Athens News Agency: Daily News Bulletin in English, 99-07-27

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

CONTENTS

[01] Organising framework for dialogue the first task of Greek-Turkish talks

[02] Ergobank's management recommends Latsis bid

[03] Olympic Airways forges alliance with U.S. Air

[04] Stocks end flat in volatile trade

[05] OTEnet posts robust H1 profit

[06] Gov't dept. calls on banks to clarify consumer loan terms

[07] Athens Foreign Exchange

[08] New 2004 organising committee head meets with culture minister

[09] Russia's Matvienko covers Balkan reconstruction, Cyrpus issue in Athens talks

[10] Gov't approves acquisition of seven new naval vessels

[11] Kranidiotis-Miller meeting

[12] Avramopoulos in Israel

[13] Crime, illegal immigration the subject of Simitis-Karamanlis talks

[14] `We're not Turks', Pomack Research Centre declares in Thrace

[15] House of Representatives amendment calls on Ankara to accept existing Aegean sea boundaries

[01] Organising framework for dialogue the first task of Greek-Turkish talks

ANKARA, 27/07/1999 (ANA - A. Kourkoulas)

The dialogue, which was agreed to late last month between Greek and Turkish foreign ministers is being held at the Turkish foreign ministry and will focus on bilateral cooperation in the fields of commerce, environmental protection and tourism.

Yesterday morning's discussion, which was held in a friendly and positive atmosphere, according to diplomatic sources, focused on organising the dialogue on matters concerning trade cooperation between the two countries, while similar consultations took place in the afternoon on cooperation in the sectors of tourism and protection of the environment.

Ambassadors Anastasios Skopelitis and Constantinos Gerokostopoulos head the Greek delegation, while the Turkish delegation at the talks is headed by Ambassador Mihat Balkan.

Also taking part in the Greek delegation are ambassadors Alexandros Miliaresis and Constantinos Fotilas; Vassilios Patronas from the ministry's legal service and Constantine Dallas.

The Turkish delegation also comprises ambassadors Haiti Giuven, Yigit Albogan and Osman Durak.

Greece's ambassador in Ankara Ioannis Korantis and Turkey's ambassador to Athens Ali Tuigan are also attending the discussions.

The two delegations are due to meet today with Turkish FM Ismail Cem.

On Thursday and Friday the dialogue switches to Athens, where the Greek delegation will be headed by the same foreign ministry officials. The Turkish delegation in the Athens leg of the talks will be headed by ambassador Farouk Logoglu.

The Athens consultations will focus on cooperation between the two countries on combatting organised crime, illegal immigration, drugs and criminal activities that could be described as "terrorism", and cooperation in the cultural sector.

No statements were made before the talks began yesterday, but diplomats said they did not think the displeasure caused by recent incidents - such as the buzzing by Turkish warplanes of a civilian plane carrying Greece's transport minister back to Athens from Cyprus and their infringement of the Athens FIR - would dampen the momentum of the Greek-Turkish dialogue.

Gov't : Government spokesman Dimitris Reppas later told reporters that the procedures that got under way yesterday were "difficult and stubborn".

"What is needed is persistence and patience. We must be flexible and calm. If these talks are successful, then it will be to the advantage of both sides," he said.

He added that the need for communication between the two countries was imperative and that the talks provided a chance to examine Turkish intentions.

"This time, it is we who have chosen to move and not third parties. Any negative development that may arise will be borne by Turkey," he said.

He reiterated the government's intention not to discuss issues which touch on the country's sovereign rights.

Papandreou : Foreign Minister George Papandreou from Corfu said yesterday that the initial indications in the course of Greek-Turkish dialogue are positive.

Mr. Papandreou said it is still the beginning and that there are still a few days of discussions to enable one to have an initial opinion on the process.

He recommended sobriety and patience and made the evaluation that the dialogue process will continue for quite a while, for months or even years.

Referring to reactions by opposition parties, Mr. Papandreou expressed surprise because, as he said, he is in contact with opposition parties.

Athens News Agency

[02] Ergobank's management recommends Latsis bid

Athens, 27/07/1999 (ANA)

"CEH's improved offer is, under current circumstances, more beneficial, and the board recommends it.

The final decision naturally belongs to shareholders," management said in a statement to shareholders, staff and customers.

Both bidders have until July 29 to submit fresh offers and until July 30 to withdraw existing offers. The outcome of the acquisition bid will emerge by August 4.

Ergobank said its decision was based on a detailed study of the two banks' latest offers, and on a subsequent joint commitment it signed with CEH, a member of the Latsis Group, to adhere to the following points:

- The arrangement is a merger with EFG Eurobank, whose parent is CEH, over 2.0-2.5 years, with procedural steps to be mutually agreed by both parties and the terms endorsed by both banks' shareholders.

- For reasons of transparency, two international consultants will be employed to advise on shares in the banks that are not part of the merger exchange, and their trade on the Athens Stock Exchange. CEH will keep its share base stable in both banks unti l the merger.

- The rights of Ergobank's staff will remain unchanged, including the free allocation to personnel of stock from company profits. Improvements to terms of employment are allowed, following the consent of Ergobank's management.

- Ergobank's branch network will be increased, and its business orientation and development plan retained. The name of the new bank after the merger will incorporate both names.

Bank of Piraeus gets OK for share cap rise : Shareholders of Bank of Piraeus yesterday approved a management proposal for a share capital rise of 765 billion drachmas to fund a takeover bid for Ergobank.

Voting in favour of the share capital increase, the country's largest so far, at the extraordinary assembly were 71.6 percent of shareholders.

The 76,500,000 new shares for issue would be offered to Ergobank's shareholders along with cash in return for shares in the target bank, if Piraeus' bid were successful.

The new stock's price is 10,000 drachmas per share.

Bank of Piraeus is seeking a 50.1 percent stake in Ergobank along with EFG Eurbank through CEH, its parent.

Also yesterday, the Athens Stock Exchange said that Piraeus had to restrict its offer to 50.1 percent, down from a maximum of 67 percent, on technical grounds.

Athens News Agency

[03] Olympic Airways forges alliance with U.S. Air

Athens, 27/07/1999 (ANA)

U.S. Air said in a statement yesterday that the deal allows it to expand its operations into the Middle East, eastern Mediterranean and Far East by picking up Olympic's customers from the regions in European airports, and flying them to the US.

In turn, Olympic Airways will gain access to U.S. Air's markets in North America, Canada and the Caribbean.

The arrangement, which also contains cooperation on pricing policy, is awaiting approval from the Civil Aviation Authority.

Athens News Agency

[04] Stocks end flat in volatile trade

Athens, 27/07/1999 (ANA)

The general index ended 0.03 percent lower at 4,507.76 points from 4,509.29 points a day earlier.

Turnover was 199.676 billion drachmas from 186.866 billion drachmas in the previous session. Changing hands were 32,360,102 shares.

Again attracting investors were small and medium capitalisation stocks, especially on the parallel market.

Sector indices ended as follows: Banks (-0.69 pct), Leasing (+4.43 pct), Insurance (-1.01 pct), Investment (+0.04 pct), Construction (+2.28 pct), Industrials (+0.93 pct), Miscellaneous (+2.40 pct) and Holding (+0.90 pct).

The parallel market index for smaller capitalisation stocks ended 5.69 percent higher. The FTSE/ASE 20 index for heavily traded stocks and blue chips dropped 0.30 percent to finish at 2,621.56 points.

Of 308 shares traded, advances outpaced declines at 232 to 66 with 10 issues unchanged.

National Bank of Greece ended at 21,630 drachmas, Alpha Credit Bank at 21, 500, Bank of Piraeus at 9,270, Ergobank at 40,190, Titan Cement (common) at 30,500, Hellenic Petroleum at 3,000 and Intracom (common) at 21,470 drachmas.

Bonds end flat in light trade : Bond prices in the secondary market yesterday remained at low levels in light trade.

Electronic trade was 22 billion drachmas from 11 billion drachmas in the previous session and 12 billion drachmas on Thursday. Of yesterday's total, buy orders accounted for around 11.0 billion drachmas of turnover, and the remainder sell orders.

The benchmark 10 year bond showed a yield of 6.43 percent from 6.40 percent a day earlier and 6.33 percent on Thursday.

The yield spread above German bunds was 175 basis points from 173 basis points in the previous session.

At the central bank's daily fix, the euro was almost flat against the drachma. It was set at 325.130 drachmas from 325.140 drachmas in the previous session.

The dollar fell versus the drachma, reflecting its decline against the euro in markets abroad. The greenback was set at 304.400 drachmas from 309.380 drachmas a day earlier.

In the domestic market, the US currency has lost more than 15 drachmas since last week.

Athens News Agency

[05] OTEnet posts robust H1 profit

Athens, 27/07/1999 (ANA)

Sales in the same period rose 170 percent to 2.1 billion drachmas from the same period in 1998. Gross profit jumped by 150 percent, OTEnet said in a statement.

Athens News Agency

[06] Gov't dept. calls on banks to clarify consumer loan terms

Athens, 27/07/1999 (ANA)

In a letter to the Union of Greek Banks, the department draws attention to phenomena leading to excessive borrowing, including misleading advertising and inadequate information regarding repayment terms for loans and credit cards, as well as additional charges.

The general secretariat also calls for the obligatory recording of the Real Annual Charge on all loan contracts and the abolition of misleading advertising and terms in small print.

Athens News Agency

[07] Athens Foreign Exchange

Athens, 27/07/1999 (ANA)

Banknotes             Buying  Selling
US Dollar             301.965 308.966
Can.Dollar            199.531 204.157
Australian Dlr        195.870 200.412
Pound Sterling        479.533 490.651
Irish Punt            409.527 419.022
Pound Cyprus          558.893 571.851
Pound Malta           703.604 732.921
Turkish pound (100)     0.062   0.065
French franc           49.169  50.309
Swiss franc           200.835 205.492
Belgian franc           7.995   8.181
German Mark           164.906 168.730
Finnish Mark           54.246  55.503
Dutch Guilder         146.358 149.751
Danish Kr.             43.331  44.335
Swedish Kr.            36.639  37.488
Norwegian Kr.          38.761  39.660
Austrian Sh.           23.439  23.982
Italian lira (100)     16.658  17.044
Yen (100)             260.866 266.915
Spanish Peseta          1.938   1.983
Port. Escudo            1.609   1.646

Foreign Exchange      Buying  Selling
New York              301.965 308.966
Montreal              199.531 204.157
Sydney                195.870 200.412
London                479.533 490.651
Dublin                409.527 419.022
Nicosia               558.893 571.851
Paris                  49.169  50.309
Zurich                200.835 205.492
Brussels                7.995  8.181
Frankfurt             164.906 168.730
Helsinki               54.246  55.503
Amsterdam             146.358 149.751
Copenhagen             43.331  44.335
Stockholm              36.639  37.488
Oslo                   38.761  39.660
Vienna                 23.439  23.982
Milan                  16.658  17.044
Tokyo                 260.866 266.915
Madrid                  1.938   1.983
Lisbon                  1.609   1.646

Athens News Agency

[08] New 2004 organising committee head meets with culture minister

Athens, 27/07/1999 (ANA)

Mr. Thomopoulos said afterwards that it is a great honour for him to be the premier's choice. Referring to the course of Olympics projects, he said there are no delays and that projects are going ahead in a satisfactory manner in their entirety, although his first contact with the Athens 2004 committee will take place on Wednesday.

Ms Tzavella, a member of the Athens 2004 committee's board, was promoted to the vice-president's post with increased duties.

Athens News Agency

[09] Russia's Matvienko covers Balkan reconstruction, Cyrpus issue in Athens talks

Athens, 27/07/1999 (ANA)

She spoke prior to the beginning of a second ministerial conference between Greek and Russian officials regarding economic, industrial and scientific issues.

"Greece and Russia support the immediate implementation of a comprehensive programme for the reconstruction of the entire region, and express the hope that final decisions regarding stabilisation will be adopted in Sarajevo at the weekend," Mr. Tsohatzopoulos said.

The Russian Deputy PM, who is heading a delegation including five deputy ministers, also met with Prime Minister Costas Simitis.

Commenting on the prospects for the resumption of dialogue over the Cyprus issue in the autumn, Ms Matvienko reiterated her country's belief that this should take place on the basis of UN Security Council resolutions, which both sides should implement. She also called on the Turkish side to show greater flexibility and understanding, and described the objections raised late last year to the deployment of Russian-made S-300 missiles on Cyprus - later moved to Crete - as a worrying sign.

Ms Matvienko later led her delegation in high-level talks with Greek counterparts, headed by National Economy Minister Yiannos Papantoniou.

Deputy National Economy Minister Rodoula Zisi said existing agreements provided an important basis for economic cooperation, while there were extensive private investment activities in both directions and a system of Greek credit facilities to Russian regions already in place.

"There is interest and prospects for bilateral cooperation in the sectors of tourism, construction, banks, and especially, in telecommunications, after the Black Sea optical fibre deal signed recently," she said.

She further stressed the need for developing a comprehensive web of road, air, rail and shipping transport networks to facilitate trade and further potential for cooperation in agriculture.

Ms Zisi said Russia could offer extensive know-how in the tapping of energy resources, while Greek firms could submit their experience in renewable energy sources.

Athens News Agency

[10] Gov't approves acquisition of seven new naval vessels

Athens, 27/07/1999 (ANA)

National Defence Minister Akis Tsohatzopoulos said KYSEA had approved cooperation between the Kiel, Germany and Skaramangas shipyards on the construction of three submarines, at a cost of 350 billion drachmas.

Also approved was cooperation between the Elefsina and Ficantieri, Italy, shipyards for the construction of a naval oil tanker, budgeted at 39 billion drachmas.

Talks are also winding up over a programme to construct three missile patrol boats by the Elefsina Shipyards, budgeted at 120 billion drachmas.

Mr. Tsohatzopoulos added that talks were also under way at reducing the price and upgrading the weapons systems available for four US Navy "KIDD- class" destroyers that Washington has reportedly offered to sell to Athens.

Athens News Agency

[11] Kranidiotis-Miller meeting

Athens, 27/07/1999 (ANA)

According to the foreign ministry, the two discussed the Cyprus issue, Greek-Turkish relations and conditions in the Balkans.

Mr. Miller is departing from his post, since he has deen appointed US ambassador to Bosnia.

Athens News Agency

[12] Avramopoulos in Israel

Athens, 27/07/1999 (ANA)

During his stay Mr. Avramopoulos will also meet with the country's president, vice-president and foreign minister, while he is scheduled to visit Tel Aviv and the Palestinian self-rule territories.

Athens News Agency

[13] Crime, illegal immigration the subject of Simitis-Karamanlis talks

Athens, 27/07/1999 (ANA)

Last Friday, Mr. Simitis had held similar talks with Communist Party of Greece (KKE) Secretary General Aleka Papariga and Coalition of the Left and Progress (Synasismos) leader Nikos Constantopoulos.

The premier said afterwards that it would be a mistake for one to believe that illegal immigrants and economic migrants are exclusively responsible for the increase in crime.

He expressed the conviction that there will be sincere cooperation and understanding with all the political forces which, as he said, will support the government's options to handle the phenomenon. He added that citizens' security is an issue which is not suitable for partisan exploitation.

Replying to criticism by the opposition that he delayed in requesting an inter-party understanding, he said the government's interest was not belated but the problem had taken on greater dimensions now.

In a statement, Mr. Karamanlis spoke of what he called the government's blatant failure in handling the problem and said ND had made specific proposals on the issue.

"The government is now requesting the support of the opposition. Support for what? For the absolute non-existence of planning? For the off-hand handling of an issue, more in the form of public relations, to supposedly show some concern?" he asked.

Mr. Karamanlis criticised the government for remembering three years later, as he stressed, that the problem requires a more general handling, adding that it is "tragic and alarming for one to see a prime minister who is so detached from day-to-day prob lems."

According to reports, Mr. Karamanlis also raised the issue of the three Moslem deputies who called for recognition of a "Turkish" and "Macedonian" minority in Greece, saying they agreed to handle the issue together.

Mr. Tsovolas said the meeting took place with a delay and for reasons of creating impressions, while he added that the increase in crime is also due to the economic policy being applied. He pointed to unemployment, poverty and social exclusion as provide suitable ground for crime to flourish.

Mr. Tsovolas presented Mr. Simitis with seven proposals to strengthen police, namely, an increase in expenditures, the hiring and training of staff, meritocracy, the exemption of the police from secondary duties, an end to "sweep" operations against ill egals as well as "controlled" immigration.

The Cabinet will convene tomorrow and, as Mr. Simitis noted, the law on immigration policy will be discussed and will be brought to the attention of political parties.

Athens News Agency

[14] `We're not Turks', Pomack Research Centre declares in Thrace

Athens, 27/07/1999 (ANA)

In an announcement in Komotini, the Pomack Research Centre (PRC) sternly condemned the move.

"The Pomack Research Centre condemns with indignation the provocative demand by the deputies Galip Galip, Birol Akifoglu and Mustafa Mustafa that all the Moslems in Thrace be recognised as Turks," the announcement stated.

"The PRC, being an agency representing thousands of Moslem Pomacks in Thrace, declares to the Greek and international public opinion that we Pomacks are not and do not feel Turks. The Moslem communities in Thrace are living in a democratic country and are enjoying all the freedoms which are consolidated both by international accords and domestic law.

"However, it is necessary for the Hellenic state to disengage the Pomack issue from Greek-Turkish relations and recognise for the Pomack-speaking citizens in Thrace the same cultural and language rights which are enjoyed by the Turkish-speaking Moslems, " it added.

The announcement adds: "We condemn their (the Moslem deputies) provocative and hypocritical references to the Pomacks and we call on them to struggle for the Moslems' real problems and primarily for the minority's internal democratisation."

The statement also calls on the three MPs to stop their "destabi-lising tactic" and "struggle for the preservation of peace and democracy in this sensisitve region", adding that whatever form of aggravation would harm above all the interests of the Moslems themselves.

In a related development, several other Moslem officials, including three muftis, sent an open letter to the president of the republic and political leaders to mark the restoration of democracy in Greece 25 years ago.

Among others, the letter reads: "We would like to take this opportunity to underline that the minority in Greece enjoys all the rights and freedoms envisaged in the spirit and letter of international conventions that Greece has signed. The country has respected its signature, showing sensitivity and worthiness."

National Defence Minister Akis Tsohatzopoulos also rejected the claims over the weekend, telling reporters that "such minorities do not exist, however much anyone wants to create them."

"Under the (1923) Treaty of Lausanne, there is only a Moslem minority in our country, which lives under the best conditions," he added.

Finally, Mr. Tsohatzopoulos pointed out that an ethnic Greek minority in Istanbul, Turkey, has practically disappeared from the more than 250,000 members it had before World War II.

Athens News Agency

[15] House of Representatives amendment calls on Ankara to accept existing Aegean sea boundaries

WASHINGTON, 27/07/1999 (ANA - T. Ellis)

Specifically, amendment 19 to H.R. 2415 expresses the "Sense of Congress...that the sea boundaries established in the Treaty of Lausanne of 1923 and the 1932 Convention between Italy and Turkey, including the Protocol annexed to such Convention, are the borders between Greece and Turkey in the Aegean..."

A further point adds: "...any party, including Turkey, objecting to these established boundaries should seek redress in the International Court of Justice at The Hague."

The effect of the amendment is to express the US House of Representatives' view that the boundaries between Greece and Turkey in the Aegean have been established once and for all, and that islands and islets on the Greek side, including the islets of Imia, are Greek sovereign territory.

Athens News Agency

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