A.N.A. Bulletin, 01/03/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 826), March 1, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Greece will not co-operate in customs union as long as Turkey threatens, Simitis reiterates

Greece does not intend to co-operate in the implementation of the European Union-Turkey customs union agreement as long as Ankara continues its aggressive stand, Prime Minister Costas Simitis said yesterday.

"It would be illogical to consent as long as Turkey puts claims and continues to attack our islands," he said.

He categorically rejected any linking of the customs union issue with procedures for the admission of Cyprus to the EU.

"We do not accept the view that we must let the wrong things rest because someone may raise an issue with Cyprus' admission course," he said, stressing that this would lead to paralysis and defeatism.

The premier also reiterated that Greece would consider any further advance by Turkish occupation troops on Cyprus as a casus belli. Mr. Simitis said Greece's EU partners and Ankara should resolve the issues pertaining to Turkey's demands against Athens "since our country desires a policy of peace and friendship so that there will be an end to the problems."

"We have no differences with Turkey. We do not put forward demands.

We do not want friction," Mr. Simitis said at his wide-ranging press conference on foreign and domestic issues since becoming prime minister just over a month ago.

The prime minister expressed his conviction that the borders of the EU member-states with non-EU countries also constituted the borders of the Community, and that the principle of solidarity should apply with respect to the defense of those borders.

"If a non-EU country disputes the borders of an EU member-state, an effort should be made to apply the rules of international law. If agreement cannot be reached in this manner, then the (non-EU) country concerned should have recourse to the International Court of Justice," he said.

Mr. Simitis noted that this view was shared by all the leaders with whom he had talks during his recent European tour, adding that these contacts would be continued both by himself and Foreign Minister Theodoros Pangalos.

The premier announced that he would visit Italy on March 21 for talks with President Luigi Scalfaro and caretaker premier Alberto Dini, before flying on to London and possibly Dublin, given that Ireland will assume the next rotating EU presidency.

Mr. Simitis also referred to his visit to the United States on April 9, underlining the importance Greece attaches to relations with Washington.

"We also attach the same importance to the strengthening of our relations with Russia," he said.

A basic target for the government, Mr. Simitis said, was "to project a strong Greece in a united Europe, (a Greece) which will have a say in matters and undertake initiatives.'

He underlined the need for closer co-operation with EU partners and increased and closer contacts in order to "broaden support for Greece's just positions".

Mr. Simitis added that it would be wrong to take such support for granted and that Athens must try to gain it.

Replying to press questions, Mr. Simitis expressed satisfaction at the recent discussion of Greek-Turkish relations by the General Affairs Council in Brussels.

In particular, he stressed the importance of the acceptance by Greece's EU partners of the view that territorial disputes raised by Turkey such be resolved in accordance with the rules of international law.

The 15 ministers participating in the meeting failed to reach a unanimous decision on making a statement on the recent Greek-Turkish stand-off in the Aegean due to the veto of Britain, which did not want a legally binding EU statement that would cast doubt over a March 6, 1995 EU-Turkey agreement, providing, inter alia, for customs union.

Commenting on Britain's stance at the Council meeting, Mr. Simitis said that "it could be the result of a more general perception that issues of defense and foreign policy should be dealt with and discussed within the framework of other organizations, such as NATO and the Western European Union, rather than within the framework of the European Union."

"We shall have to continue the effort to change Britain's view and turn the 14-1 into 15-0," Mr. Simitis said.

The prime minister said that the problem which Greece faces with Turkey might arise in the future for other EU member-states, which is why the issue should be discussed at the forthcoming inter-governmental conference (IGC).

He expressed the opinion that many countries would be in favor of Greece's request "so that an effort might be made to formulate certain general rules."

Mr. Simitis left open the possibility of the EU undertaking some initiative to defuse tension between Greece and Turkey, saying that the issue had been raised in his talks last week with German Chancellor Helmut Kohl and French President Jacques Chirac.

Both leaders had undertaken a commitment to examine the issue, Mr. Simitis said, as soon as a government was formed in Turkey.

Replying to another question, Mr. Simitis said that Greece desired Turkey's development and was in favor of its European orientation, since Athens believes that such a process will benefit all the EU countries, including Greece.

"But we do not want this process to be accompanied by continuous friction with regard to our sovereign rights. These problems must cease so that customs union can proceed," Mr. Simitis said, reiterating that Turkey was violating the commitment it had undertaken under the customs union agreement requiring it to maintain friendly relations with the EU member states.

The premier also reiterated that Greece reserved the right to extend its territorial waters from six to twelve miles whenever it saw fit.

He reiterated Greece's known positions on the issue of the Former Yugoslav Republic of Macedonia (FYROM), noting that if any progress were made in talks in New York "then the matter will be discussed again by government bodies and subsequently with President of the Republic Kostis Stephanopoulos and the opposition parties."

[2] Domestic issues

On domestic issues, Mr. Simitis underlined that there were no "magic solutions' to the problems which exist, but expressed optimism that "the road to success" would be found.

He placed particular emphasis on the developmental aspect of the government's economic policy, referring to the major infrastructure works and the inflow of funds from the Second Community Support Framework.

The overall monitoring of the implementation of the Second Community Support Framework, he said, had been assigned to the national economy ministry, adding that a monthly bulletin would be published detailing the progress of the various programmes.

Commenting on the course of the main economic indicators, Mr. Simitis said that the "central but difficult" target of the government's economic policy was the "tidying" of macro-economic indicators.

The government would continue its stable drachma policy, Mr. Simitis said, predicting that the currency's sliding against the ECU in 1996 would not be more than one per cent. "This will be an achievement and will demonstrate the stability of the drachma," he said.

The prime minister said that he had given instructions to curb wasteful spending in the public sector, and the government aspired to bring about the reform of the country's banking system.

For this purpose, Mr. Simitis added, he would be having talks with bank governors on Monday.

Mr. Simitis in effect confirmed statements yesterday by Finance Minister Alekos Papadopoulos, who said that three more years of economic stabilization were necessary.

In order for Greece to participate in economic and monetary union, the premier said, it had agreed to implement the convergence programme.

"It is in the country's interest to implement this programme in order to develop its co-operation with the countries of the EU and create the conditions for political dialogue when the third phase of integration begins," Mr. Simitis said.

He also stressed the importance of combating tax evasion, describing it as a source of inequality, and said the labor ministry in March would present its proposals for reducing unemployment, after which a draft bill would be tabled in Parliament.

[3] Simitis will lead party to next elections

The prime minister said he would lead the party into the next election, adding that this was a point of agreement between the leading members before his election to the post.

He added that the issue of party president Andreas Papandreou returning to the premiership was closed, that elections would take place at the end of the four-year term under the existing electoral law.

He did not make it clear whether he would seek his election to the post of party Vice-President at the forthcoming fourth party congress.

[4] Opposition reactions

Commenting on Mr. Simitis' statements, main opposition New Democracy party leader Miltiades Evert said the Greek people were tired of listening to promises and criticism of the past.

"People want results, solutions, action, but none of these exist," Mr. Evert said.

"Forty days after the Simitis' government has taken office everything is stagnant in the public sector...," Mr. Evert said.

Noting that there are serious problems in the crucial sectors of the economy, he called on the government to accelerate investment procedures in order to ensure development.

The ND leader said certain macroeconomic indicators were deteriorating, calling for special attention to the balance of payments and inflation.

Commenting on Mr. Evert's statements, government spokesman Dimitris Reppas called on him to abandon "show-politics and trying to create impressions".

"Mr. Evert referred to many things, but avoided commenting on what the prime minister said on national issues. And this betrays either agreement, or embarrassment due to a lack of positions," he said.

Political Spring party leader Antonis Samaras described Mr. Simitis' interview as "a televised monologue" and a "repetition of the government's policy statements."

Commenting on the EU Council of Ministers' decision, Mr. Samaras said it did not ensure national interests "since it puts Greece and Turkey on the same level and legalizes Turkish designs, opening the way for Ankara's referral to the International Court at The Hague of every irrational claim."

On Skopje, Mr. Samaras said that while the prime minister seemed "steadfast in his position on the name issue there is undisputed evidence that he is exercising a different policy."

Mr. Samaras said the prime minister was being hypocritical when he said he supported stability for the currency.

Two years ago, Mr. Simitis supported the policy of sliding the drachma, he said.

The Communist Party of Greece (KKE) said NATO and the European Union had a predestined policy for Greece aimed at dragging the country to negotiations on borders.

An announcement by KKE said Mr. Simitis proposed a false, deceptive dialogue and various time-consuming processes aimed at playing for time and containing the struggle of the workers.

Commenting on the prime minister's statement, Coalition of the Left and Progress spokesman Dimitris Papadimoulis said Mr. Simitis was bound by PASOK's internal problems and the dogma of continuing a failed policy and appeared to be unable to live up to changes demanded by the times and hoped for by Greek society.

Mr. Papadimoulis said Mr. Simitis undertook no specific commitment to relieve the weak, insisted on an adulterated electoral law, refused to set up a foreign policy council and sidetracked on the issue of the Former Yugoslav Republic of Macedonia (FYROM ).

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said yesterday the statements of both the finance minister and the prime minister "confirmed that to date governments have applied a deadlocked and socially unfair economic policy which had not even improved fiscal deficits or the public debt. On the contrary, they had multiplied them."

Mr. Tsovolas, who was speaking to reporters in Patras before making an address at Patras University, said such a policy only served racketeers, opportunists and the economically powerful who found political expression in the rulers from 1990 to date.

[5] Demirel meets with Greek Moslem delegation

Turkey's President Suleyman Demirel yesterday said Turkey would support Moslems in Western Thrace.

Speaking during a reception ceremony for members of the Greek Moslem community from the region, Mr. Demirel said the Moslems of the Western Thrace "constitute an element which brings the two countries closer, and not an element of discord."

"We honestly believe that the minorities that live in both countries constitute a bridge of friendship and can contribute considerably to the creation of a climate of mutual trust," he said.

The Turkish President said that in accordance with the Lausanne Treaty, "the rights of the 'Turkish' minority must be ensured."

Representative of the Moslem minority in the region of Komotini, Ismael Rodoplu accused Greece of exerting pressure on the "Turkish" minority. "But in recent times, due to its accession to the European Union it has softened its attitude a little," he said.

[6] Solana meets with Simitis, Pangalos

NATO Secretary-General Javier Solana met with Prime Minister Costas Simitis yesterday after first holding talks with Foreign Minister Theodoros Pangalos. No statements were issued after the meetings. The NATO chief arrived in Athens yesterday. Today, he i s due to meet with National Defense Minister Gerassimos Arsenis and main opposition New Democracy leader Miltiades Evert.

Greek-Turkish relations were expected to dominate the NATO chief's discussions, while the issue of establishing new NATO headquarters in Greece will be discussed with Mr. Arsenis.

[7] US planning Turkey-Greece initiative, aide says

A US initiative to help resolve disputes between Greece and Turkey over the Aegean and Cyprus will begin after an appropriate "cooling-off period," a senior US official said yesterday.

The US official, who declined to be identified, said that after the recent crisis between the two nations, the situation had been too unsettled in both Greece and Turkey to make progress.

However, Washington had not abandoned its effort to promote solutions, he said.

"There has been no government in Turkey and the 'rock' incident caused immense turmoil in Athens... The aftermath was that in Athens our efforts weren't appreciated. So there was a need for a cooling-off period," the official said.

"Lots of preparation is necessary," he added.

The official said Washington was working hard on the Aegean problem, on efforts to broker a negotiated settlement in Cyprus where Turkish troops invaded in 1974 and hold a self-declared northern republic, and on what he called Turkey's internal problems .

Diplomats said the US effort involved putting the Aegean dispute to arbitration by the International Court of Justice in The Hague. But they doubted it would move ahead before the US presidential election in November, given the Clinton's administration' s reluctance to risk upsetting the Greek lobby in the United States.

[8] Clinton underscores commitment to security, stability in southeastern Europe

US President Bill Clinton has underscored the importance the recent dispute over the Imia islets has for security and stability in southeastern Europe, in a letter to Philip Christopher, the president of the International Coordinating Committee for Justice for Cyprus. Stressing that he is personally committed to assisting in the search for an equitable and fair solution to the Cyprus problem, Mr. Clinton says that "the efforts of my special emissary for Cyprus, Mr. Richard Beattie, and others in my Administration reflect that commitment."

"Your letter notes the assistance we have given Turkey on matters critical to it. Administrations of both parties have long supported Greece and Turkey because they are both vital NATO allies. The importance of our close relationship with both Athens an d Ankara was recently highlighted during the Imia crisis. Our credibility and close ties with both countries enabled us to mediate the Imia dispute before hostile action occurred.

"Imia has underscored the importance of security and stability in southeastern Europe. As we pursue efforts for a settlement in Cyprus, we will need the support of both Athens and Ankara. The absence of a government in Turkey has made it difficult to en gage them at this time...

"... The Cyprus solution we seek is the establishment of a bizonal, bicommunal federation. We recognize that a settlement must satisfy the security concerns of both sides. The international identity of the state, its sovereignty, and security issues, such as demilitarization, are among the key matters to be negotiated...," the letter reads.

An inter-party parliamentary committee visiting Washington has had a series of meetings with senior US government officials, senators and representatives, aiming at promoting Greece's positions on the recent crisis in Greek-Turkish relations.

The Greek deputies said the meetings had been "extremely productive," and gave them the opportunity to "elaborate on the Greek positions and understand the views of the US officials on the problems in our region."

[9] ND cadres deny reports of criticism of leadership

Main opposition New Democracy Political Council members yesterday disputed press reports that disputes and harsh criticism were voiced at ND leader Miltiades Evert's opposition strategy over national issues during Wednesday's meeting.

Several high-ranking ND cadres issued written statements blasting the published reports.

ND Vice-President Ioannis Varvitsiotis said the existence and operation of the political council, which advises the party leader, is a positive step in the main opposition party's operation, adding that discussions within the meeting are free and productive.

He criticized what he said were leaks from the meeting, which he added did not help ND.

Former parliament president Athanassios Tsaldaris echoed Mr. Varvitsiotis' statements, saying leaks from the meeting were ethically unacceptable and aimed at disinformation.

In comments on a radio programme, former ND minister Stephanos Manos noted that every time internal problems surface in the ruling PASOK party, a similar situation appears in New Democracy.

"There was no climate of tension and criticism against Mr. Evert at the political council. On the contrary, there was a productive discussion in mild tones, and especially over national issues it was stated that we must be careful in not pushing the government to commit more mistakes than it already has," Mr. Manos said.

Meanwhile, ND deputy Dora Bakoyanni, also a political council member, reiterated her view that the main opposition party should exercise milder criticism over the government's handling of foreign policy issues.

[10] Videnov says Greek-Bulgarian ties a model for the region, after talks with Coalition leader

Coalition of the Left and Progress leader Nicos Constantopoulos held talks with Bulgarian Prime Minister Zhan Videnov last night who said "Greek-Bulgarian relations are an example for the entire Balkan region."

"Left-wing forces, with their co-operation, can secure a peaceful future for the Balkans and their course towards unified Europe," Mr. Videnov added, making special reference to relations between the ruling Bulgarian Socialist Party and the Coalition.

At the end of 45-minute "warm and cordial" talks, Mr. Constantopoulos said:

"Greece and Bulgaria have a historic interest in strong and effective relations of friendship. The planning of initiatives for multiform co-operation in all sectors should have a permanent and strategic priority. Greece and Bulgaria are factors of stability for the entire region. There are common targets of development and prospects in a progressive direction. There is no margin for a delay or conservative comeback for both Greece and Bulgaria. The forces of the democratic Left in the Balkans constitute a guarantee for developments which will bring us closer to the requirements of the 21st century." In the framework of his visit to Sofia, Mr. Constantopoulos met yesterday with Bulgarian Parliament President Mr. Sedov and Foreign Minister Georgi Pirinski. He also met with the presidium of the Union of Democratic Forces, the main opposition party, and Popular Union President Mr. S. Savov.

[11] Papandreou's health

The health of PASOK president Andreas Papandreou is improving steadily. The fever he had suffered from on Wednesday night due to an infection of the trachea had completely disappeared by last night, and the slight set-back does not appear to have troubled his doctors.

However, the doctors have said that due to these small complications, Mr. Papandreou's discharge from hospital will have to be delayed. The former premier will undergo preliminary tests today in order to examine his respiratory abilities.

Meanwhile, former premier and president of the republic Constantine Karamanlis was given a regular six-month medical check-up yesterday at the Ygeia Hospital in Athens. An attending physician later read a medical bulletin to reporters, saying Mr. Karamanlis underwent programmed clinical and laboratory tests, results of which were judged satisfactory. The founder of the main opposition New Democracy party was accompanied by his brother and current ND deputy Achilleas Karamanlis.

[12] Venizelos says Patras prison riot, break-out pre-arranged

Justice Minister Evangelos Venizelos yesterday described the riot which broke out Wednesday at the Ayios Stephanos jail in Patra and the escape of five inmates as "an organized operation."

Mr. Venizelos expressed the view that the situation in the prison would soon return to normal but added that there was tension in other jails around the country.

The minister ruled out the use of force to restore order in the Ayios Stephanos jail.

Inmates demanding better conditions continued for the second day to hold a number of hostages, including prison governor Yannis Nikolakakis.

Approximately 80 per cent of the 750 inmates at the Patra facility are drug offenders, while 260 are foreigners, of which about 150 are Albanian nationals.

Mr. Venizelos and Public Order Minister Costas Geitonas held a meeting to consider the situation.

In statements afterwards, Mr. Venizelos said most of the prisoners' demands were reasonable, adding that he had submitted to Prime Mi-nister Costas Simitis a "program-me of action" to deal with the problems in the country's prisons. He described a s "appalling" the conditions in which prison staff have to work.

Achaia Prefect Stathis Seretis visited the facility this morning and spoke with some of the prisoners. Of the 750 inmates, he said, about 100 were participating in the riot.

Mr. Seretis said a number of buildings in the facility had been destroyed and it was impossible at present to estimate the damage.

Reports in the evening said negotiations between Justice Ministry General Secretary George Pavleas and a five-member inmate committee seemed likely to produce results.

The main opposition New Democracy party issued an announcement holding the government, and especially the justice minister, responsible for the riot. It accused the government of not taking preventive measures to avert the riot.

[13] Corfu inmates take over prison

Meanwhile, inmates at Corfu prison took over the penitentiary following an uprising yesterday afternoon, taking nine guards hostage. Administration offices and the prison's kitchen facilities were set on fire, while several police units encircled t he facility and blocked off the area.

Prison authorities have expressed fears of an explosion if the kitchen fire reached a depot holding 10 tons of fuel oil.

Corfu prefect Andreas Pagatis, who visited the prison, said that a serious problem was posed by the fact that the prisoners had not formed a negotiating committee with which authorities could consult.

The causes of the riot remained unclear. The prison's guard had been strengthened recently.

[14] Athens, Cyprus news agencies sign co-operation agreement

The Athens News Agency and the Cyprus News Agency yesterday signed an agreement providing for co-operation in a number of fields including the exchange of news items and the joint promotion of training and technological development programmes.

The agreement, signed by the general directors of the ANA and the CNA, Andreas Christoudoulides and Anthos Lykavges respectively, also provides for the provision by the ANA of know-how and technical assistance to plan the technological upgrading of the CNA.

In addition, correspondents of the two agencies will co-operate under the agreement in order to reduce expenses and provide better news coverage. The two agencies also agreed to jointly use ANA's network abroad with the aim of cutting expenses and speeding up the transmission of news items.

[15] Drilling finds new oil deposit near Prinos-1 oil-field

A secondary oil deposit discovered during drilling near the primary Prinos-1 oil-field off the island of Thassos will produce an estimated 2,800-3,000 barrels of crude per day, reliable sources said yesterday.

The new drilling operation 'North Prinos', commenced by the North Aegean Petroleum Company (NAPC) in late December, is located 2.5 miles off the Prinos oil-field, northwest of Thassos.

The drillings, conducted by NAPC in co-operation with the Greek state, fall under an agreement by the consortium to make investments of 25 million dollars in the region.

NAPC sources said after a meeting of the consortium's senior officials to examine exploitation prospects that the two oil-fields together would produce daily 12,500-13,000 barrels, thus lengthening the life-span of the original field which had reached a point of marginal exploitation since mid-1995 and currently produces 9-10,000 barrels daily.

Exploration and other work on the new deposit, which is expected to have a production span of 2.5 years, is budgeted at five million dollars, according to NAPC officials.

[16] Money supply growth surpasses Gov't targets

The rate of deposit increase went up to 15.8 per cent in January from 15 per cent in December 1995. The total amount of savings bank deposits at the end of January this year amounted to 10.33 trillion drachmas, compared to 8.58 trillion in January 1995.

According to data provided by the Bank of Greece, the supply of money sped up in January and liquidity slowed.

The increased money supply is due to capital inflows from abroad and an increase in exchange deposits to 17.25 billion dollars compared to 15.73 billion in the corresponding month in 1995. Private capital was also transferred from state securities to de posits.

The supply of money in a general sense, including the currency in circulation, private deposits, repos and bank bonds, increased 11.5 per cent compared to January 1995, surpassing the government's target for this year, which is six to nine per cent.

[17] Greece, Ukraine agree to sign road transport co-operation

Transport and Communications Under-secretary George Daskalakis met with Ukrainian Alternate Transport Minister Valery Tsybukh yesterday.

The two men decided on the signing of the agreement between Greece and the Ukraine regarding road transport which was initialed in June 1995. They also agreed to promote the new Axle Nine road from the Pan-European Conference of Crete, which begins in Helsinki, passes through Russia, Belorussia, the Ukraine, Moldova, Romania and Bulgaria, and ends in the port of Alexandroupolis in northern Greece.

Mr. Tsybukh invited Mr. Daskalakis to participate in the conference of transport ministers of the countries through which Axle Nine passes, due to take place on March 28 and 30 in Kiev.

A conference chaired by Mr. Daskalakis is to be held on March 5 in the Athens Town Hall, with the participation of representatives of local and Prefectural self-administration. The conference will be on the subject of urban transport in the Attica basin .

[18] Papantoniou sees increase in investment this year but stresses continued need for fiscal discipline

National Economy Minister Yiannos Papantoniou forecast an 8-10 per cent increase in private investment and an 18.5 per cent increase in public investment this year, resulting in the creation of 50,000 new jobs in the medium-term.

Speaking at the Piraeus Marine Club yesterday, he added that, despite claims to the contrary, the full absorption of Community Support Framework II funds was feasible, and stressed the need to attract additional private capital to complete planned major projects.

The draft bill on the modernization programme for public utilities will be submitted to Parliament in the next few days, he added, while the Public Petroleum Company (DEP) would follow the partial privatization of the Hellenic Telecommunications Organization (OTE) through the floating of shares on the stock market.

He announced that a new 'one-stop shop' service for investors, the Centre for Enterprises, will hopefully begin operating in about a month's time, offering immediate advice without time-consuming red tape.

Papantoniou warned that the stabilization of the economy had not been completed, and there was a need for greater efforts and consistency in fiscal discipline.

End of English language section.