A.N.A. Bulletin, 05/06/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 903), June 5, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Gov't ridicules Turkish view of Gavdos as a 'disputed area'

The government yesterday described Turkey as an "international troublemaker" whose provocations know no bounds.

Government spokesman Dimitris Reppas made the comment in reference to a dispute raised by a Turkish naval officer, who asked on Monday that the inhabited Greek island of Gavdos, off southern Crete, be excluded from the planning of a NATO exercise scheduled in September, claiming that it constitutes a "disputed area."

"This behavior on the part of Turkey shows that the neighboring country is an international troublemaker... and this should be taken into serious consideration by the international community," Mr. Reppas said in reply to questions during his regular press briefing.

"Its problems are not problems with Greece, but problems with the international legal order," he said, adding, "there exist international treaties and rules which must be respected."

Asked whether Greece had lodged demarches to NATO and NATO Secretary General Javier Solana, the spokesman said Greece "has taken all necessary steps in both the military and political circles, so as to make its views clear." He added that the issue raised by the Turkish officer was non-existent for Greece.

The Turkish objection was overruled following a strong reaction by the Greek representative, and Gavdos was finally included in the planned exercise.

In an another matter, when asked about reported intentions by Ankara to transfer Asia Minor settlers on the one-time predominately ethnic Greek-populated island of Imvros in the northeastern Aegean, Mr. Reppas stated that such a policy would alter the G reek character of the island, and would be in violation of the Treaty of Lausanne.

"We shall not remain indifferent to such an effort," he said.

He added that NATO appeared weak in solving serious problems between its member-states.

[2] Pangalos statements

Foreign Minister Theodoros Pangalos said yesterday that the claim formulated by Turkey's representative at NATO's regional headquarters in Naples that the island of Gavdos be excluded from exercise planning was "the utmost irresponsibility" and wondered whether the Turk "was insane."

"This event goes further than anything else that has taken place until now. Unless the captain (the Turkish representative in Naples) is insane, in which case he should be removed from his position," Mr. Pangalos said.

He presented the Turkish representative's statement, the Greek reply and a map to Greek and Turkish reporters, saying that "what we have to do is first to organize our defense, and secondly to call on all our partners to state their case."

According to reports, Mr. Pangalos has already delivered this file to the Secretary-General and Karl Naumann, the president of NATO's military committee.

Referring to the issues of the Larisa NATO headquarters and the allies' rapid deployment force headquarters in Thessaloniki, which have stalled due to Turkish reactions, Mr. Pangalos said "the new (internal NATO) structures might help resolve the deadlock created on the southern flank by Turkish intransigence."

Mr. Pangalos said the issue which had appeared on Monday's NATO meeting concerning the Turkish proposal on the role of West European Union (WEU) associate members "was resolved," and this problem was not primarily a Greek-Turkish disagreement but a problem between Turkey and many European partners.

Mr. Pangalos on Monday vetoed a Turkish proposal allowing WEU associate members, such as Turkey, be granted the right to participate voluntarily in the union's military exercises and within the framework of NATO reforms.

"Turkey claimed that NATO should dictate to the WEU the ways in which associate countries will participate. The prevailing view, primarily by the speeches of many of NATO's European partners is that WEU countries will determine, in the framework of the WEU, the way with which they will co-operate with associate countries and that this will not be imposed on them by NATO where, as it is known, countries which are not WEU members also participate," he added.

[3] Reactions

Sources said that New Democracy leader Miltiades Evert, commenting on the issue during yesterday's morning meeting with his aides, said "Mr. (Costas) Simitis is seeking supposedly clear solutions for his party, and is receiving gray areas in the Aegean. History will record the prime ministerial term as gray and himself as the prime minister of national humiliations."

Political Spring party spokesman Notis Martakis criticized the government, and the prime minister personally, for his handling of Greek-Turkish relations.

"The only thing Mr. Simitis has achieved with his 'step-by-step' approach is to boost Turkish provocativeness, which is now nearing the bounds of irrationality," he said.

[4] World Environment Day marked today in Greece

In a message on World Environment Day today President of the Republic Kostis Stephanopoulos stressed the need for governments and large international organizations to undertake initiatives required for promoting a "global campaign" for real environmental protection and restoration of an ecological balance on the planet.

"The unrelenting question faced by mankind today is attainment of a balance between development and the protection of the environment.

"The realization of this balance can be approached through the formulation of a common environmental policy on a world scale, which, beyond political will, also requires huge economic expenses... The future of mankind depends on the application of such a policy," he said.

In his message, main opposition New Democracy leader Miltiades Evert said protection and upgrading of the environment was the biggest challenge for all, and the most pressing duty toward coming generations.

"In this sense, World Environment Day cannot but be considered as a day of responsibility and reflection for every citizen, and much more so, for every politician," he said.

He warned, however, that "ecological conscience and sensitivity are neither developed nor cultivated effectively through sporadic annual events... World Environment Day, unfortunately, finds our country, this year too, without a strategy and a programme for dealing with the large and crucial ecological problems."

The Political Spring party said in its message that environmental protection necessitates the cultivation of an appropriate social conscience, and stresses the need for preventive action by all to secure the natural balance on earth.

The Communist Party of Greece (KKE) said in a statement that there was a need for a different policy, centered on man, and be willing to clash directly with large economic interests and multiple interests interwoven with them.

It also accused the government of lack of credibility in tackling several serious environmental problems, which are added to those of unemployment and falling living standards.

The Coalition of the Left issued a statement saying that the day was not opportune for triumvirates and new promises, requiring reflection and seriousness, and the political leadership of the country to adopt a self-critical attitude toward its commitments and record.

On the occasion of World Environment Day today, the environment ministry is organizing a series of events in the Agioi Anargyroi park.

The Technical Chamber of Greece (TEE) is holding a one-day seminar at 9:30 this morning on the management and disposal of dangerous waste.

[5] Santer to Yilmaz: Greek borders also EU's

European Commission President Jacques Santer met with Turkish Prime Minister Mesut Yilmaz in Brussels yesterday as part of Ankara's efforts to gauge Mr. Santer's views regarding the freezing of EU aid to Turkey.

Mr. Santer said Ankara's insistence in solving differences with Greece over the Aegean in the form of a total package is politically burdensome and consequently makes a solution to the current problems regarding Turkey's relations with the EU difficult.

According to reliable sources, Mr. Santer explained to the Turkish prime minister that the method being proposed by Ankara for a simultaneous solution of all differences between Greece and Turkey is in danger of delaying the lifting of the embargo, which has been placed on the full implementation of the EU-Turkey Customs Union agreements signed on March 6, 1995.

The same sources added that the Commission president believes the shortest route to EU-Turkish financial co-operation foreseen in the Customs Union agreement is for attention to focus on the Imia problem and for the issue of the rocky islets' sovereignty to be placed before an international adjudicating body.

In speaking to reporters, Mr. Santer said "Greece's external borders are also the European Union's borders. For this reason it is important to the European Commission for Greek-Turkish differences to be resolved so that there can be clarity regarding these borders. The International Court at The Hague constitutes a medium for the search for a solution."

Mr. Santer repeatedly stressed that the customs union agreement "constitutes a package and must be implemented as such.

Mr. Yilmaz repeated his country's position that "the obstacles being placed by Athens on implementation of the financial co-operation (between the EU and Turkey) constitute an EU problem and must be solved by it alone."

Replying to a reporter's question regarding Ankara's claim on Monday that the inhabited island of Gavdos, off southern Crete, is a disputed area, Mr. Yilmaz said "there are certain islets and rocky islets in the Aegean whose regime is not clear according to the Treaty of Lausanne. At the end of March we directed an appeal to the Greek government to begin a dialogue with the aim of peacefully resolving all problems between the two countries through negotiations. In the case where these negotiations fail, Turkey is prepared to accept third party solutions, including that of the International Court."

[6] Greek-American leaders meet with Clinton

Leading members of the Greek-American community discussed important Greek national issues with US President Bill Clinton at the White House yesterday.

Expatriates at the meeting are Democratic Party supporters as well as contributors to President Clinton's election campaign.

During the meeting, the course of Greek-Turkish relations were discussed, especially after the Imia crisis, while particular attention was paid to the continuing policy of threats and provocations by Ankara, which they said is in conflict with Mr. Clinton's appeals for avoidance of such actions.

Greek-American leaders also pointed to repeated violations of Greek airspace by Turkish aircraft, and asked Washington to pressure Ankara in order for Turkey to refer the Imia and the continental shelf issues to the International Court of Justice at The Hague.

In addition, the Cyprus problem was discussed, with emphasis placed on the need for total US support over Cyprus' course for entry into the European Union and for the island's demilitarization.

Violations of human and political rights of the ethnic Greek minority in Albania was also discussed during the meeting.

Expatriates referred to the problems being faced by the Ecumenical Patriarchate due to its treatment by Turkish authorities, and also spoke of the need for Washington to support the proposed Burgas-Alexandroupolis oil pipeline, which is envisioned to transport Russian crude oil.

[7] Kurdish protesters stage hunger strikes in solidarity to imprisoned compatriots

Dozens of Kurdish political refugees staged a hunger strike in downtown Athens yesterday to protest what they called "atrocities of the Turkish state" against "thousands of Kurdish war prisoners suffering increasing oppression" in Turkish dungeons.

Complete with banners, leaflets and Kurdish dances, the protesters, mostly affiliated with the Kurdistan National Liberation Front (ERNK), informed curious Athens citizens of attacks by "mercenaries and gendarmes" against prisoners, resulting in the injury of 19 people and the self-immolation of two of them in protest over the attacks, they said.

During a press conference at Klafthmonos Square, demonstrators said similar hunger strikes in solidarity with hunger strikes commenced May 28 by the Kurdish prisoners in Turkish jails were taking place in Brussels, Bonn, Berne, London, Stockholm and Bucharest.

[8] FYROM name negotiations postponed

A scheduled resumption of negotiations under the aegis of United Nations mediator Cyrus Vance yesterday between Greece and the Former Yugoslav Republic of Macedonia (FYROM) on the question of the latter's name were postponed until tomorrow, if not Friday or early next week.

The reason for the postponement was continuation of work at UN headquarters by an organization subcommittee on missing persons, in which FYROM Vice-President Ivan Tosevski is participating.

Talks are scheduled as part of Article 5 of an interim agreement signed between the two nations last September.

[9] Pangalos comments on Bosnia issue

Foreign Minister Theodoros Pangalos said yesterday that war crimes should be immediately and fully investigated regardless of who the alleged perpetrators are, adding that punishment should follow if the suspects are found guilty .

Mr. Pangalos made the statement in reference to a question on the future of Bosnian Serb leader Radovan Karadzic.

"We have the general position that when war crimes have been perpetrated by whoever there should be a serious investigation and culprits should be possibly punished. However, we must also notice the political expediencies in maintaining a climate of calm in the region in order to have the Dayton agreement implemented. Therefore, I will not speak to you specifically of one person or another because I believe that in pointing to one person or another we are violating the principle I just mentioned on the equal handling of war crimes perpetrated by all and not only by some persons or by one person," Mr. Pangalos clarified.

Replying to a question by a reporter from the Former Yugoslav Republic of Macedonia (FYROM) on possible private talks with FYROM Foreign Minister Ljubomir Frckovski, at the latter's request, Mr. Pangalos said "I do not think a political meeting would be useful at the present moment, but I will tell him good morning and inquire about his health."

Mr. Pangalos said that "Skopje does not honor the interim agreement despite the fact that Greece has implemented every part of it" and, addressing the questioner, added that "a mutually acceptable solution to the issue of the name is being sought with the interim agreement and your position is that the sole name possible is the one you have now, in this way limiting every possibility of negotiating."

Asked about a report in the London-based "Financial Times" daily that the international community's representative in Bosnia Carl Bildt protested to Athens over a study by the Hellenic Telecommunications Organization (OTE) concerning the installation of military and civil telecommunications networks exclusively in Bosnian Serb regions, Mr. Pangalos attributed it to a conflict of interests and said "everything is taking place because someone wants the contractor" adding that Mr. Bildt, with whom he talked and dined, mentioned nothing to him about the issue.

Press reports, however, insist that Mr. Bildt confirmed the relevant report yesterday, saying to reporters that "a one-sided study is contrary to the spirit of the agreements on Bosnia" and that "the Greeks are welcome for such activities but in the spirit of reinforcing Bosnia as a state in general, and not the Bosnian Serbs alone."

[10] McRae first in Acropolis Rally

British world champion driver Colin McRae, driving a Subaru Impreza, was declared the winner yesterday of the 43rd 1,130-km-long Acropolis Rally at the event's conclusion.

He is the first British national to win the event since 1968.

Second and third place were taken by Finnish driver Tommi Makinen, in a Mitsubishi Lancer, and Spaniard Carlos Sainz, driving in a Ford Escort Cosworth.

[11] Dispute between Simitis, Tsohatzopoulos denied

Government spokesman Dimitris Reppas yesterday denied there was any clash between Prime Minister Costas Simitis and Interior Minister Akis Tsohatzopoulos in view of the party's congress at the end of the month.

Asked whether the prime minister intended to resign if not elected party Vice-President, Mr. Reppas said that when the prime minister had something to say, he would say it publicly.

He added that the government faced no prospect of early elections, and the congress would be a successful one.

Meanwhile, central committee secretary Costas Skandalidis, stated after meeting former deputy prime-minister Yiannis Haralambopoulos yesterday that he did not fear a break up in the party, but hoped for greater earnestness among members in the coming crucial days.

Mr. Haralambopoulos told reporters that party president Andreas Papandreou was the founder and leader of PASOK, and would continue playing his unifying role in the party if his health improved further.

Mr. Skandalidis has planned further meetings with other prominent party members.

[12] Venizelos on official visit to EU judicial bodies

Justice Minister Evangelos Venizelos conducted an official visit to the European Court, the European Communities' Audit Council and the EU's first instance court in Luxembourg yesterday, representing Greece in the EU justice ministers' council.

Mr. Venizelos met with the presidents of these three European Union bodies and discussed matters of bilateral interest, which included relations between the EU and the Greek audit councils and matters arising from the intergovernmental conference, such as the appointment of members of the European Court.

The main issue discussed during the session of the justice ministers' council was the ratification of the agreement on Europol, the European crime interdiction agency. However, the ratification did not go through due to Britain's current policy of non-cooperation regarding decisions needing unanimity, in protest of an EU ban on exports of British beef to the Union.

[13] Director of EU cohesion fund comments favorably on Egnatia Highway's progress

In a press conference in Thessaloniki yesterday, the director of the European Union's Cohesion Fund appeared satisfied with progress in the construction of the Egnatia Highway across northern Greece.

Jean Francois Vestrynge added that efforts would continue toward completion of the project and overcoming of certain delays noted in construction of the Patra-Athens-Bulgarian border highway network, modernization of the country's railway network and completion of environmental projects.

He pinpointed the problem in the non-appointment of managing directors for the projects, and delays in public procurement tenders, which are in turn due to the large discounts offered by bidders.

He added that certain funds blocked due to such delays were not in danger of being lost until 1999.

[14] Central bank unveils measures to restrict credit expansion, liquidity

The Bank of Greece yesterday announced a series of measures aimed at restricting credit expansion and liquidity in the economy, reducing the possibility of consumer and personal loans being obtained from banks which have showed a sharp increase in past months, fueled by tough competition among banks.

The measures also curb risks facing commercial banks and consumers themselves, who are menaced by the specter of overindebtedness.

More specifically, it was decided that the amount of consumer loans to be provided for the purchase of durable goods or the rendering of services should no longer exceed 65 per cent of the value of the expenditure being funded, while the remaining 35 per cent will be paid to the bank by the buyer receiving the loan.

Additionally, consumers will not be allowed to obtain personal loans from more than one bank without supporting documents for up to one million drachmas.

Until a necessary data bank is created to check the above limitation, banks will request that customers provide an official statement that they have no outstanding debts from a personal loan with any other bank.

The Bank of Greece also decided to increase the percentage of compulsory deposits by commercial banks with the central bank from 11 per cent to 12 per cent (in this way absorbing a part of excess liquidity in the inter-bank market), while at the same time real estate and mortgage banks will be subjected for the first time to a system of compulsory deposits - a development which indirectly "reins in" housing credit as well.

It was further decided that new and renewable deposits and loans by non-residents in Greece (primarily in foreign exchange) of a duration of more than two years will henceforth be included in the basis of assessing compulsory deposits, in this way commercial banks will be discouraged from giving loans in foreign exchange.

The Bank of Greece believes the measures will ease pressures on inflation and the balance of payments, while national saving will be boosted, a necessary pre-condi-tion for the smooth funding of investments.

In an announcement, the central bank did not omit supporting the removal of favorable tax treatment for loans in exchange as against loans in drachmas, a decision which is up to the government.

Referring to the decisions taken by the Bank of Greece, Political Spring party spokesman Notis Martakis said the recovery of the economy, the only way with which unemployment can be tackled, was being sacrificed for the sake of stabilization, while even that was not being achieved as was also proved by the inflation index rising to 9.2 per cent.

Mr. Martakis said "the Bank of Greece's decisions on restricting consumer credit and housing loans seal the bankruptcy of the economic policy applied by the government."

In a similar statement, the Coalition of the Left and Progress said "measures, which the government itself promoted last year to stren-gthen the market and development are being revoked on the altar of de-escalating resurgent inflation."

"The failure of the basic axes of economic policy is leading to spasmodic and conflicting options which are leading to confusion," the statement added.

[15] ICAP forecasts slightly downward trend for Greek industry in '96

Prospects for Greek industry in 1996 appear slightly more pessimistic compared to the end of 1995, according to a sample survey publicized yesterday by the ICAP research company.

Inflationary pressures and the expected slow reduction in interest rates are weakening businesses' prospects for recovery and are negatively effecting investment plans, while no improvement is foreseen on the employment front, the report states.

However, the majority of domestic industries believe inflation will finally settle at 7 per cent this year, while almost none believe interest rates will rise.

Firms have expressed frustration over the continuing "hard drachma policy" and are concerned that conditions for their funding will deteriorate if lending rates continue to fall too slowly until the end of the year.

The deterioration of prospects in the macroeconomic climate is leading to a downward revision of industries' forecasts for sales and profits in 1996.

End of English language section.