Athens News Agency: News in English (AM), 98-05-15

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

NEWS IN ENGLISH

Athens, Greece, 15/05/1998 (ANA)

MAIN HEADLINES

• Demirel statements dismissed as aimed at 'domestic consumption'
• Athens welcomes breakthrough in Kosovo crisis
• US Rep.Gilman calls for more protection of Ecumenical Patriarchate
• Greek, Turkish journalists meeting held in Paris
• Parliament approves NATO expansion bids
• Simitis calls on business leaders to push harder for convergence
• GSEE, employers agree on two-year labour accord
• Clarifications on monetary report
• National Bank of Greece launches Romania branch
• Drachma hits record high since ERM entry
• Weather
• Foreign exchange

NEWS IN DETAIL

Greece yesterday dismissed statements by Turkish President Suleyman Demirel that Ankara would use force "at the appropriate time" as purely for domestic consumption.

"Turkey is facing enormous domestic problems and the artifice of trying to distract public opinion with foreign policy issues is all too familiar," government spokesman Dimitris Reppas said.

He was commenting on a statement by Mr. Demirel on Wednesday, in relation to the issue of Aegean islets. The Turk president said Ankara "will use its strength at the appropriate time", during an address to a war academy in Istanbul.

Mr. Reppas attributed the provocative behaviour of Turkish officials, such as Mr. Demirel, to the neighbouring country's serious domestic problems.

The Greek spokesman also accused Ankara of having made Athens its "permanent target" and its aggressiveness "a rule of conduct".

"Ankara is not attaining the targets which it has set and is trying to cover up this failure with attacks against Greece," Mr. Reppas said, charging that Turkey was a destablising factor.

He termed statements of Turkish officials as "conceited" and their conduct "pompous", saying this reflected instability and insecurity.

Earlier, National Defence Minister Akis Tsohatzopoulos said the Hellenic Armed Forces are "well-prepared to guarantee Greece's sovereignty and security", and called on Turkey to "finally realise that there was nothing up for negotiation in the Aegean".

"Whoever chooses the road of threat of use of violence reveals and confirms himself to be the main destabilising factor to peace, stability and security in our region, and should be absolutely certain that he will come up against a decisive stance not o nly from Greece but also the international public opinion, which cannot allow nations to regress into such political attitudes," Mr. Tsohatzopoulos said.

Commenting on Mr. Demirel's statements, Defence Undersecretary Dimitris Apostolakis said the reinforcement of a climate of tension in relations between the two countries was a mistaken option.

"We are prepared to cooperate with the Turkish people, as long as there is no threat against us on their part," he said in an address during events marking the 78th anniversary of the liberation from Turkish rule of the Thrace town of Komotini. He stres sed, however, that Greece was resolved to directly face any threat.

Athens welcomes breakthrough in Kosovo crisis

The Greek government yesterday welcomed today's scheduled meeting in Belgrade between Yugoslav President Slobodan Milosevic and Kosovo's ethnic Albanian leader Ibrahim Rugova.

"Greece expresses the hope that both sides will rise to the occasion and fully assume, in the difficult course now beginning, their political responsibility for finding a solution to the issue of Kosovo to the benefit, primarily, of all its inhabitants,the Federal Republic of Yugoslavia, but also the broader region," read a foreign ministry statement.

The foreign ministry further stressed that respect for existing borders, as well as the civil and human rights of all inhabitants of the area, according to UN and OSCE principles, is an essential condition for the normalisation of the situation.

"Greece, as a neighbouring country with special links with all other nations in the region, expresses its satisfaction with this development and reiterates its willingness to continue providing its assistance to all sides if needed," concluded the state ment.

The agreement for a meeting between the two leaders came on Wednesday, after mediation by US envoy Richard Holbrooke broke a lengthy stalemate, during which Albanian leaders repeatedly refused to meet Belgrade delegates.

US Rep.Gilman calls for more protection of Ecumenical Patriarchate

The chairman of the US House of Representatives' standing committee on international relations, Ben Gilman, addressed a letter to Turkish Prime Minister Mesut Yilmaz on Wednesday detailing concerns over continuing attacks aga inst the Ecumenical Patriarchate.

"Last year following a grenade attack upon the Ecumenical Patriarchate, which as you know was not the first such attack, I wrote the Turkish Ambassador to request that your government do everything within its power to ensure the safety and security of the Patriarch, his personnel, and property belonging to the Church," the letter stated.

"Regrettably there is an ongoing campaign in Turkey by certain individuals to attack institutions of the Orthodox Church, the most recent manifestation of which is the vandalizing and desecration of the Orthodox Cemetery of Saint Eleftherios in Istanbul ...I know that your government has expressed its strong view that acts of intolerance aimed at any religion are unacceptable.

"I would therefore very much appreciate learning of any further measures Turkish authorities plan to take to ensure that the property of the Ecumenical Patriarchate is secure, and to bring the perpetrators of these despicable crimes to justice," his let ter concludes.

Greek, Turkish journalists meeting held in Paris

An UNESCO-sponsored two-day meeting of Greek and Turkish journalistsconcluded here on Wednesday, aimed at better understanding and cooperation between the two countries, according to organisers. The promotion of peace through dialogue and communication was another goal.

A communique issued after the meeting noted the agreement of participants to create a network of information exchanges and their request that UNESCO repeat the meeting if possible before the end of the year.

Parliament approves NATO expansion bids

The Greek Parliament plenary yesterday ratified the enlargement of NATO with the accession of Hungary, Poland and the Czech Republic in a majority vote.

The membership of the three former eastern bloc countries, which were invited to join the 16-nation Alliance last year, must be ratified by all current member countries.

National Defence Minister Akis Tsohatzopoulos said that the collapse of the Warsaw Pact had left a security void in eastern Europe, while the need for joint security made necessary the expansion of NATO with the incorporation of those countries.

Pointing out the need for security in crisis spots such as the Balkans, Mr. Tsohatzopoulos said NATO, in its new form, was evolving into a Euro- Atlantic security organisation.

Simitis calls on business leaders to push harder for convergence

Prime Minister Costas Simitis yesterday called on Greek businesses to forcefully participate in the convergence struggle, take initiatives and exploit opportunities provided for them without delay.

He was speaking yesterday during a ceremony for the Athens Chamber of Commerce and Industry's (EBEA) annual awards presentation.

"The period is difficult and time is pressing," he said.

On his part, EBEA President Yiannis Papathanasiou called on the government to proceed with necessary changes without backtracking, compromises and other delays which will undermine the final outcome.

He said that the business world will support every effective structural change policy with all its strength, adding that it is an important fact that this time the government is planning to implement changes with greater boldness and determination.

Mr. Papathanasiou further said that the business world recognises with satisfaction that the country's political leadership has achieved to a great degree to improve public finances and the business action framework in the country, adding that it remains bent on the target of participation in Economic and Monetary Union (EMU).

He also expressed the desire of businesses on the existence of private universities to enable them to find specialised personnel with greater ease.

Among the awards given to Greek enterprises distinguishing themselves in various sectors are the following:

"Self-made businessman": Panayiotis Angelopoulos - Halyvourgiki (for industry) and Gerasimos Vassilopoulos - AB Super Market (for trade).

"Quality": Siemens Tileviomichaniki S.A. (a subsidiary of the German multinational).

"Natural and Labour Environment": Maxi AEBE Cocomat (industry producing ecological mattresses, headquartered in Xanthi.)

Several months ago the firm won similar recognition from the European Union for the care it shows for hygiene conditions and labour security for handicapped people as well.

"Social Responsibility": Athinaiki Zythopoiia (Amstel/Heineken), which, among others, built a model school complex in the mountainous region of Grevena.

GSEE, employers agree on two-year labour accord

The General Confederation of Workers of Greece (GSEE) and employers' organisations yesterday agreed on a new two-year national collective bargaining agre ement (EGSSE), set to be signed on Monday.

The new agreement includes a 4.7 per cent increase for 1998, which will be allocated in two installments, while for 1999 the two-installment increase is set at 2.8 per cent.

This year's first installment of 2.7 per cent will be retroactive as of Jan. 1, 1998 and from July 1 the remaining 2 per cent will be given, while in case of higher than estimated inflation - and up to 4.5 per cent - an additional increase of up to 1 per cent will be added to salaries and daily wages as of Jan. 1, 1999. Two wage hike installments of roughly 1.4 per cent each, one in January and the second in July were agreed for 1999. However, in the case of higher than estimated inflation in 1999 as we ll as in the case of higher than 4.5 per cent inflation in 1998 an additional increase will be added to salaries as of Jan. 1, 2000.

The EGSSE also includes a fifth week of paid leave beginning in 1998 for all employees who completed 15 years with the same employer or 17 years of total employment regardless of employers, while as of 1999 additional leave will be given to those who complete 12 and 14 years, respectively.

Another issue agreed upon was the medical coverage of unemployed youths up to 29, by the Employment Education Training Account (LAEK), which will be funded by both employers and the employees.

Finally, the agreement includes increased redunduncy compensations for skilled labour and educational leave.

Clarifications on monetary report

Bank of Greece Governor Loukas Papademos, making clarifications for Parliament's economic affairs committee on a monetary report he recently submitted there yesterday, offered assurances that a speedy decrease in interest rates will start in autumn.

Replying to relevant questions by deputies, he said that interest rates continue to remain at high levels in the framework of counter-inflationary policy and in the wake of the drachma's devaluation.

"With the return of inflation to its downward course in the summer, the de- escalation of interest rates will also start, which will be completed in a period of 6-10 months," he said.

Referring to inflation, Mr. Papademos said that despite repercussions stemming from devaluation, he does not believe that it will exceed 5.7 per cent and soon it will start to fall again. He said that the target is to have inflation fall to 2 per cent a t the end of 1999 and, according to all indications, during the first half of next year it will drop below 3 per cent.

On the question of the national currency's parity, he said that the drachma is already overvalued by 4 per cent against European currencies and by 6 per cent against the US dollar.

Mr. Papademos expressed satisfaction over the structural measures and flotations announced by the government since, as he said, they contribute in a positive way towards a decrease in the public debt and an increase in productivity. Commenting on Ionian Bank, he said that its privatisation constitutes the only solution because its possible merger with the Commercial Bank would lead to a wave of dismissals.

National Bank of Greece launches Romania branch

National Bank of Greece governor Theodoros Karatzas yesterday formally inaugurated a new branch of the bank in Bucharest, the Romanian capital.

Attending the ceremony were officials from Athens headquarters, diplomats, local authorities and Greek and Romanian businessmen.

The branch, which opened in February 1997, will offer standard banking services, supplemented by corporate and investment banking with the aid of global and regional specialists, Mr. Karatzas told a news conference here.

He said National Bank of Greece could expand its presence in Romania by setting up new branches, buying out local banks, or a combination of the two.

A total of 135 of the bank's customers had created joint ventures in sectors including foodstuffs, metals and construction, he said.

Taking National Bank of Greece to Romania was confidence in the country's ability to develop its economy. Short-term, opportunistic profits were not the bank's goal, Mr. Karatzas said.

In addition, National Bank's stable, long-term presence in Romania could contribute to development, he said.

Among a delegation of around 60 executives accompanying Mr. Karatzas to Bucharest were representatives of Germanos, Sato, Bauxites Parnasse, Axon, Loulis Mills, Petzetakis, Hellenic Technodomiki, Alte, Avax and Edrassi- Psalida.

National Bank of Greece has one branch each in the capitals of Bulgaria, Albania and Romania.

It plans to set up its first in Belgrade, and another two in Albania - in Durres and Corce.

Creation of the two new Albanian branches, scheduled for 1998, would make National Bank of Greece the largest foreign bank in the neighbouring country.

National Insurance, a member of the banking group, has set up an insurance company in Bucharest called Garanta Hellenic-Romanian Insurance Co.

The firm, which was created with local financial companies, has a share capital of one million dollars, due to rise to three million dollars next year.

Expected to help finance the share capital increase is the International Finance Corporation.

Drachma hits record high since ERM entry

The drachma strengthened again yesterday versus most foreign currencies in the domestic money market. The Greek currency rose to its highest level against the Ecu since a 13.8 percent devaluation on March 14 to ease entry into the European Union's exc hange rate mechanism on the same day.

Yesterday, the drachma finished at 340.62 to the Ecu at the central bank's daily fix, up 0.41 percent on the previous day.

The drachma was also up 0.56 percent against the US dollar and 0.26 percent higher to the DMark.

The national currency was 1.29 percent up against the pound sterling following a sharp decline the UK currency posted in international markets.

WEATHER

FOREIGN EXCHANGE

(L.G.)

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