Yugoslavia's Foreign Minister Milan Milutinovic voiced the hope yesterday that NATO would not resume air strikes in light of an on-going Bosnia Serb withdrawal of their heavy artillery from around Sarajevo.
"I do not foresee the resumption of NATO strikes because the (Bosnian Serb) withdrawal of heavy weapons from around Sarajevo is (currently) in process," Mr. Milutinovic said after talks with Prime Minister Andreas Papandreou and Foreign Minister Karolos Papoulias in Athens.
Mr. Milutinovic said the issue of the Former Yugoslav Republic of Macedonia (FYROM) was not discussed at his meetings. He added, however, that Belgrade's position was steadfast in that any progress on the issue of FYROM being recognized by New Yugoslavia would take place after negotiations between Greece and FYROM were concluded.
Government officials said the meeting, requested by Mr. Milutinovic, focused on latest developments in the Yugoslav crisis after the signing of a US-sponsored accord between the foreign ministers of Serbia, Croatia and Bosnia.
Speaking to reporters after the meeting, Mr. Papoulias voiced "guarded optimism" on the success of the Bosnia peace process and reiterated opposition to military solutions to the Yugoslav crisis.
The minister added that the European Union had been side-lined by Washington's high-gear diplomatic drive to resolve the Yugoslav crisis.
After the talks, Mr. Milutinovic left for Paris where he was invited by French President Jacques Chirac for talks.
President of the Republic Kostis Stephanopoulos will visit the United States next month, it was announced yesterday.
The focus of his stay will be his address to the United Nations General Assembly on October 23.
During his week-long visit, starting October 17, Mr. Stephanopoulos will give a lecture at Boston's Harvard University and attend a reception which Greek Ambassador to New York, Lucas Tsimas, will hold in his honor.
Industry was slightly more confident about the business climate in June, as output rose by 1.2 per cent against the same month last year, according to figures released yesterday.
The business expectation indicator increased slightly in June (121 units) compared to May (116.4 units) and was at a higher level than the corresponding period last year (116.4 units), according to the latest issue of "Economic Conjuncture", published by the Economic and Industrial Research Institute (IOBE).
According to IOBE, local industry greatly believes in recent months that production activity has not been faced with any obstacle, neither regarding demand nor supply. The main negative aspects, however, continue to be inadequate working capital and demand.
Competitiveness in the second quarter of the year shows that most enterprises believe it has remained unchanged (or marginally improved) as against the first quarter of the year. IOBE concluded that a strong nucleus of Greek enterprises is operating without any hindrance and is continuously widening.
However, nine out of 10 businesses foresee stagnation in employment in coming months, but inflationary expectations are clearly declining in Greek industry since three out of four businesses foresee stabilization of prices at current levels.
Meanwhile, the National Statistics Bureau, ESYE, said the rise in industrial production was due to increases in the production of tobacco, wood-cork, chemical products, electrical appliances and machinery, and transportation means, despite declines in foodstuffs, textiles, plastics, oil byproducts and coal. It also said the index for mining production fell by 6.3 per cent in the same period.
Main opposition New Democracy party leader Miltiades Evert yesterday urged Greece's European Union partners and the US not to extend recognition to the Former Yugoslav Republic of Macedonia (FYROM) under any other name before the issue is resolved.
Athens and Skopje signed an interim accord to normalize relations between them in New York last week.
According to the accord, Skopje must eliminate the Vergina star, an ancient Hellenic symbol, from its flag and change the preamble of its constitution expressing irredentist designs against Greece. But an important difference, the Skopje name issue, remained unresolved after the signing of the agreement.
According to ND spokesman Vassilis Manginas, Mr. Evert urged in letters to EU leaders and US President Bill Clinton that "until the name issue is definitively resolved", they should "in no instance proceed to recognition of Skopje, at bilateral and multilateral level, under any name other than the temporary name of FYROM".
Mr. Evert further outlined his party's positions on the issue, explaining the reasons why ND endorsed a comprehensive negotiation, known as the "large package".
Mr. Manginas also called on Prime Minister Andreas Papandreou to raise Greece's national issues at the forthcoming EU informal summit in Mallorca, specifically, the FYROM name issue, the Cyprus problem and Cyprus' accession to the EU. He also said Mr. Papandreou should aim at advancing the common foreign and defense policy during the EU summit.
Meanwhile, in Skopje, an ANA dispatch quoted European Commissioner Hans van der Broek as telling FYROM state television that "a great part of Greek-Skopje differences has been resolved." "The accord," he said, "constitutes a good basis for the complete solution of problems, including the name, which remains to be negotiated between the two countries."
The EU commissioner also made reference to the Greek trade sanctions, saying that "as long as Greece will proceed with its lifting, the European Court is likely to withdraw charges against Greece." "In theory, however, both Greece and the European Commission will pursue a final verdict on the issue to serve as legal precedent for similar cases in the future," he added.
Greece imposed trade sanctions against Skopje to force it to change its name, flag, and constitution. The European Court is due to give its verdict this month.
Reports in the Skopje daily "Nova Makedonija" said that the European Court might discuss the issue today. The paper also reported that the flag issue will be referred to Parliament for final discussion on October 5.
On Tuesday, the newspaper disclosed that the government in Skopje was planning to initiate procedures to remove the Vergina star from the country's flag. According to the newspaper, the most likely symbol to replace the Vergina star will be a golden rising sun against a red backdrop.
Referring to the resignation of Turkish Prime Minister Tansu Ciller yesterday, main opposition New Democracy party spokesman Vassilis Manginas expressed the hope developments in Turkey would not worsen bilateral relations further. Mr. Manginas said the same applied to the process of resolving the Cyprus issue as well as Turkey's necessary course towards its democratization.
Foreign Minister Karolos Papoulias said relations between Greece and Turkey were discussed in a meeting between him and the prime minister yesterday, in light of his meeting with his Turkish counterpart in New York next week.
He added that the sole international issue left open in relations between the two countries was the continental shelf issue which could be settled at the International Court at The Hague.
He categorically denied accusations that Greece was being pressured or would be pressured by the US to make concessions in relations with Turkey, letting it be understood that he doubted what had been said about relevant interventions and effectiveness by US Assistant Secretary of State Richard Holbrooke and linking the issue to Mr. Holbrooke's interventions in the Bosnian crisis.
Turkey's Foreign Minister Erdal Inonu yesterday said Greece's problems with Turkey could only be resolved through dialogue.
Referring to his forthcoming meeting with Greek Foreign Minister Karolos Papoulias, Mr. Inonu said: "No progress has been noted in prior meetings, yet I wish this time there will be progress." "Our problems with Greece remain," Mr. Inonu said, "yet we believe in the virtues of dialogue. Greece, however, does not express the political will."
Describing as an "important development" the Greek Parliament's ratification of the International Convention on the Law of the Sea, Mr. Inonu said: "It is clear that any unilateral decision, which would limit the open seas in the Aegean, can not be accepted." "It will be to the benefit of both countries if the Aegean sea was converted to a sea of peace," he added.
Regarding the Cyprus problem, the Turkish minister said the island's EU accession would not aid the search for a settlement to the problem. "Such a development would overturn the balance between Greece and Turkey," he added.
Speaking on the joint defense zone between Greece and Cyprus, Mr. Inonu reiterated Turkey's opposition, saying "it is not possible to accept the establishment of an air and naval base in Paphos (Cyprus)." He stressed that such a development "is contradictory to the international agreements on Cyprus."
"The establishment of bases puts obstacles to efforts for a settlement and perpetuates the partition," he said. "I hope this scheme is not implemented, or there will be an issue of retorsion measures," he added.
He called on the European Parliament to ratify an EU-Turkey customs union, signed in Brussels on March 6, and due to become effective on January 1, 1996. "We expect the European Parliament will reach a favorable decision," Mr. Inonu said, adding that Turkey's incorporation into Europe will serve the interests of both parties. "A favorable result of the vote in the European Parliament will constitute a turning point in relations between Turkey and the European Union," he said.
Speaking to the Athens News Agency (ANA) in Strasbourg yesterday, Spanish Eurodeputy Carlos Gonzalez Carnero, who is preparing the report on the customs union between the European Union and Turkey, said he thought time was running out for Turkey to change the European Parliament's attitude. "It is difficult for the majority in the European Parliament to change its opinion of Turkey unless factors change very soon," Mr. Carnero (United Left) said.
Mr. Carnero, who recently returned from a visit to Ankara for talks with the Turkish government, recognizes constitutional reforms started in Turkey as a "step forward" but considers them "inadequate."
"We are expecting gestures from (Turkish Prime Minister Tansu) Ciller who has given us promises. In any case she will be meeting (European) Union President (and Spanish Prime Minister) Felipe Gonzalez in October. And of course a promise that the controversial article contained in the anti-terrorist law will be abolished in January is not enough for us. I personally believe that our Parliament should either give or not give its agreement for customs union in December and no later," Mr. Carnero said.
The European Parliament, the European Union's only directly-elected body must ratify the customs union before it can be implemented. The assembly has been critical of Turkey's human rights record.
"They all welcomed me with enthusiasm. From President Demirel down to the last deputy. They spoke to me about the problem with terrorism. And I am totally opposed to terrorist acts. However, it is unacceptable in a democracy for terrorism to be confronted with human rights violations," he added.
Mr. Carnero said the European Parliament wanted the deepening, widening and improvement of democracy in Turkey, because disappearances and torture did not befit democratic countries cooperating with Europe.
"An abuse of powers is taking place. A new rapprochement is necessary which will rule out the military settlement of the Kurdish issue," he said.
National Defense Minister Gerassimos Arsenis will be in the United States on October 5 to take part in the NATO foreign ministers meeting, chaired by NATO Secretary-General Willy Claes.
National Defense General Staff Chief, Admiral Christos Lymberis is also due to attend the NATO sessions.
Mr. Arsenis will visit Washington on October 10 as a guest of US Defense Secretary William Perry, going on to New York on October 12 for a two-day visit before leaving for Athens on October 14.
Prior to his Washington visit, Mr. Arsenis will visit Sacramento, Los Angeles and Boston.
National Economy Minister Yiannos Papantoniou will visit Washington on October 9-12 in order to participate in the annual working session of the World Bank and the International Monetary Fund which will run October 4-12 .
During his stay, Mr. Papantoniou is expected to attend a dinner held in his honor by the Greek embassy during his visit.
He is also expected to visit New York to attend an event organized by US and Greek community businessmen.
President Kostis Stephanopoulos was briefed by the National Defense Ministry's political and military leadership yesterday on the annual armed forces two-phase exercise "Parmenion '95", due to end tomorrow.
One phase of the exercise will take place in the Aegean tonight and end in Hios at dawn tomorrow.
This phase will be watched by National Defense Minister Gerassimos Arsenis, initially from a Navy frigate and afterwards from an observation post.
The other phase will be carried out in the Evros region tomorrow morning and will be watched by National Defense Undersecretary Nikos Kouris.
An Amnesty International report due to be released today notes that the human rights situation in Turkey has taken a turn for the worse in past years, despite promises by the Turkish government for reforms.
Amnesty International, however, considers as a positive step the fact that many members of the Turkish government are beginning to recognize the extensive use of torture in Turkish prisons. According to the report, the Turkish authorities have the means and the power to proceed with reforms in order to effectively deal with human rights violations.
"The close monitoring" of the situation will continue by the European Union and inter-state organizations, the report said.
It added that it hoped Turkey "in view of its customs union with the EU will proceed to substantial reforms."
Trade sector representatives of western Greece and Torun in Poland began a three-day meeting on commercial exchanges yesterday in Patra.
A protocol of intention for cooperation will be signed during the meeting by Western Greece Regional Secretary-General Vassiliki Morialou and the Torun Prefect.
The Polish delegation, currently in Greece at the invitation of the Western Greece Secretariat General, will also hold meetings with business representatives of Western Greece on issues concerning culture, sports, tourism, education and special training , research and technology as well as trade.
Consumer and foreign exchange loans to enterprises constituted the focal point of business and consumer interest over the January-July period.
According to official data provided by the Bank of Greece, loans given to the private sector (enterprises and private citizens) increased by 695.7 billion drachmas during the above period. The financing of the public sector increased 354.1 billion drachmas over the same period.
Analytically, all loan categories funding private citizens (consumer, personal loans and credit cards) increased 82.3 billion drachmas over this period (35.2 billion drachmas last year).
Most new loans were given to consumers wanting to finance the purchase of specific items. On the other hand, consumers are restricting the use of credit cards. During the January-July 1994 period, loans with credit cards increased 23.2 billion drachmas whereas the corresponding increase this year was 10.8 billion drachmas.
Hundreds of yachts will take part in the first-ever Greek sea tourism festival at the island of Poros, October 27-29, Greek officials said yesterday. "The festival is part of efforts to develop Greece's sea tourism and to build a new profile for the country's tourism," Tourism Minister Nikos Sifounakis said.
He said the festival, organized by the Hellenic Yacht Owners Association, would become an annual event on Poros, which, according to Greek mythology, was the home of Poseidon, god of the sea.
Mr. Sifounakis said the festival's 150-million-drachma cost would be covered by sponsors and is supported by Greek President Kostis Stephanopoulos. Greece has the largest professional yachting fleet with 4,000 vessels.
Athens is the "capital" of unemployment according to a survey by the Athens Labor Centre (EKA) released yesterday to mark EKA's 28th conference. The registered unemployed in the Attica prefecture reached 11.9 per cent in 1994, compared to a national aver age of 9.4.
Women continue to have a high rate of unemployment (17.4 per cent) and the percentage of youth unemployment was estimated at 31.9 per cent.
EKA has organized a one-day conference for September 27, with the participation of government officials, political parties and local authorities, which will form the basis for a proposal "for viable development in the Attica basin".
A contract concerning the construction of the natural gas installations project on the island of Revythousa was signed at the Public Natural Gas Enterprise (DEPA) on Tuesday.
The agreement was signed by President Christos Verelis and General Director Spyros Palaioyannis on behalf of DEPA.
The project, to be completed in 32.5 months from now, was awarded to the Sofrega-Tecniga Z-Techniki Enosi joint venture.
Six hundred million cubic meters of natural gas a year will be imported from Algeria through the Revythousa station and converted into gas.
More than 50 US businessmen and senior executives of major Greek and US companies began crucial talks here yesterday on joint investment initiatives in Greece and neighboring countries.
The 22 American businessmen, 10 Greek representatives of American multinationals and 22 Greek entrepreneurs comprise the informal Greek American Business Council set up a year-and-a-half ago.
Addressing the opening session of the two-day meeting, National Economy Minister Yiannos Papantoniou outlined the potential of the Greek economy and urged businessmen to "move ahead" with their plans "which will contribute to stability in the region".
US Ambassador in Athens Thomas Niles, who was instrumental in setting up the council, addressed a greeting to the delegates, as did the prime minister's economic advisers Louka Katseli and Tassos Yannitsis, and National Economy Ministry Secretary-General for international economic relations George Kandalepas.
The American companies represented at the meeting include Alico, Bank of America, Bechtel, AT&T, Chase Manhattan, Philip Morris, Motorola, Texaco, Mobil, Procter & Gamble, Delta Airlines, and Lehman Brothers.
The businessmen on the Greek side include Kostas Boutaris, Socrates Kokkalis, Gina Mamidaki, Athanassios Lavidas, V. Vernicou, Nikos Efthymiades (president of the Federation of Industries of Northern Greece), Th. Liakounakos and Prodromos Emfietzoglou.
Informed sources said the investment interest is focusing on infrastructure projects in telecommunications, informatics, foodstuffs, the agro-industry and construction.
The Greek side is particularly interested in attracting investment activity to northern Greece and Thrace and in turning the area into a springboard for cross-border business cooperation in the Balkans.
The same sources said that the expected normalization of relations between Athens and Skopje following the recent interim agreement signed in New York "creates a particularly auspicious conjuncture" for the conference.
According to US figures, American investments in the industry and services sector in Greece are today estimated at 1.2 billion dollars, accounting for nearly a quarter of total foreign investments in Greece. The Greek chapter of the Council is headed by Athanassios Lavidas, while the American chapter is headed by Alex Spanos.
The Hellenic Fuel and Mineral Oils Group (EKO) will create a joint fuel distribution company in Georgia with the state Saknaftoprodukti company.
A relevant trade agreement was signed in Tbilisi by the company's commercial director Mr. A. Petrianitis, exports director Mr. V. Topaloglou and members of the company in Georgia as well as local businessmen participating in the partnership.
According to the agreement, a network of fuel stations will be developed by the EKO GEORGIA company immediately to distribute liquid fuel, products of the EKO group will be distributed in Georgia and activation in the liquid gas, aviation fuel and shipping sales sectors will take place in the future.
Parliamentary Vice-President Panayiotis Kritikos will this morning receive 20 Russian and Ukrainian deputies, researchers and university professors participating in a programme on the development of relations between former Soviet Union countries and EU member-states, supported by the Hellenic Productivity Centre (ELKEPA) and the Mediterranean Research Foundation.
Patriarch Pavle of Serbia was due to arrive in Athens yesterday to officiate at a mass in the Church of Zoodohou Pigis. After the mass, he will meet with Archbishop Serapheim of Athens and All Greece.