Athens News Agency: Daily News Bulletin in English, 00-11-02

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

CONTENTS

[01] Government submits next year's budget in parliament

[02] Britain's Cook reiterates support for Cyprus' EU accession course

[03] Turkish Deputy PM Yilmaz in Athens on Thursday

[04] Reppas denies any 'secret deal' between Greek and Turkish foreign ministers

[05] Greek FM cites need to alleviate Yugoslavia's energy crisis

[06] 'Let's de-balkanize the Balkans', FM Papandreou says in German newspaper article

[07] Premier Simitis responds to ND's accusations over foreign policy

[08] Simitis to tour Epirus on Saturday, brief officials of 3rd CSF

[09] WEU assembly speaker due in Greece for official visit

[10] ISB consortium awarded 2004 Olympics coverage

[11] Petrol prices fall

[12] Heating oil subsidy to be given in two installments: Christmas, February

[13] Greek-Turkish business conference begins on Thursday

[14] Greek stocks rebound spectacularly on ASE

[15] Athens bourse asks underwriters to keep entry share prices low

[16] Wall Street says Athens bourse should join Euronext

[17] Study says retail trade key to economy

[18] Greek railways to tender projects worth Dr82.3 bln

[19] Agriculture Ministry says no case of mad cows disease recorded in Greece

[20] Ecumenical Patriarch Vartholomeos returns home after five-day official visit to Estonia

[21] Athens Metro extension reaches Dafni station

[22] Paralympic athletes return home; government, municipal officials join welcome committee in Athens, Thessaloniki

[23] President Clerides holds talks with de Soto at UN-led Cyprus proximity talks in Geneva

[24] UN envoy speaks of 'unprecedented opportunity' for comprehensive settlement in Cyprus

[01] Government submits next year's budget in parliament

Athens, 02/11/2000 (ANA)

Addressing reporters earlier, Papantoniou stressed the social dimensions of the government's economic policy in the coming year and the tax breaks for low and middle incomes, as well as the increased funds directed at education, health, pensions and employment.

He said the budget also aimed to increased public investments while containing consumer spending and to create a government surplus of 210 billion drachmas while further reducing public debt as a percentage of GDP.

He added that total spending envisaged under the 2001 budget was 12.6 trillion drachmas, an increase of 8.2 per cent. Among the tax breaks envisaged in the new budget is a 50 per cent tax rebate to farmers on Special Consumption Tax on fuel, which aims to cushion the impact of rising oil prices on their incomes, with an additional 30 per cent for greenhouse production because of its high dependency on fuel costs.

Farmers will also benefit from reduced real estate property transfer taxes.

According to earlier reports, the 2001 budget will also introduce measures to lessen the impact of rising oil prices on the lower income brackets, subsidizing heating oil costs by between 30,000 to 50,000.

In addition, the tax-free income limit is raised to 2.4 million drachmas a year while tax exemptions for families with three children or more are increased.

Quite a few of the tax measures also target higher incomes, such as a reduction in the top income tax rate for individuals, a reduction in the taxation rate for personal companies from 30 per cent to 25 per cent and the abolition of a special tax on banking transactions.

In support of the new economy, meanwhile, the budget also plans to write off spending on training software and Internet access services against taxable income.

Deregulating domestic markets and strengthening competition will be to main instruments to mobilize the country's growth forces, Papantoniou said.

The government will deregulate the country's energy and telecommunications markets and plans to implement a more efficient policy on exploiting state assets, such as the property of Hellenic Tourism Organization.

Papantoniou said next year's budget envisaged revenues from a new flotation of ETBAbank, including the same of an equity stake along with the bank's management to a strategic partner, signing a strategic alliance between Hellenic Telecommu-nications Organization and an international telecoms group, flotation of Public Power Corporation and management offering in Corinth Canal and Greece's Horse Racing Organization.

During 2001, the government also plans to sign a strategic deal between Hellenic Post and an international partner on express delivery services, a partial privatization of Thessaloniki International Trade Fair, Olympic Airways and Piraeus Port Authority.

Public investments program's spending will rise by 10.3 percent to 2.780 trillion drachmas next year, with focus on education, health, employment and agriculture.

Total credits for projects included in the Athens 2004 Olympic Games are expected to exceed 100 billion drachmas.

Capital inflows from the European Union are expected to reach 2.263 trillion drachmas in 2001, up from 2.324 trillion drachmas this year, a decline of 2.6 percent, while capital outflows to the EU are expected to rise to 538 billion drachmas, from 490 billion, respectively.

Greece's net fiscal surplus is expected to fall by 5.9 percent next year to 1.725 trillion drachmas, from 1.834 trillion in 2000.

The budget will be put to the vote in Parliament at midnight on December 22. It will be referred to the relevant Parliamentary committee for processing on November 21 and will be presented to a Parliamentary plenary session for a debate on December 18.

Delivering the budget's volumes, as well as those of the balance sheet and account for 1999, Papantoniou said that for the first time the budget is also being submitted in electronic form (cd-rom).

ND leader sees budget straining household finances

The leader of the main opposition New Democracy party, Costas Karamanlis, charged on Wednesday that the government's 2001 budget would hurt family finances.

"Greeks will see a burden on their household budget. They will see a 'black hole' in their finances, since, due to a rise in taxes, they will pay an average 250,000 drachmas more than last year," Karamanlis said.

"The Simitis government is the most ruthless in recent decades. Its economic policy is hurting all social groups. The main victims are wage earners, pensioners and farmers," he added.

Earlier, George Alogoskoufis, ND's economic affairs spokesman said that the government's 2001 budget failed to contain tax breaks pledged by the ruling PASOK party before national elections on April 9.

The budget also lacked a social and growth orientation

He noted that according to his calculations, the average family would be called on to pay tax of 3,270,000 drachmas, up from 3,025,000 drachmas a year earlier.

"This is a major lie from the government. No only is there a lack of tax breaks, but the tax burden has increased," Alogoskoufis said.

Other opposition parties: The Communist Party of Greece said in a statement that the government had used the budget to raise taxes for wage earners and pensioners while failing to raise social spending.

In another statement, the leader of the Coalition of the Left and Progress, Nikos Constantopoulos, charged that less privileged social groups again were footing the nation's bill; and that the budget contained over-optimistic forecasts of the dollar's parity and the cost of fuel.

[02] Britain's Cook reiterates support for Cyprus' EU accession course

Athens, 02/11/2000 (ANA)

In regards to Cyprus' unhindered course towards the Union, Cook referred to decisions taken at a seminal EU summit last December in Helsinki, the same top-level meeting that bestowed coveted candidate status on Turkey following Athens' lifting of its objections.

He added that Britain anticipates that the EU will "soon be able to accept a united and undivided Cyprus into its ranks."

Papandreou directly pointed to the Helsinki "roadmap" regarding Greek-Turkish relations and the Cyprus problem as well, reiterating Greece's standing positions that the summit's conclusions on those two issues must be included in texts governing any EU-Turkey association agreement.

The British foreign minister also praised a largely unexpected development in Greek-Turkey relations this week with an agreement over Confidence-Building Measures (CBMs), a deal Papandreou worked out with his Turkish counterpart Ismail Cem in Budapest on Tuesday.

Conversely, when asked if Turkey's EU prospects are tied with its efforts at achieving a fair resolution of the Cyprus problem, Cook said that issue is not a precondition for Ankara.

[03] Turkish Deputy PM Yilmaz in Athens on Thursday

ISTANBUL, 02/11/2000 (ANA - A. Kourkoulas)

Although Yilmaz's exact itinerary has as yet to be announced, Turkish press reports noted that he would be received by, among others, Greek President Kostis Stephanopoulos; Prime Minister Costas Simitis; main opposition New Democracy leader Costas Karamanlis and Foreign Minister George Papandreou.

In addition, Athens Mayor Dimitris Avramopoulos is expected to host a reception in Yilmaz's honor.

The former Turkish premier and one-time foreign minister will be accompanied by Turkey's secretary general for European affairs, Volkan Voural, the president of the Turkish-Greek business council, Sarik Tara, as well as a delegation of Turkish entrepreneurs and journalists.

[04] Reppas denies any 'secret deal' between Greek and Turkish foreign ministers

Athens, 02/11/2000 (ANA)

He said that the two men had agreed in principle to create two categories of issues related to Greek-Turkish rapprochement, one of which would concern institutional matters that might be dealt with by the diplomatic services of the two countries, while the other would concern defense and military matters that would be dealt with under the auspices of NATO.

Reppas also stressed that Greece had recently spent large sums on a military procurements program and "showed no weakness in relation to anyone."

He said that Greece had shown a responsible stance in its relations with Turkey and reiterated that the only possible subject that could be negotiated between the two countries was that of the Aegean continental shelf.

Coalition criticizes way Greek, Turkish FMs announced CBMs: The Coalition of the Left and Progress (Synaspismos) on Wednesday criticized the way with which the Foreign Ministers of Greece and Turkey announced Confidence-Building Measures (CBMs), saying it is a tactic that causes concern.

"The joint announcement by the Foreign Ministers of Greece and Turkey on Confidence-Building Measures, the content of which was kept secret, constitutes a tactic that causes concern," the Coalition's announcement said.

"The necessary normalization of Greek-Turkish relations cannot come through surprise moves and unconvincing changes in climate and intentions. Greater concern is caused by the referral of some of these measures to the framework of NATO when Turkey's tabled proposals are known, among which some cannot and should not be accepted. Recent experience coming from the exercise 'Destined Glory 2000' and the stance of NATO's leadership create strong reservations about such mediations and settlements," it added. The foreign ministers of Greece and Turkey announced in Budapest on Tuesday that they would proceed with the development and implementation of a series of CBMs.

Greece's George Papandreou and Turkey's Ismail Cem said in a joint communique that certain CBMs would be considered within NATO's framework, whereas the rest would be adopted on a bilateral basis.

[05] Greek FM cites need to alleviate Yugoslavia's energy crisis

Athens, 02/11/2000 (ANA)

Papandreou, who received visiting British Foreign Secretary Robin Cook, also said both countries will assist the Kostunica government's efforts at democratization.

The situation in the Balkans and especially Yugoslavia was among the major topics both men discussed in their Athens meeting, in light of an EU-Balkan countries' summit meeting scheduled for later this month in Zagreb.

Anti-terrorism cooperation was also on the agenda, with Cook detailing the latest bilateral efforts to apprehend the assassins of Britain's defense attache in Athens.

Brig. Stephen Saunders was shot and fatally injured in early June by two gunmen on a motorcycle as he was driving alone in morning rush-hour traffic from his north Athens home to the British embassy. The notorious "November 17" terrorist group later claimed responsibility for the attack.

Cook praised what he called the solidarity and support shown by Greek public opinion to Saunders' widow and children, while he also called cooperation between the anti-terrorism services of both countries exemplary.

The British top diplomat also offered Britain's assistance in tracking down the elusive group's terrorists.

[06] 'Let's de-balkanize the Balkans', FM Papandreou says in German newspaper article

BERLIN, 02/11/2000 (ANA - P. Stangos)

In the article entitled "Let's de-balkanize the Balkans", the Greek minister said that it would be criminal on the part of Europe to pass up the opportunity it was given by the Serbian people's choice in the October 6 elections, for a substantial transformation of the Balkans, from a region known for crises to one of democracy, stability and security.

Greece has clear opinions on the ways to achieve the prospect of bringing the Balkans closer to Europe, Papandreou noted in his article, adding that the preconditions for a transformation would include the change of the world's big powers' traditional behavior in the region and the strengthening of cooperation between the Balkan countries.

"Firstly, we should support a region that has historically been treated unjustly and has been placed under relations of dependence and has suffered a series of partitions," he wrote, adding that "this balkanization of the region -where the big powers conducted proxy wars, and had the power in the absence of democratic institutions to create and extend their spheres of influence- should come to an end and be replaced by international coordinated efforts".

The Balkan Stability Pact is a "hopeful message" toward that end Papandreou noted.

Addressing the strengthening of cooperation in the region, the Greek minister wrote that special attention should be paid to cultural and educational issues, noting that "only with their aid (culture and education) could the necessary radical changes take place in the Balkans".

He concluded proposing the creation of a "College of Europe" branch in Thessaloniki, which could provide similar services to the region at large, as the one recently created in Warsaw, Poland, in light of the eastern expansion of the European Union.

[07] Premier Simitis responds to ND's accusations over foreign policy

Athens, 02/11/2000 (ANA)

Responding to a question tabled in Parliament by main opposition New Democracy (ND) deputy Dora Bakoyianni on Greece's foreign and defense policy, Simitis also said that during NATO's military exercise "Destined Glory 2000" Turkey showed that it created problems, stressing that NATO should now be mobilized.

"We are not being drawn into a general confrontation, a policy that would be welcomed by Turkey. We are moving ahead with efforts for the Confidence Building Measures (CBMs) within NATO's framework," Simitis said.

"We want to be an element of stability and to avoid friction for no reason. This is the responsible stance, while the policy proposed by ND should include Greece's daily condemnations of actions, for the government to raise flags and to create a climate of turbulence," the premier said, adding that such a policy was not in Greece's interest.

"We want to show Turkey that it should follow dominant international models of behavior," he said. Conditions, he added, "cannot change immediately with this policy thus we should be patient".

He underlined that Greece has proven that Turkey follows a policy "without legal basis" and that it has lost, since it was shown not to abide by principles.

On her part, Bakoyianni said that Turkey was moving in the opposite direction of what the Helsinki Summit defined and "it has not shown in the least that it wishes to adopt European principles, while step-by-step it legalizes new claims against Greece".

In response, Simitis said that the Helsinki agreements have a deadline in 2004, and that Turkey should have made significant progress by then.

[08] Simitis to tour Epirus on Saturday, brief officials of 3rd CSF

Athens, 02/11/2000 (ANA)

His tour will include Ioannina, Kastani, Aghia Marina and Kalpaki.

An announcement from the prime minister's press office said on Wednesday that Simitis will refer to the prospects opening up for the country through the investment programs of the 3rd CSF and will express the need for the correct utilization of the 17.5 trillion drachmas. This revenue, the announcement added, will change the country's image over the next six-year period (2000-2006).

[09] WEU assembly speaker due in Greece for official visit

Athens, 02/11/2000 (ANA)

During his visit, Buhler will meet with President of the Republic Kostis Stephanopoulos, Kaklamanis, Defense Minister Akis Tsohatzopoulos, Foreign Minister George Papandreou and political party leaders.

[10] ISB consortium awarded 2004 Olympics coverage

Athens, 02/11/2000 (ANA)

The ISB consortium, which covered the Atlanta and Sydney Games, will include Greece's state-run ERT network.

The full text of the ATHOC press release follows:

"The Commission of the OCOG Athens 2004 responsible for the negotiation of the Tender for Services related to the Broadcasting of the 2004 Olympic Games (OBO), in compliance with the terms of the Request for Proposals (RfP), unanimously proclaimed as "Preferred Participant" the company "International Sports Broadcasting" (ISB).

The proposal of the above mentioned company was evaluated as being technically superior (a finding which had already been made independently by the IOC Panel of Experts, made up of representatives of the most important Broadcasting Rights Holders of the 2004 Olympics), while its financial proposal was significantly lower than that of the other candidate "European Broadcasting Consortium" (EBC).

The representatives of ISB were invited to commence negotiations on 09/11/2000, in order to finalize the Contract's terms.

Upon completion of the negotiations, the award of the contract and its final content will be submitted for approval by the 17-member Board of Directors of ATHOC.

Before the Contract is signed, it will be submitted, as provided for by Law 2598/98 as amended, to the Three-Member Auditing Committee, comprised of independent judges to the State Audit Council."

[11] Petrol prices fall

Athens, 02/11/2000 (ANA)

Specifically, super and unleaded gasoline dropped by 7.2 drachmas per liter; diesel fell by 2.4 and heating oil by 3.4 drachmas per liter.

In the greater Athens area and Thessaloniki prefecture, super will sell for 276.6 drachmas per liter; unleaded 260.5; diesel 250.6 and heating oil for 150.9 drachmas per liter. Suggested retail prices are announced by the government every Wednesday and are effective for one week. (One US dollar equals roughly 400 drachmas)

[12] Heating oil subsidy to be given in two installments: Christmas, February

Athens, 02/11/2000 (ANA)

More than 1.8 million workers and pensioners will be eligible for the subsidy, which will total 50,000 drachmas for residents in northern Greece, 40,000 drachmas for those in central Greece and 30,000 drachmas for residents of the southern regions of the country, the minister said

The first installment will be given along with the Christmas bonus and the second at the end of February, while the total cost to the government's budget will total 75 billion drachmas, Papantoniou said.

[13] Greek-Turkish business conference begins on Thursday

Athens, 02/11/2000 (ANA)

Around 170 representatives each from the two countries will take part in the meeting, held under the aegis of the Greek foreign ministry.

A delegation from the European Union is to attend the conference at the Metropolitan-Chandris hotel.

Turkish Deputy Prime Minister Mesut Yilmaz, also responsible for EU issues, will address the meeting on Friday.

[14] Greek stocks rebound spectacularly on ASE

Athens, 02/11/2000 (ANA)

Shares in the construction sector were in demand, while Hellenic Telecom's share price fell 1.79 percent on profit taking.

The general index ended 2.31 percent higher at 3,885.49 points at the day's highs. Analysts said the market would soon test the 3,900-3,970 resistance levels.

Turnover was an improved 97.29 billion drachmas. The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 2.02 percent higher at 2,251.17 points, and the FTSE/ASE 40 index rose 3.39 percent to 459.92 points.

Sector indices ended as follows: Banks: 8,300.70 + 1.99% Leasing: 558.50 + 1.82% Insurance: 1,930.81 + 2.29% Investment: 1,352.77 + 3.63% Construction: 1,684.80 + 5.74% Industrials: 2,275.14 + 2.93% Miscellaneous: 3,410.63 + 3.26% Holding: 4,614.12 + 6.41%

The parallel market index for smaller capitalization stocks ended 1.97 percent higher at 428.38 points.

Broadly, advancers led decliners by 340 to 13 with another five issues unchanged.

Hellenic Telecoms, National Bank, Alpha Bank and Eurobank were the most heavily traded stocks.

Leading shares' closing prices (in Drs): Alpha Bank:

15,070 Eurobank: 10,900 Panafon: 3,300 Lambrakis Press: 7,180 National Bank: 15,600 Hellenic Petroleum: 3,845 Commercial Bank: 18,260 Attica Enterprises: 3,030 Heracles Cement: 5,070 Intracom: 10,720 Minoan Lines: 2,180 Hellenic Telecoms: 6,860 Piraeus Bank: 6,225 Titan Cement (c): 14,750 Hellenic Bottling: 5,655

Equity futures up, tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished higher on Wednesday, in line with the bourse indices on which they are based.

The FTSE/ASE 20 index closed 2.02 percent up, and the FTSE/ASE 40 ended 3.39 percent higher.

Turnover was 20.5 billion drachmas.

A total of 3,213 contracts were traded on the FTSE/ASE 20 with turnover at 14.5 billion drachmas.

On the FTSE/ASE 40 index, 3,226 contracts changed hands on turnover of 5.9 billion drachmas.

Bond prices rise in lively trade: Bond prices in the domestic secondary market on Wednesday finished up in brisk trade.

The Greek benchmark 10-year bond showed a yield of 5.92 percent from 5.969 percent a day earlier.

The Greek paper's yield spread over German bunds was 74 basis points from 75 basis points in the previous session.

Turnover through the central bank's electronic system totalled 80 billion drachmas from 38 billion drachmas in the trading day before.

Of the total, buy orders accounted for the bulk of trade.

Drachma rebounds against the US dollar: The drachma rebounded against the US dollar on Wednesday following a recovery of the euro currency's rate above the 85 cents level in international markets.

The Greek currency rose to 397.810 drachmas per dollar at Wednesday's fixing, up from 402.380 the previous day. The drachma was stable against the euro at 339.700 drachmas per euro from 339.660 drachmas on Tuesday.

[15] Athens bourse asks underwriters to keep entry share prices low

Athens, 02/11/2000 (ANA)

A poor performance by many new entries in the recent past has contributed to a reduction in the confidence of investors at the bourse, Alexakis said in the letter, which was sent to underwriters and brokerages.

[16] Wall Street says Athens bourse should join Euronext

Athens, 02/11/2000 (ANA)

Grasso made the proposal at a meeting with Panayotis Alexakis, head of the Athens Stock Exchange that took place on Monday in the US.

In addition, the Athens bourse should coordinate the southeast Europe region, he added.

Officials from the Greek market are due hold talks with Euronext representatives in Athens next week to discuss participation.

[17] Study says retail trade key to economy

Athens, 02/11/2000 (ANA)

This was ascertained by a retail trade survey for 1999 carried out every year by the Kantor Capital consulting company which analyses developments and indicators in the supermarket, electrical appliances, means of transport and clothing and footwear sectors.

Kantor's study says that great opportunities exist for entry into the ASE by retail trade. The greatest ASE listing is shown by the electrical appliances sector with 46.9 per cent, due primarily to three of the five biggest companies in the sector (Kotsovolos, Korasidis and Ilektroniki Athinon).

[18] Greek railways to tender projects worth Dr82.3 bln

Athens, 02/11/2000 (ANA)

The tenders will be held by state OSE's construction subsidiary, Ergose.

Projects worth 60.9 billion drachmas have already been tendered.

[19] Agriculture Ministry says no case of mad cows disease recorded in Greece

Athens, 02/11/2000 (ANA)

There is no connection between the mad cows disease and the "Kreutschfeld Jacobs" disease of a hereditary nature, of which eight people have died in Crete.

Anomeritis explained that they are two different diseases. "Kreutschfeld Jacobs" among people is one thing and "Kreutschfeld Jacobs" among cows is another.

He said that despite problems, European Union member-states currently enjoy the highest standards in the sector of foodstuffs security, adding that the aim of the Agriculture Ministry's leadership is to promote biological stockbreeding to achieve the production of high quality products.

[20] Ecumenical Patriarch Vartholomeos returns home after five-day official visit to Estonia

ISTANBUL, 02/11/2000 (ANA - A. Kourkoulas)

In repeated public statements, Estonia's president and prime minister expressed gratitude for all that the Ecumenical Patriarchate has done for the recognition and bolstering of the autonomy of the country's Church.

It was the Patriarch's first visit to Estonia after the restoration of the Church's autonomy to which the Ecumenical Patriarchate had made a considerable contribution, despite reaction from the Moscow Patriarchate and various other circles.

[21] Athens Metro extension reaches Dafni station

Athens, 02/11/2000 (ANA)

[22] Paralympic athletes return home; government, municipal officials join welcome committee in Athens, Thessaloniki

Athens, 02/11/2000 (ANA)

Deputy Sports Minister George Floridis, Athens Mayor Dimitris Avramopoulos and main opposition New Democracy cadre Manolis Kefaloyiannis, as well as numerous friends and relatives greeted the athletes at Athens airport.

Floridis greeted them with exceptional warmth, saying that they were "a shining example for all of us," while Avramopoulos said that their courage inspired Greece to continue its efforts to overcome difficulties in preparing for the Olympic Games in Athens in 2004.

The same sentiments were expressed by Kefaloyiannis, who said: "We are all determined to organize 2004 but we need performances like yours."

Meanwhile, the other 14 members of the Greek team returned on a flight to Thessaloniki airport, including silver medallist Maria Kalpakidou and bronze medallist Simos Paltsanitidis.

Representatives of the Thessaloniki municipality, friends and relations met them.

In statements on their arrival, the athletes complained about the lack of televised coverage of the games, even when the medals were being awarded, while noting that the support they receive gives them the courage to continue their efforts.

The Paralympic athletes also urged young people with impaired mobility to get into sports, saying that these activities lent strength, new hope for the future and helped improve the quality of life and level of mobility.

[23] President Clerides holds talks with de Soto at UN-led Cyprus proximity talks in Geneva

GENEVA, 02/11/2000 (CNA/ANA)

Replying to questions of the press after a 90-minute meeting in Geneva with de Soto, President Clerides said "it was a very good meeting" and added: "We discussed issues of substance and we proceed".

Asked which aspects they discussed, President Clerides replied "I cannot tell you", abiding by a news blackout requested by UN Secretary-General, Kofi Annan.

Invited to say whether de Soto presented any ideas, he replied negatively and added that they only had a verbal discussion on different issues.

After the meeting, President Clerides left for his hotel, where he was due to brief parliamentary party representatives comprising the National Council (top advisory body to the President on the Cyprus problem) on Wednesday's meeting.

President Clerides and de Soto will meet again on Thursday morning. Cyprus has been divided since 1974, when Turkey invaded and occupied the northern third of the island. UN-led proximity talks, separate meetings of the UN with President Clerides and Turkish Cypriot leader Rauf Denktash, began last December and a fifth round got underway on Wednesday in Geneva.

Denktash highly critical: Denktash was highly critical on Wednesday both of de Soto and Clerides on their stance regarding Europe's role in efforts for a Cyprus settlement.

Arriving for his first meeting with de Soto, Denktash reiterated his position that Cyprus' course of accession to the European Union (EU) will keep the two communities on the island apart and claimed that Turkish Cypriots will not live with Greek Cypriots again.

Asked whether he was hopeful of this new round of talks, the Turkish Cypriot leader replied positively but added "de Soto told you not to be too optimistic about this round".

Referring to statements made by de Soto earlier, Denktash described as unfortunate the fact that the UN official referred to the EU as a "motivating factor" in efforts for a Cyprus settlement.

"We will tell him now the EU has been a very negative factor because it has completely destroyed the balance between the sides", Denktash said.

He also accused President Clerides of aiming at EU accession in order "to do away with Turkey's guarantees and to deny, because it will be contrary to the norms of Europe, bizonality and exchange of property which", according to Denktash, "was agreed previously".

If this is achieved, Greek Cypriot refugees will return but Turkish Cypriots will not live with Greek Cypriots, he claimed and said he was surprised because "de Soto knows this, he must know it because we have been telling him, and yet he regards this (EU) as a motivating factor".

[24] UN envoy speaks of 'unprecedented opportunity' for comprehensive settlement in Cyprus

GENEVA, 02/11/2000 (CNA/ANA)

Speaking just before the fifth round of proximity talks which began later in the afternoon in Geneva, de Soto cautioned against great expectations for "spectacular results" in the near future, pointing out that the two sides "are very far apart on some key issues".

The UN top envoy for Cyprus also stressed that in this lengthy process "nothing is agreed until everything is agreed", but acknowledged that the UN process is beginning to go beyond generalities and is treading new ground for which the script is yet unwritten.

The Peruvian diplomat also talked about an unprecedented opportunity for a long time now afforded to the two parties in the negotiations, which is affected by various factors.

Alvaro de Soto made it clear that the "script" of the comprehensive settlement the UN is aiming at is to be written with the help of the parties, is not to be imposed by the UN and will not be presented on the basis of take it or leave it.

"What we hope to do over the next few days is to continue on this method, somewhat boringly perhaps, but certainly persistently and with the necessary patience in order to take advantage of events outside of Cyprus", de Soto said, outlining his objective for the next ten days of talks.

He said "the issues are extremely difficult, they have not gotten any easier over the years and in some ways they have become more difficult, the parties are very far apart on some key issues".

Noting that the parties do not agree on the priority of the issues to be discussed, he said the UN has to "advance simultaneously on all issues and nothing is agreed until everything is agreed".

He said there is "no prospect just now of face-to-face meetings and the traditional style of give-and-take does not present itself here, and this means that the parties will nearly have to rely on our capacity to provide them with ideas and substantive inputs to urge them along".

"We are beginning to go beyond generalities and repetition of the terrain already covered somewhat frustratingly over the previous years or decades and we are having to tread new ground for which the script is not written", de Soto said.

He said "there is an opportunity afforded by the improvement of relations between Greece and Turkey and other events, such as decisions taken by the European Union, that should take these talks along" but cautioned against any expectation that there would be any spectacular results in the near future.

"We aim at a fair and viable comprehensive settlement, we are not setting any time limit, and both parties are conscious there are opportunities that exist now and when opportunities arise they will not wait for ever", he warned, noting that this round of talks will pick up where the last round left off in September.

Replying to questions, he said he stopped being "a conduit for exchange of proposals between one side and the other" as this is not a "particularly fruitful way of approaching" the talks.

Outlining what a comprehensive settlement meant, he said "this means a settlement that contains agreements systematically organized on a number of issues that have to be addressed and solved between the parties".

"We do not want to attempt a near framework agreement of principles, we want actually legally binding instruments containing mechanisms for verification of their implementation and also a calendar for their implementation", he added.

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