Athens News Agency: News in English (AM), 98-03-27
NEWS IN ENGLISH
Athens, Greece, 27/03/1998 (ANA)
MAIN HEADLINES
- Torrential rains cause power blackouts, cripple transport
- Greece: US proposal on Cyprus' demilitarisation not substantial
- US State Department rejects Greek proposal on Cyprus
- Polish president to visit Athens
- Russia invited to submit S-300 system for assessment
- KYSEA to focus on nationwide air defence system
- False impressions being created by Ankara
- US congress approves amendment abolishing visas for Greeks
- OTE dividents at 110 dr. per share
- Petrol prices rise
- Greek stocks again hit new record, turnover stays high
- New York to host conference on business opportunities in Greece
- Capital AXE cooperation with two French banks
- Weather
- Foreign exchange
NEWS IN DETAIL
Torrential rains cause power blackouts, cripple transport
Public services throughout the country were working non-stop at presstime
to alleviate the effects of yesterday's torrential rains, as extensive
flooding caused power black-outs in several areas as well as endless
traffic jams and even flight cancellations.
The inclement weather is expected to initially continue today, with more
rain and snow even in the lowlands. Rainfall will begin abating in the
afternoon.
Local authorities yesterday ordered schools closed, while the fire
department received calls from people trapped in flooded areas, particularly
in the western Athens suburb of Ano Liosia, which was flooded since early
on Wednesday night.
One man was killed while trying to moor his boat on the island of Rhodes,
while a lighthouse was swept away by gale force winds on the Ionian island
of Zakynthos.
The weather caused serious damage to two high-voltage pylons at the foot of
Mount Parnitha, west of the capital, and to other parts of the national
grid elsewhere in Greece, causing lengthy black-outs.
In the Peloponnese, several villages were cut-off in the prefectures of
Achaia, Ilia and Arcadia.
Some 5,000 trees are estimated to have been uprooted by gale-force winds
which whipped through Glyfada, a third of the total in the area. Meanwhile,
in Nea Liosia waters covered about 4,000 acres, creating pools of water and
mud. Twenty homes and 45 stores suffered extensive damage from flooding and
75 cars were damaged by falling trees and flood waters.
Further north, a total of 122 villages were cut off by snow - three in
Ioannina, 16 in Grevena, 57 in Trikala, nine in Argolida and 37 in
Fthiotida.
The weather in southern Greece transformed Thessaloniki's Macedonia airport
into the main entry point for international flights destined for Athens.
More than 20 passenger airplanes, including a 747 from New York, were
parked on the airport's runways, with some 2,000 passengers staying at the
city's hotels, waiting for connections to their final destination of
Athens.
Domestic flights were diverted to Kavala to allow Thessaloniki's airport to
receive more international flights.
Some of the passengers later left for Athens and other destinations by
coach.
Development Minister Vasso Papandreou said after an urgent Cabinet meeting
that the damage to the power network would take many days to repair, while
she appealed to citizens to save electricity. Certain areas would possibly
continue to be affected by black-outs for some days.
Greece: US proposal on Cyprus' demilitarisation not substantial
Greece does not consider a US proposal for a moratorium on military flights
over Cyprus to be a substantial step towards the demilitarisation of the
island republic, government spokesman Dimitris Reppas said yesterday.
By contrast, Mr. Reppas added, both Greece and Cyprus believe the
deployment of Russian-made S-300 anti-aircraft missiles on the island is a
substantial step towards demilitarisation.
Nicosia plans to purchase and install the anti-aircraft missiles to bolster
the island's defenses. Apart from vehement criticism from Turkey, the plan
has also been condemned by Washington and several European countries, which
cited fears of an increase in the regional tension.
The spokesman reiterated a Greek and Cypriot position that the missiles
would not be installed only if steps were taken towards the full demilitarisation
of Cyprus.
US State Department rejects Greek proposal on Cyprus
The US State Department yesterday rejected a recent proposal by Foreign
Minister Theodoros Pangalos, according to which Cyprus would agree to
cancel the S-300 anti-aircraft missiles' deployment if NATO guaranteed a no-
fly zone and that Turkish warplanes be prohibited from flying in Cyprus'
airspace.
The US also called on Turkey to stop threats of military actions against
the missiles' installation.
"The US would welcome the establishment of a permanent moratorium of all
combat aircraft overflights of Cyprus by Greece and Turkey as a serious
effort to reduce tensions and build confidence. We do not agree, however,
that a no-fly enforcement regime that could potentially pit one NATO ally
against another is the best way to accomplish this objective," said State
Department spokesman James Rubin.
"Although we do not doubt Cyprus' right to adopt decisions regarding its
defence, we believe that the agreement for the S-300s increases the danger
of a conflagration on the island and constitutes a serious obstacle to our
efforts to achieve a settlement of the dispute on Cyprus. We also urge
Turkey to handle the issue of the S-300s through diplomatic means and avoid
threats of a military strike against the missiles," he added.
Mr. Pangalos presented his proposal in meetings with US Secretary of State
Madeleine Albright on March 20 and US Assistant Secretary of State Thomas
Pickering on March 23.
In Nicosia Cyprus Foreign Minister Ioannis Kasoulides said yesterday that
no satisfactory developments have been made so as to remove the need for
Cyprus' anti-aircraft defences.
Mr. Kasoulides noted that the issue of a permanent flight ban over the
island republic is considered closed, after Washington's refusal to
guarantee the security of Cyprus.
Polish president to visit Athens
Poland's President Alexander Kwasnievski is to pay an official visit to
Greece from April 6 to 8, following an invitation from his Greek counterpart
Kostis Stephanopoulos.
The Polish president is returning an official visit made by Mr. Stephanopoulos
to Warsaw and Auschwitz in October 1996.
Russia invited to submit S-300 system for assessment
Russia has been invited to participate with its S-300 missile system in
relevant tendering by the Greek defence ministry, with an assurance that
its weapons system will be judged on an equal basis as the US-made Patriot
anti-aircraft missiles.
This was stated by Gen. Leonid Ivasov, the head of the Russian defence
ministry's international cooperation department, who expressed certainty
that the Russian-made missiles will prevail over the US system, if their
assessment is made on equal terms.
Commenting on the work of the Greek-Russian committee's third session on
military and technical cooperation, held in Athens from March 16-20, Gen.
Ivasov also expressed optimism over the possibility of the anti-aircraft
missile system "Osa" being purchased by Greece. He further stressed the
coincidence or proximity of views between the two sides concerning problems
of European security, the Balkans and other regions in crisis, such as
Kosovo.
KYSEA to focus on nationwide air defence system
National Defence Minister Akis Tsohatzopoulos announced yesterday after a
meeting with Prime Minister Costas Simitis that the main policy points
concerning the country's air defence would be approved by the Government
Council for Foreign Affairs and Defence (KYSEA).
He said that the air defence system will cover the entire country and, for
the first time, will involve all three service braches.
At subsequent KYSEA meetings, Mr. Tsohatzopoulos added, decisions will be
taken on the weapons systems which will form the links of the system, as
well as the new fighter aircraft to be purchased by Greece.
The entire process will have been completed by the end of June, he
said.
On Monday, KYSEA will also discuss a draft law paving the way for the
formation of a civil defence force and the setting up of an "armaments
fund" which will allow Greeks at home and abroad "to express their interest
in the country's defence," Mr. Tsohatzopoulos said.
False impressions being created by Ankara
Greek diplomatic sources were describing as "irresponsible" and "dangerous"
efforts by Ankara to create false impressions regarding the aims and
methods of Athens' policy in the Balkans.
Sources pointed to a "Turkish Daily News" report on Wednesday, alleging a
Greek intention to establish a "security zone" on the border with the
Former Yugoslav Republic of Macedonia (FYROM) if the crisis in Kosovo
spills southwards.
"The report is so far from the truth that we feel obliged to treat it as
deliberate misinformation and undermining of Greek policy," a top Greek
diplomat said, warning that this tactic was in full contradiction to
efforts for the creation of relations of confidence in the Balkans.
Referring to Turkish sources, the paper said that Greek officials were
examining whether the security zone would be on Greek or on FYROM
soil.
US Congress approves amendment abolishing visas for Greeks
The US House of Representatives approved an amendment on Wednesday
providing for the abolition of visa requirements for Greek citizens wishing
to visit the United States for longer than 90 days.
The amendment was passed by a vote of 360 in favour to 46 against.
The amendment, tabled by Democrats Patrick Kennedy and Barney Frank, and
Republicans Mike Papas and Richard Pombo, raised the ceiling for the
rejection of visa applications, used as a qualification for abolition of
the requirement, from 2 to 3 per cent.
Up to now, Greece and Portugal, with rejection rates of 2.7 and 2.81 per
cent, were the only EU countries whose citizens still required visas to
enter the US.
The US Senate has already approved a similar amendment. The procedure
requires approval of the two amendments in a joint session of Congress,
that will then adopt the final form of the amendment to be sent to US
President Bill Clinton for signing.
"In light of our victory today in the US House of Representatives, the
people of Greece will soon no longer need a visa to visit the United States,
" said Andrew A. Athens, the national chairman of the United Hellenic
American Congress (UHAC). He added that "today's vote will end this
mistreatment of one of the United States' best allies."
OTE dividends at 110 dr. per share
According to the balance sheet ratified by the Hellenic Telecommunication
Organisation's (OTE) board yesterday, the utility's turnover amounted to
811 billion drachmas in 1997, while profits reached 301 billion drachmas.
As of April 24, OTE will distribute dividends of 110 drachmas per share to
shareholders.
Petrol prices rise
The development ministry and Public Petroleum Corp. (DEP) yesterday
announced increases in fuel prices.
The price of regular gasoline increased by 2.5 drachmas per litre, unleaded
by 2.6 drachmas per litre, heating oil by 1.6 drachmas and diesel by 1.5
drachmas.
Greek stocks again hit new record, turnover stays high
Greek equities yesterday hit a new record on the Athens Stock Exchange and
the general index flirted with new resistance at 2,000 points.
The index ended 3.64 percent higher at 1,992.81 points while turnover
remained high at 86.9 billion drachmas.
Traders said the market was euphoric, boosted by a massive influx of
foreign capital following the drachma's entry into the European Union's
exchange rate mechanism on March 14.
Banks were 3.72 percent up, Insurance rose 0.21 percent, Investment ended
1.07 percent higher, Leasing jumped 3.28 percent, Industrials rose 4.65
percent, Construction fell 0.69 percent, Miscellaneous ended 1.08 percent
up and Holding rose 1.46 percent.
The parallel market index for small cap companies eased 0.47 percent.
Broadly, advancers led decliners by 141 to 95 with another 18 issues
unchanged.
Epiphania, European Credit, Maillis and Klonatex scored the biggest
percentage gains at the day's 8.0 percent limit up, while Sato, Demetriadis,
Sportsam and Hellenic Cables suffered the heaviest losses.
Hellenic Telecommunications Organisation's share price rose 300 drachmas to
end at 8,100 in heavy volume of 1,595,000 shares.
In the domestic money market, bankers reported renewed capital inflows. The
Bank of Greece intervened by draining liquidity, pushing interbank rates up
to 15 percent.
New York to host conference on business opportunities in Greece
A conference to brief American investors on business opportunities provided
by Greece will be held at The Pierre Hotel in New York on April 6. The
event is even more important considering it is the first international
conference taking place after the drachma joined the Exchange Rate
Mechanism.
Speakers at the conference will include Federation of Greek Industries
(SEB) President Iason Stratos, the managing director of the Hellenic
Telecommunications Organisation (OTE) George Chrysolouris and the President
of the Athens Stock Exchange Manolis Xanthakis.
National Economy Undersecretary Alexandros Baltas will be a speaker at the
official dinner, while on the part of the US addresses will be made by
former US Ambassador to Greece Thomas Niles and the present commercial
adviser at the US Embassy in Greece Patrick Santilo.
The event is titled "Greece: The strategic European partner in southeastern
Europe" and is organised by Nikolas Bornozis' Capital Link company and by
Symeon Tsomokos.
Capital AXE cooperation with two French banks
The Greek brokerage firm "Capital AXE", the French bank Groupe Banques
Populaires and the French bank Bred, which specialises in stock exchange
activities, will sign a cooperation agreement in Athens today.
Cooperation will primarily concern investments by French institutional
investors in the Greek capital market, as well as underwriting for their
entry to the Athens Stock Exchange.
The brokerage company Capital AXE has been fully reorganised recently,
increasing its share capital to one billion drachmas and also opening
offices in Thessaloniki and Trikala. The two French banks are expected to
widen their cooperation with the Greek company soon by participating in its
share capital.
WEATHER
Rain and strong winds will continue throughout the country today, with an
improvement expected from the afternoon. Winds northerly, northeasterly,
strong to gale force. Rainstorms in Athens and snow in the mountainous
regions of the capital with temperatures between 4-9C. Sleet and snow in
Thessaloniki with temperatures from 1-5C.
FOREIGN EXCHANGE
Thursday's closing rates (buying): U.S. dollar 316.706
British pound 529.093 Japanese Yen(100) 244.776
French franc 51.584 German mark 172.955
Italian lira (100) 17.551 Irish Punt 434.496
Belgian franc 8.384 Finnish mark 57.020
Dutch guilder 153.457 Danish kr. 45.372
Austrian sch. 24.612 Spanish peseta 2.039
Swedish kr. 39.859 Norwegian kr. 41.823
Swiss franc 211.534 Port. Escudo 1.690
AUS dollar 212.888 Can. dollar 223.775
Cyprus pound 592.502
(C.E.)
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