Athens News Agency: News in English (AM), 97-11-07

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

NEWS IN ENGLISH

Athens, Greece, 07/11/1997 (ANA)

MAIN HEADLINES

• Greek foreign policy initiatives bear fruit, Premier says
• Karamanlis fully disagrees with gov't's foreign policy
• Papandreou signs European Agreement on Citizenship
• Russia voices concern over Turkish military exercise in Cyprus
• Turkish colonel killed during manoeuvres in Cyprus
• Mantelis announces new measures for public transport
• Development minister opens 'Philoxenia '97' exhibition
• Hoteliers call for gov't aid for tourism promotion
• Greek bourse ends lower pressured by high interbank rates
• Maillis concludes bonds loan for $ 35 mln
• Promotion of Greek products in the Japanese market
• Weather
• Foreign exchange

NEWS IN DETAIL

Prime Minister Costas Simitis said last night his government's policy of active initiatives in foreign relations was not only in tune with the demands of the times, but was also bearing fruit.

"The new era demands overcoming the traumas of the past, it demands new perceptions and ways of approaching the major political issues, adjustment to the messages of the new international reality, and initiatives in order to determine ourselves our new identity and developments in the area," he said during parliament's special debate on foreign policy issues.

"The policy of active initiatives which we apply is already bearing fruit in our relations with the European Union. It is bearing fruit in the Balkans. And it will bear even more fruit in the sum total of the country's international relations," he added .

Pre-empting critics who might wonder why tension with Turkey is still high, the prime minister said the neighbouring country's reaction was the result of Greece's pressure. "The reaction originates from our moves, which have resulted in a freezing of issues related to the EU's protocol of financial assistance to Turkey,the prospects for EU Cypriot membership negotiations ... EU's urging of Turkey to contribute to a solution of the Cyprus problem, the settlement of Greek-Turkish issues, the violation of human rights, and a solution of the Kurdish issue," he said.

The prime minister described as necessary, useful and positive his meeting with his Turkish counterpart Mesut Yilmaz on Crete, where he directly and clearly set out the sum total of Greek positions.

The prime minister said he opposed Mr. Yilmaz's position for dialogue on all issues, describing the step-by-step approach as the only realistic and productive.

"The next step would be the drafting of a joint agreement to refer the issue of the continental shelf to The Hague, while the two countries could start cooperation in sectors of mutual benefit such as tourism and trade," he said.

He stressed that this proposal was beneficial for Greece, Turkey and the whole region, and that Greece weakened Turkey's charges that it was refusing rapprochement.

"The two countries could talk without the mediation of third parties, whose good offices may prove useful, but we ought to render them unecessary. We shall therefore pursue a continuation of contacts through the most appropriate means.

Referring to the Cyprus issue, Mr. Simitis said the prospect for the island- republic's EU membership could constitue a catalyst for finding a political solution, and was an independent process without terms and pre-conditions.

"The defence of Cyprus is an inalienable right and duty. Greece will stand by Cyprus in any aggressive move by Turkey...

He described the southeast European leaders' summit on Crete, last Monday and Tuesday, as a paramount event in the development of relations between Balkan countries in the last few decades.

"Greece is determined to play a prominent role in the efforts for the creation of a cohesive area of political and economic cooperation, which will have common political orientations, will seek development and convergence of economies, and will increas ingly reduce the distance from Western Europe," he said.

Karamanlis fully disagrees with gov't's foreign policy

Main opposition New Democracy party leader Costas Karamanlis, who had originally asked for last night's debate, expressed his full disagreement with the government's handling of foreign policy issues.

He stressed the need for a national understanding on such issues, adding that this required a briefing of political leaders which, however, had not been forthcoming, and wondered why this was so, and whether the prime minister was afraid to do so. Two other conditions, also lacking, were dialogue in parliament and the setting up of a national council of foreign and defence policy.

Referring to Greek-Turkish relations, Mr. Karamanlis charged that Turkish policy was hegemonic and expansionist, aiming to a revision of the status quo, and particularly, a division of the Aegean.

"It is a policy of the gunboat," he said.

"With the government's ineffective and inadequate policy, the situation is continuously deteriorating," he warned.

"A most clear-cut policy is needed and the clearest of messages must be sent to Turkey. Greece is continuously sending the wrong messages to the other side. This is proved by the fact that Turkish provocations and infringments have multiplied in number and intensity. It is the first time that we have references to 'grey areas' and claims on 131 rocky islets, the first time that an issue of territorial integrity is raised," he said.

Papandreou signs European Agreement on Citizenship

Alternate Foreign Minister George Papandreou signed the European Agreement on Citizenship in Strasbourg yesterday on behalf of the Greek government.

The agreement was promoted by the members of the Council of Europe with the purpose of developing legal principles concerning citizenship and their adoption by international law.

The agreement also anticipates the avoidance of discriminations in issues related to citizenship and the right to defend family life in accordance with the human rights code.

Addressing the 101st Ministerial Session of the Council of Europe, in the framework of which the agreement was signed, Mr. Papandreou stressed Greece's support for the Council's institution, pointing out that its signing and the implementation of treati es is one of the most effective ways to strengthen its role.

Russia voices concern over Turkish military exercise in Cyprus

Russia yesterday expressed concern over a Turkish military exercise in the Turkish-occupied north of Cyprus saying that the character of the exercise raised doubts over its "defensive nature".

"Such demonstrations of military force create some doubts over the defensive character of the exercises," Russian Foreign Ministry spokesman Gennadi Tarasov said, according to the "Interfax" agency.

Turkish aircraft made mock bomb attacks on a supposed Russian-made anti- aircraft S-300 missile site. Cyprus has signed an agreement to buy the Russian missiles, which are expected to arrive on the island republic in mid-1998. Turkey strongly opposes the deployment of the missiles, threatening to prevent with military means their trasportation to Cyprus. The Turkish demonstration "prevents the search of a negotiated settlement of the Cyprus problem," Mr. Tarasov added.

Turkish colonel killed during manoeuvres in Cyprus

Suspicious circumstances surround the death of a Turkish colonel who was killed Wednesday during a Turkish manoeuvre in the occupied north of Cyprus, according to Turkish press reports yesterday.

Colonel Vural Berkai, in charge of the operations department of the Turkish General Staff, was in a tent watching the Taurus-2/97 military exercise when a bullet ricocheted off a rock and hit him, private television ATV reported. The newspaper "Sabah" maintained yesterday that the tent was two kilometres away from the site of the exercises, and added that there were suspicions that the shot had been aimed at Turkish army chief General Hussein Kivrikoglu, who was standing in front of the colonel.

The newspaper Milliyet also headlined its account of the issue "Colonel's suspicious death". The accident came on the last day of the exercise, a full-scale live-fire military exercise during which Turkish soldiers practiced defending the Turkish-held part of Cyprus from an invasion.

Mantelis announces new measures for public transport

Transport and Communications Minister Tassos Mantelis yesterday announced a series of measures to upgrade public transport in Athens and the wider area.

Mr. Mantelis said he had ordered public transport bodies to make immediate investments that would serve the needs of citizens, including the purchase of 100 mini-buses, the upgrading of inter-municipal transport, lighting at bus and trolley stops and t he creation of more routes, particularly express routes.

Mr. Mantelis said the ministry was looking into finding a suitable location for a KTEL terminal in western Athens, calling the present KTEL terminals on Kifissos Avenue "unacceptable".

"Until we abolish them we will make the necessary interventions," he said.

The operation of the new inter-city bus terminal, he said, would be self- financed, and would include post offices, restaurants and banks.

Development minister opens 'Philoxenia '97' exhibition

Speaking at a press conference after inaugurating the exhibition "Philoxenia '97" in Thessaloniki yesterday, Development Minister Vasso Papandreou announced the creation of a committee to study the possibilities of the country's tourist promotion on the o ccasion of the Athens 2004 Olympiad and the hosting of other major sports events undertaken by Greece.

The committee will include personalities and representatives from agencies. Ms. Papandreou pointed out that the target is not to promote Athens alone but the entire country.

Referring to this year's tourist period, Ms. Papandreou said a small increase occurred in all indicators and expressed "reserved optimism" for a similar increase in 1998.

Hoteliers call for gov't aid for tourism promotion

The Panhellenic Hoteliers' Federation has asked the government to contribute at least 10 billion drachmas to the federation's budget for the promotion of tourism in Greece.

The request was made in Thessaloniki yesterday, the first day of the annual Philoxenia Tourism Fair at a meeting of the federation's board, which has been expanded this year to include the heads of local hotel unions.

Otherwise, Greek hoteliers fear that no improved returns can be expected. They also urged the government to support the provinces in their efforts to attract tourism.

This year's increase in tourism was estimated at around 10 percent, although financial returns were down from the previous year as prices had been kept down, a trend which they said they could not be expected to maintain.

Greek bourse ends lower pressured by high interbank rates

The interest rate barrier according to the market's description of recent high interest rates in the domestic money market discouraged trading on the Athens Stock Exchange for one more session yesterday.

Greek equities lost further substantial ground to end sharply lower.

Traders said the market ignored news of a new fall in inflation at 4.7 percent in October. The Greek market was closely following events in the domestic money market where interbank rates remained steady at 70 percent in a central bank's effort to defend the national currency.

The general index closed 4.23 percent down at 1,513.66 points with all sector indices losing ground. Banks fell 3.88 percent, Insurance dropped 4.47 percent, Leasing eased 6.99 percent, Investment fell 3.50 percent, Construction was 6.95 percent off, In dustrials fell 5.37 percent, Miscellaneous eased 4.10 percent and Holding dropped 3.91 percent.

The parallel market index for small cap companies ended 4.76 percent down.

Trading was extremely heavy reflecting the transaction of large block of shares in Elval, Viochalco and Hellenic Telecommunications Organisation. Turnover was 43.7 billion drachmas.

Broadly, decliners led advancers by 209 to 19 with another eight issues unchanged.

Macedonian Mills and Kekrops scored the biggest percentage gains with 7.7 and 7.4 percent respectively, while Chalyps Cement, Pairis, Benrubi, Shelman and Heracles Cement suffered the heaviest losses.

National Bank of Greece ended at 28,400 drachmas, Ergobank at 16,400, Alpha Credit Bank at 18,030, Delta Dairy at 3,610, Titan Cement at 13,895, Intracom at 12,450 and Hellenic Telecommunications Organisation at 5, 750.

Maillis concludes bonds loan for $ 35 mln

The Maillis company has concluded a bonds loan for 35 million dollars. The loan has been covered in full by private investments in the London capital market.

The duration of the bonds loan is seven years with a three-year period of grace. The capital obtained will be used to eliminate the company's short- term liabilities which will considerably improve its liquidity.

Profits after taxes will amount to 1.49 billion drachmas this year compared to 1.039 billion in 1996, while the prediction for 1998 is profits totalling 2.1 billion.

Sales in 1997 are expected to reach 14.6 billion drachmas as against 10.74 billion, while the figure anticipated for 1998 is 19.8 billion drachmas due to an increase in the production capacity.

Promotion of Greek products in the Japanese market

The presence of Greek products in the Japanese market, currently the second in size in the world, is considered extremely limited.

According to data provided by Eurostat and processed by the Research Institute (IEES) of the Federation of Exporters of Northern Greece (SEBE), Greek exports to the Japanese market in 1996 amounted to 65 million ECU.

A decrease in tobacco exports is visible although it remains in first place among products exported to Japan by Greece. Other products exported are tinned food, cotton, aluminium products, marble and fresh fish.

According to Eurostat, 70 per cent of Greek exports to the market in question come from northern Greece.

Greece's imports from Japan are very high and in 1996 they totalled 712 million ECU. They concern the import into the Greek market primarily of cars and other vehicles, ships, machines and electrical appliances.

In an effort to promote Greek products in the Japanese market, the National Economy Ministry is implementing the plan "Ermis" which anticipates the development of commercial and tourist transactions with Japan. In parallel, it is implementing a programme for the promotion of Greek clothes in the Japanese market.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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