Athens News Agency: Daily News Bulletin in English, 01-10-27

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

CONTENTS

[01] Euro-Med countries call for urgent int'l dialogue among religions

[02] President Stephanopoulos criticizes fanaticism

[03] President and ministers attend service in Thessaloniki

[04] PM and parties on October 28 National Day

[05] Deputy FM attends Black Sea Cooperation Pact session

[06] Judicial issues concerning Greece and Slovakia discussed

[07] Probe ordered into ex-justice minister's charges

[08] Turkish FM to visit Athens November 7-8

[09] French military chief in Greece next week

[10] U.S. ambassador calls on Archbishop Christodoulos

[11] Archbishop of All Albania Anastasios to visit Greece Nov. 2-9

[12] Israeli envoy voices optimism

[13] Avramopoulos stands by decision not to vie for town hall

[14] Young parliamentarians from E. Mediterranean meet in Rhodes

[15] Greek economy weekly review

[16] Schroder: Greek PM's mandate reduces political risk, aids bourse

[17] New labor minister pledges talks on joblessness, pensions

[18] GSEE leader requests settlement of state's IKA debt

[19] Industrialists say time is ripe for social insurance talks

[20] NovaBank seeks acquisition of Turkish bank

[21] Greek stocks end week moderately higher

[22] European Commission President holds official talks with President Clerides

[23] Cyprus government expresses profound satisfaction regarding Prodi's statements

[24] Prodi says efforts for settlement of Cyprus problem must intensify

[25] Bush says US committed to UN's effort to find just settlement of Cyprus problem

[01] Euro-Med countries call for urgent int'l dialogue among religions

AGADIR, 27/10/2001 (ANA - A. Makridis)

Euro-Med Forum members' envoys arrived at the Moroccan city to attend an emergency summit, convened by Moroccan King Mohamed IV, focusing on international anti-terrorism efforts.

The idea of holding such an international "inter-faith" dialogue has also been aggressively promoted over the past few weeks by Athens, with Greek FM George Papandreou -- the chairman of Friday's sessions -- telling reporters at a press conference afterwards that "developments exceeded our expectations."

Papandreou was joined at the press briefing by his Belgian and Moroccan counterparts, Louis Michel and Mohamed Benaissa, respectively.

The Forum's members expressed their compassion for the victims of terrorism and their solidarity to the US people, as well as "to all those suffering as a result of terrorist acts". According to the Greek FM, the session sent out a strong message of hope and a yearning for peace, while showcasing the ability of countries with different cultures and religions to work together amidst a crisis.

Conversely, the Euro-Med Forum sessions avoided dealing with the complex issue of providing a definition of terrorism, something left for negotiations at a future international summit.

Additionally, the Greek side again raised the issue of an "Olympic Truce" among nations during the holding of the 2004 Games of Athens.

EU members participating in the Euro-Med Forum include France, Italy, Spain, Portugal and Greece, along with candidate-state Malta. Other participating nations include Algeria, Egypt, Morocco, Tunisia and Turkey.

[02] President Stephanopoulos criticizes fanaticism

Athens, 27/10/2001 (ANA)

President Stephanopoulos said that religious fanaticism in particular is the worst of all and can lead to terrorist and hideous acts which are directed against both people and the democratic way of life.

"We are determined to safeguard this democratic way of life because it is the only way of life people deserve," he said.

Referring to the issue of consent and understanding between political forces, President Stephanopoulos said "political parties

are not destined to consent. They are destined to contradict each other. And I can't imagine that there will be any opposition which will consent to whatever government work because it distances itself from its purpose and neither does the democratic system function which desires this exchange of views and political contradiction which always leads to the promotion and overcoming of problems in seeking solutions."

However, President Stephanopoulos said that what should be avoided is political fanaticism in political contradictions "which clouds the mind, prevents political dialogue, prevents the seeking

and imposition of appropriate solutions and leads to situations experienced by our country in the past."

Paschalidis referred in his address to developments in the wake of the terrorist attack in the United States and said "Greece has a place in the front against extremism and terrorism and it participates actively in the front in favor of understanding between civilizations and political cooperation."

President Stephanopoulos is in Thessaloniki to attend celebrations commemorating Saint Dimitrios, the patron saint of Thessaloniki, the 89th anniversary of the city's liberation from Turkish rule and the outbreak of war between Italy and Greece on October 28, 1940. On Sunday, he will be taking the salute at a military parade.

[03] President and ministers attend service in Thessaloniki

Athens, 27/10/2001 (ANA)

The official memorial service was held at Saint Dimitrios Cathedral in the morning and was officiated by the Metropolitan of Thessaloniki Panteleimon II.

Apart from President Stephanopoulos, the service was attended by Defense Minister Yiannos Papantoniou, Minister of Macedonia and Thrace George Paschalidis, as government representatives, Development Minister Akis Tsohatzopoulos, Culture Minister Evangelos Venizelos, main opposition New Democracy party leader Costas Karamanlis, former President of the Republic Christos Sartzetakis, deputies, party representatives, the city's authorities and the armed forces' leadership.

Speaking after the event, Papantoniou said the liberation of Thessaloniki, the celebration for Saint Dimitrios and the national anniversary of October 28 signal the continuous course of Hellenism for unity and strength which will allow for even higher levels to be achieved.

Venizelos said "patriotism and defending the motherland means something much more complicated and more day-to-day than other times and I think that this is the message of major anniversaries and major historical memories which we must safeguard."

Thessaloniki Mayor Vassilis Papageorgopoulos referred to the 89-year period following the city's liberation, saying that the moral of all these struggles is that when Greeks are united they are unbeatable.

[04] PM and parties on October 28 National Day

Athens, 27/10/2001 (ANA)

"The struggle of '40 was based on values, principles and ideals.

However, we are also being called on today to serve and safeguard the same human values, struggling at completely different levels and in a world which in no way resembles the one over sixty years ago," he said.

Parliament President Apostolos Kaklamanis said the Greeks have the duty to remain united on the principles and values guiding them for thousands of years and continue the struggle to defend freedom and social justice.

Main opposition New Democracy party leader Costas Karamanlis said in his message "next to the new opportunities provided by market globalization, the abolition of traditional obstacles and borders and the free movement of people, ideas and information, new threats and new dangers are emerging. New complex issues concerning the security and protection of man's paramount right to life are being raised."

A message by the Communist Party of Greece (KKE) said the party believes that in 1940 the Greek people were not posed with dilemmas and the same applied to the years that followed, adding that at present the people should not bow to the threat "either you submit or I crush you."

The Coalition of the Left and Progress said in its message "the non-negotiable values of freedom, independence, democracy, social justice, respect for the principles of international law and the protection of human rights are not respected unfortunately even today, while their infringements among peoples and citizens in the modern world are increasing."

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said October 28 constitutes one of the leading moments promoting the patriotism of the Greek people.

Tsovolas added that the best tribute for the heroic fighters of the '40 era is the continuation of traditions and the struggle for national independence and popular sovereignty, as well as the democratic resistance of the Greek people against the neo-liberal policy of the new world order.

The message by the World Council of Hellenes Abroad (SAE) said the teachings of the '40 era constitute principles for expatriate Hellenism and their struggles to preserve Greek heritage and historical memory.

[05] Deputy FM attends Black Sea Cooperation Pact session

Athens, 27/10/2001 (ANA)

According to a foreign ministry announcement, Magriotis referred in his address to difficulties still being faced by the organization, adding that the latest dramatic events in New York and international developments that followed necessitate a careful examination of repercussions for the organization.

Magriotis hailed increased cooperation in the sector of combatting organized crime and terrorism and said that interesting prospects are appearing to utilize the energy sector, one of great geopolitical, economic and strategic importance.

[06] Judicial issues concerning Greece and Slovakia discussed

Athens, 27/10/2001 (ANA)

The Slovak judges are the president of the Supreme Court, Stefan Harabin, the president of the Civil Council, Milan Lalik, and the president of the Penal Council Committee, Stefan Minarik.

During the meeting with the Slovak judges, judicial issues concerning Greece and Slovakia were discussed.

Also present at the meeting was Supreme Court Prosecutor D. Katsireas.

[07] Probe ordered into ex-justice minister's charges

Athens, 27/10/2001 (ANA)

The probe will focus on the veracity of Stathopoulos' charges, as well as on whether ex officio offences occurred.

In a response Friday, newly appointed Justice Minister Philippos Petsalnikos -- who took over from non-deputy Stathopoulos after Tuesday's government reshuffle -- said "no interventions occurred and none will occur in the future."

Conversely, a main opposition New Democracy spokesman said questions over Stathopoulos' statements remain and demand an immediate answer, regardless of the government's "attempts to interpret and downgrade yesterday's (Thursday) very serious charges."

Spokesman Theodoros Roussopoulos also said that Stathopoulos, the one-time dean of Athens University's Law School, isn't a deputy or even a member of the Cabinet, therefore, "the prime minister is obliged to investigate the former's charges and present the results to the Greek people."

[08] Turkish FM to visit Athens November 7-8

Athens, 27/10/2001 (ANA)

Papandreou.

Meanwhile, the minutes on the exchange of agencies for the ratification of the Greek-Turkish agreements on economic cooperation and the mutual promotion and protection of investments were signed at the foreign ministry on Friday.

The agreements were signed by the director of the foreign ministry's Turkish Affairs Department Kyriakos Rodousakis and Turkish Ambassador Ali Tuygan.

The two agreements will take effect as of November 24, completing the relevant process regarding the nine Greek-Turkish agreements signed by Papandreou and Cem in Ankara in January 2000 and in Athens in the following month.

The nine agreements, apart from economic cooperation and the promotion of investments, concern cooperation in the customs, merchant marine transport, tourism, scientific and technical cooperation, environment, culture and security sectors.

[09] French military chief in Greece next week

Athens, 27/10/2001 (ANA)

Gen. Kelche is expected to meet with the defense ministry's civil and military leadership, including talks with Greek joint chief of staff Gen. Manoussos Paragioudakis. A tour of military installations and briefing by Parliament's foreign affairs and defense committee is also on the itinerary.

[10] U.S. ambassador calls on Archbishop Christodoulos

Athens, 27/10/2001 (ANA)

Archbishop Christodoulos condemned the hideous and inhuman terrorist attack on September 11 and expressed his undivided and deep sympathy for the victims' relatives and the American nation.

[11] Archbishop of All Albania Anastasios to visit Greece Nov. 2-9

Athens, 27/10/2001 (ANA)

Following his arrival a service will be held at the Athens Cathedral.

On November 3, Anastasios, who will be accompanied by a number of metropolitans, will meet with Archbishop of Athens and All Greece Christodoulos.

The following day, Anastasios and Christodoulos will conduct a service at the Athens Cathedral.

On November 5, Anastasios will visit the Holy Synod. On the same day he will be proclaimed honorary professor of Piraeus University.

During his stay in Athens, the Archbishop of Tirana will be received by President of the Republic Kostis Stephanopoulos and meet with Prime Minister Costas Simitis, Parliament President Apostolos Kaklamanis, Foreign Minister George Papandreou, Education Minister Petros Efthymiou, Athens Mayor Dimitris Avramopoulos and Albania's Ambassador to Athens. Anastasios will also receive political party leaders.

While in Greece, Anastasios will also visit philanthropic institutions.

He will depart for Tirana on November 9.

[12] Israeli envoy voices optimism

Athens, 27/10/2001 (ANA)

Sasson was speaking in reply to press questions during a visit to the Holocaust Monument in the northern Greek capital, where he placed a wreath in memory of the Thessaloniki Jews annihilated in the Nazi crematoria, as part of celebrations marking the OCHI Day holiday on Sunday.

Asked how close the establishment of a Palestinian state was, Sasson said he did not wish to make predictions.

"But I am certain that as soon as the hostilities stop and the negotiations recommence, we will be very close, perhaps not necessarily to a Palestinian state, but at least to some compromise, some autonomous areas," the ambassador said.

He also shrugged off as "foolishness" recent claims by Palestinian president Yasser Arafat of an Israeli government plan for his murder.

[13] Avramopoulos stands by decision not to vie for town hall

Athens, 27/10/2001 (ANA)

Avramopoulos, who now heads the Movement of Free Citizens (KEP), said his decision will not change even if an expanded metropolitan local government is created for the greater Athens area -- something that, in the past, he had hinted as influencing a possible reconsideration.

"Today, with the splitting up of the greater Athens area into 45 municipalities, it's obvious that we cannot harmonies policies to face our major issues," he said.

Regarding the future of his, as yet, untested political formation, the one-time career diplomat said KEP will be present in the upcoming elections.

[14] Young parliamentarians from E. Mediterranean meet in Rhodes

Athens, 27/10/2001 (ANA)

The conference, which is taking place during a period of world crisis and is also having an effect on the eastern Mediterranean region, will examine four major issues, that of terrorism, illegal immigration, narcotics and the protection of the environment.

The conference started with a discussion on the issue of illegal immigration and the delegates agreed that it will develop into an enormous problem due to the war in Afghanistan.

Particular emphasis on the problem was given by Council of Europe President Russell Johnston who referred to the two waves of illegal immigration from Africa and Asia, who are heading towards Europe, and called for cooperation among the countries.

He also referred to "the tragic phenomenon of human trade."

On the issue of terrorism, he underlined that it can be eradicated "only when democracy is blooming."

Taking part in the meeting are delegates from Egypt, Turkey, Cyprus, the Palestinian Territories and Greece.

The Turkish delegation noted the enormous problem faced by Turkey due to the influx of a great number of refugees from neighboring countries and called for cooperation with other countries to deal with the problem.

Addressing the conference, Kaklamanis referred in particular to the issue of terrorism, noting that "the answer to the action and threat of terrorism is not found in the restriction of rights which constitute a conquest of human civilization. Such an answer places in dispute the ethics of legality and democracy. Outrage and fear should not lead us to betraying our values."

[15] Greek economy weekly review

Athens, 27/10/2001 (ANA)

The new Economy and Finance Minister Nikos Christodoulakis said that he would follow the same course with his predecessor to seek growth, prosperity, higher employment and social justice.

In the Athens Stock Exchange, the general index continued moving around the 2,300-point level, around 1,000 points lower from the beginning of the year, while turnover remained at very low levels hampering any hopes for a steady recovery of the market.

Meanwhile, small investors are refraining from transactions, having lost a large part of their invested capital in the last two years, while institutional investors prefer to take early profits thus limiting the market's upward potential.

The new Athens international airport "Eleftherios Venizelos" announced during the week it was lowering all charges in an effort to reduce airlines' costs.

More than 11,000 computers, 600 servers, 2,000 printers, 23,000 fixed telephones, 9,000 mobile devices and 16,000 televisions and videos will be used during the Athens 2004 Olympic Games, according to official figures presented in a seminar on "Technology and the 2004 Olympic Games".

[16] Schroder: Greek PM's mandate reduces political risk, aids bourse

Athens, 27/10/2001 (ANA)

"The prime minister won a clear mandate for his continued leadership of the party, successfully challenging the anti-reformists. This removes the internal political risk that has added to pressure and volatility in the stock market since mid-summer," SSSB analyst Miranda Xafa said in a market report.

The Athens bourse has gained 6.0 percent since the ruling PASOK party congress ended on October 14, strengthening Simitis' position on implementing structural reform to the economy.

"The real issue is whether the highly regarded new finance minister (Nikos Christodoulakis) will get a strong mandate to accelerate reforms and privatization, providing sustainable catalysts to the equity market," Xafa said.

The prime minister had brought the party congress forward to the middle of October from spring 2002, when it was originally scheduled.

At the same time, a sharp 30 percent decline in the bourse since the start of the year has created stock bargains, Xafa said.

"We now have a positive fundamental view on most stocks in our large-cap universe."

SSSB's top picks are Hellenic Telecommunications Organization (outperform, medium risk) and Coca-Cola HBC (buy, medium

risk).

SSSB is a member of Citigroup, the world's largest financial and banking corporation.

[17] New labor minister pledges talks on joblessness, pensions

Athens, 27/10/2001 (ANA)

Reppas was speaking after a meeting with leaders of the General Confederation of Workers of Greece, which represents nearly a million workers in the private and public sectors.

He said that the process to be used in talks on reforming social insurance would be jointly determined with the confederation

[18] GSEE leader requests settlement of state's IKA debt

Athens, 27/10/2001 (ANA)

General Confederation of Workers of Greece (GSEE) president Christos Polyzogopoulos touched on the long-standing state debt towards IKA during a meeting with new National Economy and Finance Minister Nikos Christodoulakis, who was promoted from the development portfolio during the past week's government reshuffle.

Additionally, the GSEE leader called for no wavering in terms of the trilateral system (employee, employer and state) of social security contributions as well as tax reform.

Christodoulakis, meanwhile, is expected to focus on government policy to increase economic growth, while he has also announced that dialogue over the contentious issue of social security reform will recommence.

[19] Industrialists say time is ripe for social insurance talks

Athens, 27/10/2001 (ANA)

SEB president Lefteris Antonakopoulos was speaking to reporters after a meeting with newly appointed National Economy and Finance Minister Nikos Christodoulakis.

Also discussed at the meeting were an acceleration of projects part-funded by the European Union's Third Community Support Framework package, and the simplification of administrative and tax measures.

The moves are part of a wide-ranging drive launched by former development minister Christodoulakis to boost competitiveness and growth in the economy, which, in turn, would help to attract foreign investments.

[20] NovaBank seeks acquisition of Turkish bank

Athens, 27/10/2001 (ANA)

If the offer submitted on Thursday is accepted, permission for the buyout will have to be obtained from the Greek central bank.

The purchase price is believed to fall below 50 million euros, which would include the purchase price plus investments in the target bank's departments of information technology, network

and marketing; personnel costs, and the payment of accumulated losses.

State-controlled Sitebank has 13 branches in six Turkish cities.

[21] Greek stocks end week moderately higher

Athens, 27/10/2001 (ANA)

The general index ended 0.23 percent higher at 2,370.46 points, supported by the positive climate created in the market after the publication of a report by Schroder Salomon Smith Barney which upgraded almost all Greek blue chips.

Turnover, however, remained a disappointing 30.1 billion drachmas, or 88.3 million euros.

The Insurance and IT Solutions sectors scored the biggest percentage gains (1.46% and 1.34% respectively), while the Publication and Telecoms sectors suffered the heaviest losses

(1.16% and 0.45%).

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.31 percent higher, the FTSE/ASE MID 40 index rose 0.55 percent and the FTSE/ASE SmallCap 80 index ended 0.15 percent up.

Broadly, decliners led advancers by 175 to 120 with another 66 issues unchanged

The general index ended the week with a net gain of 1.04 percent.

Bond Market Close: Prices rise in brisk trade: Bond prices in the domestic secondary market on Friday finished higher in heavy trade focusing on 10-year paper.

The Greek benchmark 10-year bond showed a yield of 4.92 percent, and the yield spread over German bunds was 43 basis points.

Turnover through the central bank's electronic system totalled 1.4 billion euros.

Buy orders accounted for the bulk of turnover.

Derivatives Market Close: Equity futures end at discount: Equity futures on the Athens Derivatives Exchange on Friday ended in negative territory, with contracts on the FTSE/ASE-20 narrowing their discount to 1.0 percent from 2.0 percent, traders said.

Changing hands were 4,413 contracts on turnover of 25.2 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips gained 0.31 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks rose 0.55 percent.

[22] European Commission President holds official talks with President Clerides

NICOSIA, 27/10/2001 (CNA/ANA)

Speaking after official talks he and his aides had with the Cyprus government, Prodi, who paid a two-day official visit to Cyprus, said the EU does not want to interfere to an agreement reached by the two communities of the island but it will go on in its efforts to support the UN process aimed to reach a settlement.

Cyprus President Glafcos Clerides, who led the Cyprus delegation at the Presidential Palace talks, said he was particularly pleased that Prodi had stated that the Commission proceeded towards the conclusion of the accession negotiations with the candidate countries by the end of 2002 and that the Helsinki conclusions on Cyprus would be upheld.

The two sides discussed about EU enlargement, the future of Europe, the current international situation following the terrorist attacks in the US on September 11 and examined the course of Cyprus' accession negotiations as well as Cyprus' contribution to the enlarged Europe. President Clerides also briefed President Prodi on the latest developments in the Cyprus problem.

Prodi, who was accompanied by EU Enlargement Commissioner Gunter Verheugen and his other aides that traveled with him to Cyprus, said Cyprus "is well advanced in the preparation for membership" and "will be among the first new member group."

He noted that "in this international climate the enlargement of the EU is even more important" as "it will extend the zone of security stability, peace and justice in Europe."

"With President Clerides and the members of the government we had a very productive exchange view both on the enlargement and on the possibility of a political settlement," the Commission President noted and expressed regret that the Turkish Cypriot side refused to return to the UN peace talks on Cyprus.

He expressed the conviction that "the process of Cyprus accession to the EU and the search for a political settlement are mutually re-impulsive" and reiterated that "a settlement would of course facilitate accession but is not a precondition."

"Accession will benefit all Cypriots in both political and economic terms and we think that there is now a window of opportunity until the end of the negotiations, probably in the next half of next year for a settlement," Prodi noted and said "this will allow the provision of such an agreement to be included in the arrangements for accession."

"We trust that a political breakthrough can be achieved and we support the efforts of the UN and all the parties concerned for a settlement. Commissioner Verheugen has been very, very active in this direction and we shall go on in our efforts," the European official added and said that "at the end of the day however it will be for the Cyprus people to find the agreement".

Prodi congratulated the Cyprus government, parliament, administration and all other people involved with the harmonization with the acquis communautaire "for the excellent progress achieved towards accession," and named the chapters of taxation, competition, justice and home affairs as "political - technical difficult issues" remaining for Cyprus.

The European official expressed the conviction that these issues will be tackled in the next months.

Invited to say whether the Commission is ready to take any initiative for the resumption of the dialogue for the Cyprus problem Prodi said "we are ready to do anything that would be useful to that," and added: "we are confident of the UN role in this and we are at the service of the dialogue but of course we don't want to impose anything. We are confident that this must be solved by the current instruments."

Asked how is the EU preparing itself practically to accept a divided island, Prodi reiterated that the Union prefers a united island "but this is not a precondition," and expressed hope that "there will be a solution in the next months."

Invited to say whether the solution could deviate from the acquis the European Commissioner answered "No. No. Please let us not misunderstand. We want an agreement here and we don't want to interfere to that. Of course, we can't make any exception neither with Cyprus or with any other country, to human rights, rule of law, acquis communautaire. These serve the general rules. There cannot be any exemption from these general rules. But it is clear that we don't want, and this is the central democracy of Europe you know of subsidiary, we don't want to impose anything that you can solve and you must solve, your communality agreement, how you solve your problem."

On his part President Clerides said Prodi's visit to Cyprus was a landmark and "full of encouraging messages for our country."

"I've been particularly please following President Prodi's statements that the Commission proceeds towards the conclusion of the accession negotiations with the candidate countries by the end of 2002 and that the Helsinki decisions on Cyprus will be upheld," President Clerides added.

Soon after the statements, Prodi accompanied by Clerides inspected a guard of honor. A police band sounded the anthems of Cyprus and the EU.

After the Presidential Palace the Commission President visited the UN headquarters in Nicosia and the UN-controlled buffer zone. He also visited the cease-fire line within the walled-city of Nicosia escorted by Nicosia mayor Lellos Demetriades.

He had also a meeting with Greek Cypriot trade unionists at the Nicosia Town Hall. This meeting was originally scheduled to take place at the Ledra Palace Hotel, situated in the UN-controlled buffer zone, with the participation of Greek and Turkish Cypriot trade union leaders. But the occupation regime did not allow the Turkish Cypriot trade unionists to attend the meeting.

Prodi leaves the island this afternoon.

[23] Cyprus government expresses profound satisfaction regarding Prodi's statements

NICOSIA, 27/10/2001 (CNA/ANA)

Speaking after the conclusion of the official talks Prodi held on Friday with the Cyprus government, government spokesman Michalis Papapetrou pointed out that Prodi's visit and statements give a new impetus to Cyprus bid to join the EU and that during the talks governmental officials underlined "that Cyprus requests the respect of UN resolutions and European Court of Human Right's rulings on Cyprus."

Invited to comment on Prodi's statement that the acquis communautaire would never be an obstacle to finding a solution to the Cyprus problem, Papapetrou said that this statement did not raise any concerns to the government and noted that "the EU cannot renounce itself".

Replying to a question Papapetrou said it is "wise, right and democratic" that the EU does not interfere with issues related to its member states' security and constitution, adding that in a

different case the EU would denounce its own principles and would act as a country trying to impose an imperium.

Papapetrou said the EU has clearly stated that the current status quo on the island "is unacceptable and that it (EU) sets a specific framework in which a solution should be pursued."

He added the UN Secretary General has himself adopted the EU position on the issue. The EU is not concerned whether the settlement will provide for a united or a federal state, as long as Cyprus accedes as a country with one voice, as Prodi made it clear on Thursday, Papapetrou said.

Asked whether the EU is ready to accept Cyprus without its political problem being solved, the spokesman answered affirmatively and said the EU was to a great extend supporting Cyprus efforts to join the EU.

He expressed hope that the Cyprus problem would be solved prior to the island's accession adding, "that's what we are working for."

Replying to a question, he said that "repeatedly and firmly", EU officials, including Commissioner for enlargement Gunter Verheugen, and the Belgian Presidency "have said that a solution to the Cyprus problem should be aligned with UN Security Council resolutions" and described the wording used by the Belgian Presidency on the issue as "strong." He added that during Friday's meeting the EU reaffirmed its position that "Turkey should not expect any special treatment," by the Union and that "all that apply for other EU state members will apply for Turkey as well."

Asked whether the Cyprus government raised these issues during today's meeting, Papapetrou said, "they were raised and reconfirmed, adding that the EU position on them was crystal clear.

The spokesman said that Friday's meeting gave emphasis to the closing of EU chapters by June 2002. He added that Cyprus' accession course was discussed in detail and once more Prodi congratulated Cyprus, its government, House of Representative and its people for their firm commitment to this course.

Cyprus opened accession negotiations with the EU in 1998 and has so far provisionally closed 23 out of 29 chapters of the acquis.

The EU decided in Helsinki in December 1999 that though a political settlement is desirable it is not a precondition for Cyprus' accession.

Turkish Cypriot leader Rauf Denktash, backed by Ankara, withdrew from the UN peace talks on Cyprus last year and in early September he rejected an invitation to talks in New York, claiming the ground was not prepared and demanding recognition of his illegal regime in the Turkish-occupied part of Cyprus.

The UN Security Council said the response of the Turkish side was unjustified and expressed disappointment that the talks did not resume.

[24] Prodi says efforts for settlement of Cyprus problem must intensify

NICOSIA, 27/10/2001 (CNA/ANA)

Later on Friday, President of the European Commission and his aides who were here on a two-day official visit left Cyprus. Chief Negotiator with the EU George Vassiliou and Foreign Minister Ioannis Kasoulides were present at the unofficial ceremony for seeing off the EU officials.

Before departing, Prodi and the EU delegation, including EU Commissioner for Enlargement Gunter Verheugen, visited the Nicosia Town Hall and met with city Mayor Lellos Demetriades.

Later on he held a meeting with representatives of three Greek Cypriot Trade Unions. However, he was not able to meet with representatives of Turkish Cypriot Trade Unions, at the buffer zone, as scheduled, since Turkish Cypriot leader Rauf Denktash did not allow them to participate.|

Later on they visited the old city of Nicosia as well as the cease-fire line, accompanied by the mayor, and Vassiliou.

They also walked to the old buildings in Nicosia currently being restored with EU funding.

After the visit, Vassiliou and Kasoulides hosted an official lunch in honor of their guests.

Earlier on Friday Prodi met with three Greek Cypriot Trade Unions, SEK (Cyprus Workers' Confederation), left wing PEO Trade Union and the civil servants' Union PASIDI, who participate in the All Cyprus Trade Union Forum comprising

Greek and Turkish Cypriot Trade Unions.

Prodi was due to meet Turkish Cypriot Trade Unionists at this meeting but Denktash did not allow them to participate.

Speaking to CNA General Secretary of SEK Demetris Kittenis said that Prodi assured the Greek Cypriot Trade Unions that the EU will continue its efforts to reach a just settlement to the Cyprus problem.

[25] Bush says US committed to UN's effort to find just settlement of Cyprus problem

NICOSIA, 27/10/2001 (CNA/ANA)

According to an official press release issued here on Friday, the report, which covers the period between August 1 and end of September, 2001, has been submitted to the Congress on October 16.

In his letter, President Bush also states, that "the United Nations continued their efforts to resume the proximity talks on Cyprus that started in December 1999."|

"The United States remains committed to the United Nations effort to find a just and lasting settlement of the Cyprus problem", President Bush states.

The previous report covered the period between June 1-July 31, 2001.

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