A.N.A. Bulletin, 25/04/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 870), April 25, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Positive climate for Greek positions, Simitis says on end of tour

Prime Minister Costas Simitis yesterday said he was satisfied with the results of his visits to the United States and European capitals in the context of promoting Greece's national issues.

He was speaking at the end of what he called "the first of a series of visits to European capitals" which ended with his visit to Ireland and a meeting with his Irish counterpart John Bruton.

"We have created a positive climate in relation to our positions," he said, following talks with Mr. Bruton.

"We had a long exchange of views in a very good and friendly climate," he said adding that the Irish prime minister agreed that Greece could play an important role in the Balkans and the Middle East.

Mr. Simitis said Dublin was "favorable towards Greece's positions in relation to the Imia issue".

As Mr. Bruton explained, the Irish government would avoid taking an official stand on the issue in view of the fact that it will assume the European Union's rotating presidency on July 1 and in fear that such initiative might commit the Presidency.

Mr. Bruton was also positive regarding Cyprus's accession to the European Union.

He said a solution to the Cyprus problem should not be delayed adding that "procedures for the accession of Cyprus and Malta to the European Union must proceed."

The two men agreed on almost all issues on the agenda related to the revision of the Maastricht Treaty with Athens saying the new Presidency should take initiatives regarding the issue of employment.

Mr. Bruton, however, was reserved on security-related issues explaining that Ireland had kept a neutral position so far and adding that these issues needed careful handlings.

Asked to comment on the results of his international contacts, Mr. Simitis said that "everybody realizes the problems and accepts that they should be resolved."

Referring to the Imia issue, the prime minister said: "Everyone accepts the need to implement international regulations and international law, to avoid violence or threats of violence, and consider as the most appropriate solution the referral of the is sue to the International Court."

"Greece," the prime minister said, "is present and ready to undertake initiatives. We are present and willing to solve the problems."

Replying to a reporter's question during the press conference after his meeting with Mr. Bruton, Mr. Simitis said the Skopje issue was not stagnant, stressing that representatives of the two sides met regularly and that "there is negotiation."

Mr. Simitis returned to Athens late last night.

[2] Greek, Egyptian foreign ministers discuss bilateral and regional developments

The Egyptian foreign minister yesterday condemned Israel's continued attacks on southern Lebanon, saying they dealt a substantial blow to the fragile peace process.

"The present and continued Israeli attacks against Lebanon definitely militate against the peace process," he told reporters after a 90-minute meeting with Foreign Minister Theodoros Pangalos on bilateral issues and the situation in the Middle East.

Mr. Pangalos expressed satisfaction over the way the Egyptian government reacted and provided assistance to the victims of last week's attack by an Islamic fundamentalist group in Cairo in which 18 Greek tourists were killed.

Mr. Moussa, who arrived in Athens late Tuesday night for a scheduled two-day visit, made his first ports of call the two hospitals at which the mostly elderly survivors of last Thursday's attack are recovering.

Yesterday, he had successive meetings with National Defense Minister Gerassimos Arsenis, Mr. Pangalos and President Kostis Stephanopoulos.

He also expressed Cairo's displeasure over a recent Turkish-Israeli military co-operation accord. 'We disagree with the creation of axes in a sensitive region where we are trying to attain peace," Mr. Moussa said.

Mr. Pangalos agreed that "modern-day diplomacy is not exercised by creating axes," while noting that Israel has rejected that the accord meant the creation of a Turkish-Israeli axis.

"It remains to be seen in the future how this accord will be implemented," Mr. Pangalos said.

[3] Arsenis

Mr. Moussa also held talks with Mr. Arsenis on developments in the Balkans, the Middle East and the eastern Mediterranean.

Speaking to reporters after the meeting, Mr. Arsenis said Mr. Moussa was "fully acquainted with Greece's affairs and those of the broader region."

Describing the talks as cordial and friendly, Mr. Arsenis announced that his Egyptian counterpart was due to visit Athens in the immediate future in relation to the implementation of a defense accord agreed between the two countries last year during Arsenis' visit to Cairo.

Mr. Moussa described as "very important" his briefing on Greece's positions concerning the Balkans and eastern Mediterranean by Mr. Arsenis. He declined to comment on the recent Israeli-Turkish defense co-operation agreement and how this would affect balances in the eastern Mediterranean.

Mr. Moussa limited himself to saying the agreement was being examined by his country.

[4] Recourse to International Court over continental shelf issue may solve a number of problems, Romeos says

Alternate Foreign Minister George Romeos yesterday told an interview with the BBC Greek Service that if Turkey referred the issue of the delineation of the Aegean continental shelf to the International Court at The Hague, the verdict might also resolve the 12-miles issue.

Turkey has made repeated threats that if Greece exercised its right to extend its territorial waters from six to 12 nautical miles in the Aegean it would consider the act a cause for war. "If Turkey agrees to take the issue of the continental shelf to the International Court at The Hague the resulting verdict might also give a solution to the 12-miles issue," Mr. Romeos said.

The minister was accompanying Greek Prime Minister Costas Simitis on his visit to London and Dublin.

Mr. Romeos said Turkey protested Greece's right to extend its waters to 12 miles because it "claims a bigger part of the continental shelf than it is entitled to."

"Therefore, if the continental shelf issue is settled, the 12-mile issue may also be resolved," Mr. Romeos said.

Asked to comment on the possibility of a court verdict that would be against Greece's interest Mr. Romeos said that "nobody expects to win everything in court."

"Yet we consider, and this is why we insist, that on the basis of international regulations and international law, we will consolidate everything we own," he said.

"This pending issue must be solved and the only way for it to be solved is to take the issue to an international court," he added.

Asked to comment on internal opposition in the ruling PASOK party, he said that "opposing positions and views do not pose an obstacle (to the resolution of national issues)."

"They of course wear out the government's efforts in this direction," he added. "We believe internal opposition will end soon."

Asked to comment on the Intergovernmental Conference and the issue of the abolition of the principle of consensus, Mr. Romeos said Greece was willing to accept the principle of majority vote if the European Union accepted Greece's request for the institutionalization of the EU external borders and the consolidation of the clause for mutual assistance.

He said, however, there was little hope for the implementation of a mutual assistance clause "not only because the majority of the countries are unwilling (to proceed with it) but also due to the fact that the European Union does not have military forces, while the creation of a unified European army or the incorporation of the Western European Union into the European Union are not expected to materialize."

[5] Kornblum to meet premier, Pangalos today

Prime Minister Costas Simitis and Foreign Minister Theodoros Pangalos will have successive meetings with US Assistant Secretary of State for European Affairs John Kornblum this morning.

The US official, who arrived in Athens last night following his visit to Turkey, announced that he is visiting Athens as part of a regional mission intended to sound out all the sides and "use the friendship and support of the US in order to create progress."

Mr. Kornblum continues on to Cyprus after his discussions in Athens with the Greek leadership.

"It wouldn't be right," he said, "for me to comment or discuss my conclusions so far."

Asked to comment on statements made by Mr. Kornblum in Ankara concerning the Cyprus problem, government spokesman Nikos Athanasakis said that the government would listen to his views, noting that the Cyprus issue remained Greece's top foreign policy priority. Mr. Kornblum told a press conference in Ankara on Tuesday that the US desired progress to be achieved in regional problems and primarily the Cyprus problem.

In statements yesterday in Ankara, Mr. Kornblum said that the US was determined to make efforts for the resolution of Greek-Turkish problems.

Following talks with Turkish Foreign Minister Emre Gonensay, Mr. Kornblum described his contacts in Ankara as "positive" and expressed optimism that Greek-Turkish differences could be resolved, an ANA dispatch from Istanbul said.

[6] Meeting with Evert, Varvitsiotis

Main opposition New Democracy party leader Miltiades Evert met yesterday with Mr. Kornblum.

ND Vice-President and former defense minister Ioannis Varvitsiotis said the main opposition party's positions on Greek-Turkish relations and other Balkan issues were presented to the assistant secretary of state, adding that Mr. Kornblum said that he arrived without a specific proposal.

Asked if Mr. Kornblum will support the view that the Imia issue should be referred to the International Court of Justice at The Hague, Mr. Varvitsiotis said the US official reiterated the positions repeatedly expressed by US President Bill Clinton.

During the meeting, Mr. Kornblum was accompanied by the State Department's head of its southeastern Europe department and Washington's Ambassador to Athens Thomas Niles.

[7] Frckovski makes conflicting statements over name talks

Former Yugoslav Republic of Macedonia (FYROM) Foreign Minister Ljubomir Frckovski has made conflicting statements on the issue of resolving the dispute with Greece over the state's name.

After telling the Athens News Agency (ANA) that he was pessimistic over a resolution to the issue and that in any case the feud could be resolved without a change in his country's constitutional name, Mr. Frckovski told the FYROM parliamentary foreign affairs committee on Tuesday that in its negotiations with Greece in New York his country would maintain its position that "it cannot accept a composite name."

However, in a statement to the Moscow-based news agency Novosti, reported by Skopje's Macpress news agency yesterday, Mr. Frckovski reportedly said that "on the question of composite problems with Greece over the name it appears that we are achieving progress towards a mutually acceptable solution."

[8] Discussion on Moslem minority to be held at 'low level', US officials say

An open discussion on the human rights situation of the Moslem minority in Thrace is will apparently proceed this Friday in a Congressional hearing room.

However, according to officials responsible for the joint US Senate and House of Representatives' committee for security and co-operation in Europe, the discussion is being held at the lowest possible level without the participation of senators or Congressmen, but with Congressional staff and advisors. The meeting is thus transformed into a staff briefing and not a Congressional hearing, as originally planned.

In addition, a detailed report will not be issued on the meeting or the Moslem minority's situation, with only the minutes being taken.

The role of discussion coordinator will be assumed by a Helsinki Watch member and not by one of the two co-chairmen of the committee, Republican Senator Alfonse D' Amato or Congressman Christopher Smith.

The same committee in the past has dealt with the human rights situation of the rapidly decreasing Greek minority in Imvros and Tenedos and Istanbul, as well as the Kurdish problem.

[9] Iakovos protests

Archbishop Iakovos of North and South America yesterday sent a letter to President Bill Clinton's National Security Advisor Anthony Lake expressing his disappointment and discontent at the Congress' decision to exclusively debate the issues of human rights in Western Thrace while excluding the issues of Cyprus and Imvros.

The Archbishop noted that "the US Congress should not succumb to pressures by 'friends' causing additional problems to the US policy of good neighborliness and peace which should constitute a firm pursuit."

[10] Thracian metropolitans issue statement

Meanwhile, the four Orthodox Metropolitans of Thrace issued a joint statement yesterday in light of the Congressional discussion.

"As spiritual shepherds of Thrace's Christians, who among the three prefectures' residents total 73 per cent of the population, as opposed to 27 per cent of the Moslem minority, we declare towards every direction that we want peace in the region and that potential instigators of any disturbance will commit a tremendous crime against hundreds of thousands of Thracians if they in the end attempt such a thing. However, they will not succeed," the statement read.

[11] Greece signs protocols with Russia, Ukraine

Greece has signed protocols with both Russia and Ukraine for co-operation and exchange of antiquities exhibitions, it was announced yesterday.

The protocols were signed during a recent visit to Moscow and Kiev by a Greek culture ministry delegation.

Speaking to a press conference regarding the events which will take place in the framework of the protocols, ministry Secretary-General George Thomas said these included an exhibition in 1997 called "The Greeks in the East" presenting archeological findings belonging to museums in Russia and Ukraine.

Commenting on the treasure of Troy exhibition, currently on show at Moscow's Pushkin Museum, Mr. Thomas said Greece had the right to host the exhibition since it was part of Greek history and mythology.

[12] Mitsotakis strikes discordant note as Evert chairs meeting of new Political Council

New Democracy party leader Miltiades Evert yesterday chaired the first meeting of the party's newly reorganized Political Council.

Former prime minister Constantine Mitsotakis said after the session that he expressed "his deep anxiety concerning the future of the country and the party", and that he would participate in future sessions when important political issues were discussed.

Mr. Evert did not make any statements, while former minister George Souflias said there had been a useful discussion and another former minister, Yiannis Kefaloyiannis, said the party was on a positive course.

According to sources, Mr. Mitsotakis reiterated charges of exclusion and removal of cadres that led to a contraction of the party, and expressed anxiety on behalf of many deputies that they would be excluded from candidates' lists in the next election.

The same sources quoted the former premier as saying, "I could accept that due to the non-existence of the government we can win the elections, but 35 per cent is not enough".

Mr. Evert was quoted as saying that according to opinion polls, the party's course was good, and assured that all current deputies would be candidates in their constituencies, and that party Vice-President Ioannis Varvitsiotis and former Parliament president Athanasios Tsaldaris would be top of the state deputies' list.

Mr. Varvitsiotis countered the claims of contraction of the party, saying it was on a satisfactory course, and reminded Mr. Mitsotakis that, while head of the party, he had expelled the entire leadership of the party's youth organization (ONNED) for an insignificant reason.

"We must have clear positions, prove that we are a party of principles, and avoid populism," Mr. Souflias said, adding that "the party's unity is achieved when everyone assumes the responsibilities due to them".

Party spokesman Prokopis Pavlopoulos said that all cadres had agreed that the common aim was the achievement of an absolute majority at the next poll, and that the climate was good. He confirmed however that differing views had been expressed, adding that it would be strange if there was complete unanimity in a party comprising many different currents, as New Democracy was.

[13] Foreign policy debate set for early May

Political party leaders are to debate foreign policy at a special debate scheduled for Parliament on May 6.

The decision was taken after a discussion between Parliament President Apostolos Kaklamanis and party leaders. Another special debate is to take place on May 8 at party leader level on the subject of unemployment.

Meanwhile, Parliament is to discuss a proposal this afternoon to designate April 24 as a day of commemoration for Armenian victims of the Turkish regime.

A special event is to take place in Parliament today to mark the centenary of the death of Harilaos Trikoupis, the prime minister of Greece at the end of the 19th century. The event is to be attended by President of the Republic Kostis Stephanopoulos.

[14] Arsenis briefs party on defense issues

Defense Minister Gerassimos Arsenis briefed members of PASOK's parliamentary defense department yesterday on defense matters and on developments in the Balkans and the Middle East.

Mr. Arsenis said draft bills are expected to be submitted in Parliament next week regarding the promotion of officers and compulsory military service.

He added that officers' proposed payment rates had been approved by the defense ministry, and were awaiting approval from the finance ministry.

The draft bill on broad-based civil defense is expected to be submitted in Parliament sometime this May.

[15] Conference examines 'reality and the media'

A three-day conference entitled "The construction of reality and the mass media," organized by the communications and media department of Athens University, was officially opened yesterday.

In his presentation, American professor George Gerbner maintained the world in which we live is dominated by the media, particularly television. "Human beings are the only beings who live in a world made up of stories, and the manner of narration of the se stories constitutes the civilization of a nation," Prof. Gerbner said.

Those who spoke at the inaugural ceremony included the rector of the University of Athens, Education Minister George Papandreou, Athens Mayor Dimitris Avramopoulos and Parliament President Apostolos Kaklamanis, who came out in favor of a public dialogue with the media.

[16] Papazoi calms fears of accident at Kozlodoy

Environment, Town Planning and Public Works Under-secretary Elisabeth Papazoi appeared reassuring yesterday on the issue of the Bulgarian Kozloduy nuclear reactor after reports that the Soviet-era reactor constituted an immediate danger to Greece.

The environmental organization Greenpeace said Tuesday there had been three radioactivity leaks in the period 1990-1993 at the plant, while the International Atomic Energy Agency (IAEA) said there was a 27 per cent possibility of a nuclear accident taking place there.

Ms Papazoi met yesterday with the director of the Institute of Nuclear Technology and Radiation Protection, from which the Greek Greenpeace branch received its information.

Ms Papazoi said that an accident occurring at the plant is the worst case scenario, and is one that the Institute considers to be highly unlikely to happen. She added that Greenpeace spoke of an accident being possible in Kozloduy's modern reactor, which experts consider to be completely safe.

Ms Papazoi pointed out that the percentage of leaked radiation quoted is based on information from the 1970s and is no longer scientifically valid.

Referring to the Greenpeace announcement, which said that an accident at the reactor could cause up to 132,000 deaths from nuclear fallout, Ms Papazoi said that this would only be possible if the radioactive cloud traveled straight to Athens and it rained when the cloud was directly over Athens, without any measures having been taken for the population's protection.

Ms Papazoi concluded that if all these conditions were met, which she and the Institute's director, Mr. Antonopoulos, consider to be touching on science fiction, she said there will be a possibility of thyroid cancer in 132,000 residents in 80 years' time.

[17] Efforts to contain seepage from sunken ferry continue

Efforts to pump chemicals and lubricants from the half-sunken ferry boat "Poseidon Express" continued yesterday, with authorities noting that no pollution so far has been spotted seeping from the ship. The vessel overturned last week in the port of Paros. The pumping of fuels and lubricants has been completed from the upper decks, with efforts now centering on the engine room, where most of the chemicals and lubricants are located.

According to a merchant marine ministry announcement, efforts to remove potential pollutants will be completed by today, with the fuel storage tanks next in line. In addition, an operation has begun to raise the vessel, and is expected to be completed by May 15.

[18] Lesvos to host ecological symposium tomorrow

A symposium will be held in Lesvos tomorrow and Saturday with the participation of scientists aiming at projecting and protecting the ecosystem of the island's fossilized forest. The symposium will also focus on the paleontological findings in the Aegean islands, the region's seismic activity, as well as the protection of the nature's geopolitical monuments.

The construction of the Museum of Natural History of Lesvos Fossilized Forest is expected to be completed in spring of next year. The symposium is organized by the museum in co-operation with the Geotechnical Chamber and will be held under the aegis of the culture and Aegean ministries. The museum's curator, geologist Nikos Zouros, told a press conference yesterday that the museum would also support research programs.

[19] Turkish immigrant smuggler arrested near Samos

Greek authorities arrested a Turkish man trying to smuggle 13 illegal immigrants into Greece off the island of Samos at dawn yesterday barely 48 hours after a similar incident in the Aegean that prompted Greece to accuse Ankara of "harboring slave-traders".

"Once again it has been confirmed that Turkish citizens are smuggling illegal immigrants into the country. But the Turkish government is trying to present them as innocent fishermen who are shot at and chased by the (Greek) coast-guard," Merchant Marine Minister Kosmas Sfiriou said.

"At some point, Turkey must realize that it also has obligations vis-a-vis international law and take firm measures against this illegal trade," he added.

Greece on Tuesday rejected Ankara's protests over an incident Monday near the island of Kastellorizo when a Greek patrol boat fired warning shots in the air after a Turkish speedboat inside Greek territorial waters refused inspection after disembarking eight illegal immigrants on the island.

Ankara claimed that the man was a fisherman who was wounded, but Greece brushed off Ankara's claims, saying that Turkey had hastened to adopt the smugglers' version of the story instead of investigating the facts.

In yesterday's incident, the captain of a Greek patrol boat radioed the skipper of the Turkish vessel to stop. "But the Turkish boat sped off, maneuvering dangerously," Samos harbor authorities said.

The Greek coast-guard vessel made the boat stop by shooting at and destroying its outboard motor.

They said the Turkish vessel was accosted after being chased by the Greek patrol boat, and the skipper and the 13 illegal immigrants were arrested.

The illegal immigrants, said to be Iraqis and Kurds, told harbor authorities they had paid $1,500 each to the Turkish skipper to ferry them from the Turkish coast to Samos.

The Turkish skipper was later identified as Georgi Amatzi who told harbor authorities that he was a resident of Istanbul.

His six-meter speedboat bore no distinctive markings.

Government spokesman Nikos Athanasakis accused Turkish smugglers of ferrying some 23,000 illegal immigrants into Greece between 1992 and 1995, most of them Iraqis, Pakistanis, Turks, and Bangladeshis, and said Turkey was doing nothing to cope with this problem on Tuesday.

[20] Greece's Armenians commemorate 1915 genocide

Hundreds of members of Greece's Armenian community yesterday staged an annual protest march to the Turkish embassy in Athens to commemorate the 1915 genocide in which some 1.5 million Armenians died.

As every year, the march was preceded by a religious service at the monument to the genocide in the suburb of Nea Smyrni.

During the march, a delegation of Armenian youths handed to Parliament President Apostolos Kaklamanis a petition with 6,500 signatures requesting that April 24 be officially designated memorial day for the victims of the genocide. Another delegation pinned a statement on the door of the Turkish embassy calling on Ankara to condemn the genocide, to return to the Armenian people their traditional homeland which it is illegally occupying, to stop arming Azerbaijan, to lift its blockade of Armenia and to cease its "conti-nuous provocations against Greece in the Aegean and against Cyprus."

Members of the Armenian community also marched to the Turkish Consulate in Thessaloniki.

The Armenians issued a resolution renouncing "the abhorrent crime of genocide which Turkey committed against 1.5 million Armenians."

[21] Encouraging start to World Cup qualifying matches

The national Greek soccer team yesterday made a victorious start to their qualifying games for the 1998 World Cup, beating Slovenia 2-0 at the Olympic stadium in Athens.

Scorers: Batista (56), Nikolaidis (67).

[22] Fuel prices slashed

The Public Petroleum Corporation (DEP) announced yesterday that as of today, fuel prices will be slashed by 2.5 drachmas per liter for gasoline and 3.9 drachmas per liter for diesel.

A drop in the world price for crude oil and a stronger drachma vis-a-vis the US dollar are cited for the price decrease.

Based on the announcement, price ceilings for zone 1 will be 220.5 drachmas per liter for super and 204.5 drachmas per liter for unleaded. In zone 2, prices stand at 223.5 and 207.5 respectively, and in zone 3, 225.5 and 209.5.

[23] Development minister comes out against casino in Attica prefecture

Development Minister Vasso Papandreou said yesterday that she would recommend to the Inner Cabinet that no license be granted for the operation of a new private casino in Attica, in effect overturning positions announced by the government just three weeks ago.

Ms Papandreou told a press conference that she was determined to press the government to adopt a new policy on the issue of casinos, since she considers the present policy to be in conflict with the ruling party's 1993 election pledges.

She said she would recommend that no new license be given for a new private casino in Attica, in an effort to reverse an Inner Cabinet decision earlier this month which revoked the license already granted for the Flisvos casino but which pledged to hold a repeat tender for the establishment of one or two private casinos in the prefecture.

Ms Papandreou said she would also recommend that the Parnitha casino in Attica remain state-owned, coupled with an international tender to appoint efficient private management as a means of offsetting to some extent the government's decision not to privatize the casino.

Since new conditions would then be created, Ms Papandreou added, which would favor the casino already operating at Loutraki, efforts should be made to renegotiate the relevant contract in order for the state to increase its revenues. Ms Papandreou also declared her intention to restrict, through amendments to existing legislation, the admission of citizens to the casinos in order to lessen social repercussions.

On the issue of the Flisvos casino, Ms Papandreou said the state was not obliged to pay compensation over and above the 11 billion drachmas at interest paid by the joint venture to which the license had been granted.

She challenged the joint venture to seek recourse to any court it deemed appropriate.

Ms Papandreou said the Rhodes casino would go ahead but did not clarify the situation with respect to plans for casinos in Patras, on Syros and elsewhere.

The minister stressed that the government was not prepared "to gamble its principles and conscience on the roulette table," adding that the government's pre-election pledge was to base development on productive forces "and not casinos and stock exchange capital."

Acknowledging that for some regions of the country, casinos were an element of the tourist infrastructure, Ms Papandreou in general expressed her opposition, describing them as "easy profit sectors which trade in hopes."

[24] Papantoniou: Gov't determined to implement convergence program

National Economy Minister Yiannos Papantoniou said yesterday the government did not have the ability to even consider easing economic policy and replacing it with a "benefits" policy.

On the contrary, he said, the government is determined to implement the convergence program without deviations and, at the same time, not to approve any expenditure apart from those anticipated by this year's budget (with the exception of that concerning low pension earners).

Standing in for Prime Minister Costas Simitis - who is visiting London and Dublin - at the Grande Bretagne Hotel last night at a business awards ceremony by the Athens Chamber of Commerce and Industry (EBEA), Mr. Papantoniou accused the opposition of "dynamiting" the good climate prevailing in the economy and exaggerating the negative conjuncture experienced by the Greek economy over the past two months, which he said was "transient by nature."

Mr. Papantoniou assured the business world that progress in the economy "will continue despite difficulties we are facing at present."

He referred to "an unusually unfortunate coincidence of negative conjunctures on the inflation front", predicting that inflation would soon return to its downward trend and decrease to 7.5 per cent on average by the end of the year, meaning about two percentage points less than last year, but a little higher than the initial 7 per cent target set for 1996.

Mr. Papantoniou said developments on the state deficit front would be definitely positive this year and decrease to 7.4 per cent of GDP, about two percentage points less than in 1995.

Moreover, due to the high rate of GDP and investment increases expected this year the real convergence of the Greek economy with the European Union would start in 1996, even marginally.

Mr. Papantoniou praised businessmen for the responsibility and creativeness they were showing, but said that society expected from them "appropriate management of income and wealth", adding that "there are wider investment possibilities which have not yet been utilized."

[25] SEB warns of the consequences of relaxing economic policy

At a press conference yesterday, Federation of Greek Industries President (SEB) Jason Stratos noted a relative relaxation in efforts to achieve the targets set in the state budget, and that conjectural factors and a recent boost in consumer credit were contributing to a rekindling of inflationary pressures.

He said the general picture of politicians showed that they did not all believe in the need for discipline in the economy.

He reiterated the view that the government had the correct intentions, but lacked the courage.

"We have observed difficulties in implementation, and believe that government policy must convince us that it has the capacity to impose the solutions required," he said.

Other SEB officials criticized what they called the relaxation of incomes policy in the public sector through the practice of paying additional benefits, as the ministers of national economy and finance had approved for their staff.

They also drew attention to difficulties in the implementation of the operational program for industry and energy as part of the Community Support Framework, as every new industry minister modified the relevant institutional framework and decisions.

SEB has already called for the setting up of an institutional organ which will monitor whether every new law is conducive to competitiveness in the economy. Yesterday, its representatives again called for emphasis in fiscal rationalization, maintaining the stable drachma policy, utilization of public assets, and the sell off of public sector activities that can be undertaken by private concerns, such as energy production, transport, local government, the Hellenic Industrial Development Bank (ETBA) and other banks.

[26] Papantoniou to chair meeting on economy today

National Economy Minister Yiannos Papantoniou will chair a meeting today to examine the course of the economy and the latest developments in inflation.

The meeting will be attended by all ministers and undersecretaries with economy-related portfolios.

Also to be discussed will be the repercussions of inflation on interest rates and the present climate in the market which is causing some concern to the government's economic and finance ministers.

Other issues on the agenda are the public debt, the public finances deficit and unemployment.

[27] Need to modernize banking industry stressed at Thessaloniki conference

Union of Greek Banks (EET) Secretary-General Ioannis Manos stressed the need to modernize the Greek banking industry.

Addressing a conference on "The Greek banking system and its development in Balkan and Black Sea countries" in Thessaloniki yesterday, Mr. Manos said the Greek fiscal system needed to reform the taxation of non-fixed assets, improving accounting practices in the evaluation of securities and derivatives products and improving bankruptcy laws.

Mr. Manos said a national payments system should be created and a clear-cut framework of exercising monetary policy and means not harming commercial banks should be determined.

Referring to modernization, he said Greek banks should maximize their indicators, improve the quality of their treasury and handle risks more effectively.

Mr. Manos expressed certainty that the Greek banking sector could successfully confront challenges emanating from deregulation and a more competitive environment.

Minister of Macedonia and Thrace Phillipos Petsalnikos also addressed the conference, stressing the need to define a new strategy in the banking sector with flexible organization.

[28] EOT announces new cheaper holiday program

A new program by the Greek National Tourism Organization (EOT) entitled "Inexpensive Vacations" hopes to stimulate domestic tourism and benefit residents, expatriates and European Union citizens, regardless of income levels.

Some 206 hotels and tourism businesses encompassing practically every category are taking part in the program from April 1996 until next March. In addition, 21 "Xenia" resorts operated by EOT, 14 traditional settlements, 17 campsites, six yachting firms and a cruise line are also participating, with discounts between 30 and 50 per cent off regular prices provided.

Accommodations are located throughout Greece, including the Dodecanese, Cyclades, northern Aegean, Evia, Magnisia, the Ionian isles, Halkidiki and others.

Conditions for the domestic tourism program are for reservations by a group of at least four individuals for a minimum of two stayovers.

Tourists entitled to the offer can directly contact the management of the participating firms, while a list of all those businesses can be obtained from domestic and social tourism departments in EOT's regional offices, at prefectural offices, tourist police stations and information desks of central municipalities.

[29] News in Brief

- The giant US-based telecommunications conglomerate Motorola has decided to expand to Greece, according to a company press release yesterday. The company, which first inaugurated the mobile phone worldwide, has reportedly been impressed with the rapid growth of the cellular industry in Greece. The growth rate is higher than the corresponding rate of France or Spain, with mobile phone subscribers in Greece reaching 330,000.

- The Hellenic Telecommunications Organization (OTE) announced yesterday that it will transform some 2,000 analog telephone lines into digital ones in the Schimatari area.

- The Hellenic Arms Industry (EBO) is participating in a defense products and services DSA '96 exhibition (Defense Services Asia) organized for the fifth time in Kuala Lumpur, Malaysia, together with other Greek defense industries. The exhibition started on Tuesday and will last until April 26.

- Merchant Marine Minister Kosmas Sfiriou told a press conference yesterday all the ministry's services will be housed in a building belonging to the Piraeus Port Authority (OLP). Mr. Sfiriou said the new building was located in the "Akti Vasiliadi" region which is an extension of the main port. It has four levels with a total area of 28,500 square meters.

- Greek charge d'affaires in Belgrade Mihalis Spinellis distributed Greek textbooks to third-grade pupils at "Ayios Savvas" primary school in Belgrade yesterday. "Ayios Savvas" is teaching Greek as a compulsory foreign language for the second academic year, and is possibly the only school in Serbia to being doing so, Natasha Rasoulovic, the school's headmistress, said.

End of English language section.