A.N.A. Bulletin, 29/09/95

From: "Greek Press & Information Office, Ottawa Canada" <grnewsca@sympatico.ca>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 702), September 29, 1995

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Gov't denies reports of 'package solution' for Greek-Turkish 'differences'

The government yesterday categorically denied the existence of a so-called "package solution" for the settlement of Greek-Turkish "differences".

Commenting on US Assistant Secretary of State Richard Holbrooke's professed interest in promoting solutions to Greek national issues and to the protracted Cyprus problem, government spokesman Telemahos Hytiris said the government was trying to "exploit all declared interest in order to promote its national issues". "What is of interest to the Greek government is the promotion of (Greece's) national issues, and it is doing this within the prevailing international climate," he said.

On Tuesday, Mr. Holbrooke told a meeting in Washington that he considered the Cyprus issue to be his next priority after the Bosnian issue. He also said the US was "extremely interested" in promoting solutions to all Greek national issues and the state of Greek-Turkish relations.

Mr. Hytiris reiterated Greece's standing position that the Cyprus issue was the number one priority for Athens and that the development of Greek-Turkish relations depended on progress. "The US has expressed interest in finding a solution to the Cyprus problem but one should not identify Greek positions with any efforts being made by the US side," he said.

In New York where he is attending the UN General Assembly, Foreign Minister Karolos Papoulias will meet with his Turkish counterpart today. Greece says that the only "difference" it has with Ankara is the delineation of the continental shelf; Turkey has refused to allow the International Court at the Hague to rule on the dispute.

In Athens, Mr. Hytiris also excluded any discussion on the state of Greek-Turkish relations during Mr. Papoulias' meeting with Turkish Foreign Minister Erdal Inonu. "The meeting is simply routine since Mr. Inonu is only an acting foreign minister," Mr. Hytiris added.

[2] Inonu speaks at UN

Meanwhile, in his address to the UN General Assembly late Wednesday evening, Mr. Inonu referred to Greek-Turkish relations as well as peace efforts in former Yugoslavia. "As a Balkan country, Turkey strongly supports a just and viable solution to the Bosnian issue through negotiations," Mr. Inonu said.

Referring to Skopje, Mr. Inonu said Turkey always supported the view that "stability of 'Macedonia' is a necessary prerequisite for peace and stability in the Balkans." He said that economic sanctions against Skopje "together with a policy to isolate it from the international community, have been utterly unjust and unjustified."

Mr. Inonu said Turkey welcomed the recently-signed interim accord between Athens and Skopje. "We are encouraged by this development, which promises to be the key to normalization of relations between the two neighboring states," he said.

Stressing that it is "unacceptable" for two neighboring states to face bilateral problems, Mr. Inonu expressed his conviction that "bilateral problems between Greece and Turkey could be overcome with a serious, effective dialogue on all issues, which will be characterized by mutual good will." "Such a dialogue," Mr. Inonu said, "will serve not only the interests of both countries, but will also contribute to the formation of a climate of peace, stability and prosperity in the region." "We are prepared to discuss, with the desire to be constructive, all unresolved issues between us," he added.

Turning to the Cyprus issue, the Turkish minister expressed regret at the lack of progress concerning the confidence-building measures (CBM) process.

[3] Opposition reactions

Political Spring leader Antonis Samaras yesterday accused the government of being guilty of "unacceptable concessions" to the US. Claiming that the US had attempted to force the cancellation of the joint defence doctrine between Greece and Cyprus, Mr. Samaras said the concessions had begun with the Skopje issue.

"We had warned the government that the US pressures will be apparent in the entire fabric of our national issues and we had stressed that conceding on one issue would whet their appetites for more," he said. "Finally, someone must tell the Americans that Greece is not disposed to sacrificing its rights to the altar of US-Turkish relations," he said.

Coalition of the Left and Progress leader Nikos Constantopoulos said Mr. Holbrooke's statements on Tuesday "made it self-evident why the government and Prime Minister Andreas Papandreou did not want the establishment of foreign policy council." "It is simply because (the government) has handed over foreign policy to the USA," he said.

[4] Auction of state titles brings in 422 billion

The Finance Ministry's auction of state titles brought in 422 billion drachmas for the state yesterday. Banks bid 250 billion drachmas to purchase seven-year titles, 41 billion drachmas for five-year titles, 26 billion drachmas for three-year titles and 105 billion drachmas in the domestic money market.

The interest rate was set at 14.2 per cent. The ministry considered this interest rate satisfactory since interest rates for treasury bills at the previous auction had reached 14.25 per cent. Ministry sources said state reserves were high and that authorities would have called off the auction if interest rates were not deemed to be satisfactory.

The state's borrowing needs following the auction is expected to decrease by 400 billion drachmas. Inter-bank interest rates vary between 14 per cent and 15 per cent, at the moment, while liquidity remains high.

The Bank of Greece insists that a speedier reduction in interest rates is not necessary because it could lessen interest in the drachma. Falling interest rates also lead to an increased demand for loans, evident in the increased extension of credit at levels higher than those set by the monetary authorities. At the same time, rising consumer lending contributes to inflationary pressure and to an increase in imports, evident in the latest figures on the trade deficit.

The increasing demand for consumer loans noted this year, although still small compared to the total amount of lending, has prompted many banks to urge the Greek Bank Union to agree to implement an inter-bank electronic co-operation system so as to better vet creditworthiness. Banks also have to work together to prepare a "black list" of bad debt customers.

[5] Arsenis meets Niles

National Defence Minister Gerasimos Arsenis yesterday held a meeting with US Ambassador to Athens Thomas Niles focusing on the issue of the operation of NATO headquarters in Greece. The issue will also be discussed during the informal NATO defence ministers' meeting in the US in the coming week.

[6] European Parliament freezes credits to Turkey

The European Parliament's Foreign Affairs Committee yesterday froze credits anticipated for Turkey in 1996, in line with a proposal by PASOK Eurodeputy Yiannis Roubatis, the representative for the European Union's 1996 budget.

The credits - amounting to 322 million ECU and destined for the implementation of customs union between the EU and Turkey - were frozen on the grounds that the prerequisites of Turkey's respect for democratic principles included in the European Accord on human rights, clauses governing a state of law and respect for clauses of international law had not been satisfied.

Lastly, the Foreign Affairs Committee approved special economic aid amounting to 50 million ECU to support all new refugees in former Yugoslavia without discrimination.

[7] Ankara denies reports of change in policy on Cyprus

Ankara yesterday refuted Turkish press reports reporting a change in the government policy on the Cyprus issue. "These allegations do not reflect the reality," foreign ministry sources said. "There is no change to the known Turkish position."

The Hurriyet and Gumhurriyet newspapers yesterday reported the existence of a "Ciller secret plan for Cyprus," according to which Turkey will accept Cyprus' accession to the EU in return for a set timetable for an EU-Turkey accession.

According to the newspapers, Turkish Alternate Foreign Under-secretary Inal Batou allegedly conveyed the contents of the "secret plan" to the Turkish Cypriot leadership when he visited northern Cyprus earlier in the month.

[8] Greece, Iran, Armenia agree to regular contacts on regional issues

Foreign Minister Karolos Papoulias said yesterday that Greece, Iran and Armenia had agreed to establish regular half-yearly meetings to deal with regional issues. Mr. Papoulias was speaking after a working breakfast with his Armenian and Iranian counterparts yesterday morning on the sidelines of the UN General Assembly.

After meeting Croat Foreign Minister Mate Granic, Mr. Papoulias indicated that for the first time a specific prospect was looming for peace in former Yugoslavia, adding that his Croat counterpart appeared quite optimistic. Late on Wednesday, the Greek foreign minister described peace efforts in Bosnia as promising, but said that balances in the region were fragile and several problems were still outstanding.

Speaking at a press conference after separate talks with his Bulgarian and Romanian counterparts, Mr. Papoulias said: "As Balkan countries, Greece and Bulgaria have direct interest in an end to the hostilities and the success of the peace process. Both countries support these efforts, and I believe that Greece and Bulgaria are playing a significant role."

Mr. Papoulias recalled that Athens and Sofia had undertaken initiatives to receive compensation for losses sustained as a result of the UN embargo on the Federal Republic of Yugoslavia. He described his talks with Bulgarian counterpart Georgui Pirinski as "very successful" and said that Greek-Bulgarian co-operation was of benefit not only to the Balkans but also Europe. "We are two countries with social stability, but also economic difficulties which we are trying to overcome," Mr. Papoulias said.

Asked about the construction of a bridge across the Danube River, Mr. Papoulias said the project was discussed during a tripartite meeting recently in Ioannina since it fell within the broader plans for the development of road axes and communications with EU assistance. He said Greece, Romania and Bulgaria were pushing the project forward "and I hope a solution will be found soon."

Mr. Papoulias also met with French Foreign Minister Herve de Charette on the sidelines of the UN General Assembly meeting.

[9] Gov't satisfied with outcome of FYROM's CoE accession

Press Minister Telemahos Hytiris yesterday expressed the government's satisfaction over the accession of Skopje to the Council of Europe under the name "Former Yugoslav Republic of Macedonia" rather than "Republic of Macedonia." Intense efforts by the Greek delegation at the Council of Europe's Parliamentary Assembly averted the neighboring country's accession Wednesday under the name "Republic of Macedonia."

In a letter yesterday to Vasso Papandreou, head of the Greek delegation, Alternate Foreign Minister George Romeos congratulated the delegation on its "victory." Mr. Romeos said that the development strengthened Greece's negotiating position prior to talks between Athens and Skopje on the issue of the neighboring state's name.

Meanwhile in Canada, Prime Minister Jean Chretien yesterday pledged that Ottawa would not change the status quo towards the government in Skopje "prior to the official effectiveness of the Greece-FYROM interim accord. Mr. Chretien made the commitment to Greek ruling party PASOK deputy and Secretary of the Overseas Greeks Department Vassilis Yeranidis on the sidelines of Mr. Yeranidis' informal visit to Ottawa yesterday. The Canadian prime minister also stressed the good state of relations between the two countries, as well as the contribution of the Greek-Canadians to Canada.

[10] PASOK youth group files suit against Avriani

The ruling PASOK party's youth wing yesterday filed a suit with the public prosecutor against the Athens daily "Avriani" over a series of photos published by the newspaper showing the wife of Prime Minister Andreas Papandreou, Dimitra, sunbathing on an island holiday ten years ago. The suit was filed by the secretary of the PASOK youth wing, Dionysis Kalogeropoulos, with Public Prosecutor Miltiades Andriotelis. The suit alleges that the publication of the photos is part of a plan "to degrade public life... vulgarize public dialogue and thus lead to the disruption of political life."

According to the suit, the publication of the photos falls under the obscenity law constituting an offence against public decency. It also maintains that the photos are tantamount to the proceeds of a crime, since they were stolen and the perpetrators acted out of self-interest. The complaint proposes as witnesses the President of the Athens Bar Association, Takis Pappas and journalist Liana Kanelli. The public prosecutor is expected to decide today whether to initiate criminal proceedings against the newspaper on the basis of the complaint.

[11] Gov't 'astonished' at reports of Simitis investigation

The government yesterday expressed its astonishment at press reports regarding a judicial inquiry of former industry minister Costas Simitis over the slow absorption of Community funds for the construction of a natural gas pipeline.

Government spokesman Telemahos Hytiris expressed wonder at a press report claiming that prosecution proceedings had been initiated against Mr. Simitis on grounds "that Community funds had been lost". Mr. Hytiris said the government was not aware of whether such an order had been given, adding that in no way was the government involved in the issue and backing Mr. Simitis in saying no money had been lost.

Anastasios Peponis, who took over the industry portfolio when Mr. Simitis resigned earlier this month, said his predecessor's time at the ministry was "characterized by transparency, responsibility and results".

In Brussels, European energy commissioner Christos Papoutsis said he was surprised at reports in the Athens daily 'Adesmeftos Typos' that Mr. Simitis was being charged in connection with the natural gas project. He said he had never criticized the government or Mr. Simitis, whose "ethics and integrity" he values absolutely and that, in a letter he sent to Mr. Simitis on July 28, he underlined his interest as energy commissioner in the natural gas pipeline project and had stressed the negative consequences of a delay.

[12] Simitis

In an announcement, Mr. Simitis said: "It does not surprise me that the prosecutor has begun criminal proceedings for supposed delays in the natural gas project. It does not surprise me because for some time there has been a campaign of slander against me and distortion of the work of the ministry. "The prosecution action constitutes awaited escalation targeting my political presence and position (and) differing opinions demanded with great agony by the people of this land."

[13] Premier meets with Tsohatzopoulos on Gov't planning

Prime Minister Andreas Papandreou held talks with Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos at the prime minister's residence in Ekali yesterday on government planning and priorities to be set in the new session of Parliament next week, and to map out the ruling PASOK party's next moves.

Mr. Tsohatzopoulos said the discussion was "useful and substantive" and, when asked about Mr. Papandreou's health, added "we worked together in depth and on all issues for over an hour and that speaks for itself." Mr. Tsohatzopoulos disclosed that the PASOK Central Committee will convene in mid-October to elect a new secretary, adding that it had not yet been clarified whether, in parallel, a new Executive Committee would be elected or vacancies would be filled.

Meanwhile, Mr. Tsohatzopoulos clarified that the insurance and pension rights of civil servants employed in prefectural self-administration would not be harmed. Addressing a seminar organized by the Civil Servants' Supreme Administrative Council (ADEDY) on prefectural self-administration, Mr. Tsohatzopoulos promised that there would be a provision for supporting the civil servants' auxiliary insurance fund.

"The selection of a special account where contributions for auxiliary insurance by new regular staff and employers would be deposited at a first stage, constitutes a serious and realistic move until we finally settle auxiliary insurance and the insurance sector to which this staff will belong. The special account will be subject to this new agency when a final settlement is reached," he said.

[14] 58 Greek shipping firms receive US ANVER awards

Fifty-eight Greek shipping companies were given ANVER awards by the US Coast Guard last night for the participation of 212 of their freighters in the world sea rescue system of the same name. The event was organized by the Propeller Club and the US Embassy.

Awards were given by Merchant Marine Minister George Katsifaras, US Ambassador to Athens Thomas Niles, the representative of the US coast guard's chief, Vice-Admiral Robert Nelson, and the head of the marine security committee of the International Marine Organization (IMO) Admiral (ret.) Efthymios Mitropoulos. The ANVER system covers the entire world, utilizing automatic warning via satellite.

[15] Sir Leon Brittan arrives in Athens

Sir Leon Brittan, the European Commission's vice president for European issues, arrived in Athens yesterday to take part in a two-day conference starting today on "Greece: Economy and state on the threshold of the 21st century." Sir Leon is visiting Greece at the invitation of the Athens Economic and Industrial Chamber and the neo-liberal E21 society.

Speaking on the problems and prospects of the European Union at a dinner in his honour last night, Sir Leon said Greece had a "big public sector". "Although it is up to the government and people of Greece to decide on the state's role in the economy, Greek participation in the EU means that these decisions must be taken in a wider framework. Rules of competition must be honored and the repercussions of big public deficits on the economy and the budget also have a bearing on Greece's ability to move towards convergence with the criteria of the Economic and Monetary Union (EMU)," he said.

Saying that he was following developments in Greece with interest, he added that Economic and Monetary Union would certainly take place and that in the next 10 years central and eastern European countries, as well as Cyprus and Malta, would join the EU.

[16] New figures show tourist arrivals, overnight stays down, but exchange up

Tourism Minister Nikos Sifounakis released figures yesterday in Parliament showing a considerable drop in the number of overnight stays and charter flight arrivals in the April-August period this year.

The figures, however, showed an increase in tourist exchange during the first five months of the year. Mr. Sifounakis said that overnight stays were down 10 per cent in the April-August period compared to the same period last year, while tourist exchange had risen 28.8 per cent in the first five months of the year compared with the same period last year.

Meanwhile, the main opposition New Democracy party's draft law on the amendment and supplementation of tourism legislation was rejected by Parliament yesterday. Terming the draft law "fragmentary", Mr. Sifounakis said that it did not address current problems in tourism.

[17] Rhodes to get boost to electricity plant

Public Power Corporation (DEH) general director Andrianos Papathanassiou and representatives of the SEMT Pielstick-ABB-Techniki Enosi consortium signed a contract yesterday for an extension of the electric energy production plant of Soronis on Rhodes after international tendering took place.

The extension concerns the addition of three new diesel electric production units each having a capacity of 22.3 MW. The extension will help cover the island's overall electric power needs over the next few years. The contractual cost amounts to 20.8 billion drachmas.

End of English language section.