Athens News Agency: Daily News Bulletin in English, 97-07-18

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

ATHENS NEWS AGENCY BULLETIN (No 1240), July 18, 1997

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

CONTENTS

[01] Papandreou welcomes EU's position on Cyprus' EU accession

[02] Greek troops to return from Albania

[03] Greek-Argentine agreement on nuclear energy signed

[04] Czech Prime Minister on unofficial visit

[05] Protest letter to Yilmaz over journalists' persecution

[06] US State Dept., on Ecevit visit to occupied Cyprus

[07] Gov't condemns latest airspace violations by Turkey

[08] Internal, opposition criticism

[09] Kranidiotis concludes Egyptian visit

[10] SAE gets permanent offices in Thessaloniki

[11] Greek Consulate reopened in Albania

[12] Venizelos briefed on IAAF Championships

[13] Baryshnikov to dance in Thessaloniki

[14] Papariga criticizes Gov't, says Greece lacks opposition

[15] Hospital doctors demonstrate outside Parliament

[16] Europarliament draft resolution on Greek forest fires

[17] Pharmacists go back to work

[18] ND examines current economic developments, criticizes Gov't

[19] Agreement with cotton producers reached

[20] Private sector to manage some EU-funded state projects

[21] Supermarket owners, manufacturers agree to gov't-brokered truce

[22] Yfantis unit to open in Romania

[23] Skopje paper says hydroelectric power station bid in jeopardy

[24] Greek drachma stabilizes, interbank rates drop

[25] Tourist arrivals up 7 pct in Rhodes

[26] Greek stocks slump 1.04 pct on drachma worries

[27] The small cap index fell 0.29 percent

[28] Greek industries show drop in 1996 profits

[29] Tax officers urge overhaul of tax system

[30] Greece's social insurance system's deficit 320.03 bln. Dr.

[31] GSEBEE calls for change in tax collection system for SMEs

[01] Papandreou welcomes EU's position on Cyprus' EU accession

Athens, 18/07/1997 (ANA)

At the same time, he welcomed statements by European Commission President Jacques Santer and Commissioner Hans van den Broek, according to which Cyprus cannot be held "hostage" as a result of Turkey's stance.

In particular, Mr. van den Broek told the European Parliament yesterday that the Commission cannot hold Cyprus hostage due to lack of co-operation by the Turkish side regarding a settlement of the protracted Cyprus problem.

Speaking at a press conference, Mr. Papandreou said also that Greece was in favor of accession negotiations beginning simultaneously for all eleven prospective member states.

The Commission has recommended that membership negotiations for an expanded EU should begin with Cyprus, Poland, Hungary, the Czech Republic, Estonia and Slovenia next year.

As far as the EU's relationship with Turkey is concerned, Mr. Papandreou said, this will be examined in detail during the discussion of the Commission's "Agenda 2000" report on enlargement, noting that a special report had been drawn up on the further development of the Community's relations with Turkey.

Within the framework of this discussion, Mr. Papandreou continued, it will be examined whether Turkey will have a "special" relationship with the EU, or whether this relationship will constitute an advanced form of Customs Union ("Customs Union plus," as it is referred to in Community dialect). The Commission's report on EU-Turkish relations contains references to the need for a relationship of good-neighborliness (on the part of Turkey) with Greece, as well as for a settlement of the Cyprus problem and respect by Ankara for human rights and democratic institutions.

Mr. Papandreou noted meanwhile that the opinion expressed by the European Commission regarding Cyprus' accession is "very good" and that Cyprus fulfilled all the criteria set by the Maastricht Treaty.

A ministerial meeting will be held in Athens next week to discuss the entire issue of EU enlargement, including policies pertaining to Community finances.

The "Agenda 2000" is expected to be given the final seal of approval at the EU summit in December.

[02] Greek troops to return from Albania

Athens, 18/07/1997 (ANA)

[03] Greek-Argentine agreement on nuclear energy signed

Athens, 18/07/1997 (ANA)

The agreement was signed for Greece by the president of the Greek Atomic Energy Commission, Prof. Anastasios Katsanos, and on behalf of Argentina by Buenos Aires' ambassador to Athens Francisco Jorge Bullrich.

The agreement aims at promoting co-operation in developing basic research, applied research, technology and know-how in the peaceful application of nuclear energy.

Argentina has a highly developed nuclear program covering nuclear fuel and the construction and supply of nuclear reactors. Prof. Katsanos clarified, however, that Greece had not changed its policy opposing the establishment in the country of nuclear reactors for power generation.

[04] Czech Prime Minister on unofficial visit

Athens, 18/07/1997 (ANA)

Although no statements were made after the meetings, informed sources said discussion focused on issues related to the commencement of the procedure for NATO and European Union enlargement.

[05] Protest letter to Yilmaz over journalists' persecution

Athens, 18/07/1997 (ANA)

[06] US State Dept., on Ecevit visit to occupied Cyprus

Washington, 18/07/1997 (ANA - T. Ellis)

"The situation in Cyprus this summer is calm, in contrast to last year. There are positive signs emerging from last week's talks in Troutbeck, where (Cyprus) President Clerides and (Turkish Cypriot leader) Mr. Denktash spent some time together. We consider that trends in Cyprus are positive, and very much hope that Mr. Ecevit will use this visit to strengthen this constructive and positive trend," he stated.

Although he avoided criticizing Mr. Ecevit for the visit to the occupied areas, Mr. Burns said in reply: "I didn't say we agree with the visit".

Commenting on Mr. Ecevit's recent threat that Turkey would annex Turkish-occupied northern Cyprus if accession negotiations started with the EU, Mr. Burns implied that he does not agree with this position, stressing that "this is perhaps the reason why we are asking him to be positive and constructive."

Referring to the joint communiqui signed in Madrid between Greek Prime Minister Costas Simitis and Turkish President Suleyman Demirel, Mr. Burns said: "We hope that in the Madrid spirit Greece and Turkey will proceed to some practical steps to improve their relations with each other. The US expects from Greece and Turkey to respect each other's territorial integrity and sovereignty."

[07] Gov't condemns latest airspace violations by Turkey

Athens, 18/07/1997 (ANA)

The violations of Greek airspace by Turkish warplanes since the issuing of the communiqui "compro-mise" Ankara, Mr. Reppas said. Greece and Turkey issued a joint communiqui on bilateral relations on the sidelines of the NATO summit in Madrid, following talks between Prime Minister Costas Simitis and Turkish President Suleyman Demirel.

The spokesman called on all forces in Turkey which support the spirit of the Madrid communiqui "to work in order for this spirit to become an integral part of Greek-Turkish relations, so that it cannot be undermined or overturned."

[08] Internal, opposition criticism

Athens, 18/07/1997 (ANA)

PASOK deputies Pantelis Economou, Stelios Papathemelis, Christos Kipouros and Lefteris Veryvakis expressed objections regarding the effectiveness of the Simitis-Demirel communiqui.

Mr. Papathemelis, a former minister, said there was little point to concluding agreements when Turkey was continuing its provocative and expansionist policy, particularly bearing in mind that numerous peace and friendship accords had been signed in the past "but Turkey has never adhered to any of them."

On his part, Mr. Veryvakis said the issue was not whether Greek-Turkish dialogue proceeds or not, but what the content of such dialogue will be.

Mr. Economou underlined that Greece should first examine Turkey's intentions "and then consider if Ankara really wants good relations with Athens, and at what price."

He also questioned whether the government would eventually go ahead with its massive armaments program.

The agreement was defended by PASOK deputies Ilias Papadopoulos and Kosmas Sfiriou, while the main opposition New Democracy deputies participating in the session said that certain aspects of the agreement needed to be clarified. Deputies representing the Communist Party of Greece, Coalition of the Left and Progress and the Democratic Social Movement expressed vehement disagreements with the communiqui.

[09] Kranidiotis concludes Egyptian visit

Alexandria, 18/07/1997 (ANA - V. Mourtis)

Mr. Kranidiotis' visit to Egypt is part of his tour of the Middle East.

The foreign under-secretary expressed the Greek government's concern over Greek community issues, while he promised Patriarch Petros an economic support package from Greece.

The ethnic Greek community's two major centers here are the Patriarchate and the School of Archaeology and History, to be established soon with Athens' contribution.

Mr. Kranidiotis stressed that the Alexandria-based Patriarchate should retain its excellent ties with the Egyptian government.

[10] SAE gets permanent offices in Thessaloniki

Athens, 18/07/1997 (ANA)

The ceremony will be attended by SAE president Andrew Athens, Macedonia-Thrace Minister Philippos Petsalnikos and Secretary General for overseas Greeks Stavros Lambrinidis.

The new offices are at the building of the Macedonia-Thrace Bank.

[11] Greek Consulate reopened in Albania

Gjirokaster, 18/07/1997 (ANA - D. Tsakas)

[12] Venizelos briefed on IAAF Championships

Athens, 18/07/1997 (ANA)

"Organizing the World Athletics Championships is of great importance because it constitutes a major communications and political event..." Mr. Venizelos said after touring facilities at the Athens Olympic Stadium complex yesterday.

Mr. Venizelos was briefed on the course of preparations to host the championships and on the progress of work being done at the stadium by several sports officials.

Four more International Olympic Committee members, this time from Cameroon, Norway, Jamaica and Uganda, have expressed satisfaction with Athens' bid to hold the 2004 Olympic Games. The four, who are currently visiting Greece, each planted an olive tree at the "IOC Members' Park" yesterday.

[13] Baryshnikov to dance in Thessaloniki

Athens, 18/07/1997 (ANA)

Mr. Baryshnikov will appear with the 15-member White Oak Dance Project.

The program includes five works, two of which will be danced solo by the renown performer.

It will be his second and last performance in Greece, following one at the new theater of ancient Olympia.

[14] Papariga criticizes Gov't, says Greece lacks opposition

Athens, 18/07/1997 (ANA)

Both in her press conference at a downtown hotel in Halkida and in a speech to party supporters afterwards, Ms Papariga stressed that Greece was suffering from the government's "anti-popular policy" and from the lack of an opposition.

Referring to the agreement recently concluded in Madrid between Greece and Turkey and the six points contained in it, Ms Papariga said that in the postwar era there has probably been no action so open and provocative against the country's interests.

"Neither the Turkish nor the Greek people will benefit from this peace agreement. On the contrary, with this agreement as a lever, new serious pressures will be exerted for more blatant and painful concessions, the immediate reflection being a worsening of domestic policy in our country," she said.

Ms Papariga also said that problems stemming from aggravated unemployment in Evia will not be resolved with regional development programs but what is necessary is an overall policy combined always with measures benefiting the people and policies restructuring enterprises.

[15] Hospital doctors demonstrate outside Parliament

Athens, 18/07/1997 (ANA)

Protesting doctors believe the draft bill will destroy ESY and the social nature of the health system. They also claim health services will become very costly.

Doctors have called a new strike for next Thursday and Friday.

[16] Europarliament draft resolution on Greek forest fires

Strasbourg, 18/07/1997 (ANA-H.Charalambopoulos)

The draft resolution calls on the European Commission to provide economic relief to residents who lost property in the recent fires, as well as to help with reforestation and fire-protection measures.

[17] Pharmacists go back to work

Athens, 18/07/1997 (ANA)

The Attica Pharmacists' Union decided that all pharmacies should open yesterday for business as usual, and to give out medicines on credit, to be paid by social security organizations, something which they had threatened not to do.

The union issued a statement clarifying that the strikes were only being interrupted temporarily to give the government time (until 20 September) to re-examine its position on the question of price adjustments for medicines as well as the pharmacists' profit margins.

The Panhellenic Pharmacists' Union issued a similar decision, its board having decided to continue issuing medicines on credit to those on social security as a "goodwill gesture following an appeal by the presidium of the pensioners' association".

Health Under-secretary Manolis Skoulakis has committed himself to resolve the dispute within the next few days.

Meanwhile, hospital doctors throughout the country, apart from Athens and Piraeus, are holding a 48-hour strike yesterday and today over pay issues. The Athens hospital doctors' union, whose own strike ended on Thursday, held a rally in Syntagma Square last night to support various unions outside the health sector, such as textile and construction workers.

[18] ND examines current economic developments, criticizes Gov't

Athens, 18/07/1997 (ANA)

At a meeting on the economy yesterday to examine the economy's progress, ND spokesman Aris Spiliotopoulos said the main opposition was concerned about recent economic developments, which reflected the impasse in government policy.

ND called on the government to take initiatives towards reducing public debts instead of increasing taxes, as well as to further deregulate markets and to support competition, while pushing forward with "brave privatization", among others.

The meeting was chaired by ND leader Costas Karamanlis.

[19] Agreement with cotton producers reached

Athens, 18/07/1997 (ANA)

A meeting was held at the ministry yesterday, attended by Agriculture Minister Stephanos Tzoumakas, Under-secretary Dimitris Sotirlis, the president of the Cotton Organization C. Mylonas and representatives of cooperatives' organizations.

Among others, it was agreed that the ministry will propose to the Agricultural Bank of Greece (ATE) to grant a loan for about two billion drachmas to cooperative ginning enterprises with favorable terms.

[20] Private sector to manage some EU-funded state projects

Athens, 18/07/1997 (ANA)

During a press conference at the European Commission offices in Athens, Development Minister Anna Diamantopoulou said the Company for Developing Private Infrastructures in Northern Greece (EAIYBE) will manage and be responsible for the projects.

EAIYBE is based in Thessaloniki and its members include chambers of commerce, banks, industries and others in the area. It is headed by Nikos Efthymiadis, until recently the president of the Federation of Industries in Northern Greece.

Ms Diamantopoulou said the program would absorb nine billion drachmas, half of which would come from the EU's European Regional Development Fund. The rest would be made up by private investments.

For the time being, activities would concentrate on projects in northern Greece, Ms Diamantopoulou said, because of its proximity to developing markets and its key location but may be extended to other areas depending on its success.

Ms Diamantopoulou said it was the first time the government was turning over the management of Community funds in Greece to private hands, although social responsibility would be a major priority.

The areas targeted for the projects include all major infrastructures in Greece, such as ports, exhibition and storage areas, free-trade zones, energy networks, telecommunications, and services linking research and production.

Outlining its program, Mr. Efthymiadis appealed to all interested investors to submit their proposals independently or jointly with state agencies until Sept. 25, for a preliminary selection of projects.

The finalized forms of chosen projects should be submitted by Nov. 24. Agreements will be finally signed by the end of the year, he said.

Proposals must involve investments worth at least 500 million drachmas, and the investor will be responsible for managing the project for five years after its completion.

Mr. Efthymiadis said interest had been expressed in creating free-trade zones at the borders with Albania and Bulgaria, to help local businesses avoid time-consuming customs procedures in bilateral trade, among others.

Interested parties should contact EAIYBE at 1, Plateia Morichovou, Thessaloniki, tel. 031-539817.

[21] Supermarket owners, manufacturers agree to gov't-brokered truce

Athens, 18/07/1997 (ANA)

The committee, to be chaired by Mr. Chrysohoidis himself, will issue its findings by the end of August, and recommend necessary measures for the restoration of confidence between the two sides, in combination with the modernization of legislation regarding unfair competition, which will be submitted to Parliament in September.

Meanwhile, the ministry will initiate talks aimed at freezing prices for the next two years.

[22] Yfantis unit to open in Romania

Athens, 18/07/1997 (ANA)

The Greek firm has purchased land in Bucharest covering an area of 9,500 square meters through its subsidiary, Yfantis Roumania.

Work for the construction of building installations, with a total area of 2,500 square meters, has already begun.

The Yfantis company's turnover is expected to reach nine billion drachmas this year, compared to 7.7 billion drachmas in 1996.

[23] Skopje paper says hydroelectric power station bid in jeopardy

Skopje, 18/07/1997 (ANA - M. Vihou)

The paper quoted Pante Lazarov, the director of the Former Yugoslav Republic of Macedonia's (FYROM) power utility, as saying that a necessary condition for implementation of the project is the signing of a bilateral agreement with Greece regarding distribution of the Axios River's waters.

If the agreement is not signed until September, according to Mr. Lazarov, then the project will be assigned to a Chinese company, whose tender was reportedly US$6 million cheaper than East Power Corp.'s bid ($33 million).

According to the Skopje paper's article, the agreement for the distribution of the Axios River waters is pending since 1967, while it claimed that Greece is unwilling to sign such an agreement because it would drastically affect the fertile Thessaloniki plain.

[24] Greek drachma stabilizes, interbank rates drop

Athens, 18/07/1997 (ANA)

Bank of Greece officials said that pressure exerted on the drachma was a surprise but proved to be short-lived. The central bank however will be looking to tomorrow's session to reach a final conclusion.

According to unofficial estimates, total outflows during a round of currency turmoil in May combined with Wednesday's tension were three billion US dollars. Bank of Greece officials attributed the outflows of capital to an international rush to buy the green currency and sterling.

The dollar stood 13 per cent higher against most European currencies since the start of the year.

In the domestic foreign exchange market, the dollar rose to a new record of 282.14 drachmas at the central bank's daily fixing. The DMark was fractionally higher and the ECU steady against the drachma.

[25] Tourist arrivals up 7 pct in Rhodes

Athens, 18/07/1997 (ANA)

According to the figures, the number of guests at hotels on the island presently totals 57,028, of whom 53,889 are foreigners and 3,139 Greeks.

At the same time last year, hotel occupancy stood at 53,344, of whom 50,365 were foreigners and 2,979 Greeks.

Of course the actual number of visitors currently on the island is much higher, since many tourists are staying in rented rooms and other forms of accommodation.

Tourist industry representatives believe that the number of visitors to the island will increase during the next few days, boosted by Greeks taking their annual leave.

In addition, a large number of independent travelers are expected from Italy, France and the Arab countries.

[26] Greek stocks slump 1.04 pct on drachma worries

Athens, 18/07/1997 (ANA)

The national currency was hit by a wave of outflows of US dollars and sterling because of demand for the greenback in international markets.

Resulting pressure on the drachma led to higher interbank rates in the domestic money market.

The general index closed 1.04 percent lower at 1,556.46 points. Trading was moderate and turnover was 13.7 billion drachmas.

Most sector indices lost ground. Banks fell 1.27 percent, Leasing was 1.52 percent off, Investment eased 1.21 percent, Industrials fell 0.75 percent, Construction dropped 1.12 percent, Holding eased 1.71 percent and Miscellaneous was 0.45 percent down. Insurance bucked the trend to end 0.14 percent up.

[27] The small cap index fell 0.29 percent

Athens, 18/07/1997 (ANA)

Broadly, decliners led advancers by 157 to 48 with another 32 issues remaining unchanged.

Sarandopoulos Mills, Elfico and Macedonian Plastics scored the biggest percentage gains, while Demetriades, Britannia and Emporikos Desmos suffered the heaviest losses of the day.

National Bank of Greece closed at 36,500 drachmas, Ergobank at 16,720, Alpha Credit Bank at 19,525, Titan Cement at 14,500 and Intracom at 12,615.

[28] Greek industries show drop in 1996 profits

Athens, 18/07/1997 (ANA)

The Greek industrial and economic survey released on Internet showed that 657 Greek industries and manufacturing companies with net profits of more than 100 million drachmas reported cumulative earnings of 475.15 billion drachmas last year, down on real prices from the previous year.

The report showed that manufacturers' return on capital was lower than that of commercial firms.

It also said that the food industry was the most profitable sector of Greek industry with one in five companies reporting net profits of more than 100 million drachmas. A total of 125 food companies showed total net earnings of 85.9 billion drachmas in 1 996.

Also surveyed were 51 companies in the chemicals sector, 49 in textiles, 49 in non-metallic minerals, 41 in pharmaceuticals, 38 in metals and steel, 36 in clothing, 36 in printing and 35 in plastics and rubber.

[29] Tax officers urge overhaul of tax system

Athens, 18/07/1997 (ANA)

* Introduction of a 20 percent inflation-linked component in the tax scale * Widening of income tax brackets * Across-the-board rise in the tax-free limit to two million drachmas * Reduction of tax for small and medium-sized enterprises to 30 percent from 35 percent * New tax scale for private firms so that 50 percent of profits are taxed at 30 percent and the remainder under the new scale * Change in tax status of SA companies so that industrial and tourism companies are taxed at 30 percent from 35 percent, and commercial companies at 40 percent * Retention of source-of-income declaration until the finance ministry's computerized tax system is completed * Change in system of evaluating source-of-income for the purchase of private vehicles and leisure boats * Incorporation of all members of the public into declaration of income, including the abolition of exemption for the holders of government securities and stocks on the Athens bourse.

[30] Greece's social insurance system's deficit 320.03 bln. Dr.

Athens, 18/07/1997 (ANA)

IKA's organic deficit was 155.02 billion drachmas and the debt from previous loans was 165.01 billion drachmas, IKA's board said responding to media reports yesterday.

The board said recent adjustments the government had made to aid IKA's finances meant that borrowing to cover the deficit could probably be avoided.

[31] GSEBEE calls for change in tax collection system for SMEs

Athens, 18/07/1997 (ANA)

Among others, GSEBEE calls on the government to agree to the abolition of objective tax criteria, abolition of the 35 per cent share concerning the taxation of personal companies, taxation for large incomes in accordance with their taxpaying capacity and the establishment of an index-linked taxation scale, prosecution for tax evasion wherever it takes place and not unilaterally for SMEs.

In order to substantiate its positions, GSEBEE also submitted examples.

End of English language section.

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