Cyprus News Agency: News in English (PM), 98-11-11

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] Cyprus Stock Exchange

[02] Israel - Cyprus

[03] Israel - Ambassador - Cyprus

[04] Kasoulides - arrival - statements

[05] Kasoulides - Israel

[06] Employers - Annual meeting - President Clerides

1540:CYPPRESS:01

[01] Cyprus Stock Exchange

      CSE General Index                          90.22 ( 0.09)

      Traded Value            CYP 1,606,931

      Sectural Indices

      Banks                   CYP   451,622     103.57 ( 0.01)
      Approved Investment
      Companies               CYP   206,626      60.24 ( 0.89)
      Insurance Companies     CYP   271,792      67.68 (-0.78)
      Manufacturing Companies CYP   314,853      89.31 ( 0.65)
      Tourism Companies       CYP    42,331      68.66 (-0.77)
      Trading Companies       CYP    57,021      43.59 (-1.31)
      Other Companies         CYP   107,869      85.37 ( 2.92)

CNA MM/1998

ENDS, CYPRUS NEWS AGENCY

1650:CYPPRESS:02

[02] Israel - Cyprus

"Following a thorough investigation and clarification conducted since the arrests, I can declare that the two Israelis arrested in Cyprus did not act against Cyprus nor on behalf of Turkey, in any manner," a statement by the spokesman of the Israeli Foreign Ministry said today.

The statement also clarified that press reports "published regarding the claim that Israel has been spying on Turkey's behalf in Cyprus are not based on fact."

Any further steps that may need to be taken in this manner will take place through the appropriate channels, the statement adds.

It notes that the friendly relations expressed in many ways, and in the recent visit of the President of the state of Israel to Cyprus, will continue and will be strengthened.

The statement came amid severe criticism of statements by the Israeli Premier that he would bring back home the two Israelis, Yigal Damary and Udi Hargov, who were arrested last Saturday in the fishing village of Zygi, on the southern coast.

Police found in their apartment scanners tuned into the police radio frequency and they were seen loitering under suspicious circumstances near National Guard camps.

On his part, Government Spokesman Christos Stylianides said of the statement "this is a statement of the Israeli Foreign Ministry. The Cyprus government insists on the legal procedure and the laws of the state."

He reiterated the view that investigations should be completed and then it is up to the Attorney General to proceed on the basis of the legal procedures enshrined in the Constitution.

CNA MM/MCH/1998

ENDS, CYPRUS NEWS AGENCY

1910:CYPPRESS:03

[03] Israel - Ambassador - Cyprus

In response to a question on a statement issued by the Spokesman of the Israeli Foreign Ministry earlier today, Ambassador Tzur stated in a written statement that "neither the integrity nor the ability of the Cyprus authorities were in doubt or have ever been doubted".

He also stressed that "it never was, nor is it now, Israel's intention to intervene or hinder the investigation" and added that "all steps required to bring this matter to a conclusion will be done through the appropriate channels".

Tzur's comments came after this morning's statement that the two Israelis arrested in Cyprus "did not act against Cyprus nor on behalf of Turkey in any manner" following a "thorough investigation and clarification conducted (in Israel) since the arrests."

The Israeli Ambassador stated that "Israel stresses once again that neither in the past, nor at present have Israeli citizens been used to harm Cyprus, by passing information on or about this country to any third country, including Turkey".

CNA RM/MM/1998

ENDS, CYPRUS NEWS AGENCY

1930:CYPPRESS:04

[04] Kasoulides - arrival - statements

Speaking on arrival from Brussels, where he attended the opening of substantive accession talks, Kasoulides quoted his Austrian counterpart, who presides over the EU, saying that "nothing can stop Cyprus' accession course".

Kasoulides stressed that "it is obvious that the course will proceed until the end of the road of accession negotiations", pointing out at the same time, however, there can be no guarantees that there would be no difficulties.

Kasoulides described a joint statement by France, Germany, the Netherlands and ˆtaly that a political solution to the division of Cyprus must be found as the only way to resolve problems that would arise in the country's accession course as a "warning".

He said the Cyprus government is aware of the difficulties posed as a result of the division of the island, but pointed out that the EU should turn to Turkey, which is the cause of the problem, and demand that it complies with UN resolutions.

The EU should also make clear to Turkey that it has no right to veto Cyprus' accession to the EU, he added.

"We do not have nor have we ever had any blank cheques" that all EU member-states would back Cyprus' accession all the way, Kasoulides said, expressing the conviction that "if the accession course proceeds and the Cyprus problem remains unresolved Cyprus will join the Union".

Asked to comment on a reference in the European Commission Regular Report on Progress towards Accession, to the Russian anti-aircraft missile system S300 Cyprus has purchased, Kasoulides said this was the assessment of the Commission and it is being looked into by the government.

According to the report "the delivery of these missiles has been delayed on a number of occasions, most recently until spring 1999".

The Foreign Minister said the National Council (top advisory body to the President on the Cyprus problem) decision with regards to the Russian missiles still stands for the time being.

Any decision on the matter, he explained, should be taken by the National Council and pointed out that the government does not intent at the present to make any new proposals.

According to the National Council decision the missiles will not be deployed if there is substantive progress towards a Cyprus settlement or the demilitarisation of the island.

"There have been no developments which could lead the government towards this direction," he added.

Asked whether Cyprus' accession course could be affected as a result of the S300, Kasoulides replied, "no-one can exclude anything," pointing out that despite re-assurances given by different countries "we are often faced with surprises".

The Commission's report remarks that "serious concerns have been expressed, including by a large number of EU member states, regarding the consequences of the possible deployment of the missiles on the search for a peaceful solution to the Cyprus question".

CNA MAN/MCH/MM/1998

ENDS, CYPRUS NEWS AGENCY

2000:CYPPRESS:05

[05] Kasoulides - Israel

Kasoulides refrained from commenting on the case of alleged espionage by two Israelis being investigated by the Police, saying he needed to be briefed more extensively on the issue.

The minister has been abroad for the past ten days. Yesterday he was in Brussels to attend the opening of substantive accession talks between the European Union and Cyprus.

Asked whether ties with Israel would be affected, should the two detainees prove to be Israeli agents or whether this would be regarded an isolated incident, Kasoulides said "even an isolated incident has its own repercussions."

The arrest of the two Israelis has sparked much speculation in Cyprus and Israel. The two were arrested last Saturday, when police raided their flat, after a tip off, and found in their possession two scanners, one of which was tuned into the police radio frequency.

CNA MAN/MCH/MM/1998

ENDS, CYPRUS NEWS AGENCY

2040:CYPPRESS:06

[06] Employers - Annual meeting - President Clerides

Clerides was addressing the annual general meeting of the Cyprus Chamber of Commerce and Industry (KEVE), the island's largest employers' organisation.

With the launch yesterday of Cyprus' substantive EU accession negotiations, its accession course reached a crucial stage, Clerides noted, adding that both the public and private sectors should be seriously committed to raising the island's competitiveness, in view of stronger competition within the EU.

Referring to the island's industry, he pointed out it is in the government's intentions to review the industrial policy, noting drastic measures aiming at boosting the sector will be formulated.

Clerides said the Cyprus Tourism Organisation (CTO) has prepared a ten- year plan to upgrade the island's tourist product, adding that the sector earns 20 per cent of Cyprus' GDP.

He referred to another goal of the government which is to boost exports, pointing out that this year the state will spent 3,2 million Cyprus pounds in subsidies (one Cyprus pound is trading at 2,0 US dollars).

On his part, KEVE President Vassilis Rologis described November 10th 1998 as an historic day for the island as yesterday marked the launch of Cyprus' substantive EU accession talks.

Rologis said Cyprus' accession to the EU will affect positively the developments concerning the island's political problem and at the same time strengthen its economy.

Stressing that the way to the EU "is not easy", he called for collective decision-making during the island's harmonisation process with the acquis communautaire.

He also expressed employers' gratitude to President Clerides and the Greek Prime Minister Costas Simitis for their efforts to secure the island's EU accession, adding that "we, at KEVE, were the first to promote Cyprus' accession" to the EU.

Referring to the economy, Rologis called for a smaller public sector and lower wages for civil servants, as around 50 per cent of the state Ordinary Budget goes to their wages.

He also called for incentives with the aim to boost manufacturing, which, he said, is in crisis for more than a decade.

Cyprus along with Slovenia, Estonia, Hungary, Poland and the Czech Republic started substantive accession negotiations with the EU yesterday November 10.

CNA GG/MM/1998

ENDS, CYPRUS NEWS AGENCY

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