A.N.A. Bulletin, 25/09/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 998), September 25, 1996

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca

CONTENTS

• [1] Simitis forms new Gov't to 'deal with challenges of the times'
• [2] Reactions
• [3] Cyprus problem is not issue for Greek-Turkish dialogue, Pangalos says
• [4] Pangalos, Mihailidis stress good co-operation between Greece, Cyprus
• [5] The new cabinet
• [6] Greek election results victory 'for whole of Europe' Vranitzky says
• [7] Archbishop's of America, Cyprus congratulates Simitis
• [8] ND deputies ask Evert to consider resignation decision
• [9] Direct foreign investment in Greece declines, UNCTAD confirms
• [10] Neogal passes into control of dairy producers
• [11] Greek football teams disqualified from UEFA Cup
• [12] President to visit Finland

[1] Simitis forms new Gov't to 'deal with challenges of the times'

Athens, 25/09/1996 (ANA)

Greek Prime Minister Costas Simitis, bolstered by a fresh four-year mandate after winning a solid victory against his conservative rival on Sunday, announced his new cabinet yesterday evening.

The new government is to be sworn in in the presence of President Kostis Stephanopoulos today.

Mr. Simitis and his associates worked around the clock over the past couple of days to put together the new 41-member cabinet, which includes 14 new ministers and undersecretaries, with 12 portfolios changing hands.

Theodoros Pangalos has retained the Foreign Ministry, with Giorgos Papandreou, son of the late PASOK founder Andreas Papandreou, replacing Giorgos Romeos as Alternate Foreign Minister. Giorgos Romeos has been appointed Public Order Minister.

The Defense Ministry went to Akis Tsohatzopoulos, while Vasso Papandreou retained the Development Ministry.

Gerassimos Arsenis has replaced Giorgos Papandreou at the Education and Religious Affairs Ministry.

The National Economy portfolio has been retained by Cambridge-educated economist Yiannos Papantoniou, who has also taken over the Finance Ministry from Alekos Papadopoulos.

Mr. Papadopoulos, an effective tax collector, has replaced Akis Tsohatzopoulos at the Interior, Public Administration and Decentralization Ministry.

Mr. Simitis is expected to chair his first cabinet meeting soon after the swearing-in ceremony.

The prime minister is faced with tough challenges in delivering his campaign promises for a stronger, more competitive economy.

Meanwhile, the prime minister's office issued an announcement yesterday saying that the new government is called on to "deal with the country's critical problems as well as with the challenges of the times."

"The formation of the government aims at combining tested experience with the need for renewal," the announcement said.

It said the new government must "open new creative prospects for Greece."

According to the announcement, PASOK will support Apostolos Kaklamanis for a fresh four-year term as Parliament President.

The announcement further emphasizes the appointment of Mr. Arsenis to the head of the Education Ministry.

Four ministers in the old Cabinet have not been included in the new scheme, namely those of Culture, Stavros Benos, Health and Welfare, Anastasios Peponis, the Aegean, Antonis Kotsakas and Merchant Marine Minister Kosmas Sfiriou.

Reports have said former education minister Giorgos Papandreou has expressed displeasure with the government's announcement regarding the new cabinet, which said former defense minister Gerassimos Arsenis has been chosen to take over the education ministry because special emphasis must be placed on preparing the young generation.

In a written statement, Prime Minister Costas Simitis replied by stressing the "great contribution" of Mr. Papandreou to the education ministry, and saying his move to the foreign ministry was necessitated by increasing needs in foreign policy and occurred at his personal request.

Sources said Mr. Papandreou's displeasure concerned the possibility that references regarding Mr. Arsenis made in the government announcement could be interpreted as a condemnation of his own educational policies. Mr. Papandreou has accepted the position of alternate foreign minister.

[2] Reactions

Athens, 25/09/1996 (ANA)

The announcement of the new cabinet was met with criticism from opposition parties. Miltiades Evert, who resigned from the leadership of the main opposition New Democracy party, issued an announcement last night soon after the cabinet was announced.

"At a time when PASOK's government is showing the first expected breaches even before it is sworn in, New Democracy is being led to the election of its new leadership, according to its charter and with impeccable democratic procedures," the announcement said.

"I call on all colleagues to contribute in practice to the maintenance of a climate of calmness and unanimity which befits our great democratic side, avoiding statements and manifestations which give a distorted image to New Democracy, and indirectly c over up the problems which PASOK is and will continue facing," he concluded.

Commenting on the composition of the new Cabinet, New Democracy party spokesman Prokopis Pavlopoulos said it provided "a clear indication of the policies that it will follow and apply. The only surprise is that its problems began even before its swearing-in."

In its announcement, the Communist Party of Greece (KKE) said "the Greek people can expect no good from the new PASOK government.

"As the previous one, the only thing it guarantees is the policy carved according to the dictates of the European Union and the Association of Greek Industries (SEB).

"It is certain that this government and this policy will meet with our people's resistance," the statement added.

Coalition of the Left and Progress party leader Nikos Constantopoulos was more reserved in his comments.

"Although the new government is not really new but a reshuffle of the old one, we shall judge it from its policies, methods and stands," he said.

"The new period opening up for the country's political life needs inspiration, creativity and effectiveness for progressive solutions ... The interest of the people and the country needs changes in everything," he added.

The Democratic Social Movement (DHKKI) announcement said "the general characteristics of the new government have not changed in relation to the previous one. What's more, the 'new age' has begun with bargaining.

"What is important to the country and the Greek people is a change in government policy, which does not look likely to appear."

[3] Cyprus problem is not issue for Greek-Turkish dialogue, Pangalos says

New York, 25/09/1996 (ANA - M. Georgiadou)

Foreign Minister Theodoros Pangalos said yesterday that the Cyprus problem was an issue between Turkey and the government of Cyprus, and not one of dialogue between Athens and Ankara.

He was commenting on a proposal by Turkish Foreign Minister Tansu Ciller, who called for a Greek-Turkish dialogue on the Cyprus problem during a meeting with US counterpart Warren Christopher.

"The Cyprus question is an issue between Turkey and the government of Cyprus. Dialogue between Greece and Turkey on the Cyprus issue is inconceivable," Mr. Pangalos told reporters in New York, where he is attending the UN General Assembly.

Asked to comment on statements made by State Department spokesman Nicholas Burns that Mr. Simitis should become more involved in the Cyprus issue, the Greek Foreign Minister replied:

"He did not say that, exactly. It would be a bit strange for Mr. Burns to arrange precisely what Mr. Simitis, who is the Prime Minister of an independent country, will do. He said they (the United States) expected us to participate in the initiatives they shall take. We, as you know, as a country, have for many decades now been firmly seeking a settlement of the Cyprus problem and the participation of all those who can play a positive role and contribute to its resolution.

"The United States is, obviously, one of those countries, which can play a role, and has repeatedly announced it would undertake a decisive initiative. Let them undertake it. We shall assess the content of the initiative and, of course, if we can cooper ate with them for the advancement of a solution to the Cyprus problem that is just, viable and lasting, then we shall do so."

Asked whether he would discuss Turkey's relations with the European Union with his European counterparts, Mr. Pangalos said he expected the EU Council to demand a reply regarding human rights and the Cyprus problem from Ms. Ciller.

"Ms. Ciller has promised to give the European Union presidency an answer. She has yet to give it," Mr. Pangalos said, noting a recent European Parliament Resolution to freeze EU funding to Turkey.

Mr. Pangalos is due to meet with 17 Foreign Ministers from various countries. He will also participate in the "European Week," which includes meetings between EU ministers and their counterparts in the United States and Russia.

[4] Pangalos, Mihailidis stress good co-operation between Greece, Cyprus

Athens, 25/09/1996 (ANA)

Meeting on the sidelines of the UN General Assembly yesterday, Foreign Minister Theodoros Pangalos and his Cypriot counterpart Alekos Mihailidis discussed issues of bilateral co-operation, the Cyprus problem and certain details of Prime Minister Costas Simitis' planned visit to Nicosia.

Mr. Mihailidis underlined the usefulness of bilateral co-operation. "I would like to stress once again that the very close co-operation which we have had in the preceding period has yielded significant results in the whole cause of Cyprus, the promotion o f our national issue, in efforts for Cypriot membership of the European Union and in defense matters...

"We are particularly happy because the results of the (Greek) elections maintain the road open for the continuation of this close co-operation between the two countries, which is very useful for the national cause of Cyprus," he said.

Asked if he could confirm the prime minister's visit to Nicosia scheduled for October 1, Mr. Pangalos replied, "It has been planned so".

The Greek foreign minister was scheduled to meet with US State Department Secretary Warren Christopher late last night Greek time.

[5] The new cabinet

Athens, 25/09/1996 (ANA)

Prime Minister: Costas Simitis

Interior, Public Administration and Decentralization Minister: Alekos Papadopoulos
Undersecretaries: Lambros Papadimas, Anastasios Mantelis

National Defense Minister: Akis Tsohatzopoulos
Under-secretary: Dimitris Apostolakis

Foreign Minister: Theodoros Pangalos
Alternate Foreign Minister: Giorgos Papandreou
Under-secretary: Christos Rozakis

National Economy Minister: Yiannos Papantoniou
Undersecretaries: Christos Pachtas, Alekos Baltas

Finance Minister: Yiannos Papantoniou
Undersecretaries: Giorgos Drys, Nikos Christodoulakis

Development Minister: Vasso Papandreou
Undersecretaries: Mihalis Chrysohoidis, Anna Diamantopoulou

Environment, Town Planning and Public Works Minister: Costas Laliotis
Undersecretaries: Theodoros Koliopanos, Christos Verelis

Education and Religious Affairs Minister: Gerassimos Arsenis
Under-secretary: Ioannis Anthopoulos

Agriculture Minister: Stefanos Tzoumakas
Undersecretaries: Dimitris Sotirlis, Vassilis Geranidis

Labour and Social Security Minister: Miltiades Papaioannou
Undersecretaries: Nicos Farmakis, Christos Protopappas

Health and Welfare Minister: Costas Geitonas
Undersecretaries: Manolis Skoulakis, Theodoros Kotsonis

Justice Minister: Evangelos Yiannopoulos

Culture Minister: Evangelos Venizelos
Under-secretary (Sports): Andreas Fouras

Merchant Marine Minister: Stavros Soumakis

Public Order Minister: Giorgos Romaios

Macedonia-Thrace Minister: Philippos Petsalnikos

Aegean Minister: Elissavet Papazoi

Transport and Communications Minister: Haris Kastanidis
Under-secretary: Manolis Loukakis

Press and Media Minister: Dimitris Reppas

Under-secretary to the Prime Minister's Office: Giorgos Paschalidis.

[6] Greek election results victory 'for whole of Europe' Vranitzky says

Athens, 25/09/1996 (ANA)

In statements to the ANA in Vienna, Mr. Vranitzky said that Mr. Simitis, with his cautious policy, underscored "Greece's extremely important role on the southeastern borders of the European Union."

Mr. Vranitzky expressed the view that Mr. Simitis would continue to play this role "in the spirit of detente."

The Austrian chancellor went on to say that Mr. Simitis' economic policy would secure for Greece a fitting place in the Europe of the future. "The reforms of the Greek prime minister, even though they may appear tough to Greeks, will ensure that Greece in the long term does not lag behind the other EU countries in the economic, public finances and monetary sectors," Mr. Vranitzky told the ANA.

In a telegram last night, Mr. Vranitzky congratulated Mr. Simitis on his "exceptionally impressive electoral victory," expressing his belief that the Greek premier would lead Greece into Economic and Monetary Union (EMU) with the same energy and dynamism which took him to electoral victory.

[7] Archbishop's of America, Cyprus congratulates Simitis

New York, 25/09/1996 (ANA)

Orthodox Archbishop of America Spyridon on Monday sent a cable of congratulations to Prime Minister Costas Simitis on his re-election.

"It is with special joy that I learned of the results of yesterday's election, and I heartily congratulate you on your victory.

"I would like to express my deep joy that Greece, through free and democratic procedures, has acquired a new government that will lead the country in the next four years," the Archbishop said in his message.

Archbishop Chrysostomos of the Autocephalus Cyprus Church also sent a congratulatory telegram to Mr. Simitis yesterday.

Chrysostomos expressed certainty that Mr. Simitis would give priority "to the struggle for the liberation of the occupied parts of Cyprus, a Greek island of 3,000 years."

President of the Greek American National Council, Th. Spyropoulos also sent a telegram congratulating Mr. Simitis on his re-election and wishing him success in his work.

[8] ND deputies ask Evert to consider resignation decision

Athens, 25/09/1996 (ANA)

Turmoil continues in the main opposition New Democracy party following the resignation of party leader Miltiades Evert after ND's defeat in the elections and the announcement of two candidacies for the party's leadership.

Deputies loyal to Mr. Evert are gathering signatures to persuade him to reconsider his decision and to seek the party's leadership again.

Many deputies signing the relevant document visited Mr. Evert yesterday morning and briefed him on their intentions. Some of them claim that he has agreed with this move, while others said Mr. Evert is insisting on his decision not to seek the party's leadership.

According to a scenario being promoted by senior ND members supporting Mr. Evert, if more than 60 deputies support him, he could seek the leadership and then hold a party congress to have the issue settled.

Former ND government spokesman Vassilis Manginas proposed the holding of a congress for a leader to be elected and said a transitional leader voted in by the party's body of electors should take over in the meantime.

ND spokesman Prokopis Pavlopoulos said the announcements of Stefanos Manos' and Dora Bakoyianni's candidacies were premature.

Former Prime Minister Tzannis Tzannetakis has supported the idea of a transitional leader being elected by the body of electors and a new leader being elected at a party congress.

Eight Central Committee members have addressed a letter to Mr. Evert, Ioannis Varvitsiotis and Stavros Dimas in support of this view, saying this will safeguard party unity.

Meanwhile, deputies and former deputies have been visiting ND honorary leader and former Prime Minister Constantine Mitsotakis, and have called on him to submit his candidacy for the party's leadership.

Commenting on the move by deputies to collect signatures, circles close to Mr. Mitsotakis said that when he resigned in 1993 he did not announce his candidacy again, and that he removed his personal office from the party's headquarters so as not to intervene in internal party processes.

It is believed that the party's leadership will not be sought by Mr. Varvitsiotis and Constantinos Karamanlis in the event that Mr. Evert announces his candidacy.

Meanwhile, Mr. Manos and his associates are displeased with the move by the deputies loyal to Mr. Evert, maintaining that "such a logic will have victors and vanquished and there will be the risk of a split in the party."

However, in a statement to Antenna Radio, Mr. Mitsotakis said democratic processes anticipated by the party's charter safeguard party unity and there is no risk of a split whatsoever.

Former minister Giorgos Souflias spoke by phone with both Mr. Evert and Mr. Mitsotakis yesterday and met with Mr. Varvitsiotis.

Mr. Souflias said "I have started a round of consultations for the party's interests and statements I had announced beforehand will be made tomorrow."

Mr. Souflias had implied on Sunday that he would seek the party's leadership.

ND's Executive Committee is to convene at 10 a.m. today to begin processes aimed at electing prefectural committee representatives.

[9] Direct foreign investment in Greece declines, UNCTAD confirms

Athens, 25/09/1996 (ANA)

The United Nations Conference on Trade and Development (UNCTAD) annual report on direct foreign investment (DFI), released by the UN bureau in Athens yesterday, confirmed a downward trend in DFI in Greece in recent years.

Contrary to the stock exchange sector, where the inflow of foreign funds for investment in state securities remains a dynamic trend, the report finds that DFI fell last year to US$ 890 million, from US$ 981 million in 1994. While it amounted to US$ 977 million in 1993, it may be noted that DFI amounted to a steady annual average above one billion dollars in the three years 1990-92.

UNCTAD estimates that total DFI in Greece, 1995 included, amounts to $19.143 million, higher than in other EU country. However, the presence of foreign capital follows a downward pattern overtime, with DFI as a percentage of total invested fixed capital falling from 8.7 per cent in 1991 to 8.1 in 1992, 7.7 per cent in 1993, and 7.5 per cent in 1994.

The outflow of Greek capital for productive investment abroad is considered almost zero, despite isolated instances of extroversion by Greek firms in countries such as Bulgaria, Egypt, Hungary.

[10] Neogal passes into control of dairy producers

Athens, 25/09/1996 (ANA)

The NEOGAL dairy industry in Drama is now fully owned by 2,000 dairy producers in the Drama and Kavala prefectures after the union of dairy producers purchased the 60 per cent share possessed by the Agricultural Bank of Greece (ATE)

The industry is already proceeding with modernizing mechanical and building installations, spending 863 million drachmas, director Manolis Naltsatsiadis told the Athens News Agency (ANA) yesterday.

Half the amount has been provided from Community funds, 40 per cent from the participation of the union of Kavala and Drama dairy producers and the remaining 10 per cent from state subsidization.

[11] Greek football teams disqualified from UEFA Cup

Athens, 25/09/1996 (ANA)

Both Greek teams participating in the UEFA Cup last night were disqualified.

Olympiakos drew 2-all at home with Hungary's Ferencvaros, having lost the away match 1-3.

Panathinaikos narrowly missed qualification, conceding a second goal three minutes into injury time to Legia in Warsaw, and having won the first leg at home 4-2.

[12] President to visit Finland

Athens, 25/09/1996 (ANA)

In addition to Helsinki, Mr. Stephanopoulos will also visit Kuopio, the seat of the Orthodox Archbishopric of Carelia and All Finland.

End of English language section.