A.N.A. Bulletin, 07/05/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 879), May 7, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Premier notes change in attitude in US, Europe following Greek diplomatic efforts

There has been a notable change in attitudes towards Turkey in the US and European capitals following the recent visits to Europe and the US, Prime Minister Costas Simitis told a special parliamentary debate on Greece's foreign policy last night.

"Whereas they recommended dialogue with Turkey in the immediate past, now they not only accept the proposal for a legal resolution, but are also willing to intervene with Turkey," he said.

He attributed this change to Greece's efforts, stressing that the first step in the gradual normalization of Greek-Turkish relations would be for Turkey to drop its claims to the Imia islets in the Aegean or to refer the issue to the International Court at The Hague.

"If this does not happen," he reiterated, "then Greece cannot consent to progress in the EU-Turkey customs union agreement".

Defending his government's handling of the Imia crisis, Mr. Simitis said that although the outcome of a conflagration would have been positive for Greece, thanks to the capabilities of its armed forces, "it would have led to a heated debate for a more comprehensive settlement under broader pressures, and the result could have been solutions least satisfactory for Greece".

The premier repeated several times that the aims of his government's initiatives was to end Greece's isolation, so that it may acquire a voice and be able to influence developments.

He noted that the initiatives had borne two important results:

"Our partners in the (European) Union have declared as incompatible with modern society the use or threat of use of violence in relations between countries, recognize international law and treaties as a guide, and the need for recourse to the International Court at The Hague or international arbitration when third countries raise territorial claims. So does Russia.

"A unanimous view is being formed at the (European Union) General Affairs Council concerning Imia, which can provide the basis for further pressure on Turkey," he said.

He admitted the course was difficult and long, and that there might be regressions, but "persistence, consistency and a united national stand" were necessary.

"It is unknown to what extent and how Turkey will respond. It is significant that it made a first step in Bucharest, stating unequivocally its resignation from violence or the threat of violence, and recognizing for the first time the possibility of recourse to international arbitration, and, at a final stage, the International Court.

"It did not conclude it because it broadly involved other issues as well, for example, the "gray zones" of the Treaty of Lausanne, thus annulling the initial positive step.

"Further effort is required for Turkey to adopt a clear-cut position, convincing enough that we have overcome the recent crisis.

"The (forthcoming) two foreign ministers' communication in Berlin can help in this direction," he added.

Mr. Simitis laid special emphasis on the government's Balkan policy, which aims at the consolidation of good relations with its neighbors. Concerning the Former Yugoslav Republic of Macedonia (FYROM), he said an effort was being made to arrive at an agreement on the name issue, under the auspices of the United Nations.

Regarding Cyprus, he said it was very important to promote the island-republic's entry to the EU, and that European and US exhortations towards Turkey have rekindled the resolution process.

Concluding, the prime minister said the true sense of patriotism involved an effort and will for an all-round strengthening of the country, the creation of a competitive economy, the promotion of social cohesion and cultural development.

[2] Evert: 'No gray areas in the Aegean'

Main opposition New Democracy leader Miltiades Evert criticized the prime minister over his handling of issues related to Greek-Turkish relations during his recent visit to the United States, at yesterday's debate in Parliament.

Mr. Evert said US President Bill Clinton's statements were simply a repeat of the United Nations' general principles, adding that there was never an utterance of a "guarantee of the nation's territorial integrity by the United States nor was an agreement signed, nor was any significant commitment garnered concerning Greek-Turkish relations."

The ND president also charged that Premier Costas Simitis accepted a dispute of the Dodecanese's status and that Washington "added the fact that the Imia issue could be resolved either by the International Court of Justice at The Hague or another international mediation body."

In addition, Mr. Evert said that with a "step-by-step" policy advocated by Mr. Simitis, the government is selling out the important negotiating bargaining chip of expanding territorial waters to 12 nautical miles, and also referred to what he said was " a submissive policy" in terms of the Imia issue.

"For Greece, there are no disputed areas in the Aegean, there are no gray regions..." he said.

The main opposition leader added that Turkey wanted to drag Greece into an unconditional dialogue on all issues, which he said would result in an overall settlement.

"Such a settlement occurs after a war, when one side attempts to force solutions on the other," he said.

[3] Samaras: new reality detrimental to national interests

Political Spring party leader Antonis Samaras said the government's moves had created "a new reality" which did not bode well for national interests.

"A simple comparison of Greek-Turkish relations yesterday and today is enough for the conclusion to be drawn by itself," he told Parliament during the debate.

Mr. Samaras said the Simitis-Clinton meeting took place under pressure by premeditated events, adding that "it signaled the government's official accession, even in a step-by-step form, to a process decided in advance with specific aims and an even more specific final conclusion."

Mr. Samaras said his party believed in promoting relations of friendship and co-operation between Greece and the US, but added that "the promotion of these relations should be based on the principles of equality and mutual respect. Otherwise, they are not relations of friendship and co-operation but relations of submission and dependence."

He accused Prime Minister Costas Simitis and Foreign Minister Thedoros Pangalos of refusing a national dialogue on defining a unified national strategy and added that the government "insists on handling events circumstantially and on the basis of a peculiar personal diplomacy."

Mr. Samaras criticized the main opposition New Democracy party of assisting the government in the mistaken foreign policy it was following, adding "that we have reached the phenomenon, probably for the first time in the country's political history, of the government and the main opposition party going together hand-in-hand and disagreeing in words only for reasons of hypocrisy and deception."

Referring to Greek-Turkish relations, Mr. Samaras criticized the prime minister personally that before even three months of his period in office had passed he had revived the strategic target Turkey had had in the Aegean for 22 years.

On the question of FYROM, Mr. Samaras said the formula the US was promoting to resolve the problem would not only fail to provide a final solution but would constitute the main reason for the creation of a permanent flash-point of unrest and destabilization in the entire Balkan region.

[4] Papariga: 'new commitments and blackmail'

Communist Party (KKE) Secretary-General Aleka Papariga charged that the results of the prime minister's recent visits to the United States and countries of the European Union were "new commitments, blackmail and pressures".

"The country is being pushed to a dialogue serving specific plans: the creation of a status of partition of the Aegean, to the benefit of European and American interests of the multinationals which are interested in the oil and the other natural resources of the former Soviet Union," she said.

She said the KKE was opposed to recourse to The Hague because even if Greece were vindicated, the way would be open for political issues to be reduced to legal ones.

"The way opens for the issue of post-war borders to be disputed, and for legal organs to be called upon to determine them. We shall not consent to such slips, even if apparently logical arguments are used," she added. Referring to her party's positions, she said the threat from Turkey was real, as long as it was supported by the US, the WEU and the European Union, and as long as the undemocratic internal regime was maintained.

[5] Coalition calls for 'immediate' re-positioning of foreign policy

Coalition of the Left and Progress party leader Nikos Constantopoulos yesterday called for the "immediate re-orientation of the country's foreign policy."

Mr. Constantopoulos made the statement before the parliamentary debate last night at which Prime Minister Costas Simitis was due to elaborate on his recent visits to the United States and Europe.

Mr. Constantopoulos said Mr. Simitis' trip to the United States depicted "once again the weaknesses of Greece's foreign policy".

He said those weaknesses included "a submission to the theory of the political cost, non-communication with parties and lack of cohesive strategy."

Commenting on the issue of Greek-Turkish relations, the Coalition leader proposed the establishment of "conditions for dialogue in the framework of total respect of international law and the international agreements."

Mr. Constantopoulos prompted the government to "avoid repositioning relations between the two countries within the Washington-Athens-Ankara triangle."

Concerning the Skopje name issue, Mr. Constantopoulos called for the promotion of the interim agreement, signed in September in New York, as well as a mutually-acceptable composite name.

Concluding, Mr. Constantopoulos called on the government to contribute "to a real convergence of social cohesion and ecological protection as well as common foreign policy and political safety."

[6] Stephanopoulos leaves for US visit today

President Kostis Stephanopoulos leaves today for the United States, the first official visit to the US by a Greek head of state for 43 years. During talks with President Bill Clinton, Vice President Al Gore, Secretary of State Warren Christopher and other US officials, Mr. Stephanopoulos will have the opportunity to put forward Greece's positions on a number of national issues, particularly Greek-Turkish relations, the Skopje issue and the Cyprus problem.

He will be accompanied by Foreign Minister Theodoros Pangalos who will have private talks with Mr. Christopher.

At the end of the week Mr. Pangalos will return to Athens and be replaced in the US by Alternate Foreign Minister George Romeos and Education Minister George Papandreou.

Government spokesman Dimitris Reppas told reporters that Mr. Stephanopoulos had already been briefed on the substance of Prime Minister Costas Simitis' trip to the United States.

Meanwhile, main opposition New Democracy party leader Miltiades Evert yesterday briefed Mr. Stephanopoulos for 30 minutes on his party's positions concerning national issues.

An ND statement said Mr. Evert had expressed to Mr. Stephanopoulos his "grave concern over the adverse repercussions which Prime Minister Costas Simitis' recent visit to the US had on the country's national issues."

He also briefed the president on the results of the meetings last week of the European Peoples' Party (EPP) and the International Democratic Union (EDU) in Athens and Thessaloniki respectively.

[7] Turkish planes infringe Athens FIR

According to press reports, Turkish aircraft infringed air traffic rules in the Athens FIR yesterday and violated national airspace on five occasions in the region of the northern and eastern Aegean.

Greek warplanes intercepted the Turkish aircraft in all cases.

[8] Faikoglou is best refutation of own claims about Moslem minority, Reppas says

Government spokesman Dimitris Reppas yesterday rejected claims by former Xanthi deputy Ahmet Faikoglou concerning the rights of the Moslem minority in Greece, saying that Mr. Faikoglou himself provided the best refutation of the claims.

Mr. Faikoglou said in Istanbul that the Moslem minority did not enjoy the principle of equality before the law like other Greek citizens.

"Mr. Faikoglou has chosen for himself a role which is in itself the best evidence of the existence of equality before the law and equality in general.... That is, the fact that everyone can freely express their views and positions," Mr. Reppas said.

The spokesman underlined however that the government strongly disagreed with the views expressed by Mr. Faikoglou.

[9] Greek, Cypriot presidents discuss Cyprus problem

On the eve of his departure for the US, President Kostis Stephanopoulos had talks with his Cypriot counterpart Glafcos Clerides who briefed him on the latest developments in the Cyprus problem.

Mr. Clerides is also scheduled to visit the US and have talks with Mr. Clinton on June 18.

After the meeting, Mr. Clerides told reporters that the two heads of state had discussed "in general" the present situation concerning the Cyprus problem in view of their forthcoming meetings with Mr. Clinton.

Mr. Clerides also spoke about "increased interest" at the present time in the settlement of the Cyprus problem, stressing however that "this does not mean that the way is open for a settlement" and adding that "much depends on the stance of the Turkish side."

Replying to domestic criticisms about his reference to the need for amendments to the 1960 treaties establishing the Cyprus Republic during a five-member meeting that such a move would mark the end of the republic's sovereign rights, in contradiction to decisions taken by the National Council, Mr. Clerides noted that the treaties could be amended only by those who had signed them.

He was referring to the representatives of the Greek and Turkish Cypriot communities, and the three guarantor powers of Cyprus' independence, namely, Britain, Greece and Turkey.

[10] Yilmaz calls for third party arbitration between Greece and Turkey

Turkish Prime Minister Mesut Yilmaz yesterday said Turkey was changing its positions on Greek-Turkish relations and seeking, for the first time, outside arbitration for the Aegean differences between the two countries.

Speaking to the press, the Turkish prime minister said the Aegean was an "area of problems between the two countries," reiterating his appeal to Greece for the finding of a solution to the Greek-Turkish problems.

"Turkey, which so far has been supporting a negotiated solution to the problems in the Aegean, endorses through its newly-presented proposals, a different approach, and for the first time it is open to solutions emanating from the involvement of third parties," Mr. Yilmaz said.

"We should not overlook the danger for the creation of new problems such as Kardak (Imia) which may arise from refusing to deal with existing problems," he added.

"We hope," Mr. Yilmaz said, "that the Greek side will respond to our new opening so that it will not appear as avoiding the road of the law which it has recently supported."

The Turkish prime minister said that "this will open a way for a period of co-operation contributing to the welfare of both peoples, as well as to peace and stability in the region."

"It will not be a mistake to think that the prevalence of common sense will have positive effects on Cyprus," he concluded.

[11] Turkish press hints at possible Camp David process for Greece and Turkey

Turkish press reports yesterday said a Greek-Turkish 'Camp David' plan was being engineered by US President Bill Clinton in the framework of which the Greek and Turkish prime ministers would meet at the White House in October.

According to the Turkish newspaper 'Hurriyet', the two prime ministers will be in New York for the annual UN General Assembly and on this occasion could meet at the White House in Washington.

According to the newspaper, there is no official initiative yet, but "certain people in the three capitals," were searching for ways to organize the meeting.

Later in the day, Turkish foreign ministry spokesman Omer Akbel said that "in spite of the great satisfaction we would feel at the normalization of our relations and the settlement of all issues between the two countries, I am in no position to verify t his information."

Mr. Akbel said he had no information concerning an initiative to solve the problems between the two countries "by the use of similar methods."

[12] Greek construction firms to visit Skopje

Prime minister of the Former Yugoslav Republic of Macedonia (FYROM) Branco Crvenkovski yesterday held talks with the head of the Greek diplomatic liaison bureau Alexandros Mallias on issues of bilateral economic co-operation.

Interest is focused primarily in the public works sector and to this end a visit by a delegation of 10 of Greece's biggest construction companies is being planned for the end of the month for an on-the-spot examination of investment potential in this sector.

The two officials also discussed the possibility of co-operation between the two countries in the electric power sector.

[13] Arsenis outlines future military role of WEU

National Defense Minister Gerassimos Arsenis opened discussions yesterday evening at a Western European Union (WEU) conference for member-states' foreign and defense ministers.

WEU ministers gathered for an official dinner at a castle outside Birmingham, England.

In his speech, Mr. Arsenis offered his estimates and views on the WEU's future military role, as various currents exist within the organization concerning the issue.

Generally speaking, Britain does not support the view of other members that the WEU should develop into the military arm of the European Union, as foreseen by the Maastricht Treaty in relation to the WEU's common defense and foreign policy.

The conference's sessions will continue this morning and conclude late in the afternoon.

Besides Mr. Arsenis, the foreign ministry's general director for Community affairs Stelios Perrakis, is accompanying the defense minister. In addition, Greek Eurodeputies Ioannis Pottakis (PASOK), Mihalis Liapis (New Democracy), Ioannis Mihelogiannis (PASOK), Vassilis Korahais (ND) and Maria Mahaira (Political Spring) will arrive today in order to participate in a joint session held by the various WEU committees.

[14] Austrians remember Greek Nazi victims

A memorial ceremony was held on Sunday for the 3,700 Greek World War II victims of the Nazi Mauthausen concentration camp in northern Austria. The ceremony, held at the Greek monument, was attended by representatives of G reek authorities and of expatriate organizations, as well as by many Austrian Greeks.

During his speech, president of the expatriate organization "Socio-cultural Society of Vienna and environs" Nikos Tzaferis characterized the war and the Nazi concentration camps as having been the result of economic and political developments in Europe during the inter-war years, combined with the racist tendencies of certain social groups.

Mr. Tzaferis spoke of the passive acceptance of events by public opinion, which is also taking place today in matters such as the war in the former Yugoslavia, the slaughter of Kurds and the occupation and missing people of Cyprus. He also stressed the "unpleasant developments of the doubting and threat to Greek territorial integrity by 'allies', under the tolerance and indifference of other 'allies and friends'."

[15] EU funds Democritos carbon dating project

The Democritos research laboratory is conducting a carbon dating research program on the craftsmanship of prehistoric Europe, concentrating mainly in the Mediterranean basin, and the ways in which this craftsmanship spread.

The program has just been app roved by the European Union. Researchers from Greece, Italy, Britain and Germany are aiming to understand the process of the spread and development of the craftsmanship through determining the age and quality of prehistoric artifacts and tools, which can then be compared to other finds from all over the world.

The researchers hope that in this way the knowledge and level of exploitation of materials of prehistoric communities will be clarified, irrespective of the objects' age.

Apart from the Democritos carbon dating laboratory, the institutions participating in the research program include the National Research Foundation's Center of Greek and Roman Archaeology, the Institute for the study of Myceanean and Eastern Mediterranean civilization in Rome, Glasgow University's archaeological department and the chemistry group of the Max-Planck Institute of Nuclear Science in Haidenberg in Germany.

[16] Bodosakis Foundation announces '95 winners

The Bodosakis Foundation's awards and their contribution to the promotion of Greece's scientific and academic community at an international level was the theme of a press conference yesterday by the foundation.

The Bodosakis awards are given to winners in the field of natural sciences, social sciences, medicine and biomedicine.

In addition, the recipients of the 1995 awards were announced. Each winner also receives six million drachmas.

Specifically, recipients were:

- Ioannis Pitas, professor of computer science at the Aristotelian University in Thessaloniki.

- Dimitris Triantafyllou, a law professor at Heidelburg University in Germany.

- Panayiotis Souganidis, a mathematics professor at the University of Wisconsin at Madison.

- Lazaros Triarchos, alternate professor of pathology at the University of Indiana, and,

- Linos-Alexandros Sisilianos, a law school lecturer at Athens' law school.

[17] Commission warns Greece over wildlife reserves

The European Commission has sent a warning letter to the relevant Greek authorities regarding the non-compliance with clauses in directive 92/43/EOK on preserving wildlife reserves and flora and fauna.

The Commission's complaints concern the failure of the Greek authorities to prepare and communicate a list of wildlife reserves. The letter grants a two-month time limit for a reply to be given.

When the time limit expires (27/5/1996) and if Greek observations are not communicated or are considered unsatisfactory, the European Commission reserves the right to set out an opinion backed by arguments in accordance with article 169 of the EEC Treat y (the last stage before resorting to the European Court).

[18] Human rights groups hold press conference

Human rights and anti-racist organizations held a joint press conference yesterday on current human rights issues.

The speakers concentrated mainly on the issue of minority, illegal immigrant and political refugee rights in Greece. Dimitris Levantis, from the organization "SOS Racism" spoke of problems faced by economic and political refugees in the sectors of education, employment and religion.

"Immigrants are part of our society and for this reason the state is obliged to deal with education issues for the people who are living in our country illegally," Mr. Levantis said.

Panayiotis Dimitras, of the Greek Observation Committee for the Helsinki Agreement and member of the Greek organization for the rights of immigrants, referred to Prime Minister Costas Simitis' recent visit to the minority communities of Thrace.

"One would expect Mr. Simitis to refer to the particular problems of the minorities there ... and not to disappoint with his silence: a silence which is the result of the non-participation of minorities in local PASOK committees."

[19] Head of Armenia's Catholics to visit Patriarchate

The Catholic Patriarch of all Armenians Karekin I will pay an official visit to the Ecumenical Patriarchate on May 9.

An announcement by the Ecumenical Patriarchate said that the Armenian Patriarch will attend an official service at the Patriarchal Cathedral.

Meanwhile, Archbishop Ioannis of Karelia and All Finland met with Ecumenical Patriarch Vartholomeos at the Ecumenical Patriarchate over the weekend.

[20] Contrasting scenarios for PASOK party congress continue to be aired

The possible election of deputy president at the ruling socialist PASOK party's forthcoming congress is turning into a major intra-party issue as leading party members declare themselves either for or against dual leadership in interviews and statements o n a daily basis.

Ioannis Haralampopoulos, a founding member of PASOK who contested the premiership in the recent elections held by the party's Parliamentary Group, took a position in favor of dual leadership but against the election of Costas Simitis to deputy president yesterday, while former alternate industry minister Christos Rokofyllos opposed dual leadership and favored the election of Mr. Simitis to the party leadership.

In an interview with the newspaper 'Ta Nea', Mr. Haralampopoulos said PASOK had a president and urged Mr. Simitis not to be a candidate for the post of party deputy president and expressed reservations over government policy in general.

Mr. Haralampopoulos expressed fears that PASOK's unity and cohesion could be jeopardized at the congress, while electing a deputy president "could lead to an open confrontation between the contenders and the groups supporting them."

Mr. Haralampopoulos believes that the government's seriousness and credibility have been dealt a blow "due to mistaken handling and contradictory decisions."

On the question of the country's national issues, Mr. Haralampopoulos said it would be a mistake on the part of Greece to be led to a dialogue on all issues with Turkey and expressed reservations over referring national issues to the International Court at The Hague. He expressed concern over the Cyprus issue because the position that resolving the Cyprus issue was a precondition for whatever dialogue with Turkey had been abandoned. He also said it was a mistake for Greece to discuss a composite name for the neighboring Former Yugoslav Republic of Macedonia (FYROM).

Aetoloakarnania deputy, former alternate industry minister and close associate of the prime minister, Christos Rokofyllos openly expressed support for Mr. Simitis contesting the party's leadership.

Without proposing party leader Andreas Papandreou's resignation, he expressed hope the PASOK's leader will want by himself to move to the post of honorary president.

In his view, if the congress elects a different leadership then the door will open to the premiership. He said elections were carried out with the party's president at the helm and that he received the nomination for the premiership from the President o f the Republic.

Mr. Rokofyllos assessed that all this obliged Mr. Simitis to contest the party leadership or to resort to elections to seek his reconfirmation. He said this was a weapon in the prime minister's hands, but considered such a development disastrous.

Replying to a relevant question, Mr. Rokofyllos conceded that the "threat" of early elections meant extortion for delegates but considered it legitimate.

[21] New Generation Secretary-General resigns

New Generation Secretary-General Panos Tsiligaridis submitted his resignation in writing yesterday, saying he was acting on the prime minister's wishes.

In a letter to Education Minister George Papandreou, Mr. Tsiligaridis referred to his work in the secretariat, saying it had aimed "to promote the human face of the state, the social sensitivity and solidarity of a policy which will give ... hope to the new generation of our country."

The letter continued: "Today, 6/5/96 I submit my resignation, as it was requested by the head of the government, as you informed me."

During Mr. Tsiligaridis' term, the New Generation Secretariat promoted co-operation with non-governmental organizations on various issues, such as ecology, drugs, the rights of social minorities and the support of the social integration of gypsies, and also accelerated efforts for the formation of a National Youth Council.

Stylianos Petroulakis was sworn in yesterday and assumed his duties as Secretary-General for civil protection at the interior, public administration and decentralization ministry.

[22] Inner cabinet to discuss transport issues today

Prime Minister Costas Simitis met yesterday with Transport and Communications Minister Haris Kastanidis to prepare for today's inner cabinet meeting which will focus on transport issues, government spokesman Dimitris Reppas said yesterday.

Tomorrow, Mr. Simitis will participate in a scheduled Parliamentary debate on unemployment, while earlier in the day he will attend a meeting of the ruling PASOK party's Parliamentary Group which is expected to approve its rules of operation.

On Thursday, the premier will have talks with visiting Cyprus President Glafcos Clerides.

[23] Dutch ambassador meets with Petsalnikos

Development prospects for northern Greece as well as relations between Greece and Turkey, FYROM and other Balkan nations were some of the issues discussed yesterday between Macedonia-Thrace Minister Phillipos Petsalnikos and The Hague's ambassador to Athens Hendrik Waggenmakers.

Mr. Waggenmakers met with the minister as part of a courtesy visit to the ministry.

Mr. Petsalnikos briefed the Dutch ambassador on his ministry's goals as well as on significant prospects for development of the area. He also touched on construction of the Egnatia Highway spanning the breadth of northern Greece and other major infrastructure projects scheduled for the region.

The Macedonia-Thrace minister also highlighted the area's role in the further economic development of the Balkans, the Black Sea area and the Middle East. In terms of Greek-Turkish relations, Mr. Petsalnikos reiterated that Greece is not willing to cede sovereign rights emanating from international law and agreements.

In response to a press question concerning the name of the Former Yugoslav Republic of Macedonia (FYROM), the minister said: "Our goal is for a continuous improvement in relations between Greece and FYROM, something which exists for all neighboring countries, as well as ensurance of peace in the Balkans and the wider region.

According to a ministry press release, at that point Mr. Waggenmakers agreed, and noted that in relation to the name issue, his country believes that the "only a solution which will be acceptable to Greece can be viable."

[24] Greek tourism official in Egypt to repair ties

Greek National Tourism Organization (EOT) president Yiannis Stefanidis flew to Egypt yesterday on the instructions of Development Minister Vasso Papandreou in an effort to boost bilateral tourism relations in the wake of last month's terrorist attack in Cairo that left 18 Greek tourists dead.

Mr. Stefanidis will have talks with his Egyptian counterpart, Adel Aziz, in order to reassure him that there is no need for the very good relations between the two countries to be disrupted.

Mr. Stephanidis is expected to convey to Mr. Aziz that there are excellent prospects for further co-operation.

At the same time, the EOT chief will seek assurances that Egypt will take all the necessary measures to protect Greek tourists visiting the country.

In talks with Egyptian hoteliers and tour operators, Mr. Stefanidis is expected to urge the lifting of an Egyptian ban on large Olympic Airways aircraft (airbus) landing at Cairo.

Cairo imposed the ban on the argument that it was protecting the interests of Egyptian airline companies.

[25] Greek, Turkish travel agents look at possible co-operation

Members of the Union of Travel Agents of Turkey (TURSAB) and the Union of Hoteliers of Turkey (TURTOB) are expected in Athens today in order to meet with members of the Union of Travel Agents of Greece.

The meeting will be the first important bilateral contacts in the tourist sector between the two countries. The Turkish delegations are to remain in Greece until May 9 and will meet with Development Minister Vasso Papandreou.

TURSAB officials said that Greece is preparing an advertising campaign with a record budget of $10.6 million and is planning to enter the Turkish market. As all reservations in Turkey for 1996 have been booked by foreign tourists, Greece is seeking to attract Turkish tourists.

TURSAB President Talha Tsabas stressed that although Greece is developed in the tourist sector, it suffered a four per cent reduction in tourism last year, and added that "we can contribute to the efforts begun by the neighboring country to overcome it s difficulties."

Mr. Tsabas said that "by working together in the eastern Mediterranean, we could play a leading role in the region," and added that "despite the natural competition between us, we could make joint efforts to increase our share of world tourism."

[26] Salomon Brothers predict continuing fall in interest rates, inflation

A Salomon Brothers report on the Greek economy has forecast a gradual fall in interbank interest rates to 11-12 per cent until the end of the year, and an also gradual decrease in inflation to 7.5 per cent.

The report also contains the following estimates:

-The Bank of Greece will exercise correctional intervention to restrict consumer credit, so as to assist in the attainment of the targets of monetary policy.

-The stable drachma policy will continue to contribute to the tackling of inflationary pressures.

-There will be difficulties in the execution of the state budget due to a relatively lax incomes policy and continuing relatively high interest rates, making unlikely the attainment of the planned target of reducing the central government deficit from 1 0.6 to 8.7 per cent of GDP this year.

-The effort to contain expenditure through a tight incomes policy will meet increased resistance after five years of falling real wages in the public sector. For this reason, Salomon recommends the seeking of other mechanisms of reducing expenditures, including privatizations, the closing down of unprofitable public sector enterprises, and a reform of the pension system.

The report concludes that the key to the success of the ambitious fiscal targets is the medium-term fall in inflation.

End of English language section.