Athens News Agency: Daily News Bulletin in English, 98-11-28

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Simitis-Clerides cover UN initiative, EU accession and defence issues

[02] Cenbank governor says inflation below 2.0 pct feasible by end- 1999

[03] New FYROM Parliament president visited by Greece's envoy

[04] Greece says Turkey gunning for `Ottoman A-bomb`

[05] Home News

[06] Kranidiotis to represent Athens at int'l conference on Mideast peace process

[07] Greek business delegation, V. Papandreou in Iran

[08] Greek ambassador in Kosovo

[09] Kurdish repressentative calls for Ocalan asylum in Athens, other EU capitals

[10] Gov't promises heightened scrutiny of police force

[11] Simitis opens PASOK pre-congressional dialogue

[12] Greek EU Commissioner wants change of date for PASOK`s congress

[13] Bail granted to four held responsible in fatal tugboat fire

[14] Economic News

[15] EU approves second phase of IDA telematics programme

[16] Athens Foreign Exchange

[01] Simitis-Clerides cover UN initiative, EU accession and defence issues

Prime Minister Costas Simitis and Cyprus President Glafcos Clerides yesterday held talks focusing on a fresh UN initiative of shuttle talks in Cyprus, the island republic's EU accession course and defence, especially on the proposed deployment of Russian- made anti-aircraft missiles in Cyprus.

Speaking after more than two hours of talks, Mr. Simitis indicated clearly that the Cypriot government would decide the fate of the missiles in consultation with Greece.

Mr. Clerides stressed that Cyprus is ready to defend itself if Turkey realises its threats against the island republic.

Both men underlined that arms purchases are not "an end in itself", pointing out that they fully back a peaceful resolution of the protracted Cyprus problem.

Asked if Cyprus and Greece will decide jointly about deploying the missiles on Greek soil, Mr. Simitis said "the Republic of Cyprus will decide and it is reasonable that these decisions are taken with prior consultation with Greece, to the extent that they relate to Greece, and Greece is involved in them."

Plans to deploy the S-300 Russian missiles on Cyprus have been criticised by the United States and European countries which say it will only increase tension.

Turkey has openly threatened that it will prevent deployment of the defensive missiles.

"We have said that neither Greece nor Cyprus has any interest in creating tension. Turkey does," the Greek premier said, noting that any defensive measures taken are solely for Cyprus' defence.

Mr. Simitis reiterated his government's commitment to a joint defence doctrine with Cyprus and said the missiles are part of Cyprus' effort to bolster its defences.

"We do not buy arms for the sake of arms but we want them to promote a settlement through peaceful and democratic means on the basis of UN decisions," he added.

The Greek premier recalled Mr. Clerides' proposal for the demilitarisation of Cyprus, which aims at reducing tension, as he said.

"We have agreed that we must continue all these efforts and we must continue them in such a way that we get results, which will consolidate peace in the region," he said.

Mr. Clerides endorsed all of Mr. Simitis' views and added "our effort has always been and is the peaceful resolution of the Cyprus question."

"If Turkey realises any threats (against us), let there be no doubt that we are ready and we shall defend ourselves," Mr. Clerides stres-sed.

Turkish troops have been occupying 37 per cent of Cyprus territory since 1974, in violation of repeated UN resolutions calling for their withdrawal.

Replying to other questions, Mr. Simitis called for patience to see how the UN talks progress and reiterated his government's wish for regional peace.

"Cyprus is working systematically to achieve a reduction in tension and everybody else must respond to this desire and this effort, this is our message," he added.

On Cyprus' EU course, Mr. Simitis welcomed the start of substantive membership negotiations as a positive move but acknowledged that there are some problems.

He said both Greece and Cyprus have answers to anybody who may have some reservations about Cyprus' European accession course. Attending the summit were the two countries' foreign and defence ministers, and other high- ranking officials.

Meeting with Karamanlis: Mr. Clerides and main opposition New Democracy leader Costas Karamanlis also met yesterday afternoon.

Mr. Karamanlis said after the meeting that ND fully supported Cyprus and Mr. Clerides' policy, adding that it was the island republic's "inalienable right to defend itself."

In the evening, the Cypriot president met with former ND premier Constantine Mitsotakis, who declared that Greece should at this moment show complete solidarity with Cyprus and any policy followed should be decided jointly.

Earlier in the day he met with former ND leader Miltiades Evert.

Mr. Clerides returns to Cyprus on Sunday evening.

Other opposition parties: In response to the Simitis-Clerides meeting, the Coalition of the Left and Progress (Synaspismos) refer-red to "negative effects from the self-entrapment of the Greek and Cypriot side with the incorrect decision for the purchaseIof the S-300 missiles."

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said Mr. Simitis and his government were "politically guilty", saying they were lacking in national strategy.

Finally, Political Spring leader Antonis Samaras said it was "obvious that Mr. Simitis is attempting to find a way out of the final decision" regarding the S-300s.

Athens News Agency

[02] Cenbank governor says inflation below 2.0 pct feasible by end- 1999

Athens 28/11/1998 (ANA)

Submitting an interim report on monetary policy to parliament, Mr. Papademos said an inflation figure below 2.0 percent by the end of next year was "feasible", and a decline in the first-half would be "swift".

The report is a supplement to the central bank's monetary policy outlook released in April.

Easing interest rates would be examined by the bank's monetary council the week after next, he said.

Parliament president Apostolos Kaklamanis, who received the report, said that the public had made painful sacrifices in anticipation of a healthier economy, with little complaint.

Mr. Papademos underlined the need for the continuation of current monetary policy until the inflation target was attained that would enable entry into European economic and monetary union by January 1, 2001.

The central bank's interim report said that the country's economic policy mix had improved and that incomes, monetary and fiscal policies were converging towards the same target.

At the same time, Mr. Papademos acknowledged that there were uncertainty factors that could influence the drive to lower inflation below 2.0 percent. The factors were offsetting the fiscal cost caused by lowering indirect taxes, and increasing use of consumer and housing loans.

The central banker said that there were also some external factors likely to influence monetary policy due to a global financial crisis springing from different parts of the world.

The report stresses the need for a coordinated and consistent macro- economic policy and the implementation of government measures to ensure safety margins.

It said the central bank had contributed to the government's anti-inflation drive by slowing the rate of growth of the money supply.

However, Mr. Papademos warned that total credit expansion remained at high levels because domestic banks were still financing the bulk of the budget deficit, and consumer loans were rapidly increasing, a development fuelling inflationary pressures.

He said the Bank of Greece would use its traditional monetary tools in the effort to contain inflation in 1999, and interest rates would follow core inflation downwards.

The central bank would also seek a strong drachma in the European Union's exchange rate mechanism.

The national currency's position so far above its central ERM parity had aided the anti-inflation drive, Mr. Papademos said in the report.

Athens News Agency

[03] New FYROM Parliament president visited by Greece's envoy

SKOPJE, 28/11/1998 (ANA - M. Vihou)

Afterwards, Mr. Mallias said he delivered a message of congratulations to Mr. Klimovski from Parliament President Apostolos Kaklamanis on his election to the post. The message mentions the will for bilateral relations to forge ahead for the creation of preconditions to enable all issues to be resolved.

Despite the courtesy nature of the meeting, Mr. Mallias said that talks were substantive, adding that confirmation wass provided that policy statements regarding Greece will be applied.

Mr. Mallias said that emphasis was placed on the development of economic relations, and particularly the attraction of Greek investors, as well as that specific measures were discussed to facilitate contacts.

He said the fact that the inauguration of a Greek enterprises exhibition, organised by Helexpo in Skopje (on Dec. 1-5), will take place on the same day that the new government will be formed is a pleasant coincidence.

Athens News Agency

[04] Greece says Turkey gunning for `Ottoman A-bomb`

Athens, 28/11/1998 (ANA)

He told the legislature that the planned construction of the plant on Turkey's southeastern Mediterranean coast and north of Cyprus, was fraught with problems because of the high level of seismic activity in the area, the out-dated technology chosen and because Turkey might use the plant to gain nuclear weapons.

"Turkey, of course, says the plant will not be used for this purpose, but it will not be the first time Ankara does something which it has expressly said it will not do," Mr. Pangalos said.

He was replying to a question tabled by main opposition New Democracy deputy Yiannis Varvitsiotis.

Mr. Pangalos said Athens was closely monitoring developments and had repeatedly intervened to the countries vying to sign a relevant contract with Turkey, namely, Germany and Canada, as well as to private agencies and public opinion in the countries involved.

The two top bidders for the contract are Atomic Energy of Canada Ltd. (AECL) P a federally-owned corporation P and Germany's Siemens.

Greece and Cyprus earlier this month agreed to join forces to protest Turkey's plans to build the power plant. Greece's Aegean minister, Elizabeth Papazoi, said the proposed plant would directly affect the environment and the tourist industry in the entire region, while only covering a future 4 per cent of Turkey's electrical power needs.

Eleven Greenpeace activists were detained in August during a protest against Ankara's plans outside the energy ministry in the Turkish capital.

Greenpeace says Turkish authorities have failed to take adequate steps regarding safety concerns, particularly deep-sea research to determine the status of a suspected fault line near the proposed site of Akkuyu Bay.

Fears about the site's safety increased after a strong earthquake in nearby Adana on June 27 killed more than 140 people.

In addition, noted Canadian environmentalist Dave Martin, research director of the Canadian environmental organisation "Nuclear Alert", said recently that the construction of a nuclear plant at Akkuyu, near an active seismic fault, would disrupt the nuclear balance in the Mediterranean region and pose a threat to the environment of enormous proportions.

The director of Turkey's Dokuz Eylul University geophysics faculty, Dr. Attila Ulug, told a conference in Istanbul last year that Ankara's plans to proceed with the construction of the plant without a seismological study was "absolutely irresponsible and criminal".

Athens News Agency

[05] Home News

Athens, 28/11/1998 (ANA)

In addition, the chief of the institution, Spanish Lt.-Gen Fernando Lesea, will meet with the Greek Chief of Staff, Gen. Athanasios Tzoganis.

Interior Minister Alekos Papadopoulos yesterday referred to what he called the government's aim at create a "multi-centred" society, during an address at a two-day conference at Delphi.

The minister added that the effort aims to better serve citizens.

Athens News Agency

[06] Kranidiotis to represent Athens at int'l conference on Mideast peace process

Athens, 28/11/1998 (ANA)

The decision to hold the conference was contained in the Wye River Memorandum interim peace accord signed by Israel and the Palestinians in the United States on Oct. 23.

The initiative for the conference, to begin next Monday, belongs to the US and aims at bolstering peace and development efforts in the region with aid totalling four billion dollars for the period 1999-2003.

The main aim of the conference is to make an initial assessment of the results of the US$3.7 billion of international aid to the Palestinians during the five-year period 1993-1998 and discuss the further development needs of the West Bank and Gaza Strip for the period 1999-2003.

During the period 1997-1998, Greek aid to the Palestinians was more than $4.3 million.

Athens News Agency

[07] Greek business delegation, V. Papandreou in Iran

Athens, 28/11/1998 (ANA)

Before her departure, Ms Papandreou, who is accompanied by a delegation of 22 business people and 13 reporters, told the IRNA news agency that "Iran and Greece have good relations, but of course, there is plenty of room to improve this relation in the economic and the political spheresIas you know very well, we buy oil from Iran, so there are possibilities to increase cooperation in the area of oil and the energy sectors.

"I have several meetings scheduled with Iranian ministers and officials, and I think it would be a very successful visit," she said.

More than 20 entrepreneurs representing major companies engaged in the food, energy, construction, metal works, tourism and fisheries sectors are heading to Tehran along with Ms Papandreou.

Athens News Agency

[08] Greek ambassador in Kosovo

BELGRADE, 28/11/1998 (ANA - M. Mouratidis)

The ambassador noted that time is a factor for the achievement of a political solution, while he stressed that the problems cannot be solved by violence, but with political dialogue.

Mr. Vlassopoulos also discussed the Greek participation in the Organisation for Security and Cooperation in Europe (OSCE) team of monitors.

The ambassador discussed the realisation of the peace accords, political and security conditions, while discussions also focused on the possibility of a population census, a basic precondition for democratic elections.

Athens News Agency

[09] Kurdish repressentative calls for Ocalan asylum in Athens, other EU capitals

Athens, 28/11/1998 (ANA)

During a press conference in Athens, Roshat Laser accused Turkey of trying to create dissension between the Kurdish and Turkish people through para- state gangs, while he reaffirmed her group's orientation towards a political settlement of the Kurdish issue. He also stressed the need for European Union countries to take initiatives in this directions.

Referring to talks of contacts between Mr. Ocalan and the Greek government on the granting of asylum prior to the Kurdish leader's arrival in Rome, Mr. Laser referred to clarifications the PKK leader will provide in the immediate future.

Replying to charges of "terrorism", the Kurdish representative conceded that during the Kurdish people's armed liberation struggle mistakes were made as well as unintentional offences.

"If our party, within the framework of its struggle, was obliged to use force, it did not do it because it loves force but because the Turkish state did not allow it a struggle of any kind," he said.

"And the choice of the PKK's President to come out to Europe paved the way for a political solution to the Kurdish issue. A solution which the Turkish state does not wish for and the mafia which has corroded it," he added.

Replying to a question on whether the truce proclaimed by the PKK on Sept. 1 is final or there is a possibility of a return to armed struggle, Mr. Laser said that "the continuation of the armed struggle will depend on the attitude of the Turkish state. For the time being, our struggle is also continuing at a political and military level."

Called on to refer specifically to the Greek government and Prime Minister Costas Simitis in relation to the latter's statements in favour of the right of political asylum being granted to Mr. Ocalan by Italy, the Kurdish representative said that Mr. Simitis' statements "were a very positive step although it was very late. However, what will fully express the feelings of the Greek people would be an invitation for the PKK's President to come to Greece and, of course, to other European Union countries as well."

"Greece has the strength to do this and to undertake relevant initiatives in the framework of the EU. Certain circles say that such an action would create aggravation in Greek-Turkish relations. However, the issue must be examined politically, the axis being the state of the Kurdish people," he said.

Athens News Agency

[10] Gov't promises heightened scrutiny of police force

Athens, 28/11/1998 (ANA)

"We are not going to give anybody a break", he said, adding that a relevant draft bill establishing an internal affairs division is expected to be voted into law next January.

On its part, the main opposition New Democracy (ND) party criticised the government for a lack of security in the Greek capital and said promises given about foot-patrols in Athens have not yet materialised.

The minister reiterated his decision to institute a "radical clean-up" in order to rid police of officers "who broke their oath", adding that the police patrols were going to be boosted with officers transferred from posts at prisons, airports and court duty.

Athens News Agency

[11] Simitis opens PASOK pre-congressional dialogue

Athens, 28/11/1998 (ANA)

"We must make the PASOK of the new era, just as society wants it, just as Greece needs it," he said.

Mr. Simitis said that an open and popular-based party must be created which will say no to the federation party, to trends and officials, but which will say yes to the waves of ideas, to open dialogue and to new collectiveness.

Preconditions set are the joint rallying and activation of all of PASOK's forces since, as he said, successes for PASOK will be based on the contribution of all and on new orientations, new positions and new pursuits.

Secondly, seeking a new "cultural policy" which will characterise operation and relations and where there is no position for behind-the-scenes infighting, segregations and party commendations.

Thirdly, the effort of achieving a new collectiveness which will not be interpreted as a multiple breakup. After the democratic taking of decisions everyone by himself cannot be found alone in their application or permanently disagreeing.

The promotion of social and age recomposition of the party tissue is renewal and meritocracy since, as he said, policy is not exercised with the logic of a hiring list but with positions and views being submitted. The recomposition of the entire party sector. He said that for this reason the course towards the congress must not allow the revival of the dividing lines of the previous congress, it must not cultivate morbid situations since, as he said, the previous congress now constitutes the distant past and the major challenges are found in the future. Mr. Simitis raised certain questions in the framework of democratic dialogue such as how policy will be produced and applied, how society will rally, which is the role of deputies and cadres in mass locations, how will organisations come alive and how will renewal be achieved.

Athens News Agency

[12] Greek EU Commissioner wants change of date for PASOK`s congress

Athens, 28/11/1998 (ANA)

In an interview with the private, Athens-based 'Mega' TV station, broadcast late Thursday, Mr. Papoutsis said that he would countersign now for a change in date of PASOK's congress after national elections in 2000, reiterating a proposal he made at a PASOK's central committee session that announced the congress.

He said he raised the proposal again to enable Greece to continue its effort unimpeded for accession to EMU, adding that he saw 2002 as the most suitable time since, as he claimed, the course of the Greek economy will be smoother, as well as Greek society's adjustment to EMU factors.

Replying to questions, Mr. Papoutsis said criticism from Foreign Minister Theodoros Pangalos is in the framework of "an intraparty rivalry" which started after PASOK's last congress.

He said that at the same time talks also started on who will occupy the post of Greek commissioner after his withdrawal. He added that "the leaking of a list of candidates constituted an undermining of his position".

Referring to his relations with the Greek government, he said that he was never summoned to attend discussions on issues of direct Greek concern which are discussed at the European Commission, adding that his other colleagues participate often in such meetings in their countries.

Mr. Papoutsis ruled out the possibility of being a candidate for PASOK's presidency at the next congress but did not rule out the pos-sibility of someone else claiming the position.

He said that the message sent by the municipal elections was very resounding and ascertained confusion in PASOK's ideological and political nature, as well as a distance between positions and practice.

Mr. Papoutsis claimed that PASOK's movement is not to the left, that there is a move in its voters and that if the party does not see all this it will be led to defeat.

On his part, government spokesman Dimitris Reppas said that Mr. Papoutsis himself must provide clarifications on the views he set out in his interview.

Mr. Reppas added that the government cooperates with all who promote the country's national interests. He also said that Mr. Papoutsis is a high- ranking cadre of the ruling party and consequently the basis exists for this cooperation and indeed it is a firm basis.

Athens News Agency

[13] Bail granted to four held responsible in fatal tugboat fire

Athens, 28/11/1998 (ANA)

The trial was originally scheduled for last Wednesday but postponed to give the accused time to prepare their defence.

The Piraeus-based "Aghios Georgios" on Monday rushed to help put out a fire that had broken out aboard the tanker "Golden Crete", owned by the Vardinoyiannis group.

The fire quickly spread to the tugboat, which ran aground one mile from the port of Thessaloniki.

The fire aboard the tanker, which was carrying a cargo of petrol, was in the meantime placed under control.

Three charred bodies were pulled from the burning tugboat and a fourth crew member of the tug was presumed dead.

The four persons on trial are the captain and second mate of the "Golden Crete", Eleftherios Proedros and Panagiotis Kavvadas respectively, and Greek Fuels and Mineral Oils (EKO) refinery employees Christos Georgiadis and Dimitris Masmanidis.

They have been charged with manslaughter, causing marine pollution, causing a shipwreck and arson.

Bail was set at five million drachmas each for Proedros and Georgiadis and one million drachmas each for the other two accused.

The defence attorneys of the EKO employees maintained yesterday that the loading of fuel was conducted in compliance with all the relevant safety regulations and was discontinued when the wind became too strong.

Athens News Agency

[14] Economic News

Athens, 28/11/1998 (ANA)

Auctioned were 180 billion drachmas worth of paper with the ministry accepting 216 billion drachmas in bids, more than the original target.

Banks submitted bids totalling 417.5 billion drachmas, oversubscribing the offer by 2.3 times.

Finance ministry to reopen seven-year bonds Dec: 1 The finance ministry is to auction 200 billion drachmas of seven-year bonds on December 1 at a fixed 8.70 percent annually, reopening an April 4, 1998 issue, it said in a statement yesterday.

The auction will employ competitive bids by the market's primary dealers, and non-competitive bids for up to 20 percent of the securities for auction.

The issue and settlement date for the securities, which are in electronic form, is December 4.

No commission is payable to banks.

New state savings bond offer Dec 2-3: The finance ministry will launch a public offering of two-year tax-free savings bonds in electronic form on December 2 and 3, it said in a statement yesterday.

The fixed-income bonds at 10.30 percent annually will be offered to retail investors through banks, post office savings branches, the Bank of Greece and securities firms, the ministry said in a statement yesterday. The issue date is December 2 for the bonds, which have a minimum face value of 10,000 drachmas, rising in multiples up to a ceiling of 15 million drachmas for each investor.

Interest on the paper is tax-free if held until maturity, but redemption may be made at any time from the original vendor.

Other securities available this month are six-month treasury bills on December 8, 10-year bonds on December 15, three-month T-bills on December 22, and 12-month T-bills on December 29.

Stocks climb again after correction: Equities resumed their upward course in yesterday's session following a two-day correction on the Athens Stock Exchange.

The general index ended 0.95 percent up at 2,478.37 points in active trade with turnover at 62.9 billion drachmas. Volume was 14,278,000 shares.

Sector indices were mixed. Banks rose 0.73 percent, Insurance fell 0.32 percent, Leasing dropped 0.65 percent, Investment soared 2.77 percent, Construction eased 0.28 percent, Industrials ended 1.82 percent up, Miscellaneous fell 0.49 percent and Holding increased 1.84 percent.

The parallel market index for small cap companies fell 0.17 percent.

The FTSE/ASE 20 index rose 0.82 percent to 1,530.81 points.

Broadly, advancers led decliners by 140 to 105 with another 18 issues unchanged.

Eskimo, Thessaliki, Teletypos and Bank of Piraeus were the most heavily traded stocks.

Technodomi, Xiosbank, ETEBA, Flexopack, Aspis Housing, Hadzioannou and Papoutsanis hit the daily 8.0 percent limit up, followed by Loulis, Ridenco and Alcar-Aemet which scored big percentage gains.

Orion, Sato, Ekter, Levenderis, Ergas, Macedonian Plastics, Etma, Korfil and Metrolife suffered the heaviest losses.

National Bank of Greece ended at 50,285 drachmas, Ergobank at 26,800, Alpha Credit Bank at 26,940, Ionian Bank at 12,000, Hellenic Telecommunications Organisation at 7,005, Delta Dairy at 3,560, Intracom at 14,425, Titan Cement at 20,400, Hellenic Petro leum at 2,435 and Minoan Lines at 6,300 drachmas.

Titan Cement buys out Bulgarian producer, Jan-Sept profits rise: Titan Cement Company, a blue chip on the Athens bourse, yesterday acquired AD Plevenski Cement of Bulgaria, buying for 8.26 million dollars an additional 34 percent of shares beyond its existing 49 percent holding. Titan won an international tender called by Bulgaria's Regional Development and Public Works Ministry for sale of the stock in Plevenski, which produces 360,000 tonnes of cement annually.

Also yesterday, the Titan Group announced in a statement that its pre-tax consolidated profits after minorities and provisions for tax were 17.1 billion drachmas in January-September from 13.0 billion in the same period of 1997, up 31.3 percent.

Consolidated turnover was 120.5 billion drachmas in the first nine months of the year, marking a 14.8 percent increase.

Sales of the parent company, Titan Cement Co., were 78.4 billion drachmas in January-September, up 6.2 percent on the same period of 1997.

Net profits after provisions for tax were 14.9 billion drachmas from 12 billion in January-September 1997. Pre-tax profits were 20.4 billion drachmas.

The company attributed the rise in the Group's net profits to activities abroad, including improved results from Titan's US subsidiary.

Appearing in consolidated results for the first time were two new subsidiaries - Plevenski Cement and AD Cementarnica USJE located in Skopje, capital of the Former Yugoslav Republic of Yugoslavia.

The Titan Group's net profits in January-September before consolidation of the two units showed a 27 percent jump against the same period of last year.

Also aiding Titan's results were high demand in the domestic and US markets.

But price stagnation in the domestic market tightened profit margins.

Results improved for aggregates and transport, while ready mix concrete slumped.

Despite investments of 14 billion drachmas on installations and markets, Titan's net borrowing fell, which resulted in a further rise in the debt-to- equity ratio.

Athens bourse consolidates, braces for assault on 2,500 pts: The Athens Stock Exchange showed signs of consolidation in robust turnover last week that included a downward correction after a 10 percent jump the previous week, taking a breather before a new assault on the 2,500-point barrier.

The climate improved substantially following a forecast by Salomon Brothers that interest rates will fall by 50 basis points by the end of the year, and a total of three percentage points in 1999, analysts said yesterday.

Optimism over consumer price inflation in November, which is expected to fall below 4.4 percent, was also a supporting factor.

Foreign institutional investors were particularly active in the week under review, seeking blue-chip banks including National Bank of Greece, Alpha Credit Bank and Bank of Piraeus, after Credit Suisse First Boston predicted that average profits of Greek banks will rise by more than 20 percent in the next three years.

The general index was 0.58 percent higher on the week. It now stands 67.50 percent up from the beginning of the year, and 12.29 percent off its record peak in July.

The week's turnover totalled 305.282 billion drachmas, or a daily average of 61.1 billion, slightly down from 61.7 billion the previous week.

The Holding and Construction sectors scored the biggest percentage gains in the week at 6.16 and 5.58 percent respectively.

On the other hand, Leasing and Industrials suffered losses.

French, Greek companies to distribute gas: The Latsis Group of Greece and Gaz de France have signed an agreement to sound out the possibilities of cooperation in the distribution of natural gas in Athonos (Thessaloniki) and Thessalia, officials said yesterday.

V. Papandreou: Gov't won't reverse energy sector policies: Development Minister Vasso Papandreou yesterday said the government will not reverse its policies in the energy sector, speaking at the 23rd conference of the Public Power Corp. (DEH) employees' union.

She called on DEH employees and the management to learn how to live and work in conditions of intense competition and stressed that the government has the legal framework ready in view of energy market deregulation.

She added that solutions to problems in the employees' pension fund are directly connected with the prospect of the state-run utility's restructuring.

European Commissioner Christos Papoutsis said the deregulation of the EU's energy market is not a threat for DEH but an opportunity, which should be pursued so the utility can play a leading role in the Balkans.

He added that he will soon submit a draft proposal to the Commission for a directive on the development of renewable energy sources.

No progress in meeting between gov't, customs officers' reps: Labour Minister Miltiades Papaioannou and Finance Deputy Minister George Drys yesterday met with representatives of the customs employees' union, with no progress recorded in avoiding a planned five-day strike by customs officers.

Customs officers have called the strike to prevent government plans to consolidate their pension funds with other civil servants' funds. They have underlined that their fund is financed by extra duties on imports and not by employee contributions, while it also shows a significant surplus, as opposed to other debt-ridden funds.

However, Mr. Papaioannou said that the government will forge ahead with the consolidation of all supplementary funds.

Chamber: Need for more luxury hotels in Athens before OIympics: A Greek- British Chamber of Commerce conference on Greece's tourism sector focused yesterday on the need for new luxury and upscale hotels in Athens to cover increased needs during the 2004 Olympic Games and the future.

The ambassadors of Spain, Javier Jimenez-Ugarte, and Australia, Ross Burns, participated in discussions along with 2004 Olympic Games managing director Costas Bakouris and Athens vice-mayor Nikos Giatrakos.

According to figures, 100 per cent of luxury rooms and 90 per cent of A category rooms will be occupied by 40,000 athletes expected to arrive for the games.

Tourism sector leader: EOT ineffective: In a related development, Tourist Enterprises Federation president Spyros Kokotos called for the "self- abolition" of the Greek National Tourism Organisation (EOT), since, as he said, it is not effective, while he called for private enterprises to take over EOT responsibilities.

Athens News Agency

[15] EU approves second phase of IDA telematics programme

BRUSSELS, 28/11/1998 (ANA - G. Daratos)

IDA's first phase was completed in 1997, and aims at the "effective and coordinated" development of all the Union's telematic systems for exchange of information between member-states.

During their meeting here, ministers decided to forge ahead with the programme's 71.6-million-Ecu second phase, which covers the period 1998- 2000.

Greece was represented by Trasport and Communications Deputy Minister Nikos Salayiannis.

Athens News Agency

[16] Athens Foreign Exchange

Athens, 28/11/1998 (ANA)

Athens News Agency

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