Athens News Agency: Daily News Bulletin in English, 00-02-01

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

CONTENTS

[01] Greece welcomes EU backing for economic plan

[02] Simitis, Persson discuss EU expansion, Greek-Turkish relations

[03] Greece outlines EU reform ideas to EU presidency

[04] Opposition parties warn of stringent policies after EU approval of Greek convergence plan

[05] Greece says 1988 memorandum best basis for Greek-Turkish rapprochement

[06] Greece reiterates hope for progress in new round of Cyprus talks

[07] Ankara reiterates support of pseudo-state's insistence on 'confederation' solution

[08] Greece and Slovakia to widen defence industry cooperation

[09] PASOK officially nominates Stephanopoulos for President

[10] Venizelos announces basic terms to ELVO privatisation

[11] Investors' absence pushes Greek stocks lower

[12] Dollar, euro end higher vs drachma

[13] Mutual funds' assets rise 25.74 pct in 1st-half 1999

[14] Papantoniou tells Italian newspaper the next Greek government will reform the pension system

[15] Greek yield spread over bunds noses down

[16] French-Greek consortium improves offer for Egyptian cement company.

[17] Group calls for government to build Athens conference centre

[18] Marfin plans to 650 drs dividend

[19] GSEE calls marginal rejection of "Tobin tax" a success

[20] Rhodes rattled by 5.0 quake; 3.9 tremor recorded in northern Greece

[21] Minister promises solution to Metro parking problem

[22] Briton dies in Corfu yacht fire

[23] Fire breaks out at Greek embassy in Tirana

[24] Charges filed in fatal accident involving truckload of illegals

[25] Turkish pupils visiting Greece at the invitation of the French-Hellenic school

[26] Archbishop of America Dimitrios speaks of the importance of education

[27] Group claims bank bomb

[28] Sunny weather is forecast

[29] Annan details core aspects of Cyprus problem at start of second round of proximity talks

[30] Denktash reiterates intransigent positions

[31] UN chief hopes for a settlement by the end of this year

[01] Greece welcomes EU backing for economic plan

BRUSSELS, 01/02/2000 (ANA-M. Spinthourakis)

"Today, a decisive step was taken towards the country's entry into the final phase of economic and monetary union," National Economy and Finance Minister Yiannos Papantoniou told reporters in the Belgian capital.

Greece hopes to join the 11-member euro zone on January 1, 2001. It plans to apply for membership in March, with the EU due to decide whether or not the country qualifies at a summit in Lisbon on June 19.

Papantoniou said endorsement of the plan, which was unanimous, followed two recent moves towards euro entry: the EU's removal of Greece from a list of countries with excessive deficits and agreement to a revaluation of the drachma versus the euro in the exchange rate mechanism.

"With the first of the two decisions, the EU declared that Greece met the fiscal criteria for euro entry, and with the second it acknowledged improvement in the competitiveness of the Greek economy over the past two years," Papantoniou said.

"After today's decision, which confirms that the Greek economy meets the criteria for euro entry and the terms laid out in the Stability Pact, there is only one step left for euro entry on January 1, 2001 - the application in early March " he said.

Beyond meeting entry criteria, the economy had also shown it was on a rising trend, the minister added.

He quoted French Finance Minister Christian Sautter as telling the meeting that he wanted to congratulate the Greek government on behalf of all EU members for the economic progress attained.

Finally, Papantoniou said that no inflationary pressures were expected in 2001, which meant that no supplementary fiscal measures would be taken.

He was responding to a recommendation in the finance ministers' decision in favour of the economy that Greece could reinforce its counter-inflationary policy through the use of the instruments at its disposal, including budgetary and incomes policies, wage agreements for 2000, and the cooperation of social partners.

The recommendation also said that budgetary targets were set at a minimum, and should be improved; and monetary authorities should be ready to tighten fiscal policy further from 2001 if inflationary pressures emerged.

Papantoniou underlined that the government believed in distributing wealth in favour of people on low incomes, and a growth rate of 4.0 percent anticipated in coming years would leave plenty of leeway for social policies.

EU Commissioner underlines need for Greek inflation to drop: EU Monetary Commissioner Pedro Solbes said on Monday that Greece needed to ensure that inflation maintained its downward trend, allowing interest rates to fall.

"Greece must make a special effort so that inflation may continue to decline," Solbes told a news conference after EU finance ministers approved the country's economic alignment plan with the 15-nation bloc.

He said that demand needed to be checked and inflationary pressures avoided, enabling interest rates to fall gradually.

"We expect everything to go smoothly," Solbes added.

[02] Simitis, Persson discuss EU expansion, Greek-Turkish relations

Athens, 01/02/2000 (ANA)

During a two-hour meeting in Athens, Greek Prime Minister Costas Simitis and visiting Swedish Premier Goran Persson also discussed Economic and Monetary Union (EMU) - as Greece is expected to enter the 11-nation 'euro-zone' early next year - along with the long-standing Cyprus issue and Greek-Turkish relations.

In a joint press conference afterwards, Persson said his government considers Greece's progress towards EMU entry as "impressive", with no reason existing for the country not to join the 'euro-zone' in the near future.

"If someone said Greece would become an EMU member four or five years ago no one would have believed it. It achieved this, however, with very hard work and this, at the political level, is surely a success for the government. That is why I strongly commend it," Persson said.

In referring to EU expansion, the Swedish PM said the matter tops the Union's agenda, while the issue of how the EU will be organised in order to effectively operate with 20 to 25 members will dominate the upcoming Intergovernmental Conference.

Additionally, he noted that decisions emanating from last month's EU summit in Helsinki were positive, thanks, as he noted, to Greece's "constructive contributions."

In response to a question over how EU-Turkish relations will develop following Helsinki, both prime ministers answered that the last EU summit's decisions set out a framework of conditions that Turkey must gradually fulfill.

Specifically, Simitis stressed that "the Helsinki decisions offer a framework for the solution of standing problems, such as the (Aegean) continental shelf, for example." He added, however, that a certain period of time will be necessary for Turkey to adjust.

"What's needed as well is close contact and discussion, so that solutions are promoted on issues that exist between the two sides, particularly Cyprus and the continental shelf."

In citing the upcoming visit to Athens by Turkish Foreign Minister Ismail Cem, Simitis stressed that Greece has taken steps towards rapprochement, whereby Turkey must now prove in earnest that the Helsinki decisions weren't simply an "acceptance of a candidacy, but a basis for specific moves...It's these moves that we're awaiting," the Greek premier said.

Persson said the EU summit decision to designate Turkey as an EU candidate country is a "good example of how the Union can function. We listened to Greece's positions on the issue with great attention. Now we have in front of us a long period of negotiations; we began discussions over the Copenhagen criteria, cooperation on several levels, Turkey's economic performances," he said, adding:

"We have in front of us several years of discussions with Turkey so that it can change, adapt and be able to accede as a full EU member-state...That is something, however, that we foresee as far away."

Simitis, Persson comment on recent political developments in Austria: Swedish Premier Goran Persson on Monday replied to a question in Athens regarding recent political developments in Austria, saying that a coalition government that includes parties with "expressed xenophobic views" and differing convictions from those prevailing in the European Union is "something particularly concerning".

Persson spoke at a joint press conference with Greek Prime Minister Costas Simitis, following two-hour talks between the two leaders in the Greek capital.

On his part, Simitis said "basic EU values include a recognition of differences, peace and cooperation among peoples, as well as an effort for the equal treatment of all citizens. There is a problem when a party supporting the opposite views participates in a government. It's a necessity for European Union member-states to express their position on this issue."

Greek Parliament President meets Swedish Prime Minister: Parliament President Apostolos Kaklamanis and visiting Swedish Prime Minister Goran Persson held a meeting in the Greek Parliament on Monday during which they expressed an identity of views on the agreement reached at the EU summit in Helsinki last December, regarding the Cyprus issue and Greek-Turkish relations.

Persson praised Greece's contribution in the achievement of the Helsinki agreement. Kaklamanis stressed the European Union's duty to monitor whether Turkey is showing tangible proof in the operation of democratic institutions, respect of human rights and its contribution towards a settlement of the Cyprus problem.

Kaklamanis thanked Persson for Sweden's firm support on the Cyprus problem as this is also shown by Sweden's participation in the UN Peacekeeping Force on the island.

[03] Greece outlines EU reform ideas to EU presidency

Athens, 01/02/2000 (ANA)

Portugal is presently the holder of the European Union's presidency.

Rokofyllos said after the talks that the Portuguese presidency had shown interest in a number of Greek approaches.

"It appears that we converge on quite a number of separate issues and particularly on the need for greater cohesion of the Union and emphasis on policy priorities," he said.

Rokofyllos said the Greek side had emphasised the need for each member-state to contribute a commissioner to the European Commission in the wake of the major expansion being attempted.

Da Costa told reporters that Greece was one of the countries that had prepared for the dialogue and had formulated specific and clear ideas on how the Union should be reformed.

The inter-governmental conference to discuss these ideas and proposals will begin on February 14. The Portuguese presidency had scheduled 14 preparatory meetings up to June 30.

Apart from the General Affairs Council meetings, inter-ministerial meetings will also be held. The Portuguese presidency will present a report of activity on this issue at the end of June, outlining points of agreement and recommendations on the directions the dialogue should take.

[04] Opposition parties warn of stringent policies after EU approval of Greek convergence plan

Athens, 01/02/2000 (ANA)

"It notes that further harsh measures of fiscal and incomes policy are required... that the Greek economy is in distance from real convergence is now confirmed by the EU," said the party's spokesman Aris Spiliotopoulos.

The Communist Party of Greece (KKE) said "locking-in" with EMU would mean a "locking-in" of the people, with more poverty, unemployment, authoritarianism and insecurity in the near future.

The Coalition of the Left said ECOFIN's decision confirmed the government's stringent fiscal policy and foretold the austerity after EMU accession.

Democratic Social Movement (DHKKI)leader Dimitris Tsovolas said the convergence programme represented a commitment on the part of the government for a further reduction in social expenditure and changes in labour relations and the social security system to the detriment of workers.

[05] Greece says 1988 memorandum best basis for Greek-Turkish rapprochement

Athens, 01/02/2000 (ANA)

Government spokesman Dimitris Reppas, speaking to reporters in relation to comments by Greek Defence Minister Akis Tsohatzopoulos, said the Greek stance was very clear.

"We want rapprochement between Greece and Turkey to be dealt with in a positive spirit and strong will from both countries. A good basis to use to achieve positive results in this sector is the memorandum, the agreement of 1988, signed between the then (foreign) ministers Papoulias and Yilmaz.

"We have repeatedly stated in the past that this memorandum must be used. We maintain this position," he said.

The 1988 memorandum outlines a broad framework of agreed rules of behaviour regarding national military activities in the high seas and international airspace aimed at reducing tension and avoiding incidents between the two countries.

Tsohatzopoulos, in comments published on Sunday, rejected a proposal by Turkish Foreign Minister Ismail Cem on the establishment of a committee of political and military experts to discuss issues relating to Aegean sovereignty.

Reppas said the details of the memorandum would be discussed in a meeting Prime Minister Costas Simitis would chair with the defence and foreign ministers on Tuesday morning.

The meeting is being held ahead of the official visit to Athens by Cem later this week, to sign a series of bilateral agreements

[06] Greece reiterates hope for progress in new round of Cyprus talks

Athens, 01/02/2000 (ANA)

"The Greek government's position - which was expressed in talks Foreign Minister George Papandreou had with (U.S. Secretary of State) Madeleine Albright - is that talks on a resolution of the Cyprus issue must be substantive, to proceed in depth and to embrace all the aspects of the Cyprus issue," government spokesman Dimitris Reppas said.

"For progress to be marked in this sector, the other side must show in practice a flexibility, good willingness and intent to seek and find a solution," he added.

The second round of proximity talks began on Monday with se-parate meetings between UN Secretary-General Kofi Annan with Cypriot President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash.

The first round of talks took place in New York last month.

The talks will address the issues of security, property, distribution of power and territory in Cyprus, with a view to opening substantive negotiations later in the year.

Cyprus has been divided since Turkish troops invaded and occupied 37 percent of its territory in 1974.

[07] Ankara reiterates support of pseudo-state's insistence on 'confederation' solution

ISTANBUL, 01/02/2000 (ANA - A. Kourkoulas)

"The 'authorities' of the 'TRNC', in cooperation with us, deve-loped the proposal of a confederation of two states; a proposal which is the most realistic model for a solution to the Cyprus problem, and taking into consideration the European Union di-mension," an announcement issued by the Turkish foreign ministry said.

A resumption of UN-sponsored proximity talks in Geneva bet-ween the two communities on Cyprus was scheduled for the same day, Monday.

Turkey is the only country in the world to recognise the so-called "Turkish republic of northern Cyprus" pseudo-state, illegally declared in 1983 in the areas of the island republic occupied by Turkish forces since 1974.

Cyprus as well as Greece maintain that a federal solution to the 26-year problem is the only basis for discussion, in line with UN resolutions and international law.

"Turkey, as a guarantor power, supports all of the (pseudo-sta-te's) views, and appreciates the efforts of 'President' Rauf Den-ktash towards the search for a secure and permanent agreement between the two states on Cyprus," the announcement continues.

"Turkey hopes that steps in this direction will occur during the meetings in Geneva, and that an agreement ensuring the legal rights and interests of both sides within the framework of a confederation will materialise," the Turkish foreign ministry announcement concludes.

Karamanlis tours Perama shipbuilding district, talks with workers

and union reps

M

ain opposition New Democracy leader Costas Karamanlis on Monday morning toured the shipbuilding and ship repair district of Perama, west of the main Greek port of Piraeus, as talks with workers, union representatives and company executives focused on the sector's problems.

On his part, the ND leader promised to support the maritime industrial district if elected, stressing that the know-how acquired over the years shouldn't be squandered. He also referred to

heightened incentives and more favorable borrowing terms in order to attract part of the shipbuilding and repair contracts now being executed in foreign shipyards.

Workers and union representatives, meanwhile, emphasised that falling wage scales due to cheaper competition from foreign workers has exacerbated the chronic problem of rampant unemployment in the area. Union representatives also charged that many foreign workers lack experience in the sector as well as proper social security coverage, as dictated by law.

[08] Greece and Slovakia to widen defence industry cooperation

Greek Deputy Defence Minister Dimitris Apostolakis on Monday met with his Slovakian counterpart Josef Pivarci and discussed bilateral relations and further venues of cooperation between the two countries.

Apostolakis, on his second day of a three-day official visit in Slovakia, speaking in a joint press conference following the meeting said that Greece "attempts to widen every form of relation and to develop its defence industries, via off set benefits or via the co-production of defence systems".

On his part, Pivarci said that the present efforts at cooperation are but the beginning and the agreements to be signed between the two countries are but a minute element in the "the total page of cooperation the Slovakian defence ministry wants to write".

The Greek deputy defence minister heads a delegation of Greek defence industry representatives, who aim at cooperating with the well developed defence industry of that central European country.

The initial contact and agreement for the cooperation between Greece and Slovakia in the defence sector was made by Defence Minister Akis Tsohatzopoulos in 1998.

Slovakia is a candidate European Union member-state and aims to enter NATO.

Tsohatzopoulos says bill on professional army to be submitted in the next three months

National Defence Minister Akis Tsohatzopoulos said on Monday the bill regulating the question of a professional army and a decrease in military service will be tabled in parliament in the next three months. Tsohatzopoulos, who was speaking in parliament, was replying to a relevant question put to him by main opposition New Democracy party Deputy George Karatzaferis on the issue of conscription evaders.

Tsohatzopoulos ruled out the possibility of conscription evaders living abroad who had been born after 1966 being included in the favourable arrangement reached in 1997, saying that this would "harm the principle of equality."

He said that 5,100 overseas conscription evaders, out of a total of 18,000, had already used the right to serve in the military for 3-12 months and then bought off their remaining service by paying 100,000 drachmas per month.

Karatzaferis requested the inclusion in the arrangement of overseas conscription evaders who had been born after 1966, adding that they are distinguished scientists living abroad who cannot come to Greece.

[09] PASOK officially nominates Stephanopoulos for President

In a letter sent to Kaklamanis, Simitis officially nominated Stephanopoulos in light of the election process, scheduled for February 8.

Under the Greek Constitution the President of the Republic is elected by the Parliament - and not direct popular vote - however, 180 of the 300 deputy votes are needed for the election. If the election fails in three consecutive attempts, the Parliament is dissolved and national parliamentary elections are called. The new Parliament needs a fifty per cent plus one majority to elect the new president.

Main opposition New Democracy party said in December that it would support Stephanopoulos' re-election.

[10] Venizelos announces basic terms to ELVO privatisation

Venizelos said that the government's first option was the sale of around 40 per cent of the company's stock to private investors, adding however that the government may also consider selling a majority stake in the company under specific terms and conditions.

"The final decision will be made following discussions...there is no need to sell the majority of the company's stock if we can secure two terms," Venizelos said, "namely, the long-term viability of the company and the securing of existing jobs and working conditions."

The minister said that seven consortiums have already expressed interest in ELVO, ahead of the Feb. 15 deadline.

[11] Investors' absence pushes Greek stocks lower

Turnover remained low at 174 billion drachmas despite the fact that Monday was the first day of extended trading hours (trading ended at 14.15 am).

Shares in the Miscellaneous and Construction sectors were mostly hit while the Investment sector was in demand following news of significantly increased dividend payments.

The general index ended 0.60 percent off at 4,990.02 points. The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.67 percent to 2,606.43 points, while the FTSE/ASE 40 index ended 1.79 percent off at 905.98 points.

Sector indices ended as follows:

Banks: 9,057.72 -0.68%

Leasing: 1,323.81 -1.12%

Insurance: 3,446.22 -0.84%

Investment: 2,677.03 +1.87%

Construction: 3,206.83 -1.96%

Industrials: 3,036.39 -0.16%

Miscellaneous: 6,379.48 -1.52%

Holding: 6,142.17 -0.96%

The parallel market index for smaller capitalisation stocks ended 1.01 percent down at 1,501.04 points.

Broadly, decliners led advancers by 210 to 105 with another 14 issues unchanged.

Athinea, Macedonian Plastics, Yalco, Texapret, Alcatel, Euro-pean Techniki, Desmos (p) ended at the day's 8.0 percent limit up, while Athens Water, Doudos, Klonatex (p) and Mouriadis suffered the heaviest percentage losses.

Athens Water was the most heavily traded stock.

Leading shares' closing prices (in Drs):

National Bank: 21,520

Alpha Credit: 22,590

Commercial Bank: 22,480

Eurobank: 13,450

Hellenic Telecoms: 7,680

Panafon: 4,370

Hellenic Petroleum: 3,880

Titan Cement (c): 16,335

Minoan Lines: 8,100

Intracom: 13,850

[12] Dollar, euro end higher vs drachma

At the central bank's daily fixing, the euro ended slightly higher against the drachma, despite falling against the greenback.

The euro was set at 331.900 drachmas from 331.850 drachmas in the previous session and 331.530 drachmas on Thursday.

Also at the fixing, the dollar ended at 337.900 drachmas from 336.760 drachmas a session earlier and 331.380 drachmas on Thursday.

In trade after the fix on Friday, the dollar had hit an all-time high of 338.800 to the drachma.

[13] Mutual funds' assets rise 25.74 pct in 1st-half 1999

The US market accounted for 61 percent of the world mutual funds market with 7,481 funds, worth 5.87 billion euros, followed by the European market with a 29 percent share of the market with 20,484 funds totalling 2.64 billion euros.

Equity mutual funds accounted for 47.2 percent of the global market, followed by bond funds (21.8 pct), money market funds (21.3 pct) and mixed funds (9.3 pct).

In the US market, equity mutual funds accounted for 56.4 pct of the market while in Europe equity funds accounted for 34.6 pct.

In Japan, mutual funds' assets totalled 400 billion euros, with 4,155 funds accounting for 4.3 percent of the world market.

World table

Asset (bln euros)

Number of funds

US 5,870 7,481

Europe 2,641 20,484

Japan 400 4,155

Mutual funds' market composition

Equity 47.2%

Bond 21.8%

Money market 21.3%

Mixed 9.3%

[14] Papantoniou tells Italian newspaper the next Greek government will reform the pension system

National Economy and Finance Minister Yiannos Papanto-niou said on Monday Greece's new economic policy, designed to pave the way for the country's entry into Economic and Monetary Union, started with the Papandreou government and was intensified by the Simitis government.

Papantoniou was speaking in an interview with the Italian newspaper Sole 24 Ore and was commenting on how the government of Prime Minister Costas Simitis had succeeded in restructuring the economy without causing social upheavals.

"The new economic policy started with the Papandreou government. Undoubtedly, efforts were intensified with the Simitis government. Since then, we started to implement more substantive changes. You asked me to tell you the 'recipe': The enlargement of the tax base, the combatting of tax evasion, the new taxation of capital and income, the decrease in waste in the public sector and the reorganisation of the ministry itself. We increased state revenues in this way and so there was no need for us to impose new taxes. The visible increase in revenues was the catalytical element in decreasing the public deficit and, lastly, the drastic curbing of interest rate taxation. The stabilisation of the economy allowed for a substantive decrease in the taxation of state bonds which, in turn, created the further saving of funds," he said.

"Privatisations are going ahead in a satisfactory way. We have privatised 15 state enterprises over the past year and a half and another 14 privatisations are scheduled for the current year. Revenues to date were about 3,000 billion drachmas (about 17.500 billion lire) which represent 6 percent of GDP. It is a considerable percentage to say the least," he added.

Asked when the serious problem of reforming the pension system will be handled, he said "the problem will be handled by the new Parliament. This is a commitment by the Simitis government. We have already entrusted a study on this issue with the Programming Centre. According to the resulting outcome, we shall start a dialogue with the interested parties which will help the government to take the relevant decisions."

"Greece plays a basic role in the Balkans. Our country is experiencing a phase of development. This is recognised by our European partners. Greece is becoming a great regional power. Our economy is very healthy. We are a force of stability, we are members of the most important international organisations and we are, from an economic point of view, the strongest compared to other neighbouring countries. Consequently, we are exercising a strong economic and political influence in the Balkan region. Our basic aim is to contribute to peace, stability and develop-ment in neighbouring countries," he said.

Papantoniou added that "I evaluate cooperation between Greek and Italian firms very positively. I believe that Italy and Greece can help a great deal in the economic development of this geographical region. Both countries have historical relations with the peoples and the Balkan societies. For this reason, I believe that cooperation between Italy and Greece represents an excellent opportunity for the companies of both countries."

[15] Greek yield spread over bunds noses down

Bond prices had sought to consolidate in thin trade in the previous session.

The benchmark 10-year bond showed a yield of around 6.61 percent, the same as in the previous two sessions, taking the spread over German bunds to 100 basis points from 103 basis points in the last two trading days.

Trade through the central bank's electronic system again was low at 74 billion drachmas from 77 billion drachmas a session earlier. Buy orders accounted for about 60 billion drachmas of the total.

A major investment house in London bought some 28 billion drachmas of 15-year bonds.

[16] French-Greek consortium improves offer for Egyptian cement company.

According to the dispatch, the consortium raised last week's offer of $75.5 per share to $90.

Farouk Nasser, president of the Lafarge/ Titan Co for Egyptian Investments, was reported as saying that the improved came after Orascom Construction Industries, a competitor in the tender, last week raised its bid from $66 to $82 per share.

The deadline for the submission of further improved bids has been extended to February 8, according to Nasser.

Ameriyah Cement's newly constructed factory in the Alexandria area has an annual production capacity of 2.3 million tonnes. The company recorded a turnover of more than $130 million in 1999 and after-tax profits of $42 million.

Titan and Lafarge jointly acquired Egypt's Beni Suef Cement Co., of an annual capacity of 1.4 million tonnes, in 1999. They recently announced the doubling of the factory's capacity within two years.

If successful in the Ameriyah bid, the consortium will become Egypt's largest cement producer, with an annual capacity of 5.7 million tonnes.

[17] Group calls for government to build Athens conference centre

SEPOS members, speaking at a news conference, said that the advantages of new conference centres would far outweigh the cost of building them, particularly in the Athens region.

They said an Athens conference centre with a capacity of 10,000 was "urgently needed", estimating the loss of revenue due to the lack of conference centre infrastructure at some 300 billion drachmas.

With the advent of the 2004 Olympic Games, this amount could reach one trillion drachmas, they said.

At the moment, the Athens Concert Hall provides 2,000-2,500 seat capacity and is not suited to providing for the needs of a major conference, they said.

[18] Marfin plans to 650 drs dividend

Marfin's president, Manolis Xanthakis, said the board would submit its proposals to a forthcoming general shareholders' meeting.

The company has already paid a pre-dividend of 250 drachmas per share in July 1999.

[19] GSEE calls marginal rejection of "Tobin tax" a success

GSEE, Greece's top labor union body, said in a press release that the rejection of the so-called Tobin tax --backed by the European Confederation of Trade Unions-- by only 223 votes in favour and 229 against was a "first victory" as it forced the issue to be raised at a political level and met with a positive reception.

[20] Rhodes rattled by 5.0 quake; 3.9 tremor recorded in northern Greece

The earthquake struck at 9: 34 a.m. Its epicentre was 440 kilometres southeast of Athens, in the seabed between Carpathos and Rhodes, at a depth of approximately 20 kilometres, accor-ding to the Athens Observatory's Geodynamic Institute and the Aristotelion University's Geophysics Laboratory in Thessaloniki.

According to Aristotelion University seismologists, the earth-quake was produced in the Greek arc, at the meeeting point between the Eurasian and African plates.

Thessaloniki seismologists later reported recording another earthquake, registering 3.9 on the Richter scale, and originating from the northern Greek prefecture of Halkidiki.

No injuries or damage were reported although the tremor was felt throughout the area of Arnaia.

The epicentre of the tremor, recorded at 11.56 a.m., was 60 kms eat of Thessaloniki, in the Varvaras region. The same fault - the so-called 'Serbo-Macedonian' fault - has given rise to two strong quakes in recent years: one registering 5.8 on the Richter scale in May 1995, and another measuring 4.5 in December 1999.

Seismologists said they were following the reactivation of the fault with concern, as it was not usual that a fault that had so recently given rise to a high Richter reading would resume activity so soon.

[21] Minister promises solution to Metro parking problem

Speaking on the first working day of the Athens Metro's two new lines, Laliotis said he hoped the ministry would soon be able to provide some 7000 free parking sites in total.

The Athens Metro opened for business to commuters at dawn Monday, boasting 60-70 percent capacity in the morning rush hour, according to Metro officials.

The first paying passengers boarded the first train at 5: 30 a.m., after a 'get acquainted' weekend which saw close to two million Athenians ride the Metro lines for free.

While there were no problems reported on the actual subway system itself, the situation outside the Metro stations was somewhat different, with prospective commuters frustrated at not finding anywhere to leave their cars.

Laliotis promised that the number of free parking spaces at the national defence and Katehaki stations, the two northernmost stations on the Syntagma-Amynas line, would come to 1,500 spaces over the next few days while he said he hoped to find another 2,000 spaces - possibly with the aid of some privately-owned garage - to add to the 1,500-2,000 spaces available at the Olympic Stadium station.

At Lykavittos, he said, a site had been defined which will allow car owners to park and then take a bus to the Metro station to travel to central Syntagma.

Laliotis, meanwhile, declared himself satisfied beyond all expectations by the public's welcoming of the Athens Metro.

[22] Briton dies in Corfu yacht fire

Corfu Port Authority officials identified the man as Keith Cooper, 32. They said Cooper was trapped in the catamaran 'Gypsy Dream' when the fire broke out at around 7.30 a.m.

The Gypsy Dream was moored at the Gouvia marina.

Two fire trucks sped to the scene and were able to contain the fire from spreading to other vessels moored there.

Cooper, who had bought the yacht in April and resided on board, apparently died of smoke inhalation, but an inquest will determine the exact cause of death.

His body was recognised by his parents, who reside permanently on the island.

Port authorities say the fire was probably sparked by a heater being used on board.

[23] Fire breaks out at Greek embassy in Tirana

No person was injured in the fire, authorities said. The fire was put out by embassy personnel and security guards on duty at the time.

Neither the embassy's communications or records departments were damaged in the blaze, which was centred around the Greek ambassador's office.

Albanian authorities believe the cause of the fire to be an electrical fault but said they would conduct a full investigation. Greek consular authorities have requested Greek experts take part in the investigation.

[24] Charges filed in fatal accident involving truckload of illegals

Six Iraqi nationals lost their lives in the traffic accident, with another 44 Iraqis injured, several seriously. One man is still hospitalised in a local clinic after losing a leg.

The 28-year-old local man was ordered remanded into custody following his testimony before a Komotini magistrate court. In a statement to a judicial investigator, Anastasios Asimakis denied that he was the driver of the fateful truck and claimed that he was elsewhere at the time of the incident, Jan. 7.

In addition, the suspect's brother, 22-year-old Stavros Asimakis, was charged with manslaughter, the illegal transport of aliens into the country's interior for profit and grand larceny (theft of the truck). He was also jailed pending trial.

A third Komotini man was charged as an accomplice and set free on bond pending trial.

A total of 80 Iraqi illegal immigrants that were transported in the overturned truck have been detained in Sappes, Rhodopi prefecture, until a decision on when they will be deported is made.

[25] Turkish pupils visiting Greece at the invitation of the French-Hellenic school

The Turkish pupils, who arrived in Greece on Sunday, met earlier with Deputy Education Minister Yiannis Anthopoulos who briefed them on changes in the Greek education system and enquired as to how a pupil enters a university in Turkey.

During the few days they will be in Greece, the Turkish pupils will visit more archaeological sites and will meet President Kostis Stephanopoulos and Foreign Minister George Papan-dreou.

[26] Archbishop of America Dimitrios speaks of the importance of education

Greek Orthodox Archbishop of America Dimitrios on Sunday officiated the liturgy services on the Three Church Fathers day, in New York's Holy Trinity Cathedral, noting the importance of philanthropy and education.

Special events on the day were held at the Greek Community Centre of the church to mark the annual Orthodox Christians' celebration of education and learning.

Dimitrios made his point on the issue last Monday, in Brookline, MA, during his visit at the Holy Cross Orthodox School of Theology and Hellenic College, campus, where he chaired a meeting of the board of trustees.

[27] Group claims bank bomb

Police said one of two small liquid gas cannisters comprising the home-made bomb planted near the bank's ATM automatic teller machine exploded at dawn, causing minor material damage.

Police found at the site of the explosion a note calling for "Freedom to the anarchists P. Katsilas and K. Karpouzos".

[28] Sunny weather is forecast

[29] Annan details core aspects of Cyprus problem at start of second round of proximity talks

UN secretary-General Kofi Annan on Monday went into detail on the core aspects of the Cyprus problem in an hour-long meeting here with President Glafcos Clerides, with which a second round of proximity talks got underway.

Annan and his special advisor for Cyprus Alvaro de Soto also met with Turkish Cypriot leader Rauf Denktash, to go into depth on the issues discussed in the first round of proximity talks that took place in New York in December.

The issues under discussion, according to de Soto, are territory, security, property and distribution of powers.

President Clerides is accompanied by his advisors, Attorney General Alecos Markides, Government Spokesman Michalis Papapetrou, Undersecretary to the President Pantelis Kouros and Foreign Ministry officials.

"Today's meeting focused on the same issues we had discussed in New York, but in more depth and with greater analysis. We did not discuss new issues," President Clerides said after the meeting at UN Headquarters in Geneva.

"We will continue to discuss the same issues," he said, adding that the four core issues are under discussion. He refrained from disclosing any details in line with a UN request for a news blackout.

On his part, Denktash said before his meeting with Annan that "we have great hopes for progress (in the talks) based on the fact that we hope that realities will govern the day and months to come."

The Turkish Cypriot leader and his advisors accompanying him had a working lunch with US officials involved in the Cyprus peace effort, namely Presidential emissary Alfred Moses, State Department coordinator Thomas Weston and US ambassador in Nicosia Donald Bandler. Denktash will also meet Britain's representative Sir David Hannay.

President Clerides had met the American officials over a working lunch held in Geneva on Sunday. The UN officials will continue their separate meetings with President Clerides and Denktash on Tuesday.

The proximity talks aim at paving the way for substantive negotiations to reach a settlement in Cyprus, divided since Turkish troops invaded and occupied 37 per cent of its territory in 1974.

[30] Denktash reiterates intransigent positions

Speaking after a meeting with UN chief Kofi Annan, Denktash also said that more than four core issues are being examined and that he has not offered any new ideas on a Cyprus settlement.

Denktash said more than four issues are being discussed and not just the four fundamental aspects of the Cyprus problem, namely the distribution of powers, security, property and territory, noting that "there is no magic in four, there are for us seven and more core issues which we discuss in extension".

He did not reveal the seven issues, saying that they are well known to President Clerides because they were raised during the first round of talks.

Asked if there is hope for progress, Denktash said "of course there will be progress. The moment you will realize the BRT (Bayrak) logo is not an enemy of yours then there will be progress".

Denktash was making an indirect remark about an incident in the government-controlled areas of the Cyprus Republic when a Turkish Cypriot journalist was asked to remove the logo of the illegal Turkish Cypriot television station during a press conference by the Greek and Cypriot Foreign Ministers earlier this month.

To a question if he had offered any new ideas to the Secretary-General, Denktash said "the Cyprus problem is an old problem" and it "does not need any new ideas". He said it "needs a sincere approach to solve the problem, it needs realism" and once this is achieved "we will have a very, very effective settlement".

Invited to define what the realities are, Denktash supported "they are very obvious, there are two states in Cyprus, two national people who have been ruling themselves for 36 years".

The Turkish Cypriot community amounted to 18 per cent of the population before the Turkish invasion and occupation of the island's northern third in 1974. The UN only recognise the Republic of Cyprus while numerous Security Council resolutions call on all states not to recognise or facilitate in any way the illegal regime in the Turkish occupied areas of Cyprus.

Denktash supported that "in reality the existence of the T/C state has to be accepted and then we will build bridges between them..."

[31] UN chief hopes for a settlement by the end of this year

Annan also stressed that the only way to reach a settlement is through a continuous hard discussion with the spirit of give and take and a will to compromise. He said more than four core issues are being discussed at the talks, some of which have been raised by Denktash.

Annan told journalists "we are building on the foundations of the last proximity talks which were adjourned in New York in December".

The UN chief said he is "encouraged that it would be possible for us to continue building on that foundation to work for a comprehensive settlement later, towards the end of the year". However he stressed that the process is "likely to be complex and difficult" and he did not expect the issue would be settled in Geneva but "we will work in earnest with the parties on a continuous basis over the coming months toward the goal of a comprehensive settlement".

Annan remarked that the atmosphere is good "and I hope we will make progress in the next week to ten days".

"We are working towards a comprehensive settlement in the course of the year", he said, stressing this can be achieved "if we work hard enough and come to the discussions with a spirit of give and take and the will to compromise".

The UN chief said they are in touch with all players who are closely following the talks as well as the European Union, noting that he met the EU High Representative for Common Foreign and Security Policy, Javier Solana. Asked if more than four core issues are being discussed, Annan said "we are discussing all the core issues and issues which are important to any of the parties", something which "is fine with us".

The UN chef clarified that Denktash has raised additional issues which are on the table, emphasising that "...we are encouraging them to come to the table to discuss these issues without any preconditions and work with us until we find a solution".

Asked if there is a possibility of meeting Denktash's demand for recognition of his breakaway regime in the Turkish occupied areas of Cyprus, Annan said "we are in a process" (of talks) but "we need to wait until the end" for the outcome.

"We never know where we will end, what the outcome will be and I cannot prejudge the outcome of the negotiations", he added.

Annan said he will be leaving Geneva Tuesday for South-East Asia and his Special Advisor Alvaro de Soto will continue the talks on his behalf and will brief the press at the end of the second round. At the same time he has asked the parties to maintain the blackout "regarding the substance of the talks, in the interest of ensuring the seriousness of the effort".

De Soto will have separate meetings with President Glafcos Clerides and Denktash Tuesday morning.

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