Athens News Agency: Daily News Bulletin in English, 02-10-19

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

CONTENTS

[01] PM squarely blames lack of Cyprus issue progress on Turkish side

[02] Alternate FM meets Portuguese counterpart

[03] DM meets with NATO military committee chairman

[04] Apostolidis participates in SEDM meeting in Romania

[05] Greece-Turkey Working Group holds talks in Athens

[06] Karamanlis re-elected EPP Vice-President

[07] ND leader meets with new ND-backed prefects, appeals to other parties

[08] PASOK secretary appeals to progressive citizens in light of election

[09] ANA clarifies Miller statement over anti-terrorism pin

[10] Two alleged 'N17' members again questioned as more charges filed

[11] Greek Commissioner to take part in on line Internet interview

[12] Christodoulakis says EU stability pact "benefiting eurozone"

[13] Eurozone economy to grow 2-2.5 pct in 2003, Papademos

[14] EU finance ministers inaugurate new investments apparatus

[15] Hellenic Petroleum seeks to expand in Balkans market

[16] President appointed for Olympics real estate management firm

[17] Greek, Turkish travel agents agree closer cooperation

[18] Reports claim CoS ruling against TVX

[19] Greek weekly economic review

[20] Greek stocks drift lower on Friday

[21] Japanese news agency KYODO opens up Athens bureau

[22] Major N. Greece drug bust linked to escaped Bulgarian convict

[23] EU Commissioner says Cyprus' accession will go ahead

[24] British envoy to visit Cyprus for talks

[01] PM squarely blames lack of Cyprus issue progress on Turkish side

Athens, 19/10/2002 (ANA)

In statements after a nearly two-hour meeting with visiting Cyprus President Glafcos Clerides, the Greek premier said the process for a resolution of the Cyprus problem based on UN resolutions had not recorded any progress, while adding that both the Greek and Greek Cypriot sides have agreed on the need for continuous support of UN Secretary General’s efforts toward a solution.

Regarding Cyprus' all-important EU accession course, he said that it was progressing normally, as opposed to the island republic’s political issue. He also again referred to Helsinki summit decisions that do not consider a resolution of the political problem as a precondition for Cyprus' EU accession.

Simitis said the ongoing crucial phase in talks, as well as Cyprus’ EU accession, dominated his meeting with Clerides, intended as an exchange of views between Athens and Nicosia and for planning the next steps.

Simitis reiterated that there would be coordination between Athens and Nicosia in the light of the upcoming European Council in Copenhagen and announced that he would soon depart for a European tour of capitals to meet with British Prime Minister Tony Blair, French President Jacques Chirac, Italian President Silvio Berlusconi and German Chancellor Gerhard Schroeder, in preparation for the Council.

Finally, the prime minister reiterated that relations between Greece and Cyprus were excellent and referred to the continued cooperation within the framework of the Joint Defense Doctrine, stressing their "complete identify of views" on the process for the resolution of the Cyprus issue as well as on the completion of Cyprus EU accession course.

''For us, the Cyprus issue remains the first and foremost issue, a national issue, which requires national unity and vigilance'', the prime minister said, stressing that Cyprus’ EU accession and the resolution of the Cyprus issue comprise a common goal, ''which we hope to attain together''.

On his part, Cyprus’ president said he and Simitis had a thorough discussion on all issues, while he expressed satisfaction ''because we completely agreed on how to handle the issues on our discussion agenda; there is no disagreement, only full agreement'', he added, before thanking Athens for its continuing support to Nicosia.

Cyprus president holds talks with party leaders: Visiting Cyprus President Glafcos Clerides held talks with main opposition New Democracy party leader Costas Karamanlis on Friday, who later said Clerides briefed him on all developments, as well as on the Cyprus issue and the European Union accession course.

''It is evident that we are at a crucial turning point. We maintain that every effort should be made for a just and viable solution to be found for the Cyprus issue based on UN resolutions and, of course, acquis communautaire. Today, the entire international community is aware that the finding of a solution is being prevented by the intransigence and bad faith of the Turkish Cypriot side and Ankara,'' Karamanlis said.

He further said a solution is not and cannot be the precondition for Cyprus' accession to the EU, adding that accession should take place during the EU's Greek presidency next spring.

Karamanlis went on to say that a final decision on EU enlargement should be made at the Copenhagen summit, without footnotes, asterisks and without extortion and that there can be no enlargement without Cyprus.

Later, President Clerides met with Coalition of the Left and Progress party leader Nikos Constantopoulos, while in the morning he had met President Kostis Stephanopoulos.

Speaking after his meeting with President Clerides, Constantopoulos said ''the Cyprus issue is going through one of the most crucial and difficult periods. It is necessary for me to point out that the accession of the Republic of Cyprus to the European Union should be unimpeded.''

Constantopoulos, who was accompanied by the party's Politburo member Nikos Hountis, also stressed that ''the accession of the Republic of Cyprus benefits both communities and all the inhabitants of the island and should not be prevented from the lack of a solution to the problem of Cyprus which is strengthened by the intransigence of (Turkish Cypriot leader Rauf) Denktash. I should point out that the acquis communautaire can contribute decisively to a just and viable solution which is none other than a bizonal, bicommunal federation.''

[02] Alternate FM meets Portuguese counterpart

LISBON 19/10/2002 (ANA - E. Boukaouri)

During his meetings, Yiannitsis discussed EU enlargement and its fiscal aspects, the future of Europe and the common agricultural and fisheries policy. On the question of fisheries, Portugal requested Greece's aid to undertake initiatives when it will assume the EU presidency.

The Portuguese side does not want a multi-speed Europe, nor does it favor the election of the European Council president by ballot.

Portugal supports Turkey's EU prospects, but under the terms of the criteria set out.

In general, the two sides ascertained common points of reference, reaffirmed the excellent relations between the two countries and set the foundations for close cooperation during the Greek EU presidency. In fact, Yiannitsis invited Neves to visit Greece.

During a press conference following the meetings, Yiannitsis responded to questions on statements made by European Commission President Romano Prodi about the Stability Pact, saying that the pact should operate in support of the credibility of the EU's economy and of the economy of all its members.

''Let's not destabilize it, and let's not undermine the historic achievements, such as the euro,'' Yiannitsis said.

Regarding Prodi's proposal for the establishment of a ''government for the economy'', Yiannitsis said that if reality ''forces us to re-evaluate our decisions then let's re-evaluate them in a realistic fashion, without sending the wrong message and without following a policy that will undermine Europe internationally''.

[03] DM meets with NATO military committee chairman

Athens, 19/10/2002 (ANA)

In statements to the press, Papantoniou supported the entry of Bulgaria and Romania to the alliance, reiterating Greece's stance for the creation of a European space in defense issues.

Concerning new needs in weapon's systems for NATO, Papantoniou clarified that Greece will respond to the measure that this may be possible, as the threat from the east and the necessity for the coverage of the deficits of the European Rapid Reaction Force limit the capabilities of the country in contributing to the alliance.

Papantoniou, responding to a relevant question, confirmed that Turkish fighter jets harassed a Greek turboprop airplane of the Hellenic Star Airways during its flight from Hios to Athens.

He added that this move was part of the Turkish policy that has been on the increase over the past few months.

The Turkish aircraft were intercepted by Greek fighter jets.

Gov't spokesman confirms Turkish jetfighters' harassment of Greek civilian flight

Government spokesman Christos Protopapas on Friday confirmed newspaper reports that Turkish jetfighters had harassed a Greek civilian flight a day earlier, adding that a protest had been lodged by the foreign ministry.

Replying to press questions during a regular briefing, Protopapas said that ''this action was unacceptable, and Greek (military) aircraft immediately responded''.

He said that the Greek foreign ministry "has already lodged a protest'', adding that the civil aviation service would lodge a similar protest with ICAO.

''It is obvious that this was an unacceptable action, taking place during a particularly sensitive period,'' Protopapas said.

The Athens tabloid daily ESPRESSO, in its Friday edition, said that Turkish F16 jetfighters harassed a Greek civilian airplane over the eastern Aegean island of Chios which was en route to Athens, and departed only when Greek F16s approached to intercept them.

[04] Apostolidis participates in SEDM meeting in Romania

Athens, 19/10/2002 (ANA)

Representing Greece at the meeting, Deputy Defense Minister Loukas Apostolidis told participants that SEEBRIG had the capacity, as well as responsibility, to respond to a request for even a partial replacement of KFOR at Kosovo and SFOR in Bosnia-Herzegovina, in the event the countries participating in them either reduced or withdrew their forces.

“Greece prefers the deployment of the Brigade in the region of Kosovo, nevertheless, wherever it is sent, we will be present with continued active contribution to the efforts for cooperation and stability in our region”, he stressed.

Apostolidis also proposed the formation of a special working group to study the possibility for cooperation between SEDM member-states in the defense industry sector in the form of a “joint venture”.

Besides Greece, other countries participating in SEDM include Albania, Bulgaria, FYROM, Italy, Romania, Turkey, the U.S., Slovenia and Croatia.

[05] Greece-Turkey Working Group holds talks in Athens

Athens, 19/10/2002 (ANA)

According to a foreign ministry press release, discussed at the meeting, which was attended by officials of the two countries' foreign ministries, were developments in EU-Turkey relations in light of the EU summit in Copenhagen in December, and the planning of the Task Force's work for the immediate future.

[06] Karamanlis re-elected EPP Vice-President

Athens, 19/10/2002 (ANA)

A ND press release said the report called on all the center-right forces in Europe to create suitable conditions for the final incorporation of the countries of the Western Balkans in Europe.

The EPP conference also adopted its new program entitled ''Constitution for a Strong Europe''. The text is the first complete contribution by a political party to the discussion on the future of Europe and which was voted by the ND delegation.

[07] ND leader meets with new ND-backed prefects, appeals to other parties

Athens, 19/10/2002 (ANA)

After the half-hour meeting, ND-backed Papageorgopoulos reiterated one of his campaign's top planks, namely, the transfer of more authority from the central government to the local municipalities.

Karamanlis later met with 12 out of the 13 new prefects elected in the first round of local government elections with New Democracy’s backing, as the ND leader stressed that voters had indeed sent a “loud message of condemnation of the government’s policy”.

He also indirectly lashed out at the PASOK government, saying that citizens “turned their back on those wittingly trying to divide society with cries of intolerance, slander and underhanded machinations; to those identifying the party with the state; the ones that exploit the state with a regime-like attitude for their own use.”

Finally, only a couple of days before the second round of municipal and prefectural elections, Karamanlis appealed to voters on all sides of the political spectrum, saying that ND’s call is issued to all Greeks, “... let’s all go forth together for the things that unite us”.

[08] PASOK secretary appeals to progressive citizens in light of election

Athens, 19/10/2002 (ANA)

Laliotis, who was speaking at a press conference, committed himself publicly that PASOK will give its undivided support for every mayor and prefect having a modern and progressive program with binding proposals for the development of the municipality or prefecture whose leadership he is striving to achieve.

He called on PASOK's friends and voters to be present and actively support "worthy and capable progressive prefects and mayors".

Laliotis further said PASOK believes that a modern, democratic and progressive majority wave can be created in many ways in every prefecture and municipality.

[09] ANA clarifies Miller statement over anti-terrorism pin

Athens, 19/10/2002 (ANA)

The ANA on Friday clarified Miller’s statement of the previous day, made during a luncheon hosted by the British-Hellenic Chamber of Commerce in downtown Athens.

The pin -- depicting an open palm stressing the anti-terrorism message of “enough is enough” – was given to him recently by the son of noted publisher assassinated by the “November 17” terrorist group in the mid 1980s.

The ANA initially reported that Miller said he would remove the pin, as several “N17” suspects are in custody.

[10] Two alleged 'N17' members again questioned as more charges filed

Athens, 19/10/2002 (ANA)

Specifically, Nikos Papanastasiou was charged with complicity in the November 1983 assassination of US Navy officer George Tsantes and his driver Nikos Veloutsos, as well as in the shooting death of policeman Christos Matis during a bank robbery blamed on “N17” in December 1984.

According to reports, Papanastasiou denied any involvement in the two incidents.

In announcing his arrest in mid July, authorities said they believe Papanastasiou is the “N17” member known by the code-name 'Nikitas', one of the terror band’s founding members and among its top lieutenants.

No information was disclosed at press time regarding additional testimony given by Sotiris Kondylis, whom prosecutors charged in the attempted 1984 murder of US Army Sgt. Robert Chad as well as the botched rocket attack against the US embassy in Athens (February 1996).

Both men were interviewed by special appellate court investigating magistrate Leonidas Zervobeakos at Korydallos prison, where they and another 15 “N17” suspects are being held pending trial.

Friday’s developments come one day after the only female “N17” suspect, Angeliki Sotiropoulou, provided additional statements to Zervobeakos, especially information about her finances and a string of properties in her name.

Sotiropoulou, identified as a professional beekeeper that even made use of farm sector subsidies, has been charged in connection with the murders of British defense attache Brig. Stephen Saunders and Thanos Axarlian, a college student killed in the early 1990s when a “N17” rocket attack against then minister Ioannis Paleokrassas missed its target on a downtown Athens street.

Sotiropoulou also denied all charges against her.

Alleged N17 member to be charged with six more crimes: Alleged ''November 17'' terrorist Vasilis Xiros is expected to be charged with six additional charges on Monday.

The youngest member of the Xiros family, brother to Savvas and Christodoulos Xiros also charged with murderous terrorist actions, has already been charged with two attempted murders, bomb placement and robberies.

According to sources, Vasilis Xiros is expected to deny all new charges.

[11] Greek Commissioner to take part in on line Internet interview

BRUSSELS 19/10/2002 (ANA - M. Spinthourakis)

The interview will take place on Thursday and is part of the Commissions efforts to promote equality and is taking place after the visit of the Commissioner in the Palestinian territories and Israel.

[12] Christodoulakis says EU stability pact "benefiting eurozone"

Athens, 19/10/2002 (ANA)

The Greek minister, currently presiding Eurogroup, speaking to reporters in the sidelines of a finance ministers' meeting in Barcelona between the EU and 12 Mediterranean states, said: ''I strongly believe that a Stability and Growth Pact is a very useful tool for fiscal stability and maintaining credibility of monetary policy in the eurozone.''

EU Commission President Romano Prodi on Thursday called the pact "stupid".

[13] Eurozone economy to grow 2-2.5 pct in 2003, Papademos

Athens, 19/10/2002 (ANA)

Addressing a central bankers' club meeting in Nafplion, chaired by Bank of Greece governor Nikos Garganas, Mr. Papademos said that ECB believed that all uncertainty factors ensuring price stability in the eurozone were balanced and that the central bank would continue monitoring developments affecting the inflation trend in the medium-term. ECB's vice president said that the bank was ready to adjust its monetary policy, when needed.

The central bankers' meeting discussed the role of central banks in an environment of increased uncertainty (like the current one) and ensuring their independence.

Mr. Garganas presented a picture of the Greek economy and stressed its growth prospects in an environment of low inflation and price stability. The Greek banker also underlined the need for fiscal discipline and completion of structural changes in the Greek economy to boost its competitiveness.

The meeting attended the central bankers of Armenia (Tigran Sargsyan), Azerbaijan (Avtandil Babayev), Bosnia-Herzegoniva (Peter Nicholl), Bulgaria (Svetoslav Gavriiski), Georgia (Irakli Managadze), Kazhakstan (Grigori Marchenko), FYROM (Ljube Trpeski), Moldova (Leonid Talmaci), Romania (Sergey Isarescu), Russian Federation (Sergey Ignatiev), Turkey (Necip Sureyya Serdengecti), and Yugoslavia (Mladjan Dinkic).

[14] EU finance ministers inaugurate new investments apparatus

Athens, 19/10/2002 (ANA)

The meeting, held in Barcelona at the European Investment Bank's initiative, was attended by Greek Economy and Finance Minister Nikos Christodoulakis.

The FEMIP's opening meeting is the first to take place between EU and Mediterranean partner country finance ministers in the framework of the ''Barcelona process'', enacted in 1995 to guide cooperation between the EU and its partner countries in Maghreb and Masrak.

The meeting enabled the new apparatus's operational action program for the next four years to be determined and an in-depth analysis to be made of opportunities and obstacles existing for private investments in the economies of Mediterranean partner countries.

According to an announcement by the economy and finance ministry, the new apparatus's priorities include the gradual increase of European investment Bank financing to the 12 Mediterranean countries from 1.4 to two billion euros, as well as providing increased technical aid for the promotion of high-quality investment plans.

[15] Hellenic Petroleum seeks to expand in Balkans market

Athens, 19/10/2002 (ANA)

Hellenic Petroleum's management is currently in Podgorica, Montenegro, to attend an official transfer of a 54.3 percent equity stake in Yugopetrol AD Kotor to the Greek group.

Hellenic Petroleum's officials told Greek reporters that the group was seeking to expand its presence in the Balkans market through the acquisition of petrol station networks in Bulgaria and Serbia, while the Croatian government has asked the Greek company to participate again in a tender to privatize the state oil company INA.

[16] President appointed for Olympics real estate management firm

Athens, 19/10/2002 (ANA)

The company is also to undertake a study of use of state-owned Olympics facilities after the international event ends.

The appointment was made by Finance Minister Nikos Christodoulakis and Culture Minister Evangelos Venizelos.

[17] Greek, Turkish travel agents agree closer cooperation

Athens, 19/10/2002 (ANA)

The two unions, HATTA and TURSAB respectively, exchanged information over efforts to attract Chinese tourists in Greece and Turkey, with the Turkish union recommending that Chinese tourists visiting Istanbul would be offered a visit to Greece in the same package (2 center holidays).

HATTA and TURSAB also discussed ways to organize and offer joint travel packages to foreign tourists.

Turkish travel agents expressed their interest in cooperating with HATTA in transport issues during the Athens 2004 Olympic Games, by offering Turkish buses. They also proposed closer cooperation in the tourist sector in a joint Greek-Turkish bid to host the Euro 2008 football cup.

The two sides also agreed to increased participation in international tourist trade fairs to be held in the two countries.

[18] Reports claim CoS ruling against TVX

Athens, 19/10/2002 (ANA)

The mining concessions in question are for the Mavres Petres region in the Stageira-Akanthos municipality and the Stratonikis community, all in the northern Greek prefecture of Halkidiki.

According to as yet unconfirmed reports, a CoS plenary session unanimously voted in favor of the motion. The ruling is expected to be officially published in early November.

The CoS recently issued two controversial decisions interrupting the mining company’s gold mining operations in Olympiada, Halkidiki.

[19] Greek weekly economic review

Athens, 19/10/2002 (ANA)

The Swiss investment bank downgraded Europe's banking sector, saying it was riskier than other market sectors, and share price targets of the largest five Greek banks.

Bank of Greece governor, Nikos Garganas, said that reports over solvency problems in the domestic banking system were groundless and ill-intentioned.

In other headline news in the week, major commercial banks lowered their fixed interest rates for housing loans, while at the same time increased floating rates, a decision likely to burden family budgets.

Domestic equity mutual funds are reporting losses of up to -60 percent so far this year, while combined mutual funds return as much as -20 percent with only money market funds returning positive yields, official figures showed.

The European Commission finally adopted a "Protected Origin Name" for Greek feta cheese and approved production of the dairy product in certain regions in the country with strict standards procedures. Foreign producers were given a five-year period to change the name of their product or to halt production.

The management of Athens International Airport "Eleftherios Venizelos" said that air passenger traffic was recovering from a sharp fall it suffered after the September 11 terrorist attacks against the United States. The management forecasted that passenger traffic would fall slightly this year, compared with 2001, but noted that traffic was 10 percent up so far this month. The management said it expected passenger traffic to rise by 6-7 percent in 2003 on the precondition that no war erupts in Iraq.

[20] Greek stocks drift lower on Friday

Athens, 19/10/2002 (ANA)

The general index fell 0.38 percent to end at 1,819.66 points, with turnover a low 73.8 million euros.

The Holding, Construction and Cement sectors suffered the heaviest percentage losses of the day (2.42 percent, 1.89 percent and 1.57 percent, respectively), while the Insurance, Metals and Food-Beverage sectors scored the biggest percentage gains (4.23 percent, 1.24 percent and 0.86 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.02 percent, the FTSE/ASE MID 40 index eased 0.51 percent and the FTSE/ASE SmallCap 80 index ended 0.47 percent lower.

Broadly, decliners led advancers by 151 to 132 with another 72 issues unchanged.

The general index ended the week with a net gain of 0.69 per-cent.

The most heavily traded stocks in value were Hellenic Telecommunications Organization, Sex Form, Football Pools Organization, Alpha Bank and National Bank of Greece.

Derivatives Market Close: Turnover at 77.3 mln euros Friday

Equity Index Futures: