A.N.A. Bulletin, 27/01/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 798), January 27, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Continuity, evolution and adaptation, key themes of Greek foreign policy, Pangalos says

Foreign Minister Theodoros Pangalos yesterday told his first press conference since being appointed to the ministry that there would be continuity, but also evolution and adaptation, in the Greek government's foreign policy.

He said the policy statement of the new government of Prime Minister Costas Simitis, to be presented in parliament on Monday, would constitute a "continuation and adaptation" of the policy statement of the previous PASOK government.

Commenting on reports that Belgrade's recognition of the Former Yugoslav Republic of Macedonia (FYROM) was imminent, Mr. Pangalos said that this was something which Skopje wanted, without the Yugoslav government having yet taken a decision on the matter.

"Belgrade has assured us that no decision haw yet been taken and the issue is being discussed, " he said.

Yugoslav Foreign Minister Milan Milutinovic was expected in Athens last night to discuss the matter.

The foreign minister said that the Greek government's position was that any recognition of Skopje should be with the official international name for that country, that is, the Former Yugoslav Republic of Macedonia (FYROM).

Questioned on his past criticism of the government's handling of the issue, he said that "the government's position has since changed and mine has been adopted," noting that he had called of r the lifting of the Greek retorsion measures, and a simultaneous change in the symbols and an end to FYROM's irredentist propaganda.

"These are precisely what the New York interim accord includes," he said.

Regarding his view that "the issue of the name is a lost issue," the foreign minister said:

"It is a view I expressed in the past. I don't know to what conclusions developments to date have led you. At any rate, my evaluation is one thing, and the government's position with which we are entering into negotiations is another. And there, our basic position is that we are seeking a name which does not include the term 'Macedonia' or its derivatives, because we believe that this will constitute the best basis to build relations of friendship and co-operation without misunderstandings".

He added that irrespective of the position of the Greek government. "everything is being discussed in the negotiations", noting that what is being sought is a jointly acceptable solution which will not create feelings of defeatism on either side.

[2] ... on Relations between Athens and Ankara

Turing to Greek-Turkish relations, Mr. Pangalos played down the issue that has arisen over the Greek islet of Imia in the eastern Aegean, to which Turkey reportedly recently laid claim.

He described the incident in which a Turkish freighter ran aground on the islet, resulting in an exchange of verbal notes between Athens and Ankara, as a "random" incident.

He said that the view subsequently put forward by Ankara that the islet was located in Turkish waters was "absolutely inaccurate and mistaken" and that the Greek government had immediately pointed this out to the Turkish side.

He attributed the issue either to "excessive zeal" on the part o Turkish diplomats "or to some more general strategy on the part of Turkey, which if this is the case, will constitute a very regrettable development, not particularly helpful to Greek-Turkish relations, which are not in a very good state today".

"We don't consider it as an issue which should lead us to a crisis condition," he said.

When speaking of Turkey's customs union with the European Union, however, the foreign minister expressed serious reservations, saying that his view that the pact would not contribute to a further democratization of the neighboring country had so far been confirmed.

He said that Turkey's recent stance both on the Cyprus problem and the issue of human rights, as well as Turkish provocations in the Aegean, had not improved.

"Things have got worse, with respect to the Cyprus problem, with respect to the Cyprus problem, with the latest impertinent views expressed by (Turkish Cypriot leader) Rauf Denktash, we have seen an intensification of state terrorism and we have had continuous provocations in the Aegean," he said.

"We shall try to persuade our partners in the European Union that greater determination is needed towards the Turkish authorities, as it appears that the soft-soap approach does not work," he said.

He stated categorically that Athens would never accept comprehensive negotiations with Turkey that included the Cyprus issue, which nevertheless, ought to be led to a solution, thereby contributing to an improvement in Greek-Turkish relations.

On the EU General Affair Council meeting on Monday in Brussels, Mr. Pangalos reiterated the Greek government's support of the Italian presidency's proposal to appoint a European mediator for the Cyprus problem.

He said Athens believed that a "high profile" figure should be appointed to the position, who would report to the Council of Ministers on the issues for which he is responsible.

Commenting on the US initiative on the Cyprus problem, Mr. Pangalos said "bearing in mind the Greek government's view that the problem is a international one, all interventions and all initiatives are welcome from the US and Europe".

Commenting on reports of a forthcoming visit of US Assistant Secretary of State Richard Holbrooke, Mr. Pangalos said there was nothing specific at the moment, adding that "if Mr. Holbrooke wishes to come, we shall listen to his views carefully".

Regarding Greek-Albanian relations, he said efforts were continuing at a diplomatic level for a solution to the issue of schooling of Greek children in the neighboring country. He added that high-ranking foreign ministry officials would visit Tirana in the next few days, and described as a positive development the drawing up of legislation, now pending approval, providing for the establishment of private schools in Albania. He added, however, that "the Greeks of Albania have the right to be taught Greek in public schools too".

"We shall pursue this and hope to meet with understanding for the Albanian side," he said.

He confirmed that President Kostis Stephanopoulos would visit the United States between May 7 and 15, as announced by the White House a few days ago, and that he would accompany him. He laid special significance on this visit, as regards both bilateral relations and the Greek-American community, and left open the possibility that it might be preceded by a visit of Prime Minister Costas Simitis himself.

"Both sides are looking for an appropriate date," he said.

Mr. Pangalos categorically rejected charges that the government had downgraded the importance of expatriate Greek affairs by abolishing the Undersecretariat for Overseas Greek, and said the sector was now under the competence of Alternate Foreign Minister George Romeos, who would also retain responsibility for European affairs.

In a brief comment, Mr. Romeos also rejected the charges, and added that both ministers would attend the next session of the World Council of Hellenism in Thessaloniki on February 17 and 18.

Mr. Pangalos said that after his and Mr. Romeos' working lunch on Thursday with the ambassadors of European Union member-states, it had been decided to hold such luncheons on a regular basis before any General affairs Council, so that foreign diplomats could be briefed on Greek positions.

Finally, Mr. Pangalos said the government was attending to the issue of the return of the forced loan to the war-time German occupation and claims of third parties, that Athens would state its views to the German government, and would await its reply.

[3] Pangalos, Michaelides confer on Cypriot course for Europe

Foreign Minister Theodoros Pangalos held talks yesterday with his Cyprus counterpart Alecos Michaelides on the European orientation of Cyprus, in the presence of Greek Alternate Foreign Minister for European Affairs George Romeos.

After the hour-long talks, Mr. Michaelides said that all that had been achieved over the three-year period he had been foreign minister of Cyprus, and what was targeted from now on, was the result of close co-operation between Athens and Nicosia.

Mr. Michaelides said that there had been an exchange of assessments on looming developments and initiatives, focusing on the European Union's interest in finding a solution to the Cyprus problem.

Replying to questioners on whether he believed the European representative for Cyprus should be a political personality, Mr. Michaelides said the important issue was that the EU was involving itself with the Cyprus issue and how it could help in having it resolved.

He briefed the Greek foreign ministry's leadership on all that the Cypriot side was aware of concerning the initiative of US Assistant Secretary of State Richard Holbrooke and an exchange of views followed.

Referring to the possibility of Mr. Holbrooke visiting Nicosia, Mr. Michaelides said he was not aware when it would take place and that "I do not know whether Mr. Holbrooke himself knows this" since the reason for the delay was the political situation in Turkey.

He said nobody knew when a government would be formed in Turkey because, surely, without there being a government in Ankara a visit to the region was of no use.

"The key to the Cyprus issue is in Ankara and not in Nicosia," Mr. Michaelides said. Consequently, he added, for talks to take place in Ankara there had to be a government.

[4] Holbrooke to visit February

Meanwhile, an ANA dispatch from Nicosia reported yesterday that Mr. Holbrooke's tour of Nicosia, Athens and Ankara would take place around February 10.

According to reports by the Cyprus Broadcasting Corporation (CyBC) from New York, Mr. Holbrooke is of the opinion he will achieve a joint meeting with President Clerides and (Turkish Cypriot leader) Rauf Denktash, which constitutes the basic target of his mission.

The reports said the special purpose of the joint meeting, based on the pursuits of the US diplomats, was achieving an agreement on the agenda for inter-communal talks which will follow.

Mr. Holbrooke's tour in the region will last 3-4 days and the greatest emphasis will be placed on Cyprus.

[5] Athens, tells Izetbegovic of intention to open embassy in Sarajevo

A senior foreign ministry official, due in Sarajevo on Monday, will be carrying messages to Bosnian President Alija Izetbegovic from Greek Prime Minister Costas Simitis and Foreign Minister Theodoros Pangalos, a foreign ministry statement said yesterday .

The messages contain a statement of Greece's intention to open an embassy in the Bosnian capital as soon as possible. A relevant draft bill will be tabled in Parliament on Monday .

The foreign ministry statement said that the sum of 7 million USD, which Greece announced in December it would provide to Bosnia for the carrying out of high priority projects by Greek companies, represented one-tenth of the country's immediate needs.

With the appropriate coordination, Greek companies will be able to participate in tenders and undertake projects in the neighboring country, with which Greece wishes to have the best of relations, the statement added.

[6] Greece hopes to set up Balkan Council for post-war Balkans, Pangalos says

Foreign Minister Theodoros Pangalos said yesterday that Greece would do everything in its power to help consolidate peace in Bosnia, with the ultimate aim of establishing a Balkan Council with the participation of European Union members and non-members.

"Greece, whose interests are in no way served by tension in the Balkans, and is linked with all the peoples of the region, will have a systematic presence in the region. We shall do everything possible, economically, culturally and militarily, to facilitate the implementation and consolidation of peace in Bosnia with the main aim of establishing a Balkan Council in which EU member states will participate, as well as others which are not members or which are going to become members," Mr. Pangalos said.

He made the statements in his opening address to a meeting organized by the International Business and Cultural Centre and the Institute of International Relations of Panteion University at the foreign ministry, to discuss the Bosnia peace agreement and Balkan issues in general.

Among those attending the meeting was US Ambassador to Athens Thomas Niles.

"The causes of the Yugoslav problem are deeply cultural and not just economic," Mr. Pangalos told the meeting.

He said that the conflict in the former Yugoslavia could have been settled "in a much less tragic way" but for "the effort made for the survival of the political elite of the country in question and the desire of certain European governments to develop in the Balkans relations and influence of the past".

Disagreeing with Mr. Pangalos, Mr. Niles said that the US had clearly foreseen the bloodshed in former Yugoslavia in June 1991.

He added that a cease-fire had been attained in Bosnia by virtue of the Dayton agreement but that many difficulties remained concerning the country's economic reconstruction.

He said that reconstruction would consolidate the peace accord which would take the edge off nationalistic disputes and protect human rights and freedoms.

He noted that respect for human rights would be a prerequisite for the disbursement of US economic aid to the region totaling 1.5 billion dollars over the next three years.

[7] Turkey begins mapping islets in Aegean, paper says

The Turkish foreign ministry and the Turkish General Staff have started mapping islets in the Aegean sea, according to the newspaper "Cumhuriyet", which claims that the move is a "reply" to a decree issued in Greece three months ago on the "settlement" of the islets.

The newspaper said that after the mapping was completed, Turkey would call Greece to the negotiating table.

[8] Armenian military chief in Athens late next week

The Armenian defense under-secretary and commander-in-chief of the armed forces, General Michael Harutunian, will pay an official visit to Greece from February 2-9 at the invitation of the Chief of the National Defense General Staff Admiral Christos Lymberis.

General Harutunian will have talks with the political and military leadership of the defense ministry and visit a number of military installations.

A General Staff announcement said that the Armenian official would also be visiting archaeological sites in Athens and Thessaloniki.

[9] President ill, announcement says

President Kostis Stephanopoulos has been house-bound for the last three days with a heavy cold and temperature, an announcement issued by the presidential office said yesterday.

Press sources said the president was suffering from a bout of influenza.

[10] Romeos sends message to expatriate Greeks

Alternate Foreign Minister George Romeos sent a message to Greeks around the world yesterday on the occasion of his assumption of duties.

"...The government's policy in all relating to expatriate Greeks remains the same and united," he said.

"... I would like to assure you that I will do my utmost to promote issues dear to Greeks of the Diaspora and hope that soon I will have the chance t o meet with you and confer with expatriate organizations".

[11] Simitis, key ministers to meet Sunday to discuss policy statements

All of the government's ministers have submitted their memorandums to Prime Minister Costas Simitis for preparation of a policy statement to be unveiled Monday in Parliament.

Government spokesman Dimitris Reppas made the announcement yesterday, adding that the premier will meet with his ministers to decide on the final wording.

In addition, Mr. Reppas said an expanded government conference is scheduled for tomorrow to discuss the policy statement. The conference will be chaired by Prime Minister Simitis, and will include the participation of Interior Minister Akis Tsohatzopoulos, National Defense Minister Gerassimos Arsenis, National Economy Minister Yiannos Papantoniou, Finance Minister Alekos Papadopoulos, Environment, Town Planning and Public Works Minister Costas Laliotis as well as Development Minister Vasso Papandreou.

A Cabinet meeting is also slated for 11am Monday.

[12] Labor reactions

Meanwhile, the pending policy statement has generated increased organized labor activity.

General Confederation of Workers of Greece (GSEE) President Christos Protopapas said that although the labor union umbrella group understands that the government's current economic policy cannot change, "we are waiting for specific solutions to certain burning issues."

GSEE requested a stop to a "one-sided division of (economic) burdens."

The unions also called for tax reform, reduced waste and a crack down on rackets exploiting government purchases.

Other demands are the acceleration of the construction of major projects and investments.

A similar message was sent to the premier by Civil Servants' Supreme Administrative Council (ADEDY), in which the civil servants' union makes two main demands, namely, salary increases and the upgrading of the public sector in order to make it independent of political party manipulation.

[13] EKA rally

Discussion continued yesterday on an Athens Labor Centre (EKA) decision to hold a demonstration Thursday. The decision was based on support by labor factions belonging to main opposition New Democracy, the Communist Party of Greece and the Coalition of the Left and Progress.

A group belonging to the ruling PASOK party did not back the rally.

[14] Simitis, Kaklamanis confer on parliament's work

Prime Minister Costas Simitis held talks with Parliament President Apostolos Kaklamanis yesterday, saying the talks focused on promoting parliamentary work and upgrading the role played by deputies.

Mr. Kaklamanis said afterwards all issues concerning parliament's work were examined.

Replying to a questioner on whether the question of establishing a "prime minister's hour" was discussed, Mr. Kaklamanis conceded it was but expressed the view that the institution should be widened with the participation of deputies as well.

He said the study on amending the parliamentary regulation concerning the role played by deputies had gone ahead and the study on the amendment of the regulation concerning the organization of parliamentary services would also go ahead soon.

[15] Executive Bureau discusses party congress

The holding of a party congress and the formulation of the Executive Bureau's recommendation to the Central Committee meeting on February 10-11 were the sole topics of discussion at the ruling party PASOK Executive Bureau's three-hour meeting last night.

Central Committee Secretary Costas Skandalidis said after the meeting the Executive Bureau insisted on its proposal that the congress be held in June.

According to reliable sources, however, the congress may be held a week later than scheduled depending on whether the Olympic stadium will be available.

Mr. Skandalidis added that the Executive Bureau noted "the wide social current around PASOK that must be transformed into a large popular majority which will follow a victorious course and win at the end of the (present) four-year term." He mentioned that, following the confidence vote in Parliament, Prime Minister Costas Simitis would meet with the Executive Bureau.

[16] Papandreou feeling better, doctors say

A medical bulletin issued by the Onassion Hospital yesterday said that ruling PASOK party leader Andreas Papandreou was continuing breathing physiotherapy and kinesiotherapy and had no temperature.

It added that his breathing and renal function continued to be periodically supported by a respirator and kidney machine.

For the first time yesterday, the former premier asked his doctors to allow him to walk a little more in the corridor on the sixth floor of the Onassion.

Mr. Papandreou's doctors said that the removal of pleuretic fluid from the patient's chest by the puncture method had made him more comfortable, adding that in two weeks, if all went well, he would probably be able to breathe without the support of a respirator, even overnight.

[17] Evert confers with associates on current developments

Main opposition New Democracy party leader Miltiades Evert conferred with his associates yesterday over political developments.

According to sources, ND believes the political irregularity is continuing and is being exacerbated, as the only concern of the Simitis government is the attempt to find a balance between government and party, while Turkey intensifies the tension in relations between the two countries and Serbia is preparing to recognize Skopje as 'Macedonia'.

According to the sources, Mr. Evert told his close associates that while the government publicly rejects ND proposals, it later attempts to copy them. He cited the alternative budget his party had submitted in Parliament as an example, where specific spending cuts had been suggested in order to increase pension funds.

[18] Defections

Meanwhile, New Democracy announced yesterday morning that four Political Spring members had defected to New Democracy.

The four are: Athanassios Lefas, an economist, party cadre and Messinia Prefectural councilor; George Bouga, founding member of Political Spring; Dimitris Vrettakos, lawyer and party cadre for Piraeus; and Yiannis Papanastasopoulos, president of Politic al Spring's coordinating committee.

Mr. Evert expressed his satisfaction and called on the members "to become active members of the party and society and to contribute through their efforts to ND's struggle for modernization and the rebirth of our country."

A Political Spring announcement later stated "New Democracy's political impoverishment forces it to be jubilant over the defection of people who have been distanced from Political Spring for a long time. We congratulate them on their success."

[19] Balkan regional track and field meets to resume

Balkan track and field championships will take place each year as before, representatives of Balkan countries decided during a conference held in Thessaloniki yesterday.

The championships will be held over three days, and will include all events apart from the marathon.

An agreement will be signed for the establishment of a Balkan athletics federation, which will also include the new Balkan countries of Moldova, FYROM, Bosnia, Croatia and Slovenia.

The first three championships, from 1997 to 1999, will be held in Greece, and will include veteran and special needs athletes' categories for a number of events.

The Balkan cross-country championships will also take place every year, with three men's and two women's categories. The Balkan indoor championships will be held in Greece every year until the other countries build an indoor track.

[20] Employment must be a priority issue for IGC, European socialists say

European social democratic and socialist parties requested yesterday the inclusion of employment as a priority issue in the agenda for the European Union Intergovernmental Conference (IGC), due to begin on March 29 in Turin.

Greek Prime Minister Costas Simitis is being represented at the meeting by Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos.

Mr. Tsohatzopoulos spoke of the need to find a common solution to the problem of unemployment, which, he said, constitutes a major European problem.

He noted that development in Europe today, regardless of high or low indices, is accompanied by a percentage of unemployment.

"Regardless of whether this percentage is different in the southern countries to that of the more industrially developed countries of the north, the problem is the same everywhere. Thus the question arises as to which form of development will provide the ability to combat unemployment," he said.

The minister characterized the views expressed during the meeting as "very positive". He also expressed his optimism that socialist parties will adopt a common position and clear new ways for European policies through their proposals at both the Europe an Social Democratic Party Conference in Venice on March 9 and at the IGC.

Austrian Chancellor Franz Vranitsky stressed employment policy must be considered as the second factor in the common path towards European unity and noted many European citizens fear mass redundancies resulting from economic and monetary union. For this reason, he continued, the fight against unemployment must occur at the same time as EMU.

[21] Greek medical team heads for Palestine

The first team of specialist surgeons from the Athens Medical Centre leaves for the Palestinian towns of Nablus and Ramallah tomorrow within the framework of a recent agreement between Palestinian President Yasser Arafat and the center's founder, George Apostolopoulos.

The 25-member medical team will be in Palestine for a week and will perform over 50 operations and examine more than 200 patients.

Mr. Apostolopoulos, who is accompanying the team, will have talks with President Arafat on the organization of a Palestinian health system and the conversion by the Athens Medical Centre of a large prison into a modern hospital.

[22] Papadopoulos decides on 'restrained' rate reduction for new bills issue

Finance Minister Alekos Papadopoulos yesterday revealed that the January issue of state securities would bear reduced interest rates.

Interest rates for one-year treasury bills were pegged at 13.8 per cent, six-month bills will have a 13.1 per cent interest rate, while interest rates for three-month bills will be listed at 12.9 per cent.

The minister's decision not to proceed with greater interest rate cuts is taken as an indication that further decreases will be more restrained and based on market conditions.

The decision is also in line with the Bank of Greece's position on the matter, which has always highlighted the need for a gradual decrease in interest rates, in order to maintain market stability.

The finance ministry's decision is also in line with the decreased borrowing requirements the public sector needs to cover with the Monday issue, as well as with the projected increase in inflation for January and February.

[23] Balkans unionists gather in Athens for talks on regional issues

The first Inter-Balkan Trade Union Conference, organized by the General Confederation of Workers of Greece (GSEE), opens in Athens on Monday with the participation of labor organizations from all the Balkan countries.

Trade unions from Croatia, Slovenia, the Federal Republic of Yugoslavia, Bosnia-Herzegovina, the Former Yugoslav Republic of Macedonia, Albania, Bulgaria, Romania, Turkey and Greece will be participating in the conference, along with representatives of the Confederation of European Trade Unions. GSEE President Christos Protopapas said that the initiative was aimed at helping to consolidate a climate of friendship, co-operation and economic development in the region.

Discussion at the conference will focus on issues such as economic recession, development and economic co-operation - which will cover the problems of unemployment and emigrant workers - and co-operation between trade unions.

[24] ND welcomes moves to float OTE shares

A main opposition New Democracy party statement yesterday said it was not opposed to the government's policy to float Hellenic Telecommunications Organization (OTE) shares on the stock market.

"ND is not opposed to the floating of 8 per cent of OTE shares. In any case, the ND government programme foresees the sale to the private sector of up to 49 per cent of OTE.

"As far as the government's float is concerned, ND stresses that the value of these shares must be estimated on the organization's profits for 1995 and its projected profits for 1996, as well as with the fact that the total value of OTE comes to at leas t 1.7 trillion drachmas.

"ND stresses it is not opposed to the sale of 8 per cent of OTE on the condition that the proceeds of the sale be re-invested into investments and into the modernization of OTE and not be wasted on consumer expenditures."

Political Spring, in an announcement, also welcomed the government's decision, saying it was adopting Political Spring's proposal to put OTE on the stock exchange.

The Communist Party of Greece (KKE), however, criticized the national economy ministry's decision to go ahead with the OTE float as a "typical" policy of the Simitis government.

In its announcement, KKE reiterated its objection to the "traditional levers of economic and social policy" in multinational capital. It also warned that "there can be no period of grace or toleration of this criminal anti-popular policy that the new PASOK government is called upon to realize, so implementing in every way the conditions of the 'convergence programme'."

OME-OTE, the organization's workers' union, announced that the main problem facing OTE is development and modernization, a matter that is being ignored by the government, which gives priority to the floating of a small percentage of the organization's s hares.

OME-OTE insists the organization must remain in the public sector.

[25] Stratos calls for Gov't to work on structural obstacles to new investors

Federation of Greek Industries (SEB) President Jason Stratos called on the government yesterday to strictly observe the state budget and avoid even the slightest deviations.

Speaking on the sidelines of an event organized by the Economic Policy Studies Institute, Mr. Stratos said the new government "is the exclusive development factor which will bring us closer to implementing the convergence programme."

Referring to negotiations with the General Confederation of Workers of Greece (GSEE) on a new collective labor agreement, Mr. Stratos said "I want to believe that there will be an agreement", but conceded that for the time being there was a difference in views with labor.

Mr. Stratos' address focused on "counter-incentives in investments and the development of Greek industry." He said that "a thick, almost impenetrable network preventing the entry of new investors in the industrial sector has now been created."

In his view, this unfavorable environment, together with the existence of more productive alternative capital investments (primarily in state securities due to high interest rates and the para-economy), explain why few new investments were made in the country and most investments concerned the modernization of existing units.

To prevent the possibility of the production base declining, Mr. Stratos called for immediate structural changes to draw the para-economy to the official economy and widen the tax base. He urged a further reduction in interest rates at the same time.

Mr. Stratos expressed support for the simplification of legislation regarding approval of licenses for new investments, the rezoning of industrial regions and the improvement of training for human resources.

He said investment activity in industry would increase this year, but warned that this trend should be backed through the adoption of a different economic policy blend from the present one and primarily through a slackening in exchange policy (a greater depreciation of the drachma) to enable Greek exports to become more competitive.

End of English language section.