Athens News Agency: News in English (AM), 97-06-12

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

NEWS IN ENGLISH

Athens, Greece, 12/06/1997 (ANA)

MAIN HEADLINES

• Premier opens parliamentary debate on Constitution's revision
• Tsohatzopoulos holds talks with Belgian counterpart
• Greece hopes Holbrooke's mission would prove effective
• No early elections, gov't says
• US gov't offers reward for information on terrorism
• Poll results favouring ND were 'expected', gov't says
• Two European Social Fund decisions related to Greece
• Stolen manuscript to return to Mount Athos
• OTE launches public offering of 45 million shares
• Greek stocks end sharply up on state telecom buying spree
• Finance ministry to take action on Dr.1.67 trillion tax debt
• Two bids approved for Cretabank sale
• Weather
• Foreign exchange

NEWS IN DETAIL

Prime Minister Costas Simitis yesterday stated his support for the proposal to disengage the election of president of the republic from the possibility of dissolving Parliament, as envisaged in current Constitutional provisions.

Opening Parliament's debate on the revision of the Constitution, the prime minister said that "recourse to elections is not justified in the present context of the president`s responsibilities", and that "political life has conquered the level of maturity which allows an appropriate innovation".

According to current provisions on the election of a president, the 300- member Parliament is dissolved if a candidate fails to secure a two-thirds majority in the first two rounds and a three-thirds majority in the third round. A three-fifths majority is again required by the new Parliament, and if not attained, the president is elected by an absolute majority.

He stressed the need for transparency in the functioning of the political system, which would be greatly promoted by the establishement of a permanent electoral system.

Tsohatzopoulos holds talks with Belgian counterpart

Greece and Belgium intend to undertake a joint initiative with proposals for the development of the armaments industry in Europe, National Defence Minister Akis Tsohatzopoulos said after talks in Brussels yesterday with his Belgian counterpart Jean Pol Poncelet.

"We found a potential for cooperation in a series of sectors concerning equipment for the army and air force," the Greek minister said, adding that delegations of the two countries` armed forces general staffs would continue discussions in coming weeks.

He noted that discussion yesterday touched on the high cost of procuring weapons systems, which leads many NATO countries to consider joint production schemes.

Mr. Tsohatzopoulos also reported that he asked to be briefed on problems faced by Belgium in its decision to abolish compulsory military service and switch to a professional military system.

He clarified that Greece has no intention of proceeding to a similar system, but wishes to increase the number of professional cadres due to heightened demographic problems.

Greece hopes Holbrooke's mission would prove effective

Government spokesman Dimitris Reppas expressed hope yesterday that the mission of Richard Holbrooke, newly appointed US special envoy for Cyprus, would prove effective.

He went on to say that Mr. Holbrooke should make use of Greek positions on Cyprus.

Mr. Reppas was speaking during a press briefing yesterday. Asked to comment on information alleging that Mr. Holbrooke backs Turkey on the issue of a Turkey-Iran natural gas pipeline, Mr. Reppas said that there where occasions when the US envoy acted on the interests of Greece.

``Some of Mr. Holbrooke`s positions serve Greek interests``, he said.

No early elections, gov`t says

There will be no early elections, government spokesman Dimitris Reppas asserted yesterday, adding that the government was absolute on this issue.

During his daily press briefing, Mr. Reppas also referred to the revision of the Constitution in terms of the election for president of the republic.

He said that any discussion concerning the election of the president came at the wrong time and said the issue should not be linked with early general elections.

Asked whether ruling PASOK would nominate Mr. Stephanopoulos for a second term, the spokesman said the government did not want to open discussion on the issue, and that the current president was carrying out his duties in the best manner.

US gov't offers reward for information on terrorism

The US government is offering up to $2 million for information "leading to the arrest and conviction of persons or groups who have committed terrorist acts against American individuals or property".

In a statement released yesterday, the US embassy said the US government was "renewing its appeals to the Greek people" for information on terrorist acts.

The appeal was part of its efforts to work in close cooperation with Greece, and belonged to the counter-terrorism rewards programme, the press release stated.

The announcement said that in the past 22 years, terrorist actions in Greece had resulted in the deaths of four Americans, Richard Welch, George Tsantes, William Nordeen and Ronald Stewart, injuries to 28 other Americans and a rocket attack on the embas sy compound in February 1996.

The rewards programme was established in 1984 as a deterrent to global terrorism and is administered by the Diplomatic Security Service of the US State Department.

For more information, call the embassy at 72.02.490 or 72.94.301.

Poll results favouring ND were 'expected', gov't notes

Poll results by the firm MRB on voting tendencies that give main opposition New Democracy the lead over ruling PASOK by 4.6 per cent were expected, government spokesman Dimitris Reppas said yesterday.

According to the biannual poll, if elections were held today, 31 per cent of those questioned said they would vote for ND and 26.4 per cent for PASOK. December 1996 results showed 28.3 per cent for ND and 26.6 per cent for PASOK, respectively.

Mr. Reppas explained that the government and prime minister are exposed to problems and do not have the luxury of a political presence that involves just words and costs nothing.

PASOK's ratings, however, as a government show a clear increase with 25.1 per cent having a good or very good opinion of its image, as opposed to December's 19.5 per cent ratings. ND's image has also improved, with 21 per cent saying it was good or very good, as opposed to last year's ratings of 9.5 per cent.

In terms of party leaders, the most popular politician was Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos (52 per cent).

He is followed by Costas Karamanlis of ND (44.8 per cent), Dimitris Tsovolas of the Democratic Social Movement at 42 per cent, PASOK Prime Minister Costas Simitis (41.4 per cent), Political Spring leader Antonis Samaras (21.5 per cent).

Communist Party of Greece Secretary General Aleka Papariga posted a 19.7 per cent rating.

Two European Social Fund decisions related to Greece

The European Social Fund announced two decisions on Tuesday which are particularly important for Greece. Specifically, the European Social Fund will retroactively fund programmes which have been implemented, amounting to 50 billion drachmas, and from which an inflow of funds totalling 33 billion drachmas corresponds to Greece.

In addition, programmes amounting to 65 billion drachmas were ratified for 1997, from which the corresponding inflow of funds into the country amounts to 40 billion drachmas.

The European Commission has ultimately accepted a proposal by the labour ministry on the retroactive ratification and funding of activities implemented in 1996, such as the promotion of employment, continuing vocational training, the training of workers in the first-stage sector and training for unemployed merchant seamen.

Stolen manuscript to return to Mount Athos

A rare 18th century manuscript that was stolen from the all-male monastic community of Mount Athos and recently located in Bulgaria will be returned, Bulgarian President Petar Stoyanov promised yesterday.

Mr. Stoyanov pledged the return of the 1762 manuscript "Slavo-Bulgarian History", written by Paissios Hiliendarios to the Agios Georgios Zographos Monastery on Mount Athos.

The manuscript was stolen from the monastery in the 1980s and has been displayed at the National Historial Museum of Sofia since September 1996.

OTE launches public offering of 45 million shares

Hellenic Telecommunications Organisation (OTE) on Wednesday launched a public offer for 10.7 percent of its equity in the state firm's second part- flotation. The package of 45 million shares, negotiable on the Athens Stock Exchange (ASE) is on offer and the strike price will be announced on Monday.

National Bank of Greece on Tuesday announced a price range of 6,200-6,900 drachmas per share for institutional investors and 6,000-6,700 for individual buyers.

A first round of eight percent of its equity was floated at the end of March last year, increasing the telecom's share capital by 130 billion drachmas.

Sold were 32 million common shares (4 million to OTE employees and pensioners, 8 million to institutional investors, 8 million to foreign investors and the remainder to the general public) at 4,000 dr. each.

The share price included a dividend of 125 dr. per share from OTE's 1995 profits.

OTE signed an agreement on Tuesday with the Serbian government under which it acquired a 20% holding in the Balkan state's PTT telecom for 675 million deutschemarks. Another 29% stake was bought by Italy's STET for DM893 million.

The acquisition will aid OTE's penetration of the Balkans and Black Sea region.

OTE anticipates substantial returns from its Serbian investment, including a dividend from the third year of the investment, remuneration for the provision of technical assistance (0.5% of PTT revenues in the first year and 1% per year for 7 years),and financial gains from the provision of future services.

Under the contract, OTE and Telecom Italia also acquire two seats each on PTT's 9-member board with a veto right.

Greek stocks end sharply up on state telecom buying spree

A surge of buying interest in shares of Hellenic Telecommunications Organisation (OTE) led the Athens Stock Exchange sharply higher as the market seemingly regained confidence after last week's dramatic fall.

The general index closed 2.16 percent higher at 1,638.56 points, with most sector indices scoring gains. Banks gained 1.92 percent, Leasing surged 2.88 percent, Insurance dropped 0.24 percent, Investment was 1.93 percent up, Industrials increased 1.62 p ercent, Construction rose 0.85 percent, Holding jumped 2.91 percent and Miscellaneous rose 1.72 percent.

The Parallel Market index ended 1.50 percent higher. Turnover was stronger at 23 billion drachmas. Broadly, advancers led decliners by 158 to 64 with another 19 unchanged.

Oerlikon, Alco and Kardasilaris were top gainers while Allatini, Parnassos and Atemke suffered the heaviest losses of the day.

OTE remained the highlight of the session for one more day with its share price rising 4.9 percent, or 345 drachmas, to end at 7,450.

Volume was a massive 500,000 shares worth more than 3.5 billion drachmas.

According to market sources investors were buying OTE's shares through the market fearing that oversubscription to the company's public offering would restrict access to OTE's forthcoming share capital increase, due on June 18- July 18.

Finance ministry to take action on Dr 1.67 trillion tax debt

The Greek finance ministry has prepared a list of more than 1000 major tax debtors from three key cities in the country who owe a total of 1.655 trillion drachmas, and pending is an equivalent list for the rest of the country.

The list already prepared cites debts of 1.4 trillion drachmas from Athens, 220.6 billion from Piraeus and 34.5 billion from Thessaloniki, Finance Undersecretary George Drys said.

The ministry has said it is ready to confiscate property, freeze bank accounts and send debtors to prison in order to secure payment.

Mr. Drys noted, however, that the ministry had yet to decide whether or not it would publicly announce the names on the list.

Two bids approved for Cretabank sale

An evaluation committee for the privatisation of Cretabank has approved bids by Consolidated Eurofinance Holdings S.A, a subsidiary of the Latsis Group, and Bank of Piraeus to take part in the second and final stage of the tender. The committee rejected bids by two Chinese companies - Nanjing Star Company Ltd and An Ran Industrial Group Ltd - on the grounds that their bids lacked fundamental data set as conditions for evaluation, Cretabank said in a statement. According to the committee, the procedure fo r the sale of Cretabank, formerly known as Bank of Crete, is expected to be completed by the end of August.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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