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Athens News Agency: Daily News Bulletin in English, 97-07-10

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

From: The Greek Press & Information Office, Ottawa Canada <grnewsca@sympatico.ca>

ATHENS NEWS AGENCY BULLETIN (No 1233), July 10, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca


CONTENTS

  • [01] Gov't says communiqui 'positive', mixed reactions by opposition
  • [02] Mixed reactions from opposition
  • [03] Mitsotakis
  • [04] Turkish foreign ministry says it went prepared for meeting
  • [05] UN-sponsored direct peace talks on Cyprus open
  • [06] Cyprus government welcomes Greco-Turkish agreement
  • [07] Sources claim EU pleased with communiqui
  • [08] Greek diplomatic sources comment on Greek-Turkish communiqui
  • [09] US on communiqui
  • [10] Simitis emphasizes new role, challenges for NATO
  • [11] Simitis on direct Cyprus talks
  • [12] Simitis-Gligorov meeting in Madrid
  • [13] Israelis, Palestinians meet in Vouliagmeni
  • [14] Stephanopoulos hosts dinner for von Weizsaecker
  • [15] Prince Charles to visit Athens next year
  • [16] Prize for Development Minister
  • [17] Fires near ancient Olympia abating
  • [18] Tzoumakas says air force to blame for Seikh Sou forest fire
  • [19] EU to grant ECU 13 million for fire protection programs
  • [20] IOC delegates continue tour of Greece
  • [21] 'Social dialogue' sets up first committee
  • [22] Labor Under-secretary visits Britain
  • [23] Greek think-tank calls for tighter economic policies
  • [24] Greek bourse has healthy outlook despite inflation rise
  • [25] Blue-chip buying pushes the Athens bourse higher
  • [26] EU in court action against Greece on property sale

  • [01] Gov't says communiqui 'positive', mixed reactions by opposition

    Athens, 10/07/1997 (ANA)

    The government yesterday said that the Greek-Turkish joint communiqui issued in Madrid on Tuesday was a particularly positive development in bilateral relations, while opposition parties expressed mixed reactions to the text.

    Acting government spokesman Nikos Athanasakis described the communiqui as "a particularly positive development" which could "open up a new era in Greek-Turkish relations."

    The communiqui was issued after talks between Prime Minister Costas Simitis and Turkish President Suleyman Demirel on the sidelines of the NATO summit on Tuesday in Madrid.

    Mr. Simitis described it as a document of principles which will govern relations between Greece and Turkey.

    The communiqui, reaffirming their commitment to promote bilateral relations, calls for respect for peace and security, continuous development of relations, respect for each country's sovereignty and for the principles of international law and international treaties, respect for each other's interests and concerns in the Aegean and commitment to avoid unilateral actions and to resolve disputes by peaceful means. The communiqui, Mr. Athanasakis added, contained issues which Greece had continually raised "and which are now stipulated and jointly signed by Turkey at the highest level."

    Mr. Athanasakis stressed that there had been no discussion of specific issues pertaining to Greek-Turkish relations, noting that Greece's position on these issues remained unchanged.

    "This also includes Greece's position on the financial protocols (providing for EU support to Turkey) within the framework of Ankara's customs union with the Community," Mr. Athanasakis said.

    Replying to reporters' questions, the spokesman said an extension of Greek territorial waters to 12 nautical miles was Athens' inalienable right emanating from the International Law of the Sea.

    He stressed also that Greece's position on the issue of the Imia islets remained unchanged.

    Greece and Turkey nearly went to war in late January 1996 after Ankara openly challenged Greek sovereignty of the uninhabited rocky islets.

    As far as Greece is concerned, Mr. Athanasakis continued, the only specific issue referred to in the communiqui is the refraining from using force, "'something which concerns Turkey."

    He underlined also that the Madrid communiqui did not open any dialogue regarding the various separate issues comprising Greek-Turkish relations.

    Mr. Athanasakis said Mr. Simitis had briefed President Kostis Stephanopoulos on the communiqui by telephone and would further inform him, if necessary, after returning from Spain.

    Mr. Simitis will also brief the Cabinet, which is scheduled to meet tomorrow, as well as any political party leader so requesting, the spokesman said.

    Replying to other questions, Mr. Athanasakis said Nicosia had welcomed the Simitis-Demirel communiqui, expressing the hope that it might have a positive effect on UN-sponsored direct talks between Cyprus President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, which began yesterday in the United States.

    The spokesman reiterated that the settlement of the Cyprus problem was the "key" for Greek-Turkish relations.

    Alternate Foreign Minister George Papandreou said the joint communiqui was the result of persistent efforts over the past several months.

    In comments to a private television channel, Mr. Papandreou said that two of the three conditions set by Greece, namely the non-use of force and the recognition of international treaties, had been incorporated in the text of the communiqui.

    The third condition, concerning the mechanisms for resolving problems, was currently the subject of examination by a "committee of experts" from the two countries.

    Greece and Turkey recently each set up a committee of experts to examine procedural approaches to resolving differences between Athens and Ankara.

    Mr. Papandreou said the joint communiqui contributed to creating a different climate in relations between Greece and Turkey "without this meaning that specific problems have been resolved, such as that of the (Aegean) continental shelf or the Cyprus problem, which poison relations between the two countries."

    On his part, National Defense Minister Akis Tsohatzopoulos expressed satisfaction because Turkey states that it respects Greece's sovereign rights, international law and treaties and pledges not to use force or threaten to use force.

    In statements yesterday, the defense minister noted that there was nothing concerning the Aegean to be solved except the issue of defining the continental shelf, the jurisdiction for which lay with the International Court at The Hague.

    He added that the expansion of Greek territorial waters to 12 nautical miles from the present six was an inalienable right enjoyed by Athens, which Greece would exercise whenever it deemed necessary.

    The statement also noted that the smoothing of bilateral Greek-Turkish relations would depend on progress on the Cyprus issue.

    [02] Mixed reactions from opposition

    Athens, 10/07/1997 (ANA)

    Main opposition New Democracy party leader Costas Karamanlis said the communiqui contained "certain self-evident principles toward the right direction" but also contained passages that "justifia-bly give rise to questions and concerns".

    Mr. Karamanlis explained that certain passages were "open to misunderstanding" and did not necessarily deter Turkey from continually escalating its claims.

    The main opposition leader called for an immediate clarification of what is meant by "vital interests and concerns in the Aegean" when referring to Turkey, and the phrase "commitment to refrain from unilateral acts". Both are contained in the joint communiqui.

    Mr. Karamanlis pointed out that "any agreement with Turkey must guarantee the exclusion of Turkish territorial claims and the right to extend Greek territorial waters to 12 nautical miles (from the present six)."

    The necessary and desirable smoothing of Greek-Turkish relations "can only be established on the basis of justice and equality without one-sided concessions," he said.

    [03] Mitsotakis

    Athens, 10/07/1997 (ANA)

    ND honorary president and former premier Constantine Mitsotakis said the communiqui issued between Greece and Turkey was in the "right direction".

    Mr. Mitsotakis, who made his statement in Thessaloniki yesterday, said the Cyprus issue should not have been absent both from the discussions and the joint communiqui.

    Replying to a press question, Mr. Mitsotakis said the relevant agreement was a development to be expected, adding that with it, we have turned back to where we had reached after the meeting in Davos, Switzerland, in 1992.

    "It was a base from which Greece should never have distanced itself and, unfortunately, we paid dearly for the fact we distanced ourselves," he said.

    "Great care is necessary when we refer to the indisputable and, of course, existing vital interests of the two sides in the Aegean, because this can give cause for well-intentioned misunderstandings," he added.

    Mr. Mitsotakis said the Cyprus issue should not have been absent from the discussion and the joint communiqui, "because the Cyprus issue is at the base of our differences with Turkey. This has been taught to us by bitter and long experience and we cannot go to full normalization in relations between the two countries unless the Cyprus issue proceeds to a solution as well. And more specifically, at this time when the Cyprus issue is being handled and is entering a decisive phase."

    The Communist Party of Greece (KKE) expressed concern about the joint communiqui, claiming that it was not aimed at resolving differences between Athens and Ankara but at extending US influence in the Aegean.

    Although the text contains declarations about respect for international treaties and international law, the KKE said, there are also points which Ankara can interpret as it pleases.

    In particular, the KKE cited the reference to each country's "vital interests and concerns in the Aegean."

    "These ambiguous elements may pave the way for a dialogue on confidence-building measures which, within the framework of the known US plan, also serves the expansionist designs of the Turkish government," KKE stated.

    KKE underlined, however, that it was in favor of dialogue with Turkey, "provided there is a declaration affirming respect for the borders and sovereignty of each country."

    The Coalition of the Left and Progress (Synaspismos) called for the immediate convening of a meeting of political party leaders in order to be briefed in detail on the course of Greek-Turkish relations. A statement issued by the party's political secretariat said the joint communiqui could serve as a step towards the normalization of Greek-Turkish relations, adding that "the relevant declarations will be judged in practice."

    Synaspismos urged the government to make use of the Madrid development "in a way which contributes to paving the way for a substantial dialogue, while protecting the country's interests."

    At the same time, Synaspismos criticized the government, charging it with "an absence of strategy, the usual double-talk and the assigning of these issues in their entirety to the initiatives of third parties."

    Democratic Social Movement (DHKKI) leader Dimitris Tsovolas described what he called "the US-inspired and guided" joint communiqui as "overturning the substance of the existing legal status in the Aegean" and "a prelude to the partitioning and joint sovereignty" of the sea.

    Mr. Tsovolas said he would today request an extraordinary session of the Parliament plenary in order to discuss the latest developments. The DHKKI leader claimed the communiqui contained specific commitments which were contrary to the treaties of Lausanne, Paris and Montreux as well as the International Law of the Sea.

    Political Spring leader Antonis Samaras, meanwhile, termed the communiqui "painful" for Greece and "painless" for Turkey.

    Mr. Samaras charged that the reference in the communiqui to "refraining from unilateral acts" in effect canceled out Greece's legal right to extend its territorial waters to 12 nautical miles and at the same time consolidated "the unacceptable new status quo of so-called 'gray zones', which the government of Costas Simitis has accepted for Imia, resulting in (Turkey's) disputing of the sovereignty of hundreds of rocky islets in the Aegean."

    [04] Turkish foreign ministry says it went prepared for meeting

    Istanbul, 10/07/1997 (ANA)

    Ankara went to the NATO summit prepared for a possible bilateral meeting with Greece, a Turkish foreign ministry official said yesterday.

    "Turkey's expectation is that the agreement will be adhered to," foreign ministry deputy spokesman Sermet Atacanli said.

    The communiqui falls in line with Turkey's expectations, he said, expressing a wish that it would commence a new and positive phase in Greek-Turkish relations.

    [05] UN-sponsored direct peace talks on Cyprus open

    Troutbeck, 10/07/1997 (ANA-M. Georgiadou/CNA)

    UN Secretary General Kofi Annan stressed here yesterday that he aims to not report another failure regarding efforts for a Cyprus settlement.

    His comments inaugurated five days of UN-sponsored direct talks between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, aimed at reviving negotiations for a settlement to the protracted Cyprus problem.

    Mr. Annan said this was the time to "press forward, in a positive spirit, in search of our common goal, a viable and comprehensive solution to the Cyprus problem."

    Noting the difficulties faced by successive UN secretaries general in their efforts to find a solution to the Cyprus problem, Mr. Annan stressed, "my aim is not to have to report, yet again, to the Security Council about another opportunity missed".

    "No one underestimates the immensity of the tasks before you", he told the two leaders, adding however, that the international community is confident in their ability "to craft a new constitutional and institutional structures, to allow the people of both communities to live together in peace."

    Mr. Annan said if the two leaders agreed with the suggestions his special advisor on the Cyprus problem Diego Cordovez will share with them, on his behalf, they "will be sending a strong and unmistakable signal to the international community."

    "You will be signaling your commitment and determination to reach a comprehensive settlement, for which the people of Cyprus have been waiting for too long," he said.

    The UN secretary general expressed the view that "specific and concrete solutions" to fundamental aspects of the Cyprus problem, agreed upon by the two sides over the years should now be explored, without further delay, "in their proper context".

    "This can be achieved only if you begin consideration of the actual documents and legal instruments that will constitute the comprehensive settlement", he said.

    "I therefore propose", he added, "that you enter upon a process of negotiations, leading to the incremental construction of the juridical framework within which the Greek and Turkish Cypriot communities will forge a new partnership".

    Mr. Annan noted that the fact the process will be conducted under the auspices of the UN will ensure "that the principles of the Charter will inspire all the good offices efforts of the secretary general, will guide all deliberations and underlie all the understandings that you will reach".

    Closing his statements, the UN chief stressed that "both sides should refrain from making any statements".

    Turkish Cypriot leader Rauf Denktash arrived first at Troutbeck accompanied by his two advisors while President Clerides and his two advisors followed fifteen minutes later. Also present at the opening ceremony were special advisor to the UN Secretary General on the Cyprus problem Diego Cordovez, Under-secretary General for Political Affairs Sir Kieran Prendergast, UN resident representative to Cyprus Gustave Feissel and the special representatives of various countries in Cyprus.

    [06] Cyprus government welcomes Greco-Turkish agreement

    New York, 10/07/1997 (ANA/CNA)

    The Cyprus government has welcomed an agreement reached between Greece and Turkey to promote better relations and believes it could facilitate in a positive manner the on-going peace effort to find a solution to the protracted Cyprus problem.

    "The government welcomes the Greek-Turkish agreement to promote friendly ties based upon the principles of international law and the respect for each other's sovereignty", government spokesman Manolis Christofides told Cypriot journalists in New York.

    Asked to say how this understanding will affect the direct talks between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, which began in the US yesterday, he replied "we hope the timing of this development would influence the talks in a favorable way".

    He said the Cyprus government had been informed and had a copy of the text agreed between the two countries Tuesday, at a meeting between their Foreign Ministers, Theodoros Pangalos and Ismail Cem, on the sidelines of the NATO meeting in Madrid.

    "We welcome this development and believe it would have beneficial results on the Cyprus issue, particularly at a time when talks will begin", Mr. Christofides told the press.

    The spokesman stressed "let no one doubt Greece's support for Cyprus in a dynamic manner in efforts to settle the Cyprus problem".

    Replying to questions, he said that Greece's position that a new Turkish offensive against Cyprus would constitute casus belli still stands.

    "This position has not been annulled", he stressed, adding "it has not been abandoned".

    Invited to say if Cyprus should expect US engagement along the lines that Secretary of State Madeleine Albright moved during the Madrid meeting and achieved the meeting between Mr. Pangalos and Mr. Cem, Mr. Christofides reminded of American interest in Cyprus.

    "The US has repeatedly reassured of its dynamic and decisive presence in efforts to settle the Cyprus problem, and in Cyprus' European Union accession course", the spokesman added.

    [07] Sources claim EU pleased with communiqui

    Brussels, 10/07/1997 (ANA - G. Daratos)

    EU Commissioner Hans van den Broek declined to comment on the issuing of a "document of principles" between Athens and Ankara on the sidelines of the NATO summit. However, circles close to the Commissioner said the communiqui was a "step in the right direction, which can contribute in a very positive way to an improvement in relations between the European Union and Turkey."

    For us, the source said, this turn in Greek-Turkish relations makes us believe and hope that they will contribute positively towards resolving the Cyprus issue and problems existing in the Aegean. In addition, this signing in Madrid is coming at the right time to promote a solution to the Cyprus issue, whose talks have started in New York, and will give an additional impetus to the accession of Cyprus in the EU, the same source concluded.

    [08] Greek diplomatic sources comment on Greek-Turkish communiqui

    Madrid, 10/07/1997 (ANA - S.Liarelis)

    The Greek delegation has expressed satisfaction over the joint communiqui issued after the meeting between Prime Minister Costas Simitis and Turkish President Suleyman Demirel.

    Senior diplomatic sources in Greece said that a positive step was taken on Tuesday in the direction of shaping a framework in which solutions to Greek-Turkish problems should be sought.

    The same sources added that "the first step was taken which, however, by itself does not constitute a solution to whatever problem, since further efforts are necessary."

    The sources said time will show whether the Turkish side will implement in practice all that has been agreed.

    They further assessed that much will depend on the course of three processes currently under way. Firstly, from the "experts committee" which is functioning in the framework of the European Union, since Turkey's reply to the second Greek memorandum is s till pending. Whether preconditions for a meeting of the two delegations exist will depend on the content of this reply.

    The second process concerns dialogue on confidence-building measures taking place in the framework of NATO, where the Greek side is awaiting the course discussions will take.

    According to the sources, the third process under way will play a crucial role in the entire climate of Greek-Turkish relations, and concerns UN-sponsored direct talks on the Cyprus issue between Cyprus President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash - taking place in New York under the auspices of UN Secretary General Kofi Annan. The Greek side believes that a finalized normalization of Greek-Turkish relations requires in advance progress over the Cyprus issue and a finalized, viable and just solution to the 23-year-old problem.

    The diplomatic sources stated categorically to the Athens News Agency that the issue of Athens extending its territorial waters to 12 nautical miles was not raised during consultations over the past two days.

    On the contrary, they characteristically stressed that "the Greek delegation stated to the Americans that Greece maintains its right to use it whenever it considers it expedient."

    Lastly, the sources said that the Greek side will now place emphasis on having the proposal made by Athens accepted concerning a "step-by-step" rapprochement in Greek-Turkish relations (on the basis of the known positions expressed by the Greek side) to facilitate a start to efforts to resolve the substantive problems.

    [09] US on communiqui

    Washington, 10/07/1997 (ANA - T. Ellis)

    The US State Department yesterday expressed its full support for the Greek-Turkish communiqui issued in Madrid. State Department spokesman Nicholas Burns said that the communiqui was "a very important foundation agreement, which we believe could commence several practical steps to make relations more foreseeable and stable."

    In answer to a question, Mr. Burns noted that the Imia islets issue constituted a different matter that should be settled in a friendly manner by the two countries.

    [10] Simitis emphasizes new role, challenges for NATO

    Madrid, 10/07/1997 (ANA - S. Liarelis)

    Prime Minister Costas Simitis hailed NATO's two-day summit, which ended yesterday afternoon in Madrid, as one of the most important summits in the history of the alliance.

    "It shows a new direction for NATO, which has been dominated in the past by the United States, Canada and their allies," Mr. Simitis said, summing up the results of the summit.

    "The binding prospect now is security, not in the narrow framework of the Euro-Atlantic alliance, but in a broad, universal framework," the premier said.

    "This shows that NATO is evolving... There will always be those who dominate and those who follow, but in any case the new form of the alliance should have a new architecture," he said.

    This new architecture, Mr. Simitis added, will be achieved by promoting co-operation with Russia and the Ukraine, by advancing new institutions such as the Euro-Atlantic co-operation and strengthening of the Partnership for Peace (PfP) program.

    The premier emphasized the decision taken at the summit on the promotion of regional co-operation, and referred to the need for regional co-operation in the Mediterranean, as a means to enlarge NATO's relations and influence vis-a-vis other countries.

    Mr. Simitis said Greece aimed at promoting a common security policy, adding that the focal point of Greek foreign policy was the resolution of disputes by peaceful means.

    He said Greece wanted NATO to be transformed into an organization striving for peace and co-operation, adding that the Madrid Summit has sent such a message.

    "It is time to leave the Cold War era, showdowns and narrow-minded nationalism, since rivalries do not have a position in today's world which needs new mentalities that help peace.

    "NATO was the creation of a different era, dominated by rival blocs and the 'Iron Curtain'," he said, pointing to NATO's need to find new missions.

    The summit launched the alliance's eastward expansion, the largest in its 48-year history, by inviting Poland, Hungary and the Czech Republic to join.

    [11] Simitis on direct Cyprus talks

    Madrid, 10/07/1997 (ANA)

    Prime Minister Costas Simitis yesterday said he wished that UN-sponsored direct talks between Cyprus President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash would advance.

    The direct talks are being held outside New York City, in the hamlet Troutbeck.

    Mr. Simitis said he wished that the talks would lead to a just and viable solution to the 23-year-old Cyprus problem based on UN resolutions.

    [12] Simitis-Gligorov meeting in Madrid

    Madrid, 10/07/1997 (ANA - S. Liarellis)

    Prime Minister Costas Simitis held a brief meeting yesterday with president of Former Yugoslav Republic of Macedonia (FYROM) Kiro Gligorov, on the sidelines of the NATO summit.

    Mr. Simitis said the meeting focused on the situation in the Balkans and the need for co-operation and promotion of relations.

    The name issue was not raised in the meeting, Mr. Simitis said, adding that the issue of the former Yugoslav republic's name was currently being discussed in New York.

    [13] Israelis, Palestinians meet in Vouliagmeni

    Athens, 10/07/1997 (ANA)

    A non-binding, three-day meeting between Israeli and Palestinian personalities aimed at exchanging views on the future of the Middle East peace process began yesterday at the Athens seaside resort of Vouliagmeni.

    The gathering is the product of a Greek government initiative.

    The meeting is attended by Israeli and Palestinian parliamentarians, academics and personalities in the general sense, who will have the opportunity to discuss the serious problems in relations between the two communities. The meeting will be addressed by Foreign Minister Theodoros Pangalos and Foreign Under-secretary Yiannos Kranidiotis, while professor Theodoros Kouloumbis will coordinate the meeting.

    In an announcement, the foreign ministry expressed satisfaction over the acceptance of its invitation by the participants.

    "Greece is watching developments in the Middle East with particular interest, developments which affect stability and security in our region and beyond. This meeting is part of continuous efforts being made by our country towards all sides to promote the peace process, which is at a particularly delicate and crucial phase at present," the foreign ministry announcement concluded.

    [14] Stephanopoulos hosts dinner for von Weizsaecker

    Athens, 10/07/1997 (ANA)

    President of the Republic Kostis Stephanopoulos hosted a dinner in honor of visiting former German president Richard von Weizsaecker yesterday.

    Mr. Weizsaecker was accompanied by his wife, the ambassador of the Federal Republic of Germany in Athens and the director of his private office.

    [15] Prince Charles to visit Athens next year

    Athens, 10/07/1997 (ANA)

    Britian's heir to the throne Prince Charles has accepted an invitation to take part in an international forum next year in Athens on the preservation of the city's historical character. The forum is being organized by the city of Athens.

    The Prince of Wales was invited to the forum by Athens Mayor Dimitris Avramopoulos, during a working lunch the former hosted for the mayor at his home in Gloucester.

    The two men discussed the restoration of classical buildings, the preservation of historical monuments and developments in modern town planning.

    Mr. Avramopoulos said Prince Charles, who is known for his interest in traditional architecture, appeared to be very well informed on projects taking place in the Greek capital and had specific views regarding the restoration of classical buildings and the preservation of antiquities.

    Mr. Avramopoulos also said he would visit London in the autumn as the official guest of the British government. The Mayor said he had ascertained a "clearly positive climate" with regard to Athens' candidacy to host the 2004 Olympic Games, in talks Tuesday afternoon with members of the House of Lords and House of Commons.

    Mr. Avramopoulos also attended a dinner in his honor hosted by London-based Greek shipowners on Tuesday night.

    [16] Prize for Development Minister

    Athens, 10/07/1997 (ANA)

    Development Minister Vasso Papandreou was awarded the international prize "Fontane di Roma," in a special ceremony held yesterday in Athens.

    The annual prize, under the auspices of the Rome Prefecture, the Rome Municipality, the Rome Press Union and other fora, is awarded to internationally renowned personalities in the fields of politics, diplomacy, business, science and arts.

    Ms. Papandreou was nominated for the award by the UNESCO Federation of the Dodecanese.

    [17] Fires near ancient Olympia abating

    Athens, 10/07/1997 (ANA)

    Two large fires burning near ancient Olympia were dying down as of late last night, after having burned approximately 5,000 hectares of forest, pastureland and crops.

    The two fires broke out Monday at Kallithea and Tuesday at Phygaleia, with minor fronts in other areas. The forest fires placed the prefecture of Ilia under a state of emergency.

    Firefighting forces include six aircraft, one helicopter, 32 firetrucks, 100 firefighters, 35 commandos and four army units.

    Fires burning in other areas of Greece have been placed under full control, according to reports.

    [18] Tzoumakas says air force to blame for Seikh Sou forest fire

    Athens, 10/07/1997 (ANA)

    Agriculture Minister Stephanos Tzoumakas, whose ministry is responsible for forests and forest fires' prevention, publicly unveiled a report yesterday on the blaze that ravaged the Seikh Sou forest of in Thessaloniki over the past few days.

    In a press conference, Mr. Tzoumakas said there would be an in-depth investigation to determine who was to blame for the fire that destroyed more than 1,700 hectares or 40 per cent of the urban forest.

    According to the report he presented, his ministry shifts the blame on the military and the Hellenic Air Force general staff, which he said was responsible for the "Canadair" firefighting aircraft.

    He said the government's main concern in the case was to create an improved forest in the area which burned down.

    [19] EU to grant ECU 13 million for fire protection programs

    Brussels, 10/07/1997 (ANA - M. Savva)

    The European Commission has decided to grant about Ecu 13 million for programs concerning the protection of forests from fires and pollution following a proposal made by EU Agricultural Commissioner Franz Fischler.

    The 107 programs which will be funded on the basis of regulations approved by the Council of Ministers concern the protection of forests in Greece, Portugal, Italy, France, Spain and Germany.

    In 1987 the European union implemented a program for monitoring forests and the harm they are subjected to from air pollution and fires.

    Programs for member-states have been funded since 1992 and now the Commission has decided to intensify controls for forest protection, particularly in countries which are frequently faced with such problems.

    [20] IOC delegates continue tour of Greece

    Athens, 10/07/1997 (ANA)

    Two more members of the International Olympic Committee (IOC) visited Greece yesterday and planted an olive tree each in his name at the special grove in Athens.

    IOC delegates Rene Killy from Switzerland and Jean-Claude Fasel from France were briefed by Athens 2004 committee chairman Yianna Angelopoulou-Daskalaki on the Greek capital's bid.

    IOC members from Russia, Zimbabwe, the United States and Britain, who are already in Greece, were given a tour of ancient Olympia.

    [21] 'Social dialogue' sets up first committee

    Athens, 10/07/1997 (ANA)

    An experts' committee will be established to examine issues of social security and present a report by September, Labor and Social Security Minister Miltiades Papaioannou said yesterday.

    At a press conference, Mr. Papaioannou said that an agreement between the government and the General Confederation of Workers of Greece (GSEE) yesterday set the groundwork for social dialogue.

    The committee will be established at the same time with a 14-member coordinating secretariat that will include representatives from GSEE and the Civil Servants' Supreme Administrative Council (ADEDY), the two largest labor unions in Greece for the public and private sector, respectively.

    The secretariat will also include representatives from the Greek Federation of Industries (SEB), and the handicrafts and merchants' unions. Labor and Social Security Under-secretary Nikos Farmakis will preside.

    The experts' committee is scheduled to examine first the issues of auxiliary insurance pensions and the required years of work for a pension.

    [22] Labor Under-secretary visits Britain

    London, 10/07/1997 (ANA - L. Tsirigotakis)

    The governments of Britain and Greece have common concerns and generally adopt the same solutions on issues of employment and social policy, Labor Under-secretary Christos Protopapas said here yesterday.

    During a two-day visit to Britain, Mr. Protopapas met with Minister of State for Employment, Social Security and Equal Opportunity, Andrew Smith, and Minister of State for Employment Issues, Ian McCartney.

    Mr. Protopapas also met with the president of the Federation of British Industrialists, the secretary general of the Confederation of British Labor Syndicates and several ethnic Greek professors at the London School of Economics, from whom he requested help in the analysis of social and employment policy implemented by the British government.

    [23] Greek think-tank calls for tighter economic policies

    Athens, 10/07/1997 (ANA)

    The government should tighten its economic stabilization policies in order to align with other European Union countries and take part in economic and monetary union, the Institute for Economic and Industrial Research (IOBE) said yesterday.

    In a quarterly report on the economy, IOBE urged the government to shore up existing policies aimed at convergence because the country still fell short of targets set in the Maastricht treaty.

    Even a shift to more lax criteria for a unified EU economy or postponement of a single EU currency could leave Greece behind, it said.

    "Greece would face the added risk of being the only country excluded from the Euro," said the report, although welcoming government statements that existing economic policy would remain in place.

    It strongly criticized the manner in which social dialogue on employment and social insurance was being conducted.

    "To date, the social dialogue has emerged as a simple exchange of widely known views among the social partners (government, employers, employees) ... Social consensus per se has taken precedence over the ultimate target of extensive and truly effective structural reforms", it said.

    IOBE called for swift, bold action in "politically thorny problems" mainly to ensure maximum flexibility on the job market.

    It further called for deep changes in the social security and taxation systems, public administration, public utilities, the health system, and state banks. Noting that the government enjoyed the confidence of markets due to its cautious macro -economic policy", IOBE warned: "This auspicious climate is already tending to be weakened mainly due to serious delays in structural policy".

    IOBE also criticized a controversial recommendation of a lump-sum tax on business profits contained in a recent government-sponsored report by a committee headed by Professor Ioannis Spraos. It attributed the proposal to "solely political aims".

    IOBE anticipated GDP growth in excess of three percent this year, and inflation running at 5.5-5.6 percent.

    It also warned there was no room for complacency over inflation, despite a declining trend. Greater caution and wider consensus was needed on incomes policy.

    IOBE criticized the government's "hard drachma" policy for its adverse repercussions on production and employment, but said markets had indicated an outright devaluation of the drachma was unlikely in the near future.

    It further criticized the government for "minimal progress" in reducing public spending and creating new deficits in public sector utilities and companies.

    [24] Greek bourse has healthy outlook despite inflation rise

    Athens, 10/07/1997 (ANA)

    The Greek bourse has retained its positive prospects for the future despite a slight rise in the inflation rate in June, a Bank of America annual survey on the Greek market said.

    The survey ranks the Athens Stock Exchange as the cheapest market in Europe with one of the lowest P/E (price/earnings) ratios, making stocks more attractive.

    The average rate of increase in earnings per share also remains attractive, at 9.2 percent, it said.

    According to a survey by Morgan Stanley Capital International, Greek blue-chips Hellenic Telecommunications Organization (OTE), Alpha Credit Bank and National Bank of Greece were among this year's 200 largest companies in emerging markets.

    OTE moved up from the 26th position last year to 19th, while Alpha Credit and National Bank ranked 121st and 17th respectively, although they did not appear in the list in 1996, said the survey, published in Business Week, the US financial magazine.

    [25] Blue-chip buying pushes the Athens bourse higher

    Athens, 10/07/1997 (ANA)

    Stock prices resumed their upward trend yesterday after Tuesday's directionless trading on the Athens Stock Exchange with investors chasing bargains in the banking and industrial sectors.

    The general index closed 1.82 percent higher at 1,576.33 points but trading remained moderate with turnover at 11.7 billion drachmas.

    All sector indices scored gains.

    Banks were 2.81 percent up, Leasing rose 2.42 percent, Insurance increased 0.77 percent, Investment ended 2.29 percent up, Industrials rose 1.42 percent, Construction increased 1.52 percent, Holding rose 0.38 percent and Miscellaneous jumped 2.63 percent.

    The small cap index rose 0.25 percent.

    Broadly, advancers led decliners by 131 to 73 with another 29 issues unchanged.

    Demetriadis, Greek Cables, Elfico and Bank of Central Greece scored the biggest percentage gains, while Remek, Balkan Export and Viosol suffered the heaviest losses.

    National Bank of Greece ended at 35,860 drachmas, Ergobank at 17,600, Alpha Credit Bank at 19,105, Titan Cement at 15,300, Intracom at 12,600 and Hellenic Telecommunications Organization (OTE) at 6,445 drachmas.

    [26] EU in court action against Greece on property sale

    Athens, 10/07/1997 (ANA)

    The European Commission has started legal proceedings in the European Court of Justice against Greece on the grounds that Greek authorities are refusing the sale of property in border regions to citizens from other European countries.

    The Commission argues that the Greek authorities' policy is incompatible with the European Union's provisions on free movement of capital, services and people within the EU.

    Greek authorities allow the sale of property in border regions to foreigners on the condition that they are interested in starting business activities in the country.

    Under the legal proceedings, the Commission expects a comprehensive answer within two months to the reasoned opinion it has sent to the government, otherwise it will file a complaint to the European Court.

    End of English language section.


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