A.N.A. Bulletin, 05/03/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 829), March 5, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Employers, unionists finally agree on wage increases, Gov't, SEB speak 'same language' on economy

Conciliation was in the air yesterday as employers and trade unionists tentatively agreed to terms for a collective labor agreement after weeks of protracted negotiations, and Prime Minister Costas Simitis said the government and the Federation of Greek Industries (SEB) spoke "the same language" on economic issues.

The prime minister, SEB President Jason Stratos and National Economy Minister Yiannos Papantoniou met on developments in the economy yesterday, with Mr. Simitis saying afterwards that the government and SEB shared the same views on most issues, including adhering to the budget, keeping a rein on public spending, improving the competitiveness of Greek products and state assistance for businesses expanding into new fields.

Mr. Simitis maintained that improved competitiveness could only be achieved if Greek businesses took the initiative to invest and did not depend on state initiatives.

The economic climate, he added, would be further improved by dialogue between the state and the private sector to achieve "a national social agreement".

The government's central economic goal is "growth" and everyone must contribute to its realization, the premier said.

Mr. Stratos said the prime minister showed "great understanding" of the federation's positions but noted that continued delays in streamlining the public sector retarded growth.

[2] Wage agreement

Representatives of the General Confederation of Workers of Greece (GSEE) and employers' unions agreed in principle on the content of a two-year collective labor agreement for the 1996 and 1997 period at yesterday's fourth meeting.

The agreement will be subject to approval by a GSEE board plenary session today and will be backed by GSEE President Christos Protopapas and PASKE, the labor group affiliated to the ruling PASOK party. Other labor groups are expected to oppose the agreement.

According to the agreement hammered out yesterday, the lowest daily wage (currently 5,338 drachmas) will be increased by 3.5 per cent as of January 1, 1996 and an extra 4 per cent raise will be granted on July 1, 1996. If inflation exceeds 6.5 per cent in 1996 the difference will be paid in full as of January 1, 1997.

For 1997, wage increases in line with forecast inflation will be paid plus an increase of 2 per cent in two equal installments. If inflation exceeds predictions, the difference will be paid in full as of January 1, 1998.

Presenting details of the agreement, Mr. Protopapas said working people had secured a "net" increase of 3 per cent over inflation (1 per cent in 1996 and 2 per cent in 1997) regardless of developments in economic indicators and inflation. He said ratification of the agreement meant "a time for responsibility" had come for trade unionists.

SEB President Jason Stratos said there was no space for further negotiations, adding that in giving 3 per cent above inflation over the two-year period industrialists had spoken their last word.

General Confederation of Small Industrialists and Professionals (GSEBE) President Christos Korfiatis said the merchants' and handicraftsmen's proposal for two 4 per cent increases remained.

According to reports, trade unionists of the New Democracy affiliated DAKE and the Coalition of the Left and Progress will reject the content of the agreement today. ESAK (Communist Party of Greece) unionists have already quit the negotiations.

[3] Interest cuts ahead for state securities

The prime minister also met with the management of the nation's largest public banks yesterday, after which a series of decisions were announced, including a lessening of the public debt through a reduction of government securities' interest rates. Other measures agreed upon was a quicker reform of banks' asset portfolios with better exploitation of their acquired properties and sale of businesses in their possession, as well as a partial privatization with an increase in share value and better disbursement of their stock to more investors.

Acceleration of procedures to sell the smaller Attica, Crete and Central Greece banks were also approved.

[4] Simitis promises co-operation with farmers to develop national strategy

Prime Minister Costas Simitis said yesterday the farming sector was the backbone of the Greek economy, and its problems would be examined in detail together with farmers to determine a national strategy, after a meeting with agricultural cooperative executives. "We shall deal mainly with structural problems, in order to face the challenges of the times and the effects of the globalization of the economy faced by farmers," he said.

Sources said that the issue of farmers' debts were also discussed during the meeting, and that the government is favorably disposed towards the demands for rescheduling.

Other issues discussed included problems faced by the sheep and goat breeding sector, and the adoption of immediate measures for cattle breeding.

[5] Current accounts balance for November $21 million in the black

The current accounts balance showed a 21 million dollars surplus in November last year compared to a deficit of 320 million dollars in the corresponding month in 1994.

According to figures released by the Bank of Greece, the surplus was a result of increased inflows from the European Union.

The surplus of invisible transactions amounted to 1,570 million dollars compared to 920 million dollars in November 1994 while, on the contrary, the trade balance showed a deficit of 1,549 million dollars against a shortfall of 1,239 million in November 1994.

The current accounts deficit reached 3.3 billion dollars over the 11-month period from January-November 1995 compared to a surplus of 76 million dollars in the corresponding period in 1994.

Combined with limited capital inflows, negative developments in the trade balance have led to a deficit in the main balance. This deficit amounted to 1,335 million dollars while over the 11-month period in 1994 it had showed a surplus of 2,833 million dollars.

Foreign exchange reserves amounted to 15.3 billion dollars at the end of November but, according to provisional figures, reserves reached 15.7 billion dollars at the end of 1995, while at the end of January they soared to 17.3 billion dollars.

[6] No objections expected to new polypropylene plant

Development Minister Vasso Papandreou said yesterday a polypropylene unit would be established in Thessaloniki, adding that residents in the area it would operate in were expected to consent to the unit's establishment after talks. In a statement on comments by former minister and Thessaloniki deputy Sotiris Kouvelas, Public Petroleum Corporation (DEP) President Christos Verelis said reactions to the unit's establishment in Thessaloniki did not come from DEP but from the local municipality where the industrial complex of the Hellenic Fuel and Mineral Oils Group (EKO) was established.

He also said the representation of EKO staff in the company's board was a known and foregone conclusion and depended on the time employees would need to select their representatives.

[7] Simitis, Pangalos confer with UN representative on FYROM talks

Prime Minister Costas Simitis held talks yesterday with Foreign Minister Theodoros Pangalos and Greece's permanent representative at the UN Christos Zaharakis.

No statements were made after the meeting but, according to reports, talks focused on the position Greece will observe in negotiations with the Former Yugoslav Republic of Macedonia (FYROM) on the issue of the name.

[8] Cabinet convenes today

Prime Minister Costas Simitis will chair consecutive meetings today, first with the inner cabinet followed by the ministerial cabinet.

Both meetings will consider local government and decentralization issues.

In a related matter, Interior Minister Akis Tsohatzopoulos met yesterday with Mr. Simitis to discuss preparation for today's meetings. One of the issues at hand is consideration of a measure abolishing regional directors.

[9] Gov't: Italian, Dutch military attaches issue satisfactorily concluded

Government spokesman Dimitris Reppas said yesterday that the issue of the Italian and Dutch military attaches is now over.

The two attaches were allegedly caught collecting military-related information on the eastern Aegean island of Lesvos three days before the Imia crisis.

He said the two diplomats have now been recalled as requested by the Greek government, and added that he was under the impression that they had already left Athens.

National Defense Minister Gerassimos Arsenis said his ministry was aware of the issue but that it was dealt with by the foreign ministry.

[10] Arsenis rejects reports of increased arms purchases

National Defense Minister Gerassimos Arsenis harshly criticized yesterday what he said were reports of more weapons system procurements following the recent Greek-Turkish crisis.

Calling such reports "malicious stories," Mr. Arsenis added, "we will not succumb to pressures by local and foreign economic interests, who want to promote their own interests."

According to reports, the mid-term weapons procurement programme will be presented at the end of spring by Parliament's permanent committee for external issues and defense.

National Defense Under-secretary Nikos Kouris said the mid-term programme was not being radically changed, but was being reconsidered and adapted to current conditions.

On another front, Mr. Arsenis said legislation on conscription terms will be tabled in Parliament after Easter, adding that talks with Parliament parties' youth organizations will precede the bill's unveiling.

Asked if the length of mandatory military duty will be increased, the national defense minister reiterated his personal view that it should not.

He said the nation's demographic problem should be faced with qualitative changes in the structure of the armed forces.

"We do not want to take steps to just patch up a situation for one or two years and then take new measures, something that has been happening for the last 20 years," Mr. Arsenis said.

He said discussions with the finance ministry concerning legislation for a new officers' pay scale will be completed next week. Mr. Arsenis said a bill will then be tabled in Parliament.

Other contacts between the defense and finance ministries is continuing on the possibility of establishing a special national defense fund to assist in the armed forces' further modernization.

The national defense minister said such a fund would create an outlet for Greek citizens, Greece's institutions and expatriates to unilaterally contribute to the nation's defense.

Following the tabling of legislation on officers' pay, a bill on military officers' advancement is next, Mr. Arsenis said.

New measures expected to be proposed include the abolition of a senior officer's forced retirement if a junior colleague is promoted instead. This legislation should be tabled in late March or early April.

In terms of a bill establishing a widespread civil defense structure, Mr. Kouris said discussions with local government officials will be completed by summer. He added that female participation will be included in the legislation.

Mr. Kouris also said yesterday that the government had not received a request by Turkey to conduct military exercises in the northern Aegean, therefore there is no issue of approval.

Mr. Kouris emphasized that no military exercises are currently underway in the Aegean and that Turkish naval forces are participating in maneuvers in the Black Sea.

[11] Defense leadership to brief premier

Prime Minister Costas Simitis will visit the national defense ministry tomorrow for a briefing by the ministry's political and military leadership on its activities. Meanwhile, National Defense Minister Gerassimos Arsenis hosted a luncheon yesterday for ambassadors of European Union member-states, within the framework of regular contacts and exchange of views among the 15 EU nations.

[12] Greece to bring up Denktash revelations of murdered Greek Cypriots with EU, UN and human rights groups

Greece prepared a three-pronged response yesterday to statements last week by Turkish Cypriot leader Rauf Denktash that 1,619

Greek Cypriots, listed as missing since the 1974 Turkish invasion, had been summarily executed by Turkish Cypriot militias.

Government spokesman Dimitris Reppas said Foreign Minister Theodoros Pangalos would request explanations from his Turkish counterpart at the forthcoming Turkey-EU meeting to discuss the customs union on March 26 and that Athens was preparing a letter for the UN Secretary-General and would brief non-governmental human rights organizations such as Amnesty International and Helsinki Watch.

Turkish Cypriot leader Rauf Denktash said in an interview with a private Cypriot television channel that the Turkish army handed captured Greek Cypriots over to Turkish Cypriot militia groups who killed them instead of taking them to police stations and prison camps.

National Defense Minister Gerassimos Arsenis yesterday joined the chorus of condemnation that has arisen since Mr. Denktash made his glib statements.

"I was not at all surprised by his cynicism, but this message must be passed on to Western political figures who continue to harbor illusions of the quality of Denktash-type policy and desire dialogue with these people on the principles of democracy an d equality," Mr. Arsenis said.

"For this reason the joint Greece-Cyprus defense doctrine acquires importance," he added.

[13] Denktash may be indicted on war crimes charges

Parliament President Apostolos Kaklamanis said yesterday the issue of whether the Greek and Cypriot Parliaments would ask for Mr. Denktash to be referred to the International Court at The Hague to stand trial for war crimes was "open".

"Foreign nations must show the same concern over the Denktash issue as they show for trying war criminals from the civil war in former Yugoslavia," Mr. Kaklamanis said.

Main opposition New Democracy party leader Miltiades Evert raised the issue of the fate of the missing with international organizations.

Mr. Evert would send letters to the International Red Cross, the UN Secretary-General and the Council of Europe requesting an inquiry into Mr. Denktash's statement that the missing persons, many of whom were civilians, must be presumed dead.

[14] Arsenis comments on joint defense doctrine

National Defense Minister Gerassimos Arsenis yesterday said that any further Turkish encroachments on Cypriot territory would be cause for war, adding that the "expression of this political will of Hellenism is the implementation of the (Greek-Cypriot) joint defense doctrine."

Expressing satisfaction at the continuous evolution of the doctrine, Mr. Arsenis said the joint defense doctrine between the two countries had also gained wide acceptance in Cyprus.

[15] Greek fishermen protest continuing Turkish harassment

Greek fishermen in the northern Greek city of Alexandroupolis moored their boats and the owners of 23 fishing vessels handed in their papers to the city's port authority yesterday to protest against an incident in international waters in the northeast Aegean Sunday night, when one of them was harassed by a Turkish coast-guard vessel.

They stressed that they may proceed to lay off their crews, and will revoke their decision only if the government provides effective protection against escalating such incidents recently.

Port authorities said a Turkish patrol boat harassed a Greek fishing vessel in international waters off Alexandroupolis late on Sunday night while the fishing boat was heading towards the island of Samothrace.

They said the Turkish vessel aimed its floodlights at the vessel for 20 minutes, and left in the direction of the Turkish coast only after a Greek coast guard vessel rushed to the scene.

The fishermen said they were tying up their boats to protest of what they called the "escalating Turkish harassment".

Following an emergency meeting at the prefecture buildings, Evros Prefect George Dolios condemned the Turkish actions, saying that additional measures would be taken to ensure the safety of the fishermen, and adding that the primary target was de-escalation of the psychological tension "the Turks are attempting to create in the northeastern Aegean".

[16] Turkish foreign ministry protests 'harassment' of Turkish vessel

The Turkish foreign ministry yesterday submitted a protest note to the Greek embassy in Ankara concerning last week's incident near the Imia islets, involving the collision of a Turkish coast guard vessel with a Greek gunboat.

The note said the incident, described as "harassment", took place inside Turkish territorial waters, and amounted to a violation of the right of harmless passage.

Greek diplomatic sources described the Turkish protest as "routine".

[17] Gov't condemns terrorist acts in Israel

The government believes that terrorist acts such as Sunday's suicide bombing in Jerusalem totally undermine the Mideast peace process.

Government spokesman Dimitris Reppas stressed that such acts must be resolutely dealt with so as to consolidate peace in the region.

[18] Coalition's candidate sweeps the field in Bar Association elections

Antonis Roupakiotis, supported by the Coalition of the Left and Progress, was yesterday elected new president of the Athens Bar Association, gathering 65.59 per cent of votes in the run-off round, the highest percentage since 1974.

His opponent, Costas Dailianas, supported by PASOK, congratulated the winner, but accused outgoing president Takis Pappas, also PASOK-supported, of undermining him.

The new president, born in 1938, specializes in labor law.

[19] Prison unrest spreads around the country as Patras inmates release last hostages

A new wave of unrest in prisons spread around the country yesterday in the wake of the continuing sieges of prisons in Patras and Corfu.

The last two prison guards being held hostage at the Ayios Stephanos prison in Patras were released at roughly 8:15 yesterday evening after a meeting between Justice Ministry General Director Christophoros Kalavrytinos and an inmate committee.

The Ayios Stephanos siege began last week when inmates refused to return to their cells and took eight guards hostage.

According to sources, Mr. Kalavrytinos conveyed Justice Minister Evangelos Venizelos' assurances that the riot police would not enter the prison after the last hostages were released.

The car with which five inmates escaped from the prison on the day the riot broke out was found yesterday morning, and a prison guard and his brother were taken to police headquarters on suspicion of having assisted in the jail-break. They were later re leased.

In Corfu, rioting inmates at the island's prison said they would return to their cells only when the justice minister submits a draft bill to Parliament for an end to overcrowding in prisons.

Late yesterday afternoon, a riot broke out in the Alikarnassos maximum security prison in Crete, which was still under the control of inmates at the time of going to press. Earlier in the afternoon, inmates at Larissa Prison took control of three wings.

Inmates at the Hania Prison set fire to buildings within the prison complex and refused to return to their cells, although the situation was soon defused. In Athens' Korydallos prison, which was the scene of the November prison riots, inmates in the psychiatric unit lit fires on the building's roof-top. Until late last night, tensions were also running high in the prisons in Diavata in Thessaloniki and in Komotini.

[20] Venizelos

Justice Minister Evangelos Venizelos said yesterday that the situation in the prisons that he inherited when he assumed the justice portfolio "is outrageous".

"It was not, however, created over the past two years (as main opposition New Democracy claims), but over a longer period of time," he said.

He stressed the importance of dealing with the problems immediately with coordinated legal, infrastructural and organizational measures.

ND deputy and former justice minister Anna Psarouda-Benaki called on the government to raise the issue of prison riots in Parliament.

Stressing that prison riots over the past two years have "ridiculed the Greek state," Ms Psarouda-Benaki said the government should deal with the issue directly.

"Greece can no longer afford to be internationally ridiculed over this issue," she said, criticizing the government for not implementing an inter-party committee decision to modernize the penitentiary system.

[21] Greek-American group to 'adopt' elderly Istanbul Greeks

The Greek-American National Council announced yesterday its intention to "adopt" elderly and impoverished Greeks living in Istanbul.

The announcement was made by the council's chairman, Greek-American businessman Theodoros Spyropoulos, who is heading a 14-member delegation to Thessaloniki. Citing the delegation's impressions of their visit late last week to the Phanar region and their meeting with Ecumenical Patriarch Vartholomeos, Mr. Spyropoulos expressed concern over the fate of the Greeks of Istanbul, whose numbers have fallen from 300,000 to 2,500 following the 1955 Turkish pogrom. The majority of these people, he said, we re over 65 years old. "The small number of Greeks living there renders even the operation of the Orthodox churches in Istanbul problematic," Mr. Spyropoulos said.

He described the meeting with the Ecumenical Patriarch as "moving and important", adding that the Patriarch had accepted a Council invitation to visit Greek communities in the United States, and intended to visit other Greek communities throughout the world.

The council delegation is in Greece to promote procedures for strengthening Greek exports as well as re-exports to third countries of products imported from the US.

[22] Turkish officials meet with Greek Moslems

A Turkish foreign ministry official greeted a group of Greek Moslems yesterday in Ankara with the phrase "we are thankful to these people, who represent Turkey in western Thrace."

Turkish foreign ministry spokesman Inal Batu added that Ankara would take a great interest in the future concerning the problems of the "Turks of western Thrace" and would bring those issues to international fora.

Former Xanthi mufti Mehmet Emin Aga, the widow of Ahmet Sadiq, Ahmet Isik and former Xanthi deputy Ahmet Faikoglou were among representatives who had several meetings in Ankara, including a visit to Turkish President Suleyman Demirel.

Meanwhile, a Turkish deputy of the Islamic Welfare Party, along with another 39 individuals, have asked the Turkish National Assembly to conduct an "investigation" into the activities of the Ecumenical Patriarchate.

"The Patriarchate, instead of being a religious institution, has adopted a policy against Turkey and falls in line with the enemies of the nation," Konya deputy and professor Mustafa Unaldi is quoted as saying in the daily 'Turkiye'.

[23] Papandreou to leave hospital soon, doctors say

Barring any complications, PASOK leader and former premier Andreas Papandreou will leave the Onassion Cardiosurgical Hospital at the end of this week or the beginning of next week, doctors announced. Doctors planned to close the 77-year-old prime minister 's tracheotomy yesterday, unless it is postponed for today. In addition, a fistula will be inserted into Mr. Papandreou's right hand today to make dialysis easier. "The condition of the president's health is developing smoothly. A programme of respiratory physical therapy and kinesiotherapy is continuing," an Onassion medical bulletin stated yesterday.

In reply to a question on the possibility of a meeting between Prime Minister Costas Simitis and his predecessor, PASOK President Andreas Papandreou, government spokesman Dimitris Reppas said such meetings were not announced beforehand because no special preparations were needed as in the case of meetings with foreign leaders.

[24] Premier, president to attend Dodecanese island union celebrations

President Kostis Stephanopoulos, Prime Minister Costas Simitis, political party leaders, ministers and other officials will attend festivities on Thursday commemorating the 49th anniversary of the union of the Dodecanese islands with Greece.

The celebrations this year are expected to have particular significance due to recent developments in the Aegean. President Stephanopoulos will attend festivities on the island of Rhodes and will be accompanied by National Defense Minister Gerassimos Arsenis, Minister to the Aegean Antonis Kotsakas and Merchant Marine Minister Kosmas Sfiriou.

[25] Evert unimpressed by Simitis handling

Main opposition New Democracy party leader Miltiades Evert was critical yesterday of Prime Minister Costas Simitis' first 40 days at the helm of the country.

"Many and frightening mistakes undermining the future of the country took place during Mr. Simitis' first 40 days in office," Mr. Evert was quoted as saying in an interview with the newspaper 'Ta Nea'.

Mr. Evert said that the Greek people should be told the truth on Greece's national issues.

"It is unthinkable to conceal the truth about national issues from the Greek people," he added.

Referring to the stand-off between Greece and Turkey in the Aegean, Mr. Evert said he did not merely criticize government handlings during the crisis, but had assumed initiatives to promote the Greek positions on the issue.

Referring to his visit to Strasbourg, Mr. Evert said he achieved "positions and statements directly acknowledging that Greece's borders also constitute European borders."

He criticized Mr. Simitis of inadequate preparation for the prime minister's recent European tour, adding that he should have included Italy, the holder of the EU presidency, and Britain.

He added that statements acknowledging Greece's borders as European borders were "canceled out because of the premier's trip."

[26] Mitsotakis criticism

Mr. Evert told the Athens daily 'Ta Nea' yesterday that he was unconcerned about criticism voiced in the past by his predecessor, former premier Constantine Mitsotakis.

"Mr. Mitsotakis has his own personal views, which do not commit the party and do not concern me. The party has no cohesion problem. Mr. Mitsotakis has much experience, he has handled foreign policy issues many times, and his views are useful, as are every member of the party's. This does not mean he can formulate its policy," Mr. Evert said.

He did not rule out early elections, saying that "the cracks in PASOK's domain are so big, that there is likelihood elections will take place much sooner".

He expressed his disagreement with the convergence programme followed by the government, implying that social and economic provisions would be feasible under a different one.

[27] Greek banks unveil proposals to streamline securities market

The Union of Greek Banks yesterday unveiled proposals for the smoother operation of the primary and derivative markets for state securities.

The proposals are aimed at improving the distribution and cost of servicing the public debt, as well as the management of bank assets and liabilities.

They are also expected to increase the liquidity of securities and transparency of transactions.

Specifically, the proposals include holding regular auctions of competitive issues, with no bidding ceiling, and the option for the state to reject all bids if it is not satisfied with the results of the auction.

The union also proposed the creation of a group of primary dealers by 10-15 banks, to be the sole participants in auctions, legal provisions regarding short selling, and the taxing of interest accruing from transactions of repos between banks so as to enlarge the breadth of the derivatives market.

Among other proposals were: the establishment of a body to monitor the state securities markets (made up of representatives of the Bank of Greece, the finance ministry and the banks); the integration of securities in the Cedel and Euroclear systems to facilitate their distribution abroad; and the speedy reform of legal provisions regarding bankruptcy procedures and their harmonization with those of other European Union countries.

[28] Papazoi outlines ecological importance of Imia islets at EU meeting

Environment Under-secretary Elisabeth Papazoi stressed the ecological importance of the Imia islets at the EU environment ministers' council yesterday.

Ms Papazoi briefed the meeting on action taken since 1984 by the Greek government, universities and non-governmental organizations to protect the environment of the islets within the framework of the CORINE and NATURA 2000 EU programmes.

She also referred to Turkish provocations and to Greece's adherence to international law.

Other subjects dealt with during yesterday's meeting included the promotion of co-operation between the EU and Central and Eastern European countries, measures for the protection of marshes, the reduction of carbon monoxide emissions by cars, the banning of cross-border transportation of dangerous waste and the discussion of environmental issues at the inter-governmental conference.

Ms Papazoi stressed the particular importance of the Mediterranean marshes, which are often dried out for agricultural reasons. They also face a variety of other problems, such as intense tourist development or unplanned urban development.

Ms Papazoi said that Greece has earmarked roughly three billion drachmas for the protection of marshes in the country and has developed co-operation with local bodies for the protection of these areas under the Ramsar Treaty.

[29] Legal framework on industry modernized

Legislation aimed at better modernization is being proposed by Development Minister Vasso Papandreou to alter an existing law on operation of industries and small manufacturers. According to Ms Papandreou, legislation is needed to support investments, in combination with more effective protection of the environment.

A significant change in the legal framework that is promoted by the legislation is coordination of all public agencies responsible for issuing operating licenses for industries and small manufacturers.

Investment proposals amounting to about 400 billion drachmas have been submitted to the development ministry to be assessed and included in subsidization under the clauses of development law 2234/94.

The deadline for submitting proposals expired at the end of February.

A total of 105 business plans were submitted for 280 billion drachmas and proposals for 208 special investments for 120.37 billion drachmas.

Subsidization anticipated for business plans in 1996 amounts to 25 billion drachmas, while for special investments anticipated subsidization is 19 billion drachmas.

End of English language section.