meet on Friday to appoint a new Executive Committee. Today, Mr. Karamanlis will visit his constituency of Thessaloniki for the first time since his election as party leader.

[17] Imia of enormous national importance, Gov't emphasizes

Athens, 5/4/1997 (ANA)

Greece and Turkey nearly went to war over Imia early last year after Ankara openly disputed Greek sovereignty of the uninhabited rocky islet.

In Washington, Mr. Burns reportedly said that the Imia issue was one of sovereignty, which would be resolved in a process of consensus between Greece and Turkey.

Responding to Mr. Burns' statement that "Imia is very small", government spokesman Dimitris Reppas noted that "greatness is not measured in square meters".

Asked to comment on Mr. Burns' persistence in using the Turkish name Ankara uses for the islet - Kardak - Mr. Reppas said "this is not something which will determine policies".

He also referred to a rock concert being organized for Imia by the new monthly magazine "Nemesis", scheduled for May 25.

"Such matters should be handled with sensitivity, discretion, a sense of patriotism, responsibility and seriousness," the spokesman said.

He added that the government had not been involved in the matter from the point of view of granting a permit for the concert, underlining that access to Greek territory was free for all.

[18] New Democracy

Athens, 05/04/1997 (ANA)

The announcement was in response to the statement by Mr. Burns that a question exists on Imia's sovereignty.

ND stated that the "latest unfortunate statements" by Mr. Burns, provided, of course, that they reflect his government's positions, render the effectiveness of whatever future intervention by the US to normalize Greek-Turkish relations problematic.

[19] Turkish parliament president due in Athens today

Ankara, 5/4/1997 (ANA/AFP)

According to reports, the meeting between Mr. Kaklamanis and Mr. Kalemli is of a courtesy nature and has no agenda.

[20] Greek, Turkish self-administration officials meet in Cesme

Istanbul, 5/4/1997 (ANA)

[21] Pangalos interview to Swiss paper

Bonn, 5/4/1997 (ANA/P. Stangos)

The interview focuses on the Albanian crisis, relations with the Former Yugoslav Republic of Macedonia (FYROM), Greek-Turkish relations and the Cyprus issue, characterizing what it calls the west's logic that Europe "ends somewhere between Zagreb and Belgrade" inconceivable.

On the question of Greek-Turkish relations, Mr. Pangalos set out the view that there will be great prospects of co-operation when the neighbouring country turns indeed to Europe and contributes to a solution to the Cyprus issue, while at the same time he denounces Germany and Britain over the tactic of undermining Cyprus' accession to the European Union, terming the stance by Bonn as London as being "against every concept of political ethics".

Commenting on Albania, Mr. Pangalos said Greek foreign policy acts on the principle that "we respect the territorial integrity of Albania in the framework of existing borders and we do not encourage any secessionist movement."

Referring to his recent visit to FYROM, Mr. Pangalos said that he carried it out "with the conviction that our difference on the name is of secondary significance compared to the need to safeguard stability in the region."

[22] Five-nation Pangalos tour

Athens, 5/4/1997 (ANA)

His first stop will be Prague, going on to Bratislava, Slovakia on Monday. Both countries have applied to join the EU, and it is expected that talks will focus on EU and NATO enlargement. Mr. Pangalos will leave for Yerevan, Armenia on Tuesday, going on to Georgia on Thursday and Azerbaijan on Friday.

[23] Interior minister tours eastern Macedonia, Thrace

Athens, 5/4/1997 (ANA)

Speaking at a conference of the Local Union of Municipalities and Communities of the Evros prefecture on the five-year program "Ioannis Kapodistrias", and on compulsory local government mergers, Mr. Papadopoulos said "deep incisions are necessary to enable the state and public administration to withstand strong competition from unified Europe. The state cannot operate with the structures of the past century, while the entire restructuring effort has an expiry date in 33 months from now, namely, when t he third phase of Economic and Monetary Union will begin."

Mr. Papadopoulos called on local bodies to submit their own proposals on mergers and announced that the five-year program will be funded with more than 800 billion drachmas.

Similar events are scheduled to take place in Komotini, Xanthi, Drama and Kavala.

[24] National Bank payments linked to consumer loans increase considerably

Athens, 5/4/1997 (ANA)

The managing director of Ethnokarta-EAEDO, P. Haikalis, said that in 1996 an upward trend was observed in all sectors of the company's activities resulting in its profits amounting to 2.5 billion drachmas, registering a 45 per cent increase compared to 1995.

Mr. Haikalis said that in 1996, compared to 1995, the amount of direct consumer loan credit loans granted increased by 19 per cent, while the turnover for credit cards increased by 20 per cent.

[25] Prosegisis programme to be presented next week

Athens, 5/4/1997 (ANA)

The program is part of the wider action of the European Commission's "INNOVATION" programme, which constitutes the spearhead for implementing the Union's policy on SMEs.

In Greece, the program is being implemented by the Greek joint venture PROSEGISIS, while the Athens Economic University's research center has undertaken the coordination. The joint venture is supplemented by three companies, as well as by the Technological Park of Thessaloniki and the Scientific Park of Patras.

For more information call the joint venture at 82.35.277.

[26] GSEE unveils rare photos of pre-war labour movement

Athens, 5/4/1997 (ANA)

The photos include depictions of the founding GSEE conference in Piraeus in 1918, telephonists in Athens in 1918, striking railway workers in Macedonia in 1920, impri-soned unionists in 1922, rallies and demonstrations during the pre-WWII dictatorship and photos of women working in border hospitals in 1943, as the civil war got underway.

The exhibition is accompanied by documents, films, flags and banners and other material.

[27] Gov't decides on second OTE share offer

Athens, 5/4/1997 (ANA)

The decision was taken at a Cabinet meeting yesterday chaired by Prime Minister Costas Simitis.

National Economy and Finance Minister Yiannos Papantoniou and government spokesman Dimitris Reppas said it had been decided to sell 45 million shares, corresponding to 10.7 per cent of OTE's share capital, to Greek and foreign investors and employees of the telecommunications organization.

They said the current value of the shares to be sold totaled 270 billion drachmas, with 60 per cent of the proceeds going to OTE for investment programs and the remaining 40 per cent to the state.

The first offer last year saw the sale of 8.0 per cent of OTE's shares on the Athens Stock Exchange, at an admission price of 4,000 drachmas per share. The initial public offer was greeted with enthusiasm by investors, with four times as many requests f or subscriptions than shares available.

The current price of the share is 6,000 drachmas.

The procedures for this second share offer are expected to have been completed by mid-June.

Commenting on the Cabinet's decision, Mr. Reppas said the present offer came at a time when developments in the economy were favourable and strengthened investor interest in the Greek capital market.

Mr. Papantoniou later told reporters that the OTE offer was the biggest share offer in the Greek market and one of the biggest by telecommunications companies in the European market.

He added that the shares would be sold to Greek and foreign institutional investors using the 'book building' method, and to private investors, OTE employees and pensioners through public subscription. In the event of excess demand, Mr. Papantoniou added, the state would be entitled to sell a further 2.0 per cent of OTE shares.

[28] IOBE study says reduction in work hours doesn't increase employment

Athens, 5/4/1997 (ANA)

Even in marginal cases where positive repercussions appear for increased employment, they appear to be unfavourable for production, exports and investments.

In addition, if the nominal wage remains stable, a decrease in working hours leads to a fall in the real income of each worker due to an increase in inflation caused by the measure. Negative repercussions also follow in the balance of payments and the public sector deficit.

These conclusions were reached both by theoretical analysis and by the practical implementation of similar policies in Greece and abroad.

According to IOBE's study, a decrease in conventional working hours to less than 40 a week in various countries had more unfavourable than favourable repercussions. In the case of France, some jobs were created but much fewer than expected.

Moreover, these jobs were almost always created in large (more than 500 workers) businesses. The most common result in small businesses was a decrease in production.

In Greece during the past few years, and particularly over the 1979-1982 when a considerable decrease in weekly conventional working hours occurred, developments were negative in the rates of unemployment, employment and production.

IOBE's study concludes that the measure of decreasing weekly conventional working hours has a considerable cost both for the economy and businesses.

End of English language section.

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