A.N.A. Bulletin, 10/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 933), July 10, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Athens lukewarm to proposal for sole EU foreign, security policy head

Greece said yesterday that it had serious reservations about a French proposal for a single European Union foreign and security policy head, following talks between Alternate Foreign Minister George Romeos and visiting French European Affairs Minister Michel Barnier. "We believe that there already are established bodies and procedures which can realize the EU's common foreign and security policy," Mr. Romeos said after the meeting.

"The issue for us is not who will express and who will carry out the common foreign and security policy but for it to be enacted, as we have formulated in the text (submitted to the inter-governmental conference, IGC)," he added.

Mr. Romeos, who is responsible for European affairs at the foreign ministry, said they discussed the course of the IGC and relations with Turkey, when Mr. Barnier raised the issue of the MEDA financing programme.

Athens has blocked the ECU 3.525 billion package for 12 Mediterranean countries, including Turkey, which hopes to receive a sizable chunk.

Mr. Romeos said he briefed Mr. Barnier on the state of relations with Turkey, including the problem of Turkish provocations.

"There was no French proposal on MEDA," he added, saying the Greek side simply explained its positions.

Mr. Barnier also met with Prime Minister Costas Simitis, Foreign Minister Theodoros Pangalos, Parliament President Apostolos Kaklamanis and main opposition New Democracy Vice-President Ioannis Varvitsiotis.

At a press conference at the French embassy later, Mr. Barnier expressed the hope that there would be an agreement on the MEDA programme at Monday's EU foreign ministers meeting in Brussels.

France, he said, hoped Greece will lift its objections to the funding before the end of the month.

"If not, the entire programme will be canceled, European policy on the Mediterranean will be postponed to next year and EU credibility will be affected," he said.

Mr. Barnier said he disagreed with Greek Foreign Minister Theodoros Pangalos' proposal to dissociate funds headed for Turkey from those allocated to the other 11 Mediterranean countries, saying "the MEDA programme is 'global'." He said he felt solidarity with Greece's position but did not say whether the remaining 14 EU partners had any proposal to offer to break the deadlock. "It is the work of the Irish (EU) presidency to find a compromise," he said.

Mr. Barnier said his talks with Mr. Romeos, Mr. Pangalos, Prime Minister Costas Simitis and other government officials had illustrated the strong ties between Greece and France and their points of agreement.

One of these, he said, was that the European Union "must not be a simple 'supermarket', but a real political power, equipped with the necessary mechanisms, to be able to deal with superpowers such as the United States and Russia."

He placed particular emphasis on the strategic role Greece, as a member of the EU, was playing in the Balkans and the Mediterranean. His talks, he added, confirmed that "Greece wants stability in the region and good relations with its neighbors."

Turning to Greece's problems with Turkey, he said France agreed that international law must be respected and that it was against the use of force or the threat of force in international relations. The issue of Imia, he added, should be settled by a third body, such as the International Court of Justice at The Hague.

Referring to Cyprus, which he will visit at the end of the month, Mr. Barnier said that the EU representative on the Cyprus problem should be a permanent appointment, similar to the French proposal for an EU "high representative" for common foreign and security policy.

"The EU needs a permanent mechanism for diplomacy," he said.

[2] Mass violations of Greek airspace by Turkey, despite pledge

Greece said yesterday that Turkish warplanes have conducted "mass" violations of national airspace over the past few days despite Ankara's pledge last week that it would suspend military exercises in the Aegean until the end of the summer.

Defense Under-secretary Nikos Kouris said Turkish planes appeared to be targeting certain areas, giving the impression of an attack against a specific target.

"Turkish planes have violated national airspace and flown close to the islands of Skyros and Santorini," he said.

In all cases Greek fighters immediately intercepted the Turkish violators.

"Turkey has a credibility problem," National Defense Minister Gerassimos Arsenis later told reporters.

"While it (Turkey) declares that it will not carry out exercises, it acts in such a way as to appear that it is carrying out exercises.

"In an effort to de-escalate tension, Turkey made public its decision not to conduct exercises during July and August," Mr. Arsenis said, underlining that Greece was the first to proceed toward de-escalation.

"The spirit of Ankara's move is essentially canceled out by the phenomenon noticed over the past few days of mass infiltration of our national airspace by Turkish aircraft," Mr. Arsenis said.

The violations were characterized by the large number of planes involved and the depth of their incursion, he said.

Unsurprisingly, Mr. Arsenis added, there is no feeling at the national defense ministry that tension has de-escalated.

Ankara said last week it would not carry out further naval or air maneuvers in the Aegean in July and August, in line with a 1988 memorandum signed by the Greek and Turkish foreign ministers.

Turkey has never implemented provisions of the memorandum, while Mr. Arsenis stressed that Greece has not carried out military maneuvers in the Aegean for some time.

Mr. Arsenis said he would inform NATO Secretary General Javier Solana of the violations, adding that he had already informed visiting NATO general Klaus Nauman, chairman of the NATO military committee, during a meeting at which Mr. Kouris was also present.

Meanwhile, according to reports, the Turkish exploration vessel "Sismik" is sailing in international waters between the islands of Imvros and Tenedos, in a region Turkey considers territorial waters.

[3] Greece firmly rejects US demarche over Cyprus flyovers

Greece yesterday unconditionally rejected a demarche lodged by the US embassy in Athens several days ago concerning flyovers by Greek fighters over Cypriot airspace.

Confirming a report by the ANA yesterday, government spokesman Dimitris Reppas said the flights were carried out with the "expres-sed authority of the government of the Republic of Cyprus".

"The demarche was rejected because its rationale was not understandable," Mr. Reppas said. "A third party cannot involve itself with the Republic of Cyprus' internal issues."

Mr. Reppas noted that the 22-year occupation of roughly one-third of the island by Turkish forces continued and that the legal Cypriot government could not be equated with the regime in the occupied areas. He said Greece and Cyprus' joint defense doctrine remained a primary factor in Athens' defense planning, and obviously could not be exempted from the policy followed by the Greek government.

Replying to a question, Mr. Reppas said he was unaware of whether the United States or any other country had lodged a similar demarche with Turkey regarding the flights of Turkish warplanes over Cyprus.

[4] Opposition statements

Main opposition New Democracy party issued a statement yesterday saying that an "unpleasant surprise was caused by the US demarche for flights of Greek aircraft over the 'green line' in Cyprus, which were carried out with the permission of the Cypriot government.

"When did the United States issue similar demarches for Turkey's constant violations of Greek sea and airspace, which are totally contrary to all aspects of international law?"

The Communist Party of Greece (KKE) called the US demarche on Greek warplanes flying over Cyprus "unacceptable".

An announcement by KKE said the Greek government's "submission and compliance" with the "new world order" exposed it "to continuous extortions and interventions by the Americans and NATO."

The Coalition of the Left and Progress party characterized the US demarche as being "unacceptable and provocative". Although it disagrees with the joint defense doctrine, the party said the US government must not forget that the Cyprus issue is a problem of invasion and occupation of an independent and sovereign state.

The party added that if the United States wished for a just solution to the Cyprus problem, they must turn their pressure onto an easing of Turkish Cypriot and Turkish intransigence.

[5] Greece to judge new Turkish Gov't by deeds

Greece said yesterday it would judge Turkey's new Islamist government by its deeds, saying it hoped the new government would respect international law.

"If the Turkish government respects international law then there will be no problem in the region," government spokesman Dimitris Reppas said. "If the opposite occurs, this does not bode well for the relations of the two countries."

Turkey disputed Greek sovereignty of the uninhabited eastern Aegean islet of Imia late last January, sparking a severe crisis in bilateral relations.

Those western powers that based their policy on Turkey (on making concessions) in the effort to avert an Islamist rise to power should concern themselves with the Erbakan government, Mr. Reppas added.

[6] Pangalos

Foreign Minister Theodoros Pangalos yesterday welcomed the formation of a government in Turkey which will have, as he said "responsible leadership", saying Greece always backed the need for stability in neighboring countries.

Tuesday's successful confidence vote for the Necmettin Erbakan government, Mr. Pangalos said, is a "pleasing development". He added, however, that he was concerned as to how the new Turkish government would be able to implement its policies and what these policies were. Greece will wait before taking "a particular stance", he added.

[7] Melescanu meets with Arsenis, Papandreou

National Defense Minister Gerassimos Arsenis held talks yesterday with Romanian Foreign Minister Teodor Melescanu on the situation in the Balkans and co-operation between the two countries.

The hour-long meeting was part of Mr. Melescanu's official visit to Greece.

The Romanian foreign minister also met yesterday and discussed bilateral issues with Development Minister Vasso Papandreou.

Special reference was made to the prospects of co-operation between the two countries in the fields of trade, industry, tourism and the promotion of joint energy programs.

The provision of advisory services in the financial sector by Greece and the possibility of training Romanian nationals in tourist management was also discussed.

In addition, Mr. Melescanu invited Ms Papandreou to visit Romania at the head of a Greek business delegation.

[8] Top Romanian military leader arrives for visit

Romanian Army General Staff Chief Lt.-Gen. Nikolae Pastinica arrived in Athens yesterday on an official visit to Greece, at the invitation of his Greek counterpart Lt.-Gen. Manousos Paragioudakis.

Lt.-Gen. Pastinica will pay a courtesy call to the national defense ministry's political leadership and the Greek national defense general staff chief.

He will also have talks with his Greek counterpart, focusing on issues of bilateral concern as part of co-operation between Greece and Romania.

During his stay in Athens, Lt.-Gen. Pastinica will inspect army formations and training centers, as well as archaeological sites.

He is due to leave Greece tomorrow.

[9] OSCE resolution condemns Turkey's human rights record

A resolution condemning Turkey for its human rights record was unanimously adopted yesterday by the fifth parliamentary convention of the Organization for Security and Co-operation in Europe (OSCE).

The resolution, among others, expresses the organization's concern over violence in Turkey, which has reportedly cost the lives of thousands of people, and urges Ankara to adopt measures against state-sanctioned torture. It also calls for abolition of provisions restricting the freedom of expression and the freeing of three political prisoners that were national assembly deputies at the time of their arrest and imprisonment.

The Greek and Cypriot delegations expressed satisfaction with the adoption of the resolution. The head of the Cypriot delegation, Markos Kyprianou, described it as positive, and welcomed the fact that its rapporteur was a US Congressman. He also stressed that the resolution acknowledges Turkey's human rights problem, but expressed a view that a more severe language could have been used.

Members of the Greek delegation told ANA that Greece ought to place increased weight on its presence in such organizations, and ensure that its presence is not circumstantial.

"We must work with consistency and continuity so as to utilize good relations and bring positive results," according to the head of the Greek delegation, PASOK deputy Theodoros Stathis.

[10] Press report analyses Greek-Turkish tension

The Greek-Turkish conflict in the Aegean is also indirectly aimed at Russia, according to an article in the newspaper "Rosiskaya Gazeta."

The paper says confrontation in the region - aggravated after the discovery of oil deposits in the Aegean in the '70s - coincides with intense activities on the proposed Burgas-Alexandroupolis oil pipeline.

Rosiskaya Gazeta stresses that Turkey hopes to become the main country transporting oil from the Caspian Sea region and attributes the initiation of stricter shipping regulations in the Bosporus to this ambition. It stated that worsening of Greek-Turkish relations are also directed against co-operation between Russia, Bulgaria and Greece.

The newspaper is published by the Russian government and the article could probably be interpreted as a warning to Ankara not to restrict shipping in the straights between the Black Sea and the Mediterranean.

An article appearing in yesterday's edition of "Komersad-Daily" on the inter-Balkan conference in Sofia underlined the importance of the Burgas-Alexandroupolis oil pipeline for steering round the straights and upgrading the strategic importance of the Russian port of Novorossyisk.

[11] State Department says US cautioned Ankara, Nicosia as well as Athens over military exercises

State Department spokesman Nicholas Burns yesterday said the US administration had recently expressed its concern over military exercises in Cyprus not only to Athens, but also to Ankara and Nicosia.

"A series of military exercises by Greek, Turkish and Cypriot forces, took place on and around Cyprus during the last month, including flights of Greek and Turkish aircraft over the island. We have repeatedly expressed our concern, because these recent military moves from all parts in the Aegean and the eastern Mediterranean have unnecessarily increased tension, and we have urged all sides to avoid such actions," he said, preferring to adopt the term "advice", rather than "demarche".

[12] Simitis meets with Skandalidis prior to executive bureau meeting

Prime Minister Costas Simitis and PASOK central committee Secretary Costas Skandalidis yesterday held a meeting ahead of today's first session of the party's new executive bureau.

Today's session will tackle the composition of the party's new organ, the seven-member political secretariat, which, according to the charter, includes the party leader, the party secretary, and the parliament president when PASOK is in power.

Sources said Mr. Simitis is also considering the inclusion of Environment Minister Costas Laliotis, Interior Minister Akis Tsohatzopou-los, and Development Minister Vasso Papandreou. They added that the seventh position is likely to be taken up by Education Minister George Papandreou, which has reportedly caused the displeasure of National Defense Minister Gerassimos Arsenis.

Replying to reporters' questions yesterday, Mr. Arsenis said he had not discussed the issue with the prime minister, adding he would express his view in today's session, after listening to those of his colleagues in the executive bureau.

Press reports yesterday said Mr. Simitis was inclined to exclude Mr. Arsenis from the new organ, the establishment of which the latter proposed at the recent party congress.

Questioned on the matter, both Mr. Skandalidis and Parliament President Apostolos Kaklamanis said the composition of the political secretariat was the exclusive responsibility of the prime minister.

Mr. Kaklanamis said he considers PASOK as a single party, not a federation of political and party forces, and therefore, all party members represent the whole of the party.

"Blocks and groups belong to the past," he commented.

[13] Premier meets with Parliamentary representatives

Prime Minister Costas Simitis held talks with Parliamentary representatives Dimitris Georgakopoulos, Yiannis Haralambous and Vassilis Brakatsoulas yesterday on issues concerning the coordination of the ruling PASOK party's deputies.

Mr. Georgakopoulos said afterwards that talks focused on the best way of coordinating Parliamentary work and on the need to mobilize and activate all of PASOK's deputies to make their work in Parliament more productive.

[14] Canadian MP delegation meets with Greek leadership

A delegation of Canadian parliamentarians currently visiting Greece met yesterday with President of the Republic Kostis Stephanopoulos, Foreign Minister Theodoros Pangalos and Parliament President Apostolos Kaklamanis.

Mr. Stephanopoulos also met with Greek-American businessman Angelos Tsakopoulos, who was accompanied by university professor Spyros Vryonis.

During the meeting with Mr. Pangalos, Greek-Canadian Deputy E. Bakopanou spoke of Ottawa's support for Greece and international law. Mr. Pangalos briefed the Canadian deputies on Greek-Turkish relations and discussed Canada's relations with the European Union.

Following his meeting with the Canadian delegation, Mr. Kaklamanis said he discussed national issues, concentrating on problems with Turkey and on the general situation in the Balkans.

[15] High security transmission connection between Athens, Nicosia decided

The public order ministry will be connected to the corresponding Cypriot ministry with a high security telephone and fax machine, after a decision taken yesterday during a visit of Public Order Minister Costas Geitonas to the island republic, where he met with Cypriot Justice and Public Order Minister Alecos Evangelou.

The goal of the connection is the confidential exchange of sensitive information between the two ministries.

In a related development, Cypriot police will be directly connected to the Automatic Fingerprint Recognition System (ASADA) in Athens in order to combat organized crime and for the apprehension of criminals.

Cypriot police officers will be trained in Athens in DNA issues such as genetic fingerprinting.

[16] Simitis, Vasso Papandreou confer

Prime Minister Costas Simitis yesterday met with Development Minister Vasso Papandreou, who did not make any statements afterwards.

Development Ministry sources said discussion during the hour-and-a-half meeting focused on economic issues, in view of the prime minister's meeting today with the government's economic ministers, including Ms Papandreou, National Economy Minister Yiannos Papantoniou, Finance Minister Alekos Papadopoulos and the governor of the Bank of Greece Lucas Papadimos.

The same sources said discussion included progress on privatizations, absorption of EU funds, as well as issues concerning internal functions of the ruling PASOK party.

[17] ND rejects Gov't satisfaction with ECOFIN recommendations

The main opposition New Democracy party yesterday criticized the government's expressed satisfaction from Monday's European Union Economy and Finance Ministers' Council (ECOFIN) recommendations on the Greek economy.

A statement from ND's EU secretariat said ECOFIN's recommendations for a reduction of excessive fiscal deficits through the adoption of additional measures denotes the ineffectiveness of the currently applied economic policy.

"It reveals the government's inability to respond in time to the terms of our country's participation in EMU. The divergence in three indicators (inflation, fiscal deficits, public debt) continue to be strong, and do not logically match the cries of triumph," the statement read.

"As long as the government continues to apply the wrong economic policy, based on continuous increases in indirect taxes, the reduction in working people's real incomes and the overvaluation of the drachma, the problems will continue to grow. If it does not proceed with the restructuring of production, the elimination of waste in the broader public sector and the utilization of the Delors II package funds, the target of nominal, and much more so, of real convergence, will become even more distant," the statement noted.

[18] National Bank agrees convertible bond loan with state

National Bank of Greece and the finance ministry have reached a final agreement, following prolonged negotiations, on the convertible bond loan issued in 1991, by replacing about 6.8 million convertible bonds held by the state at present with ordinary voting right shares, worth a total of 102.2 billion drachmas.

The agreement was unanimously reached at yesterday's repeat general assembly of the bank's shareholders, a development paving the way for the further restructuring of its treasury and an increase in the bank's share capital through the Athens Stock Exchange, according to the bank's governor Theodoros Karatzas.

The agreement abolishes the right to convert the loan into shares (with a ratio of one to two) and, to offset this, the state will receive 1,264,714 new additional bonds convertible into ordinary vote-carrying shares having a total face value of 16 bill ion drachmas (with a sale price of 12,651 dr. each).

The Bank of Greece will automatically recognize the new bond loan as the National Bank's share capital. The loan agreement will be ratified by law.

[19] Duty-free shops post healthy '95 profits

Net profits of the "Katastimata Aforologiton Eidon SA" (duty-free shops) increased by 10.36 per cent in 1995, compared to 1994, amounting to 13.68 billion drachmas. Total gross receipts also increased to 39 billion drachmas in 1995 compared to 34.32 billion drachmas in 1994.

The above results were publicized during yesterday's annual general assembly which was attended by Finance Under-secretary Giorgos Drys.

During the state-owned company's general assembly it was stressed that 1995 was a landmark for the shops' development and construction programme, expected to be completed in 1999, since a number of new outlets were built and operated. All the company's profits are included in the state budget as public revenues.

[20] Rail link between Greece, Albania promoted

Promotion of a rail link between Greece and Albania was agreed upon yesterday by the Greek Railways Organization (OSE) and the Albanian Railways Organization, during the group of general directors of Balkan railways' eighth convention, held in Athens.

The 110-kilometer-long rail link will complete a rail line from Durres to Varna, Bulgaria and Istanbul, which is based on existing rail lines in Greece and Albania.

OSE currently holds the presidency of the group of general directors of Balkan railways for 1996 and 1997 and also represents Balkan railways organizations in international railway bodies.

[21] Europarliament adopts report on relations with the Caucasus

The Europarliament's Foreign Economic Relations Committee yesterday unanimously adopted a report by main opposition New Democracy Eurodeputy Giorgos Dimitrakopoulos concerning the EU's strategy in relations with nations in the Caucasus.

Mr. Dimitrakopoulos proposes in his report that the EU should support construction of a crude oil pipeline between Burgas, Bulgaria, and Alexandroupolis, Greece, using funds at its disposal in the specific case.

This development would constitute an example of gainful regional co-operation between the EU, a country from central and eastern Europe and the Commonwealth of Independent States (CIS) of the former Soviet Union.

Coalition of the Left and Progress Eurodeputy Alekos Alavanos expressed support for the report and Mr. Dimitrakopoulos' specific proposal, and also referred to the position of relevant EU Commissioner Neil Kinnock, which is positive for the proposed Burgas-Alexandroupolis pipeline.

End of English language section.