Athens News Agency: Daily News Bulletin in English, 98-07-09

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

CONTENTS

[01] Tsohatzopoulos emphasises political solution for Cyprus,not continuing arms race

[02] EFG Eurobank buys stake in Ergobank-sources

[03] Greek stocks end higher again propelled by banks

[04] Gov't soon to tender two banks - sources

[05] Government begins planning 1999 budget

[06] Greece seeks closer transport, communications ties with Balkans

[07] Government plan to overhaul urban transport for release end-July

[08] Greek, EU officials meet to debate combatting unemployment

[09] Conference on peace, development to be held in Athens Sept

[10] Altec buys out Unisoft

[11] OTOE general assembly discusses recent Ionian strike

[12] ND's Alogoskoufis criticises gov't on economy

[13] European Industrial Associations' GMs meet in Loutraki

[14] Prices of 87 pharmaceuticals change

[15] Greek military chief confers with Hungarian counterpart in Budapest

[16] Greek, Portuguese culture ministers meet in Lisbon

[17] FM leadership meets with Cyprus' Vassiliou

[18] Gov't on FYROM relations

[19] Kaklamanis continues tour of China

[20] Lesvos police ticket a second cyclist

[21] Moscow exhibition on Athens

[22] Inquiry into police corruption continues

[23] Court sentences 4 illegal immigrant smugglers

[24] Five charged with smuggling foreign women

[01] Tsohatzopoulos emphasises political solution for Cyprus,not continuing arms race

WASHINGTON 09/07/1998 (ANA - M. Savva/Reuters)

"The problem is not the strengthening of weapons systems on Cyprus. The problem we should be discussing is the resolution of the Cyprus issue," he stated at a joint press conference, and after talks with his US counterpart William Cohen at the Pentagon.

He stressed that Cypriot President Glafcos Clerides' proposal for demilitarisation of the island republic offered the best chance for a solution.

"The island is indeed highly militarised. A continuously increasing military presence is noted in its (Turkish occupied) northern part, which actually fuels tensions.

For us there is only one solution: It is the policy of demilitarisation which has been proposed by President Clerides and will provide the opportunity to reduce and abolish the weapons systems," he said.

On his part, Mr. Cohen said that during their talks they discussed ways of reducing tension, including the idea for the establishment of a no-fly zone for Greek and Turkish aircraft and a possible cancellation of the Russian S- 300 missiles ordered by Cyprus.

"The no-fly zone is one possibility that could be explored, but we have not made any determination on what the results should be in terms of how we achieve this reduction in tensions," the US defense secretary said.

Mr. Tsohatzopoulos said that if Turkey agreed to the demilitarisation "possibly one could envisage the non-installation of the S-300 system."

"If Turkey refused to accept a 'no-fly zone' as part of even a partial demilitarisation, it's very, very difficult for the Cypriot government to unilaterally move towards disarmament," he added.

The Cypriot government has postponed the planned delivery from Russia of the anti-aircraft missiles until November to give more time for a solution. The deployment had been initially scheduled for the end of the summer.

Regarding the Kosovo problem, which dominated talks, Mr. Tsohatzopoulos insisted that only a solution that will arise as a result of diplomatic efforts had a chance of bringing permanent results and stability to the broader region.

Mr. Cohen stated his support for a political solution, stressing that Washington opposed any NATO action that would mean moral and military support to the ethnic Albanian rebels in the Serbian province.

"We believe that the best solution is the diplomatic one and not the military. The latter option is the last and not the first," he stressed.

Athens News Agency

[02] EFG Eurobank buys stake in Ergobank-sources

Athens 09/07/1998 (ANA)

Neither bank immediately confirmed the report.

According to market sources, EFG Eurobank bought around 12 percent of stock from Lazaros Efremoglou, a major shareholder of Ergobank.

Mr. Efremoglou had clashed with Ergobank's board over its strategic choices and was seeking a buyer, the same sources said.

The stake in Ergobank owned by Mr. Efremoglou,a former New Democracy party deputy, is believed to be worth more than 100 billion drachmas.

EFG Eurobank recently surprised the market by offering 93 billion drachmas payable over four years for Cretabank, which the government tendered as part of its privatisation plan.

The offer was roughly double that of two other bidding banks. The official outcome of the tender has yet to be announced.

Athens News Agency

[03] Greek stocks end higher again propelled by banks

Athens 09/07/1998 (ANA)

The general index ended 1.20 percent higher at 2,628.40 points, sharply off the day's highs, which showed gains of more than 2.70 percent. Trading remained heavy with turnover at 80 billion drachmas.

Sector indices scored gains. Banks rose 1.91 percent, Insurance jumped 2.49 percent, Investment soared 4.12 percent, Leasing jumped 7.98 percent, Industrials increased 0.82 percent, Miscellaneous ended 0.28 percent up, Holding rose 0.26 percent, but Construction bucked the trend to end 0.21 percent off.

The parallel market index for small cap companies ended 0.86 percent down. The FTSE/ASE 20 index rose 1.46 percent to 1,595.88.

Broadly, advancers led decliners by 122 to 118 with another 15 issues unchanged.

Ergobank, Bank of Piraeus, Macedonia-Thrace Bank, Attica Bank, Bank of Central Greece, Alpha Leasing, ETBA Leasing, Ionian Hotels, Rokas, Britania, Etma, Ergodata, Commercial Invest, Ionian Invest, Piraeus Leasing and Phoenix scored the biggest percenta ge gains hitting the daily 8.0 percent limit up.

Hellenic Petroleum, Development Invest, Zampa, Thessaliki, Babyland, Dane, Eskimo, Ridenco and General Warehouses suffered the heaviest losses.

National Bank of Greece ended at 47,150 drachmas, Ergobank at 32,724, Alpha Credit Bank at 27,300, Ionian Bank at 16,700, Delta Dairy at 3,800, Titan Cement at 22,900, Intracom at 13,050, Hellenic Petroleum at 2,655 and Hellenic Telecoms at 8,480 drachmas.

Athens News Agency

[04] Gov't soon to tender two banks - sources

Athens 09/07/1998 (ANA)

A tender for Bank of Central Greece, a subsidiary of Agricultural Bank of Greece, is expected to be called within days.

The sale, which should be completed by the end of July, will be effected through the Athens Stock Exchange, the sources said.

Agricultural Bank holds around 55 percent of its subsidiary's stock. A dispute is still pending with past shareholders that could complicate the sale, but the government may use legal means to safeguard the rights of any new buyer, the sources said.

A tender for the sale of Ionian Bank, whose main shareholder is Commercial Bank of Greece, is expected to be called next week with the sale also being effected through the Athens bourse.

Commercial Bank is expected to sell 51 percent of the Ionian shares it holds, retaining around 4-5 percent, the sources said.

The deadline for bids is likely to be the end of August. JP Morgan will carry out a valuation of the bank, they said.

Athens News Agency

[05] Government begins planning 1999 budget

Athens 09/07/1998 (ANA)

"This was the first meeting on the budget," Finance Undersecretary George Drys told reporters after the meeting at the national economy ministry.

Also discussed was implementation of the 1998 budget, including estimates of revenue, ministry sources said.

Athens News Agency

[06] Greece seeks closer transport, communications ties with Balkans

Athens 09/07/1998 (ANA)

Mr. Mantelis will head a team of senior executives from state enterprises that fall under his ministry's jurisdiction. He is scheduled to hold talks with Serbian President Milan Milutinovic, Yugoslav federal Prime Minister Momir Bulatovic, and the Yugos lav ministers of transport and communications.

The visit aims to review cooperation between the two countries in transport and communications and sign a new agreement on road transport.

Also due for debate are air traffic in the region, promoting rail transport, and developing telecommunications.

Athens News Agency

[07] Government plan to overhaul urban transport for release end-July

Athens 09/07/1998 (ANA)

Many of the debts to be written off are book entries and compound interest on old loans, Mr. Reppas said in reply to a reporter's question.

The government wished urban transport to retain its social nature and keep ticket prices down. As a result, the government, which had allowed OASA to resort to borrowing, was burdened with the debt, the spokesman said.

"This is a commitment, and not a sudden, arbitrary measure. It also shows one dimension of the government's social policy," he said.

The restructuring plan contained changes in rules governing industrial relations that would cut labour costs and improve services.

"The idea is to link transport to local government to better serve the public," Mr. Reppas said.

The planned revitalisation was not linked to Athens bourse entry, he said.

Mr. Reppas also charged past New Democracy (ND) governments with throwing urban transport to private concerns and increasing its debts.

This was the first time a concerted plan to overhaul OASA had been attempted with the backing of workers, he said.

New Democracy lashes out at gov't over urban transport : The main opposition New Democracy party yesterday criticised the government for extravagance, mismanagement and party favouritism in its debt write-off for OASA.

"After renationalising urban transport first to suit the whims of the trade union and party nomenclature, after allowing, through mismanagement, the creation of huge losses and debts, they are now appearing to throw almost one trillion drachmas down the drain, with no justification, no explanation, and no shame towards Greek taxpayers," ND leader Costas Karamanlis said in a statement.

He said the amount was equivalent to two Metros, more than 50 ultramodern hospitals and innumerable schools.

Mr. Karamanlis said that 700 billion drachmas had already been squandered on Olympic Airways and over 200 billion drachmas on agricultural cooperatives. ND spokesman,Akis Spiliotopoulos later char-ged the government with wasting around 900 billion of ta xpayers' money on the debt scheme in order to keep ruling PASOK party supporters in place.

ND deputy George Alogoskoufis, who is responsible for the party's economy section, said a debt write-off was unavoidable due to the state of OASA's finances. The point was to avoid new debts, he said.

Athens News Agency

[08] Greek, EU officials meet to debate combatting unemployment

BRUSSELS 09/07/1998 (ANA)

The government officials were from the labour ministry, the state-owned Manpower Employment Organisation and the National Labour Institute, which belongs to the General Confederation of Greek Labour.

The officials met to discuss the government's national employment plan, focusing on youth.

The plan includes proposals on backing investment proposals by small and medium sized enterprises and regular exchanges of information with EU organisations.

Athens News Agency

[09] Conference on peace, development to be held in Athens Sept

Athens 09/07/1998 (ANA)

"Athens '98" is the fourth such meeting, organised this year by the Panteion University of Social and Political Science.

Topics of discussion will include national defence and peace, major infrastructure projects, development and the global economy, social problems in the contemporary world, culture and sport and the role of the citizen in the 21st century.

The official opening of the meeting will be conducted by Archbishop of Athens and All Greece Christodoulos on September 11 at the Pnyx hill.

Remaining sessions will be held at the Astir Palace hotel complex in Vouliagmeni.

Speakers on the first day include former Israeli prime minister Shimon Peres, former French first lady Francoise Mitterrand, and former Cypriot president George Vassiliou.

Among the speakers are Greek deputies, members of the European Parliament and academics.

Foreign Minister Theodoros Pangalos will address the meeting's official dinner on Sunday, September 13. Also due to address the dinner is Dieter Huffercamp, a representative of Germany's central bank, the Bundesbank. The meeting is supported by the European Parliament, backed by the International Herald Tribune and the English edition of Kathimerini.

It is sponsored by the newspapers Kerdos and Hrima, Hellenic Telecommunications Organisation, Commercial Bank of Greece, the Onassis Foundation, Bank of Piraeus, the Foundation of the Hellenic World and others.

Athens News Agency

[10] Altec buys out Unisoft

Athens 09/07/1998 (ANA)

Athens News Agency

[11] OTOE general assembly discusses recent Ionian strike

Athens 09/07/1998 (ANA)

The meeting was held amidst major confrontations between labour factions, while doubts were cast on the OTOE leadership direction.

Concern was expressed by OTOE President Dimitris Kouselas with regard to privatisation plans of state banks, placing emphasis on the safeguarding of jobs and insurance rights for employees.

Ionian employees' lengthy industrial action was seen as having both positive and negative effects.

A similar stance with GSEE was adopted by OTOE in relation to the labour relations bill promoted by the government.

The meeting was not attended by Ionian Bank unionists, who noted in a strongly worded announcement that the "OTOE president was provocative".

Athens News Agency

[12] ND's Alogoskoufis criticises gov't on economy

Athens 09/07/1998 (ANA)

Mr. Alogoskoufis, who was referring to the government's positive assessments on the course of this year's budget and of inflation, said that the government is avoiding comment on the high nominal and real interest rates which will create problems and de viations in the budget and primarily in expenditures on interest.

Referring to inflation, he said that it remains at levels above 5 per cent although the drachma's value has increased by 7.42 per cent against the Ecu and that this does not justify government optimism.

Mr. Alogoskoufis also said the government must address cutbacks in consumer public expenditures more drastically.

Athens News Agency

[13] European Industrial Associations' GMs meet in Loutraki

Athens 09/07/1998 (ANA)

Proceedings, which include tours and social activities for participants, will last until Saturday.

Finance Undersecretary Nikos Christodoulakis will deliver a speech on Friday.

Athens News Agency

[14] Prices of 87 pharmaceuticals change

Athens 09/07/1998 (ANA)

The prices of a remaining 29 pharmaceuticals will decrease by up to 7 per cent to enable them to be included in the list of prescribed medicines.

Athens News Agency

[15] Greek military chief confers with Hungarian counterpart in Budapest

BUDAPEST 09/07/1998 (ANA)

The two military chiefs were speaking at a joint press conference in the Hungarian capital during Gen. Tzoganis' three-day official visit to the country.

Replying to reporters' questions on Nicosia's plans to purchase and install Russian-made S-300 anti-aircraft missiles on Cyprus later in the year, Gen. Tzoganis said there had been too much fuss over the issue.

He said the planned purchase was a commercial deal between Cyprus and Russia concerning the defence of the divided island republic.

Gen. Tzoganis stressed that the missiles were purely defensive in nature and that Cyprus, like any other country, had every right to improve its defences.

Referring to arms purchases by Greece and Turkey, Gen. Tzoganis said Athens had no desire to enter into an arms race but had to ensure its defence and security. He added that the purchase of a number of military aircraft was necessary in order to modern ise the country's armed forces. Asked about Greece's stance on the possibility of NATO deciding military intervention in the Serbian province of Kosovo, the Greek military chief noted that Alliance decisions were taken on a collective basis by t he member- states.

He underlined, however, that Greece was very close to Kosovo and therefore was very careful about any form of involvement. The Greek government, he added, "would take the right decision at the right moment."

Athens News Agency

[16] Greek, Portuguese culture ministers meet in Lisbon

LISBON 09/07/1998 (ANA)

The two men discussed the transfer of ogranisational experience from Lisbon's "Expo '98" for the 2004 Olympics, as well as the planning of the UNESCO-approved "cultural olympics."

They also discussed the future of the "Cultural Capitals of Europe" events, as Porto will be the cultural capital in 2001.

Finally, the Greek minister invited his counterpart to participate at a Euro-Mediterranean conference set for September on Rhodes.

Athens News Agency

[17] FM leadership meets with Cyprus' Vassiliou

Athens 09/07/1998 (ANA)

"On the contrary, Cyprus, with its stand has shown all the ways for a peaceful resolution of the Cyprus problem, demilitarisation, and a reduction in tension, to which Turkey has not responded," he said after a meeting in Athens with George Vassiliou, head of the Cypriot negotiating team at the EU accession talks and former president of the island republic.

The meeting, in which participants also included Foreign Undersecretary Yiannos Kranidiotis and foreign ministry officials, focused on the issue of the harmonisation of Cypriot legislation to the acquis communautaire.

Before the meeting, and responding to questions, Mr. Vassiliou said tension on the island was on the way to de-escalation, and that no country of the European Union was seriously concerned over Turkey's effort to create tension. He added that he hoped a recent letter by Cypriot President Glafcos Clerides to UN Secretary-General Kofi Annan, reiterating the proposal for the island's demilitarisation, had helped in defusing the tension.

Also responding to questions, Mr. Kranidiotis said he hoped Turkey would realise that commencement of dialogue for a just and viable solution to the problem was to its own interest.

"What I wish to draw attention to is that we now have two positive UN resolutions on Cyprus which provide a good basis for the assumption by the international organisation and the international community of an initiative on Cyprus. An initiative not onl y in the political sector for the resumption of inter-communal talks but also for the commencement of a procedure that will lead to demilitarisation through a reduction in forces and weaponry," he said.

Athens News Agency

[18] Gov't on FYROM relations

Athens 09/07/1998 (ANA)

Replying to reporters' questions, government spokesman Dimitris Reppas said Athens had already taken several steps aimed at improving relations with FYROM, and expected similar steps from Skopje.

Mr. Reppas underlined that negotiations on the issue of the name of the neighbouring state were being conducted under UN auspices and not on a bilateral level.

ND reaction : On his part, main opposition New Democracy spokesman Aris Spiliotopoulos later noted that Mr. Reppas' statements on the FYROM issue, and especially concerning its name, create a problem for the foreign minister and also for the premier.

Mr. Spiliotopoulos said that Mr. Reppas did not provide political cover for Foreign Minister Theodoros Pangalos' statements, namely, that Greece would accept the use of the term "Macedonia" as a geographical location.

Athens News Agency

[19] Kaklamanis continues tour of China

Athens 09/07/1998 (ANA)

The Chinese official underlined that Mr. Kaklamanis' visit and talks in Beijing reaffirmed existing friendly relations between the two peoples.

Mr. Kaklamanis, addressing his counterpart, noted that Xian is known not only for its ancient history but also for its role during the Chinese revolution.

He also invited Mr. Zianguo to officially visit Greece.

Today, Mr. Kaklamanis is expected to tour the Tsendu region, where he will meet with local officials.

Athens News Agency Chinese military delegation on official visit

Athens 09/07/1998 (ANA)

The two men referred to the friendly relations between their countries, which they said were continuously improving to the benefit of the two peoples but also to stability and peace in the region.

Lt.-Gen. Zhou arrived in Athens on Tuesday at the head of a five-member delegation.

The visit, which runs through Sunday, also includes visits to the Hellenic Air Force headquarters, the cities of Piraeus, Nafplio and Patra as well as to archaeological sites.

Athens News Agency

[20] Lesvos police ticket a second cyclist

Athens 09/07/1998 (ANA)

The first cyclist led to court on a similar charge was a 14-year-old girl injured last year by a bus while riding her bicycle.

According to reports, the Norwegian national apparently tried to register her bicycle but authorities refused her application. They reportedly cited lack of a sales receipt or any other proof of ownership for the 10-year-old bicycle.

Greek traffic code stipulates the need for all vehicles, whether engine- powered or not, to be registered, although practically all bicycles throughout Greece are presently unregistered.

Athens News Agency

[21] Moscow exhibition on Athens

Athens 09/07/1998 (ANA)

The event, entitled "Greece - The Birthplace of the Olympic Games", is organised in view of the Youth Olympics, starting in the Russian capital in a few days.

Apart from more than 50 paintings from Greek museums by Greek and European artists, to be exhibited at Moscow's History Museum, visitors will also have the chance to see a scale model of Athens' centre and daily life in 1896, during the first modern Olympics.

Athens News Agency

[22] Inquiry into police corruption continues

Athens 09/07/1998 (ANA)

Greek police force.

Eleven days ago, prosecutor Georgios Gerakis, acting on information received from the anonymous person, went to the Public Order Ministry and removed files from the State Security Department concerning the granting of Greek citizenship to foreigners.

According to the information he was given, the granting of citizenship in the cases in question had been unlawful.

On Tuesday, while sitting in his office, Mr. Gerakis received an anonymous telephone call informing him that a file had been placed in a nearby telephone booth which would be of great interest for his investigation.

Thinking that it may be a letter-bomb or something similar, the prosecutor notified the police who delivered the file to him.

According to informed sources, the file contains details of the illegal granting of citizenship to foreigners, together with the names of senior police officers, politicians and businessmen who allegedly intervened to secure the necessary papers.

As part of his investigation, Mr. Gerakis has already taken depositions from Public Order Minister George Romeos's adviser, George Florentis, while the director of Mr. Romeos' political office, Ilias Lucas, is also expected to give testimony.

ND reaction : Main opposition New Democracy spokesman Aris Spiliotopoulos said that "evidence made public notes a horrific condition of corruption in Greek Police (EL.AS)."

"It is the government's responsibility to not only let go of every effort to terrorise or influence the judicial system, but to do what it must for the total and speedy investigation of this scandal of corruption."

Finally he stated: "it is important that EL.AS be rid as soon as possible of not only every shadow, but of officers who dishonour their oath."

Athens News Agency

[23] Court sentences 4 illegal immigrant smugglers

Athens 09/07/1998 (ANA)

The four, as well as the 46 foreign nationals, were caught last Saturday outside Alexandroupoli. Police chased two of the smugglers, who were driving private cars ahead of a truck loaded with the 46 illegals.

Harilaos Agapidis, 24, Dimitra Kontokolia 31, Ilias Nikolaidis, 45 and Paschalis Tziras, 40, were also fined 9.2 million drachmas each, while the truck and a car used in the operation were confiscated.

The 46 foreigners, 23 Pakistanis, 22 Bangladeshis and one Indian, received a three-month suspended sentence. They will be deported.

Athens News Agency

[24] Five charged with smuggling foreign women

Athens 09/07/1998 (ANA)

The suspects were arrested in the areas of Eiriniko and Akritas. They were identified as Georgios Antoniadis, 36, Dimitris Pappas, 26, Savvas Karavasiliadis, 30, Polychronis Papadopoulos and Emmanuel Tzilopoulos, 46.

Athens News Agency

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