Athens News Agency: Daily News Bulletin in English, 97-10-22

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

ATHENS NEWS AGENCY BULLETIN (No. 1321), October 22, 1997

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

CONTENTS

[01] Holbrooke slams State Dept. on first statement over plane's harassment

[02] Ecevit statements

[03] Opposition reaction

[04] Cyprus says latest Turkish harassment 'a major provocation'

[05] Kranidiotis-Cem meeting covers wide range of issues

[06] Issue of Turkish military exercises brought up

[07] Talks with Russian foreign under-secretary

[08] BSEC's development bank the focus of Kiev meeting

[09] Fourth Greek-Turkish business forum opens in Athens

[10] Greek-Turkish meeting on environment ends with wide-ranging resolution

[11] Pangalos, Baltas on one-day visit to Algiers

[12] Kaklamanis briefs German MPs on Greek-Turkish relations

[13] Bulgarian, Greek, Romanian FMs to discuss regional projects

[14] Patriarch continues busy schedule of events in Washington

[15] Congressional distinction

[16] Delors package funds can't be entirely re-allocated, Commission says

[17] Earthquake hits central Greece, no damage reported

[18] EDHK leader Ioannis Zigdis dies

[19] Constitutional revision committee sessions open to press

[20] EU farm ministers' council approves compromise on durum wheat policy

[21] Premier to inaugurate Thisavros hydroelectric project

[22] European Parliament adopts call to action on unemployment

[23] Greece to see tough 1998 budget

[24] Greece to change taxes in 1998 budget

[25] OA gets state go-ahead for fleet renewal

[26] Greek state telecom raises charges

[27] Greece seeks transparency in grants to local gov't

[28] Greek stocks end down in new round of pressure

[29] Greece's Unitrade Air Cargo to link Thessaloniki with CIS

[30] Turkish immigrant smuggler sentenced to 10 years

[31] Oil smuggling, adulteration mushrooms, gov't official says

[32] Lack of preparation in Dornier crash-landing, report says

[01] Holbrooke slams State Dept. on first statement over plane's harassment

Washington, 22/10/1997 (ANA/T. Ellis)

"I have no doubt that the provocative action of the harassment of the aircraft by Turkish fighters indeed happened and I consider it a mistake on the State Department's part that it does not publicly accept this reality," he told ANA.

Mr. Holbrooke added that there was no excuse for what happened and it was indisputable when it had been recorded on camera.

"Even if the Greek defense minister was not in the plane, it is an unacceptable action which does not at all help in defusing tension between Greece and Turkey. It is a very serious incident during which human lives were put in danger," he said, adding that he fully understood the fear and anxiety of all those aboard the C-130 transport plane.

Regarding a statement on Monday by State Department spokesman James Rubin, who had said that the transport flight had violated an agreed moratorium on Cyprus overflights, Mr. Holbrooke expressed the view that Mr. Rubin had not been adequately briefed by the State Department's competent officials.

In Athens, meanwhile, the government described as "unprecedented and unacceptable" the statements by Mr. Rubin on the harassment by Turkish warplanes of Mr. Tsohatzopoulos' flight.

Government spokesman Demetris Reppas said Mr. Rubin's statements "ignore or distort true facts", adding that "it is not permissible for the existing facts and evidence to be disregarded or hushed up for reasons of expediency".

Mr. Rubin said on Monday that Mr. Tsohatzopoulos' flight to the island republic to observe military exercises last week was an overflight that had violated an agreed moratorium.

Replying to reporters' questions, he added: "You're speaking about aircraft and the defense minister's aircraft. Why did it have nothing to do with overflights? It was above Cyprus as an overflight. It doesn't stop being an overflight that we believe should not have happened."

In a later statement issued on Monday and apparently aimed at rectifying Mr. Rubin's remarks, the State Department said "the US has no confirmation of the incident from an independent source. The information which we have seen is particularly alarming.

"If Turkish aircraft did fly provocatively close to the aircraft carrying the Greek defense minister, such an action would not be in line with Ankara's stated intention of reducing tension with Greece," the statement added.

The statement again calls on both Athens and Ankara to avoid actions which complicate efforts to find a solution to the Cyprus problem and urges both sides to resume implementation of the moratorium on flights of military aircraft over Cyprus.

Mr. Reppas described this second State Department statement as an "about-turn" which made amends for Mr. Rubin's initial statement. Replying to other questions, Mr. Reppas said "there are many who would perhaps like to exert pressure on Greece regarding this matter, but what is important is how the party being pressed reacts."

Throughout its long history, he continued, the Greek nation had successfully confronted much greater pressure "and in any case, the Greek government has no intention of changing its orientation because of any kind of pressure whatsoever".

Mr. Tsohatzopoulos himself later reacted strongly to Mr. Rubin's statement.

"Unfortunately, when the US government spokesman confuses the overflight of a military aircraft with the official visit of the Greek national defense minister to Cyprus in a C-130 transport plane, there is a problem concerning the stance of the United States and the impression is created that the decision-making centres are a long way from reality," Mr. Tsohatzopoulos said after meeting with Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos.

Mr. Tsohatzopoulos said also that the credibility of the US was diminished with respect to its desire to take the lead in initiatives for resolving the Cyprus problem and Greek-Turkish differences.

The minister described the State Department spokesman as "inexperienced", adding that his statements "must not have deeper meaning with respect to the policy of the US", while noting that "this will depend on developments".

Mr. Tsohatzopoulos expressed the view that Turkey, seeing that the prospect of Cyprus' accession to the EU created new prospects and new possibilities concerning the settlement of the Cyprus problem, was reacting in a "skittish" manner and further toughening its stance.

"On our part, we must display the greatest possible responsibility and activity in the face of these quite blatant (Turkish) attempts to impress" he added.

Mr. Constantopoulos also strongly criticized Mr. Rubin's statements as "unacceptable" and Turkey's actions as "provocative", observing at the same time that "they feed and complement each other".

[02] Ecevit statements

Athens, 22/10/1997 (ANA)

He said Turkey had no desire to contribute to the defusing of the crisis and the building of good relations, adding that Ankara's stance revealed "Turkish provocativeness in all its splendour".

Mr. Ecevit's statements, Mr. Reppas said, prove that there is an "unbridgeable gap" and no possibility of the two countries reaching any understanding for as long as Turkey insisted on putting forward these positions.

"For as long as Turkish officials support these positions, their words will fall on deaf ears," he said.

Asked what the Greek government could expect from talks between Prime Minister Costas Simitis and his Turkish counterpart Mesut Yilmaz on the sidelines of the Balkan Summit in Crete early next month, Mr. Reppas replied:

"Any well-intentioned person could expect to see will being shown by Turkey to bring its policy in line with the principles of international law and declare its respect for the international treaties concerning the Aegean." The spokesman added that Greece had no intention of contributing to any change in the status quo in the region.

Mr. Reppas expressed pessimism about the prospects for reaching some kind of understanding on Crete, citing Turkey's recent provocative behaviour.

He clarified that there had been no meetings between Greece and Turkey in preparation of the Simitis-Yilmaz talks, but did not rule out the involvement of a third party in this respect.

[03] Opposition reaction

Athens, 22/10/1997 (ANA)

ND spokesman Aris Spiliotopoulos said the statements were "the result of (Washington's) tactic of maintaining an equal distance between the provoker and the provoked".

Mr. Spiliotopoulos added that this tactic "has brought us to the point where, while Greece is not demanding anything, Turkey is demanding even more, and certain third parties continue to press us into negotiating everything".

Coalition of the Left Eurodeputy Alekos Alavanos commented on Mr. Rubin's statements by warning of "the revival of the policy of past decades, namely total obedience to the US and NATO" which, he added, was very dangerous.

Mr. Alavanos said it had become quite clear that there was a serious lack of activity and briefing with regard to Greece's positions on Greek-Turkish issues.

The Eurodeputy said it was only to be expected that the US would condemn Greece, rather than Turkey, "when the prime minister (Costas Simitis) in his public appearances hushes up the provocative acts of the Turks against the national defense and sovereign rights of our country".

The Communist Party of Greece (KKE) accused the government of being too accommodating and of "subservience" to the United States, while commenting on its stance regarding what the KKE described as "the supposedly corrective statement" of the State Department.

The KKE attributed responsibility for the situation in the region to the US and NATO, as well as to the PASOK government, which it accused of "covering up their role".

Former New Democracy prime minister Constantine Mitsotakis described Mr. Rubin's statement as "an accident".

"Accidents happen to the State Department, too," he said.

The Democratic Social Movement (DHKKI) said Greece's moderation was mistaken as weakness and fed Turkish aggressiveness. It called on the prime minister to cancel any plans for a new top-level meeting at the Balkan leaders' summit in Crete next month.

[04] Cyprus says latest Turkish harassment 'a major provocation'

Nicosia, 22/10/1997 (ANA/G. Leonidas)

The announcement also reminds that the statement on the avoidance of flights by both sides concerned fighter planes and not transports.

In the announcement, and replying to statements by US State Department spokesman James Rubin, the government stressed that there was never any agreement on a flights moratorium over the sovereign airspace of Cyprus.

The government, the same announcement explained, unilaterally stated last year that for the sake of a positive climate in which the talks were taking place it decided not to request the participation of the Hellenic Air Force in exercises until September when the period of the talks was expected to end.

The results of talks in New York and Montreux, it added, did not justify an extension of the unilateral decision it had taken over the period of the "Nikiforos" exercise.

The announcement said a moratorium is not conceivable with Turkey, which equates violations of the airspace of Cyprus by the Turkish air force with the legal invitation of the Hellenic Air Force to participate in National Guard exercises within the framework of the joint defense doctrine.

The government reserves its right to decide, if it considers that this is necessitated by circumstances... and for what period of time, invitations should be avoided for the participation of the Hellenic Air force in military exercises, the announcement concluded.

[05] Kranidiotis-Cem meeting covers wide range of issues

Kiev, 22/10/1997 (ANA/S. Sideris)

This was confirmed yesterday in a meeting Mr. Cem had in the Ukrainian capital with Foreign Under-secretary Yiannos Kranidiotis on the sidelines of a Black Sea Economic Co-operation Pact conference.

Speaking after the meeting, which was reportedly held in a good climate, Mr. Kranidiotis said that bilateral contacts will take place in Crete, while the Turkish minister pointed out to him that it will be the first meeting between Mr. Yilmaz and his Greek counterpart Costas Simitis.

Asked on the possibility of a meeting with his Greek counterpart Theodoros Pangalos, Mr. Cem said: "I do not know, I have not yet decided." Several days ago Ankara leaked information that the Turkish foreign minister did not wish to meet his Greek counterpart.

Mr. Cem said no discussion took place on tension created last week.

However, according to reports, Mr. Kranidiotis conveyed to Mr. Cem Athens' annoyance over recent massive violations and infringements by the Turkish air force all of last week. According to the same sources, Mr. Cem avoided taking a stand on Mr. Kranidiotis' report.

Speaking to Turkish reporters, Mr. Cem said that during the meeting Ankara insisted on a continuation of dialogue between the two countries. According to the Turkish diplomat, Mr. Kranidiotis' reply was that Athens accepts dialogue but not on issues pertaining to Greece's national sovereignty.

[06] Issue of Turkish military exercises brought up

Athens, 22/10/1997 (ANA)

Mr. Kranidiotis took the opportunity and, according to diplomatic sources, told the Turkish minister that there is no other option than Turkey canceling the exercise.

Mr. Cem reiterated Ankara's position on a dialogue on all issues, while Mr. Kranidiotis reiterated the Greek position for Turkey to resort to the International Court at The Hague over its continued dispute of Greek sovereignty of the Imia islets.

According to the same diplomatic sources, Mr. Kranidiotis added that if Turkey accepts recourse to The Hague on the Imia issue, then its position will improve in the EU and on its part, Greece will agree to the disengagement of the financial protocol. I n a brief and substantive reference to the Cyprus issue, Mr. Kranidiotis stressed that unless this problem is resolved the normalization of Greek-Turkish relations will be extremely difficult.

Mr. Cem appeared sceptical and let it be understood that he is not optimistic over prospects of resolving the Cyprus issue.

[07] Talks with Russian foreign under-secretary

Athens, 22/10/1997 (ANA)

Mr. Kranidiotis said the Russian government, as Mr. Avdiev assured him, will honour the agreement made with Cyprus and there will be no change in the implementation of the program, unless the proposal by Cyprus President Glafcos Clerides on the demilitarization of the island goes ahead.

It was agreed during the meeting that Russian Prime Minister Viktor Chernomyrdin will visit Greece at the beginning of next year, while Foreign Minister Yevgeny Primakov will pay a visit to Athens a little earlier.

Mr. Avdiev will visit Athens at the end of this year to pave the way for the visits of Mr. Primakov and Mr. Chernomyrdin.

Mr. Kranidiotis also met the Foreign Minister of Moldova Nikolai Tebekarou.

[08] BSEC's development bank the focus of Kiev meeting

Kiev, 22/10/1997 (ANA/S. Sideris)

The signing of the charter for turning BSEC into a regional economic organization, combating of drug smuggling and other individual issues will also be discussed.

Greece will be represented by Foreign Under-secretary Yiannos Kranidiotis.

A preparatory meeting was held at an expert level yesterday, focusing on the operation of the development bank and following a proposal by the Greek representative Alexis Alexandris.

Out of the member-states obliged to deposit an amount corresponding to them to facilitate the accumulation of necessary capital, only Greece, Russia, Turkey and Romania have so far responded.

The Ukraine, which holds the BSEC presidency during the current six-month period, has not yet fulfilled this obligation. However, Ukrainian Foreign Minister Yennady Utovenko told Mr. Kranidiotis yesterday that very soon, probably in October, the economic issue will be settled.

In an effort to accelerate the process for a start to the development bank's operation, Greece suggested loaning Moldova, Armenia and Georgia. The proposal has been accepted and relevant negotiations are underway.

To promote matters even further, Mr. Alexandris yesterday called on the representatives of countries which will have fulfilled their economic commitments to come to Greece on Nov. 10 with the purpose officially announcing the development bank's operation.

The issue of BSEC's headquarters has not yet been resolved. Turkey is contesting the seat, although Russia is reacting strongly. The issue will be discussed at ministerial level today, as well as the organization's charter.

[09] Fourth Greek-Turkish business forum opens in Athens

Athens, 22/10/1997 (ANA)

The issues to be examined by Greek and Turkish business leaders at the two-day forum include co-operation in the Balkans and the Black Sea region, Turkey's customs union with the EU, creation of joint ventures between construction companies for projects in the broader Balkan region and the development of co-operation in the tourism sector.

Other issues to be discussed are the avoidance of double taxation and the possibilities of utilizing European Union programs concerning the Balkans and necessitating co-operation between Greece and third countries that are not EU member-states.

In the previous three forums, Greek and Turkish businesspeople struck deals for joint ventures in the foodstuffs and pharmaceuticals sectors. The Athens business forum is expected to be attended by several noted Greek and Turkish businesspeople, including industrialist Rahmi Koc, who is active in the car manufacturing and supermarket sector in Turkey; Esref Cerrahoglu, chairman of the Turkish Chamber of Shipping; Thanasis Lavidas, general manager of the Lavipharm pharmaceuticals company as well as G ina Mamidakis and M. Daskalantonakis, both active in the Greek hotel industry.

Sessions of the forum, to be held at a downtown Athens hotel, will be closed to the public, although the press will be invited for a briefing at a subsequent dinner tomorrow.

[10] Greek-Turkish meeting on environment ends with wide-ranging resolution

Athens, 22/10/1997 (ANA)

The resolution also stated officials' resolve to avert a further deterioration of the environment in the region.

"For these contacts to produce the desired results, the permanent restoration of good relations between our two countries is needed. This restoration will come about as a result of the conscious abstention from the use, or threat to use of violence, respect for international law and treaties, as well as the inviolability of borders... "We emphatically declare our common will to resist by all means the uncontrolled industrial development in the pursuit of profit - often by multinational companies - which downgrades the environment and mortgages the future... We reiterate our belief in the right of our citizens to quality of life," the resolution states.

[11] Pangalos, Baltas on one-day visit to Algiers

Algiers, 22/10/1997 (ANA)

Mr. Pangalos met privately with Algerian Foreign Minister Ahmed Attaf and discussed conditions in the Magreb countries, Euro-Mediterranean co-operation as well as developments in the Middle East, the Balkans and the eastern Mediterranean.

They also signed a protocol of co-operation between the two ministries.

Mr. Baltas met privately with Algerian Finance Minister Abdelkrim Harsaoui, mainly discussing application of an agreement on the purchase by Greece of 600 million cubic litres of liquid natural gas as of 1998. The Greek minister was also briefed on the privatization program in Algeria.

Both Greek officials were also received by Algerian President Liamine Zeroual.

[12] Kaklamanis briefs German MPs on Greek-Turkish relations

Athens, 22/10/1997 (ANA)

Mr. Kaklamanis told the visiting deputies that relations between Athens and Ankara had worsened of late due to the recent spate of Turkish aggression which culminated in the harassment by Turkish warplanes of the aircraft carrying National Defense Minister Akis Tsohatzopoulos to and from Cyprus last week.

He stressed that Greece was following a policy of moderation and prudence without abandoning its known positions which were based on international law.

The parliament president called on the countries of the European Union to take a stance, given that the repercussions of a Greek-Turkish conflict would not be confined to the immediate region.

"We must confront Turkey's tactics with determination, to ensure that those chiefly among the neighbouring country's military leadership do not become so bold as to think that Europe can be blackmailed," he said.

The president of the German-Greek friendship group, Sigrid Skarpelis-Sperk, described the way in which Greece had dealt with the Turkish provocations as "an example of maturity", adding that respect for the borders of the countries of Europe was a prerequisite for Europe's very existence.

She also condemned the threat of force.

Ms. Skarpelis-Sperk also praised the role of the Greek Parliament in efforts towards democratization and the strengthening of democratic institutions in neighbouring countries, stressing that Greece could play the role of intermediary between the EU and Balkan states.

[13] Bulgarian, Greek, Romanian FMs to discuss regional projects

The Bulgarian government Monday approved the positions of the Bulgarian delegation for the upcoming trilateral meeting of the foreign ministers of Bulgaria, Greece and Romania on October 23 in Sinaia, Romania, the government's press office said.

This is the third forum to be held in the framework of the trilateral contacts after the talks of the three foreign ministers in Greece and in Varna, Bulgaria in 1996.

On the agenda will be the enlargement of the EU and NATO, infrastructure projects in the region, trade and economic relations among the three states, modernization of border check-points and the fight against organized crime.

The meeting will also make a review of the progress on the implementation of the projects for trans-border co-operation with the assistance of the INTERREG and PHARE programs.

The Bulgarian delegation is expected to raise the problem about the construction of a second bridge across the Danube river and to ask for Greece's support in financing the project in the framework of the European Union.

[14] Patriarch continues busy schedule of events in Washington

Washington, 22/10/1997 (ANA/A. Kourkoulas)

The dinner was held at the main hall of the Washington library and attended by several US Senators, Congressmen, ambassadors and leading members of the expatriate Greek community in the US.

In his address, Mr. Bilington referred to the Greek spirit that inspired the library, the world's largest, while Vartholomeos in his reply referred to Fotios, an early Christian Church father, who had referred to ancient Alexandria's library, the world' s largest in antiquity, as a "healing centre of the soul."

Yesterday morning, Greece's ambassador to the US Loukas Tsilas held a breakfast at the embassy in the Patriarch's honour.

In his address, Vartholomeos criticized the abuse of power, especially by the state.

The breakfast was attended, by among others, Turkey's ambassador to Washington Nuzet Kandemir.

[15] Congressional distinction

Athens, 22/10/1997 (ANA)

The medal has been awarded to religious leaders only four times in its history, and it is the first time it has been awarded to a Greek Orthodox.

The ceremony was addressed by US House Speaker Newt Gingrich (R-Georgia), who held a dinner in the Patriarch's honour.

[16] Delors package funds can't be entirely re-allocated, Commission says

Brussels, 22/10/1997 (ANA/G. Daratos)

According to well-informed Commission sources, Greece proposed withdrawing funds for the Thessaloniki metro because no progress has been made on it, as well as the Acropolis Museum because the European Investment Bank (EIB) will fund the project instead .

The funds can be reallocated to other projects.

The commission also accepted the proposal that the planned Attica peripheral road linking the capital with the planned Athens airport at Spata could be included at this date to the CSF funds. The CSF funds cover the period from 1994 to 1999.

The Commission, however, rejected additional proposals by Greece that funds not absorbed by their respective projects could not be reallocated.

According to the sources, the funds should not only not be withdrawn, but the rate of construction should be intensified. These include the Egnatia motorway spanning the breadth northern Greece, funds of which the government wanted to revoke (100 billion drachmas); natural gas networks for average and low pressure (selected projects, totaling close to 135 billion drachmas); the Athens-Patra-Thessaloniki road and the Athens-Thessaloniki railway line, among others.

[17] Earthquake hits central Greece, no damage reported

Athens, 22/10/1997 (ANA)

Its epicentre was 180 km northwest of Athens and north of Lamia.

[18] EDHK leader Ioannis Zigdis dies

Athens, 22/10/1997 (ANA)

Zigdis had recently suffered a heart attack and was being treated at an Athens hospital.

His funeral, to be held with state expenses, will take place tomorrow in his hometown of Lindos, on the island of Rhodes. Before being transported to the island, his body will lay in state at the Athens Metropolitan Cathedral.

Zigdis was born on Rhodes in 1913 and studied Economics and Politics in Athens, before earning a post-graduate degree at the London School of Economics in 1940.

He had participated in the struggle for the liberation of the Dodecanese, as well as on the Macedonian Front in World War II and with Greek troops in the Middle East, while his war activity earned him two medals.

From 1946 Zigdis was chairman and director in various national committees and councils. From 1964 to 1967 he was a member of the advisory convention of the Council of Europe, and in 1966 a member of the NATO Parliamentary Committee.

During the military junta (1967-74), he was arrested and exiled to Folegandros and Syros islands. In April 1970 he was convicted by a military court for having given an interview with the daily "To Ethnos", where he said he favoured a government of national unity. He was held at the Korydallos prison until 1973.

In 1977, Ioannis Zidgis took over the leadership of the EDHK party and ran in Parliamentary elections as a leader until 1989.

President of the Republic Kostis Stephanopoulos expressed his deep sorrow at the death of Ioannis Zigdis, whom he described as "a political man with many years of activity."

Prime Minister Costas Simitis also expressed his condolences, saying that the political figure "was a veteran fighter for democracy."

Political figures from both the ruling party and the opposition expressed their sorrow at the death of the veteran politician, stressing his positive qualities as an honest, considerate and consistent man.

[19] Constitutional revision committee sessions open to press

Athens, 22/10/1997 (ANA)

All parties agreed "the political and democratic legitimization of revisions must be based on well-informed citizens".

The provisions to be discussed have been divided into thematic units, beginning with individual and collective rights, and then moving on to European Union, the president of the republic, the electorate, Parliament, justice etc.

The main opposition New Democracy party and the Communist Party of Greece (KKE) disagreed with a government proposal for a conference where academics would submit their views.

Meanwhile, speaking at a press conference, former ND defense minister Ioannis Varvitsiotis presented several proposals of his own for Constitutional revision, including introduction of incompatibility between the offices of deputy and minister, the broad use of referenda, and the establishment of a Council of the Republic, a new directly elected organ with special responsibilities that would be supplementary to office of the president.

PASOK's rapporteur, Culture Minister Evangelos Venizelos, who is also a constitutional law professor, later expressed his opposition to Mr. Varvitsiotis' proposals.

Regarding the idea for the complete separation of the offices of deputy and minister, Mr. Venizelos said "it is difficult to consider the French experience as positive, and it is, at any rate, far-removed from the Greek institutional tradition and the experience of most European countries".

He also expressed the view that the dilemmas often posed in referenda tended to a detrimental effect on the search for broader consensus.

The committee is expected to complete its sessions in May 1998.

[20] EU farm ministers' council approves compromise on durum wheat policy

Brussels, 22/10/1997 (ANA/P. Pantelis)

Greece voted against the proposal.

According to the Council's decision, the maximum guaranteed arable land for durum wheat in Greece was set at 617,000 hectares. Producers of durum wheat in traditional areas of cultivation will receive a EU subsidy of ECU344.5 per hectare.

In 1997, about 580,000 hectares were used for durum wheat cultivation in Greece, which means that after yesterday's decision, the country has the right to cultivate 37,000 hectares more next year.

Agriculture Minister Stephanos Tzoumakas voted against the proposal, saying that the rise in arable land for durum wheat was combined with the abolition of producers' personal rights.

The Union's farm ministers also discussed a document by the European Parliament regarding the strengthening of the Union's forestry policy.

Mr. Tzoumakas stressed that as far Mediterranean countries are concerned, special emphasis should be placed on the major problem of forest fire protection, as well as soil erosion.

[21] Premier to inaugurate Thisavros hydroelectric project

Athens, 22/10/1997 (ANA)

The total annual amount of electric power expected to be produced by the project is about 1,400 GWh, while at least 570,000 cubic metres of water will be available for irrigation every year.

DEH completed an integrated study of environmental repercussions in the wider Nestos River basin and committed itself to implement all restoration works proposed in the study.

The value and contribution of these works to the development of eastern Macedonia and Thrace is reflected by electric power production in the cleanest form, irrigation of thousands of acres of land, road communication for distant and underdeveloped regions and creation of jobs.

[22] European Parliament adopts call to action on unemployment

Strasbourg, 22/10/1997 (Reuters/ANA/C. Haralambopoulos)

The proposal is to be presented to the Extraordinary Summit on Employment on November 20 and 21 in Luxembourg.

Unemployment is the main problem facing the European Union today. There are 18 million unemployed, representing 10.8% of the working population in 1997, of whom 5% have been unemployed for over a year. On average, more than 20% of young people, 12.7% of women and 9.4% of men are victims of unemployment.

The Europarliament's view is that unemployment should be decreased to 7% within the next few years, with a 50% reduction in unemployment among young people within the next three years.

It proposes that 50% of structural resources should be made available for vocational training, research and technological development.

President-in-office of the European Council, Luxembourg Prime Minister Jean Claude Juncker has expressed the Council's determi-nation to increase co-operation with the Europarliament in order to find the necessary funds.

In a letter to the President of Parliament, he has called for the support of the Eurodeputies in finding the resources needed to finance an employment initiative. He is asking Parliament, at its first reading of the 1998 budget, to make proposals which will facilitate a decision by the Council on this issue.

[23] Greece to see tough 1998 budget

Athens, 22/10/1997 (ANA)

"Europe is waiting for us to join the single currency especially after the European Commission's projections of a Greek budget deficit smaller than 3% of GDP," Mr. Papantoniou said.

Containing the budget deficit was the government's priority in drafting the 1998 budget. This would be achieved by putting a lid on public spending and implementing a policy of part-floating profitable public enterprises on the stock market, he said.

The budget would be based on a rationalized incomes policy, a tight hiring policy in the public sector and an equitable increase in tax revenue. It would be presented to parliament in the middle of next month, ahead of the November 30 deadline under the constitution, Mr. Papantoniou said.

[24] Greece to change taxes in 1998 budget

Athens, 22/10/1997 (ANA)

Mr. Papantoniou was speaking to reporters after meeting Prime Minister Costas Simitis and senior economy officials. He said that the taxes had been decided, but did not name them.

Key figures in the 1998 budget had been finalized and emphasis was placed on cuts in spending by modernizing and part-privatizing state utilities from 1998 to 2000, Mr. Papantoniou said.

The budget aims to meet targets set in the Maastricht treaty to converge EU economies.

Curbs on public sector hiring would also be imposed, Mr. Papantoniou said.

According to government sources, the special taxes the government will adopt next year in order to raise 260-290 billion drachmas, are as follows:

- Changes in criteria to determine the presumed income of merchants and the self-employed, leading to a tax hike

- A rise in real estate values used by tax authorities effective January 1, leading to a tax hike in property transfers, contributions to charity etc.

- A change in the scale for withholding tax on salaries, leading to tax increases mainly for middle and high wage earners

- Imposition of a 0.3 percent tax on the sale of shares at the Athens Stock Exchange

- A rise to 0.3 percent from 0.2 percent of a tax on mutual fund assets

- An increase to 40 percent from 35 percent of the tax on unlisted SA companies

- Introduction of a monthly tax on mobile phones of either 1,000 drachmas or 2,000 drachmas, due to be decided next week

- An increase in presumed income levels for ownership of private vehicles, motorcycles and pleasure craft.

[25] OA gets state go-ahead for fleet renewal

Athens, 22/10/1997 (ANA)

Speaking to reporters after a meeting with Prime Minister Costas Simitis, Mr. Mantelis said that the ministry had asked the civil aviation authority to submit proposals on changing the legal status of the organization to give it more autonomy.

[26] Greek state telecom raises charges

Athens, 22/10/1997 (ANA)

OTE's chairman Demetris Papoulias told reporters that the rise would be imposed only on local calls, which were currently among the cheapest in Europe, and on standing charges.

However, charges for long-distance and international calls and new connections would be reduced.

The cost of a long-distance call will fall by 8.14 percent a minute, European calls would be 2.9 percent cheaper, and rates on calls to Canada, USA and Australia would drop by 15 percent.

[27] Greece seeks transparency in grants to local gov't

Athens, 22/10/1997 (ANA)

Speaking after a meeting with Prime Minister Costas Simitis, Mr. Papadopoulos said it had been agreed that the allocation of special funds to local authorities would be discussed at a regular cabinet meeting on Friday.

He said that a plan to merge local authorities had secured funding.

The "Kapodistrias" plan, which is due for discussion by a parliamentary committee, has sparked protests by local government officials.

[28] Greek stocks end down in new round of pressure

Athens, 22/10/1997 (ANA)

Traders expect the market to maintain a lasting downward correction until mid-November when the government is due to present its 1998 budget.

The general index closed 0.77 percent lower at 1,732.53 points with all sector indices losing ground.

Banks fell 0.78 percent, Insurance eased 0.11 percent, Leasing dropped 0.57 percent, Investment fell 0.18 percent, Construction dropped 1.12 percent, Industrials were 0.68 percent off, Miscellaneous eased 1.38 percent and Holding was 1.49 percent down.

The parallel market index for small cap companies ended 0.39 percent off.

Trading was moderate and turnover was 17.6 billion drachmas.

Broadly, decliners led advancers by 163 to 68 with another 21 issues unchanged.

Kardico, Tria Alpha, Ideal and Kambas scored the biggest percentage gains, while Fourlis, Etma, Pairis, Sanyo and Britannia suffered the heaviest losses.

National Bank of Greece ended at 31,000 drachmas, Ergobank at 19,000, Alpha Credit Bank at 20,640, Delta Dairy at 4,020, Titan Cement at 15,900, Intracom at 16,000 and Hellenic Telecommunications Organization at 6,600.

In the domestic foreign exchange market the US dollar was fractionally higher against the drachma, while sterling scored big gains following a trend in international markets.

[29] Greece's Unitrade Air Cargo to link Thessaloniki with CIS

Athens, 22/10/1997 (ANA)

The company's chairman, Erofili Pantelidou, said yesterday that Unitrade had finalized agreements for the transportation of cargo shipments to 43 cities in Russia and other countries in the Commonwealth of Independent States.

Speaking at a reception to celebrate 150 regular cargo flights on the Thessaloniki-Moscow-Thessaloniki route, Ms. Pantelidou said that most of the cargo was furs and leather products from western Macedonia.

[30] Turkish immigrant smuggler sentenced to 10 years

Athens, 22/10/1997 (ANA)

He was identified as Mustafa Ali Ozturk, 30, from Izmir.

Ozturk was later sentenced by a three-member Samos court to ten years' imprisonment and a fine of 8.3 million drachmas, after confessing to transporting the immigrants, including 17 children, who paid him 100 dollars a head.

Most of the immigrants were in bad physical and mental condition and were taken to Samos hospital.

Ozturk had jumped overboard to avoid arrest as he was disembarking the illegal immigrants. He was arrested after local fishermen alerted the coast guard as he tried to sell his boat.

[31] Oil smuggling, adulteration mushrooms, gov't official says

Athens, 22/10/1997 (ANA)

Mr. Kanellopoulos, who is responsible for the ministry's division on investigation of financial crimes, said that the government lost more than 50 billion drachmas in 2,000 cases of oil smuggling investigated in the last two years.

He also said that 7,500 cases have been reported to date of companies and individuals who have profited from oil smuggling.

The ministry plans to investigate an additional 10,000 cases, he added.

[32] Lack of preparation in Dornier crash-landing, report says

Athens, 22/10/1997 (ANA)

According to the report released yesterday, important information that should have been available was sought at the last minute, after the breakdown of the aircraft's forward landing gear.

The report attributes blame for the incident to four employees of the civil aviation service - the head of aviation control, the acting airport director and the heads of the technical maintenance department.

All four are to face a disciplinary committee.

The transport ministry has also ordered that the "emergency plan" be adjusted according to each particular case and for regular drills to be held of all emergency procedures, particularly those involving more than one service.

It also calls for all those responsible for airports around the country, both civil and military, to be briefed on all available emergency procedures.

End of English language section.

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