A.N.A. Bulletin, 14/05/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 885), May 14, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] EU Association Council with Cyprus to go ahead as scheduled today

The European Union's Association Council with Cyprus will go ahead today as scheduled, Foreign Minister Theodoros Pangalos said yesterday after a meeting of the EU General Affairs Council.

"A problem had been created concerning the joint position the '15' would present to the Cypriot side due to the insistence of some of our partners to exert pressure on Greece, linking the accession process of Cyprus to the EU with Community funding to Turkey and, more specifically, with the funding of the MEDA programme," Mr. Pangalos told Greek and foreign reporters yesterday.

"Ultimately, with the reaction of the government last week, Greek positions were heeded. The common position of the '15' will be what it had always been and the Association Council will take place tomorrow according to schedule."

Mr. Pangalos said he told his counterparts that every effort to link Cyprus's association process with the Community with funding for Turkey was "politically in-expedient and morally deplorable."

"If this occurred it would constitute a peculiar form of punishment of Cyprus which has had a considerable section of its territory under Turkish occupation over the past 20 years," he added.

Explaining Greek positions on the issue of Community funding to Turkey, Mr. Pangalos pointed out that Turkey had recently set out, and especially after his recent meeting with his Turkish counterpart Emre Gonensay, aggressive positions against Greece.

He said Turkey had widened its claims on the Imia islet issue and spoke of a "gray zone" in the Aegean and, at the same time, without cooperating in referring problems to the International Court at The Hague.

Mr. Pangalos called the Turkish position "legally untenable and morally unacceptable."

"Under these conditions and for as long as Turkey will continue to raise an issue of revision of borders in violation of the UN's charter and the Helsinki Final Act, the Greek side will continue not to allow Community funding to Turkey," he added.

Mr. Pangalos recalled that such a thing was also anticipated by the agreement on customs union between Turkey and the EU which demands the building of good relations between the neighboring country and the EU member-states.

Referring to the Imia islets issue and Turkey's claims of a "gray zone" in the Aegean, Mr. Pangalos said these issues had been resolved by the Treaty of Lausanne which Turkey had theoretically accepted.

Replying to a questioner on whether Greek-Turkish consultations at foreign minister level would continue, Mr. Pangalos said the representatives of the two foreign ministries would meet in Switzerland soon where Turkey would have to reply to the following three fundamental questions: "What exactly is the gray zone, on what legal basis is its existence based and what took Turkey so many years to discover it?"

Referring to the MEDA programme, Mr. Pangalos said Greece did not want to obstruct the referral of MEDA to the European Parliament and thus chose to abstain from the relevant vote yesterday during the foreign ministers' council.

"The abstention means reservations only for the part of the programme concerning Turkey," Mr. Pangalos said. He did not disclose what Greece's position would be when the issue returned to the General Affairs Council, adding that, on this matter, "the Community must show its political weight not to allow any territorial claims against a member-country and to formulate a code of conduct in relations with associated countries."

Italian Foreign Minister Susanna Agnelli, who presided over the meeting, said that "thanks to the Greek abstention, we have referred the MEDA regulation to Europarliament for a second reading, in order for us to be in a position to adopt it permanently during the next General Affairs Council," set for June 10.

Replying to a question, Ms Agnelli said "no concessions were made to Greece in order to facilitate the promotion of MEDA, but Greece politely accepted to abstain from today's vote."

The Italian EU presidency said it has not yet decided to raise the issue of the funding of Turkey at the summit meeting in Florence on June 21-22, saying that "until then, another foreign minister's council will have been held."

French Foreign Minister Herve de Charette thanked Greece for "its wise stance" and said it was a "positive message which shows that one by one, the problems are being led to a solution."

"But the Greek government has not dropped its reservations," he added.

Replying to a foreign journalist's question on relations between Athens and Skopje, Mr. Pangalos said that Greece has already responded to the commitments it had undertaken with the signing of the New York interim agreement and is waiting for the same actions from the Former Yugoslav Republic of Macedonia.

Mr. Pangalos said one part of the agreement concerned "the search of a name acceptable to both sides," and added that "Skopje must make an effort because the two sides of the agreement are connected."

The foreign minister added that Greece believes it has implemented its part of the agreement, but that the position of Skopje "to maintain their name as it is and not to negotiate for another name does not allow discussions and so the second part of the agreement is not implemented."

[2] Andreas Papandreou has 'substantial political talks' with Skandalidis

Ruling party PASOK Central Committee Secretary Costas Skandalidis had a "substantial political discussion" with PASOK founder and president Andreas Papandreou at the former premier's home in Ekali last night.

The meeting was the first official political meeting the former premier had had since leaving hospital.

Mr. Skandalidis said the party president had expressed his basic thoughts regarding the course to the party's congress next month during their 45-minute meeting.

"The basic conclusion is that Andreas Papandreou stands above expediencies and clashes, and the only thing he is interested in is the unity and prospects for PASOK," he said.

He added he would convey Mr. Papandreou's views to the members of the Executive Bureau today, and the Central Committee on Friday.

Mr. Skandalidis did not reply to a question on whether Mr. Papandreou was in favor of introducing a post of Vice-President in the party, but, according to sources, the party leader is not ruling out anything.

The same sources said there was no question of Mr. Papandreou resigning from the post of party leader.

Mr. Skandalides said he had found Mr. Papandreou in "much better health than I expected," and that very fact was "an interesting element for the party's course, for which he is showing considerable concern".

Asked to comment on the fact that Mr. Papandreou's meetings with party members began with Mr. Skandalidis, government spokesman Dimitris Reppas said the government neither commented on, nor evaluated, or drew any conclusions.

[3] German officials due in Athens for talks

German Christian Democratic Party deputy and foreign affairs spokesman Karl Lamers, and deputy Friedbert Pflueger, vice president of the Joint Greco-German parliamentary group and member of Bundestag's foreign affairs committee, are due in Athens today for talks with the Greek political leadership.

The two men will be received by Prime Minister Costas Simitis and, according to reports, will also meet with the ministers of foreign affairs and defense, Theodoros Pangalos and Gerassimos Arsenis, and New Democracy party leader Miltiades Evert.

The visit is considered important in view of Mr. Lamers' considerable weight in the formulation of the Christian Democratic Party's foreign policy and strategy, and Mr. Pflueger's critical support for Greece in its national issues.

On the eve of Mr. Simitis' visit to Germany in February, Mr. Lamers had called for "a more substantial attention of German foreign policy to the Aegean concerns," and had noted that "Greece's unusually difficult relation with Turkey is a burden to the whole of the European Union.

He had also said that "when the sovereignty of a member-state of the European Union is disputed from outside, then the Union must cover that member-state..."

Mr. Lamers, who is viewed as a Europeanist, and views such solidarity as a "position of principle", favors joint formulation of the European Union's stand on the Aegean problems - having said "neither can Greece demand an a priori endorsement of its positions as positions of the European Union, nor can the other partners in the EU determine its positions towards Turkey in Greece's absence" - and co-operation between Greece and Turkey in determining their problems and dealing with them.

[4] German alternate FM calls for an end to 'quarrels over little islands'

Germany's Alternate Foreign Minister Helmut Schaefer reiterated Bonn's "traditional" approach to Greek-Turkish differences yesterday, in response to questions during a Berlin foreign press correspondents' luncheon.

"You must resolve your differences and stop quarreling over little islands," the German official was reported as telling a Greek journalist, before expressing his surprise at what he called "an outbreak of nationalism in Greece..."

Mr. Schaefer also was quoted as saying that he could not "discern anywhere" Turkey's aggressiveness, and called on Athens to stop blocking the application of a European Union-Turkey customs union. In addition, he also said his "personal opinion" was that "it would not bother him" if Turkey became a full EU member.

[5] Yilmaz hopeful of meeting with Simitis

Turkish Prime Minister Mesut Yilmaz reportedly stated yesterday that a meeting between himself and Greek Premier Costas Simitis could take place under "certain conditions."

The Turkish premier and president of the Motherland Party (ANAP) made the exclusive statement to the editor-in-chief of the Istanbul daily 'Hurriyet.'

"A meeting could take place on the sidelines of the United Nations general assembly or during a NATO summit meeting, however, this should be done with a certain order... the foreign ministers would first have to meet," Mr. Yilmaz is quoted as saying.

Meanwhile, the leader of the True Path (DYP) party and former Turkish premier Tansu Ciller warned Mr. Yilmaz, her government coalition partner, not "start playing games with the Greeks," in reference to initiatives the Yilmaz government has recently pro posed concerning Greek-Turkish bilateral relations. Ms. Ciller made the statements during a speech to a DYP conference in Istanbul Sunday.

"If you (Yilmaz), while those (Greek) soldiers were departing Kardak (Imia) and that flag was lowered, step on our national prestige, hold the nation's head downcast and start playing games with the Greeks, then be careful because I will call you to account."

Although Ms Ciller has repeatedly criticized Mr. Yilmaz on the subject, current Turkish Foreign Minister Emre Gonensay, a DYP top cadre, has so far shown a reluctance to criticize the Yilmaz statements.

[6] President calls on international community to end tacit acceptance of Turkish expansionism

President of the Republic Kostis Stephanopoulos yesterday called on the international community to put an end to Turkey's intransigence and expansionism, saying that such behavior concealed dangers for the safety and stability in Europe.

Mr. Stephanopoulos said that the international community need not support Greece, but that it needed to remind Turkey of its international commitments as these emanate from the international legal order.

Continuing his tour of Greek communities in the United States, the Greek president spoke on "Greek-Turkish relations in the light of international law" at an event organized by the World Affairs Council.

Mr. Stephanopoulos said the mission of the Fourth Turkish Army Corps, the only part of the Turkish army which is not fully integrated into the NATO structure, was to invade the Greek islands at the first favorable opportunity.

Noting the US interest in a settlement of Greek-Turkish problems, Mr. Stephanopoulos said relations between the two countries had almost reached the point of armed conflict during the Imia incident. Hostilities were avoided only at the last minute and after great efforts by the US, he said.

Stressing that the source of problems between the two countries was Ankara's resistance to the idea that the Aegean islands belonged to Greece as provided for in the Treaty of Lausanne, the Greek President reminded his audience that Turkish officials had often asked for a revision of the Treaty in the past.

Mr. Stephanopoulos reiterated that if Turkey truly wished for a settlement to the legal problem of the delineation of the continental shelf it would refer the issue to the International Court at The Hague.

"Instead, Turkey wishes to settle the issue on the basis of equity which means that it sets the issue on political instead of legal framework, aiming at a partition of the Aegean," Mr. Stephanopoulos said.

He added that "this is the reason why the Turks refer to the Greek islands as the Aegean islands."

Elaborating on Turkish claims on Greek airspace and territorial waters in the Aegean, Mr. Stephanopoulos stressed that Ankara's war threats in the event that Greece expanded its territorial waters in the Aegean constituted a clear-cut violation of the U N Charter.

He further noted that the Imia issue was a confirmation of the offensive nature of the Fourth Army Corps and constituted the first direct dispute of Greece's territorial integrity.

In reference to recent statements by Turkish Foreign Minister Emre Gonensay that there are "gray areas" in the Aegean, the Greek president said such claims contradicted the terms of the Lausanne treaty.

Calling on Western leaders to realize that Turkey's policy endangered the stability and safety of the entire Europe, Mr. Stephanopoulos renounced Western "tolerance" of Turkey, drawing attention to the fact that although "the international community condemns Ankara's policy it nevertheless endorses a policy of tolerance; in citing the Islamic danger, it virtually accepts Turkey's unlawful behavior."

"Such tolerance encourages Ankara's offensiveness and leads to an increased possibility for conflict," he added.

Stressing that Greece opposed a Greek-Turkish dialogue on conditions set by Turkey, Mr. Stephanopoulos said that such a development would aim at Turkish claims being accepted and problems being solved on the basis of its own political conditions.

Referring to Turkish Prime Minister Mesut Yilmaz's recent statements regarding dialogue between the two neighbors with the aim of solving pending problems, the Greek president said that "if Ankara wanted to prove the sincerity of its intentions it should accept the five points of the EU statement and either withdraw its claims on Imia or refer to the International Court of The Hague."

In addition, Mr. Stephanopoulos added, the Turkish National Assembly should have withdrawn its authorization to the Turkish government allowing it to wage war on Greece.

Mr. Stephanopoulos arrived in Los Angeles, the fourth stop on his US itinerary, yesterday, and attended a mass at the city's St. Sofia Church.

Calling upon the members of the city's Greek community to always remain "Greek at heart, in feelings and in language," Mr. Stephanopoulos prompted them in their capacity as US citizens to exert their influence on the US leadership in order to promote Greece's national issues.

Stressing that Greece "is undergoing difficulties in its national issues," the president said things were going smoothly on domestic front, adding that "after so many years in politics I have realized that no single party is the sole expressor of truth. "

[7] Samaras speaks in Peristeri

In an open air rally in Peristeri, Athens, last night, Political Spring party leader Antonis Samaras described Prime Minister Costas Simitis as the most dangerous leader modern Greece has had, stressing that the hour Greece was going through was dangerous and tragic due to the mutual political cover offered by the two main parties.

"Today's political establishment is dead," he added.

Referring to national issues, he said there was a danger of Hellenism shrinking, and of a loss of vital national interests, as developments were in the making, casting doubt on our very national sovereignty.

He cited the Aegean, Cyprus and Macedonia as examples where Greece continues to suffer repeated "humiliations".

[8] Simitis, Venizelos meet

Justice Minister Evangelos Venizelos met with Prime Minister Costas Simitis yesterday for a discussion that included - apart from the OTE issue - the issue of the bill on ministerial responsibilities.

The justice minister said he proposed a solution to the issue within the framework of the law which covers the sensibilities of PASOK deputies who had reacted against provisions of the bill. Mr. Venizelos said the prime minister is to brief the inner cabinet on the changes tomorrow.

Mr. Venizelos said the two men also discussed internal party developments in a "friendly and productive manner" on the basis of a common goal, which is unity, and PASOK's ability to be in power and to win the next general elections.

The justice minister said a negative image is often created which does not do justice to PASOK members or to the work of the government.

Mr. Venizelos added that last night's meeting between party president Andreas Papandreou and PASOK Secretary Costas Skandalidis was very important in order for Mr. Papandreou's wishes to be known.

The inner cabinet will convene today to discuss the course of regional infrastructure works and the law on the accountability of ministers, government spokesman Dimitris Reppas said yesterday.

On Thursday, the spokesman added, the full cabinet will meet to examine issues within the competence of the ministry for the Aegean.

[9] Prosecutor seeks felony charges in OTE-Intracom, Siemens contracts

Justice Minister Evangelos Venizelos yesterday asked the Supreme Court prosecutor to begin an inquiry into newspaper allegations that senior officials of the Hellenic Telecommunications Organization (OTE) had received kickbacks in the awarding of digital phone line contracts to the Intracom and Siemens firms through tendering.

"Greece's public life cannot tolerate any shadow over it," Mr. Venizelos said in an 'extremely urgent' letter to prosecutor Athanassios Sioulas.

"I am certain that the main article in the 'Sunday Kathimerini' newspaper of May 12 referring to the (alleged) provision of kickbacks to OTE officials over a relatively long period of time through accounts in foreign banks has attracted your attention and professional interest as prosecutor," Mr. Venizelos said in his letter.

"Please proceed with all legal actions for the full and speedy clarification of this matter. It is self-evident that the justice ministry will quickly process any requests of the prosecutor or judicial authorities for the provision of assistance from foreign judicial or other authorities," it said.

Mr. Venizelos later briefed Prime Minister Costas Simitis on the judicial aspect of the digital phone allegations and the letter which he sent to Mr. Sioulas.

Speaking to reporters afterwards, Mr. Venizelos clarified that he had not spoken to Mr. Simitis before sending the letter, saying that it had been "a self-evident reaction of the government through the justice minister."

He stressed that the government did not wish there to be any "shadow" hanging over public life. 'Sunday Kathimerini' alleged that at least eight bank accounts abroad were being "fed" by a central account in Handels Bank Berlin (in former East Berlin) in the names of the president and Vice-President of Intracom and an east German citizen. It said sums amounting to more than $6 million (1.5 billion drachmas) had been channeled from the central account in Berlin to at least eight other accounts in western banks between 1987-1991.

The newspaper said that the names of high-ranking OTE officials and consultants - who were those who formulated the technological and economic terms of the tendering - were "involved" in those accounts.

[10] Prosecutor seeks felony charges

In a related development, the Athens Appeals prosecutor carrying out the further preliminary inquiry into the State Audit Council report on irregularities in the Hellenic Telecommunications Organization (OTE) contract for the provision of one million digital telephones by the Siemens and Intracom companies has recommended convening the plenum of the appellate judges, after indictments are issued on three criminal and three misdemeanor charges against anyone responsible.

The three criminal charges concern repeated fraud, making false statements, and giving and receiving bribes in combination with the law regarding embezzlement of public monies.

The misdemeanors charges concern dereliction of duty, making false statements, and instigating the above offenses.

The State Audit Council earlier this month ruled that the awarding of an OTE contract for the provision of one million digital telephones to the Siemens-Intracom consortium in 1994 was illegal, citing irregularities in the tendering procedure and insufficient consideration given to pricing and rival bids. It said the irregularities were such as to render the contract null.

[11] Gov't, opposition reactions

The government later expressed its "strong" interest in the OTE inquiry "so that the whole truth may be revealed."

"The government is willing to deal with any questions which might be raised and its desire is for justice to perform its task unhindered and undistracted, so that not the slightest shadow hangs over public life," government spokesman Dimitris Reppas said.

The spokesman said that the government aimed at serving the public interest "on the condition that everything is conducted with complete transparency which is necessary in decision-taking in matters of such importance."

Asked whether OTE would go ahead with the signing of a contract for 300,000 new digital phone lines following the Kathimerini article, Mr. Reppas said that "when the board of directors of OTE is called on to take the relevant decision, that decision will be based on the interests of the organization."

Mr. Reppas added that the government was working with OTE President Dimitris Papoulias and the organization's Managing Director Petros Lambrou.

According to informed sources, main opposition New Democracy (ND) party leader Miltiades Evert yesterday sent a letter to Supreme Court president Vassilis Kokkinos asking whether the possibility of ND tabling a motion in parliament for the formation of a fact-finding committee to investigate the OTE issue would obstruct justice.

ND has already requested a copy of the findings of the State Audit Council and all relevant documents in order to decide whether to seek the formation of such a committee.

At a meeting yesterday chaired by Mr. Evert, former national economy minister Stephanos Manos reportedly proposed that the investigation into the allegations of wrong-doing should be assigned to a foreign, independent consultancy firm.

In a relevant development, ND issued an announcement calling on the government to hold an in-depth investigation on the case, adding that a first step would be the disclosure of the names of those involved.

Political Spring spokesman Notis Martakis expressed satisfaction at the fact that the government had "adopted" his party's view that the judiciary should be allowed to perform its task freely and without distraction with respect to the digital phone is sue.

Mr. Martakis added that the issue must be investigated in depth and responsibility attributed wherever it might belong.

A Communist Party of Greece (KKE) statement said that Sunday's newspaper articles on the OTE affair revealed "the consequences of the fierce war between major interests, in a parallel and two-way relationship with political games in progress".

The KKE attributed responsibility to both the ruling PASOK party and the main opposition New Democracy party, charging that their legislation had rendered the national telecommunications sector "an easy target for the profiteering designs of the multinationals."

[12] Venizelos in Parliament

The government will assist investigations both in Greece and abroad in the digital telephones affair, as the country's public life can tolerate no shadows, Justice Minister Evangelos Venizelos said in Parliament last night.

Replying to criticism by former New Democracy prime minister Constantine Mitsotakis that the government initially obstructed and later delayed the judicial investigation, Mr. Venizelos said that the State Audit Council investigation was ordered by a joint decision of the ministers of transport and communications, justice and interior in December 1995.

Mr. Mitsotakis also said Parliament had a duty to deal with economic criminal activity so that it might not be considered that politicians generally wish to cover up such affairs.

Mr. Venizelos countered that he had dispatched the relevant document to the Supreme Court prosecutor Athanasios Sioulas yesterday, following Sunday's press report.

"I imagine you didn't expect quicker reflexes than that," he said.

In a statement yesterday, Mr. Sioulas came out in favor of convening the plenum of appellate judges to appoint one or two investigating judges for the case.

[13] Kaklamanis meets with Russian political leaders

Parliament President Apostolos Kaklamanis held talks with Russian political party leaders yesterday on the second day of his four-day visit to Russia.

Mr. Kaklamanis met with a delegation of the Communist Party, the president of the ruling party's Parliamentary Group, the President of the Russian Duma's foreign affairs committee, the Parliament's Greek-Russian Friendship Group and the Mayor of Moscow Yuri Luzkov.

Mr. Kaklamanis' talks focused on Greek national issues, Greek-Russian economic co-operation and the political situation in Russia.

President of the Duma's foreign affairs committee, Vladimir Lukin, supported a speedy resolution of the Cyprus problem, adding that Greece's positions regarding the Imia crisis were supported by international law.

"Our country's problems have proven that being a NATO member state does not ensure safety...," Mr. Lukin said, calling on the West to endorse a more pragmatic position on the Bosnian problem.

"It is not possible," Mr. Lukin said, "to persecute for war crimes Moslem soldiers on the one hand and on the other the political leadership of the Serbs."

Head of the Parliamentary Group of the "Russia is Our Home" party, Sergei Beliaef briefed Mr. Kaklamanis on internal developments in Russia in view of the June presidential elections.

Mr. Kaklamanis told reporters that the election results would not have any effect on Greek-Russian relations.

Today, the Greek president of parliament is scheduled to have meetings with the presidents of the two houses of the Russian Parliament, Gennady Selezniov and Yegor Stroef.

He is also due to meet with government vice president responsible for economic issues Vladimir Kantanikov, Foreign Minister Yevgeny Primakov and Patriarch Alexios of Moscow and All Russia.

[14] Mitsotakis calls for junta leaders to be released from prison

Former premier Constantine Mitsotakis yesterday called for the release from prison of those responsible for the 1967 coup.

Speaking in Parliament yesterday, the honorary president of the main New Democracy said that "the idea for the granting of leniency to these people has matured in public opinion" and that "democracy is not in danger, it is big-hearted and forgiving... 80-year-old people at the end of their lives are harmless."

Mr. Mitsotakis added that he could not understand why murderers were being released from prison and not those who have paid dearly for their actions.

He said that during his premiership in 1991, he had decided to grant an amnesty to the junta leaders, a decision with which the then President of the Republic Constantine Karamanlis had also agreed. However, due to strong reactions in both Greece and Cyprus, the idea was shelved.

Justice Minister Evangelos Venizelos said the government's position is that "democracy does not take revenge, is generous, is not afraid but remembers and wants to honor the memory of history. We insist on our position and on what Mr. Karamanlis had said in 1975", referring to the then prime minister's comment that "when we say life (imprisonment) we mean life".

Political Spring party representative Andreas Lentakis also called for the junta leaders' release, saying that "22 years is a lot, these people have been punished enough, they must be released from prison."

Communist Party of Greece (KKE) parliamentary representative Antonis Skylakos stressed his party categorically opposed a pardon being granted to the junta leaders, not only for history, but also to set an example.

[15] Mayors present alternate proposal for Attica waste management

A new study conducted by Patra University which defines an area in Eastern Attica for waste management has been proposed to the environment, town planning and public works ministry by the 46 mayors and prefects of Attica municipalities, who met yesterday at the Pallini town hall.

According to the proposal, the area in question will handle 30 per cent of the capital's rubbish, although the mayors have not said whether a land-fill or an incinerator will be created.

Environment, Town Planning and Public Works Minister Costas Laliotis, who is insisting on his proposal for the creation of three land-fills, met with main opposition New Democracy leader Miltiades Evert last night in order to brief him on the issue.

After the meeting, Mr. Laliotis said the ministry is to announce the Athens polytechnic's proposal for the creation of two new land-fills in eastern Attica on May 25 to local self-administration bodies and to the Union of Attica Municipalities and Communities (TEDKNA).

Mr. Laliotis added that the ministry will make its decisions and will submit them to Parliament whether the prefects agree or not.

During the meeting last night with Mr. Evert, the use of an incinerator for the rubbish in the Attica region was ruled out. Mr. Laliotis said his meeting with Mr. Evert was fruitful and it was made clear that the programme for the collection of rubbish an d the creation of land-fill sites must proceed.

Former environment, town planning and public works under-secretary George Voulgarakis, who attended the meeting, confirmed there was an agreement against the use of an incinerator. He said the responsibility for the finding of a solution rests with the environment ministry, and added that it should not be bringing the matter up in parliament as it will lead to a division of responsibility.

Mr. Voulgarakis said Mr. Laliotis gave a full briefing on the issue during the meeting, and added that New Democracy is following developments and will take a position on the matter soon.

Mr. Laliotis is due to brief Political Spring party leader Antonis Samaras today and Coalition of the Left and Progress leader Nikos Constantopoulos on Wednesday. No date has been set for the briefing of Communist Party of Greece leader Aleka Papariga.

[16] Papantoniou confident about course of economy

National Economy Minister Yiannos Papantoniou yesterday expressed optimism about the course of the Greek economy and said the recent slight increase in inflation was due to a "conjunction" brought about by extraneous factors.

Mr. Papantoniou, who is currently touring Crete, was categorical in stating that by the end of the current year, Greece will have covered two-thirds of "the distance separating the country from the criteria of the Maastricht Treaty", stressing however t hat a great effort was still needed.

Commenting on the recent increases in fuel prices, Mr. Papantoniou predicted that the situation would soon stabilize, expressing the view that prices would fall in the summer.

[17] Japanese loan to finance export promotions, efforts

The national economy and finance ministries and the Commercial Bank have secured a loan from Japan's Export-Import Bank to fund the country's export enterprises and promote exports.

The agreement, signed on May 10, anticipates lending the Commercial Bank up to 30 billion yen (about 70 billion drachmas). The duration of the loan, granted with a guarantee by the Greek state, amounts to 13 years, including a three-year grace period, while the interest rate will be the long-term base interest rate charged in the Japanese market.

The money obtained from the loan will be provided by the Commercial Bank, as well as by other banks, for the country's wider exports enterprise sector.

An announcement by the national economy ministry said long-term loans would be granted to export companies to be used for investments aimed at increasing production, restructuring and modernizing and acquiring more permanent working capital.

[18] News in Brief

Education Under-secretary George Paschalidis leaves today for Berlin for talks with German Education Minister Ingrid Stamer focusing on the establishment of a Greek-German department in the Berlin-based European State School. Tomorrow, Mr. Paschalidis will go to Dusseldorf for visits to Greek schools.

Istanbul, 14/05/1996 (ANA)

Unknown persons vandalized a Greek Orthodox cemetery recently on the island of Halki, in the Sea of Marmara, destroying crosses and photographs on graves. According to Turkish press reports, indications point to supporters of ultra-nationalist leader Alpaslan Turkes' MHP party.

Damascus, 14/05/1996 (ANA)

Greek foreign ministry Secretary-General Ambassador K. Georgiou held talks yesterday here with Egyptian Foreign Minister Farouk al Sharaa and Alternate Foreign Minister Adnan Omrane. The talks, focusing on bilateral and regional issues of mutual interest, were held within the framework of Mr. Georgiou's visits to Egypt, Jordan and Syria.

End of English language section.