Athens News Agency: News in English (AM), 97-06-13

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

NEWS IN ENGLISH

Athens, Greece, 13/06/1997 (ANA)

MAIN HEADLINES

• Pioneer alternative energy project in Crete
• Albanian Socialist Party leader holds talks with Greek leaders
• Apostolakis: Ankara must realise Aegean borders won't change
• US says warship transfers to Greece, Turkey separate issues
• Turkey again raises regional headquarters issue
• Greek-US memorandum on technological cooperation in Balkans
• Agreement to reinvigorate Lake Pamvotis signed
• OECD forecasts restrained economic development for Greece in '97
• Greece unable to meet EU public debt criteria in '97 says OECD
• Greek stocks end down in robust trade
• UN ranks Greece 20th in quality of life
• Weather
• Foreign exchange

NEWS IN DETAIL

"The Greek government backs investments involving alternative sources of energy and for this reason has taken the pioneering decision to support the construction of the world's biggest photovoltaic power station on Crete," Development Minister Vasso Papan dreou told a press conference yesterday.

In effect, Ms Papandreou inaugurated the beginning of a promising relationship between the government and the environmental organisation Greenpeace in an effort, as she said, to protect Greece by promoting alternative energy sources". "The vast energy sources in Greece must be fully exploited," she added, describing solar energy as "a choice of strategic importance".

A Greenpeace press release meanwhile said that "solar power today entered a new era" following the Greek government's decision to begin construction of the photovoltaic power station.

The station is part of a two-year campaign by Greenpeace to transform Crete into a solar-powered island.

According to Greenpeace, the Greek government will fund the first 5 Megawatt tranche of the proposed 50 Megawatt power station with IWECO Solar, a subsidiary of the US company ENRON Solar.

The European Union and the Greek government will fund 55 per cent of the capital costs. Total investment, the organisation said, is 17.75 million dollars.

ENRON's plan submitted to the Greek government proposes building 9 Megawatts a year until 50 Megawatts is reached by the year 2003. The largest photovoltaic power station at the moment is 3.3 Megawatts in Italy.

"This smashes conventional assumptions on solar power in terms of scale and costs. The solar age is no longer a dream of the future but a reality today, " Thilo Bode, executive director of Greenpeace International said in the press release.

At 50 Megawatts, the Crete solar power station would be 15 times larger than any other solar installation in the world, more than four times cheaper than the average costs of photovoltaic energy, and provide electricity for nearly 100,000 people, which is one-eighth of Crete's population. "This is the type of energy investment which governments must now implement if we are to have any chance of averting dangerous climate change, and if countries are to meet their own greenhouse gas reduction commitments," Mr. Bode said.

Earlier, Ms Papandreou announced 1.7 trillion drachmas (US$615 million) in energy investments over the next five years.

Albanian Socialist Party leader holds talks with Greek leaders

Prime Minister Costas Simitis last night discussed the situation currently prevailing in Albania in light of general elections in that country on June 29 with Albanian Socialist Party leader Fatos Nano, who is visiting Greece at the invitation of the ruling PASOK party.

Today, Mr. Nano will meet National Defence Minister Akis Tsohatzopoulos, main opposition New Democracy party leader Costas Karamanlis and Coalition of the Left and Progress leader Nikos Constantopoulos.

Foreign Minister Theodoros Pangalos also held talks with Mr. Nano, who is heading an Albanian Socialist Party delegation. No statements were made after the meeting.

Apostolakis: Ankara must realise Aegean borders won`t change

National Defence Undersecretary Dimitris Apostolakis, currently on a tour of the Dodecanese islands, said Ankara must accept that the borders of the Aegean have been consolidated and will not change in any way.

"The borders of the Aegean have been consolidated and will not change in any way. If the Turks accept this and stop using the threat of war it is certain that a better period can develop for the two peoples," he said.

"We are living in a difficult region and we are facing a specific threat. However, whatever act of force against Greece will meet with a swift and painful reply. We are not a warlike people. We want peace and Greece is working for stability in the region. Unfortunately, we are faced with threats alone. We have the right to defend even the last inch of land," he added.

Replying to a question on the extension of Greek territorial waters to 12 nautical miles, Mr. Apostolakis said "it is the government's steadfast position that no-one can doubt Greece's right to extend its territorial waters. It reserves the right to exercise this measure whenever it considers it expedient. Nobody has waived or sold out this right."

Mr. Apostolakis arrived on Rhodes yesterday and where he was briefed by division commander Maj.-Gen. Athanasios Nikolodimos. He later visited the border island of Kastellorizo.

US says warship transfers to Greece, Turkey separate issues

US State Department spokesman Nicholas Burns said yesterday the Clinton administration did not link the respective agreements for the lending and transfer of warships to Greece and Turkey, and reiterated its support for their implementation, which requires approval of the US Congress.

"According to the law, Congress must be informed of our intention to renew the lease of navy vessels to Greece. We support a renewal of the lease of the Adams-type destroyers, and the Knox-type frigates to Greece...

"In the case of Turkey, we want to proceed to the transfer of frigates. I would be less than honest if I said that there weren't certain problems with Congress, but we continue to support the transfer of frigates to Turkey, and we shall continue doing so. We want both agreements to be implemented, but we don`t link them. Greece and Turkey are two equally important allies of the US," he said.

Turkey again raises regional headquarters issue

The issue of NATO's regional headquarters within the alliance's new structural organisation was again brought up by Ankara during yesterday's Defence Ministers' conference in Brussels.

Speaking to reporters afterwards, National Defence Minister Akis Tsohatzopoulos said Turkish Defence Minister Turhan Tayan's proposal for a joint regional headquarters covering both Greece and Turkey has the obvious intention of gaining more favourable terms for Turkey's claims vis-a-vis Greece.

He added that Ankara has isolated itself, while no NATO member-state agrees with the Turkish proposal.

Greek-US memorandum on technological cooperation in Balkans

A technological cooperation memorandum between Greece and the United States concerning the Balkans was signed in Thessaloniki yesterday.

The memorandum was jointly signed by National Economy Ministry Secretary- General Nikos Zahariadis and the chief of the US Commerce Department's technology section for Europe and Africa, Lucy Richards, during a meeting held at the Thessaloniki Technologi cal Park.

Technological cooperation concerns the sectors of telecommunications, informatics, the environment, construction, foodstuffs and agriculture.

The memorandum determines specific actions to be undertaken to promote cooperation as well as mechanisms to promote cooperation.

Agreement to reinvigorate Lake Pamvotis signed

The Onassis Foundation and Western Australia University professor Jorg Imberger yesterday signed a 68-million-drachma, two-year agreement for the conducting of research and submission of proposals for the rehabilitation of Lake Pamvotis in Ioannina, nor thwestern Greece.

Australian ambassador to Athens Robert Merrillees and Ioannina Mayor Mr. Glinavos attended the signing ceremony.

OECD forecasts restrained economic development for Greece in '97

The rate of economic development in Greece will be restrained this year, while domestic demand will be considerable, powered primarily by investments, according to a six-month prediction by the Organisation for Economic and Cooperation Development (OECD) publicised yesterday.

The study estimates a 3 per cent increase in GDP this year compared to a 2.6 per cent increase in 1996.

The recovery of private consumption will be favoured by an increase in available incomes for households, the OECD added.

Plans funded by European Union resources must help public investments a great deal, while the decrease in interest rates must continue to encourage investment in the housing sector.

A restrictive monetary policy has allowed for a considerable decrease in the inflation rate, it was added. The OECD estimates a 6 per cent increase in prices this year, the lowest inflation rate since 1973. However, this rate remains higher than targets set by the Greek government which is a 4.5 per cent inflation rate.

The OECD expresses its reservations on the Greek economy's possibilities to meet predictions. In its view there is a possible danger of salary increases which will be higher than predicted. In addition, the profit margins for businesses could be dealt a blow by the cost of currency as well as by an increase in the cost of salaries. Consequently, investments will be shaken and this will affect the growth rate, constituting a high risk scenario in implementing targets set by the budget, the OECD stressed.

Greece unable to meet EU public debt criteria in '97 says OECD

The Organisation for Economic Cooperation and Development (OECD) predicted that Germany, France and Italy, along with Greece, would not fulfil the public deficit criteria set by the Maastricht treaty this year. The Paris- based OECD in its semi-annual report for 1997 said that the three countries would show deficits of around 3.2 percent of GDP, while Greece would show a 6.0 percent deficit.

The Maastricht treaty's criteria set a three percent target as a condition to participate in European economic and monetary union.

The organisation, however, predicted that Germany, France and Italy would meet the public deficit criteria next year. In its general economic report, the OECD predicted that industrial nations would show the biggest growth in a decade in 1997 and 1998.

The average growth of the 29 member-states was expected to reach 3 percent this year, falling to 2.7 percent in 1998, it said.

Greek stocks end down in robust trade

Stock prices halted a two-day rally on the Athens Stock Exchange to end moderately lower despite vigorous trading and big gains in the construction sector.

The general index closed 0.41 percent lower at 1,631.90 points reflecting a drop in heavily weighted Hellenic Telecommunications Organisation (OTE) and a fall in bank shares.

OTE remained the barometer of the market on the second day of subscription to a public offering of 45 million shares. Its price fell 250 drachmas to 7, 200 reversing a strong advance of more than 800 drachmas in the last four sessions. Sector indices en ded mixed. Banks fell 0.27 percent, Leasing was 0.65 percent higher, Insurance rose 0.52 percent, Investment was 0.94 percent up, Industrials eased 0.02 percent, Holding was 0.73 percent off and Miscellaneous rose 1.10 percent. The Parallel Market index surged 2.02 percent.

Trading was extremely heavy on turnover of 30 billion drachmas. Broadly, advancers led decliners by 116 to 105 with another 23 issues unchanged. Keranis, Bank of Athens, Mouriadis and Heliofin scored the biggest gains, while Mohlos, Ergodata and Alysid a suffered the heaviest losses of the day.

National Bank ended at 36,845 drachmas, Ergobank at 18,450, Alpha Credit Bank at 20,150, Titan at 26,000, Intracom at 13,750 and Aluminium of Greece at 18,900 drachmas.

UN ranks Greece 20th in quality of life

Canada, France, Norway and the United States have the highest quality of life while Greece holds the 20th place, according to the United Nations Human Development Index.

The index, published by the UN Development Programme, measures living standards according to per capita income, life expectancy and educational standards. The latest report was based on 1994 figures.

Statistics showed that rich countries offer a better standard of living even to poor people, but stressed that a high per capita income does not necessarily raise the quality of life.

Poverty, however, has worsened in Australia, Belgium, Finland, Germany, the Netherlands, Norway, Britain and the United States while it has decreased in Canada, Denmark, France, Italy and Spain.

The United States has one of the world's highest per capita incomes at $26, 397. But the report said the number of people living in poverty has gradually risen from 16 percent in 1974 to more than 19 percent in 1994.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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