Athens News Agency: Daily News Bulletin in English, 00-03-09

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

CONTENTS

[01] Bank of Greece cuts key intervention rates

[02] Simitis lauds role of women in social progress

[03] Foreign ministers of FYROM, Greece and Albania to ratify joint proclamation

[04] Ruling PASOK unveils its list of state deputy candidates

[05] Karamanlis convinced of ND victory in April 9 elections

[06] KYSEA meeting covers new fighter plane acquisitions, Kosovo

[07] Greece expresses sympathy over victims of Mitrovica incident

[08] Greece concerned over Akkuyu nuclear plant in Turkey

[09] EPP Europarliamentary group meeting on Union's procedural changes

[10] Event in Athens on Thursday on occasion of Greece's application to join euro zone

[11] EU Economic Commissioner says Greece's application to join the euro is welcome

[12] Foreign minister outlines targets of film archives inaugurated by President of the Republic

[13] European cooperation in armaments will preoccupy West European Armaments Group's 14th conference

[14] National Bank of Greece launches new round of rate cuts

[15] Morgan Stanley analyst apologizes for upset over statements on Greek economy

[16] Karamanlis praises EMU application, criticizes gov't economic policies

[17] Fuel price rises announced as world rates hit nine-hear high

[18] OA to continue flights connecting Athens to Sydney, Melbourne

[19] Greek stocks plunge to 10-week lows

[20] Plans for shipping companies listing on ASE not yet finalized, Soumakis says

[21] Greek and Turkish rescue teams to hold joint training

[22] Copy of Parthenon's west frieze in exhibition in FYROM

[23] US presidential emissary for Cyprus holds 'good meeting' with Clerides

[24] UN envoy says Cyprus sides must show 'spirit of compromise'

[25] Hellenistic-era antiquities discovered in Turkish-occupied Cyprus

[26] The Athens dailies at a glance

[01] Bank of Greece cuts key intervention rates

Athens, 09/03/2000 (ANA)

After a meeting of its Monetary Policy Council, the central bank announced a 0.50 percentage point reduction in the weekly intervention rate for two-week funds from 9.75 percent to 9.25 percent. The Bank of Greece uses the rate in a tender most Wednesdays to help regulate liquidity in the interbank market.

It also slashed the primary overnight lending rate by 0.75 percentage point from 9.59 percent to 8.75 percent, and the secondary overnight rate by 0.50 percentage point from 8.5 percent to 8.0 percent.

In addition, the central bank reduced the Lombard rate by 0.75 percentage point to 10.25 percent from 11 percent.

The Monetary Policy Council said in a statement that its decision to go ahead with the rate cuts took into account the developments on the inflation front and the containment of credit expansion in the entire economy.

On January 26, the Bank of Greece slashed its main intervention rates by up to 1.0 percentage point, after cuts of again up to 0.75 percent in December 1999 and a half a percentage point across the board cut in October 1999.

The move came on the eve of the submission of Greece's formal application for EMU entry.

National economy and finance minister Yannos Papantoniou on Tuesday announced that Greece had achieved all five benchmarks for joining the euro zone, slated for January 1, 2001, after the fifth criterion of inflation was achieved in February.

Greece's 12-month EU harmonized inflation fell to 2.1 percent in February.

Central bank chief urges wage, price restraint: Bank of Greece Governor Lucas Papademos on Wednesday urged wage and price restraint in 2000 in order to combat a resurgence in consumer price inflation triggered by soaring oil prices globally.

After submitting a central bank monetary report to parliament, Papademos told a news conference that price rises in fuel could also carry through into the price of finished goods.

At the same time, price stability remained a feasible goal, if the right monetary and fiscal policy mix, coupled with structural economic reform, was attained, he said.

Beyond immediate inflationary pressures, structural reform should be accelerated, leading to higher long-term productivity and competitiveness, the central bank governor added.

The reforms are pledged in the government's latest program to align the economy with the European Union.

They are also needed to ensure Greece's survival in the 11-member euro zone, which the country hopes to join on January 1, 2001.

The government is to formally submit its euro-zone bid to the EU on Thursday, and a decision is expected at an EU summit in Lisbon in June.

The last stumbling block to Greek euro-zone entry has been lowering inflation, but Papademos said the battle appeared to have been won despite the oil-linked resurgence, which also affects remaining EU member states.

He called on industrialists to exercise price restraint, a practicable policy in the wake of high profits posted in the sector. In addition, wage rises also should be tailored to the country's counter-inflationary policy.

Furthermore, Papademos announced that credit curbs on commercial banks in place since March last year would be lifted at the end of the month; but the central bank would in future make use of interest rates policy to rein in excessive lending.

The central bank is aiming for a rise in liquidity under its M4N gauge of 5-7 percent in 2000 against 7-9 percent in 1999. The target is to comply with counter-inflationary policy.

Finally, Greek interest rates were likely to undergo an easier alignment with their European equivalents due to rate hikes expected abroad, which would help to narrow the gap, Papademos said.

He added that contributing to the central bank's decision to lower its key, short-term intervention rates on Wednesday were a continuing decline in core inflation to 1.7 percent in February. Core inflation excludes the more volatile prices of oil and fruit and vegetables.

Average annual EU harmonized inflation had decelerated; the euro-zone entry inflation criterion was expected to be met; a deceleration in liquidity growth had been attained; and the prospect of a rise in international money market rates was in sight, Papademos said.

[02] Simitis lauds role of women in social progress

Athens, 09/03/2000 (ANA)

"Women bring a different quality to politics, fresh ideas and initiatives. The contribution of female sensitivity to fighting inequality, exclusion and exploitation is crucial for the humanization of politics and the conquest of a new civilization in everyday life," he told a women's rally in the Peace and Friend-ship Stadium in Piraeus.

"We must disentangle ourselves from the perception of equality and woman's position in society as the 'women problem'. It is par excellence a common social problem for all of us, it is a condition for any discussion for a balanced and fruitful development of society ... We consider that social progress is impossible without their active participation," he said.

Simitis said a lot had been done in the direction of sex equality but also a lot more remained to be done.

"Greece has had one of the most advanced and progressive bodies of law since 1983. Almost all provisions regarding the position of women in the family, work and social security were introduced by the governments of PASOK," he said.

The ruling party's 'Dimitra' plan included greater support to women's agricultural cooperatives and the promotion of self-employment and business initiatives among women, Simitis said.

[03] Foreign ministers of FYROM, Greece and Albania to ratify joint proclamation

OHRID, 09/03/2000 (ANA - M. Vichou)

Reliable sources said the proclamation will refer to the further development of political, economic and social cooperation, as well as to the need for cooperation on security issues, and on cracking down on crime in particular, while the ministers are also expected to condemn violence in Kosovo from whatever source.

Greek Foreign Minister George Papandreou said after the working lunch that "these meetings have now been enacted and constitute a sign of hope for the region's difficult problems.

"Basic issues were discussed concerning the needs of our two neighboring countries in the framework of the Stability Pact, as well as issues regarding their accession to the European Union, which will soon preoccupy a special meeting in Brussels, and security issues."

On his part, Albanian Foreign Minister Paskal Milo said that "a strong political will was expressed to overcome aggressiveness and misunderstandings by those who do not want cooperation in the region."

FYROM's Foreign Minister Alexander Dimitrov termed the meeting "a milestone opening a new page in relations between the three countries."

[04] Ruling PASOK unveils its list of state deputy candidates

Athens, 09/03/2000 (ANA)

The top name on PASOK's list is long-time party cadre and former Euro-MP Paraskevas Avgerinos, followed by Aggeliki Laiou, finance deputy minister Nikos Christodoulakis, Christina Spyraki, one-time Thessaloniki mayoral candidate Spyros Vougias, close PM adviser Theodoros Tsoukatos, Mihalis Neonakis, Elias Efthimiopoulos, Tzanetos Karamihas, Julia Dimakopoulou, Anna Fragoudaki and Constantinos Tsoukalas.

Vougias, a popular Thessaloniki university transportation expert and professor who was supported by the Coalition of the Left (Synaspismos) during his mayoral candidacy, said in a written statement that Prime Minister Costas Simitis' and the government's efforts at the "democratic modernization of Greek society" as well as the opportunities afforded him to contribute to "major changes" were among the reasons he accepted the offer for a mostly assured spot in Parliament under PASOK's banner.

Synaspismos: In response to the Vougias candidacy, the Synaspismos press office later issued a statement reading: "Mr. Vougias with his decision today proved that what in the end really interested him was a surefire deputy's seat."

[05] Karamanlis convinced of ND victory in April 9 elections

Athens, 09/03/2000 (ANA)

In an interview with the Athens afternoon daily "TA NEA" appearing Wednesday, Karamanlis said he had "complete confidence" in the party's young press spokesman Aris Spiliotopoulos and felt justified in his decision include Spiliotopoulos on the ND list of candidates, in a bid to put an end to the "underground clash" that has broken out in the party between the "old guard" and the press spokesman over the candidacy.

In a bid to placate the party's veteran cadres, who fear that they will be left out in the event of an ND victory, Karamanlis said that ND, as government, would combine "the wisdom of experience" with the "dynamic of the young and new".

He said there were in internal problems in ND, and that all the cadres were working together, adding that a ND victory would be the product of "everyone's effort".

[06] KYSEA meeting covers new fighter plane acquisitions, Kosovo

Athens, 09/03/2000 (ANA)

In terms of the air force program, the course of negotiations for the acquisition of new fighter planes was discussed, with Defense Minister Akis Tsohatzopoulos later announcing that Greece is interested in purchasing 60 fourth-generation "Eurofighter" planes. KYSEA has previously approved the multinational Eurofighter purchase, although the exact number of aircraft remained to be settled. The government also hopes to participate in the four-nation consortium that has designed and is manufacturing the warplane.

The Greek minister added that an option for another 30 warplanes is envisioned, with the contract to be signed after the April 9 general elections in Greece. Tsohatzopoulos said the cost of the purchase has decreased by 13 percent, with the contract expected to total some 10 billion marks.

The government decided last year on the purchase of around 50 F-16 Block 50+ combat aircraft and some 15 Mirage 2000-5 warplanes to replace losses in the air force's current Mirage fleet.

In terms of the US-made F-16s, Tsohatzopoulos said a bilateral agreement with Washington would be signed at the end of the week, although negotiations over the engine model and self-protection systems will be covered in the future.

In a related development, a decision on the air force's new transport plane was delayed due to the election season, while negotiations for the Mirage 2000-5 are in the final phase, it was reported.

Kosovo: As far as developments in the strife-torn Yugoslav province of Kosovo are concerned, Tsohatzopoulos attributed the recent tension to "revised initiatives" and "liberation moves" in southern Serbia, among others.

The Greek government estimates that European Union initiatives through the SE European Stability pact can reverse the tense situation.

Participants at the KYSEA meeting were also briefed on the rotation of NATO forces in the Mitrovica township of northern Kosovo, including the participation of a Greek army company.

[07] Greece expresses sympathy over victims of Mitrovica incident

Athens, 09/03/2000 (ANA)

"We express our sympathy for the French soldiers-members of KFOR and the Serbian citizens injured in yesterday's (Tuesday's) incidents in Mitrovica," Foreign Ministry spokes-man Panayiotis Beglitis said.

"We also express our concern over the continuing tension in Kosovo, which could become uncontrollable and lead to a new military confrontation. From the beginning of this crisis we stressed the need for respect of human rights of all Kosovo residents, irrespective of their religious or racial origin," he added.

"The multi-ethnic character of Kosovo, as well as the status of wide autonomy and self-rule, within the borders of the Federal Republic of Yugoslavia must be secured.

"The international community is obliged, without delays, to enforce all the articles of the 1244 resolution of the United Nations and isolate all those extremist elements, which through their actions, such as those in Mitrovica, feed the tension and conflict in Kosovo," he concluded.

[08] Greece concerned over Akkuyu nuclear plant in Turkey

Athens, 09/03/2000 (ANA)

He also informed Cem that Greece will not be participating in the exercise to be held in the Aegean's international airspace and in the Mediterranean at the end of April with the illegal binding of a section of Nicosia's airspace.

Papandreou pointed out to Cem that Greece does not participate in exercises which do not take the principles of international law and international legality into consideration, adding that since the Turkish exercise will retain its known planning Greece will not be participating.

[09] EPP Europarliamentary group meeting on Union's procedural changes

PARIS, 09/03/2000 (ANA-O. Tsipira)

Dimitrakopoulos, elected under the flag of Greek main opposition New Democracy (ND), is on the Europarliament committee drafting the reforms of Union procedures and institutions ahead of the Union's upcoming enlargement.

Addressing a three-day meeting of the EPP Europarliament group, Dimitrakopoulos said that the EU is not only a Union of states, but also a Union of peoples, so European citizens should be made allies of the Union's processes. In that framework special attention must be paid to the Fundamental Rights Charter drafted by the Union, to culture, the economy and social issues.

[10] Event in Athens on Thursday on occasion of Greece's application to join euro zone

Athens, 09/03/2000 (ANA)

Greece submits its application on Thursday.

The course of the consumer price index was announced on Tuesday, the levels of which are within the boundaries set as a prerequisite for Greece's entry into the euro zone.

The other criteria (public debt, public sector deficit) have already been met, on the basis of the economic performances achieved over the last years.

[11] EU Economic Commissioner says Greece's application to join the euro is welcome

BRUSSELS, 09/03/2000 (ANA - M. Spinthourakis)

"Every enlargement of the euro-zone constitutes a positive message," he said, adding that he cannot evaluate the Greek application at this time, adding that this process is left to relevant Union treaties.

The Spanish Commissioner was speaking at a press conference on the occasion of the European Commission's ratification on Wednesday of the stability programs of France, Portugal and Luxembourg.

[12] Foreign minister outlines targets of film archives inaugurated by President of the Republic

Athens, 09/03/2000 (ANA)

Earlier, Foreign Minister George Papandreou outlined the main targets of the film archives, underlining the contribution of his predecessor at the Foreign Ministry Theodoros Pangalos in their creation.

Papandreou said one of the purposes of creating the archives is to contribute to salvaging and preserving the country's film heritage, noting the great importance of audio-visual means for Greece's political, social and cultural history.

[13] European cooperation in armaments will preoccupy West European Armaments Group's 14th conference

Athens, 09/03/2000 (ANA)

National Defense Minister Akis Tsohatzopoulos will inaugurate the conference, while Armaments General Director Ioannis Sbokos will represent Greece.

WEAGs armaments directors and their aides will attend the conference. Greece is holding WEAG's presidency over the 1999-2000 period.

[14] National Bank of Greece launches new round of rate cuts

Athens, 09/03/2000 (ANA)

State-run National, which is the country's largest bank, reduced its savings deposit rate by 50 basis points to 6.50 percent.

It cut its loan rates by up to 75 basis points. The bank's floating-rate housing loan fell to 10.25 percent and savings housing loan rate to 9.40 percent.

The base loan rate for operating capital (fluctuating) dropped 50 basis points to 10.40 percent.

Most consumer credit rates fell by 50 basis points with personal loans now at 15.25 percent.

The rate cuts are the bank's second this year. The first round came on January 31, also in the wake of a reduction in intervention rates by the Bank of Greece.

On Wednesday, the central bank lowered its main intervention rates by up to 75 basis points.

[15] Morgan Stanley analyst apologizes for upset over statements on Greek economy

LONDON, 09/03/2000 (ANA)

"I am deeply sorry that my interview with Reuters was viewed as a strong criticism of Greece's economic performance ... It is unfortunate that a brief conversation with a journalist has been blown out of all proportion, but ... I maintain my view that this effect (of Greece's EMU entry on the euro and the ECB's monetary policy) will be very limited," said Eric Chaney, executive director of MSDW, in a letter to Nikos Papadakis, the Greek embassy's Press Counselor in London who replied to the comments.

In the interview, Chaney was particularly critical of Greece's rate of growth record.

"Greece is a total catastrophe in terms of growth. The speed at which it is catching up in terms of gross domestic product per capita is zero ... Greece would need growth rates of around 10 percent to start seriously narrowing the gap," he said.

In his reply, Papadakis challenged Chaney's assessment.

"In the 1950s, Greece's average per capita income was 25 percent of the European average. In 1998, according to the Eurostat statistics that you quote it was 50 percent, i.e. 10,200 euros... According to the 'Economist's Intelligence Unit' it rose in 1999 to 11,291 euros, i.e. by slightly more than 10 percent. At this rate, Greece will catch up with her partners within a decade ... Greece's growth rate has consistently outpaced Europe's," he said.

[16] Karamanlis praises EMU application, criticizes gov't economic policies

Athens, 09/03/2000 (ANA)

Karamanlis made the statements during a press conference on Wednesday in Athens, as pre-election activities continue to heat up in the run-up before general elections on April 9.

The ND president also charged that the government's economic policies are creating "severe problems in the post-EMU era", adding that Greece's 'euro zone' entry wasn't a choice of the current government and that the "country is essentially entering EMU on auto-pilot".

Karamanlis appeared confident of ND's victory in the upcoming elections, noting that the government's argument of a ND victory jeopardizing 'euro zone' entry was "absurd and unsupported". He responded by saying ND was Greece's European-oriented party par excellence, stressing there is a different economic policy from the government's that can be implemented.

In other statements, he said funding sources exist for implementing ND's program, with among others, includes increased financial support for farmers and tax breaks - as he said, no more than 340 billion drachmas would be necessary.

[17] Fuel price rises announced as world rates hit nine-hear high

Athens, 09/03/2000 (ANA)

The Greek development ministry announced price increases of 10.30 dr. per litre for super gasoline and 10.50 dr. per litre for unleaded gasoline, effective Thursday and applying for one week.

Smaller increases of 6.30 dr. per litre and 6.90 dr. per litre were announced for petrol and heating oil, respectively.

[18] OA to continue flights connecting Athens to Sydney, Melbourne

Athens, 09/03/2000 (ANA)

OA Managing Director Rod Lynch decided to retain the Melbourne flight, despite claims that it was and still remains unprofitable. "Sydney remains the most profitable destination and OA is committed in maintaining flights to that city," Lynch said.

OA will continue to fly in Melbourne twice a week until August, it will then cut one flight a week, which will be replaced by a charter flight connecting Melbourne to the Sydney-Athens route.

Lynch's change of heart in maintaining the route came after discussions with the government of Victoria, Australia, the ex-patriate Greek community in Melbourne and Greek travel agents.

[19] Greek stocks plunge to 10-week lows

Athens, 09/03/2000 (ANA)

Trade was extremely nervous with share prices on a free-fall course, following big losses in international markets. Dealers said investors ignored a decision by the Bank of Greece to cut interest rates by 75 basis points.

The general index ended at 4,868.13 points, down 1.48 percent, but sharply off the day's lows of 4,724.25 points. Dealers said selective buying helped the index to recover a big part of its earlier losses.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 2,743.72 points, off 0.64 percent, while the FTSE/ASE 40 index ended 4.49 percent lower at 717.61.

Turnover was a moderate 234 billion drachmas.

Sector indices ended as follows: Banks: 9,317.29 -0.03% Leasing: 1,081.45 -2.91% Insurance: 3,266.91 -0.38% Investment: 2,375.42 -0.37% Construction: 2,227.59 -5.92% Industrials: 2,884.18 -2.48% Miscellaneous: 5,582.64 -2.76% Holding: 4,961.32 -2.68%

The parallel market index for smaller capitalization stocks ended at 986.53 points, off 7.98 percent.

Broadly, decliners led advancers by 311 to 35 with another two issues unchanged.

Naftemporiki saw its share jump 88.37 percent higher on the first trading in the market. TEB, Mytilineos, Aktor, Electra, Vassilopoulos, Athens Water and Xifias ended with big percentage gains.

Boutaris, Edrasis, Giannoussis, Macedonian Spinning, Varagis, Viosol, Naoussa Spinning, Desmos were among a big number of shares ended at the day's 10.0 percent limit down.

Hellenic Telecoms, Athens Water, Panafon and Hellenic Petroleum were the most heavily traded stocks.

Leading shares' closing prices (in Drs): Alpha Credit: 24,650 National Bank: 23,480 Commercial Bank: 21,740 Ergobank: 9,150 Eurobank: 12,210 Heracles Cement: 8,650 Hellenic Petroleum: 4,930 Intracom: 16,500 Minoan Lines: 7,250 Hellenic Telecoms: 10,475 Panafon: 5,850 Titan Cement: 15,200

Derivatives prices end sharply lower: Derivatives prices ended lower on the Athens Derivatives Exchange on Wednesday following losses in the two benchmark indices of the market.

The FTSE/ASE 20 ended 0.64 percent lower while the FTSE/ASE 40 dropped 4.49 percent.

A total of 3,012 contracts were traded in the FTSE/ASE 20 market, worth 19.1 billion drachmas. The March expiring contract ended at 2,778 points, the May contracts at 2,818 and the June contract at 2,812 points.

Turnover in the FTSE/ASE 40 index totalled 3.1 billion drachmas with 1,127 contracts traded. The March expiring contract ended at 710.50 points, the April contract at 736 and the June contract at 770 points.

Bonds shrug off central bank rate cut, track bunds: Bonds in the domestic secondary market on Wednesday brushed off a cut in key central bank intervention rates of up to 75 basis points after already discounting the move.

Again caught in sell-oriented trade, Greek paper tracked German bonds, which were depressed by the euro's latest plunge against the US dollar.

The Greek benchmark 10-year bond showed a yield of 6.33 percent from 6.32 percent a day earlier and 6.33 percent on Monday.

The paper's yield spread over German bunds was 88-89 basis points from 89 basis points in the previous session and 88 basis points for three straight trading days before that.

Trade through the central bank's electronic system totalled 56 billion drachmas from 60 billion drachmas a day earlier and 64 billion drachmas on Monday.

Sell orders accounted for 46 billion drachmas of Wednesday's turnover.

Warburg Dillon said on Tuesday in a market report for customers that Greek 15- and 20-year bonds were attractive buys for investors.

Drachma slumps vs. dollar, flat vs. euro: The drachma slumped against the US dollar on Wednesday in line with the greenback's rise in world markets. The national currency remained unchanged against the euro.

At the central bank's daily fixing, the euro was set at 333.570 drachmas, the same as a day earlier, from 333.690 drachmas on Monday and 333.700 drachmas on Friday.

Also at the fixing, the US dollar was set at 348.810 drachmas from 347.370 drachmas in the previous session and 345.780 drachmas on Monday

[20] Plans for shipping companies listing on ASE not yet finalized, Soumakis says

Athens, 09/03/2000 (ANA)

"We are interested in protecting investors and to list credible shipping companies in the market," he said.

A committee by national economy and merchant marine ministries is discussing ways to allow shipping companies, operating ocean-going vessels, to be listed on the ASE.

Ship-owners react to government proposals covering the maximum accepted age of vessels (15 years), demanding a higher age limit.

According to shipping sources, the draft legislation also envisages that six, at least, ocean-going ships of 3,000 tons each should be fully owned by shipping companies during the period of submitting listing applications. Shipping companies' equity capital should be a minimum 10 billion drachmas, fully payable.

Each candidate company's equity capital should be invested at a minimum rate of 65 percent to other shipping companies' equity capital

The Greek legislation certifies as an ocean-going vessel, any vessel registered in an international ship registry recognized by the Greek state and can be used directly for dry, bulk or liquid cargo charters

[21] Greek and Turkish rescue teams to hold joint training

Athens, 09/03/2000 (ANA)

The team flew into Athens Wednesday morning and headed to the western port city of Patras to meet with the Greek Red Cross' training coordination officials.

AKUT and the Greek Red Cross' Samaritan Corps Rescue Squad are planning a joint training program that is slated to take place July 8-23 in Patras.

The two squads plan to hold the joint training in order to coordinate their rescue methods and practices so as to be able to operate as a team for greater efficiency in the event of disasters.

The idea for coordinated training emerged after the Greek EMAK and Turkish AKUT emergency rescue units rushed to assist in recovery operations in Turkey and Greece respectively after killer earthquakes in the two countries last year.

The July training session is the first stage of a one-year cooperation program titled "Program for Harmonization of Rescue Practices and Methods", which is being financed by the Greek foreign ministry.

[22] Copy of Parthenon's west frieze in exhibition in FYROM

Athens, 09/03/2000 (ANA)

The exhibition will be remain open to the public until the end of the month and was organized by the Greek Institute of Culture in cooperation with the Skopje museum.

A concert by Greek artists will embellish the events inaugurating the cultural exchange event, which is the first of its kind between the two countries.

[23] US presidential emissary for Cyprus holds 'good meeting' with Clerides

NICOSIA, 09/03/2000 (CNA/ANA)

In a short statement after his meeting, Moses said, "it was a good meeting" but refrained from making any further comment, noting that "it is not my practice to comment on the substance of talks".

He said he would make a fuller statement before his departure from the island.

The US diplomat, who is accompanied by State Department Coordinator Thomas Weston and US Ambassador in Nicosia Donald Bandler, also met on Wednesday with British High Commissioner to Cyprus Edward Clay and had lunch with Foreign Minister Ioannis Kasoulides.

Speaking on arrival on Tuesday the US envoy expressed the belief this is "the best time" for a comprehensive settlement of the Cyprus problem.

Government spokesman Michalis Papapetrou replying to questions said the American officials did not put forward any new ideas nor did they make any suggestions on confidence building measures, but noted that the government is open to any new views or ideas as long as they are within the framework of UN decisions for a settlement.

"The President of the Republic had the opportunity to elaborate on our side's views regarding the need to upgrade the talks and make them more substantive so they become more effective and are speeded up," he said.

The US officials, said Papapetrou, share the view that the talks should be more substantive, but refrained from elaborating on how this could be achieved.

A new effort to reach a settlement in Cyprus, dived since Turkish troops occupied 37 per cent of its territory in 1974, got underway last December and two rounds of UN-led talks with the two sides have been held so far.

A third round of separate meetings, proximity talks, is scheduled to begin in New York on May 23.

Asked if the government would be satisfied with direct talks, its spokesman said "this is an aim but it is up to the Secretary General to decide when", adding this is something the president put forward at his meeting with the American officials.

"It is our wish that this procedure is not perpetuated and that it will soon move towards a settlement," Papapetrou said.

The president and his advisors will have a working lunch with the US officials on Friday.

[24] UN envoy says Cyprus sides must show 'spirit of compromise'

NICOSIA, 09/03/2000 (CNA/ANA)

Speaking at a press conference with which he ended his first visit to the island since his appointment last year, de Soto also said the UN is conducting the new round of talks with Security Council resolutions indicating the path.

Replying to the possibility of face-to-face talks between the Greek Cypriot and Turkish Cypriot sides taking place, the UN envoy said this is not the only way to conduct negotiations and underlined the importance of negotiations being meaningful when they begin so as to lead to a comprehensive settlement.

He also said that confidence-building measures are not under discussion even though there is an ample choice of such measures that could be made by the two sides.

"The circumstances internationally are in place for progress to be made and not only progress but actual movement in the direction of the long elusive goal of a comprehensive settlement. The conditions are in place for this. It will require a spirit of compromise by the two sides," the Peruvian envoy said.

Invited to elaborate, he said December's European Union Helsinki summit, which gave Turkey a candidate status and confirmed Cyprus can join its ranks even if a settlement is not reached, as well as rapprochement between Greece and Turkey "are central to the goal of achieving a Cyprus settlement."

"Besides that what is clear is that we now have been encouraged in sequence by the G8 and subsequently by the Security Council and the actual process is underway," de Soto said, referring to a statement issued by the Group of Seven most industrialized countries plus Russia last year calling for negotiations on the Cyprus question that was later adopted by the Security Council.

He acknowledged it is not the first time a peace process on Cyprus is underway, but noted that "the external circumstances are perhaps more favorable than they have been in memory".

The UN chief's special adviser for Cyprus recalled that two rounds of proximity talks between the two sides have already taken place and another is scheduled to begin in New York on May 23, noting that "if things are going well and if all concerned are cooperating with the effort underway we can look toward a process that will continue to move forward in a sustained and hopefully predictable way".

He pointed out that this process "has the clear support of the international community" and that foreign governments "are urging this along", in the belief that "the time has come to move towards a comprehensive settlement".

[25] Hellenistic-era antiquities discovered in Turkish-occupied Cyprus

NICOSIA, 09/03/2000 (ANA)

[26] The Athens dailies at a glance

ADESMEFTOS TYPOS (Mitsis): "Budget 2001; the future has begun.... Zero increases in salaries and pensions; social expenditures 'flexible'; wild tax hunt".

AKROPOLIS: "Burning fuel; big chill on the Athens Bourse; the oil price increases and the drop in the index overshadow Greece's EMU entry".

APOGEVMATINI: "Two international reports reveal the government's fake economic policy; the four bombs that burn Simitis: Athens Bourse, inflation, fuel and austerity".

ATHINAIKI: "Morgan's thunderbolt; a shock report on the Athens Bourse and the economy".

AVGHI: "Christodoulos (Archbishop of Athens and all Greece) sets up a Holy Inquisition, by sending the book by communist former MP Mimis Androulakis (criticized by religious circles as being sacrilegious) to the fire".

AVRIANI: "Loans for illegally-constructed buildings; what the Environment ministry's decision foresees".

CHORA: "The Athens Bourse upsets the opinion polls and demolishes Simitis; anger from 500,000 investors".

ELEFTHERI ORA: "After the nationwide reactions against (author) Mimis) Androulakis' blasphemous book, 'come to your senses".

ELEFTHEROS: "Black Tuesday on the Athens Bourse", and elsewhere: "The Church has declared a holy war on Mimis Androulakis' book".

ELEFTHEROS TYPOS: "A package of austerity for salaries and pensions; what PASOK has in store in the event it is re-elected -- cuts in social welfare expenditures".

ELEFTHEROTYPIA, in an Economy supplement, front-paged an assessment by the newspaper on the profits and damages over the past eight years under the headline: "EMU the cost for a place in the future".

ESTIA: "Not up to the circumstance; an unacceptable scene in the New Democracy party".

ETHNOS: "The new salaries in the armed forces and the security corps; the provision is ready and will become effective on July 1".

EXOUSIA: "We've cut the ribbon of inflation; Bank of Greece governor Papademos will announce today cuts in its intervention rates of up to 0.75 percent".

KATHIMERINI: "Money markets and fuel are pressuring; the black gold (oil) is moving towards 35 dollars a barrel; a 3.6 percent dive on Wall Street yesterday".

LOGOS: "Self-destructive psychology and repeated panic sales on the Athens Bourse: the 'death of the... small investor' ".

NIKI: "Rumors struck again at the Athens Bourse; New Democracy party speculation at the Athens Stock Exchange; a negative ghost-report on the economy".

RIZOSPASTIS: "An announcement for March 8; women are decisively in favor of the Communist Party of Greece (KKE)".

STO KARFI: "Athens Bourse in a suffocating grip based on a political plan; who are striking behind the back, who are speculating, and what are the next steps".

TA NEA carried an exclusive interview with New Democracy leader Costas Karamanlis under the front-page headline: "He casts the gauntlet over Aris (Spiliotopoulos, the N.D. party's press spokesman and election candidate)".

TO VIMA: "Oil and the dollar cause upheaval in all markets, this partially explains the big dive in the shares prices".

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