A.N.A. Bulletin, 08/06/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 906),

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Premier promises measures for inter-Balkan co-operation

Prime Minister Costas Simitis said yesterday he would announce measures concerning a specific policy to promote inter-Balkan co-operation when he returns to the northern Greek city in September for the Thessaloniki International Trade Fair.

Speaking on the second and final day of a two-day visit to Thessaloniki, Mr. Simitis acknowledged that "in view of the new reality... what is needed is coordination and the charting of a specific policy, as well as a separate decision-making center in order to promote inter-Balkan co-operation.

"Announcements will be made on the issue in the coming months and when I return for the international exhibition, I shall then present my proposals on the subject," the premier added.

Mr. Simitis responded to criticism expressed in Thessaloniki over delays in the execution of major infrastructure projects by assuring that "no differentiation is made between north and south."

"I personally see the future of Greece being shaped in the north," he said, expressing his strong interest in the completion of the Egnatia Highway and other major works in northern Greece.

[2] On major projects

Mr. Simitis, who ended his official visit yesterday evening, stressed during a speech that the large public construction projects in and around the city will be completed.

"After certain difficulties, much has happened and results will appear soon," he said.

In addition, ministers accompanying Mr. Simitis on his visit briefed business leaders on the government's initiatives regarding the economy, social policy and the development of Thessaloniki and the broader region.

Speaking on the course of administrative decentralization, Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos said a new institutional reform had been completed, and a relevant draft bill would soon be submitted to Parliament.

Justice Minister Evangelos Venizelos announced that his ministry is promoting the formation of a Balkan Commercial Arbitration Organization to be based in Thessaloniki.

Mr. Venizelos said the organization, in co-operation with the Institute of International Law and International Relations and the Center of European Justice, "will allow us to contribute to the harmonization of the Balkan countries with the legal framework of the European Union, and will aid businessmen developing activities in these countries."

Health Under-secretary Franklinos Papadelis announced the government's decision to transform Thessaloniki into a medical center for the Balkans, and asked for the support of local authorities in order to achieve this aim.

Mr. Simitis also announced that the government has decided on the establishment of central offices for four ministries in Thessaloniki, within the framework of decentralization efforts. He also announced the creation of a Macedonia-Thrace Coordinating Council, which is expected to contribute to more effective implementation of government policy in northern Greece. The council will be run by the Macedonia-Thrace ministry, while the secretary generals of the three regions - eastern Macedonia-Thrace, central Macedonia and western Macedonia - will sit on the committee.

[3] Progress on Cultural Capital of Europe discussed

The premier appeared particularly optimistic regarding the course of preparations and the potential success of the organization of Thessaloniki as the "Cultural Capital of Europe" in 1997, after he was briefed on the issue yesterday by the administrative council of the group organizing the event.

"We have seen with pleasure that work is proceeding in a serious and effective manner. If we want northern Greece and Thessaloniki to be the area with which we will promote the region's development, culture will play the main part," Mr. Simitis said after his meeting.

During his speech, Thessaloniki Mayor Constantine Kosmopoulos, who is also the cultural capital organization president, made insinuations against occasional government interventions "suffered" by the organization, and spoke of delays in funding.

The organization asked the prime minister to increase the budget for the cultural capital by 2.2 billion drachmas and to exempt the organization from VAT payment for it to accumulate savings of 10 billion drachmas, which will be used for relevant projects.

[4] Laliotis confident over Egnatia's completion

Environment, Town Planning and Public Works Minister Costas Laliotis yesterday dispelled concerns that have surfaced recently about delays and non-completion of the Egnatia Highway, playing down the importance of the proposed "para-Egnatia" envisaged in a memorandum signed recently by Turkey, Bulgaria, FYROM, and Albania.

Speaking at Helexpo's installations in Thessaloniki, in the presence of Prime Minister Costas Simitis, Mr. Laliotis said the Egnatia project was irreplaceable, being in a single geographical and national area, providing connections with seven ports, and being of a significantly shorter length (680 kilometers) than its rival (950 kilometers), which would conceivably run through the borders of four countries.

He added that the Greek project was far-sighted, being financed by the European Union, and connected with inter-European networks, whereas "para-Egnatia" was nothing more than an extension of a memorandum of co-operation, signed by the presidents of the four countries.

In addition, Mr. Laliotis said the project had already made considerable progress, and every effort would be made to have it competed by the year 2000.

The minister spoke extensively on projects related to the quality of life in Thessaloniki, including those of the water supply system and waste treatment, and particularly the new underground metro.

He provided the assurance that not a single ECU of EU financing would be lost for the metro project, and that no funds would be transferred to another project or another city. He stressed that the text of the contract would be sent with all available data to financial institutions, such as the European Investment Bank, for evaluation and would then be endorsed as an official plan.

Transport and Communications Minister Haris Kastanidis, who was also present, referred to plans for turning the city's Makedonia Airport into a modern air transport center, adding that all related projects, budgeted at 100 billion drachmas, were projected to last about 15 years. The number of passengers is forecast to rise from 2.5 million last year to 10 million by the year 2010, he said.

[5] KYSEA to examine recent escalation of Turkish provocations

National Defense Minister Gerassimos Arsenis said yesterday that a Monday session of the Government Council for Foreign Affairs and Defense (KYSEA) will examine the reasons that have led to an escalation of Turkish provocativeness and would take preventive measures to deal with the situation.

He described as "effective" the way Athens has dealt with the latest Turkish provocation after Ankara openly disputed Greek sovereignty of the inhabited island of Gavdos this week, adding that KYSEA would decide whether any additional steps needed to be taken.

Gavdos lies south of Crete and geographically isn't even in the Aegean.

KYSEA, he clarified, will examine the political rather than the military aspect of the issue. The foreign ministry has already made relevant representations on the Gavdos issue at a bilateral and international level. Mr. Arsenis is expected to follow these steps on the sidelines of the meeting of NATO defense ministers in Brussels next week.

Asked to comment on statements by State Department spokesman Nicholas Burns on Thursday, who declined to take a stance on the Gavdos affair, Mr. Arsenis stressed that "when we are dealing with the outrageous behavior of a country, there is no room for a policy of equal distances."

"We expect countries that respect international law and international rules of conduct to take a stance in cases where this law and these rules are violated," he said, adding that he would ask his US counterpart to take a position on the issue at the NA TO meeting in Brussels. Asked if Greece was prepared for a new Turkish provocation, Mr. Arsenis replied: "We are vigilant and are ready to deal with any provocation."

Replying to other questions, concerning whether the domestic situation in Turkey created prospects for rapprochement between the two countries or further exacerbated the climate in bilateral relations, Mr. Arsenis noted that Turkey's foreign policy, and particularly its policy toward Greece "does not change and is independent of changes in government."

He expressed the view that Turkish foreign policy would not be substantially affected by domestic developments in the neighboring country. Asked if Greece was in a position to predict the next instance of Turkish provocativeness, Mr. Arsenis replied that "there is only one way, we must be prepared for every eventuality."

In a related matter, the national defense minister said that "there is no cause for alarm, but we must not be complacent," when asked to comment on a "Wall Street Journal" article predicting that the Aegean would be the world's next "powder keg."

[6] Athens protests airspace violations

The Greek foreign ministry yesterday summoned the Turkish charge d' affaires in Athens and conveyed a verbal note protesting the recent raising of a supposed issue regarding the island of Gavdos, south of Crete, and Thursday's violations by Turkish warplanes of Greece's airspace over the eastern Aegean.

The verbal note was handed to Turkish Charge d'Affaires Tacan Ilden.

At the same time, Greek Foreign Minister Theodoros Pangalos briefed the ambassadors of the European Union member-states in Athens, as well as ambassadors of the United Nations Security Council permanent members on the escalation of Turkish provocations, presenting Greece's arguments on the issue.

On Thursday, Turkish warplanes violated Greek national airspace and the Athens Flight Information Region (FIR) in at least 15 instances over the eastern Aegean, mainly east of the island of Hios.

Mr. Pangalos later briefed President of the Republic Kostis Stephanopoulos on recent developments in Greek-Turkish relations. After the meeting, Mr. Pangalos told reporters that the Turkish provocations were part of a more general Turkish strategy, stressing that "in this context, the instability and adverse situation in the neighboring country facilitates those who aim at exporting those problems."

He warned "those who have made this choice" that they "have chosen the wrong place to export their internal problems."

Mr. Pangalos also left open the prospect of Prime Minister Costas Simitis personally sending letters to international leaders on the recent Turkish provocations, in the context of a government campaign to brief foreign governments and world public opinion.

In a related matter, main opposition New Democracy (ND) party leader Miltiades Evert said on the island of Lesbos later yesterday that "the tension with Turkey will continue for a long time," and could only be confronted if the Greek people were "united and of one mind." Speaking to reporters while visiting the eastern Aegean island, Mr. Evert referred to what he called recession and youth unemployment in the region, which had to be tackled with investments.

ND's programme, he continued, consisted in the triptych: national foreign policy, a strong defense and development of necessary infrastructure.

Mr. Evert, who reiterated his call for early elections, arrived on Lesbos yesterday morning for a two-day visit after flying to the island from Limnos.

[7] Albanian opposition parties' representatives condemn Berisha Gov't

The Albanian Citizens' Initiative Committee condemned the Berisha government in their country yesterday during a press conference held in the offices of the Coalition of the Left and Progress party.

"The Albanian government today is a band of hooligans which holds a gun in one hand and robs you with the other," the committee said. The opposition inter-party committee, which was formed last Tuesday, signed a proclamation demanding new elections to be held in Albania.

It also called on the international community and the European Union not to recognize the election results and to send observers to the country.

The committee asked European countries in which Albanian nationals are living to ensure the smooth transportation of those nationals to Albania in order for them to exercise their right to vote. It also called for those responsible for violence that occurred during the elections to be found, as well as for all political prisoners being held in Albania to be released.

[8] Patriarchate to mark beginning third Christian millennium

The Ecumenical Patriarchate of Constantinople will celebrate the beginning of the third Christian millennium, with relevant events to take place on August 6, a day celebrating the Transfiguration of Christ.

The Ecumenical Patriarchate also noted the "general climate of expectation and spiritual uplifting of Christians all over the world," which accompanies the beginning of the third Christian millennium.

[9] Joint Greek-US military exercise planned

The national defense general staff yesterday announced a joint Greek-US medium-scale military exercise with the participation of army, navy and air force units from the two countries on June 12-20. The exercise, code-named "Alexander the Great - 96", will be coordinated by the national defense general staff and held in the area of the Pagasitikos Gulf and in the vicinity of the Aegean islands of Skyros and Agios Efstratios.

[10] EU foreign ministers' council to consider Mediterranean policy

The European Union's council of foreign ministers will convene in Luxembourg on Monday to primarily examine the Community's Mediterranean policy, preparing the European Council in Florence and relations with countries i n the former Yugoslavia.

Greece will be represented by Alternate Foreign Minister George Romeos.

According to well-informed diplomatic sources, the Italian EU presidency appears determined to raise, as part of the debate on the Community's Mediterranean policy, the MEDA issue on which Greece has expressed general reservations.

The Italian presidency's initiative to raise the MEDA issue, according to the sources, is aimed exclusively at exerting pressure on Greece, since it is almost certain that after tension created in Greek-Turkish relations over the past days caused by the

Gavdos issue, Athens is not prepared to make concessions but will probably bring the escalation of Turkish provocativeness to the attention of its partners.

However, the intention is obvious on the part of the Italian presidency to have some kind of gesture made toward Turkey.

To this end, Council President and Italian Prime Minister Romano Prodi has decided to give a dinner in honor of the Turkish prime minister on June 22, shortly after the end of the summit conference in Florence with the 15 heads of state and prime ministers of the EU member-states as guests.

[11] Athens-Skopje negotiations expected to resume Monday

Negotiations between Greece and the Former Yugoslav Republic of Macedonia (FYROM) on the issue of the latter's name will be resumed under UN sponsorship on Monday, reliable sources said.

Negotiations are being held based on Article 5 of an interim agreement concluded last September in New York between Athens and Skopje.

UN special mediator on the FYROM issue Cyrus Vance held separate talks with Greece's permanent UN representative Christos Zaharakis on Thursday as well as with Skopje's negotiator, Ivan Tosevski.

The discussions, which diplomatic sources say aren't expected to produce any significant progress, may continue on Tuesday or even Wednesday. They added that FYROM's intentions during the course of negotiations must also be clarified, citing what they called systematic and negative public statements recently by FYROM's foreign minister.

Sources said current negotiations are being conducted at two levels, on the one hand there are those primarily of a technical nature being conducted at the UN's headquarters, and on the other hand, provocative public statements by Foreign Minister Ljubomir Frckovski, which "have gone too far."

According to the same sources, Mr. Vance "does not consider expedient" taking any initiative at present or tabling any proposal of his own, believing that this would not improve matters.

Additionally, UN circles believe an intervention by Washington to accelerate the finding of a solution is extremely improbable since, despite inter-party problems surfacing in FYROM, they see no possibility of widespread social unrest in the landlocked country.

[12] Bulgarian military officers visit Serres

The Commander of the Bulgarian 3rd Mechanized Infantry Division, accompanied by staff members, visited military installations of the Hellenic Army's 10th Division in Serres.

The Bulgarian officers were given a guided tour by the commander of the Greek division, Gen. Ioannis Koutsoukis.

They visited authorities in Serres afterwards for a briefing on the prefecture's economic and cultural elements.

The Bulgarian officers were reciprocating a visit by Greek officers to military installations in Bulgaria earlier in the year.

[13] Arsenis issues 'White Paper' on defense, national security matters

National Defense Minister Gerassimos Arsenis yesterday unveiled his ministry's "White Paper" honoring a commitment on fuller information concerning defense ministry issues.

The "White Paper", issued for the first time, is part of a more generalized philosophy on promoting transparency and dialogue in the defense and national security sectors, and is expected to be established as an official annual publication by the nation al defense ministry.

The content of the first report on the armed forces focuses on five sectors, beginning with a presentation of the framework of national defense policy and followed by information on the recent restructuring of the ministry's structure and the reasons behind it; the structure of the Hellenic Armed Forces; five-year armament programs, as well as the role of the Greek defense industry and the armed forces' contribution to society in general.

The first chapter concerns the concept of a threat, of national security, the country's geo-strategic position and the characteristics of the post-Cold War era and the "new world order."

Greece's security is based on three pylons: (a) smooth political and economic relations with neighboring countries, (b) powerful armed forces and (c) participation in the European Union and other international organizations, such as NATO and the West European Union, which increase the country's deterrent potential.

It has been assessed that although in the present-day conjuncture no military threat against Greece exists from the north, west and south, security dangers do exist.

Turkey's revisionary policy against Greece, as it is manifested in the Aegean, Cyprus and Thrace, creates grave concern and is considered the most important provocation for Hellenism.

The main axes of Greek national strategy, according to the report are: A clear European orientation; Greece's dynamic economic policy and promoting political and economic co-operation in the Balkans, with Black Sea region countries, the eastern Mediterranean and North African nations, as well as creating a defense strategy covering the unified area of Hellenism.

[14] Greece picked to hold simulation drill on serious sea pollution

Greece will undertake to conduct an annual map exercise for a serious pollution simulation drill in order to gauge co-operation and readiness among EU member-states in tackling a real emergency.

Approval was provided at the session held on Nov. 24, 1995, as part of the European Union's Advisory Committee on decreasing and controlling the pollution of seas by petroleum products and other harmful substances (ACPH).

Apart from EU member-states, all Mediterranean countries will participate in the exercise under the direct supervision of the regional rapid deployment center for pollution in the Mediterranean Sea (REMPEC), headquartered in Malta.

[15] Avlona residents escalate mobilizations against proposed landfill

Protests by residents in the municipality of Avlona, 50 kilometers north of Athens, against the findings of an official team of experts, who have recommended a nearby site as the most appropriate for the sanitary burial of Athens' garbage escalated yesterday, taking on judicial and political dimensions.

While groups of residents used private cars to block the Athens to Lamia national highway near Malakasa from noon until 6 p.m., with similar action planned on the Athens to Thessaloniki railway in the evening, workers yesterday evening were still trying to clear a nearby aqueduct of rubble and garbage, thrown overnight, that blocked the water supply to the capital.

Water supply company (EYDAP) general director Giorgos Ioannidis described the damage as substantial, and described the action as "sabotage," which endangered the health of citizens.

He openly accused Avlona mayor Dimitris Kyriakou and the municipal council as chiefly responsible, adding that the utility would take legal action against them and anyone else involved.

And while Avlona municipal council officials accused Mr. Ioannidis of furnishing falsified data concerning the exact distance of the recommended landfill site from the water supply aqueduct, Avlona Mayor Kyriakou described the action as outrageous and foolish, "easily called a provocation".

"We are having difficulty in containing the reactions of residents," he said.

Commenting in Thessaloniki, Environment Minister Costas Laliotis called on Avlona citizens to assume their responsibilities, expressing hope that they would radically change their stance. He added that the government was resolved to proceed with the implementation of plans concerning selection of the landfill site, describing reactions as "parochial bravado".

At a rally held in Avlona in the evening, former New Democracy Environment Minister Christos Katsiyiannis described the selection of Avlona as "hasty, and lacking a documented study," adding that it was a political decision by Mr. Laliotis. He called on residents to provide their own answer to the former's description of "bravado".

Matters were further complicated by the release of official findings of the experts' report yesterday, which noted that sites near Keratea and north of Koropi in southeastern Attica were equally suitable as landfills. In reaction, local residents were reported to be planning mobilizations.

In releasing the report, Athens Polytechnic Rector Nikos Markatos said the decision concerning the exact location of the landfill was now political, but should be proceeded by a full study on environmental effects and additional drillings.

Avlona residents are planning to block the toll station at Shimatari on the Athens to Lamia highway from 3 to 9 p.m. today, but without obstructing traffic, and have threatened to occupy the environment ministry on Monday if there is no progress on the issue over the weekend.

In a related matter, Public Order Minister Costas Geitonas addressed a strict warning to local officials "to stop pretending to be neo-pirates attempting to hold hostage public utilities such as transport and water supply."

"In our democratic society, the limits of tolerance are determined by the constitution and the laws. No one can exceed them, indeed, repeatedly, and without sanctions," he warned.

Meanwhile, Political Spring party leader Antonis Samaras called for an end to the "old petty-party habit of making political decisions on crucial issues depending on party alignments and the number of votes in each area."

He proposed the designation of the uninhabited island of Agios Georgios in the Saronic Gulf as a landfill site.

[16] Legal aid for tourists again offered in Greece

For the third consecutive year, legal assistance will be provided to tourists visiting Greece by the Quality of Life Consumer Organization (E.K.POI.ZO).

The programme, which is part of a European Union plan for legal assistance to tourists and is backed by the Directorate XXVI of the European Commission, begins July 1 and runs through Sept. 30.

The programme will be applied by the legal protection offices in Athens, Volos, Kavala, Patra and Iraklio, in co-operation with the local consumer associations.

A breakdown of complaints lodged by tourists in 1995 showed that 21.5 per cent concerned hotels, rented rooms and organized camping facilities; 23.53 per cent restaurants, cafes and bars; 9.25 per cent beaches; 34.45 per cent transportation; 1.68 per cent rented cars or other rented vehicles; 5.05 per cent travel agencies; 1.68 per cent public services and 3.36 per cent for all others.

The programme is being carried out in Greece, Italy, Spain and Portugal.

Tourists and consumers may request more information from EKPOIZO at 43-45 Valtetsiou St., Athens - Tel.: 33.04.444, fax: 33.00.591.

[17] Papantoniou hints at interest rate cuts on bank deposits, hikes in loan rates

National Economy Minister Yiannos Papantoniou yesterday left open the possibility of interest rate cuts for bank deposits and increases in loan interest rates.

Replying to press questions, Mr. Papantoniou said Greek banks operate in free market conditions and "react as they see fit" to developments.

He was speaking after a meeting with Finance Minister Alekos Papadopoulos, Development Minister Vasso Papandreou and Bank of Greece Governor Lucas Papademos. During the meeting, he said it was ascertained that the prospects for the economy were good, since inflation was back on a downward course, public finance indicators were positive and the rate of growth would reach 2.5 per cent in 1996, despite the decline observed in other European Union countries.

Mr. Papantoniou also noted a "substantial revival" of investment activity, in both the public and private sectors.

"We shall remain steadfast in exercising the government's economic policy," he told reporters.

Prime Minister Costas Simitis later reiterated the government's determination to stick to its economic stabilization policy. He also expressed optimism on whether, despite the difficulties, the country would soon join "the highway of development".

Speaking to business representatives on the second day of a two-day visit to Thessaloniki, he described the stabilization policy as "a dire necessity."

He added, however, that the government would make any "deviations" made necessary by the social consequences of the policy's implementation.

Such deviations, he continued, would be made "within a framework" such as the one which enabled the pension increases announced on Thursday.

The premier underlined the need to overcome the problems in the economy in order to create the conditions for convergence as required by the Maastricht Treaty, stressing that the worst-case scenario would be for Greece to slide in the second and third phases of European integration, "along with Hungary and other countries."

"I want us to realize that we are in a critical period. There is, however, a ray of light. In the next 4-5 years there will be more money for projects. We are in a period of transition. We must get through it while bearing in mind the difficulties, in order to join the highway of development," Mr. Simitis said.

"In order to attain our targets, what is needed is effort, persistence, consistency and mutual trust," the premier said.

[18] Agriculture Bank announces a gradual pullout from Dodoni

The Agricultural Bank of Greece (ATE) is gradually pulling out of certain agricultural industries and other enterprises not belonging in the strictly banking/financing sector, such as Dodoni S.A. and the Anaptyxiaki Epirus S.A. companies, by selling it shares in these two firms.

Additionally, the state bank will provide financial backing for every major investment programme the two companies begin, such as Dodoni's, expected to total 4.5 billion drachmas.

ATE Deputy Governor Thanasis Papageorgiou made the announcements at a press conference in Ioannina yesterday on the occasion of the Dodoni dairy industry's general assembly.

Mr. Papageorgiou said the effort to restructure cooperative companies in Epirus will be completed through the settlement of debts owed by SBEKH, amounting to 2.1 billion drachmas.

He added that cooperative units in the region had been restructured in their entirety and could henceforth contribute to the region's development.

End of English language section.