A.N.A. Bulletin, 12/06/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 909), June 12, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Bonn, Athens differ on approach to resolving Greek-Turkish tension

Greece and Germany yesterday ascertained a difference of views concerning ways of resolving the tension between Athens and Ankara during talks between the foreign ministers of the two countries, Theodoros Pangalos and Klaus Kinkel.

In contrast, the views of the two countries were either identical or converged on a wide range of issues including European Union reform, EU enlargement and the situation in the Balkans.

Mr. Pangalos is accompanying President Kostis Stephanopoulos on an official visit to Germany which began Monday.

In statements after a lengthy meeting, the two foreign ministers left no doubt about their difference of views on Greek-Turkish relations and Greece's blocking of EU funds to Turkey within the framework of the EU-Turkey customs union and the Community's Mediterranean policy (MEDA).

Mr. Kinkel again maintained Bonn's policy of "equal distances" over Greek-Turkish disputes during his meeting with Mr. Pangalos, who termed the policy "ineffective."

Mr. Pangalos requested an initiative on the part of the European Union in order "to place Turkey before its responsibilities," as he stated.

Mr. Kinkel declined to take a direct position on the issue of an EU initiative on Greek-Turkish differences, refuting reports that he was willing to personally assume some type of mediation initiative. The German foreign minister also avoided taking a stance on the issue of Ankara's dispute of the status of several Greek islands, declaring himself a "non-expert."

Asked whether the EU was willing to protect member-states' external borders as its own, the German foreign minister said: "No such issue exists ... External borders; their defense by the European Union ... cannot occur at this moment ... This in any case is our position."

According to diplomatic sources, Mr. Kinkel's answer is not viewed as encouragement for violations of Greek sovereignty. Sources said that based on that position, the German foreign minister does not view the current situation as entailing such a violation, and secondly, the German stance is that the European Union, without a common foreign and security policy, cannot defend its external borders within the framework of the EU. However, Bonn does not in any way dispute the principle of the inviolability of borders, the same source said, adding that the issue was discussed between Mr. Pangalos and Mr. Kinkel.

"We have an especially strong interest in de-escalating tension between Turkey and Greece. It (de-escalation) is vital for Greek, Turkish and European interests, and particularly significant for political stability in southeastern Europe as well as Mediterranean policy, which aims to ensure stability in the entire region," Mr. Kinkel said, adding:

"I call on both sides to inaugurate as soon as possible a new chapter in relations between the two countries, and I repeat my call towards Greece to re-examine the issue of blocking Community funding and to open the road toward application of the EU-Turkey customs union.

"What is happening between Greece and Turkey cannot leave us indifferent. It is a European problem, because both nations, Greece and Turkey, are NATO partners and both belong to Europe, but of course, Greece can count on European solidarity ... Greece is a very significant security anchor in southeastern Europe, and that is precisely the reason why it is so important for a de-escalation in tension in its relations with Turkey."

Mr. Pangalos said Greece considers Turkey's behavior as creating an issue of border revisions and unilateral dispute of the rules of international law.

"Against such a behavior, a policy of 'equal distances' is ineffective and does not contribute to the solution of the problem. In addition, the European Union cannot stand by as an observer ... an EU initiative must be taken so that respect for international law and observance of internationally accepted methods for resolving differences are pointed out to Turkey ... The EU must also play a more energetic role in the solution to the Cyprus problem," Mr. Pangalos said.

"Until Turkey retracts or revises its stance and follows internationally accepted procedures for its territorial claims with recourse to an international (arbitration) body, Greece will not consent to its funding through the European Union," he added.

Mr. Pangalos also assured reporters and his German counterpart that Athens is willing to co-operate with Bonn in the Balkans, noting that "disagreements that existed in the past over the Yugoslav issue have been overcome. In Albania, we are determined to assist that country in its attempt to build a solid democratic regime." He added that in reference to relations with the Former Yugoslav Republic of Macedonia (FYROM), it would be beneficial for Skopje to apply the second part of an interim agreement Greece and the landlocked former Yugoslav republic signed last September to find a mutually acceptable name for FYROM.

Along those same lines, a coincidence of views between the two foreign ministers on European and Balkan issues was noteworthy. In an unrelated matter, the issue of an occupation loan Greece was forced to grant the then Nazi regime was not discussed.

[2] Stephanopoulos meets Kinkel

President Stephanopoulos also had talks with Mr. Kinkel yesterday, which were attended by Mr. Pangalos prior to his private meeting with the German foreign minister, on Greek-Turkish relations, the situation in the Balkans and the prospects for the EU.

The president said he had presented Greece's positions on Greek-Turkish relations in detail and had ascertained Germany's "warm sentiments" towards Greece.

He added, however, that the problems could not be resolved in just one meeting, stressing that Athens was basing its hopes on the steady friendship between Greece and Germany.

Later, Mr. Stephanopoulos had what he described as "an extremely interesting" meeting with representatives of large German companies with activities in Greece.

Despite certain problems, the president said, he had received assurances from the Germans that they intended to step up their activities in Greece, particularly in the tourism sector. He also discussed the possibilities of developing economic activity in the Balkan countries, underlining Athens' experience and excellent relations with its neighbors in the region.

[3] Kohl meeting

A German government announcement said later that the Chancellery would not issue a statement concerning the talks between Chancellor Kohl and President Stephanopoulos.

This was explained by a diplomatic official as being of a "technical nature," due to the subsequent talks between the two foreign ministers.

Deputy German government spokesman Herbert Schmuelling said in reply to questions that "the talks took place in a friendly atmosphere, and revolved mainly around European issues..."

[4] Reactions

In Athens, commenting on the Kinkel-Pangalos meeting, the Political Spring party said that after the (US) State Department, Germany yesterday showed it is adopting the policy of equal distances towards Greece and Turkey.

"Everyone must at last understand that defending our national sovereignty is achieved only through our own deterrent forces," a statement said.

[5] Simitis calls on PASOK congress to take definitive, long-term solutions

The ruling party's congress later this month is an opportunity to take definitive long-term solutions, Premier Costas Simitis told PASOK deputies yesterday, in what was seen as a reference to the prime minister's intention to contest the position of party Vice-President.

Mr. Simitis told the PASOK Parliamentary Group that the forthcoming congress was an important political procedure and not an arena for jostling for party positions.

His comment that decisions must not have a life span of only a few months and cannot leave problems and questions unresolved was interpreted by deputies as a clear indication the premier would submit his candidacy for the position of party Vice-President.

Whether the post of Vice-President will actually be established will be decided by the congress itself; the Central Committee has already decided to support the proposal.

The prime minister expressed his belief that PASOK will emerge stronger from the congress, and that those hoping otherwise will be disappointed. He added that no party member would sacrifice PASOK's unity for his personal ambitions.

"PASOK is neither a spectator nor a commentator of developments, as it is a party which has been one of the most basic pylons which established democracy in the country and which founded the welfare state in '81-'89, and today it hopes for the political crisis to be overcome and for the creation of a new era," Mr. Simitis said.

[6] Greece facing direct threats to sovereignty

Apart from the country's efforts to participate on an equal footing in European integration, Mr. Simitis said, Greece was facing another major challenge.

"Greece is the only (EU) country facing a direct threat to its national sovereignty. Turkey is making its threat increasingly clear, climaxing in the outrageous case of Gavdos, which depicts a strategy which unscrupulously tramples not only on international law but also common sense," Mr. Simitis said.

The premier reiterated that "Greece claims nothing but also concedes nothing. "

"This dogma is accompanied by the unwavering decision for our country to defend its rights without hesitation... the armed forces are in a position to effectively deter any threat along the entire line of contact between Turkey and Hellenism," he added .

[7] Reppas comments

Asked whether Mr. Simitis intended to ask the forthcoming party congress for a renewal of the mandate granted to him by the parliamentary group, government spokesman Dimitris Reppas said the premier had been elected to exercise his duties until 1997.

Asked whether Mr. Simitis's statement of a need for a clear and long-term solution meant he would be a candidate for the post of Vice-President at the congress, Mr. Reppas said the prime minister was referring to the need for a large and united PASOK, stressing that this also served the interests of the country.

The congress must provide such long-term solutions, so that the government, in turn, may be able to solve Greek society's significant problems, he added.

[8] Skandalidis bears message from Andreas Papandreou

Central Committee Secretary Costas Skandalidis yesterday briefed the members of PASOK's Parliamentary Group on the course towards the party congress later this month, conveying a message from PASOK President Andreas Papandreou who expressed his conviction that all would live up to the occasion.

Mr. Skandalidis said PASOK's congress should constitute the starting point for a creative course for the party and should not constitute a venue for competing personal ambitions.

He said the sole target should be creating conditions for PASOK's victory in the next elections and, addressing deputies, added that all of them should be sincere.

Mr. Skandalidis said that immediately after the congress, the Parliamentary Group would be upgraded and become an agency setting out policy, deputies would join all party processes harmoniously, a Parliamentary Group office would be created at PASOK's head offices and the party's charter would consolidate the group of Eurodeputies as an agency.

[9] Reactions

Reacting to the prime minister's speech, Political Spring party spokesman Notis Martakis, said the passage to a new era required courageous initiatives for reform which Mr. Simitis does not appear willing to undertake.

The critical nature of the circumstances our country is going through, he added, necessitates taking into account the national interest above all other party expediency.

"Unfortunately for the country, Mr. Simitis does not accept this logic," he said.

[10] Athens to protest Turkish warship's violation of Greek waters

Athens will lodge a demarche with Ankara over the violation of Greek territorial waters by a Turkish warship yesterday morning, government spokesman Dimitris Reppas has said.

At 8:30 local time, the spokesman said, a Turkish warship with the markings P343 violated Greek territorial waters and came within 70 meters of the Greek passenger hydrofoil 'Marilena', one-and-a-half miles south of the uninhabited islet of Seskli, south of the island of Symi.

Mr. Reppas said there was no dialogue between the captains of the two vessels, nor was the hydrofoil harassed by the Turkish vessel.

"The two vessels sailed in the same direction parallel to each other for a few minutes," he added. Mr. Reppas stressed however that yesterday's incident confirmed the view that Turkish provocativeness had taken on a permanent nature and that such behavior by Ankara would continue for quite some time. "The government will confront Turkey's aggressive and hostile actions with determination and using all means," the spokesman said.

In a related development, Mr. Reppas said that the Government Council for Foreign Affairs and Defense (KYSEA) had authorized National Defense Minister Gerassimos Arsenis to decide alone on certain issues within his competence, without the necessity of convening the council as was the case up until now. "This decision was taken after KYSEA took into consideration that Turkish aggressiveness was becoming permanent in nature," Mr. Reppas said.

Asked about the scope of Mr. Arsenis's powers, the spokesman replied: "Well, he won't be declaring war."

Replying to other questions, Mr. Reppas said that Greece was in no way inclined to facilitate the disbursement of EU funds to Turkey under the MEDA programme and would block all efforts by the current Italian presidency to release the funds.

[11] Another violation

In a related incident, a Turkish patrol boat violated Greek territorial waters just after 4pm yesterday, sailing some two miles off the eastern Aegean island of Samos in its attempt to shadow a Greek cruise ship.

According to passengers on the "Kassandra", the Turkish vessel maintained a parallel course with their ship after it departed the port of Patmos. The incident was witnessed by dozens of foreign tourists, many of whom photographed the trespassing Turkish vessel, reports state.

Based on their statements, the patrol boat passed two miles off the port of Pythagoreion on Samos, then headed for the island's southern part before heading toward the Fournoi islands, all within Greek territorial waters.

[12] Gonensay says Gavdos issue 'all a misunderstanding'

Turkish Foreign Minister Emre Gonensay has said that the Gavdos issue arose from a "misunderstanding".

A meeting chaired by Turkish President Suleyman Demirel was held over the weekend in order to examine the consequences a Greek veto would have on relations between Turkey and the European Union after the issue raised in NATO regarding the island of Gavdos.

The meeting, which was attended by Chief of Staff General Ismail Hakki Karadayi, Mr. Gonensay and Defense Minister Oltan Sungurlu, reached the decision "for Ankara not to aggravate the issue", while Mr. Gonensay said the matter raised in Naples for the NATO exercises over the Gavdos island was "technical".

Mr. Gonensay said Turkey reacted to a change proposed by Greece "at the last minute" in the exercise plan which had already been completed. No-one appears prepared to take responsibility for the "Naples handling", which received very little publicity in Turkey.

The Turkish foreign minister and senior officials insist that Ankara does not doubt Greek sovereignty over Gavdos, while the 'Hurriyet' newspaper spoke of "a 180 degree turn on the Gavdos issue".

[13] Coalition leader

Coalition of the Left and Progress leader Nikos Constantopoulos expressed his opposition yesterday to the government's recently announced intention to increase its armaments programme in the face of increasing Turkish provocations.

Mr. Constantopoulos was speaking at a conference organized by the British news magazine the "Economist."

[14] No progress in Greece-FYROM name talks, Reppas reports

There has been no progress on the issue of the name to be used by the Former Yugoslav Republic of Macedonia (FYROM) in the dialogue under the aegis of international mediator Cyrus Vance based on the interim agreement between Athens and Skopje, government spokesman Dimitris Reppas said yesterday.

The spokesman made the statement in reply to questions prompted by a new round of talks under Mr. Vance's aegis in New York.

Mr. Reppas added that Mr. Vance himself must decide whether or not to continue his mediating effort in order for there to be results in line with the interim agreement.

Greece, the spokesman said, has entered the negotiations with its known positions "on which it remains firm".

[15] US rejects armed conflict scenarios

The US government yesterday rejected scenarios of a possible imminent clash between Greece and Turkey in the Aegean.

US State Department spokesman Nicholas Burns categorically rejected suggestions of the possibility of armed conflict. "There is no possibility of war in the Aegean," he said.

He added that Washington was in constant contact with Athens and Ankara and was promoting the standing US position for the need to resolve the differences between the two nations with peaceful means.

[16] UN makes changes before issuing report on guardsman's death

A last-minute change to the UN secretary-general's report to the Security Council on the operations of the UN peacekeeping force on Cyprus, UNFICYP, has caused a furor amongst diplomats here, reports said late last night. UN Secretary-General Boutros Boutros-Ghali's initial reference to "unacceptable conduct" by the Turkish Cypriot side in the death of a young Cypriot National Guardsman last week was removed from the text at the last minute. Sources said the change came after intense pressure from Turkey. In the draft of the report leaked to Reuters, the UN chief had asked for criminal charges to be brought against the Turkish forces, which opened fire on the 19-year-old soldier.

[17] Arsenis in Brussels for NATO meetings

National Defense Minister Gerassimos Arsenis will participate in the spring session of NATO's Defense Ministers and the Nuclear Planning Committee (NPG) in Brussels on June 13-14. Mr. Arsenis will hold bilateral talks with US Defense Secretary William Perry and his British, German and French counterparts on the sidelines of the session and intends to discuss latest developments in Greek-Turkish relations with them.

[18] Samaras to meet Irish premier today

Political Spring leader Antonis Samaras flies to Dublin today for a meeting with Irish Premier John Bruton which is expected to focus on Greece's national issues. Mr. Samaras will be also addressing a meeting of the Europarliament group 'Union for Europe' in which his party's Eurodeputies participate.

[19] ND's electoral committee to be announced next week

According to indications, the announcement of the composition of the main opposition New Democracy party's Central Electoral Committee will be set for next week, following proposals made to party leader Miltiades Evert to have the decision taken at a more collective level.

Mr. Evert requested and received authorization from the Executive Committee to have himself, Ioannis Varvitsiotis and Tzannis Tzannetakis decide on the composition of the Central Electoral Committee.

Party spokesman Prokopis Pavlopoulos said the most efficient cadres would participate in the committee, adding that electoral committees would also be created in rural regions and that the Executive Committee termed the course towards the national conference "smooth."

[20] Proposal for a 35-hour working week gaining ground with employers

The General Confederation of Workers of Greece's (GSEE) claim for a reduction in working hours to 35 a week, without a reduction in wages, appears to be popular among working people and is considered tolerable by a large number of employers, according to a report drawn up by the DHMEL company on behalf of GSEE and made public at the Confederation's offices yesterday.

Forty per cent of employers believe the 35-hour working week is a justified claim, while 25 per cent consider it premature and 29 per cent fear that it will create problems for enterprise competitiveness. Seventy per cent of them believe that the working people's wages are low but point out that the cost of labor in Greece remains high.

Fifty-eight per cent of working people want the 35-hour working week initiated immediately, while 19 per cent consider the development premature.

GSEE President Christos Protopapas said this result constituted a message to employers' unions to change their negative position.

On the ways of achieving the 35-hour working week, 49 per cent of working people want social dialogue, 28 per cent want "pressure" exerted by unions and 17 per cent strikes.

Unemployment has created considerable phobias among the jobless. Forty-two per cent blame immigrant workers and 27 per cent live in constant fear of losing their jobs.

Seventy-three per cent of working people blame governments for unemployment, 52 per cent blame the European Union and 48 per cent place the blame on the social system. Only 4.9 per cent of working people consider the government's policy on unemployment to be satisfactory.

Lastly, 40 per cent of the unemployed lost their jobs as a result of enterprises either closing down or reducing their staff.

[21] Reform of social security, welfare crucial to gov't's success, Simitis says

Prime Minister Costas Simitis said the government intended to proceed with reshaping the social security and welfare system in Greece with the aim of safeguarding social cohesion and solidarity and achieving, by extension, wider consensus for its economic policy.

Speaking at a dinner following an economic conference organized by the magazine, the "Economist", last night, Mr. Simitis told the assembled businessmen, bankers, ministers and deputies that what was necessary was a comprehensive approach to the country 's welfare problem which would guarantee a dignified standard of living for low-level pensioners and safeguard the viability of pension funds which were tottering on the brink of collapse due to debt and inadequate revenues.

The government soon intended to have a comprehensive and reliable proposal on tackling the social security problem which would be both socially just and economically viable, he said.

Addressing the same conference, National Economy Minister Yiannos Papantoniou said that although a temporary increase in the consumer price index had created obstacles in achieving the government's initial target, inflation had returned to its downward trend and would ultimately fall to 7.5 per cent in 1996.

Mr. Papantoniou said progress would continue this year on the basis of the convergence programme, adding that the greatest challenge for the government was striking a blow at the hard nucleus of public deficits, reducing state expenditures and curbing t ax evasion.

He expressed the conviction that the ruling socialist PASOK party would win the next elections.

On the sidelines of the conference, former minister and main opposition New Democracy party deputy Stephanos Manos expressed the hope that elections would be held, saying that over the past 20 years Greece had accumulated deficits and debts, had remained stagnant and had failed tragically.

He said the stench of corruption was pervading everything that was political and proposed abolishing state monopolies as a way of achieving real transparency.

[22] European professional training center's move to Thessaloniki 'a challenge'

Alternate director of the European Center for Developing Professional Training (CEDEFOP) Stavros Stavrou said the European Commission's decision to transfer CEDEFOP's headquarters to Thessaloniki came at a time when the center was facing problems, adding that the center's administration hoped to succeed in creating a new and more effective CEDEFOP.

Mr. Stavrou, speaking at a conference on "CEDEFOP in Thessaloniki-Purpose and prospects" in Thessaloniki yesterday, said that the commission's recent directives on employment had deprived CEDEFOP of its uniqueness and, in parallel, serious indications o f internal malfunction and reduced effectiveness in its services had started to appear.

However, CEDEFOP's administration considers moving to Thessaloniki as being a double challenge both for the successful change in headquarters and the modernization of its functioning.

[23] Education ministry employees set to go ahead with strikes

A meeting between Education Minister George Papandreou and representatives of ministry employees who are demanding bonuses of up to 50,000 drachmas proved fruitless yesterday.

Mr. Papandreou conveyed the government's decision to resolve their demand with the unified wage scale, which did not satisfy the employees, who said they will proceed with their scheduled rolling 24-hour strikes from June 21, the day on which general examinations begin.

The education minister assured candidates that all measures will be taken to ensure the smooth and problem-free conduct of examinations.

Prime Minister Costas Simitis is due to meet with university rectors today in order to discuss the institutions' financial problems.

[24] Construction work on Spata airport begins today

Construction work on the new Spata airport is due to officially begin this morning, and is scheduled for completion in four and a half years.

The construction contract between the state and the Hochtief consortium was signed yesterday.

Speaking on the commencement of the works, Environment, Town Planning and Public Works Minister Costas Laliotis referred to the decisions which preceded yesterday's signing of the contract, such as the Cohesion Fund's decision to finance the project wit h 250 million ECU, the European Investment Bank's provision of a loan amounting to 1,057 ECU and the loan of 600 million marks provided by the Commercial Banks Group, coordinated by the Bavarian Bank.

The airport's development and operation is expected to create 22,000 jobs, while after its opening, it is expected to employ a further 1,300 people, 78 per cent of whom will be laborers and operators.

The contract was signed by Mr. Laliotis, National Economy Minister Yiannos Papantoniou and Finance Minister Alekos Papadopoulos.

[25] Northern Greek exporters sign co-operation protocol with Tirana's chamber

The Federation of Exporters of Northern Greece (SEBE) and Tirana's Chamber of Commerce and Industry (EBE) signed a co-operation protocol at the federation's offices in Thessaloniki yesterday.

Vice-President Evgenios Plalis signed the protocol on behalf of SEBE and EBE President Arben Sechi on behalf of the Albanians.

The purpose of co-operation, constituting the result of contacts started two years ago, is the mutual support of initiatives by Greek and Albanian businesses, providing mutual services for businessmen from the two countries and the mutual exchange of information as well as coordinating moves on issues of mutual interest.

Mr. Sechi proposed organizing a Greek products exhibition in Tirana in the next three months with the participation of over 100 enterprises from northern Greece which, as he said, could be hosted at the International Cultural Center in the Albanian capital.

The immediate plans of the two sides include organizing a business delegation from Albania to Thessaloniki as well as educating and training cadres from Albania in Thessaloniki as part of Community programmes.

To date, 22,000 companies and individuals have registered with the EBE in Tirana. This figure is increasing continuously following the implementation of a recent law necessitating the registration of all business activity at the Chamber.

[26] Current accounts deficit widens in February

The current accounts deficit stood at $694 million in February, compared to $578.3 million in the same month of 1995, according to figures released yesterday by the Bank of Greece.

In the first two months of 1996, the balance of current accounts showed a deficit of $328 million, against a surplus of $142.3 million in the corresponding period last year, reflecting a $100 million increase in the trade deficit and a drop of $370 million in the invisibles surplus in the same period.

Both imports and exports showed low rates of growth compared to January-February 1995 (4.4 and 6.1 per cent respectively), resulting in an increase of 3.8 per cent in the trade deficit to reach $2,780 million compared to $2,680 million last year.

Invisibles fell by 8.2 per cent compared to the first two months of 1995, mainly due to the drop of $475 million or 26 per cent in net inflows from the European Union.

Since the beginning of the year, net inflows from the EU are at roughly the same level as the same period last year.

Invisible payments rose by 5.8 per cent to stand at $1,055 million, mainly owing to increased payments for interest, dividends and profits. As a result of these developments, the invisibles surplus fell by 13.1 per cent compared to the first two months of 1995 to reach $2,452 million.

The net inflow of private capital increased in the first two months of the current year to reach $1,346 million, compared to $885.8 million in the same period of 1995. This was mainly due to the rise in business capital ($1,383 million against $764.5 million).

Net foreign borrowing of the public sector amounted to $606 million and the country's foreign exchange reserves rose by $1,730.4 million in the first two months of 1996 to total $17,466 million.

[27] Commercial banks free to react to central bank decisions, Karatzas says

Greek commercial banks will not react in a specific and coordinated fashion to the recent decision by the Bank of Greece to impose restrictions on liquidity and credit expansion, governor of the National Bank of Greece, and president of the Union of Greek Banks, Theodoros Karatzas today told the 'Economist' magazine conference currently being held in Athens.

"Each bank will adopt its decisions on the basis of its own distinctive strategy, as they are autonomous organizations," he said.

Mr. Karatzas added that time had come for big state banks to restructure their management, regain lost ground, and decisively contribute to the further development of the Greek money and capital markets.

"They must participate more energetically in the privatization effort underway, and contribute more to the maturing of the secondary bond market," he stressed.

He also proposed a reform in the system of management of pension funds and social insurance in Greece.

"The time has come for funds to seek a professional management of their assets, to be allowed to invest in the stock market, becoming, in this way, more active shareholders, with private economic criteria, in the state banks themselves, and thus pushing them towards further modernization," he said.

[28] Forthcoming OECD report on Greek economy speaks of 'progress, good prospects'

An OECD committee expressed unanimous satisfaction over the Greek economy's "positive developments and good prospects" as set out in the organization's annual report due to be released in mid-July.

The relevant committee responsible for preparing the report met with officials of the national economy and finance ministries and the Bank of Greece in Paris yesterday and the day before for a discussion and an exchange of views on the content of the draft report.

Summing up the results of the meeting, OECD committee president Mr. Malitor spoke of Greece's "considerable progress" and "good prospects", adding that "efforts should continue in the same direction" and praising "measures aimed at cutting back on public expenditures" announced by the Greek government on May 31.

He expressed the view that "the government's intention to let the Bank of Greece act independently will have very positive repercussions" but despite this "both curbing expenditures and efforts aimed at privatizations should be continued."

Extensive discussions between the committee and the members of the Greek representation brought about considerable improvements in the already positive conclusions contained in the draft report on the developments and prospects of the Greek economy.

Mr. Malitor accepted the Greek representation's argument that, parallel to measures aimed at reducing expenditures, the government also announced a programme to support pensioners.

Contrary to what was the case in the past, the report makes no reference to Greece's "internal political environment" and focused its attention exclusively on the state of the economy.

The fact constitutes an additional indication of the conviction that the political situation in Greece is stable, regardless of possible party or political confrontations considered "natural in a Western democracy."

End of English language section.