A.N.A. Bulletin, 12/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 935), July 12, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Gov't dismisses reports of US naval forces in the Aegean

The government yesterday rejected a newspaper report claiming that the United States had proposed stationing vessels of the Sixth Fleet in supposedly "gray areas" in the Aegean.

"We know of no such proposal," government spokesman Dimitris Reppas said when asked to comment on a front-page article in yesterday's edition of the Athens daily "Ethnos".

He added that Greece, in any case, would under no circumstances accept any restrictions on its sovereignty.

Commenting meanwhile on the wording used by an Athens US Embassy official in a recent document expressing "concern" about Greek warplanes overflying Cyprus, Mr. Reppas said that in rejecting the document itself, the government had also rejected the way in which it had been expressed.

"We do not agree with the way in which it was expressed," the spokesman said, clearly referring to the use of references such as one to the so-called "Turkish Cypriot state".

Replying to questions on next week's visit to Greece by US envoy to the United Nations Madeleine Albright, Mr. Reppas said no meeting had so far been scheduled with Prime Minister Costas Simitis.

The spokesman added that the government had not yet been informed about the precise purpose of Ms Albright's visit, attributing the visit to US interest in the region, "interest which is expressed by sending representatives of various ranks".

Cyprus government spokesman Yiannakis Cassoulides said earlier this month that Ms Albright would visit Cyprus, Greece and Turkey in July, accompanied by the US presidential envoy for Cyprus, Richard Beattie.

Foreign ministry spokesman Costas Bikas announced later that Ms Albright and Mr. Beattie were due to arrive in Athens on Monday. They will subsequently visit Nicosia and Ankara.

[2] Greece seeks to buy $100 million of US arms

Greece wants to buy $100 million worth of US-made tanks, artillery, trucks and other military equipment, the US Defense Department told Congress Wednesday.

The Pentagon said Greece needed the equipment to ensure the continued operational readiness of its US-origin combat vehicles.

"This sale will not adversely affect either the military balance in the region or US efforts to encourage a negotiated settlement of the Cyprus question," the Defense Department said in a statement.

[3] New measures to curb insurance problems announced

Development Minister Vasso Papandreou yesterday announced a series of institutional measures, including spot checks, to ensure the solvency of insurance companies and more effectively protect the rights of the insured.

The measures include an increase in the share capital required for establishing insurance companies which must now be at least triple the amount of guaranteed capital for each branch of insurance.

Companies already operating will be given a three-year grace period to comply with the measure.

In addition, legislative amendments will be made in order to combat the problem caused by the high number of cars circulating in Greece without insurance.

Another measure is the introduction of a 30-day time limit within which insurance claims for damage arising from accidents must be paid, beginning as of the date of filing of the relevant claim.

In future, insurance companies will be obliged to publish statements of their financial position every six months while they must also provide a range of financial details to their customers upon request.

Ministerial decisions will set minimum levels for calculating compensation in order to reduce instances of arbitrariness on the part of insurance companies while at the same time making it less necessary for the insured to have recourse to justice.

Ms Papandreou also announced that stop checks of all insurance companies will be stepped up in order to ascertain compliance with regulations concerning their technical reserves, investments, solvency margins, losses incurred, liabilities etc.

[4] Turkish violations of Greek airspace significantly up in '96

Violations of air traffic regulations in the Athens Flight Information Region (FIR) and infringements of Greek airspace by Turkish military aircraft have significantly increased this year, reliable sources revealed yesterday.

Specifically, 542 violations of FIR air traffic regulations and 1,096 infringements of national airspace were recorded in the first half of the year, compared to 540 violations and 523 infringements in the whole of the last year.

The same sources said the increase in the number of incidents was especially significant after the Imia islets crisis at the end of January. Violations have also not ceased recently, despite Turkey's stated commitment to abstain from military exercises in the Aegean during summer months, a practice followed by Greece since 1988. National Defense Minister Gerassimos Arsenis said in a press conference on Tuesday that Turkish provocations have lately reached the point of giving the impression of planned mock attacks against specific targets. Fighter aircraft recently flew over areas near Skyros and Santorini.

The previous peak year of such incidents was 1994, with 913 violations and 695 infringements, which experts attribute to the reiteration by Greece of the right, under the International Law of the Sea, to extend territorial waters to 12 nautical miles.

[5] Violations continue

Turkish warplanes violated air traffic regulations of the Athens FIR and infringed on Greek national airspace on three occasions in the eastern Aegean today, according to reports.

There was immediate interception by Greek aircraft, it was added.

[6] EU presidency - Greece confer today on MEDA 'compromise formula'

Foreign Minister Theodoros Pangalos is scheduled to confer with his Irish counterpart Dick Spring this morning, reportedly to discuss an Irish EU presidency compromise proposal to lift Greek objections to the release of MEDA funds to Turkey.

Announcing the meeting, foreign ministry spokesman Costas Bikas declined to clarify under what circumstances Greece might be willing to lift its veto.

At the same time, Mr. Bikas said that the EU-Turkey Association Council would not eventually be meeting as scheduled on Monday, following the relevant decision yesterday of the Council of Permanent Representatives of EU member states (COREPER).

However, both the MEDA issue and the date for convening the association council are on the agenda for discussion at the Council of EU Foreign Ministers in Brussels on Monday.

Earlier, government spokesman Dimitris Reppas said Athens was unaware of the content of the reported compromise proposal.

Replying to questions from the press, Mr. Reppas added that Athens would reserve its right to take its decisions following talks with Mr. Spring.

[7] High-ranking Gov't meeting discusses 1996 intergovernmental conference

A closed-door meeting of officials from the foreign, national economy and national defense ministries with the prime minister's office was held at Lagonisi yesterday on issues dealing with the 1996 intergovernmental conference.

The meeting was organized by the foreign ministry as Foreign Minister Theodoros Pangalos declared its opening, while in turn Alternate Foreign Minister George Romeos made an address on the course of the intergovernmental conference to date.

Mr. Romeos said an interim report by the just ended rotating Italian EU presidency, constituting the basis for negotiations over the second half of the year, registered the views of member-states adequately, and in a balanced manner.

It also refers to three issues of particular interest to Greece. One concerns reference to an examination of the question of insular regions in the EU; reservations by certain countries on the possibility of a general "flexibility" clause being introduced and reference to a discussion on the issue of protection for the EU's external borders.

Greece has submitted special memorandums to the conference on the issues of insular regions, common foreign policy as well as defense policy and protection for external borders.

In connection with institutional issues, Mr. Romeos said Greece was going into the negotiations with the prime target of democratizing the EU's entire institutional system without overturning existing balances.

From this point of view, it supports the strengthening of the European Parliament's responsibilities - support for which Yiannos Kranidiotis submitted a special document - a more systematic interaction of national parliaments in European affairs and wit h the responsibility of their governments, but disagrees with the establishment of a new agency composed by national parliaments as was proposed.

[8] Greece approves entry of Greek-speaking EU nationals to public service

Parliament's first summer session yesterday passed legislation allowing European Union citizens of countries other than Greece to be employed in the public service, provided they speak Greek.

Interior Under-secretary George Moraitis said the bill harmonized national law with the Community's and that a forthcoming presidential decree would define the positions which would be restricted to those of Greek nationality.

These positions, he added, were in the armed forces, security forces, taxation administration and the diplomatic and justice sectors.

A European Court ruling last week criticized Greece for violating Community law on the hiring of EU citizens in the public sector. It said that nationality could only be a criteria for appointment in services that safeguard a state's general interests.

Communist Party of Greece deputies walked out before the vote, saying the bill ran counter to the constitution and that it should be debated at a full session of the house while New Democracy and Political Spring both voted in favor.

[9] EU to examine isolated instances of foot-and-mouth disease

The European Union's Standing Veterinary Committee is meeting here today to consider measures necessary to prevent the spreading of foot-and-mouth disease from the northestern Greek border region of Evros to other member-states.

The disease has appeared in some goat and sheep herds in only two villages in the area, while agriculture ministry services have already destroyed more than a thousand animals for preventive reasons.

The measures to be proposed by the Committee, whose role is consultative, with decision taken by special majority, may include the banning of exports of live animals from Greece, fresh meat and dairy products which are not pasteurized. However, final measures will be taken by the European Commission after proposals are forwarded by the Committee.

The Committee may have to await the report of a special team of veterinarians from the area before deciding on proposed measures.

Athens has stressed that no measures are required for the whole of the country, given that the disease has been restricted to a particular area, with necessary measures already adopted.

In Athens, government spokesman Dimitris Reppas said yesterday that there was "no problem" with regard to the two cases of foot-and-mouth disease reported in the region.

"The government took all the necessary measures and the small number of infected animals have been slaughtered in the communities of Makri and Dikelos in the Evros prefecture," Mr. Reppas said.

[10] ND electoral committee meets again as early election speculation persists

The main opposition New Democracy party's electoral committee conferred for the second time in 10 days yesterday, as a belief is widespread in the party that the country is headed toward early elections.

Questioned on whether the likelihood of such an eventuality is linked to the state of the economy, ND leader Miltiades Evert replied affirmatively.

Former national economy minister Stefanos Manos, expressing the same view, said the government would not adopt any of the measures recommended by the European Union and international organizations, while strongly attacking Development Minister Vasso Papandreou for not utilizing the special airport tax (Spatosimo) to upgrade the country's airports.

Other prominent ND members on their way to the meeting also expressed an opinion that early elections were likely, either in the autumn or in the spring at the latest.

[11] Andrianopoulos gives deposition on controversial phone lines contract

Former New Democracy trade and industry minister Andreas Andrianopoulos yesterday testified for about two-and-a-half hours before an appellate-level judicial investigator looking into the case of alleged irregularities in the provision of one million digital telephone lines to the Hellenic Telecommunications Organization (OTE) by Siemens Hellas and Intracom in 1994.

Mr. Andrianopoulos was the minister who in December 1994 filed the lawsuit on the basis of which the investigation began.

Exiting the investigator's office, the former minister told reporters he believed the case amounted to a "large abscess" in the country's public life, and called for justice to be left to do its job unhindered.

"If justice goes to the end of its probe, and the abscess is broken, a lot will be revealed, and perhaps the stench will hit many of us," he said.

[12] Tsohatzopoulos firm: No early elections

Prime Minister Costas Simitis and Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos had a wide-ranging discussion on the course of the government's work yesterday, their first meeting since Mr. Simitis was elected party leader at ruling party PASOK's fourth congress.

Mr. Tsohatzopoulos told reporters after the hour-long meeting that they had discussed issues concerning the government and the party and stressed that it was now time for all in the party to mobilize to complete the government's work.

"There is no issue of early elections," he said firmly. "Everybody is committed to seeing out the four-year term and will be judged by their work in October 1997".

He added that the prime minister and he had discussed ways to best deal with the spate of forest fires expected this summer (due to high rainfall over the winter and greater than usual vegetation) and new technology in public administration.

[13] Reppas comments on Arsenis

Government spokesman Dimitris Reppas said yesterday that National Defense Minister Gerassimos Arsenis had been informed of the content of a US 'expression of concern" regarding Greek air force fighters conducting flights over Cyprus.

Replying to a question on Mr. Arsenis' comments on Wednesday following the PASOK Executive Bureau meeting in which he said he could speak directly to party bodies and to the people, Mr. Reppas said such a statement would probably be welcomed by the prime minister who himself is in favor of closer ties with both the party and the people.

Mr. Reppas added that Mr. Arsenis was an important member of the party who had repeatedly shown that he wanted PASOK and the government to achieve their aims.

[14] P'ment c'tee begins examining defense ministry bill on armed forces

A Parliamentary committee began discussions yesterday on the national defense ministry's new legislation on the military hierarchy.

Defense Minister Gerassimos Arsenis said the bill was the outcome of two years of work by specialist committees, which took into consideration both Greek and international aspects.

He noted that the bill introduces reforms to the existing system and these reforms upgrade the staffing of the armed forces.

All three opposition parties have said they will vote down the bill, while their representatives at the committee said that the reforms would cause 'unrest' in the forces and noted that the text should be discussed by the Parliament's plenary session and not by the summer session.

[15] SAE conference begins today

A three-day conference of the presidium of the Council of Overseas Hellenism (SAE) is due to open in Thessaloniki this morning. Those participating in the conference include Alternate Foreign Minister George Romeos and Macedonia-Thrace Minister Filippos Petsalnikos as well as SAE President Andrew Athens. A dinner will be held this evening by Mr. Petsalnikos in honor of the SAE members, while tomorrow, conference members are to meet with Parliament's inter-party committee.

A press conference has been scheduled for Sunday, during which announcements will be made regarding decisions taken during the conference, while on Sunday night, SAE presidium members will meet with representatives of expatriate Greek media. Kavala will host a vocational programme for expatriate Greeks in the handling of personal businesses.

Organized by the Greek Productivity Center (ELKEPA), the Secretariat General for Popular Education and Kavala regional organizations, the 400-hour seminar is aimed at those aged between 22 and 40, with at least a junior high school education. For more information, call 051-831-126 or 835-794.

[16] International Law of the Sea convention on Rhodes scheduled

The first convention of the Rhodes Academy of International Law of the Sea begins on Monday and will last until August 2. The Rhodes Academy is an joint international endeavor, founded by the Aegean Institute of the Law of the Sea and of Nautical Law, the University of Virginia's Center for Ocean Law and Policy, the Max-Planck Institute of Comparative and International Law at Heidelburg University and the Netherlands Institute of Law of the Sea.

The academy's aim is for it to operate with the same high teaching standards as those with which The Hague Academy contributes to the understanding of international law. The Rhodes Academy offers a three-week study programme every year, covering general subjects of maritime law and policy and the studying of contemporary problems relating to the Law of the Sea. This year's programme is being largely funded by the European Union and by the founding institutes.

[17] Forest fire on Mount Penteli under control

A forest fire that broke out yesterday afternoon near the Penteli Monastery was quickly placed under control, the fire department announced later in the evening.

Prompt action by local residents, police and fire-fighting forces apparently prevented the fire from spreading to residential areas, buildings and the monastery itself, although it came close. The fire broke out at 2:30 p.m. in Agia Triada region, quickly spreading to other locations due to the wind. Two fire-fighting planes, 20 fire engines and ground crews immediately sped to the scene.

Access to Penteli Avenue was closed off during the operation but was authorities yesterday evening said the road would be re-opened shortly. Reports that the fire was intentionally set have yet to be confirmed, police said.

[18] Theodorakis honored by OTE

Popular composer Mikis Theodorakis was honored by the Hellenic Telecommunications Organization's (OTE) administration yesterday, while OTE will dedicate the first phonecard in the series "Personalities of the 20th century" to the internationally renowned artist. OTE managing director Petros Lambrou said the event organized for Mr. Theodorakis was only a small tribute for what he had given to Hellenism with his music and struggles.

Mr. Theodorakis said his music was addressed to the people, and for this reason the introduction of his works on the worldwide computer web Internet was discussed.

[19] Italian nationals charged with illegal immigrant smuggling

Three Italian nationals were arrested yesterday for unloading 22 Asian illegal immigrants off Lavrio earlier in the day. According to reports, the suspects were recognized by the illegals, who were detained on the 66th kilometer of the Sounio to Athens highway. The group had been transported from Kusadasi, Turkey to Attica's shores. Luciano Boscardini, 52, the skipper of the Italian-flagged yacht "Elmo", Enzo Galesi, 33, a crewmember on the vessel and Alessandro Zamai were charged in connection with the incident.

[20] Canadian delegation meets with Greek officials

Education Minister George Papandreou yesterday received a Greek-Canadian Association delegation, comprised of Canadian deputies from all parties - two of them of Greek origin - and Ottawa's ambassador to Athens.

An education ministry statement said there was discussion of strengthening bilateral educational ties through student exchange programs and boosting Greek education centers in Canada, specifically in Toronto, Montreal and Vancouver.

The delegation, including six Canadian MPs and two senators, and headed by Eleni Bakopanos, later paid a visit to mayors of Athens and Piraeus, Dimitris Avramopoulos and Stelios Logothetis respectively.

With Mr. Logothetis, issues discussed included the declaration of Piraeus and the port of Halifax, Nova Scotia as sister cities, port pollution, and issues concerning the Greek-Canadian community.

[21] Greek ambassador to France presents credentials

Greece's new ambassador to France Haralambos Korakas presented his credentials to French President Jacques Chirac on Wednesday at a ceremony also attended by Foreign Minister Herve de Charette.

Mr. Chirac welcomed Greece's new envoy and wished him success in his mission.

He referred to the excellent climate in bilateral relations and traditional ties of friendship between the two countries.

[22] Kaklamanis receives French high school students

Parliament President Apostolos Kaklamanis yesterday received a group of 40 French high school students at Greece's Parliament House.

The students, all of whom distinguished themselves in the French annual competition in ancient Greek, are on a two-week holiday of Greece which will take in tours of ancient sites in Athens and other cities.

Mr. Kaklamanis congratulated the students on their successes and their love of the Greek language and briefed them on the Parliament's "Youth Parliament" initiative.

[23] Meeting held to consider problems faced by agriculture sector

The government's economic committee convened late last night in order to find solutions to problems being faced by the agricultural sector.

During the meeting, Agriculture Minister Stefanos Tzoumakas presented a draft bill containing changes in issues concerning stock-breeding and fishing among others.

One of the most important changes is the regulation of the debts of agricultural cooperative organizations and businesses of a cooperative and public nature to the Agricultural Bank amounting to 92 billion drachmas.

Under the change, which was announced by Mr. Tzoumakas, agricultural cooperatives are modernized and are called on to deal with competition on their own, having been "delivered of the burden of social policy which had been implemented for a series of years."

Closing the meeting, National Economy Minister Yiannos Papantoniou, who presided over the meeting, reportedly said he recognized the problems being faced, and is positive about solving them.

He said the amount of funds needed will be set by the responsible government bodies by the end of August.

[24] Evert says economic indicators show poor performance

Main opposition New Democracy party leader Miltiades Evert said the main characteristics of the Greek economy were the strengthening of inflationary potential, worsening of fiscal developments and the shaking of external economic balances.

Speaking at his party's election struggle central committee yesterday and referring to economic developments in the country, Mr. Evert said the reduction of inflation below 8 per cent by the end of the year, compared to 5 per cent which was the government's goal, will result in the maintenance of nominal interest rates at high levels and the destabilization of inflation.

He added that the current accounts balance, and primarily the trade balance, had worsened in 1995 compared to 1994, adding that the unfavorable course was continuing in the first four months in 1996 with intensifying rates.

He also said the rate of increase of monetary circulation continued to move outside targets set by the monetary programme, due primarily, to the overvaluation of the drachma during the first six months, which also had a negative effect on the economy's competitiveness.

Mr. Evert referred to the main economic indicators, saying that unemployment was expected to exceed 10.2 per cent this year, compared to 10 per cent in 1995, while private savings decreased from 21.1 per cent of available income in 1994 to 18.5 per cent in 1995 and was expected to further decrease to 17.5 in 1996.

Commenting on the state budget, Mr. Evert said most problems emanated from an increase in first-stage expenditures, adding that even the government's economic ministers admitted the worsening of the situation.

The ND leader said Greece was being led to deadlock in its effort to participate from the beginning in the group of countries to join the European Monetary Union and pointed to the possibility of general elections being brought forward due to unfavorable economic developments and unfulfilled promises.

General elections are scheduled for October 1997.

[25] 'Proposed prices' on goods implemented in effort to fight inflation

Products of widespread consumption will have "proposed prices" written on their packaging to prevent instances of unjustified price increases or divergence from one region to another, or one supermarket to another.

The development ministry intends to implement the measure soon as part of a policy of containing prices and shrinking inflation.

Development Minister Vasso Papandreou said the measure was being implemented successfully in countries that have traditionally in the operation and protection of competition.

In an effort to probe the possibility of implementing the measure during the summer period when phenomena of profiteering are observed, mainly with products having increased demand, Commerce Under-secretary Mihalis Chrysochoidis met with representatives of trade associations, the Foodstuffs Association and the Federation of Greek Industries (SEB) on Wednesday.

A meeting will be held at the development ministry on Monday with enterprises producing products of high demand to examine ways of specializing the measure.

[26] 'Spatosimo' decrease earns harsh ND criticism

Development Minister Vasso Papandreou announced yesterday a reduction of the airport departure tax (spatosimo) by 1,200 drachmas, with the difference being refunded to tour operators, in an effort to boost tourism.

The decision, however, drew the immediate criticism from former national economy minister and main opposition New Democracy deputy Stefanos Manos.

"Ms Papandreou's decision... is unacceptable. First of all, no serious tourist, for 1,200 drachmas, which is the price of two coffees, is going to come to Greece. The argument that because of this reduction tourism will increase by 4 per cent is incomprehensible. Ms Papandreou should look for more serious arguments," he said.

Mr. Manos added that under the development minister's announcement, the reduction would be refunded to tour operators and would not affect the actual tourists leaving the country.

In a caustic reply to the ND deputy's statements, Ms Papandreou later in the evening said "we inform Mr. Manos... (that) funds for the improvement of airports are not affected. At the moment there are quite a few open packages... which gives us the opportunity, with the reduction of the airport tax, to achieve an increase in tourist flow by 4 per cent. And these tourist packages are handled by the tour operators which Mr. Manos wants to punish."

She added that the reduction in the airport tax will mainly benefit "thousands of the country's small-to-medium-sized tourist businesses and the tens of thousands of tourism sector employees, and not the few massive units which have better organization and have booked their packages long ago. Is this what causes the gentlemen of ND to shed crocodile tears and to attack so-called interests with unacceptable innuendoes?"

End of English language section.