Athens News Agency: Daily News Bulletin in English, 98-07-08

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Athens calls latest Turkish demand over islands' demilitarisation 'unacceptable'

[02] First local gov't elections after reforms on October 11

[03] Austrian FM to present Vienna's EU priorities in Athens

[04] Tsohatzopoulos details Athens'objections to military solution in Kosovo

[05] Gen. Tzoganis meets with Hungarian counterpart

[06] Street named for poet Seferis in Izmir district

[07] Greek Parliament delegation in Algeria

[08] Simitis meets Portuguese counterpart Guterres in Lisbon

[09] US Pentagon on Tsohatzopoulos visit

[10] 'Olympic Cities' concept discussed between Samaranch, Avramopoulos

[11] Kaklamanis visits Shanghai

[12] V. Papandreou calls for DEH crises management committee

[13] Government repeats determination to privatise

[14] Gov't to release urban transport overhaul plan

[15] Greek equities jump 2.59 pct in bank-led buying spree

[16] Greeks lowest paid in EU, Eurostat says

[17] Two domestic engineering contractors merge

[18] Aspis Bank launches new housing product

[19] Greek trade board holds EU-funded seminar in Russia

[20] Maillis buy-out of Spain's Incoplastic

[01] Athens calls latest Turkish demand over islands' demilitarisation 'unacceptable'

Athens 08/07/1998 (ANA)

The demand was contained in a demarche handed to Greece's ambassador in Ankara on Monday.

In Athens, government spokesman Dimitris Reppas dismissed the demand as "historically unacceptable and groundless", particularly in view of "the behaviour of Turkey's leadership, which once again dynamites the relationship between the two countries".

By adopting this practice, Mr. Reppas said, Turkey is not contributing to peace and stability in the region and is compromising itself. Noting that Ankara had not honoured past commitments, the government spokesman said Athens could not remain indiffere nt and had no choice but to organise its defence.

Replying to press questions, Mr. Reppas said he did not know if Turkey had communicated the demarche to international organisations.

Foreign ministry : In later statements, a Greek foreign ministry spokesman said the Turkish demand was "apparently made for domestic consumption."

The spokesman said Ankara had often sought to create and maintain a climate of tension.

This policy, he added, constitutes a violation of agreements and commitments which Turkey has recently undertaken, not only towards Greece but also towards either countries and international organisations. He referred to the Madrid communique of July 1997 and the agreement for implementation of confidence-building measures (CBMs) in the Aegean.

Tsohatzopoulos : WASHINGTON (ANA - M. Savva) - On his part, National Defence Minister Akis Tsohatzopoulos said yesterday from the US that Ankara's idea to lodge a verbal protest with Athens over the presence of military forces on eastern Aegean islands by invoking the Lau sanne Treaty "was unfortunate."

Speaking in Washington, where he is on an official visit, Mr. Tsohatzopoulos said it was "original" that a country, which "officially ignores its commitments emanating from international law and international treaties, is attempting to exploit the incre ased defence capacity on the Greek islands to shun its own responsibilitiesIwhich created this capacity."

"Turkey itself has repeatedly made it clear that it is questioning the status quo in the Aegean. Therefore, when a country questions the national sovereignty of its neighbour, according to what logic will it demand the principles of the UN safeguarding the right to self defence not to have effect," he said.

"Such a move would be tenable in the event that Turkey had taken the political decision to stop doubting and threatening Greece, its sovereign rights and security and stability in the region. In any case, this would help Turkey a great deal and its pros pects for the European Union, since partners have set conditions for an improvement in its relations with Europe," he added.

Turkey wants islands' demilitarisation : ANKARA (ANA - A. Kourkoulas) - Meanwhile, the Anadolu News Agency yesterday reported that the Turkish government resurfaced to the US and Greek embassies the issue of demilitarisation of the Aegean islands last week.

Citing unidentified government sources, Anadolu reported that the Turkish foreign ministry called on Washington to cancel a scheduled visit of the US Navy's 6th fleet to the island of Rhodes.

Citing the same sources, Anadolu noted that the Turkish foreign ministry did not receive answers on the issue by other Washington or Athens. Well- informed sources said that neither the Greek ambassador to Ankara, Dimitris Nezeritis, nor any other member of the Greek embassy in Ankara were called to the Turkish foreign ministry to receive the demarche.

Finally, it should be noted that the Turkish foreign ministry has not made any relevant announcements.

ND : On his part, main opposition New Democracy spokesman Aris Spiliotopoulos said Ankara is ignoring the right of every nation to self-defence with its audacious announcements, "which are devoid of any legal basis..."

He also said Turkey is attempting to create a climate of tension in the region.

Athens News Agency

[02] First local gov't elections after reforms on October 11

Athens 08/07/1998 (ANA)

The ministry has sent instructions for election procedures detailing the electoral procedure.

The new code provides for the election of community delegates (paredroi) to represent, at the municipal council, outlying settlements within the new municipalities' responsibility.

Such communities will also elect local councils ranging from 3 to 7 members to advise the municipal council on a community's issues.

Furthermore, the new elections manual will be printed by July 20.

The ministry also announced that repeat elections for those municipalities, where none of the candidates has secured more that 50 per cent of the vote, will take place on Oct.18.

It should be noted that Greece's local government was divided into thousands of communities during the early part of this centurry by then premier Eleftherios Venizelos.

Athens News Agency

[03] Austrian FM to present Vienna's EU priorities in Athens

VIENNA 08/07/1998 (ANA - D. Dimitrakoudis)

During his stay in the Greek capital, the Austrian FM will meet with Foreign Minister Theodoros Pangalos and main opposition ND leader Costas Karamanlis. Before leaving Athens for Vienna, he will also give a press conference.

The Austrian foreign minister's visit is part of a customary tour by the president of the EU Council of Ministers to member-states' capitals at the beginning of every rotating presidency.

The first priorities during Austria's term include the opening of accession talks with the six countries in the first group of candidates for the EU enlargement - Hungary, the Czech Republic, Poland, Slovenia, Estonia and Cyprus.

Another priority is "Agenda 2000", introduction of the euro and the Union's policy on employment.

Other issues are likely to include internal security, the fight against organised crime as well as an active environmental policy.

Meanwhile, in a move seen as a blow to Ankara and Turkish Cypriot leader Rauf Denktash, Austrian Chancellor Victor Klima during a policy statement last week made it clear that the Luxembourg summit did not set the participation of Turkish Cypriot repres entatives as a condition for Cyprus' accession talks.

Ankara has repeatedly stated that it expects the Austrian presidency to work towards a positive change in EU-Turkish relations.

Athens News Agency

[04] Tsohatzopoulos details Athens'objections to military solution in Kosovo

WASHINGTON 08/07/1998 (ANA - M. Savva)

Mr. Tsohatzopoulos was speaking on the issues of Cyprus and Kosovo during an interview given to CNN in Washington, one of the stops on his ongoing official visit to the United States.

On the question of deployment of the Russian S-300 anti-aircraft missiles in Cyprus, Mr. Tsohatzopoulos said that if the two communities on the island republic discuss between them their common future a solution can be found.

Invoking statements by the US ambassador-designate to the UN, Richard Holbrooke, several weeks ago, Mr. Tsohatzopoulos reminded that Turkey and Turkish Cypriot leader Rauf Denktash "are not ready to discuss the common prospect of Cyprus, they do not accept the initiatives of the UN and Mr. Holbrooke, which means that the Turkish side does not want anything to change in the situation which it created by sending its occupation forces to the island 25 years ago."

"The only possibility of changing this situation is through open negotiations between the two communities under the aegis of the UN, because we are finding ourselves before a new development, the prospect of Cyprus' accession to the European Union, which we think will be of ultimate help in the future," he added.

Mr. Tsohatzopoulos was asked how Greece can see an exit from the Kosovo crisis, to which he replied:

"The only way to resolving the crisis is through political and diplomatic initiatives. The international community has good experience from resolving the Bosnian issue and we must realise that the problem of Kosovo is different. A military solution is not indicated here. The international community must pressure both sides, both (Yugoslav) President Milosevic and the 'Kosovo Liberation Army' to accept the sole political solution, which is extensive autonomy for the region without a change in borders. This is the principle which we must follow in the Balkans. There is a great background for countries in the region concerning this problem. The strategic view is for no changes in borders in the Balkans and that we must not give the right to minorities to c hange the borders in the area with force," he said.

Replying to another question on whether the time has come for direct talks with autonomists in Kosovo struggling for independence, Mr. Tsohatzopoulos said that this was a dangerous prospect because they do not want autonomy but independence.

"At the same time," he added, "President Milosevic and the 'Kosovo Liberation Army' must have the same target. If autonomy for the region is not accepted, then we are making a mistake. The sole political priority which must be promoted now is for (ethnic Albanians' leader Ibrahim) Rugova to be helped, who constitutes the elected representative of the Kosovo Albanians, not only with political positions but also with the creation of those institutions and structures which will enable autonomy in the region to function effectively."

Address at Carnegie Institute : Afterwards, Mr. Tsohatzopoulos spoke at the Carnegie Institute regarding the issue of "Southeastern European and Mediterranean Security Issues."

Former US assistant secretary of state Joe Sisco touched on the issue of the S-300 missiles and their effect on the region.

Mr. Tsohatzopoulos noted that the issue has been discussed for the last two years and that Cyprus President Glafcos Clerides postponed the arrival of the defensive weapons system for November instead of this summer, in order to give time to UN and US in itiatives.

Athens News Agency

[05] Gen. Tzoganis meets with Hungarian counterpart

VIENNA 08/07/1998 (ANA - D. Dimitrakoudis)

The two military chiefs, during their joint press conference, also spoke against the application of military means, except in the case of a last resort.

Gen. Tzoganis said that due to its proximity to Kosovo, Greece - unlike other NATO countries - must be very careful in dealing with any kind of involement.

Finally, when asked about the S-300 anti-aircraft missiles' deployment in Cyprus, he said that this is an issue for the island republic's leadership to decide, since Cyprus is a sovereign state.

Athens News Agency

[06] Street named for poet Seferis in Izmir district

IZMIR 08/07/1998 (ANA - A.Kourkoulas)

Vourla Mayor Mustafa Kapkip, who unveiled a plaque in a special ceremony, noted that the initiative not only honoured the memory of Seferis, but took place within the spirit of understanding and mutual respect for the two neighbouring peoples.

The event was aslo attended by a large crowd, including members of the local community.

A delegation from Greece also attended the ceremony, including Seferis' niece, Despoina Mylona.

Greek Consul in Izmir Andreas Fryganas said the naming of a street after Seferis "showed that cultural values can be higher than political confrontations, especially in the current period of tension..."

Athens News Agency

[07] Greek Parliament delegation in Algeria

Athens 08/07/1998 (ANA)

The visit is conducted within the framework of inter-Parliamentary exchanges and the strengthening of Greek-Algerian relations.

The delegation headed by deputy Elias Papadopoulos will meet with several Algerian officials.

Athens News Agency

[08] Simitis meets Portuguese counterpart Guterres in Lisbon

LISBON 08/07/1998 (ANA)

Mr. Simitis stated afterwards that "we discussed bilateral issues and EU matters, 'Agenda 2000' and institutional issues."

"We have the same opinions and common goals. We both wish for European cohesion, an agricultural policy which will help Mediterranean countries," he added.

The Greek prime minister also noted: "we want the continuation of financing by EU structural funds...as during the next few years many important discussions will take place on these issues."

Mr. Simitis said that in regards to Cyprus and Greek-Turkish relations, both he and Mr. Guterres believe that international law should prevail.

Referring to Kosovo, Mr. Simitis said that efforts should aim at avoiding war and that any intervention in the Yugoslav province should be decided by the UN Security Council in advance.

On his part, Mr. Guterres said "Portugal is very positive toward enlargement. We believe that enlargement is a necessary element of the European structure. We agreed totally on the decisions which have been arrived at for the initiation of accession talks with the six candidate-countries, including Cyprus."

Earlier, Mr. Simitis yesterday represented Greece at events organised in the country's honour by "Expo '98".

Yesterday was "Greek Day" at the world expo, with two events scheduled, including dedications to events celebrating the sea.

"Although Greece and Portugal are at the furthermost reaches of European Union, they are connected by a common past and a common future: the sea," Mr. Simitis said in a brief speech opening the event.

"The myth has it that Lisbon was established by Odysseus. This shows that the Greeks are a people who love the sea. It also shows that we were in contact back then," Mr. Simitis said.

Mr. Simitis spoke of the need for a "careful" exploitation of marine resources, making full use of planning and the latest technology.

He was due to later meet with his Portuguese counterpart Antonio Guiterres before attending, along with the Greek delegation, a concert by the Greek Lyceum of "Songs of the Sea."

Athens News Agency

[09] US Pentagon on Tsohatzopoulos visit

WASHINGTON 08/07/1998 (ANA - T. Ellis)

"I think they (the two men) have created a very good relationship and they are going to build on it", the Pentagon spokesman said.

Mr. Tsohatzopoulos is to discuss issues related to Kosovo and NATO military options, confidence-building measures and de-escalation of tension in the Aegean as well as Bosnia.

According to Mr. Bacon, the two defence ministers' discussions are also expected to touch on Cyprus and ways that the two countries - US and Greece - can work together to reduce tension.

Athens News Agency

[10] 'Olympic Cities' concept discussed between Samaranch, Avramopoulos

Athens 08/07/1998 (ANA)

Athens Mayor Dimitris Avramopoulos, who is promoting the idea, had talks on the issue yesterday in Lausanne with the International Olympic Committee (IOC) President Juan Antonio Samaranch.

"It is an importnat idea...this organisation could be established within the next few weeks," Mr. Samaranch said.

An inaugural meeting will be held in Athens and the new association will aim at developing relations between 'Olympic' cities.

Athens News Agency

[11] Kaklamanis visits Shanghai

Athens 08/07/1998 (ANA)

"What is being achieved at present in Shanghai and China in general is great progress. And I hope it is continued and completed to enable this great country to contribute to the consolidation of international stability and peace with its creative and peace-loving policy," he said in reply to an address by the president of the city's National Assembly.

He said that new China holds an important position in the world and constitutes a pole of balance strengthening the development of regional cooperation to a considerable degree, which constitutes a guarantee for a safer course of humanity towards a better future.

In welcoming Mr. Kaklamanis, the president of the permanent committee of the People's National Assembly of Shanghai said that friendly relations linking the Chinese and Greek people are supplemented to a great degree through personal contacts, primarily when carried out at a high level.

Athens News Agency

[12] V. Papandreou calls for DEH crises management committee

Athens 08/07/1998 (ANA)

The request was sent to DEH in writing on Monday and follows last week's power outtages in several parts of Attica prefecture during a heatwave. In her letter, Ms Papandreou said the committee should include high-ranking administrative and technical staff, and apart from drafting an action plan to be used during emergencies, it should also work together with other state agencies.

Athens News Agency

[13] Government repeats determination to privatise

Athens 08/07/1998 (ANA)

"We cannot attain satisfactory levels of competitiveness if we fail to release the economy's strengths, which are hostage to outmoded practices and attitudes," Mr. Christodoulakis told an assembly of the Hellenic-German Chamber of Trade and Industry.

"Intervention by the government always aims to accelerate privatisation, revitalise loss-making public enterprises, reform social insurance and ensure flexibility in the labour market," he said.

The government was working to reduce the state's presence in sectors where it was not needed, and in sectors that had no strategic significance for the country. "We are the government that was courageous enough to overturn the rationale of continual expansion of the public sector. The state is not usually a good entrepreneur," Mr. Christodoulakis said.

He also called on Greek enterprises to take mergers and acquisitions seriously in order to survive in growingly competitive international markets. Smaller firms were at a disadvantage, he said.

In addition, companies should create departments to keep up to date with new technology and approaches to work in order to keep the rest of the workforce informed.

Turning to social policy, Mr. Christodoulakis said: "This has to move away from the traditional kind of philanthropic compensation for people in need and take a more active form, in order to bring people back into the workforce."

Athens News Agency

[14] Gov't to release urban transport overhaul plan

Athens 08/07/1998 (ANA)

"The first part concerns finances in terms of the state, subsidies and debt. Existing debts (of the Athens Urban Transport Organisation) are to be written off as part of the revitalisation plan".

The second part covers a restructuring and improvement in services, and the third industrial relations, Mr. Papantoniou said.

Talks are under way between employers and unions to discuss industrial relations in connection with the bill. Yesterday's meeting was attended by Transport and Communications Minister Tassos Mantelis, Labour and Social Security Minister Miltiades Papaioannou, and management representatives.

Athens News Agency

[15] Greek equities jump 2.59 pct in bank-led buying spree

Athens 08/07/1998 (ANA)

The general index ended 2.59 percent higher at 2,597.31 points with turnover at 74.8 billion drachmas. Sector indices scored gains. Banks soared 4.66 percent, Insurance rose 1.51 percent, Investment ended 0.82 percent higher, Leasing rocketed 8.0 perc ent, Industrials jumped 2.33 percent, Construction was 2.18 percent up, Miscellaneous ended 2.11 percent higher but Holding bucked the trend to end 1.23 percent off.

The parallel market index for small cap companies rose 0.78 percent.

Broadly, advancers led decliners by 144 to 97 with another 15 issues unchanged. Attica Bank, Bank of Central Greece, Ionian Invest, Commercial Invest, Teletypos, Nikas, Alte, Metka, Britania, Etma, Macedonian Mills and Ionian Hotels scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Shelman, Bank of Athens, Boutaris, Tzirakian, Sigalas, Katselis, Mediterranean, Remek, DIS and Bitros suffered the heaviest losses.

National Bank of Greece ended at 46,480 drachmas, Ergobank at 30,300, Alpha Credit Bank at 27,590, Ionian Bank at 16,790, Delta Dairy at 3,920, Titan Cement at 22,310, Intracom at 12,790, Hellenic Petroleum at 2,885 and Hellenic Telecommunications Orga nisation at 8,610 drachmas.

Athens News Agency

[16] Greeks lowest paid in EU, Eurostat says

BRUSSELS 08/07/1998 (ANA/M.Spinthourakis)

The European Union's statistics agency said that wage inequalities in Greece reflected the EU's average although the country remained at the bottom of the league in wages expressed in constant Ecu prices.

A low-paid worker in Greece earns 772 Ecus a month (in 1995 prices), an average-paid worker 996 Ecus, and a highly paid worker 2,603 Ecus. Spain ranked second from the bottom.

Luxembourg recorded the highest wages in the EU, followed by Denmark and Germany.

The biggest wage discrepancies were reported in Italy and Luxembourg. Higher paid workers (executives and specialised staff) in the two countries earned almost four times more than their lower paid compatriots, and almost three times more than average wage earners.

Wage inequalities were also major in France and Spain. The Netherlands and Sweden recorded the lowest discrepancies.

Athens News Agency

[17] Two domestic engineering contractors merge

Athens 08/07/1998 (ANA)

The new company, Etane-Evklidis SA, is expected to show a 1998 turnover of 10 billion drachmas, net pre-tax profits of 1.5 billion drachmas, and unfinished orders of around 20 billion drachmas.

The new company plans to leave the Athens Stock Exchange's parallel market for smaller cap stocks in 1999 and join the bourse's main market.

It also wants to modernise and expand domestically and abroad.

The two firms are already operating in Albania and Romania.

Athens News Agency

[18] Aspis Bank launches new housing product

Athens 08/07/1998 (ANA)

The bank also cut its rate on five-year housing loans to 11.4 percent from 11.9 percent, it said in a statement. Aspis Bank said its drive to remain competitive in housing and mortgage loans was facilitated by a general improvement in domestic money and capital markets.

Athens News Agency

[19] Greek trade board holds EU-funded seminar in Russia

Athens 08/07/1998 (ANA)

The seminar was co-financed by the European Union's executive Commission as part of its Jopp-Tacis programme.

A Greek delegation is due to visit Russia in October this year.

Athens News Agency

[20] Maillis buy-out of Spain's Incoplastic

Athens 08/07/1998 (ANA)

Incoplastic is the largest producer of plastic tape in Spain, with a plant in Barcelona and exports of 30 per cent of its production.

Through Maillis' purchase of 86 per cent of Incoplastic, the Greece-based company achieves entry into the Iberian peninsula market.

Maillis recently increased its share capital by 13 billion drachmas to fund investments at its production units in Oinofyta, Attica and Alexandroupoli as well as for possible buy-outs.

Its rate of increase in annual sales is expected to amount to 17.5 billion drachmas by 2000, when sales are expected in the region of 50 billion drachmas. Unified sales totalling 22 billion drachmas and profits of 3.6 billion drachmas are expected in 1998.

Athens News Agency

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