A.N.A. Bulletin, 17/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 939), July 17, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] EU reps reportedly express satisfaction at measures taken to fight animal disease

Two European Union Standing Veterinary Committee representatives yesterday began an inspection of the Evros border region hit by several instances of foot-and-mouth disease.

In a meeting held in the area, the two EU officials expressed their satisfaction on measures taken by the Evros veterinary service, assessing measures as particularly severe, reports said.

The two officials, an Italian and a French national, were briefed by veterinary director Angelos Boglou on protective measures taken to combat foot-and-mouth disease in the Evros Delta. The meeting was attended by Agriculture Under-secretary Apostolos Fotiadis and Evros Prefect Giorgos Dolios.

After the meeting, the EU representatives declined to make statements to the press.

Accompanied by veterinarians, both experts visited sites affected by the disease, specifically in the Makri and Dikella communities for an on-the-spot inspection and assessment of the problem's magnitude.

Their report will be submitted at a scheduled meeting of the European Union's Standing Veterinary Committee on Friday.

Meanwhile, 1,300 sheep and goats affected by foot-and-mouth disease in the Doriskos, Evros community were slaughtered today in the presence of the two experts.

The animals were part of the marshy delta's livestock population - estimated at 8,000 cattle, sheep and goats - which had been transferred to the Doriskos region several days ago, where they subsequently developed symptoms of foot-and-mouth disease.

In another development, 200 new "suspicious" cases were located in two herds of cattle in the delta. The animals will also be slaughtered by order of the Evros veterinary department.

In addition, Mr. Dolios ordered the creation of a three-member committee to assess what compensation will be given to stockbreeders whose animals were slaughtered.

On their part, stockbreeders from the delta region met Mr. Fotiadis and Mr. Dolios yesterday, again raising objections to the proposed compensation and requesting 400,000 drachmas per large animal (cattle) destroyed. They also threatened to prevent the slaughter of their animals if a solution is not found. However, Mr. Fotiadis rejected the stockbreeders' claim, promising compensation totaling 100 per cent of animals' real value.

He said the amount of compensation for stockbreeders would be set by the three-member committee, which will make proposals to the ministry.

Mr. Fotiadis said that in cases of stockbreeders failing to comply, a protocol of non-co-operation would be prepared according to the relevant law and they would not be included in the compensation process.

He said the slaughter of animals contracting foot-and-mouth disease would continue, while special ditches were being created in the delta region for their burial.

Mr. Fotiadis said a proposal to create an inoculating zone in the Evros region was relayed by the two experts, and would be raised for discussion tomorrow at a meeting of veterinary services from the EU and third countries concerned (Albania, the Former

Yugoslav Republic of Macedonia (FYROM), Turkey, Bulgaria, etc.), to be convened in Brussels on foot-and-mouth disease in the Balkans.

Meanwhile, veterinary groups are continuing their controls in the entire region under supervision, as well as in the rest of the Evros prefecture.

In another development, a delegation of the main opposition New Democracy party, headed by former agriculture under-secretary Evangelos Basiakos, visited the delta as well as the Dikella and Makri communities.

Mr. Basiakos made an appeal and expressed the hope the relevant EU Standing Veterinary Committee would lift the temporary general restriction on exports, before soon replacing it with local restrictions in a specific geographical area.

He said specific and effective measures were necessary to prevent the expansion of animal diseases, as was unfortunately the case in July 1994.

[2] Stock-breeders call for more Gov't incentives

The stock-breeding cooperative Ktinotrofiki is asking the government for additional incentives for the development of stock-breeding in Thrace.

Following the appearance of foot-and-mouth disease in the Evros border prefecture, the organization's demands include stricter border controls in order to stop the import of animals carrying the disease; immediate compensation for stockbreeders and the re-scheduling of debt repayments over a decade for stockbreeders whose animals were hit by the disease.

In a statement issued yesterday, Ktinotrofiki characterized the decision taken by the EU's Standing Veterinary Committee to place a temporary eight-day ban on the export from Greece of live animals, fresh meat and by-products as being "unacceptable and hasty," adding that the problem is located in only two Evros communities.

[3] Gov't satisfied with EU Council's declaration on Greek-Turkish relations

The government yesterday expressed satisfaction with the European Union Council of Foreign Ministers' endorsement of the regulation of the Euro-Mediterranean Co-operation Programme (MEDA) and declaration expressing concern over the problem caused by Turkey regarding the Greek islet of Imia.

Government spokesman Dimitris Reppas described the decision as "positive", noting that Greece's future relations with Ankara "will be built on this basis with respect to Turkey's European perspective". The Council yesterday also called on Ankara to commit itself to complying with principles set out by the EU for the smooth continuation of its relations with the Community.

Mr. Reppas said it was the first time that the EU had expressed understanding for Greece's positions in such a way, adding that the solidarity expressed by the Community and the number of positions adopted constituted a major success for Greece.

"It is a clear message that Turkey should take advantage of, and Turkey must comply with international law and abandon its provocations against Greece," Mr. Reppas said.

Asked to comment on the Turkish reaction to the EU's decision and declaration, Mr. Reppas said it appeared that Ankara was not yet ready to respond to the EU's "invitation" to become a factor for stability in the region.

"This stance of Turkey must be evaluated by our partners in the European Union," Mr. Reppas stressed.

Asked whether disbursement of the MEDA funds to Turkey was dependent on Ankara's acceptance of the Council's decision, the spokesman said that "we must not jump the gun", clarifying that the issue would be re-examined at the informal meeting of foreign ministers on 15 September, at which time yesterday's decision would take official form.

In reply to another question as to whether Greece was maintaining its veto of the EU-Turkey customs union, Mr. Reppas said that the government was reserving its right to take a position on the issue after having meanwhile considered "the new development s which will emerge, if indeed they emerge" when the competent Community bodies deal with the matter.

Mr. Reppas intimated however that Greece would continue to veto the union if Turkey failed to alter its stance.

Asked to comment on New Democracy's reaction to the developments, Mr. Reppas said he was "not surprised" as ND "has no policy on this issue or any other".

"It is a pity for it (ND) to maintain a distance from what is a success for the government for reasons of opposition only," he said.

The main opposition New Democracy (ND) party declined to comment on Monday's decision by the EU, saying it had never "expressed opposition for opposition's sake."

ND spokesman Prokopis Pavlopoulos said the party hoped that the government and the EU had taken the appropriate measures to prevent Turkey from lessening the prestige of Athens and the Community and from leading Greece to "a new retreat and for no reason".

Leading ND cadre George Souflias was more positive, saying that there was no need for "so many months of hypocrisy for this to happen".

Political Spring leader Antonis Samaras said that the EU's declaration concerning the MEDA programme was "nothing more than a subterfuge for the disorderly retreat of the government" with regard to the Greek veto of funding for Turkey.

"Our partners in the Community forced Greece to act with them in rewarding Turkish aggression and intransigence", Mr. Samaras said, adding that "with the consenting opinion of Athens, the defending member, i.e. Greece, has been placed on the same level and at the same distance as Turkey".

Mr. Samaras accused the EU of "legitimizing" Turkey's demand for dialogue with Greece on all issues, including Greek sovereign rights, and of "closing its eyes" to the violations of Greek air space by Turkish warplanes and Turkish threats against Greece .

"The government operates with the syndrome of the 'teacher's pet' and with the criterion not of what Greece wants from the others but what the others want from Greece," Mr. Samaras said.

[4] Ankara hails EU approval of MEDA

Turkish foreign ministry spokesman Omer Akbel said yesterday that the European Union's decision to approve the Regulation for the MEDA programme was a "positive step, and in accordance with its obligations towards Turkey".

"With this decision, the economic cooperation between Turkey and the EU, interrupted in 1981, will resume," he said, adding that "the declaration issued simultaneously with this decision, regarding Greek-Turkish relations, is being appraised by the Turkish side, and our views on this subject will be announced at a later date".

Finally, Mr. Akbel said Turkey's relations with the EU will be discussed in detail during today's visit by Turkish Foreign Minister Tansu Ciller to Ireland.

Ms Ciller's two-day visit to Dublin will include talks on relations between Ankara and the EU, according to a Turkish diplomatic source.

She is scheduled to meet with her Irish counterpart, Dick Spring, and is expected to affirm that there has been no change in Turkey's policy regarding closer ties with Europe, following the forming of the new Islamist-led coalition government.

Prime Minister Necmettin Erbakan's Welfare Party has been critical of the Turkey-EU customs union before coming to power, however, a programme he announced at the beginning of the month speaks of respecting traditional ties between Turkey and the 15-member European bloc.

[5] State Department pleased with lifting of Greek objections to MEDA

Washington is apparently satisfied with Athens' decision to allow funding for Turkey from the MEDA programme, assessing that the development contributes "to Turkey's closer economic relation with the European Union", which the US strongly supports.

Replying to a relevant question by the ANA yesterday, State Department spokesman Nicholas Burns said "we are very satisfied that the Greek government decided not to exercise the right to veto in this process, by which Turkey will have expanded economic relations with the European Union. We believe it is very important. There is no country having supported the incorporation of Turkey into the west more than the US. Turkey is a western country and must be linked to the European Union as well as to NATO."

At the same time, US officials said that during a tour by the US ambassador to the UN Madeleine Albright to Athens, Nicosia and Ankara, which began yesterday, Washington will present specific proposals to the parties concerned, both on the Aegean and the process for resolving the Cyprus issue.

This was confirmed by the State Department's spokesman who, replying to a question by the ANA, said that Ms Albright "will speak to the Greeks and the Turks on Greek-Turkish issues in the Aegean, and will speak to the Greeks, Turks and Cypriots on the Cyprus problem. She is bringing with her some American ideas on both issues and will work hard to achieve some progress on these issues."

Mr. Burns avoided replying to the question on whether US proposals include a possible moratorium by Greece concerning the extension of its territorial waters in the Aegean.

[6] Aegean, Cyprus the focus of Arsenis, Albright meeting

US ambassador to the United Nations Madeleine Albright yesterday had an hour-long meeting with National Defense Minister Gerassimos Arsenis at the start of her two-day visit to Athens.

Discussion focused on the situation in the Aegean, the Cyprus problem and the island republic's joint defense doctrine with Greece as well as the latest developments in Bosnia.

Ms. Albright is scheduled to meet Prime Minister Costas Simitis and Foreign Minister Theodoros Pangalos today.

Yesterday's talks were described as of an exploratory nature but substantial, sources said.

The same sources said the Greek side reiterated its standing positions regarding Cyprus and the Aegean, while Mr. Arsenis drew particular attention to Turkish infringements of Greek national airspace which have recently multiplied, and briefed the high- ranking US diplomat on the reasons that dictated the adoption of the joint defense doctrine.

Ms Albright was not reported to have submitted any new proposals or ideas. The meeting was also attended by the US special envoy for the Cyprus issue, Richard Beattie, and Washington's ambassador to Athens Thomas Niles.

Ms. Albright subsequently met with main opposition New Democracy party leader Miltiades Evert, who declined comments afterwards. The US official is scheduled to visit Ankara and Nicosia after Athens.

[7] Greece, Albania agree to proposed SE Europe defense ministers meeting

Greek Defense Minister Gerassimos Arsenis and his Albanian counterpart Alfred Zhulali have given their full assent to a proposed meeting of south-east Europe defense ministers in Sofia, the Bulgarian News Agency (BTA) reported yesterday.

The meeting, a continuation of a Bulgarian initiative that led to the recent Balkan foreign ministers' meeting in Sofia, was proposed by Bulgarian Defense Minister Dimitar Pavlov during meetings on the sidelines of the "Peace Eagle 96" multinational exercise now taking place in Albania under NATO's "Partnership for Peace" programme.

According to Mr. Pavlov, the meeting will also be attended by representatives of the United States, Russia, NATO and the European Union. "This constitutes a solid guarantee for the success and implementation of the decisions we will make," Mr. Pavlov said.

The meeting will probably take place after Bulgarian presidential elections in the autumn, he added.

He also referred to the Former Yugoslav Republic of Macedonia, saying their participation in "Peace Eagle 96" under the name FYROM, the appellation used for the republic in the United Nations, "casts serious doubts on the value of the arguments with which (FYROM) refused to take part in the recent foreign ministers' meeting in Sofia".

[8] Armenian army chief has talks with Greek defense leadership

Further co-operation in the military sector between Greece and Armenia and the situation in the wider region were the focus of talks yesterday at the Greek defense ministry with first under-secretary and chief of the Armenian Armed Forces General Staff, General Mikail Haroutounian.

Gen. Haroutounian, who is visiting Greece at the invitation of Greek general staff chairman, General Anastasios Tzoganis, will visit military installations and officer training academies as well as archaeological sites in Athens and Thessaloniki.

His visit ends on July 19.

[9] Tunisian foreign minister arrives for official visit

Tunisian Foreign Minister Habib Ben Yahya yesterday arrived in Athens for an official visit.

Mr. Yahya, who was received by President of the Republic Kostis Stephanopoulos in the afternoon, will have talks with his Greek counterpart Theodoros Pangalos today. The two ministers will also sign a bilateral co-operation agreement.

Mr. Yahya also met yesterday with Interior Minister Akis Tsohatzopoulos.

Today, the Tunisian foreign minister will also meet with National Economy Under-secretary Manolis Beteniotis, Culture Minister Stavros Benos and Parliament President Apostolos Kaklamanis.

[10] Pangalos reiterates position on measures to make foreign ministry more effective

During discussion of a draft bill regarding the organization of the foreign ministry yesterday, Foreign Minister Theodoros Pangalos said his aim was to effect a restructuring and make the ministry a more effective body, which would better serve the country's interests.

He cited as an example Greece's permanent delegation to Brussels, which at one time numbered 105, compared to Germany's 75. The foreign minister said he had managed to reduce the number to 89, and would proceed even further regardless of reactions.

The measure was devoid of party considerations because there were no PASOK supporters in the diplomatic corps, he added.

Referring to a declaration of the 15 EU member-states on Greek-Turkish relations, which accompanied ratification of the MEDA programme regulation, Mr. Pangalos said it was the first time that the European Union undertook action in this field, adopting all Greek views.

[11] George Papandreou meets with expatriate Greek leaders

Education Minister George Papandreou yesterday discussed his ministry's recent bill for dissemination of the Greek language and cross-cultural education abroad with Council of Overseas Hellenism (SAE) President Andrew Athens and International Coordinating Committee-Justice for Cyprus (PSEKA) President Phillip Christopher.

In statements later, Mr. Papandreou announced that the education ministry, in co-operation with the sports secretariat, intended to establish sports programs which would also offer the opportunity to participating young people from other countries to learn Greek.

Mr. Athens said he briefed the minister on the latest developments regarding issues of concern to expatriate Greek communities, expressing his full satisfaction with the results of SAE's recent convention in Thessaloniki.

[12] Evert confident of victory in elections

Main opposition New Democracy party leader Miltiades Evert appeared confident that his party would win the next general elections, announcing to his advisers and department heads that in one month he would inform them of the positions they would hold after the victory.

"We must prepare from now what we will do in the beginning and what we will do at the end. We will not disappoint the Greek people because we have a very good programme and human resources must coordinate for the country to exit from the impasse," he said.

The ND leader said the Greek people had placed its faith in New Democracy and that the common purpose of all of ND was to assist the country out of the impasse.

The combination of technical experts and politicians is new, he said, but "I am certain that it will bring results and will succeed".

"The government has abandoned the Greek people to its fate," he said. "The government does not communicate with citizens, it undertakes no work except for meetings, theories and programs, without giving solutions to the problems and without effectiveness."

Mr. Evert's meeting with his advisers focused on the details and priorities of ND's government programme.

Party spokesman Prokopis Pavlopoulos said later that ND's aim was not only to win the elections but to govern in such a way as to solve the country's problems.

Mr. Pavlopoulos added that the issues of public administration, economy and major public works were discussed at the meeting.

ND will create a "small and flexible" cabinet, he said, adding that public administration would be equipped with a contemporary code of operation. The spokesman stressed the need for decentralization and that ND would give the means and resources necessary for the proper functioning of local administration.

He said the taxation regime was "illogical" and that ND would apply a stable and unified taxation system and create the necessary institutional framework to bolster investments and growth in the economy.

ND will also develop a framework that will put an end to construction delays in public works projects and to the lack of absorption of EU funds, he added.

[13] Evert favors creation of national foreign policy council

According to sources, during a meeting of his party's deputies participating in Parliament's summer session yesterday, main opposition New Democracy leader Miltiades Evert reiterated the need for the establishment of a national foreign policy council and a post of permanent foreign under-secretary, as well as the convening of a political leaders' council under the president of the republic in order to discuss relations with Turkey.

During discussion of a draft bill regarding the foreign ministry's regulation, Mr. Evert said "any organizational change would not bear fruit if a single and long-term national strategy and foreign policy is not formulated at a political level," according to the same sources.

"The government has proved that it has lost control of developments in national issues, has no clear picture of events in the region, as it is not participating in them to the degree that it should, and shows inexcusable incompetence in defending nation al interests," Mr. Evert was quoted as saying.

The sources added that New Democracy will seek a political confrontation with the government, as well as a debate in Parliament on the foreign, defense and cultural policies.

[14] Additional steps taken to eradicate Albanian gang activity on Corfu

The government aims to combat illegal activities by members of mostly Albanian criminal gangs recently plaguing Corfu by providing an advanced patrol boat in the area able to operate along with existing coast-guard and customs service vessels.

The decision to send the vessel, expected in the Ionian island on Saturday, along with a series of measures, such as the further provision of equipment for coast-guard and police authorities, was taken during a meeting at the national defense ministry last Saturday, which was presided over by National Defense Under-secretary Nikos Kouris.

The measures were announced at a press conference yesterday.

A decision was also taken for the Albanian government to be approached on the issue through the foreign ministry.

[15] Geitonas announces forthcoming changes to law on illegal immigrants

Public Order Minister Costas Geitonas said yesterday that his ministry was preparing legislative changes aimed at bringing Greek law into line with the Dublin Convention on illegal immigrants.

Mr. Geitonas said amendments were being made to legislation stipulating the conditions for granting asylum and residence permits. The new legislation, he added, would be more favorable for immigrants.

At the same time, Mr. Geitonas added, specific measures will be introduced aimed at facilitating the assimilation of illegal immigrants into the country's work force so that they can gain legal employment.

[16] Lufthansa says Greek airports slow but safe

The German airline Lufthansa said yesterday that it considered Greek airports safe for its flights but at the same time criticized delays at Athens international airport.

Replying to reporters' questions in Thessaloniki, Lufthansa's regional director for southeast Europe, Josef Bogdanski, said that "if there were risks with regard to the safety of our flights to Greek airports, Lufthansa would discontinue the service".

German and Danish pilots last year criticized Greek airport safety.

Mr. Bogdanski however was critical of the operation of Athens airport, saying that the Greek capital had a reputation in Europe for delays.

"These delays are catastrophic for Lufthansa. But it is the job of the Greek state to improve its airports," Mr. Bogdanski said.

Mr. Bogdanski said the number of (charter) flights to Greece of Lufthansa's subsidiary, "Condor", had fallen this year. While 2,800 flights had been scheduled, only 2,400 had been carried out, he said. He attributed the reduction to the drop in tourism to Greece this year and the increase in the number of visitors to neighboring Turkey where, he added, prices are lower and the standard of services better.

Mr. Bogdanski also announced bargain fares until August 11 for those traveling with Lufthansa from Thessaloniki to any destination in the world.

[17] Europarliament adopts amendment on airport handling services

The European Parliament yesterday adopted an amendment regarding provision of airport handling services in EU member-states, which recommends that Olympic Airways retain control in the sector in the airports of Thessaloniki, Irakleio, Kos, Rhodes and Corfu.

The amendment, submitted by Eurodeputies Stelios Panagopoulos (PASOK) and Nikitas Kaklamanis (Political Spring), and approved by 424 votes in favor, 27 against and one abstention, stipulates that "the airline, which controls more than 25 per cent of traffic in the airport, or, regarding island airports, more than 25 per cent of the airport's regular traffic, will be permitted either to enter this airport's (services) market, or continue providing handling services to third parties in this airport, without being subject to the selection procedure envisaged" in the relevant Directive concerning the deregulation of the market.

The chances, however, of the amendment being applied look slim, due to the express opposition of both the Transport Ministers' Council and the European Commission.

[18] Agriculture ministry prohibits imports of sheep from Bulgaria

The agriculture ministry has imposed tight controls on the border with Bulgaria to prevent the import of sheep from that country, where an epidemic of smallpox has broken out among sheep.

The measure was taken after indications of the disease were detected in a herd of 110 sheep in the village of Kanadas in the Evros triangle region.

The ministry's animal protection department has sent an urgent fax to veterinary services in eastern Macedonia and Thrace, calling for the prohibition of possible legal imports from Bulgaria due to the danger of herds in the border region contracting the disease.

The same fax was sent to border stations in Ormenio, Evrou and Promahonas, Serres, where relevant services were instructed to control and prohibit all imports of small animals from Bulgaria.

Veterinarians in Evros, the rest of Thrace as well as in other regions around eastern Macedonia are now conducting controls for both smallpox and foot-and-mouth disease.

Police are also patrolling the border with Bulgaria from Serres to Evros to prevent any illegal imports of sheep from the neighboring country.

[19] Greenpeace says 'interests' blocking cleaner forms of energy production

Officials from the environmental organization Greenpeace said yesterday during a press conference that "political reasons and interests were obstructing the development of environmentally friendly forms of energy in Greece."

According to the director of Greenpeace's Greek branch, the most significant obstacle to such energy sources in the country is the Public Power Corp's (DEH) "anachronistic policies", Stelios Psomas said.

Greenpeace says billions of tons of carbon dioxide are released into the atmosphere annually, mainly from the burning of fossil fuels for the production of electricity, causing, as the group claims, what many scientists refer to as "the greenhouse effect." The international environmental organization has released and is citing evidence stating that the temperature of the earth has been slowing increasing over the past few years, causing changes to the world's climate that have resulted in more floods, tropical storms and droughts.

Along those lines, the organization's Greek branch is pointing to an experimental solar energy plant it is promoting for Crete as a beginning for development of new energy technologies that will fuel positive changes in the European and international solar and wind energy markets.

To this end, Mr. Psomas said Greenpeace will co-operate with local, national and international bodies and organizations on a scientific and political level.

The organization recommends, among others, construction of photo-voltaic solar power stations producing 100MW by the year 2005; development of wind energy parks producing a total of 75MW by the year 2000; implementation of energy-saving measures and construction of at least one hydroelectric power plant of combined energy source operation which will use both renewable energy sources and conventional ones, so providing security and balance in the grid.

[20] Bank of Greece set limits on demurrage rates

The Bank of Greece is setting limits on demurrage interest rates and on the way they are assessed, which is usually used by banks to further burden companies, by order of its Governor.

More specifically, the demurrage interest rate cannot exceed 2.50 points of the contractual interest rate, namely what is the case with contracts which have not expired.

The decision said that banks should notify their clients of any change in the terms of their loans.

The decision concerns loans to be concluded or to be renewed as of August 1 onwards.

The circular said banks held the initiative over existing contracts which were expiring or would expire in the future.

[21] National Bank supports restoration projects

The National Bank of Greece has decided to grant loans for the restoration of buildings under favorable terms, bank president Theodoros Karatzas announced yesterday.

Loans can fund up to 100 per cent of the restoration cost, with a 15.5 per cent interest rate, and a 15-year repayment period.

More details are available from any branch of the National Bank.

[22] Gov't firm on granting real wage increases, Papantoniou says

National Economy Minister Yiannos Papantoniou said yesterday that the implementation of an incomes policy which ensures wage increases slightly above the annual target for inflation was a firm principle of the PASOK government. Mr. Papantoniou was speaking to reporters after a one-hour meeting with Prime Minister Costas Simitis whom he briefed on the situation of the economy.

Replying to questions on main opposition New Democracy party criticism that the government was having difficulties in preparing the 1997 budget, in view of its desire to give real wage increases, Mr. Papantoniou said given that there would be a 3 per cent increase in GDP next year, it would be inconceivable for workers not to receive any pay rise.

"If this were the case," he continued, "all the increase in national product would go to the profits of companies and this is not the government's policy".

"All, companies and workers, must share in the increase in national wealth, regardless of whether this annoys New Democracy," Mr. Papantoniou said.

He clarified that the details of the economic policy to be followed by the government would be revealed in the next budget, due to be tabled in November, and which would "naturally, move within the framework of the Convergence Programme".

[23] Community funds absorption rate to increase, Pachtas says

Meanwhile, National Economy Under-secretary Christos Pachtas said that the size of Community funds to be absorbed by Greece in 1996 would be equal to the total funds absorbed in the two-year period 1994-1995.

Mr. Pachtas was speaking to reporters after a separate meeting with Mr. Simitis whom he briefed on the implementation of the Community Support Framework.

He confirmed recent statements by Mr. Simitis that the rate of absorption of EU funds had increased and all the indicators of infrastructure work progress had improved.

Asked how satisfied he was with the present rate of absorption of Community funds, Mr. Pachtas stressed that absorption would increase.

"We are quite optimistic, following the messages from the first half of the current year, that we will fully meet the commitments undertaken with respect to funds for 1996," he said, expressing the hope also that a portion of the funds not absorbed during the period 1994-1995 would eventually be absorbed during the second half of 1996.

According to Mr. Pachtas, the total amount of funds to be absorbed by Greece this year from the Community Support Framework would reach 1.1 trillion drachmas, without taking into account the public investments programs which are financed from national resources.

Mr. Pachtas' meeting with the premier was part of preparations ahead of the forthcoming inner cabinet meeting which will examine in detail the course of Community programs, the Cohesion Fund and Community initiatives.

[24] Reactions

Political Spring party spokesman Notis Martakis reacted sardonically to Mr. Papantoniou's statement that increases for wages and pensions would be "just like this year".

"Wage-earners and pensioners have nothing to fear. We hope their overwhelming joy doesn't do them any harm," he said.

[25] Papoutsis seeks 'compromise' on EU natural gas market

EU Energy Commissioner Christos Papoutsis is seeking an "authoritative compromise" for the Union's natural gas market.

At the European Parliament's energy committee, which is convening in Strasbourg, Mr. Papoutsis referred to the issue saying "the European Commission is willing to discuss the issue with all parties interested - governments, industry, consumers and working people - before negotiations at the Council of Ministers in autumn on the relevant directive.

"We will try to have the views of all interested parties to enable us to form the best possible overall picture and achieve an authoritative compromise," he said.

The issue of natural gas as a main energy source is of particular interest to Greece.

The Committee had adopted the amendment after a first reading at the Europarliament.

Mr. Papoutsis said "quite some time has lapsed since then and important developments have taken place both inside and outside the natural gas sector, which might interest the proposal on natural gas."

Mr. Papoutsis briefed Eurodeputies at the energy committee session on results of the energy council's extraordinary session on June 20, during which ministers unanimously adopted a common position on the directive concerning the domestic electricity market.

He said the directive "achieved a fine balance between respect for competition rules and respect for obligations on rendering a public service."

The second reading of the directive on the domestic electricity market at the European Parliament has been planned for Sept. 4.

[26] Avramopoulos to leave for Olympics

Athens Mayor Dimitris Avramopoulos is due to leave for Atlanta today in order to attend the Olympic Games' opening ceremony.

Mr. Avramopoulos is scheduled to meet with International Olympic Committee (IOC) President Juan Antonio Samaranch and with members of the IOC.

With an aim of furthering relations between Athens and Atlanta, Mr. Avramopoulos will donate a statue on the theme of victory, which will be placed in front of Atlanta's city hall. The statue is the work of sculptor Pavlos Kouyioumtzis. The Athens mayor heads the committee handling Athens' bid for the hosting of the 2004 Olympic Games.

[27] French students of Ancient Greek

The Hellenic Cultural Foundation yesterday honored 40 French high school students for choosing to study Ancient Greek.

The group, who are on a tour of Greece, received distinctions in their final examinations for the subject, which is optional in French schools.

Every year, high school students distinguishing themselves in the study of Ancient Greek are taken on an educational tour of Greece and the Peloponnese, at the initiative of the philanthropic organization "Athena", headed by its president Professor of Classical Studies Antoine Deneville. At the same time, 40 French teachers of Ancient Greek literature wishing to teach their subject in modern Greek are on the island of Alonissos for a 15-day seminar, organized by "Athena".

[28] Arsonists arrested

A Bulgarian national and four Greeks were arrested yesterday on the Greek-Bulgarian border, suspected of deliberately setting fire to forestland.

The identities of the five, who come from the village of Potami in Drama, were not released.

End of English language section.