Athens News Agency: Daily News Bulletin in English, 97-11-11

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

ATHENS NEWS AGENCY BULLETIN (No 1337), November 11, 1997

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

CONTENTS

[01] Gov't-brokered labor agreement accepted by GSEE with one-vote margin

[02] ... ND reaction

[03] EU set to push Ankara for improved Greek-Turkish relations

[04] G. Papandreou

[05] Pangalos stresses that Mideast peace process must continue

[06] Gov't on latest Iraqi crisis

[07] Gov't comments on Holbrooke's Cyprus visit

[08] Turkey's last-minute conditions on Cyprus issue

[09] Pangalos visit to Spain

[10] Tsohatzopoulos meets with Hungarian counterpart

[11] Greek, Albanian police co-operate

[12] Kaklamanis begins official tour in Germany

[13] Thessaloniki hosts UN conference on public administration

[14] Karamanlis addresses EPP congress in Toulouse

[15] Skandalidis sues 'Men' over fake letter

[16] Tzoumakas represents Athens at FAO meeting

[17] PASOK, Synaspismos meeting today to discuss 'understanding'

[18] ... Constantopoulos

[19] Inquiry under way into claims of far right activity in police force

[20] Controversial cassette suspends riot police squad chief

[21] Five community leaders arrested in wake of TVX protests

[22] Gov't budget consultations continue

[23] Pressure on drachma appears to be decreasing

[24] Greek equities end at seven-month low

[25] Business congress urges Greek investments in Romania

[26] Bank of Greece reported to increase liquidity

[01] Gov't-brokered labor agreement accepted by GSEE with one-vote margin

Athens, 11/11/1997 (ANA)

However, merchants and handicraftsmen belonging to the General Confederation of Small Manufacturers and Professionals (GSEBE) did not ultimately sign the agreement, demanding abolition of objective criteria as a precondition.

Earlier, differences within the unions' ranks created a deadlock at the General Confederation of Wor-kers of Greece's (GSEE) administration plenary, since the agreement was ratified with 22 votes in favor and 22 against, necessitating the use of the GSEE president's "double vote", something anticipated by the trade union organization's charter.

The deadline was reached after the entire opposition, including main opposition-affiliated grouping DAKE, the Communist Party of Greece-affiliated ESAK and the grouping affiliated to the Coalition of the Left and Progress, opposed the agreement, while disagreements also surfaced in the PASOK-affiliated PASKE grouping, depriving it of a majority.

Labor and Social Insurance Minister Miltiades Papaioannou promised that clauses limiting auxiliary pensions to 20 per cent of pensionable income will not be applied as of Jan. 1, 1998. He also promised positive handling of GSEE's claim for pensioning after 35 years' of work or 10,500 daily work stamps, without the precondition of an age limit, but admitted that, unavoidably, there will be a certain age limit.

Consequently, the gradual increase in the age limit which would be effective as of Jan. 1 is abolished, while it is considered most possible that there will be settlements in age limits in accordance with conditions prevailing in each labor sector.

Moreover, the exemption of low-pension earners from the 1 per cent extraordinary contribution will be extended up to the amount of 120,000 drachmas. All these issues will be discussed in greater detail at today's meeting between Mr. Papaioannou and GSEE .

On his part, National Economy Minister Yiannos Papantoniou said the budget will offer taxation relief for low salary earners and pensioners which will "partially cover" GSEE's claims.

Complete coverage, with an increase in the taxation - free amounts and the indexation of scales is not feasible, he said, under the present conditions of the economy and following the economic crisis.

Addressing the Federation of Greek Industries (SEB), Mr. Papantoniou offered assurances that there will be no extraordinary taxation on the reserves of businesses, adding that he has rejected relevant proposals.

Mr. Papantoniou conceded that taxation percentages for capital in Greece are high and did not rule out the possibility of them decreasing in the years to come. Lastly, on the question of merchants and handicraftsmen, Mr. Papantoniou said that objective criteria will be abolished by the year 2000.

Mr. Papantoniou said yesterday's agreement is the beginning and not the end and called on social partners to agree to a prolonged dialogue.

The government commits itself to implement immediately, with legislative interventions, all points ultimately agreed.

[02] ... ND reaction

Athens, 11/11/1997 (ANA)

[03] EU set to push Ankara for improved Greek-Turkish relations

Brussels, 11/11/1997 (ANA - M. Spinthourakis)

This is deduced by the discussion on the issue of Turkey by the EU's 15 foreign ministers during a dinner in here yesterday.

In a statement to the ANA, Luxembourg Foreign Minister Jacques Poos said Turkey must move ahead and take certain steps in the direction of decisions taken in the latest EU-Turkey Association Council meeting.

"For example, it is not possible for Turkey to claim its participation in the European Conference and in parallel to obstruct the European course of another candidate-country, namely Cyprus," Mr. Poos said.

The Italian foreign minister told the press that for the time being Turkey does not appear prepared to take certain goodwill steps. According to reports, a similar view was expressed by EU Commissioner Hans van den Broek, who presented his conclusions from his recent visit to Ankara.

On the other hand, the German and British foreign ministers backed the possibility of Turkey's participation in the European Conference, even under conditions which are doubtful whether Turkey would accept, particularly in connection with the German proposals.

Indicative of the atmosphere prevailing in Brussels yesterday was the Council's decision not to have the EU-Turkey Association Council convene on Nov. 24, but have a dinner held between the "15" and their Turkish counterpart, and during which all the is sues related to the EU's relations with Turkey will be discussed.

Speaking to Greek reporters, Foreign Minister Theodoros Pangalos stressed the "climate of disappointment" prevailing at the Council due to Turkish intransigence, adding that Greece "does not wish to harm Turkey's relations with the EU" but expects Turkey to respond positively to what is mentioned on the improvement of its relations with Greece and the EU in the joint position set out by the "15" during the latest EU-Turkey Association Council.

Mr. Pangalos said Greece is facing the issue of Turkey's relations with the EU "on the basis of principles and not as bargaining with Turkey."

He also said that on the question of the wisemen committees, this could only be feasible provided that Turkey decided to clarify with a letter by its committee its own views on the Greek letter.

Mr. Pangalos said he briefed his counterparts on the results of the meeting held in Crete between the Prime Ministers of Greece and Turkey, Costas Simitis and Mesut Yilmaz, respectively, stressing that nothing substantive was produced, as well as on the results of the Balkan Summit which, he said, his counterparts termed a positive event of particular significance.

Statements by EU Council President Mr. Poos shortly after yesterday's session moved in the same direction.

Also the Council decided that the relations between the EU and Turkey and the issue of the Union's enlargement be discussed at the special EU summit to be held this month.

Germany yesterday accepted Turkey's participation in the proposed European Conference but suggested the creation of an enlargement committee which would deal with accession talks with aspirant countries, and in which committee Turkey would not be included.

Commenting on this suggestion, Mr. Pangalos said it was a suggestion which might possibly satisfy the Turkish government but substantively leaves Turkey outside pre-accession consultations.

However, Mr. Pangalos reiterated that Greece maintains its position that pre-accession negotiations must start simultaneously with Cyprus and the 10 countries of central and eastern Europe.

[04] G. Papandreou

Athens, 11/11/1997 (ANA)

Greek diplomatic sources said that there was a convergence of views concerning EU-Turkey relations. According to the sources, the two sides agree that accession talks in the present phase should start with Cyprus and east European countries.

[05] Pangalos stresses that Mideast peace process must continue

Brussels, 11/11/1997 (ANA - M. Spinthourakis)

Mr. Pangalos mentioned that the peace process has been led to deadlock with responsibility falling on Israel.

"The EU has a proposal which Mr. (Jacques) Poos will convey tomorrow, who will visit Israel, and this proposal is to undertake the construction of the airport and the port in Palestinian territory with the necessary security conditions which the Israelis possibly request," he said.

[06] Gov't on latest Iraqi crisis

Athens, 11/11/1997 (ANA)

[07] Gov't comments on Holbrooke's Cyprus visit

Athens, 11/11/1997 (ANA)

Commenting on a visit by special US presidential envoy Richard Holbrooke to Nicosia, Mr. Reppas said that recent statements by Turkish Foreign Minister Ismail Cem showed Turkey was moving in the wrong direction, since the self-styled "Turkish republic of northern Cyprus" was not recognized by any state expect Turkey.

Mr. Reppas said that Cypriot President Glafcos Clerides had repeatedly stated his agreement to discuss the manner in which Turkish Cypriots could participate in Cyprus' delegation to negotiate the island republic's accession to the European Union. Unfortunately, he added, reactions to this proposal had been negative to date, leading to the isolation of the Turkish Cypriot community.

He also said that depending on developments in Cyprus, US State Department special coordinator for Cyprus Thomas Miller might visit Athens within the next few days.

Mr. Holbrooke is expected to hold a joint meeting with Mr. Clerides and Turkish Cypriot leader Rauf Denktash today.

Only Ankara recognizes the Turkish Cypriot pseudo-state, illegally declared in 1983, while maintaining some 35,000 soldiers in the occupied areas.

[08] Turkey's last-minute conditions on Cyprus issue

Istanbul, 11/11/1997 (ANA - A. Kourkoulas)

"If the 'Turkish Republic of Northern Cyprus' is not recognized as a state then there can be no progress in resolving the Cyprus issue," Mr. Cem is said to have told the Anadolu news agency upon returning from the Turkish-occupied sector of the island republic.

Turkish Cypriot leader Denktash told the Turkish daily "Cumhurriyet" that proposals expected to be made by Mr. Holbrooke regarding the participation of Turkish Cypriots in European Union accession negotiations would not be accepted.

"Our participation in the negotiations without our flag and our emblem would mean acceptance of the illegal demand made by the Greek Cypriots using the false title of representatives of the whole of Cyprus and that is impossible," he maintained.

Mr. Denktash also dismissed the view that Washington could impose sanctions if the Turkish Cypriots adopted such an intransigent position.

"It is Turkey that supports us and not the US, that do not have the power to impose sanctions against us," he said.

[09] Pangalos visit to Spain

Athens, 11/11/1997 (ANA)

Mr. Pangalos will hold talks with his Spanish counterpart Abel Matutes and the foreign affairs parliamentary committee.

He will also be received by King Juan Carlos of Spain.

Mr. Pangalos' talks in Madrid will cover European and bilateral issues. The Greek foreign minister will also visit Barcelona.

[10] Tsohatzopoulos meets with Hungarian counterpart

Budapest, 11/11/1997 (ANA)

Mr. Tsohatzopoulos stressed that the prospect of Hungary's membership in NATO was linked to its admission also in the European Union. He added that all European peoples had a rational demand to participate in prosperity and progress, on the one hand, an d on the other to design the terms of a collective security and co-operation.

Mr. Tsohatzopoulos also briefed Mr. Keleti on the course of Greece's relations with Turkey.

The Hungarian defense minister said he was in favor of his country's admission into NATO's southern wing, but stressed that the decision would be taken by the government.

The two ministers also decided that Greece and Hungary exchange military expertise at a technical level.

This afternoon, Mr. Tsohatzopoulos will be received by Hungarian President Arpad Goucz.

[11] Greek, Albanian police co-operate

Athens, 11/11/1997 (ANA)

Following the meeting, the Greek officials led by Epirus Police Inspector Brigadier Ilias Krokidis, visited police stations in Albania.

[12] Kaklamanis begins official tour in Germany

Bonn, 11/11/1997 (ANA - P. Stangos)

Speaking to reporters, Mr. Kaklamanis confirmed what he called "a significant improvement" in Greek-German relations, noting that "factors which posed problems, such as the Balkan situation, have now changed..."

He further stressed that "Greece was a factor of stability and solution of these problems" and that "Germany had now adjusted its policy on more realistic grounds."

At the same time, the Greek parliament president expressed a hope that Bonn will act similarly in relations between the EU and Turkey, assessing that "impressions of what he called an irrational pro-Turkish stance "were incompatible with the essence of German policy and lead to confusion."

Mr. Kaklamanis will spend the day in the Bavarian capital before traveling to Stuttgart.

On Wednesday and Thursday he will be in Bonn for talks with the country's political leadership and representatives of political parties. Apart from official talks with his counterpart, Mr. Kaklamanis will also meet Foreign Minister Klaus Kinkel and the Minister of the Chancellery, Friendrich Boell.

His next stop will be Berlin on Friday, where he will meet the head of the German senate and the city's governor-mayor.

[13] Thessaloniki hosts UN conference on public administration

Athens, 11/11/1997 (ANA)

Mr. Papadopoulos said the aim of the conference was to study the role of increased professionalism and ethics in public administration.

Prime Minister Costas Simitis will speak at a dinner for the participants, which will include representatives of the European Commission, the OECD, the World Bank and the European Investment Bank, on the opening day of the conference.

[14] Karamanlis addresses EPP congress in Toulouse

Toulouse, 11/11/1997 (ANA - A. Panagopoulos)

The EPP, looking into policies to tackle unemployment and the European Union's expansion, seems to adopt a similar policy, though no final position has been taken.

Replying to a question during the congress' second day, Mr. Karamanlis said it was impossible to have the same criteria for all EU countries, since salary levels were not the same.

He used the example of Greece, where as he said, salaries have been almost frozen for some years and they should not be lowered.

Commending on the proposals put forth by the EPP leaders, relating to the numeration of targets concerning unemployment, Mr. Karamanlis said he was not opposed to that but "it is not enough".

He once again stressed that the EU should not only propose ideas to deal with the problem of unemployment, but it should make funds available towards this direction.

[15] Skandalidis sues 'Men' over fake letter

Athens, 11/11/1997 (ANA)

Mr. Skandalidis says the letter, dated January 12, 1995, is a forgery and that an attempt is being made against "the spirit of PASOK". The letter includes comments critical of current Foreign Minister Theodoros Pangalos.

He told journalists that whoever was trying to cause a rift within PASOK was doing so in vain.

Later, government spokesman Demetris Reppas dismissed rumors regarding the possible publication of even more letters from the files of the late premier as not worthy of attention.

"The government is dealing with the real problems of the Greek people," said Mr. Reppas.

He said that "forces outside PASOK" (interpreted as a reference to Demetra Liani-Papandreou) who were thinking of trying to break up the ruling party would be disappointed.

Commenting on a statement by the late premier's widow that the party was harming Papandreou's memory, the spokesman said that by winning the last elections and by successfully governing the country, the party was doing its founder the greatest honor.

[16] Tzoumakas represents Athens at FAO meeting

Rome, 11/11/1997 (ANA - L. Hatzikyriakos)

The Greek minister in his speech to the meeting referred to the two serious problems facing the organization today, namely, its policy and budget as well as the action program of the World Conference on Diet. He stressed that FAO should remain an international forum with substantial responsibilities and its main aim should remain a sustainable development of farmlands and world food safety. On the sidelines of the FAO meeting, Mr. Tzoumakas met his Albanian counterpart Loufter Tzouveli. Discussion between them focused on the course of Greece's agriculture in the past 20 years and the European Union experience in the sector.

The Albanian minister expressed his interest in an agricultural co-operation with Greece, and within that framework, the two men decided to hold regular meetings at an experts' level.

A similar discussion was held between Mr. Tzoumakas and the Hungarian Agriculture Minister Fricis, during their half-hour meeting.

[17] PASOK, Synaspismos meeting today to discuss 'understanding'

Athens, 11/11/1997 (ANA)

Demetris Reppas said. He said that the issue of "an understanding" between the two parties ahead of the municipal elections next year would be discussed at the meeting.

Mr. Reppas said the possibility of Synaspismos deputy Maria Damanaki standing for the post of Athens mayor with the joint backing of PASOK and Synaspismos would be discussed by PASOK's bodies.

[18] ... Constantopoulos

Athens, 11/11/1997 (ANA)

The Synaspismos leader said Mr. Reppas' statement revived older proclamations by Prime Minister Costas Simitis and showed that the government was seeking reassurance of its policy at its own expense in a manner of partisan and political authoritarianism.

He further said that the statement set a weak framework for today's meeting between the PASOK and Synaspismos delegations.

Ms Damanaki, meanwhile, appeared disturbed and especially reserved yesterday, as far as her candidacy for the Athens munici-pality is concerned.

She stressed her candidacy should not be undermined and asked for support from both parties.

[19] Inquiry under way into claims of far right activity in police force

Athens, 11/11/1997 (ANA)

Later, government spokesman Demetris Reppas said the government was awaiting the results of the inquiry, which was expected to shed light on the recent violence directed by protesters against a Greek-Turkish business symposium in Thessaloniki and on claims that police were mistreating illegal immigrants.

If these charges are proved, Mr. Reppas said, the necessary measures will be taken.

[20] Controversial cassette suspends riot police squad chief

Athens, 11/11/1997 (ANA)

According to reports, MAT head Spyros Koutroumanis, who is shown on the video cassette, as well as other police officers on the tape were placed under discreet surveillance after the cassette was handed to Mr. Romeos.

Similar action is expected against the other officers shown in the video and after an investigation.

[21] Five community leaders arrested in wake of TVX protests

Athens, 11/11/1997 (ANA)

Police said the community leaders of Varvara, Olympiada, Ano Stavros and Kato Stavros as well as Asprovaltos were arrested for inciting and organizing the protests outside the TVX Hellas gold processing plant at Olympiada.

Several persons were injured in the fracas.

The demonstrators, who claim that the mining activities would have serious repercussions on the environment and tourism to the region, broke into the plant and set fire to two drilling rigs.

Tension mounted yesterday as a strong police contingent cordoned off the vicinity.

TVX Hellas, a subsidiary of the Canadian TVX Gold company, received the concession for exploitation of the Cassandra gold mines in March 1995 after international tendering. Under the privatization agreement, signed in December 1995, the 67-billion-drachmas investment is expected to create some 617 jobs.

"The incidents have created a serious problem regarding the investment," said Maria Tsoukatou, a spokeswoman for TVX Hellas.

She said the company would "wait to see what measures will be taken by the authorities before deciding on its next step".

In a later announcement, Development Under-secretary Anna Diamantopoulou said the TVX investment will proceed as scheduled, adding that the agreement will go ahead according to the nation's laws for development and protection of the environment.

The five were charged by the Polygyros public prosecutor with rioting, resisting arrest, bodily harm, property damage and disturbing the peace.

They told the press afterwards that the accusations were false and urged the government as well as TVX Hellas to sit down at the negotiating table to resolve the dispute.

Halkidiki Prefect Vassilis Vassilakis said that both the company and the demonstrators were responsible for yesterday's incidents. The company had been warned at the end of October to stop drilling, he said, adding that the demonstrators had also gone too far on Sunday.

The five municipal leaders have returned to their villages to brief residents and to consider their options. Meanwhile, the Thessaloniki-Kavala national highway remained closed yesterday at the Stavros intersection.

[22] Gov't budget consultations continue

Athens, 11/11/1997 (ANA)

Mr. Reppas said the budget would be the focus of discussions at the meeting of the inner cabinet and the ruling PASOK party's Executive Bureau today.

However, Mr. Reppas said, the general directions of the budget have been based on unanimous decisions already taken by government bodies.

Mr. Reppas said that government representatives were to meet yesterday with union and employer representatives, on the occasion of the completion of the six-month process of social dialogue.

He added that it was the government's goal that social dialogue become a permanent institution.

[23] Pressure on drachma appears to be decreasing

Athens, 11/11/1997 (ANA)

Local commercial banks are pleased to see drachma liquidity increasing and, consequently, they hope to find cheap available capital again soon for loans they provide.

Moreover, small capital inflows from abroad for fixing occurred (US$50 million by noon) and the drachma's parity with the ECU remained almost stable (309.9 drachmas compared to 310.4 on Friday), while its value against the dollar remained absolutely stable (269.8 drachmas as against 269.7 drachmas on Friday).

In a statement yesterday, National Economy Minister Yiannos Papantoniou stressed that the government will not remain complacent and is preparing for new monetary turbulence.

He said the Greek economy must be armed even further, as well as the drachma's exchange parity, which other countries are doing to weather upcoming turbulence.

Mr. Papantoniou said "pressures exist and will exist" because the expectation of international markets that the euro will be created in 1998 is creating monetary turbulence.

The international environment appears to being normalized, at least for the time being. Addressing the session of central bankers from the 10 most developed economies in Basel, Switzerland, Bundesbank President Hans Titmeyer said "the worst part of the crisis appears to have passed for the markets."

The ascertainment relieves the Bank of Greece, which has been shouldering the main burden of supporting the drachma in past days, raising a wall of high interest rates which, however, already have negative side-effects on the economy in general, the bud get being prepared and more specifically the commercial banks.

The question continuing to linger is if, and to what degree banks will pass on part of their losses onto consumers to offset their reduced profit-making due to the high cost of loans in the inter-bank market and their capital losses due to a decrease in the value of state bonds in their treasuries.

This probably means an increase from half to two percentage points in the entire interest rate spectrum.

A bonds auction which the finance ministry will organize on Friday will constitute a precedent for what will follow. If interest rates exceed 11.3 per cent, the most recent interest rate, it will be a certain front-runner for an increase in bank interest rates.

International monetary developments will have a decisive influence on an open and interdependent economy, such as that of Greece, and the final course of interest rates next year, affecting the entire structure of the Greek economy.

[24] Greek equities end at seven-month low

Athens, 11/11/1997 (ANA)

The general index lost 3.26 percent of its value to end at 1,463.38 points, breaking the 1,500 support level.

Traders attributed the sharp fall mainly to a persistent lack of buying interest and not so much to heavy sell orders. Investors remained sidelined awaiting the new budget, due on Wednesday, and proof of a final defusion of the recent monetary crisis.

Sector indices ended lower. Banks suffered the heaviest losses with a 5.20 percent drop reflecting market worries that the monetary crisis will hit bank profits.

On the domestic interest rate front the situation was further improved, but a small drop in interbank rates did not offer much consolation to the stock market.

Analysts said that it would take some time for interest rates to return to their pre-crisis levels and predicted that Greek banks would soon decide raising lending and deposit interest rates.

The FTSE/ASE index ended 3.85 percent lower at 850.46 points.

Trading was moderate with turnover at 17.7 billion drachmas.

Insurance fell 2.50 percent, Leasing dropped 2.41 percent, Investment eased 2.97 percent, Construction ended 3.26 percent down, Industrials fell 1.66 percent, Miscellaneous fell 2.60 percent and Holding was 3.27 percent down.

The parallel market index for small cap companies was 3.40 percent lower.

Broadly, decliners led advancers by 189 to 26 with another 13 issues unchanged.

Zampa, Papoutsanis, Lambropoulos, Levenderis scored the biggest percentage gains at the upper limit of 8.0 percent, while Alcatel, Ermis, Dane, Bank of Athens and Fourlis suffered the heaviest losses.

National Bank of Greece ended at 27,250 drachmas, Ergobank at 15,005, Alpha Credit Bank at 16,850, Delta Dairy at 3,600, Titan Cement at 13,500, Intracom at 12,290 and Hellenic Telecommunications Organization at 5,710.

[25] Business congress urges Greek investments in Romania

Athens, 11/11/1997 (ANA)

The two-day congress was aimed at getting Greek cooperatives and businesses together with Romanian importers and exporters.

Addressing the congress, the Romanian agriculture minister urged Greek companies to provide their Romanian counterparts with the necessary know-how and asked Greek authorities to help in the exchange of practices.

The Romanian industry minister, on his part, stressed a new industry and commerce policy implemented by the new government in order to promote co-operation with western European countries.

He said that the government has implemented the necessary legislation to ensure foreign investments.

[26] Bank of Greece reported to increase liquidity

Athens, 11/11/1997 (ANA)

However, officials of the central credit establishment stressed that at the present phase, the Bank of Greece will continue to exercise a careful interest rate policy, the sole "weapon" capable of tackling profiteering raids on the drachma.

End of English language section.

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