A.N.A. Bulletin, 12/03/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 835), March 12, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Papantoniou confident economy will ride out possible EU slump

The Council of European Union Economy and Finance Ministers (ECOFIN) convened here yesterday to consider a wide array of important issues.

National Economy Minister Yiannos Papantoniou, who represented Athens at the meeting, claimed that Greece would not be influenced by a recession in the European Union, if it occurs, because of several major EU-financed projects either underway or awaiting commencement.

He did forecast, however, a delay in procedures for the funding of the projects by the European Investment Bank (EIB).

As was expected, talk at a working luncheon was dominated by the worsened economic situation among European Union member-states, while concern was especially given to the economic situation in Germany, which is not expected to improve in the near future . Economic prospects for the other EU nations were also not viewed as bright.

At the meeting, Mr. Papantoniou said the prospects for a recession can be dealt with by following an effective monetary policy and, especially, with a decrease in German interest rates. He added that Europe's economic situation was not positive, but reiterated his position that it would not affect Greece.

The Greek national economy minister also stated that the nation's economic development is practically autonomous because of the effects of the major Community-funded construction projects and because the nation is enjoying the benefits of economic reforms after several years of large deficits and high inflation.

On the sidelines of the council, Mr. Papantoniou met the EIB President Jacques de Larosiere, adding that he expects to visit EIB headquarters in Luxembourg this May or June to discuss issues concerning loan programs for the major Greek construction projects. The minister clarified that there were no problems with the funding, but that his Luxembourg visit will attempt to accelerate procedural adjustments, in order for more loans to be funneled to Greece in a shorter period of time.

The EIB is participating in every major Greek construction project, with its portion of funding ranging from 20 to 50 per cent of the total. It is estimated that EIB funding of these projects will total between 1.5 to 2 trillion drachmas over a five-yea r period.

There was a difference noted between North and South states in talks regarding revision of fiscal prospects and changes in EU budget spending.

Other issues that were not resolved during the council included the issue of flower taxation, a matter brought up by Belgium that directly interests the Netherlands and Greece as well as a proposed energy tax on carbon dioxide (CO2). The last issue was sent back to the Commission for consideration.

ECOFIN also agreed to double the capital of the European Bank for Reconstruction and Development (EBRD) to ECU 20 billion, a development Mr. Papantoniou said would benefit Greek investment in eastern Europe.

[2] Balkans peace based on forging energy, economic links, Vasso Papandreou tells forum

Development Minister Vasso Papandreou yesterday announced her intention to set up a Balkan Energy Forum to take advantage of the region's geographical position between the energy-rich countries of Asia and increasingly energy-dependent western and central Europe. Addressing a two-day conference entitled "Greece and the Balkans: business co-operation" in Thessaloniki, Ms Papandreou spoke of the energy networks in the region, noting that Russian natural gas would begin flowing into Greece via Bulgaria this year.

She said the possibility of expanding the network to cover Albania was being examined and expressed optimism that the Burgas-Alexandroupolis oil pipeline - a major investment with the participation of Russian, Bulgarian, American and Greek businessmen - would soon be a reality.

Ms Papandreou also reiterated her proposal for the creation of a Council of Balkan countries to promote the European Union's policy in the region.

Stressing that the Balkan countries "must live together and co-operate in peace", Ms Papandreou said "we have suffered dearly in the Balkans for the idea of a Greater Macedonia, a Greater Greece, a Greater Bulgaria, a Greater Albania, a Greater Serbia. I t has gone on for too long."

The conference, the third of its kind, is being attended by more than 200 businessmen as well as senior government officials and diplomats from Greece and other Balkan countries and is organized by the Federation of Northern Greek Industries (SEBBE) in co-operation with the American-Hellenic Chamber of Commerce and the Macedonia-Thrace Bank.

[3] Evert: Greece must exploit inter-Balkan co-operation

Speaking at the conference last night, main opposition New Democracy party leader Miltiades Evert underlined the need for Greece to make good use of the unique opportunities in the framework of inter-Balkan co-operation, pointing out that there had already been considerable delays due to both internal and external problems.

On the internal front, he cited the lack of foresight, introversion, a sense of fatalism and cumbersome decision-making processes.

"New Democracy believes in a new state which will assist private enterprise, will not deprive the country of the necessary infrastructure, and will not undermine the competitiveness of the economy," he said.

He added that his party held the view that foreign policy and the national economy were complementary sectors, and that Greece could become an international center due to its presence in the European Union.

He said the country required the stabilization of its economy, and he had clearly committed himself that one of the first measures of his government would be the establishment of a stable taxation system and a comprehensive developmental strategy for al l sectors.

Referring to external problems that had been detrimental to the development of co-operation in the Balkans, he said those came mainly from Turkey, and expressed the wish that Ankara would realize the true interests of the Turkish people, and would respond to Greece's call for honest co-operation and sincere friendship according to international law.

Mr. Evert said the promotion of business co-operation in the Balkans could contribute decisively to the consolidation of peace in the broader region. Towards this end, he added, his party was promoting the idea of setting up of an inter-Balkan stability pact, an inter-Balkan economic development and co-operation foundation that would coordinate European Union programs, a regional development institute, a Balkan chamber of commerce and industry, a commodities exchange in Thessaloniki.

Mr. Evert referred to the role played by the United States in relations between Balkan countries and spoke of the role played by US Ambassador to Athens Thomas Niles in the increase of US investments in the area.

"I would like to stress, without being misunderstood, the positive role that the American embassy in Athens is playing in the development of relations between Balkan countries," he said.

[4] Aiming at a vast regional market

The idea of a vast regional market of 260 million consumers in southeastern Europe gives the region better prospects for international competition, Nikos Efthymiadis, SEBBE president, said.

"The idea of a single regional market in southeastern Europe comprising the 60 million consumers of the Balkan states and the 200 million consumers of the Black Sea countries constitutes our common prospect for taking part in international competition under better terms and for increasing our influence on the choices of every economic superpower, naturally in the context of the European Union, which should always be our primary target," Mr. Efthymiadis said at the opening session of the conference.

Mr. Efthymiadis expressed the SEBBE members' and business community's satisfaction over the "positive developments" in 1995 with respect to peace in Bosnia and normalization of relations between Greece and FYROM, stressing that "the lifting of the numerous embargoes and retorsion measures that had accumulated on our northern borders have created a positive climate in trade transactions and business contacts among the Balkan states."

He also conveyed the "sincere expectation of the overwhelming majority of the Northern Greek business community to see businessmen and politicians from FYROM and Turkey" taking part in such conferences.

"We are convinced that economic relations with Skopje will soon return to their good old level," he said. "The big and accessible market of Turkey can and should give opportunities to businessmen to build bridges of friendship and help overcome the point less aggressiveness of our eastern neighbors, which naturally is detrimental to business co-operation in our region." Reviewing Greek business activity in the Balkans, Mr. Efthymiadis pointed out that Greece was at the top of the list with respect to purely foreign companies in Bulgaria and fifth with respect to investments, while Greek exports to that country jumped by 43 per cent in the period 1993-1994.

In Romania, Greece was 12th with respect to number of companies and 13th with respect to investments, while exports remained stagnant in the 1993-1994 period.

In Albania, Greece was the second largest investor after Italy, while 60 Greek companies were operating in that country and exports to Albania jumped by 45 per cent in the period 1993-1994.

Albanian Labor Minister Enjell Dakli said his country had both the infrastructure and the capacity for an increase in foreign investments.

According to figures presented by Mr. Dakli, Italy was the number one foreign investor in Albania, accounting for 50 per cent of investments, followed by Greece with 20 per cent. Placed third and fourth were Turkey and the Former Yugoslav Republic of Macedonia (FYROM).

[5] President

In a message to the conference, President of the Republic Kostis Stephanopoulos pointed out the "new prospects that have been created for Greece to evolve into a transit center directly linking western and eastern Europe."

For northern Greece in particular, the message added, "conditions have been created for promoting wider developmental activities at international level."

Prime Minister Costas Simitis will address the conference today, while Foreign Minister Theodoros Pangalos and former Russian foreign minister Andrei Kozyrev are also scheduled to speak.

[6] US envoy predicts 'successful outcome' to FYROM name talks

US ambassador to Athens Thomas Niles yesterday predicted that negotiations between Athens and Skopje over a permanent name for the former Yugoslav republic would be successful.

"There will be a successful development in negotiations between Athens and FYROM, since there is no reason for this progress not to continue," he told a two-day Balkan business conference which began in Thessaloniki yesterday.

Mr. Niles said there had been substantive improvement and progress in Greece's relations with its neighbors over the past year.

"Many things have been achieved with the Former Yugoslav Republic of Macedonia," he said.

Russia's ambassador to Athens Valery Nikolayenko said Moscow endorsed efforts to normalize relations between Greece and FYROM.

Both diplomats spoke of the need for peace to prevail in Bosnia, stressing that stability in the wider region depended to a great degree on this.

Mr. Nikolayenko said the foreign ministers of the Federal Republic of Yugoslavia, Croatia and Bosnia would meet in Moscow at the end of the month to look at taking "corrective measures on the negative aspects of the (Dayton) agreement and for plans to b e made for the future."

Mr. Nikolayenko said there were complications in the peace agreement in Bosnia and indirectly criticized the West for arming the Moslems and Croats, saying that what Bosnia needed was aid for economic recovery.

Mr. Niles conceded that building confidence between the three sides was difficult.

Italian Ambassador Enrico Pietromarchi referred to the European Union's unified foreign policy, saying that "we are locating quite a few regions in which application of this policy constitutes a challenge, such as in the Balkans".

Italy is the current EU president.

"We must request the co-operation of Russia which can play a very important role in the region," Mr. Pietromarchi added.

[7] Kozyrev: Greece, Russia have joint role to play for peace in region

Former Russian foreign minister Andrei Kozyrev said yesterday he was optimistic about the role which Greece and Russia could play in efforts to consolidate peace in the Balkans and in the economic development of the countries of the region.

Speaking to reporters on the sidelines of the Balkan business conference in Thessaloniki, he said that Russia and Greece, as a member of the European Union whose economy is in good shape, could play a "leading" role in promoting economic co-operation among the Balkan countries.

Referring to Greek-Turkish relations, he said that the two countries should resolve their differences through negotiations.

"There is no other way to resolve the problems between the two countries except through negotiations," Mr. Kozyrev said.

He added the planned Burgas-Alexandroupolis oil pipeline was a political priority for Moscow and attributed the delay in its realization to "technical" problems.

[8] Arsenis sends premier letter on defense, current issues

National Defense Minister Gerassimos Arsenis has sent a letter to Prime Minister Costas Simitis setting out "thoughts and proposals" on the country's defense and other "current issues," government spokesman Dimitris Reppas said yesterday.

The spokesman declined to elaborate on the exact content of the letter but said Mr. Arsenis had requested the convening of "the competent government bodies."

Mr. Reppas made the statement when asked if Mr. Arsenis had asked Mr. Simitis to convene the Government Council for Foreign Affairs and Defense (KYSEA).

Commenting on the way in which Mr. Arsenis had decided to express his views, the spokesman said that telephone communication between ministers was more common than correspondence, adding however that "each person is responsible for choosing the way in which (he or she) expresses these views."

In his reply letter to Mr. Arsenis, Prime Minister Costas Simitis rejected his proposal for a meeting of KYSEA to discuss national matters.

According to sources, the defense minister had asked for the meeting prompted by last week's statements by Foreign Minister Theodoros Pangalos to a Turkish television channel.

In rejecting Mr. Arsenis' request, the same sources said, Mr. Simitis said he had discussed the issue with Mr. Pangalos, and referred the defense minister to him for clarifications.

Commenting on the issue, New Democracy party spokesman Vassilis Manginas said the relevant reports caused serious concern.

"If these things are indeed happening, they are inconceivable even for this government, which must clarify the matter immediately," he said.

[9] No secret talks during Imia stand-off, Gov't reiterates

Greece reiterated yesterday that there had been no secret agreement between Athens and Ankara concerning the recent stand-off in the Aegean over the rocky islet of Imia.

Replying to press questions, government spokesman Dimitris Reppas stressed that the only agreement concerned the disengagement of the two countries' forces in the area and a return to the status quo prior to the incident.

Mr. Reppas added that the Greek government had lodged protests with the United States and other countries regarding Turkey's disputing of Greek sovereignty, in order for them to exert pressure on Ankara.

The spokesman said that Greece's ambassador in Washington Loukas Tsilas had lodged a protest condemning Turkey's behavior in the region and Ankara's violation of international law. Asked by reporters whether his statements meant that popular Greek singer Dionysis Savvopoulos could hold a concert on Imia, the spokesman replied in the affirmative.

[10] Greek, Cypriot Parliaments to co-operate to see Turks, Denktash take responsibility for fate of war missing

The presidents of the Greek and Cypriot parliaments, Apostolos Kaklamanis and Alexis Galanos respectively, accused Turkish Cypriot leader Rauf Denktash and the Turkish government of committing war crimes after their meeting yesterday.

Mr. Kaklamanis and Mr. Galanos made the statement after a meeting in Parliament during which they pledged to launch a joint public information campaign through international agencies and Parliaments with the scope of bringing the issue of the Cyprus war missing to the forefront of international opinion, following Mr. Denktash's admission that the 1,619 missing had been summarily executed by Turkish Cypriot paramilitaries.

His statements, which he later tried to attribute to press distortion, drew outrage from the Greek and Cypriot governments who stated that Mr. Denktash should be referred to the International Court of Justice at The Hague for war crimes.

"Mr. Denktash is a war criminal," Mr. Kaklamanis said yesterday, adding that "attention should also be drawn to Turkey's responsibility."

"The responsibility is inseparable," Mr. Galanos said, adding that "these are organized crimes of the Turkish regular army."

The two men added that the Greek and Cypriot Parliaments will continue co-operation and efforts so that the international community will consider the war missing issue and assume its responsibilities regarding Turkey's war crimes.

[11] Greek unionists condemn conviction of Turkish writer

Greek bank and telecommunications workers issued a joint announcement yesterday calling for the immediate lifting of a 20-month suspended jail sentence imposed by an Istanbul state security court on Turkish author Yasar Kemal for two essays he wrote.

Mr. Kemal was charged with incitement and "separatist propaganda" and was found guilty on Thursday under the country's anti-terrorism laws for an article criticizing the Turkish regime and its Kurdish policies in a book of essays by intellectuals. The Turkish government has banned the book.

The announcement also calls on the Turkish government to respect human rights, international law and treaties, as well as the right of peoples to self-determination and independence.

[12] Talks underway over Croatian airport dues

Both Greek C-130 aircraft and aircraft of other countries participating with forces in the NATO operation to supervise peace in former Yugoslavia are obliged by Croat authorities to pay landing dues at the airports of Split and Zagreb as well as other amounts for services provided at their airports.

This was clarified by a National Defense General Staff representative yesterday in the wake of relevant press reports. He said that on the part of Greece consultations were taking place with NATO for a final settlement to the issue.

Other allied countries, such as Spain, have made similar protests. In the event the issue is not resolved, the continuation of Greek aircraft flights to Croatia as part of the mission assigned to them might become problematic.

[13] Premier, Pangalos brief Executive Bureau on FYROM developments

Prime Minister Costas Simitis and Foreign Minister Theodoros Pangalos briefed the ruling party's Executive Bureau on "developments and the new realities" in the issue of the Former Yugoslav Republic of Macedonia (FYROM), according to a statement by party Secretary Costas Skandalidis after the meeting.

Mr. Skandalidis said an in-depth exchange of views was held with the participation of all the members of the Executive Bureau.

He said the government was continuing its efforts in the framework of implementing the interim agreement on finding the most beneficial solution to the FYROM issue.

Replying to a questioner, Mr. Skandalidis said the issue of convening the Government Foreign Affairs and Defense Committee (KYSEA) was not raised.

The government spokesman, meanwhile, yesterday denied press reports that secret consultations were being held between Greece and FYROM on the issue of the name of the one-time Yugoslav republic.

Dismissing the reports, spokesman Dimitris Reppas said "there is no secret consultation between the Greek government and the government in Skopje on any issue, much less on the name issue."

The spokesman added that Greece and FYROM remained steadfast on their known positions, adding that Greece "will do its best to serve our national interests."

Main opposition New Democracy party leader Miltiades Evert said yesterday that Greece must not "deviate" on the issue of the name from the decision taken during a 1992 political leaders council chaired by then-president Constantine Karamanlis.

That meeting had decided that a name containing the word "Macedonia" or its derivative was unacceptable.

Mr. Evert was speaking on his arrival at Macedonia Airport in Thessaloniki, where he attended a dinner held at the Balkans business conference.

Mr. Evert said that it is not possible for Greece to appear ready to back down when the FYROM side, in their statements to the United Nations, remain fixed in their positions.

Mr. Evert added that it was a mistake of the government to "present false dilemmas" to the Greek people, such as the acceptance of either the name 'New Macedonia' or plain 'Macedonia'. He said that this weakened the national front and gave Skopje the impression Greece may back down.

Political Spring party spokesman Notis Martakis yesterday reiterated the party's proposals for a referendum, a Parliamentary debate and the convening of a political leaders' council on the issue of FYROM's name.

"Voting in Parliament should be open so that before Greece signs, each deputy will have first assumed his responsibilities to the full," Mr. Martakis said.

He further criticized the government of play-acting, accusing it of "pretending to want dialogue on the domestic front," while, "promoting a composite name solution abroad."

Communist Party of Greece (KKE) Secretary-General Aleka Papariga yesterday called for the full development of relations between Greece and FYROM, independently of the name issue.

Ms Papariga expressed disagreement with "a composite solution," saying that the people needed to be adequately briefed on the issue.

She also expressed disagreement at the name 'SlavoMakedonia' adding that although the name appeared to be serving Greece's interests it did not reflect the demographic composition of the neighboring state which was not entirely populated by Slavs.

[14] FYROM representative 'optimistic'

In Thessaloniki, meanwhile, the head of FYROM's liaison office in Athens Ljupco Arsovski said he was "optimistic" about a speedy resolution to the matter.

Mr. Arsovski is among diplomats attending the two-day Balkan business conference.

Meanwhile, the president of the Federation of Northern Greece Industries (SEBBE) Nikos Efthymiadis dismissed press reports that FYROM's prime minister and foreign minister, Branco Crvenkovski and Ljubomir Frckovski respectively, would be in Thessaloniki to meet with their Greek counterparts.

Mr. Efthymiadis said that a FYROM delegation had never been invited to the conference therefore but added: "I must convey the sincere expectation of the overwhelming majority of the business community of Northern Greece to have the opportunity to see, soon, in this hall, businessmen and politicians from FYROM."

[15] Premier, education minister meet with university officials

University rectors yesterday aired their grievances to Prime Minister Costas Simitis and Education Minister George Papandreou during an hour-long meeting yesterday.

They asked for an immediate start to European Union financing, a speedy ratification of the law establishing their flexibility and autonomy, and salary increases for staff.

The prime minister promised he would present proposals for tackling the problems at a new meeting at the end of April.

Mr. Papandreou pointed out that the promises made by the former prime minister Andreas Papandreou at his meeting with the rectors last autumn had began to be implemented, and that soon all problems would be solved.

Commenting on the meeting, the New Democracy party said in a statement that the prime minister should have been aware of university problems.

It added that it considered as inconceivable that the government was unable to meet the bill for education, when it "let prisons be destroyed at a cost of billions," while tens of billions were lost from Community educational programs due to the education ministry's "incompetence" in absorbing such funds.

[16] 28 inmates still at large after Corfu prison break-out

Twenty-eight inmates remained at large yesterday out of a group of 44 that escaped over the weekend from the Corfu prison by tapping into a mediaeval tunnel system under the prison through the facility's sewer lines.

Police and coast guard units continued intensive search efforts for the escapees, who took advantage of a prisoners' takeover of the prison to stage their breakout.

Authorities believe the inmates escaped between 7 and 8am Sunday, a fact they say leaves the escapees too short a time-span to have left the island. They said they were also looking into whether the inmates had outside help.

Meanwhile, 65 prisoners at the facility were transferred to other jails around Greece yesterday, as the Corfu correctional unit sustained massive damages in the week-long uprising, with one estimate calling for 800 million drachmas needed to repair the prison. Some 51 inmates remained at the facility. As far as the captured inmates are concerned, a Corfu court sentenced the 16 to one year extra incarceration on the escape charge.

As part of search efforts by authorities, suspects were rounded up around the island to verify their identification, while a police helicopter has also been stationed on the island.

In a news conference yesterday, the Corfu prefect blamed the state for the uprising, hinting that a police presence should have been more dynamic during the incident and that inmate transfers should have been conducted earlier. The police chief on the island, however, claimed security measures around the prison were adequate. Justice Minister Evangelos Venizelos has also assigned responsibilities over the matter.

Two public schools adjacent to the prison remained closed yesterday, while they will stay closed until tomorrow following a parent association decision.

The unlikely site for a correctional facility is a more than 150-year-old British colonial-era prison/guardhouse built on the ruins of a Venetian stronghold. At least 17 uncharted tunnels and underground passages run beneath the prison, reports state.

[17] Gov't spokesman

The government said yesterday that there was no issue of attributing political responsibility over the handling of the recent prison riots which climaxed with the Corfu prison escape on Sunday.

"The problem concerning the escape from Corfu jail is considered to be small compared with the major problem over recent days, such as the damage (to prisons) and the taking of hostages whose lives were in danger," government spokesman Dimitris Reppas s aid.

The spokesman said, however, that "we are not happy with these developments and responsibility will be attributed where it belongs."

Mr. Reppas denied reports of friction between Justice Minister Evangelos Venizelos and Public Order Minister Costas Geitonas, describing co-operation between the two ministers as "satisfactory."

The spokesman added that the two ministers had handled the prison riots problem in an effective manner.

He said that the government would shortly undertake initiatives concerning "the necessary institutional changes" in the prison system and take steps to avoid similar occurrences.

[18] Eurodeputy says Greece should look to press for a federal EU at the IGC

Ruling PASOK's Eurodeputy Dimitris Tsatsos yesterday said that Greece should not face the European political union as a "dilemma, but as a bet which must be won."

Greek efforts during the inter-governmental conference (IGC) to revise the Maastricht Treaty should focus "on the pursuit of a deep federal bond."

Mr. Tsatsos made the statements during a speech on "The great institutional issues and the 1996 inter-governmental conference - PASOK's positions."

He said that PASOK had taken the initiative to inform the public about developments in institutional issues, ahead of the start of the IGC in Turin on the 29th of this month.

In a report to be submitted to the alternate foreign minister, George Romeos, Mr. Tsatsos includes a host of proposals which have already been endorsed by the European Parliament, such as opposition to the concept of a two-tier Europe, cultural equality of states and protection of official languages and borders.

Mr. Tsatsos noted that the European Parliament was expected to vote on an amendment tomorrow regarding territorial integrity and border protection, in view of the IGC.

[19] Evert leaves for Paris today

Main opposition New Democracy (ND) party leader Miltiades Evert will fly to Paris today to attend the 17th conference of European Democratic Union party leaders. During his stay, Mr. Evert will also attend an official dinner to be given by French Prime Minister Alain Juppe.

[20] Stockbreeders continue violent protests in Lesvos, Serres

Stockbreeders on the island of Lesvos stormed the building housing the Ministry of the Aegean yesterday afternoon, killing their animals and causing damage to the ground floor.

The stockbreeders had held a rally outside the Mytilini State Theater earlier in the day, demanding higher milk prices, a ban on the import of cheese products and the absorption of local feta production.

Vice-President of the Union of Agricultural Cooperatives of Lesvos Stavros Skopelitis said that the income of the island's stockbreeders had fallen by almost one billion drachmas, and added that milk prices have fallen to 130-140 drachmas, compared to 2 30-240 drachmas last year.

During the rally, a group of stockbreeders broke through the theater's entrance tills, spilt milk in the entrance and slaughtered two lambs inside the theater.

Following the rally, over 2,500 stockbreeders proceeded to the closed ministry building. A group forced the lock with a hack-saw, while others spilt milk in the building's corridors and hung two lambs in the entrance.

The stock-breeders stated that they would not leave the ministry building until a date had been set for them to meet with Agriculture Minister Stephanos Tzoumakas.

In Serres, stockbreeders demanding better prices for milk slaughtered sheep and poured large quantities of milk outside the regional governor's offices despite efforts by police to stop them.

The stockbreeders blockaded the city center with tractors and agricultural equipment at noon and delivered a resolution listing their demands to the local prefect, Antonis Karypidis.

Their demands also include a ban on imports of white cheese from third countries, preference for their sheep and goats over the Easter holidays, combined with limited imports, and a period of grace for paying off debts owed to the Agricultural Bank of Greece.

[21] Development minister: Greek electricity company looks at expanding to Balkans

Greece's Public Power Corporation (DEH) will be able to participate in joint ventures with other Balkan corporations in the production of electricity, Development Minister Vasso Papandreou announced yesterday.

Speaking to reporters following a meeting with mayors of the broader Thessaloniki region, the minister said the government would soon establish the appropriate legal framework enabling DEH to create subsidiary companies for the formation of joint ventures with other Balkan corporations.

Ms Papandreou said demand for electricity production in the Balkans would increase in the coming years and said there were vast co-operation possibilities on energy production with countries in the Balkans, Eastern Europe and East Asia, rich in natural energy sources.

"Despite their natural energy reserves, these countries are short of electricity. Our country, located in a privileged geographical position, could assist in this direction," she said.

Referring to energy issues in northern Greece, Ms Papandreou said the government would promote all scheduled investments in the polypropylene production unit and the gold production unit, adding that all necessary measures for protecting the environment had been taken.

[22] Greek exports to France slide, report reveals

Greek exports to France have fallen in past years, despite the fact France is one of the biggest and richest countries in the world and is a traditional market for Greek products.

This was the conclusion drawn in a relevant study conducted by the Panhellenic Federation of Exporters.

The study found that the percentage of Greek exports to France fell significantly in the past five years and while this trend appears to have reversed last year, it does not seem to have changed the overall picture.

The unfavorable trend in Greek exports to France is mainly due to general problems Greek exports have been faced with in developed western markets in past years (poor competitiveness due to the hard drachma and unsatisfactory quality).

The almost total absence of fresh fruit and vegetable exports from Greece is noticeable in a market importing significant quantities of such products from other Mediterranean countries. The participation of consumer goods in Greek exports to France is also minimal.

The participation of aluminum, cables and crude oil and production co-operation is strong, although these products are those showing the greatest decrease.

The study stresses the importance of trade relations with France which should not be underestimated due to impressive Greek performances in other regions such as the southern Balkans, the Black Sea and the eastern Mediterranean.

[23] OTE share capital increase gets go-ahead

The Capital Market Committee yesterday gave the green light to an increase in the Hellenic Telecommunications Organization's (OTE) share capital through public registration, granting permission for about 20 million shares to be issued at a price to be set in the near future.

Prime Minister Costas Simitis is expected to chair an inner cabinet meeting to determine the sale price soon.

The issue is considered delicate since the consent to the OTE flotation by the main opposition party, according to New Democracy leader Miltiades Evert, will depend on the issue price, but also on the response of foreign investors.

The price is expected to be approximately 4,000 drachmas. Initial registration will take place March 26-29, while the trading of shares on the Stock Exchange is expected to begin end of April or early May.

[24] EOT aims to get more German holiday-makers to Greece this year

Greece aims to attract five per cent more German tourists this year, Greek National Tourism Organization (EOT) Secretary-General Vassilis Kourtesis said at a press conference in Berlin on Sunday.

The event was organized in the context of the International Tourismus Boerses fair that has drawn some 5,000 exhibitors from 170 countries.

Mr. Kourtesis attributed his optimism to infrastructural improvements currently underway, and described the small six per cent reduction in overnight stays last year as conjunctural.

He added that EOT is making a coordinated effort on the advertising front, together with foreign tour operators, and for the development of special forms of tourism, such as hiking, visits to wetlands, and sea tourism.

New marinas are under construction in the Ionian - Southern Peloponnese - Cyclades sea route.

End of English language section.