A.N.A. Bulletin, 10/05/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 882), May 10, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Stephanopoulos garners clear support from US for respect for international law in the Aegean

President Kostis Stephanopoulos' official visit to Washington substantively came to an end yesterday with clear support from the US for Greece's positions on relations with Ankara, an issue which appeared to dominate his hour-long talks with US President Bill Clinton at the White House.

The two presidents ascertained a coincidence of views on issues discussed and President Clinton, although ruling out assuming an initiative for a Greek-Turkish Camp David-style summit (unless this was requested by both sides), said Washington did not expect force to be manifested in the Aegean.

However, President Stephanopoulos raised the issue of "existing threats of war" against Greece by Turkey and said "at this moment" there could be no Greek-Turkish dialogue (since Ankara is not proceeding with referring the Imia islets and continental shelf issues to the International Court at The Hague) but explained that Athens did not reject a dialogue on condition it was not about Greek sovereign rights.

The two presidents also discussed terrorism, the situation in the Balkans, economic co-operation between Greece and the US in the region and the Cyprus issue, over which President Clinton expressed the hope there would be a possibility of a US initiative being assumed within the year.

President Stephanopoulos raised the issue of the rights of the Greek minority in Albania, while in connection with the Former Yugoslav Republic of Macedonia (FYROM) it appears that no lengthy discussion on the issue was made since the issue is in the hands of the UN.

Earlier in the day, Foreign Minister Theodoros Pangalos and US Secretary of State Warren Christopher held private talks focusing primarily on Greek-Turkish relations. According to press reports, no new element appeared to indicate that Ankara intends to refer the Imia issue to The Hague.

Later in the day, Vice President Al Gore held a dinner in President Stephanopoulos' honor at the State Department. President Stephanopoulos will also attend a state dinner President Clinton will give in his honor at the White House later in the evening (early morning Greek time).

After their talks at the Oval Office, the two presidents gave a joint press conference at the White House in the presence of Mr. Pangalos and Mr. Christopher.

President Clinton stressed the importance of co-operation between Greece and the US in building an indivisible Europe and expressed satisfaction over the role played by Greece in solutions to Balkan problems, particularly in Albania and FYROM and in the Bosnia issue.

On the question of Aegean issues, President Clinton pledged Washington's help to enable it to become a region of peace and opportunities for all its people, on the condition of respect for international treaties and territorial integrity and reiterated that the Imia issue should be referred to the International Court at The Hague by Turkey.

He further said that efforts should be made to defuse tension with peaceful means and without the use or the threat of force.

On Cyprus, President Clinton expressed the hope that an initiative opening up further progress will be possible within 1996. He also stressed the United States' commitment to fighting terrorism and described Greece as a dynamic partner in this effort.

President Stephanopoulos described the talks as interesting, and added that there had been a coincidence of views.

"We are in agreement with the efforts of the United States for stability in the Balkans, and we are contributing as much as we can to final consolidation of peace in the area," he added.

He expressed his satisfaction at the fact that President Clinton had insisted on the need for respect of the principles of international law and territorial integrity with regard to the issues in the Aegean.

Replying to a question on what the United States would do if Turkey used force against Greece, President Clinton said that he had also told Turkish President Suleyman Demirel during his recent visit to the White House that Washington did not support the use or the threat of the use of force.

"Greece and Turkey are NATO allies and must have good relations. The United States supports the peaceful settlement of their differences in the Aegean and the resolution of the Cyprus problem. If these problems are solved, new dynamics for the Balkans and an undivided Europe will be created," he said.

"We shall do everything we can so that there is not even a threat of the use of force. I don't expect a case of a use of force, and we shall avoid it," he added.

Mr. Clinton said his country's attention in the Balkans was now centered on the implementation of the Dayton peace accord. He added he was encouraged by what he heard from President Stephanopoulos with regard to progress in resolving Greece's differences with the Former Yugoslav Republic of Macedonia, and referred to co-operation with Greece in the spread of technology in the region.

Mr. Stephanopoulos referred to Greek economic penetration of the Balkans, with its base in northern Greece, adding that US businessmen could co-operate with Greek counterparts in that direction. There were also possibilities for economic co-operation with

Turkey, but this presupposed a resolution of differences in the Aegean, without this ruling out other forms of co-operation in other sectors.

In reply to questions, Mr. Stephanopoulos said "Greece asked for nothing from the United States, beyond the application of international treaties and the rules of international law...

"I hope that the law will be applied and that Turkey will realize that our differences with a legal content (Imia and the continental shelf) should be referred to the court at The Hague. Our view on this coincides with that of the US," he stated. He said conditions for a Camp David-style meeting between the two countries were not mature, and made it clear that there can be no dialogue "at this moment" if Turkey does not decide to refer the Imia issue to The Hague first, and then that of the continental shelf. He added that Athens does not reject dialogue, but on condition that it does not concern Greek sovereign rights.

"It is too early to speak of a Greek-Turkish summit meeting," he said.

[2] Pangalos: No linkage of Cyprus entry to the EU entry with funding for Turkey acceptable

Greek Foreign Minister Theodoros Pangalos yesterday warned that Greece would cause an unprecedented crisis in the European Union if its EU partners continued to insist in attempts to link an anticipated EU-Cyprus accession to Greece's veto on the flow of EU funds to Turkey as part of the EU-Turkey customs union.

Mr. Pangalos made the comments to reporters during a reception held for Greek President Kostis Stephanopoulos by Greece's envoy to Washington, Lukas Tsilas.

According to Mr. Pangalos, Germany's and France's permanent representatives will attempt to link the two issues during an EU foreign ministers meeting on Monday in Brussels which intends to discuss both MEDA financing, under which Turkey and other Mediterranean countries would receive EU funds and Malta and Cyprus's bids for accession.

Mr. Pangalos said the French and German representatives would try to link the Cyprus EU accession to Greece's vetoing of the flow of funds to Turkey, with the tacit approval of the Italian presidency.

"This will signal a major crisis in the Community in its entirety and in its function," he said, adding that the embassies of all EU member-states to Athens had been notified accordingly.

"If there is any such attempt, Greece will consider it self-evident to block the Malta-EU Association Council, as a first step, and, as a second, will systematically and without exception obstruct all the Community's foreign relations," he added.

"The attempt to link Turkey's territorial designs with the lawful relations between Cyprus and the EU is totally irrational and immoral," Mr. Pangalos said. "Truly, some people in certain European governments must not have a trace of moral sensitivity or political sense to think they can move in this direction."

"It is inconceivable," he added, "to give Turkey any EU financial support for as long as this country threatens and blackmails Greece and continues to have territorial claims against us."

"If they, EU partners, do not share this position with us, we will proceed with creating an unprecedented EU crisis for the union as a whole, a crisis greater than any crises of the past," he said.

Mr. Pangalos said it was "not possible" to talk about an inter-governmental conference and about a common foreign policy when the Community is not in the position to make the most basic of acts of solidarity on such a clear-cut issue.

Concluding, the foreign minister said it was "peculiar and outrageous for Greece not to have been met with sensitivity and understanding from its Community partners, but from the Americans."

[3] Gov't spokesman

In Athens, government spokesman Dimitris Reppas said that Mr. Pangalos' statements regarding the role of certain EU partners in the issue of EU-Cyprus accession expressed the government's policy.

"A Cyprus accession cannot be negotiated and all accession procedures should proceed according to already agreed upon decisions," Mr. Reppas said, adding that certain EU partners often tried to associate an EU-Cyprus accession to progress in the Cyprus problem.

"We have a different position," he said.

Asked whether the government feared a new crisis in the Aegean, Mr. Reppas said that Turkey's offensive policy of creating tension was well-known.

"Greece is ready to answer to and avert this danger," he said.

Asked whether tensions worsened between the two countries following the Bucharest meeting, Mr. Reppas said the meeting resulted in a few positive elements but brought to the surface new Turkish claims "since the Turkish foreign minister spoke of 'gray areas' in the Aegean and called for a full revision of the Lausanne Treaty."

"We are totally opposed to this," Mr. Reppas said, adding that "there cannot be an improvement in Greek-Turkish relations unless the neighboring country abandons its expansionist policy."

[4] EU cancels meeting with Turkey

The European Union has canceled a high-level meeting next week with Turkey because of Greece's ongoing dispute with Ankara, EU diplomats said on Thursday.

Turkey's foreign minister was due to have met his EU counterparts next Tuesday following their regular monthly meeting to discuss links between the two sides.

Diplomats said the EU decided there was no point in holding the meeting while Athens is blocking various EU funding programs destined for Turkey.

"It's impossible to have a successful (meeting) with Turkey unless you have the money," one EU diplomat said.

[5] Clinton stresses international law

Speaking to the press before their talks, US President Bill Clinton told his Greek counterpart the Aegean issues should be resolved in accordance with international law, without the use or threat of force and with goodwill by both sides.

"I believe great progress can be achieved in this part of the world for the benefit of Europe and the Mediterranean region," President Clinton said.

Replying to a questioner on whether he saw the possibility of Turkey resorting to the international court at The Hague over the issue of the Imia islets, he said "there is such an opportunity", adding that he felt encouraged by meetings between representatives of the two sides in Bucharest.

President Clinton underlined Greece's powerful role in the Balkan region and expressed his conviction that Athens should have active involvement in an overall solution to problems in the region.

On the question of Cyprus, President Clinton recalled efforts he had made for its resolution, stating that possibilities were being widened for the next moves on the issue and expressed hope that the US would be able to contribute constructively towards its resolution.

Immediately after these statements, official talks started between the two presidents in the presence of Vice President Al Gore, Foreign Minister Theodoros Pangalos, Secretary of State Warren Christopher, National Security Adviser Tony Lake and the ambassadors of the two countries Loukas Tsilas and Thomas Niles.

President Stephanopoulos arrived at the White House at 10am where he received a warm and spectacular welcome from President Clinton and his wife, Hillary.

Apart from the members of the Greek representation, the welcoming ceremonies were attended by Vice President Al Gore, Secretary of State Warren Christopher, US General Staff Chief General John Shalikashvili and President Clinton's adviser George Stephanopoulos, while hundreds of Greek-Americans waved the Greek and US flags in the White House gardens and cheered the two leaders.

The two presidents inspected guards of honor and the flags of the 50 US states; a 21-gun salute was fired as the national anthems were played.

In welcoming President Stephanopoulos, President Clinton referred to close and friendly relations between Greece and the US through the centuries and common struggles between the two countries to defend common ideals and secure a peaceful future.

"In Bosnia our soldiers are serving side-by-side for peace and in the Balkans, from Albania to FYROM, we see Greece as a power of peace and stability," President Clinton said.

He added that Greece and the US should have a common and indivisible position against terrorism and conveyed his condolences at the murder of 18 Greek citizens in Cairo a month ago.

In his reply, President Stephanopoulos referred to relations between the two countries, saying that Greece actively participated in activities being developed in the ever-changing region of southeastern Europe and acted peacefully and productively in a framework of equal co-operation with its neighbors, its European Community partners and its friends throughout the world.

However, President Stephanopoulos said Greece was meeting certain obstacles in this effort, which it was handling with its peaceful attitude and its absolute respect for the principles of the UN and international treaties.

President Stephanopoulos expressed certainty that co-operation and the common course between Greece and the US would be continued for the sake of a common policy of peace and friendship in a world moving at last in the framework set out by the UN Charter, namely in a world where countries would comply with their international commitments, abstaining from the use or the simple threat of force and resolving whatever differences with the peaceful means anticipated by the Charter.

[6] President Stephanopoulos meets with Perry

President Kostis Stephanopoulos held a meeting yesterday with US Defense Secretary William Perry on the sidelines of a Greek embassy reception. The meeting was also attended by Greek Foreign Minister Theodoros Pangalos and US Ambassador to Athens Thomas Niles.

Mr. Stephanopoulos did not make statements to the press following the meeting.

Sources said however that he put to Mr. Perry the major issues facing Greek foreign policy.

Turkish Ambassador to the United States, Nuzet Kantemir, met with Mr. Stephanopoulos and Mr. Pangalos at the reception.

Later in the day, Mr. Stephanopoulos stressed Greece's important role in the Balkan region in his address to a conference organized by the Karamanlis Institute, the Law and Diplomacy School at Tufts University, and the Institute for Foreign Policy Analysis.

In his address, Mr. Stephanopoulos said the northeastern Mediterranean region was "of vital importance" and the crossroads for several cultures and religions.

The United States and the European Union were called on to play "a very important role in the Balkans, since both have great abilities to contribute to the settlement of problems in the region," the president said, while noting Turkey's unacceptable threats to Greece, a NATO ally.

Greece had "a special role to play in the region," he said, adding that the Greek economy was by far more developed than any other Balkan economy.

Greece "is the only country in the region that is a European Union member, and above all, it is the only country whose history and institutions can serve as a guide for these states which only recently have gained their freedom," Mr. Stephanopoulos said .

Referring to relations with Ankara, the Greek president stressed the "extraordinary tension" prevailing in the past decades, especially after the 1974 Turkish invasion of Cyprus and its subsequent claims on the Aegean.

Criticizing Turkey for its constant violations of Greek air space, Mr. Stephanopoulos noted that Ankara had initially agreed to settle the "clearly legal issue of the delineation of the continental shelf" under international law but later changed its mind.

"Despite all this," Mr. Stephanopoulos said, "Greece has shown a spirit of good will and accepted the EU-Turkey customs union."

Noting that Athens was not willing to proceed to dialogue on the issue of its sovereign rights, the Greek president said:

"I understand Turkey's economic significance and do not expect that the West will overlook Turkey's importance in order not to displease Greece.

"But it is beyond me to accept a sacrifice of the principles of the international law, democracy and freedom due to Turkey's role, no matter how important this role is.

"Turkey, even though it constantly makes efforts to improve its relations with the United States and the European Union, continues to threaten an EU member-state and violate its sovereign rights, in a morally and politically unacceptable fashion."

Mr. Stephanopoulos also referred to the United States and the European Union's increased interest in Cyprus, "a country, which although it continues to have 37 per cent of its territory occupied, is called upon to make more concessions that it already has."

The Greek president also mentioned Greece's role in other issues, such as the implementation of peace in Bosnia, and "very good" relations with Bulgaria and Romania, and "improving" relations with Albania.

On the issue of the Former Yugoslav Republic of Macedonia, Mr. Stephanopoulos said Greece had supported FYROM's independence from the start, and that problems in relations between the two neighboring countries were due to FYROM's insistence on using a name "that fabricates history and conceals territorial designs."

Alternate Foreign Minister George Romeos left yesterday for the United States to accompany President Kostis Stephanopoulos for the remainder of his visit to the United States.

[7] Gligorov pessimistic about resolution of name issue

Former Yugoslav Republic of Macedonia (FYROM) President Kiro Gligorov did not appear optimistic on the finding of a solution on the name issue during talks held in New York between Athens and Skopje.

Replying to questions in Paris as to whether he is in favor of a composite name, Mr. Gligorov said: "This issue has many sides. We cannot enter into that issue now and give a short answer, yes or no. It is about the name and the identity of a nation, o f a state. It is a difficult issue for us, for our people and we must have the patience to let the negotiations run their course."

Asked whether he is optimistic for the results of the negotiations, Mr. Gligorov replied "not very."

[8] Armenian Catholic Patriarch meets with Vartholomeos

Armenian Catholic Patriarch Karekin kicked off an official visit to the Ecumenical Patriarchate yesterday with a meeting with Ecumenical Patriarch Vartholomeos and the members of the Holy Synod.

"We are determined to promote unity through broader dialogue and to obey our peoples' will for unity," Karekin said to Vartholomeos.

"Our Patriarchate, together with all Armenians around the world, is called upon to offer spiritual and moral support to our people which has suffered under the atheistic system imposed on us over the past 70 years," he said.

Vartholomeos noted with satisfaction the elimination of doctrinal differences keeping the two churches apart.

He further referred to "the common holy struggles," that brought him closer to the Armenian Patriarch.

[9] Vartholomeos in Australia

Ecumenical Patriarch Vartholomeos will visit Australia for the first time ever towards the end of the year on the occasion of the 70 years of the Phanar's presence in the country.

The Patriarch will visit Sydney, Canberra, Melbourne and Adelaide.

He will be in Melbourne, home to the third-largest Greek community in the world, November 14-18.

There are approximately 700,000 Greek Orthodox believers living in Australia.

[10] Mediterranean Forum meets in Italy

Foreign ministry Secretary-General for European affairs Professor Stelios Perrakis is representing Greece at the two-day annual meeting of foreign ministers of the Mediterranean Forum member states in Ravello, Italy, which began here yesterday.

The Mediterranean Forum is an independent initiative of the Mediterranean states which aims at promoting co-operation in the sectors of politics, economy, culture and social matters.

The meeting, which has an open agenda, is taking place with the participation of foreign ministers from Italy, Algeria, Egypt, France, Greece, Malta, Portugal, Spain, Tunisia, Turkey and Morocco. The forum was established in 1984 and held its two latest meetings in France and Tunisia. Italian Foreign Minister Susanna Agneli is expected to raise the issue of the recent crisis in the Middle East following the Israeli military operation, themed 'the grapes of wrath,' against Lebanon.

[11] Gov't condemns attack on Kurdish newspaper office

The government expressed it abhorrence yesterday over an attack against the Athens office of the Kurdish newspaper 'Ronahi,' which was severely vandalized by unknown assailants early Tuesday. "The government condemns such acts of violence, which attempt to terrorize the free exchange of views and ideas," government spokesman Dimitris Reppas said, when asked to comment on the incident.

According to reports, vandals daubed Turkish crescents on the premises. Mr. Reppas said authorities are investigating the incident, and expressed a hope that the perpetrators will be found.

[12] Foreign ministry rejects Turkish claims

Foreign ministry spokesman Costas Bikas yesterday said Greece was "a state of law respecting international treaties as well as law and order", in response to Turkish foreign ministry claims on Wednesday that Greece was violating Lausanne treaty provisions on religious freedoms.

Mr. Bikas said that, according to the existing 1991 law, muftis, Moslem religious community leaders, are chosen by a committee made up exclusively of Moslems, and are later approved by the education and religious affairs minister. Mr. Bikas said the same procedure applies in all Moslem communities throughout the world, including Turkey.

According to Mr. Bikas, muftis in Greece also have judicial responsibilities stemming from the sacred Islamic scriptures. He noted that the Treaty of Lausanne made no reference to the election procedure of muftis. Mr. Bikas reminded Turkey of its own commitments with respect to the rights of the Greeks in Istanbul, Imvros and Tenedos.

Criticizing Turkey for making unfounded accusations, Mr. Bikas said Turkey itself violated these rights, adding that "the dramatic shrinkage of the Greek population in Turkey" was evidence of Turkey's human rights violations.

[13] Turkish fighters violate Athens FIR

Turkish warplanes violated flight regulations in the Athens FIR and Greek airspace yesterday on nine separate occasions in the eastern Aegean, according to press reports.

Greek fighters intercepted the Turkish aircraft in all cases.

[14] Cypriot socialist leader calls for renewed efforts to bring about Cyprus resolution

A need for an intense and exacting intervention on the part of Greece and Cyprus towards international decision-making centers, especially the United States, for resolution of the Cyprus problem was promoted yesterday by Socialist EDEK party leader Vassos Lyssarides.

In an exclusive interview with the ANA, the Cypriot political leader, however, said he does not expect an immediate US initiative on the Cyprus issue.

Besides those projections, Mr. Lyssarides estimated that the US side has already decided on a plan for solution of the Cyprus problem, which he said was indirectly unveiled to the Greek-Cypriot side with a "questionnaire." He also said he considers acceptance of confidence-building measures (CBMs) a given, as well as the existence of two separate sovereignties on the island republic.

"We must demand a new procedure that will bring Turkey to the negotiating table as the opposing side... for a discussion of the Cyprus problem," Mr. Lyssarides told ANA.

He also expressed his concern over the timing of any proposed US initiative, saying it will probably be directed in a direction that is "detrimental for Cyprus."

The opposition socialist leader said the Cypriot government has failed to fully utilize the joint defense doctrine implemented by Greece and Cyprus, "because we did not enter a new assertive policy, instead, we followed a 'good child' policy, adapting our just and downgraded requests with Turkey's illegal and unreasonable demands."

On another issue, Mr. Lyssarides added: "Whatever change occurs in the island's political landscape due to upcoming parliament elections will be to the benefit of Greece-Cyprus relations."

The EDEK president arrived in Athens this week to receive an honorary doctorate yesterday from the Panteios University. Several high-ranking government officials, including National Defense Minister Gerassimos Arsenis and Justice Minister Evangelos Venizelos, attended the ceremony.

[15] Simitis, Clerides confer on recent and expected developments on Cyprus issue

Prime Minister Costas Simitis met yesterday with Cyprus President Glafcos Clerides to discuss the latest developments in the Cyprus problem following the two leaders' recent and forthcoming contacts in Europe and the United States.

Mr. Simitis said the discussion had been "friendly and detailed", adding that he had briefed Mr. Clerides on his talks in Europe and the United States concerning the Cyprus problem.

The premier stressed that there had been an identity of views as regards the assessment of the present situation and common positions with respect to the subsequent handling of the Cyprus problem with the framework of the close co-operation between Athens and Nicosia. Mr. Clerides said he had briefed the premier on his recent meetings with representatives of the US, Europe and Britain and described his talks with Mr. Simitis as "comprehensive, constructive and detailed".

Mr. Simitis and Mr. Clerides agreed to meet again after the Cyprus president's forthcoming visit to Washington, where he will have talks with President Bill Clinton. The venue for the meeting will be Florence, on the sidelines of the EU summit.

Commenting on the intention expressed by the US to undertake an initiative on Cyprus, Mr. Simitis said he had raised the problem during his recent visit to the US and "we are now waiting for Washington to carry out its promise."

Any action taken, the premier underlined, must be in the direction of overcoming the resistance of the other (Turkish) side "which is unacceptable."

Mr. Simitis reiterated that the EU-Turkey customs union will not come into effect unless the issue created by Ankara with its claims on the Aegean islet of Imia is not first cleared up. The Association Council will go ahead as planned, he added.

The premier, who said he intended to visit Cyprus soon, noted that Turkey did not have peace-loving and friendly intentions.

In another development, Athens Mayor Dimitris Avramopoulos awarded the city's golden medal to President Clerides during a special ceremony which was held in the morning at City Hall.

[16] Kaklamanis meets with British MPs

Parliament President Apostolos Kaklamanis yesterday received a delegation from the British-Hellenic Parliamentary Friendship Group with whom he discussed the role of national assemblies and the issue of control vis-a-vis executive power.

Participating in the British delegation were MPs Ian Twin, Eddy O'Hara, Nigel Walterson and Tom Cox.

Both sides agreed on the need to strengthen co-operation between the Greek and British parliaments.

Mr. Kaklamanis briefed the delegation on Greece's major national issues and in particular the recent Turkish provocations.

The British MPs noted that Greece's positions were often distorted abroad by the foreign mass media and politicians, while Turkey's role in international developments was often overrated. Both Mr. Kaklamanis and the delegation agreed on the need to increase bilateral contacts with the aim of strengthening the role of national parliaments in European developments.

[17] Greece sends plane to help in locating bodies in Albanian boating accident

A Hellenic Air Force C-130 cargo plane carrying eight navy divers, an inflatable craft, a decompression chamber and a jeep, departed yesterday afternoon for a northern Greece air-base after Albanian authorities requested assistance in locating and recovering the bodies of several high school students drowned during a boating accident Tuesday.

Fourteen Albanian students and their teacher drowned after their overloaded boat sank in the Great Prespa Lake, on the border between Albania and Greece. The group was returning from a field trip to a Byzantine-era church on a small island in the lake.

[18] ND deputies to discuss national conference agenda this month

After a session of the New Democracy party's Political Council yesterday, spokesman Prokopis Pavlopoulos welcomed a letter signed by 24 deputies, considered as supporting former premier Constantine Mitsotakis, calling for the convening of the party's parliamentary group within May to discuss the agenda for the party's national conference in June.

"The position expressed by the 24 deputies is not only welcome, it is self-evident for New Democracy, according to its tradition and parliamentary ethics," he said.

Mr. Pavlopoulos said May 22 had been set as the date for convening the parliamentary group, and that he read no other significance behind the move of the 24, which was not discussed by the Political Council.

The Council discussed education issues, the recent State Audit Council decision referring the contract for supply of one million digital telephones by the Siemens and Intracom companies to a public prosecutor on the grounds of irregularities, and the government's recent announcement that it would suspend the granting of further casino licenses.

Mr. Pavlopoulos inferred that New Democracy was in favor of the establishment of private universities, saying that the Political Council stressed the need for promoting the ideas and positions expressed in the party's programme, and the revision of the constitution regarding higher educational establishments.

Concerning the digital telephones issue, he said ND would possibly ask for a parliamentary committee of inquiry after examination of relevant documents.

Regarding casinos, he said ND would table a question in parliament to ascertain possible responsibility.

[19] Simitis meets with Laliotis

Prime Minister Costas Simitis and Environment, Town Planning and Public Works Minister Costas Laliotis met for two hours yesterday.

Sources said topics of discussion included issues of the PASOK party congress next month, and the latest developments regarding a permanent solution to the problem of waste disposal.

There were no statements after the meeting.

[20] Arsenis, Simitis meet on foreign, defense issues

Prime Minister Costas Simitis met yesterday with National Defense Minister Gerassimos Arsenis to discuss a number of foreign and defense issues and exchange views on the forthcoming conference of the ruling PASOK party.

Asked by reporters after the 90-minute meeting to comment on statements in Washington by Foreign Minister Theodoros Pangalos, who expressed "anxiety" about the possibility of a Turkish invasion of the Greek islands in the Aegean, Mr. Arsenis said:

"We have stated that there is a threat from the east (Turkey) and Mr. Pangalos' reference underlines the need to bolster the defense of these islands rather than demilitarize them." Mr. Arsenis said that the Government Council for Foreign Policy and De fence (KYSEA) would convene at the end of the month.

Asked by reporters if there had been an identity of views with Mr. Simitis on issues concerning PASOK, Mr. Arsenis replied "neither convergence, nor divergence."

[21] Tsohatzopoulos: PASOK needs new collective leadership

Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos yesterday expressed his support for a form of collective leadership for the ruling PASOK party.

"I believe that PASOK needs neither monarchies, nor dual or multiple leaderships... We need a new collective leadership with distinct roles for the president, Vice-President and prime minister," he told a special session of the Thessaly Regional Council in Larisa yesterday.

Referring to whether party president Andreas Papandreou should assume the role of honorary president, he stated: "I would advise avoiding admonitions to Andreas Papandreou as to what he must do. This does not correspond to either the history or the identity of PASOK." Mr. Tsohatzopoulos refused to be drawn on his own intentions in the party congress late June, and also declined to comment on whether Prime Minister Costas Simitis should be a candidate for the post of vice president.

Meanwhile, Transport and Communications Under-secretary George Daskalakis expressed the opinion that Andreas Papandreou would be a candidate for the presidency of the party at the congress. "In such a case, I will vote for him," he added.

[22] IOBE report shows economic growth subject to labor conditions

The Institute for Economic and Industrial Studies (IOBE) said yesterday that the revival of economic activity in the country was reflected in the available labor market indicators.

In its economic bulletin 'The Greek Economy', IOBE said that the number of employed in manufacturing industry in the period January-September 1995 fell by just 0.4 per cent, compared to a reduction of 2.9 per cent in the previous year.

IOBE said that the slower drop indicated that the trend towards industrial restructuring which began in 1991 was continuing, albeit at a reduced rate.

In the economy as a whole, employment rose by 2.1 per cent in 1995, compared to an increase of 1.9 per cent in 1994.

The official rate of unemployment (registered unemployed) dropped slightly in 1995 to 7.1 per cent, compared to 7.2 per cent the previous year.

In contrast, total unemployment, according to National Statistics Service (NSS) figures, rose to 10 per cent, up from 9.6 in 1994, despite a 0.9 per cent increase in the number of workers employed on a daily wage basis. In 1994 the corresponding increase was 1.9 per cent.

According to IOBE, these figures reflect the asymmetrical nature of the economic revival which up to now is centered mainly on capital goods production.

It is also considered possible that the unemployment figures were influenced in part by relative stagnancy in the agricultural sector in 1995.

IOBE predicted that unemployment would recede only marginally in 1996.

On the wages front, IOBE said that salaries and wages in the processing sector in the same nine-month period of 1995 rose by 13.6-14 per cent, compared to an increase of approximately 13 per cent in the previous year.

In the commercial sector, the average wage increase was 13 per cent in 1995, compared to 13.3 per cent in 1994.

In real terms (fixed prices), wages rose fairly significantly - 3 per cent in the commercial sector and 3.6-3.9 per cent in processing.

At the level of the economy as a whole, it is estimated that average nominal wages rose by 12.5 per cent in 1995, compared to 11.9 per cent in the previous year.

According to official estimates, the unit cost of labor rose by 11.3 per cent in 1995, against 12.3 per cent in 1994. This estimate is based on the assumption that average production per worker increased by 1.1 per cent in 1995.

This assumption is in turn based on the provisional estimates of GDP and total employment figures for all of 1995 and is likely to be on the optimistic side, given that the trend of average production per worker, for the economy as a whole, was downward in the previous three-year period.

[23] IOBE report on knitwear

The knitwear sector is already experiencing strong competitive pressures from cheaper developing countries both in the Greek market and in Europe.

It is justifiably feared that in the immediate future there will be considerable shrinking in Greek weaving units (by as much as 40 per cent according to assessments by the Panhellenic Federation of Knitwear Handicraft Merchants and Industries).

The development has been referred to in the latest IOBE branch study which states that a precondition for the sector to recover and expand in both the local and foreign market is its productive restructuring and turn from the lower and average quality section of the market to the higher quality one.

Other preconditions are a high degree of product standardization (it does not exist at present) and co-operation with respective European companies.

[24] Papantoniou assures striking construction workers

Construction workers concluded their three-day strike yesterday with a rally outside the national economy ministry in downtown Athens.

Speaking to construction workers' representatives, National Economy Minister Yiannos Papantoniou called the construction sector the economy's "engine," expressing the view that a recent crisis in the sector has ended.

He also said the beginning of several major construction projects around the country will further strengthen the sector, while he also assured workers that commitments made by Labor Minister Evangelos Yiannopoulos will be kept.

Meanwhile, the Federation of Construction Workers said it will soon announced a continuation of mobilizations.

End of English language section.