Later in the day, Mr. Papandreou will meet with special coordinator for the State Department on the Cyprus issue, Thomas Weston.

This is due to the many months of delay until the cases get to court. According to arrest records, the officer arrests for perjury increased by 118% in 2001, and were mainly regarding offenses such as violation of duty, false certification and bribery.

These phenomena are usually observed at immigration services and passport checkpoints.

The discussion was to take place at tomorrow's standard weekly meeting of the Commission. However, the meeting will take place next week, as EU Commissioner of Transports, Loyola de Palacio, decided that the meeting should be postponed, so that her servi ces could be informed about the terms and circumstances under which a 17.6 million euro bank loan was issued to Olympic Airways, by the Commercial Bank of Greece.

On February 22, the Commercial Bank issued the loan, taking the airliner's demands from the public sector as collateral (i.e. ministry debts for services rendered).

The Commission will be called to decide if the loan in question can be considered state aid, and if Olympic Airways has received subsidies in the past years, in violation of communal legislature.

As deputy Minister of the Press Tilemachos Xytiris stressed after the meeting, in his introduction Mr. Simitis pointed out that now that the Salt Lake City Winter Olympics are over, the only upcoming world sports event is the 2004 Olympiad, and that is w here everyone's eyes will fall.

Mr. Simitis pointed out that with his visits to the Olympic Village and the construction site of Egnatia Odos, he had a chance to see the progress of specific works.

"Athens, and all of Greece, is changing. By 2004 there will be a new image. Apart from sports areas, a new environment is being created, better and more functional. The Olympics will be held successfully. All bodies are responding with a sense of respons ibility. We will be ready before the deadline", he pointed out.

In order to deal with the lack in rooms for the expected visitors, a supplementary agreement was made with the Attica area hotel owners, which increases their participation from 80% to 90%, with the renting of cruise ships and an agreement with hotel fra nchises in Anavysso and Lagonisi.

Specifically, on the participation plan for insurance companies in the handling of the reserve funds, Mr. Christodoulakis stated that the issue will be resolved in the under vote bill. He characterized the reform under discussion as completely compatible

with European models. Meanwhile the President of the General Confederation of Greek Workers (GSEE) disagrees with this reform, and he stressed that the Confederation will not accept such interventions, while he supported that the government is under pres sure because 35 insurance companies are on the brink of bankruptcy.

Apart from the drugs, police found a loaded AK-47 Assault Rifle, two clips of bullets and a marble stele with various relief carvings on it, in the driver's booth.

The meeting's schedule includes introductions to the presentation of the ITERREG III Program and the MEDA Program, both of which concern inter-border cooperation. Also to be analyzed are the utilization prospects of International Franchising by Greek Bul garian and Turkish entrepreneurs and the presentation of the web site of the Professionals-Tradesmen Association of New Orestiada and the District.

In the meeting were discussed issues concerning bilateral relations, the dialogue process in Cyprus and energy issues. Mr. Karamanlis reiterated the ND firm position on the further improvement of bilateral cooperation in all sectors. Mr. Karamanlis and M r. Botsarnikov also examined new proposals on Russia's cooperation with NATO and the issue of the common European policy of defense and security.

Mr. Karamanlis underlined that New Democracy regards as very significant Russia's international role especially, in the region of southeastern Europe.

The name of the soon-to-be-established institution reflects the intention of its founding members to gradually attract other foreign investors as well. According to the association President, the Skopje based consul could develop into a chamber.

The consul's goal is to solve quickly the problems faced by the participating companies in their investment campaigns in the FYROM market.

The mayor of Thessaloniki stressed that there is great potential of cooperation at the local administration level within the framework of the consolidation of peace in the Balkans. He also issued an appeal to the business world to become more active in t he area of cooperation.

The president of the Serb Republic stated that the delegation visits Thessaloniki after its visit to the Monastic Community of Mount Athos. He also said that there is great room for cooperation between the two sides and referred to the key-location of t he Port of Thessaloniki. In addition he pointed out that a lot can be done on the occasion of Greece's EU presidency in the first half of 2003.

The Prime Minister when asked to comment on the political diversion references he has made, stated that he wanted to send the message to the Greek society that the government and the party of PASOK are vigilant and guarantee the country's democratic cour se.

Presenting the government's four goals in the period before 2004, Mr. Simitis referred to the true economic and social convergence in the new reality created by the Euro. He also referred to the settlement of the Greek national issues concerning Cyprus, Cyprus' accession into the EU and the relations with Turkey, the successful 2004 Olympic Games and the promotion of Greece's position in Europe.

Of the stocks trading today, 282 recorded losses and 52 had gains, while the value of 23 stocks remained unchanged.

Athens.

Mr. Papandreou and Mr. Omirou examined the developments in Cyprus since the opening of the direct talks between Cypriot President Glafkos Clerides and Turkish Cypriot leader Rauf Denktash as well as Cyprus' EU accession course.

Mr. Papandreou stated that there are no tangible results from the first round of the Clerides-Denktash talks and pointed out that there is a need to take advantage of the historic chance for the solution of the Cyprus problem.

Mr. Omirou stated that the Greek Cypriot side will enter the new round of talks with the same political will for the solution of the Cyprus problem but in case no solution is found it will not be an obstacle for Cyprus' accession into the European Union.

On the reinforcement on behalf of Ankara of the armaments of the Turkish occupation forces in Cyprus, Mr. Papandreou stressed that those moves are being watched by the European Union, while Mr. Omirou stated that such moves undermine the whole climate.

Mr. Mesic accepted an invitation issued by Greek President Kostis Stephanopoulos to visit Greece and stressed that his country wants Greece to participate in its privatization programs.

Mr. Vidouris expressed Greece's interest in Croatia's privatization programs, adding that Greece watches Croatia's European prospect with a strong interest and wishes to help the country in its course toward the European Union.

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