NEWS IN DETAIL

The meeting was held at the request of Lilic who stopped over in Athens on his return from a visit to African nations.

Diplomatic sources said Lilic conveyed to Simitis an official invitation to visit Belgrade.

The Summit is due to discuss the possibility of a more in-depth cooperation between members or a possible enlargement of the organisation. It will also explore the possibility of turning the BSEC, which was founded in 1992, into an international organisation.

Greece believes that the BSEC countries should strive towards a more substantial economic cooperation before taking steps in the direction of accepting new members. Greece has proposed the establishment of a special committee to consider the effects of a possible enlargement prior to reaching a final decision.

The summit is also expected to issue a declaration reaffirming the members' will to further existing cooperation especially in the economic sector.

The Greek delegation to the Summit is also expected to raise the issue of the Thessaloniki-based Black Sea Trade and Development Bank, the operation of which is delayed due to the inability of the organisation's smaller states to submit their contribution to the bank's share capital, and the refusal of the national parliaments of Bulgaria, The Ukraine and Georgia to ratify the founding agreement. The Bank is expected to play a leading role in the economic development of the Black Sea Economic Cooperation countries, as it will be the main source of funding of joint ventures in the regions.

The Greek delegation is also due to raise the issue of the International Black Sea Research Centre which will be established in Athens.

The Black Sea Economic Cooperation Summit will be held with the participation of prime ministers or presidents from Russia, Greece, Turkey, Bulgaria, Romania, The Ukraine, Georgia, Moldavia, Armenia, Albania and Azerbaijan.

Government spokesman Dimitris Reppas said yesterday's inner cabinet meeting dealt at length with Greece's presence in the Balkans and that Foreign Minister Theodoros Pangalos outlined plans for bilateral and multilateral regional cooperation as well as initiatives Greece could undertake in the economic sector and to assist in the modernisation of neighbouring countries' institutions.

Mr. Pangalos, who recently returned from a three-day tour of countries of former Yugoslavia, briefed the inner cabinet on the results of his visits, saying that Croatia, the Federal Republic of Yugoslavia and Bosnia wanted closer relations with Greece and an eventual inclusion in the European Union.

The meeting discussed the government's priorities based on the axes defined by Prime Minister Costas Simitis in the government's policy statement in Parliament last week.

The first of these axes, Mr. Reppas added, include the government's policy for a strong Greece that will contribute to regional stability and peace and deal with any provocations, particularly from Turkey.

The remaining axes, the government spokesman said, included a policy for the country's equal participation in the European Union in view of the conclusion of the Intergovernmental Conference, institutional modernisation, social policies, and policies for the quality of life.

Economic policy, armaments

Mr. Simitis met with Defence Minister Akis Tsohatzopoulos earlier yesterday to discuss the ministry's planned armaments programme and funding priorities for the defence ministry. The meeting was attended by Mr. Papantoniou, Defence Undersecretary Dimitris Apostolakis and Chief of the General Staff Athanasios Tzoganis.

Mr. Reppas said that another two meetings on the same issue would be held before it went before the Government Council for Defence (KYSEA) for a final decision.

Later in the day, Mr. Stephanopoulos delivered an address to the Polish Parliament focusing mainly on Greece's foreign and economic policies.

Lending strong support to the goals of the Maastricht treaty, the Greek president said implementation of these goals within the set time limits "forces us to opt for an economic policy of austerity measures."

During the day, Mr. Stephanopoulos had meetings with Foreign Minister Dariusz Rosati and the presidents of the Polish Parliament and Senate.

Dismissing the possibility for a revision of the Lausanne Treaty, attempted by Turkey, Mr. Stephanopoulos said Greece did not accept dialogue "on Turkey's unfounded claims" regarding issues related to Greek territorial sovereignty.

Under the Turkish threat, Mr. Stephanopoulos stressed, "our country is forced to prepare itself for the possibility of a military attack."

Regarding relations between Greece and the Former Yugoslav Republic of Macedonia (FYROM, Mr. Stephanopoulos reiterated Greece's strong opposition to the use of the term 'Macedonia', expressing hope that the name issue will be solved.

Referring to Greece's relations with the European Union, Mr. Stephanopoulos said that "the European Union did not play an appropriate role in the former Yugoslavia and the Middle East," the president added, "because it lacked a common defence and foreign policy."

Strongly condemning the formation of a two-tier Europe which will discriminate against the weaker European states, Mr. Stephanopoulos expressed disagreement at the proposed abolition of consensus on issues of national interest.

President to lay wreath at Auschwitz

Meanwhile, the Greek business delegation accompanying the president, headed by Association of Greek Industries (SEB) president Iason Stratos, yesterday held talks of an exploratory character concerning possible Greek investments.

Mr. Lavidas, currently visiting Istanbul at the head of a Greek businessmen delegation for meetings with Turkish businessmen also referred to the "strong presence" of Greek businessmen in southeastern Europe.

Turkish industrialist Rahmi Kots, who is also president of the "Greek- Turkish Business Council," said that businessmen in both countries could play an important role in eliminating tension in Greek-Turkish relations.

"Development of Greek-Turkish relations will be to the benefit of both countries," said Mr. Kots.

"I believe," he added, "that diplomats in both countries will be able to find ways to deal with the problems without prejudice."

"The Istanbul meetings indicated that there could be cooperation in certain sectors," said businessman Simeon Tsomokos, citing the sectors of tourism and foodstuffs, and joint ventures in third countries between construction companies.

Members of the Turkish Industries Association said that Turkish businessmen were faced in their country with an environment of political instability and difficulties emerging from the effects of political developments in business activities, as well as a generalised anxiety on the future course of the country.

He also claimed that the increase was necessary for OTE`s modernisation, the improvement of services, and the boosting of competitiveness.

The new rates include an increase for city calls from 10.2 to 11.5 drachmas per 3 minutes, and a 1.78 per cent reduction for long-distance calls.

Rates for calls to the rest of Europe are to go up by 7 per cent, while those to the US, Canada, and Australia are to come down by 18 per cent.

Finally, subscription rates for the Hellascom digital circuit network will rise by 10 per cent, and those for Hellaspac will come down by about 15 per cent.

Mr. Lambrou said the extra revenue the increases are estimated to yield is in the region of 22.5 billion drachmas.

"The government will keep its promise to protect the environment," Mr. Reppas said.

A government delegation on Monday concluded an agreement that the gold processing plant be created as far as possible from the administrative limits of the Olympiada and Varvara villages, after local residents staged a 10-month blockade of the road lead ing to the entrance to the Kassandra mines, saying they feared the effects on local tourism and the environment. TVX Gold Hellas last week threatened to pull out of the 65 billion drachma investment by yesterday if the protests did not end.

Senior executives of 12 listed companies on the ASE took part in the event, outlining the present-day profile of the Greek economy and prospects for development.

Messrs. Xanthakis, Thomadakis and Thomopoulos visited the editorial offices of the "Forbes" and "Institutional Investors" magazines and met with representatives of international brokerage firms Salomon Brothers and Merrill Lynch.

Merrill Lynch representatives said that the ASE initiative to brief investors about Greek activity was "necessary" and that it was particularly important now that the political climate in Greece has stabilised.

The Greek delegation was due to leave for Boston yesterday for another presentation, following a meeting with representatives of "Fortune" magazine.

WEATHER

SPORTS

"I am glad because we are in a climate of full confidence with IAAF delegates. We will succeed in having an impeccable organisation of the games, which will be the springboard for Greece contesting the 2004 Olympiad," he said.

FOREIGN EXCHANGE (Buying)

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