Athens News Agency: Daily News Bulletin in English, 03-07-29

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

CONTENTS

[01] Premier outlines challenges and priorities of socialism today

[02] Gov't wraps up first round of briefings on election law

[03] Parl't speaker seeks harsh penalties for MPs concealing assets

[04] Public order minister discusses EU issues with Italian interior minister

[05] ND leader attacks gov't over local entities' funding;

[06] Alternate FM criticizes ND strategy, says it insults public's intelligence

[07] PM to start his summer vacations on Friday

[08] Christodoulakis-Papandreou meeting on Tues.

[09] Vartholomeos sends letter to Church of Greece on Episcopal elections

[10] Hellas Sat 2 to begin commercial operation on Friday

[11] Govt's plan for economic alignment with EU to span 2004-2008

[12] Greece had 22,852 firms in 1998-2002

[13] Public works minister discusses refuse management with regional chiefs

[14] Piraeus Port Authority IPO oversold

[15] Gov't to float new stake in water board

[16] Alexandroupoli Airport slated for expansion

[17] Gov't takes 30 street market sellers to court for profiteering

[18] 'Hail' and 'farewell' movies for passengers on Athens airport shuttle buses

[19] Stocks nose down on fatigue

[20] More than 12,000 media personnel to arrive in Athens for Olympic Games

[21] Court rejects Xiros appeal to throw out his confessions

[22] Man's body found off Ikaria might belong to missing illegal immigrant

[23] Cyprus President signs Ratification Instrument of EU Accession Treaty

[24] French Minister discusses EU concerns with FM

[25] Spokesman says internal trade only within the law

[01] Premier outlines challenges and priorities of socialism today

Athens 29/07/03 (ANA)

''Our future and our aim is the response to the challenge for the regulation of globalization. Our political duty is to reduce to a great degree insecurity in our societies and to formulate mechanisms, processes and institutions for the regulation of globalization. Our vision is to materialize a realistic utopia,'' Simitis said.

''Our fundamental principles and ideals remain unchanged: democracy, equality, solidarity, and social justice, equality between the states of all the world, peace. Our anxiety and our sensitivities note the ideals that inspired the great revolutions and reformation movements that began in the 18th century,'' he underlined.

Simitis also listed the basic policy views of socialism today, underlining, ''we socialists always believe in the priority of the democratic institutions and processes in contrast to the demands of the market. We recognize the value of the economy of the market, of the private enterprise and creativity''.

''We do not believe, however, in the society of the market, the hegemony of the market. We refuse the absorption of all sectors and sides of our social life by the economy.

This is the reason why we accept unwaveringly the great political challenge of the era: the formulation of a new equilibrium between-en the economy, the society, the political system and culture''.

''We socialists believe that the society of citizens is based on self-actualization and initiative of the citizens. The citizens have social responsibility. They (socialists) recognize that rights are connected with obligations toward society, that freedom has a limit, which is where the freedom of others begins.''

''We socialists believe in the priority of social solidarity and we aim at social justice. The new forms of social exclusion - against not only the elderly, the people with special needs and the unemployed, but youth as well, those that are different, the immigrants or the refugees - find us opposed.''

Speaking of a new system of international governance, he out-lined the challenges socialists face in their effort to achieve it, saying that the first such challenge is the ''securing of a total system of international governance, which reflects the demo-critic values and the reality of the global village''.

''The second challenge, which emerges, is the deepening of the international justice system and the good function of the inter-national judicial institutions. The third challenge is the creation of institutions of some ecumenical rules of redistribution. The fourth challenge is the combatting of the cultural leveling and homogeneity.

''The fifth challenge is the formulation and establishment of international peace and the sixth and last, but not least of all, is the fulfillment of our obligation toward the next generations,'' Simitis underlined.

Following his address to the convention, Simitis met with youths from New Zealand, Israel, Colombia, Japan, Hungary and other countries.

Defense minister visits IUSY festival in Kamena Vourla :

Defense Minister Yiannos Papantoniou on Monday visited the International Union of Socialist Youths (IUSY) festival taking place in Kammena Vourla, South Central Greece and met with socialists from all over the world.

Speaking to journalists after his meetings, Papantoniou said that ''the interest of youths from Europe is impressive on issues of international politics, the global economy, as well as the inter-national defense and security.''

He outlined the points of the discussions he had saying that ''the first element we need is a more democratic system of international governance ... the second element that came up on discussions was also very important, it was the fact that we have to close the gap separating the rich from the poor around the world, we need a new international economic policy.''

''Finally, the issues of security. Of course there are international problems of security and defense. There is terrorism, there is in-stability. But these problems can not and should not be con-fronted only by military means,'' he concluded.

Socialist International's youth festival concludes with discussion on socialism :

The Socialist International's youth festival concluded its political events on Monday with a discussion on socialism. The festival was hosted at Kamena Vourla by the ruling socialist PASOK party's youth organization.

Former Spanish Prime Minister Felipe Gonzalez made a review of socialist parties' activities during the era of the establishment of ''fundamentalist neo-liberalism.''

''Politics always lie far behind the challenges of globalization. Today, more than ever, an alternative solution is necessary for unilateralism and pre-emptive wars,'' he said.

Referring to the crisis in Iraq, Gonzalez said it shows that it is very easy for one to win a war but very difficult to establish peace.

He added that the failure of neo-liberalism is a given fact because it is based on the increasing exclusion of more and more classes of society.

On the question of the European Union, he said it failed to live up to expectations, adding that the EU is continuing to discuss the distribution of power.

''The political commitment of the Left was never more feasible than today. The only thing that remains is work and determination. We lack the commitment, the will to change reality. And yet this will of ours to change reality will emerge from this Organization and not from the Right,'' he went on to say.

''It is necessary for us to invent the future and govern the present,'' Gonzalez added.

[02] Gov't wraps up first round of briefings on election law

Athens 29/07/03 (ANA)

Coming out of the meeting, Constantopoulos said he would submit his party's proposals also in writing, and stressed he remained steadfast on the establishment of simple proportional representation as the election system.

The interior minister on August 20 will forward the government's proposals to all political parties, and on September 1 will convene the Cross-party Committee so as to begin dialogue with all political forces.

Coalition to seek joint action for simple proportional representation :

The Coalition of the Left, Movements and Ecology on Monday said it would seek to join with other political forces within and outside Parliament to coordinate action in support of simple proportional representation as the election system.

The party's political secretariat on Monday decided to invite other parties that support simple proportional representation, such as the Democratic Social Movement (DHKKI) and the Communist Party of Greece (KKE), to begin dialogue.

An announcement by the political secretariat said that Coalition leader Nikos Constantopoulos will soon contact parties and movements of the Left, social bodies and prominent political and other figures in Greek society to set up a broadly-based commit-tee that will challenge the government proposals for electoral reform and present counter-arguments promoting simple proportional representation through events and initiatives on all levels.

[03] Parl't speaker seeks harsh penalties for MPs concealing assets

Athens 29/07/03 (ANA)

He also proposed financial incentives for those giving material assistance in initiating proceedings that would bring assets to the State as well as closed-door trials and a ban on all publicity regarding the return to the State of the fruits of all crimes committed at the expense of public wealth.

At present, 'statement of means' declarations are submitted by MPs, ministers and high-ranking officials in the civil service and state organizations.

Kaklamanis also expressed objections to aspects of the electoral law proposed by the government, including lists, ''two-speed'' MPs and the simple vote that ''will undermine internal party democracy and cohesion and the character of very party''.

[04] Public order minister discusses EU issues with Italian interior minister

Athens 29/07/03 (ANA)

The purpose of the meeting, attended by ministry officials from both countries, was the presentation of Italy's priorities during the EU presidency in the justice and interior affairs sectors.

Addressing Pisanï, Floridis referred to the need for the further development of cooperation between the two countries to materialize the conclusions reached during the European Council in Thessaloniki and Greece's substantive contribution to the effective promotion and completion of the Italian presidency's priorities during the second half of 2003.

Referring to the main points in the Italian presidency's work program, Pisanï focused on the issues of immigration, asylum, external border management and illegal immigration, as well as the combatting of terrorism and organized crime, primarily in the western Balkans.

In the framework of bilateral cooperation between Greece and Italy, the Italian minister underlined the importance attributed by Italy to the development of common operations in the sea region of the Mediterranean, mainly in the Adriatic and Ionian seas.

Floridis offered assurances that full support will be provided, while Greece will have active participation in the Italian presidency’s program, particularly in issues of mutual interest.

[05] ND leader attacks gov't over local entities' funding;

Athens 29/07/03 (ANA)

Moreover, Karamanlis launched into a sharp attack on Prime Minister Costas Simitis, in light of the premier’s high-profile interview published by a mass Athens daily over the weekend, saying, among others, that: “Mr. Simitis is announcing before the elections what he should have implemented eight years ago.”

In terms of local government, the ND president said the government is continuing to hand over responsibilities to such entities without, however, ensuring the necessary funds needed to carry out such duties. Regarding the latter, he promised that ND would better cooperate with local governments, especially in terms of funding.

On his part, the president of the association representing local governments in Attica prefecture (TEDKNA), Petros Filippou, said the government owes local entities around the country 700 to 800 million euros, before he also cited the issue of shifting responsibilities without turning over funding sources.

In a later reaction, government spokesman Christos Protopapas said Karamanlis should “keep a lower profile on such issues”, while noting ND’s opposition and charges concerning a ground-breaking local government restructuring plan several years ago, the “Capodistrias” plan.

[06] Alternate FM criticizes ND strategy, says it insults public's intelligence

Athens 29/07/03 (ANA)

Yiannitsis was speaking to reporters in the Cretan capital of Iraklion during an interview he gave at the city's town hall, following meetings with local authorities within the framework of a recent campaign initiated by the government in regions through-out Greece to identify local problems and promote the administration's work.

''ND ...has chosen to present everything that has been achieved by both the people and the government as non-existent, and says the only thing we deserve is misery, nullification and scorn'', the alternate minister said, adding ''This insults the intelligence of all Greek citizens''.

Yiannitsis said there were several months left until election time and the work that can be accomplished until then is very important.

[07] PM to start his summer vacations on Friday

Athens 29/07/03 (ANA)

On Monday night he will address a round table at the World Festival of the International Union of Socialist Youth (IUSY) at the resort town of Kammena Vourla in central Greece, a government spokesman said on Monday.

Spokesman Christos Protopapas said that the premier at 10.00 on Tuesday will meet with PASOK Secretary Michalis Chrysohoidis and later will visit the Operations Centre of the Fire Brigade in Athens, ahead of a noon meeting with Interior Minister Costas Skandalidis.

The prime minister on Tuesday evening will chair a PASOK Executive Bureau meeting.

Simitis on Wednesday morning will have a meeting with the Presidium of the Central Association of Cities and Communities of Greece (KEDKE) and later with the Union of Prefectural Governments, both of which will be attended by Skandalidis.

The prime minister on Thursday morning will chair a cabinet meeting over local government and later in the day he will address the PASOK Farmers' conference to discuss the revision of the European Union's Common Agricultural Policy (CAP).

[08] Christodoulakis-Papandreou meeting on Tues.

Athens 29/07/03 (ANA)

Afterwards, Papandreou is expected to meet with new PASOK party secretary Mihalis Chrysohoidis.

[09] Vartholomeos sends letter to Church of Greece on Episcopal elections

ISTANBUL 29/07/03 (ANA - A. Kourkoulas)

Vartholomeos requested that the due process for the election, set by the 1928 Synodical Volume of the Patriarchate be followed, which mandates that a list with candidates for the seat be sent to the Patriarchate for approval.

The episcopates of Northern Greece, that were annexed to Greece following the Balkan wars of 1912-13, fall under the provisions of the 1928 Synodical Volume of the Patriarchate and are mentioned in it as ''new regions'' of Greece.

The letter also stressed that according to the volume the Patriarch's name should be mentioned during services, first in the diptych of the region's churches.

According to sources in Athens officials of the Church of Greece are meeting to discuss the issue and respond to the Patriarch's letter. Also the sources said that a meeting between Foreign Minister George Papandreou and Christodoulos will take place on Tuesday.

[10] Hellas Sat 2 to begin commercial operation on Friday

Athens 29/07/03 (ANA)

The performance tests have been successfully completed, and as a matter of fact, the measurements recorded in tests for certain crucial technical parameters were significant superior compared with those in the technical specifications, which translates into a more powerful and of higher quality signal for users, the release said.

Hellas Sat 2, a 3,450kg spacecraft carrying 30 Kuband transponders and the most powerful of its kind in Europe, will be used to provide voice, Internet, video and broadcast services to European and Balkan markets, and to broadcast the Athens 2004 Summer Olympics.

It will cover Greece, Cyprus and 25 more countries in the Balkans, central Europe and the Middle East.

[11] Govt's plan for economic alignment with EU to span 2004-2008

Athens 29/07/03 (ANA)

Carrying a social angle, the plan will include measures to sup-port investment and growth in order to boost employment, Christodoulakis told reporters.

The plan aims to bring Greece closer to the average standard of living of its EU partners and align Greek regions with each other, while keeping within budgetary constraints.

It is due for a vote in parliament by the end of the year, the minister added.

[12] Greece had 22,852 firms in 1998-2002

Athens 29/07/03 (ANA)

In the first four years of the period under review, the number of newly created firms rose steadily, but the number of firms and total capital declined in 2002, the survey said.

In 2002, 4,655 new firms were created representing capital of 940 million euros against nearly 5,000 companies in 2001 with capital of 1.5 billion euros, according to the survey.

The decline largely reflects a drop in new firms with capital above 100 million euros, in existence in 2000 and 2001, it added.

[13] Public works minister discusses refuse management with regional chiefs

Athens 29/07/03 (ANA)

She said in a statement that a town planning package will be ready after the holidays.

''It will be an integrated package of measures which is also combined with the change in the issuing process for building licenses and the diversification of fines for illegal buildings in accordance with the charge and the offence. Legislative arrangements will be made for some of these issues,'' she added.

Referring to the meeting, Papandreou said ''I summoned the regional chiefs to enable us to coordinate more effectively all actions concerning the environment, street planning and town planning.''

Replying to a questioner, Papandreou said there are about 1,500 illegal landfills all over Greece, adding that this disgrace cannot continue which harms the environment and public health.

[14] Piraeus Port Authority IPO oversold

Athens 29/07/03 (ANA)

The stock's price for entry into the Athens Stock Exchange's main market is at the bottom end of the range at 8.80 euros, underwriters said.

The price is 8.36 euros for investors buying the company's privatization bond; and for company staff who bought stock in a private placement, 7.04 euros.

[15] Gov't to float new stake in water board

Athens 29/07/03 (ANA)

The minister told a news conference that he wanted to see EYDAP expand into construction and water investment and management at home and abroad.

Of total stock for sale, 10.3 percent currently belongs to the state and 10 percent to Athens-quoted Agricultural Bank of Greece, also state owned.

Handling the part-privatization are Salomon Brothers and Piraeus Bank.

[16] Alexandroupoli Airport slated for expansion

Athens 29/07/03 (ANA)

Design of the new facility is due for completion in October, when a construction tender will be called, with works due for completion by the end of 2005, Verelis told a news conference in the northern city.

The move is part of a plan to improve communications in the northeast that includes construction of an airport on the island of Samothraki, for which a final site has to be decided, he added.

[17] Gov't takes 30 street market sellers to court for profiteering

Athens 29/07/03 (ANA)

Also taken to court by Koulouris last week were a meat whole-saler for overpricing and a cheese manufacturer for misrepresentation of a product on its website.

The action is part of a government clampdown on profiteering after consumer groups complained of long-standing overpricing of products.

[18] 'Hail' and 'farewell' movies for passengers on Athens airport shuttle buses

Athens 29/07/03 (ANA)

Newcomers on the bus-route from the airport will watch a mo-vie projecting important Athens sites, mainly of tourist interest, the locations of the Olympic projects, as well as information about how to get around town using public transport.

Departing visitors on their way to the airport will watch ''fare-well'' footage that will also invite them to return for another visit.

[19] Stocks nose down on fatigue

Athens 29/07/03 (ANA)

The general share index shed 0.14 percent to end at 2,061.62 points. Turnover was 154.4 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 0.13 percent up; the FTSE/ASE-40 for medium capitalization paper 1.30 percent lower and the FTSE/ASE-80 for small cap equities finished with losses of 1.95 percent.

Of stocks traded, declines led advances at 237 to 91 with 40 issues remaining unchanged.

FOREIGN EXCHANGE

Closing rates of July 28 2003

Parities in euro

Banknotes

For. Exchange Buying Selling

US Dollar 1,158 1,131

[20] More than 12,000 media personnel to arrive in Athens for Olympic Games

Athens 29/07/03 (ANA)

The biggest television and radio networks have purchased the rights to transmit the Games exclusively, the Japan Corporation being the latest one.

Among internationally recognized names are the Canadian Broadcasting Corporation, Television New Zealand, Supersport and the Chinese Taipei Television Pool.

[21] Court rejects Xiros appeal to throw out his confessions

Athens 29/07/03 (ANA)

Xiros’ arrest following a botched bombing attempt in June 2002 kicked-off an unprecedented investigation that led to the arrest of the other suspects -- including two of his brothers -- and to what authorities believe is the lethal and previously elusive terror band’s eradication.

The court ruled that Savvas Xiros’ claims regarding the conditions of his incarceration during his lengthy hospital stay as well as conditions under which he was initially questioned are unfounded. Xiros has repeatedly claimed in court that he was illegally given “mind-altering” drugs in the days following his botched bomb attempt at the port of Piraeus. Moreover, he claims that judicial magistrates and top anti-terrorism officials exercised “emotional pressure” and “duress” in order to gain his confessions.

The three-justice court, however, stressed that Xiros is constantly “exhibiting contradictory behavior … something that is being duly considered by the court and which is weakening his (Xiros’) arguments”.

Finally, the court – which is convening in a specially built hall at the Korydallos penitentiary in the greater Athens area – gave particular credence, as it noted, to Xiros’ official statement before special appellate magistrate Leonidas Zervobeakos (August 2002), where the former failed to rescind any of his earlier confessions but, instead, also offered more evidence against himself and several of his co-defendants. Xiros, in fact, retained the same attorney then and now, the court also said.

The decision resulted in Xiros' refusal to appear before the court in order to provide a closing statement. He also referred to "pre-determined" decisions by the court.

Conversely, the prosecutor in the case, Christos Lambrou, called on Savvas Xiros to maintain his cooperation of last summer, saying, among others, "you have your life in front of you. When they (certain co-defendants) turn their back on you; they have already started to turn their back; stand where you are. Only that will help you. Don't become the tragic individual of history."

Xiros, faced with multiple murder charges, among others, replied that he doesn't care if he lives the rest of his life in prison, before leaving the courtroom.

[22] Man's body found off Ikaria might belong to missing illegal immigrant

Athens 29/07/03 (ANA)

The authorities had been searching for a man who along with four more illegals had reached the nearby island of Samos on a rubber-boat that had capsized off Cape Prasso a few days ago.

It is expected that the man's remains will be dispatched to Athens on Tuesday for an autopsy to identify the cause of death.

[23] Cyprus President signs Ratification Instrument of EU Accession Treaty

NICOSIA 29/07/03 (CNA/ANA)

Speaking at the signing ceremony in the presence of French Minister Delegate for European Affairs Noelle Lenoir, the Council of Ministers, the House President, political leaders and the ambassadors of the EU member states, the president noted that this ''highest political deed'' takes Cyprus to the last phase of EU accession which will be completed next May.

Referring to the island's political problem he reiterated the G/C side's commitment to continue working along with the UN Secretary General, on the basis of his plan to achieve a lasting and viable solution to the Cyprus problem.

''A solution that will ensure the rights of our Turkish Cypriot compatriots and allow them enjoy the advantages deriving from EU accession, within the framework of a reunited Cyprus'', the president said.

Noting that "small Cyprus will make its own contribution", he reaffirmed the Republic's commitment to undertake and fulfill all the obligations that its accession to the European Union entails, adding that Cyprus is aware of the benefits of the enlargement and considers all the problems and uncertainties as a challenge.

During his speech the president also noted the contribution of all previous Cyprus governments, the House and political parties towards the European goal.

He extended special thanks to all the Greek governments and especially Prime Minister Costas Simitis and Greek Foreign Affairs Minister George Papandreou, the EU member-states, the Commission and the European Parliament for the invaluable help and support they offered Cyprus during its accession course.

[24] French Minister discusses EU concerns with FM

NICOSIA 29/07/03 (CNA/ANA)

She noted with pleasure the identity of views between Cyprus and France on many European issues, welcomed the ratification of the Accession Treaty by Cyprus and said she pressed on with the need to observe EU maritime safety. She announced that Cyprus and France will sign in the near future a cooperation agreement to combat illegal immigration.

On the question of Cyprus, she appeared optimistic saying there are positive signs which must not be underestimated, but also acknowledged the difficulties in the effort to find a negotiated settlement because Turkish Cypriot leader Rauf Dentkash does not accept an UN proposal as a basis for negotiation.

In her opening remarks at a joint press conference with Iakovou, she said Cyprus' accession to the EU would allow for even closer

bilateral ties, noted that Paris and Nicosia share views but also pointed to the need for increased bilateral cooperation in every field.

Lenoir said Cyprus is a ''bridge'' between the EU and the Middle East and has expertise and a geographical location that can be of use to the Union. She praised the quick integration of the acquis communautaire into the local legislation and welcomed the high standard of living on the island.

She said maritime safety and illegal immigration were two issues she discussed with the Cypriot minister at length.

''We rely on the Cyprus government to enforce maritime safety, there is an urgent need to get rid of ships that do not conform to safety regulations,'' she said, and referred to the transfer of 75 per cent of the world's oil production by sea.

Replying to questions, she said the ban on Cyprus-flagged ships to dock at Turkish ports was not part of her discussions. On the same topic, Minister Iakovou said Turkey, by applying such policy, is in violation of international conventions as well as its customs union agreement with the EU.

On illegal immigration, Lenoir said Cyprus and France will very soon sign an agreement to combat this problem but also noted that the island's division renders efforts to tackle it more difficult.

Referring to the political situation, she said there must be a ''global, just and viable agreement and the Turkish side has to assume its responsibilities and support the UN effort.''

She talked about a ''window of opportunity'' and the need to support the UN Secretary General Kofi Annan in his effort to find a negotiated settlement.

Replying to questions, she said she is optimistic because ''the populations on both sides are in favor of a solution, the opening of the Green Line shows there is fraternization and this gives the UN plan a new aspect.''

She recognized that there are difficulties as Denktash does not like to see the UN plan as a basis for negotiations, even though it is discussed.

Noting that there is a necessity to get a very strong will from the parties, she said ''now the EU is very willing to help and the Turkish government knows well now that although it (solution) is not a precondition for opening of accession negotiations, every-body knows that the question of the reunification of Cyprus is currently dealt with by EU members and it will be dealt with.''

She said recent events and EU enlargement as well as logic suggest that there must be one day or another a solution in Cyprus.

''We think there are some hints that there is a change in the mind of the main actors, that is why the French government is hopeful, we are not pessimistic, we think it will be very difficult but there are positive changes that must not be underestimated,'' she said.

Asked about the EU role with regard to the illegal Turkish settlers in Cyprus' Turkish occupied areas, she said ''there will be discussions at the EU level on the issue'' while Iakovou said he raised this matter with Lenoir because the presence of settlers counters the will of the Turkish Cypriots. Lenoir leaves Tuesday afternoon.

[25] Spokesman says internal trade only within the law

NICOSIA 29/07/03 (CNA/ANA)

The spokesman noted that the government's clear position is that ''the laws and regulations of the Republic of Cyprus must be observed''.

Chrysostomides also said Turkish Cypriot politician Mehmet Ali Talat was wrong to compare President Tassos Papadopoulos to Turkish Cypriot leader Rauf Denktash, because the former accepted the Annan plan as a basis for negotiations to solve the Cyprus problem while the latter declared it ''dead''.

The spokesman was commenting on an interview Talat gave to Greek Cypriot daily newspaper ''Politis'' and noted that the Turkish Cypriot politician was expressing conflicting positions, probably due to the forthcoming so-called ''parliamentary elections'' in the Turkish-occupied areas of the Republic.

Chrysostomides said it was of no importance if Talat recognized or not the President of the Republic, because ''the international community recognizes the Republic of Cyprus and the legitimate government, headed by the President''.

''The Republic of Cyprus, based on judicial body decisions, has the sovereignty of its whole territory, which is however hindered by the Turkish occupation'', he noted.

The spokesman described as ''unjustified and unfounded'' the comparison Talat made between President Papadopoulos and Denktash, noting that the president has repeatedly said he was ready to begin negotiations on the substance of the Cyprus problem within the context of a solution plan presented to the two sides by UN Secretary General Kofi Annan. ''On the contrary, Denktash considers the Annan plan dead and buried'', Chrysostomides said, adding that Talat should have noted this difference.

Referring to Talat's allegation that the Greek Cypriot politicians were ''racists'' regarding the settlers from Turkey in the areas under Turkish occupation, Chrysostomides said the issue of settlers

''is considered a provocation and violation of every humanitarian law principle'', adding that there were more serious examples of the violation of human rights in Cyprus, such as the refugees, which ''in fact is a clear method of ethnic cleansing''.

Asked about the internal trade on the island between the two sides, the spokesman said the government's clear position is that ''the laws and regulations of the Republic of Cyprus must be observed''.

He added that there were some problems regarding the Turkish Cypriot side's demands and noted that ''we are ready to proceed to a great extent to help the Turkish Cypriots without being exposed before the EU''.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third.

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