A.N.A. Bulletin, 11/04/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 860), April 11, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Simitis calls Greece a springboard for Balkan investment, development

Prime Minister Costas Simitis yesterday called on American and Greek-American businessmen to invest in Greece and take advantage of the opportunity to actively participate in the new era of "development, peace and prosperity in the Balkans and neighboring countries," according to an ANA dispatch from New York.

Speaking at a luncheon given in his honor by the Joint Greek-American Business Council at the city's Museum of Contemporary Art, Mr. Simitis said Greece was a "unique" member of the European Union since it maintained extensive economic and political cooperation with other Balkan states and countries of eastern Europe, while having very good bilateral relations with the Middle East.

The Greek premier, on the third day of his official visit to the United States, stressed that Greece was well prepared to actively contribute to prospects for economic development and participation in new markets emerging in the region.

In particular, Mr. Simitis referred to the close ties of friendship and co-operation with Bulgaria, Albania and Romania and to the gradual development of a similar relationship with the Former Yugoslav Republic of Macedonia (FYROM).

He noted that the planned reconstruction of Bosnia and the lifting of the embargo against Serbia created great opportunities for trade activity in the region.

Foreign investors and US companies in particular, he said, could participate in joint ventures with Greek firms already operating in Bulgaria and Romania and contribute to the economic development of the Balkans and eastern Mediterranean.

Mr. Simitis said major infrastructure, energy and transport projects in northern Greece and neighboring countries would greatly facilitate access to the regional and large markets of central and eastern Europe, while planned oil and natural gas pipelines would present opportunities for investment and boost economic activity in general.

The experience which Greece has gained in the Balkans, he added, would prove useful in creating a similar environment for investments in the Middle East.

"Greece has been in good terms with all nations in Middle East and bilateral trade has always flourished," he added.

"Greece is poised to play a key role in the economic development of the Balkan region and the eastern Mediterranean, and foreign investors are invited to have their share in this perspective."

He added that although "Greece is a privileged route to other markets," it is also "an expanding market itself."

Regarding growth prospects in the country, Mr. Simitis added that "as a result of a stabilization effort, we achieved a remarkable improvement in the macroeconomic environment.

"Annualized inflation is now at 8 per cent, a record low since 1972. Primary deficits turned into surpluses and public debt was stabilized," he said, adding that this improvement resulted in a new era of growth.

"The Greek economy is growing at 2 per cent annually and we expect a rate of 2.5 per cent in 1996, thus surpassing the European average for the first time after five years," he added.

Turning to Greek-Turkish relations, Mr. Simitis expressed the hope that the situation would gradually improve, since Ankara would realize that peaceful co-existence and adherence to the principles of international law were fundamental prerequisites for securing economic development.

"The foreseen establishment of a customs union with the European Union will create new trade opportunities with Turkey. Greece is the only country in the European Union with direct road access to Turkey and is therefore the natural place for investing in transport infrastructure, storage facilities and financial services associated with new trade activity that is going to emerge," he said.

The premier also spoke of major investment opportunities offered by the Greek market itself, particularly in the sectors of tourism, entertainment, telecommunications, technology, transport and energy. The best argument for investing in Greece, Mr. Simitis said, was provided by the numerous foreign companies operating in the country "with very good results in profitability and business prospects."

"Another favorable factor that a foreign investor enjoys in Greece is political stability, social peace and a general climate of security and public order," Mr. Simitis said.

He added that a privatization program "is seen as a way to increase competition and improve performance of state enterprises," underlining that "Greece is today a country of new opportunities, with a growing economy, a modern institutional framework, skilled human resources and in the neighborhood of new markets in eastern Europe and the Middle East.

"The basic idea I suggest is for American companies in collaboration with Greek firms to jointly invest in Greece in order to take an early advantage of emerging markets in the Balkans," Mr. Simitis said.

In addition to the highly attractive investment incentives offered by the Greek government, Mr. Simitis also underlined the macroeconomic, political and social stability prevailing in Greece and called on US companies to invest and take advantage - in cooperation with Greek firms - of the opportunities presented by the new markets in the Balkans.

[2] Heightened US investment interest in Greece cited

US businessmen displayed an interest in investing in Greece following a meeting here yesterday with National Economy Minister Yiannos Papantoniou, according to reports.

Mr. Papantoniou, who is accompanying Prime Minister Costas Simitis on his working visit to the United States, held a series of meetings yesterday with American financial concerns and members of the Greek-American Business Council.

US businessmen reportedly showed interest in the telecommunication and banking sectors as well as in the construction of major projects, including the proposed Burgas-Alexandropoulis oil pipeline, the natural gas pipeline extension to Albania and prospects for construction of a power plant on the Greek-Bulgarian border to replace the controversial nuclear plant of Kozloduy in Bulgaria.

Mr. Papantoniou said US Treasury Secretary Robert E. Rubin elaborated on several reasons holding back US investors so far, during a meeting that was also attended by Greek Prime Minister Costas Simitis.

According to Mr. Rubin, US investors until now believed Greece was too small a market for their investments. He added, however, that "Greece has now become the center of a large market, expanding into the Balkans, the Black Sea area and the Middle East. "

Other reasons included public sector bureaucracy and suspicions concerning the stability of Athens' economic policy.

Mr. Papantoniou said the newly established Greek Investments Center will deal with all aspects of investing in Greece, adding that the government was now following a steady economic policy.

Mr. Rubin also raised the casino issue, asking whether the Greek government would change casino entrance regulations. Stricter measures would be inopportune for business by companies already operating casinos in Greece, Mr. Rubin claimed.

Mr. Papantoniou said such a likelihood is being studied for social reasons.

The Greek national economy minister also raised the inflation issue, forecasting a decrease, while he reiterated that the government aimed at a single-digit figure by the end of the year.

[3] Simitis winds up Washington leg of his US trip

Prime Minister Costas Simitis concluded a series of contacts yesterday with high-ranking US administration officials during his official visit to the United States.

Mr. Simitis had a working breakfast with US Secretary of State Warren Christopher yesterday morning focusing on Greece's role in the Balkans and Europe, Greek-Turkish relations and the Cyprus problem.

"We confirmed everything that was discussed with President Clinton," the Greek premier said after the meeting.

"We believe that an important step has been made and that our long-stated principles are being accepted, that there will not be use or threats to use violence, that international agreements and international regulations should apply, and that concerning the Imia issue, Turkey should refer its claims to the International Court at The Hague," he said, adding:

"The climate was exceptionally good and I believe steps have been made which will help in the direction of progress for further co-operation with the United States and the region in general," Mr. Simitis said.

State Department spokesman Nicholas Burns said "both Mr. Christopher and Mr. Lake totally supported the idea of Greece and Turkey holding discussions to solve not only the Imia issue but other matters as well, and we want the situation to move in this direction." He spoke after Mr. Simitis' meeting with Mr. Christopher and National Security Adviser Anthony Lake.

Mr. Burns expressed his satisfaction with the meeting and said the discussion centered on Greece's interest in a reduction of tensions with Turkey and Greek-American relations. Promotion of bilateral co-operation in the Balkans was also discussed in depth , with particular references to the role Greece can play in Bosnia and Albania.

Other matters broached during the meeting included US initiatives on the Cyprus issue, which will begin with presidential special envoy Richard Beattie's upcoming fact-finding mission to Athens, Ankara and Nicosia. That mission will be followed by a similar visit by Assistant Secretary of State John Cornblum.

He also said the Greek prime minister gave assurances of close co-operation with the United States in order to combat terrorism.

During the meeting, the US side brought up the subject of the alleged arming of Kurdish rebels by private organizations in Greece, although Mr. Burns stated there is no proof that the Greek government is reinforcing the Kurdish Workers' Party (PKK).

Following his meeting with Mr. Christopher, the Greek prime minister together with Foreign Minister Theodoros Pangalos and National Economy Minister Yiannos Papantoniou departed for New York.

[4] Opposition reaction

Meanwhile in Greece, the main opposition New Democracy party yesterday appeared to be adopting a wait-and-see attitude regarding the prime minister's visit to the United States.

Asked to comment on the results of Mr. Simitis' meeting with President Clinton, the secretary of ND's Parliamentary group Stavros Dimas said: "As all Greeks, I wish the prime minister success on his trip."

Nevertheless, sources said prominent party members considered that there were certain negative developments resulting from the meeting of the two leaders, citing as an example Athens' "acceptance" of the idea for dialogue with Turkey regarding the Athens Flight Information Region (FIR).

Conversely, former premier and honorary main opposition New Democracy president Constantine Mitsotakis described yesterday as "useful" the Greek prime minister's visit to the United States.

Speaking in Hania, where he arrived to spend the Easter holidays, Mr. Mitsotakis said Mr. Simitis' visit had "good results."

"In these difficult moments for the national issues it is beneficial to have good relations with the United States," Mr. Mitsotakis added.

However, he declined comment when asked about recognition of the Former Yugoslav Republic of Macedonia as "Republic of Macedonia" by the Federal Republic of Yugoslavia.

On his part, Political Spring (Pol.An) party leader Antonis Samaras called on the prime minister to "fully brief" the Greek people and Parliament on all aspects of the consultations he had in Washington with President Clinton.

He criticized Mr. Simitis for his statements regarding the eventuality of referring the Imia issue to the International Court of Justice at The Hague, and accused him of not raising the Skopje issue.

"It is obvious that we are being dragged in a gradual, but on all issues, dialogue with Turkey, putting on the negotiation table even the most paranoid claims of Ankara," Mr. Samaras added.

The Coalition of the Left and Progress (Synaspismos) also issued an announcement yesterday regarding Mr. Simitis' visit to the United States, saying "it brought to the surface the chronic weaknesses of Greece's foreign policy."

Synaspismos called on the government to consider initiatives to normalize Greek-Turkish relations.

According to the announcement, Synaspismos said the government should proceed "swiftly and decisively" on a final disengagement of foreign policy from the FYROM issue, with acceptance of a composite name.

[5] Romeos meets with Italian foreign ministry general secretary

Alternate Foreign Minister George Romeos held talks yesterday with Italian Foreign Ministry General Secretary Boris Biancheri on the issues related to the convening of the European Union-Turkey association council.

Mr. Romeos told Mr. Biancheri that the text to be drawn up by the Italian EU presidency concerning the association council, the date for the convening - which has not yet been set - must constitute a "declaration of principles" within the framework of the EU-Turkey customs union agreement and contain a special reference to the "good neighbor" clause.

The customs union was signed March 6, 1995. Consequently, Mr. Romeos added, the text cannot constitute the subject of negotiation with Turkey. Mr. Biancheri assured Mr. Romeos that Greece's positions were fully understood by the Italian presidency.

[6] Chief of General Staff to attend WEU synod

Air Force Gen. Athanasios Tzoganis, the Hellenic chief of general staff will travel to London next week to participate in the spring meeting of general staff chiefs from Western European Union member-states, it was announced yesterday.

[7] Expatriates' committees meet in US

The first meeting of the United States-based issues committees of the World Council of Hellenism (SAE) took place in Chicago last Saturday in order to define goals and strategies on a short and long-term basis.

The committees presented their programs, which will constitute the co-operation basis between Greek expatriates of North America and the governments of Greece, the United States and Canada.

The programs include establishment of the Greek Education Foundation and other education/cultural programs, the use of the Internet for the creation of a database, promotion of scientific research and know-how, creation of a business database and development of the role of Orthodoxy in Greek communities.

Christos Tomaras, chairman of the US department of the council, expressed satisfaction at the first meeting as well as the human resources comprising the committees.

"With the creation of the committees our organization structure has been completed," he said, adding: "we now proceed to a future of hard but effective work."

Meanwhile, SAE Chairman Andrew Athens visited the committees during a break and elaborated on the council's strategy concerning international issues. He added he was determined to draft a "global strategy" for expatriate Greeks.

[8] Premier to begin four-day visit to eastern Macedonia, Thrace in May

Prime Minister Costas Simitis will pay a four-day visit to eastern Macedonia and Thrace beginning May 2, during which he is expected to announce programs to combat unemployment and encourage local residents to remain in the region.

The regional governor for eastern-Macedonia and Thrace, Haris Tsiokas, said that the premier will be accompanied by ministers and undersecretaries and would visit all the prefectures of the region in order to be briefed about problems of the local population as well as to find solutions concerning issues of concern to residents.

It is the first time that a Greek prime minister will pay a four-day visit to the region and constitutes the fulfillment of a promise Mr. Simitis made to Thracians in Alexandroupolis in early April.

Mr. Tsiokas said Mr. Simitis would also announce a number of programs for immediate implementation in the sectors of tourism, light industry and small-and medium-size enterprises (SMEs).

[9] Stephanopoulos meets with Kaklamanis

President of the Republic Kostis Stephanopoulos held a meeting with Parliament President Apostolos Kaklamanis yesterday, it was announced. Sources said Mr. Kaklamanis briefed the president on his contacts during a recent visit to the United States.

[10] Kaklamanis holds talks with FYROM's representative in Athens

Parliament President Apostolos Kaklamanis held talks yesterday with the head of the Former Yugoslav Republic of Macedonia's (FYROM) liaison office in Greece on progress in the implementation of an interim agreement between Athens and Skopje.

The issue of Yugoslavia's recognition of FYROM as "Republic of Macedonia" was not raised during the meeting with FYROM diplomat Ljupco Arsovski.

But Mr. Kaklamanis told reporters afterwards that he agreed with the government's view that Belgrade's action was unfriendly to Greece, adding however, that it was expected "because of the commitments undertaken by the Serbs."

Mr. Arsovski extended an invitation to Mr. Kaklamanis to visit the FYROM Parliament.

[11] EU presidency welcomes Yugoslavia/FYROM recognition

The Italian presidency of the European Union yesterday welcomed the mutual recognition of Yugoslavia and FYROM, saying it was an important contribution to peace and security in the region and opened the way to recognition of the Federal Republic of Yugoslavia (FRY) by EU member-states as one of the successor states of the former Yugoslavia.

A relevant statement said the EU considered that its good relations with Yugoslavia and the latter's position in the international community would now depend on its constructive approach on a number of issues.

[12] Montenegrin political leaders criticizes Belgrade's action

The leader of Montenegro's People's Party said Belgrade's recognition of FYROM as "Republic of Macedonia" dealt "a harsh blow" to Greece.

Novak Kilibarda said the "blow against Greece" occurred in a period when its relations with Turkey have taken a turn for the worse. He said that although Yugoslavia maintained until now that Greece was the only and true friend of the Serbs and of Yugoslavia, Belgrade recognized "Macedonia" and had done so during Greek Prime Minister Costas Simitis' visit to the United States.

Belgrade's decision to recognize FYROM and establish full diplomatic relations prompted the displeasure of Athens, which said the move did not help efforts to establish stability and good bilateral relations in the region.

[13] Bulgarian president rejects agreement on Nestos River waters

Bulgarian President Zhelyu Zhelev yesterday rejected ratification of a Greek-Bulgarian agreement signed last December regarding distribution of the waters of the Nestos River between the two countries, Bulgarian presidency sources said.

Following the development, the Bulgarian Parliament, in which the Socialists have an absolute majority, is now expected to ratify the agreement again, in which case the president will have to approve its implementation.

According to the terms of the agreement, Bulgaria will let 29 per cent of waters flow to Greece for a period of 35 years. Mr. Zhelev, nevertheless, did sign the agreement between the two countries for the opening of three new border posts.

[14] Ankara reserved on upcoming meeting between Greek, Turkish foreign ministers

Ankara yesterday expressed reservations regarding results from a planned meeting between the Greek and Turkish foreign ministers scheduled to take place on the sidelines of the Black Sea Co-operation Council in Bucharest at the end o f the month. "More important are the issues to be raised during the meeting than the meeting itself," sources said.

The meeting was announced Tuesday by Turkish Foreign Minister Emre Gonensay, who said he was happy to meet his Greek counterpart "and star t a dialogue." Meanwhile, the Turkish foreign ministry said the Greek Ambassador to Ankara, Dimitris Nezeritis, conveyed to Mr. Gonensay a proposal by Greek Foreign Minister Theodoros Pangalos for a meeting in Bucharest.

[15] New legislation on antiquities possession drawn up

Culture Minister Stavros Benos yesterday presented a draft law on cultural heritage, drawn up to replace a 1932 law which served as a model for the antiquities legislation for numerous countries.

Mr. Benos said the draft law, drawn up by a 40-member committee during over a period of six weeks "comprehensively covers issues pertaining to the protection of cultural heritage from antiquity up to the present day."

He stressed that the new legislation covered "not only the works of man but also the natural environment in which they were created."

A provision of the draft law stipulates that "any person finding antiquities is obliged to hand them over to the state, while the archaeological service may, subject to terms and conditions, allow a natural or legal person to possess antiquities."

It adds that the right of possession ceases upon death of the possessor.

One innovation of the draft law makes it obligatory for "the collector or antiquities dealer to declare the full information of the previous owner."

The archaeological aspect of the draft law distinguishes between ancient monuments, which are considered to be "all movable and immovable works, objects, remains and artifacts in general which date from ancient times up to 1700," historical monuments dating from 1701 up to 100 years ago and contemporary monuments of the last 100 years.

Under the new law, foreign schools of archaeology will be permitted to conduct up to three excavations at the same time, enacting a circular introduced by late culture minister Melina Mercouri.

Mr. Benos said the new law was better than the previous one and responded to today's needs.

[16] New ceilings set for fuel prices

A new ceiling on fuel prices went into effect yesterday and will apply until next Wednesday.

According to a development ministry decision, the new price rates are as follows:

- In the greater Athens area and Thessaloniki prefecture, "super's" top price will be 219 drachmas per litre and 202 drachmas for unleaded.

- In zone 1 areas, 224 drachmas for super and 208 drachmas for unleaded. The first zone is comprised of the prefectures of Viotia, Fthiotida, Fokida, Aitoloakarnania, Evritania, Evia, Corinth, Argolida, Magnisia, Larissa, Karditsa, Trikala, Pieria, Grevena, Kozani, Kastoria, Florina, Pella, Imathia, Halkidiki, Kilkis, Serres, Kavala and Drama.

- In zone 2 areas, 227 drachmas for super and 213 drachmas for unleaded. The prefectures of Thesprotia, Ioannina, Hania, Rethimno, Iraklio, Lasithi, Xanthi, Rodopi, Evros, Corfu, Lefkada, Kefalonia and Zakinthos are in zone 2.

- In zone 3, 229 drachmas per litre for super and 213 drachmas per litre for unleaded. This zone is comprised of the prefectures of Kithira, Antikithira, the Saronic Gulf islands and the islands of Paxos and Antipaxos.

- In zone 4, the ceiling on fuel prices will be 219 drachmas per litre for super and 204 drachmas per litre for unleaded. This applies to the prefectures of the Dodecanese islands, the Cyclades, Hios, Lesvos, Samos, the Sporades, Limnos, Thasos and Samothrace.

[17] Greek weight-lifter picks up 3 gold medals in European championships

Greek world weightlifting champion Leonidas Sambanis won three gold medals yesterday in the 59-kilo category of the European Weightlifting Championships here.

The Greek champion won a gold medal in the snatch with 132.5 kilos and in the clean and jerk with 160 kilos, with a total of 292.5 kilos.

End of English language section.