Athens News Agency: News in English (AM), 98-03-24

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

NEWS IN ENGLISH

Athens, Greece, 24/03/1998 (ANA)

MAIN HEADLINES

• Pangalos calls on US to pressure Turkey to go to The Hague
• Kranidiotis-Cordovez discuss Cyprus issue in Athens
• Stephanopoulos invited to Riga by Latvian president
• Simitis speaks to visiting journalists of Greek descent
• Titmayer lauds Greek progress towards meeting Maastricht criteria
• EOT head meets with tourism sector operators
• Greek shares hit new high, hold 1,900 pts
• Greek money markets see capital inflows, rates hold steady
• SE Europe economy forum to be held in Thessaloniki next week
• Greece, Moldova sign trade cooperation pact
• Greek, US tax authorities extend cooperation pact
• Songwriter Akis Panou sentenced to life
• Premier calls for intensifying anti-crime measures
• Weather
• Foreign exchange

NEWS IN DETAIL

Foreign Minister Theodoros Pangalos yesterday impressed upon US officials the need for pressure to be exercised on Ankara so it will consent to referral of any differences in the Aegean to an international adjudicating body, such as the International Court at The Hague.

"I explained to them that Greek-Turkish relations have come to be stagnant because Turkey does not accept the framework within which serious progress may be made. This is a legal, institutional framework, with application of international law and with referral to international adjudicating bodies," he said after a meeting lasting 90 minutes at the Greek embassy.

"If this is not accepted by Turkey, there will be no progress because the other prospects which Turkey wishes to create, with its supposed initiatives and letters, are prospects based on the balance of power, which will not solve problems but, on the contrary, will accentuate them," he added.

"I made it clear to them that it would be a mistake for one to think that Greek-Turkish problems are the main or the only problem to Turkey's European prospects. That Greece has a serious interest in Turkey's approach to Europe as near and as fast as possible, but that there are preconditions that must be fulfilled, posed jointly by the members of the EU, and which Turkey must accept as all other candidate-countries have done," he said. Regarding the Cyprus issue, the Greek minister said it was an issue between Cypriots and Ankara, as Turkish Cypriot leader Rauf Denktash did not have the power to decide, and pressure should be brought on Ankara for the Turkish Cypriots to come to the negotiating table.

The meeting was attended by US Undersecretary of State Thomas Pickering, US Assistant Secretary of State Marc Grossman, the US State Department's coordinator for Cyprus, Thomas Miller, and Myriam Shapiro of the National Security Council.

Mr. Pangalos said the US officials had asked for details on the position presented to US Secretary of State Madeleine Albright regarding what would be required to suspend a plan to install Russian-made S-300 missiles on Cyprus.

He said he had made clear that he was not merely asking for a moratorium of flights over Cyprus, which could be overturned at any time, but an agreement committing Turkey, guaranteed by the UN, the US or NATO, and safeguarding the defence of Cyprus.

Summing up, Mr. Pangalos said he had found understanding on the part of US officials on the basic points of Greek-Turkish differences and the Cyprus problem.

US State Department spokesman James Foley said that in Friday's meeting between Ms Albright and Mr. Pangalos, she had told her counterpart that "the US is resolved to help in the search for solutions in Greek-Turkish differences and the Cyprus problem".

He added the Secretary of State planned to visit Greece in the summer and hoped to contribute in the context of such efforts.

Kranidiotis-Cordovez discuss Cyprus issue in Athenes

Foreign Undersecretary Yiannos Kranidiotis yesterday told visiting UN special adviser on Cyprus Diego Cordovez that in the event that the Turkish side's negative stance continued, regarding a settlement of the Cyprus problem, the issue should be brought up before the UN Security Council.

Following their one-hour long meeting, Mr. Kranidiotis reiterated Athens support of the UN Secretary General's initiative and that of Mr. Cordovez's mission aimed at the resumption of the intercommunal dialogue for a just and viable settlement of the Cyprus problem. Mr. Kranidiotis said "we are at a crucial turning point due to the Turkish side's intransigence and the terms which it sets in order for it to proceed to the negotiating table."

He said these terms could not be accepted and that it was the obligation of the Turkish side to attend the dialogue without terms and preconditions, as imposed by the United Nations through its resolutions, and by the international community.

"If the Turkish side's negative stand continues, the issue should be brought before the UN Security Council which in turn must undertake its responsibilities, so that the effort for dialogue may be strengthened," he said.

He said such dialogue could operate in parallel to the accession negotiations which start on March 31. Mr. Cordovez briefed Mr. Kranidiotis on the intensive consultations which he had in Cyprus with President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash.

Expressing the hope that negotiations would proceed for a settlement of the problem, Mr. Cordovez noted that "where there is a difficult situation dangers are created, but opportunities are also presented."

Mr. Cordovez said that UN Secretary General Kofi Annan was deeply concerned over the situation in Cyprus.

Stephanopoulos invited to Riga by Latvian president

Latvian Foreign Undersecretary Maris Riekstins conveyed an invitation to Alternate Foreign Minister George Papandreou by the Latvian president for his Greek counterpart to visit Riga.

The invitation was delivered during their meeting at the foreign ministry yesterday.

Both Mr. Papandreou and Mr. Riekstins expressed the hope that with President Kostis Stephanopoulos' visit to Latvia six agreements currently being negotiated between the two countries will be signed. The agreements concern bilateral cooperation in sectors of military training, technology and sciences, a shipping cooperation agreement, economic, technological and cultural, avoidance of double taxation and an airline communications agreement.

The two men also discussed issues concerning European Union enlargement, while Mr. Papandreou also raised the issue of inter-regional cooperation and more specifically cooperation between Baltic and Balkan countries as candidate countries for accession.

Latvia appreciates Greece's position by which negotiations must

Simitis speaks to visiting journalists of Greek descent

Greece's primary goal remains inclusion into Economic and Monetary Union (EMU), Prime Minister Costas Simitis stressed yesterday while adressing a visiting group of expatriate Greek journalists.

Yesterday's meeting in Athens between the premier and the group was also attended by Press and Media Minister Dimitris Reppas and ministry general secretary Yiannis Nikolaou.

Mr. Simitis said the message he wanted them to get across was the Greek government's efforts to achieve a stable economic foundation, as well as a cohesive society and an important role in developments.

Greece's distance from achieving convergence with the economies of other European Union member-countries was closing dramatically, he said, and Greece was within a hair's breadth of the first group of countries in Economic and Monetary Union.

The reception that the drachma's inclusion in the Exchange Rate Mechanism received was an indication of the "qualitative difference" in perception of the Greek economy compared to the past.

"Interest rates are falling, Greek bonds have greater value, there is an increase on the stock exchange, and there is still confidence in international and Greek markets about the course of the economy," he said.

According to the prime minister, Greece's second goal was a higher profile in the Balkans, an area in which it has already noted progress. A third priority was the economy's adjustment to international conditions and to the globalisation of the economy .

Alternate Foreign Minister George Papandreou also spoke to the group.

Titmayer lauds Greek progress towards meeting Maastricht criteria

In an interview with state-run network, Bundesbank President Hans Titmayer expressed the view that Greece has undoubtedly made substantive progress in achieving criteria set by the Maastricht Treaty.

Mr. Titmayer expressed optimism that this progress will continue and said that Greece has oriented its policy in the right direction now, adding that the country's accession to Economic and Monetary Union (EMU) will be judged in two years from now. He further said that the central banks of European Union member-states will support the drachma if its parity nears exceeding the anticipated limits of plus or minus 15 per cent. Mr. Titmayer reiterated that a necessary precondition for the accession of a cou ntry to EMU is the exchange stability of a currency in the exchange rate mechanism, as well as the achievement of the known convergence criteria. He considers the public debt criterion as being the most difficult.

EOT head meets with tourism sector operators

Greek National Tourism Organisation (EOT) general secretary Nikos Skoulas yesterday met with representatives of the tourism sector for talks on prospects for the tourist season, after the recent devaluation of the drachma.

During the meeting it was noted that Greek tour packages must remain competitive in foreign markets, meaning that hotel and room rates must not increase after the devaluation.

Hoteliers said some increases will be necessary since the operation cost increased due to the devaluation. They also cited the increase in import costs and accumulated debts in foreign currencies.

Hoteliers expect an increase of 10 to 12 per cent in 1999.

Greek shares hit new high, hold 1,900 pts

Greek equities started the week on a positive tone yesterday extending their rally for the sixth consecutive session on the Athens Stock Exchange.

Traders said a recovery in the domestic bond market and stable conditions in Greek money markets encouraged buying activity in stocks.

The general index ended 1.61 percent higher, hitting a new record of 1, 950.75 points.

Analysts predicted that the market would test 2,000 points soon.

Trading was heavy with turnover at 75.7 billion drachmas.

Most sector indices scored gains. Banks jumped 3.56 percent reflecting limit-up closes for Commercial Bank of Greece, Ionian Bank, Mortgage Bank, Bank of Central Greece and ETEBA.

Insurance rose 2.11 percent, Investment was 3.82 percent up, Leasing shot up 5.27 percent, Construction was 6.65 percent up and Holding rose 2.29 percent. Industrials and Miscellaneous fell 0.30 and 0.16 percent respectively.

The parallel market index for small cap companies rose 2.44 percent while the FTSE/ASE index ended 2.08 percent higher to post a new record close of 1,149.34 points.

Broadly, advancers led decliners by 167 to 74 with another 17 issues unchanged. Rilken, Halcor, Petzetakis, Alte, Babyland, Technodomi, Epilektos and Desmos scored the biggest percentage gains at the day's 8.0 percent limit up.

Benroubi, Konstantinidis, Ideal and Kekrops suffered the heaviest losses.

National Bank of Greece ended at 34,940 drachmas, Ergobank at 20,550, Alpha Credit Bank at 23,740, Delta Dairy at 3,600, Titan Cement at 21,000, Intracom at 17,880 and Hellenic Telecommunications Organisation at 8, 100.

Greek money markets see capital inflows, rates hold steady

Greek money markets yesterday saw new capital inflows and steady interbank rates, reflecting foreign and domestic confidence in the country's economy.

Bankers reported inflows totalling 120 million Ecus and 30 million DMarks at the drachma's fixing.

The Greek currency rose 0.78 percent against the US dollar. It was 0.52 percent up against the DMark and 0.50 percent higher against the Ecu.

SE Europe economy forum to be held in Thessaloniki next week

A two-day forum on business and development in the Balkans will be held in Thessaloniki next week for the fifth straight year.

This year's event - "Thessaloniki Forum: Greece and the Balkans: An Emerging Market in Southeastern Europe" - is expected to attract ministers, bankers, stockbrokers and industrialists from around the region.

The forum is organised by the Northern Greek Industries Association (SBBE), state Macedonia-Thrace Bank, and the Hellenic-American Chamber of Commerce.

Former SBBE president Nikos Efthymiadis told a news conference yesterday that the annual forum was a part of efforts to link the region, including past meetings of Balkan foreign ministers in Thessaloniki and Balkan leaders in Crete.

It also aimed to debate the problems that hindered economic cooperation in southeastern Europe.

According to Efthymiadis, the difficulties stem from frequent changes in legislation on land ownership and privatisation that often are ill implemented; frequent changes in tax laws; and a lack of clarity in investment incentives.

Among topics to be debated at the forum are banking cooperation, the creation of a Thessaloniki-based southeast European central equities market, and cooperation in transport, construction, telecommunications, industry, energy, commerce, shipping and to urism.

Also for discussion is foreign policy and cooperation, the role of the US and Russia in development for the region, and the importance for Greece and southeastern Europe of the 2004 Olympic Games to be hosted by Athens.

Efthymiadis acknowledged that Greek business activity in the Balkans in this decade has been hampered by organisational and communication problems.

The forum will be launched on Monday by Macedonia-Thrace Minister Philippos Petsalnikos and followed by a round-up of Balkan cooperation in 1997.

Leader of the conservative New Democracy party Kostas Karamanlis will address a dinner the same evening, and National Economy and Finance Minister Yiannos Papantoniou is to deliver a closing address on Tuesday evening.

Countries expected to be officially represented at the forum include Bulgaria, Moldava, Ukraine and the Former Yugoslav Republic of Macedonia. Also scheduled to speak is US Ambassador in Athens Nicholas Burns.

Greece, Moldova sign trade cooperation pact

Greek and Moldovan officials yesterday signed a cooperation agreement aimed at improving economic, trade and technological ties between the two countries.

The agreement was signed by Greek National Economy Undersecretary Alekos Baltas and his Moldovan counterpart, Dumitru Bragis.

It calls for swifter procedures to promote cooperation in industry, trade, services and modern technology.

The pact also envisages the mutual promotion and protection of investments, measures to avoid double taxation, and the introduction of TACIS programmes in Moldova.

The two sides also discussed a credit facility totalling 10 million US dollars to Moldova that has yet to be accomplished due to problems in Moldova's banking system.

Moldova and Greece are members of the Black Sea Cooperation Agreement and the Black Sea Bank.

According to government figures, 33 Greek businesses are active in Moldova in trade, industry, tourism, transport, insurance, banking services and information technology.

Greek, US tax authorities extend cooperation pact

Greek and US tax authorities extended by one year a technical cooperation agreement first signed in 1996. Finance Undersecretary George Drys said yesterday that extension of the pact with IRS, the US tax authority, would help in the government's drive to combat tax evasion, cut costs and improve services for taxpayers.

Songwriter Akis Panou sentenced to life

A Kavala court yesterday convicted a popular Greek songwriter Akis Panou on a murder count, sentencing him to life in prison.

He was also convicted of illegal arms possession.

Five members of the seven-member court also did not find any extenuating circumstances for Panou, who admitted to killing his daugther's married boyfriend last summer, claiming it was a crime of "honour" and committed in the heat of the moment.

He has the right to apeal the verdict.

Premier calls for intensifying anti-crime measures

Prime Minister Costas Simitis yesterday recommended to Greek Police's (EL.AS) leadership that strict implementation of anti-crime measures begin.

The premier's recommendation came during a meeting with the public order ministry's leadership and senior police officials.

Measures include increased control ID check-points, especially in areas were there is a rise in criminal activity. Another measure discussed was the creation of a border police.

According to government spokesman Dimitris Reppas, increased patrols over the past week had already borne results.

Mr. Reppas said that the issue is also likely to be raised at a meeting of the Government Council for Foreign Affairs and Defence (KYSEA) on Friday - called to discuss security and the armed forces procurements programme.

Meanwhile, responding to a question regarding the attribution of crimes to foreign nationals and fears of racist phenomena, Mr. Reppas said:

"The presence of numerous foreigners has created an imbalance, but we must all act in a responsible manner. It is a matter of personal responsibility."

Labour Undersecretary Christos Protopapas stated after the meeting that all the undocumented workers without a "green card" as well as those who did not obtain one by the end of May will be deported.

He stressed that Greece will not become a place of "other" activities by groups of illegal immigrants.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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