Athens News Agency: Daily News Bulletin in English, 98-07-31

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

CONTENTS

[01] Pangalos-Burns meeting focuses on Greek-US relations,Cyprus

[02] Gov't applauds Eurocourt ruling against Turkish occupation of Cyprus

[03] Tsohatzopoulos outlines policy on Cyprus, relations with Turkey

[04] Athens downplays shooting incident on Evros border

[05] ND calls Simitis, Pangalos a 'unique,dangerous couple' for nat'l issues

[06] Constantopoulos criticism over foreign policy handling

[07] Gov't says Ag Minister Tzoumakas won't be removed

[08] Greece downs Italy, Lithuania upsets US team during second day of WorldBasket

[09] Ukrainian woman's suicide attempt leads to arrest of 2 men

[10] Commission kudos, warning against Athens over 'habitats' directive

[11] Acropolis Museum re-opens

[12] Greenpeace: Thessaloniki's air highly polluted

[13] Consumer groups consider new pro basketball contract

[14] Greek stocks rise, led by National Bank of Greece

[15] EU to help fund energy centre in Athens

[16] National Mortgage Bank of Greece to renew bonds

[17] Budget excesses predicted for end of year

[18] Gov't presents bill to simplify laws on public administration

[19] Greek, Turkish firms in major joint venture

[20] EU energy commissioner to visit Thessaloniki

[21] Bank of Central Greece majority stake on bourse today

[22] Major increase in Bank of Attica pre-tax profits for first half of '98

[23] Job subsidisation programme for recovering drug addicts, ex-cons

[24] Bank of Cyprus mutual fund offshoot has assets of Dr 12 bln

[01] Pangalos-Burns meeting focuses on Greek-US relations,Cyprus

Athens 31/07/1998 (ANA)

No statements were made after the 75-minute meeting.

Government spokesman Dimitris Reppas clarified, however, that the meeting had taken place at the request of the US envoy "within the framework of contacts between Mr. Pangalos and diplomats".

According to sources, Mr. Pangalos told Mr. Burns that US initiatives on matters such as the Cyprus problem were welcome, provided they remained within the framework of international law.

A row broke out between the two NATO allies after a US official described the Turkish invasion and occupation of the northern part of Cyprus in 1974 as a "conflict" rather than an invasion of an independent UN member- state.

In subsequent statements, Mr. Pangalos raised eyebrows by saying that US President Bill Clinton's election campaign promises for a Cyprus settlement had proven to be a "gross lie".

Mr. Pangalos reportedly told Mr. Burns yesterday that his statement was not intended as a personal attack against Mr. Clinton who, he said, enjoyed the respect of both himself and Prime Minister Costas Simitis.

According to the same sources, Mr. Pangalos said he merely wished to point out that statements made by presidential candidates did not coincide with their positions after elections.

Tsohatzopoulos : Mr. Burns was later received by National Defence Minister Akis Tsohatzopoulos.

Sources said that the meeting, which had been scheduled since last Tuesday, also focused on Greek-US relations, Greek-Turkish relations and the Cyprus issue.

The same sources said the Greek defence minister briefed Mr. Burns on the incident at the Evros River between a Greek and a Turkish patrol. Other topics reportedly concerned Greece's armaments' programme and new US initiatives for a reduction of tension in the Aegean and Cyprus.

State Dept. reaction : WASHINGTON (ANA) - On his part, US State Department spokesman James Rubin told reporters yesterday that the US administration was satisfied with what Mr. Pangalos had told ambassador Burns in their meeting.

"What I am prepared to say is that we are satisfied with what Foreign Minister Pangalos had to say (regarding his earlier public statemens on US policy to Cyprus)," he said in response to questions.

He also reported that the Greek foreign minister had assured Mr. Burns that Greece wanted the strongest possible relationship with the US, and that Athens had great respect for President Clinton and other US leaders.

"The minister and ambassador Burns also agreed that they would continue to work together closely and stay in close touch. They agreed that we need to work constructively on the major issues facing our two nations," he added.

Finally, Mr. Rubin said that Greece would now welcome a visit by State Department special coordinator for Cyprus Thomas Miller in early September to discuss issues of regional importance.

Athens News Agency

[02] Gov't applauds Eurocourt ruling against Turkish occupation of Cyprus

Athens 31/07/1998 (ANA)

The Eurocourt ruled in favour of Titina Loizidou for continued violation of her right to peaceful enjoyment of her holiday property.

Mr. Papandreou also stressed the broader political significance of the ruling to the Cyprus problem, and said it proved the Court's respect for human rights.

"The ruling is particularly important, not only because it concerns the Turkish occupation of the Republic of Cyprus, but also because it proves how, the European Court of Human Rights, trying individual suits against illegal actions on the part of member-states, can arrive in judgements whose significance extends much beyond the specific individual rights and interests of the litigant," he said.

Mr. Kranidiotis said the ruling acquired special importance today when "Ankara and the Denktash regime in northern Cyprus are trying to legitimise their illegal actions and set as a condition for the resumption of the peace process the recognition of the pseudo-state".

He expressed the hope that the ministerial committee of the Council of Europe - which will be called on to decide upon the particular measures for the implementation of the ruling - will rise to the occasion and contribute to the realisation of justice in Cyprus.

Athens News Agency

[03] Tsohatzopoulos outlines policy on Cyprus, relations with Turkey

Athens 31/07/1998 (ANA)

Mr. Tsohatzopoulos said that options include support for the republic's European prospect, which no one can stop, and the strengthening of the defence capacity of the Republic of Cyprus against the foreign threat it is experiencing.

He reiterated that Greece is in favour of the island's demilitarisation, as proposed by the Cypriot president, although the Turkish Cypriot side is opposed.

Mr. Tsohatzopoulos also wondered how it can be that NATO is promoting confidence-building measures in the Aegean and is unable to supervise the no-flying zone over Cyprus, which has been proposed by the Greek side. He further said that Greece is in favo ur of a peaceful solution to the Cyprus issue, in favour of dialogue and in favour of mediation by third parties in this direction. He warned, however, that whoever wants to make a reliable initiative must be objective and not become a mediator for the one side, while demanding the unilateral disarmament of the other side.

Referring to Turkey, Mr. Tsohatzopoulos said that the continental shelf issue and the implementation of international law for the sea must be resolved through the process of the International Court. Referring to the armaments' programme, he predicted th at Greece will acquire a comprehensive air defence system in 1999.

Athens News Agency

[04] Athens downplays shooting incident on Evros border

Athens 31/07/1998 (ANA)

Military sources told ANA that the Greek patrol took cover behind trenches and returned fire. Shots came from a Turkish military outpost 300 metres away and across the Evros on Turkish territory.

No one was injured in the exchange, which lasted about 10 minutes, according to reports.

The same sources said that tension was defused when officers from both sides intervened and ordered the shooting to cease. The incident was being investigated, while Greek soldiers were placed on alert in the region.

Asked to comment on the incident, a source did not rule out the possibility that the incident was "accidental, since it ended quickly and there was no continuation", but also did not rule out that it could have been "deliberate".

National Defence Minister Akis Tsohatzopoulos expressed hope yesterday that the incident was not deliberate.

"I want to hope that yesterday's incident at Evros...was not deliberate," Mr. Tsohatzopoulos told reporters after presenting 27 graduating officers, including two women, of the Air Force Academy in Tatoi with their diplomas.

Mr. Tsohatzopoulos added that the issue was over and that it was an "isolated incident".

Government spokesman Dimitris Reppas later also described the shooting as an isolated incident. According to available information, he added, the incident "does not appear to be linked to any general activity in the area".

Mr. Reppas said the ministries of national defence and foreign affairs would take the necessary steps. He also confirmed that no one was injured in the exchange of fire.

Noting that such incidents had taken place also in the past, Mr. Reppas said "they should not take on dimensions which they do not have, unless we are absolutely positive".

Turkish claims : ISTANBUL (ANA - A. Kourkoulas) - The Turkish foreign ministry, meanwhile, announced that it believed the incident began when Greek soldiers "provoked members of a Turkish patrol with insults and then opened fire in their direction".

Turkish foreign ministry spokesman Nezati Utkan said "we strognly criticised the behaviour of the Greek soldiers" in regard with the incident on the Evros River banks.

He added that the incident "upset the tranquility and order of the region" and called on Greek authorities to "take measures, since such behaviour may have dangerous and unexpected results".

Greek response : However, a high-ranking army source investigating the incident told ANA later that he believed it had been "accidental, isolated, and without further significance".

He emphasised that contrary to a report by the Turkish Anadolu news agency, it was Turkish soldiers that fired against the Greek army patrol first.

He reported that activity in the particular area of the incident was now at "normal" levels.

Athens News Agency

[05] ND calls Simitis, Pangalos a 'unique,dangerous couple' for nat'l issues

Athens 31/07/1998 (ANA)

He added that the "premier thanks and the foreign minister curses and then begs to be pardoned," thus damaging the country's long-standing interests and prestige.

Athens News Agency

[06] Constantopoulos criticism over foreign policy handling

Athens 31/07/1998 (ANA)

He noted that in the future the exchanges would be used in diplomatic academies' and strategic study centres' curriculum as an example to be avoided for their inconsistency and irresponsibility.

Foreign Minister Theodoros Pangalos last week accused US President Bill Clinton of failing to live up to promises to promote a solution to the Cyprus issue on the basis of UN resolutions, referring to a "gross lie", and claiming Greek-Ameri-cans were considering switching funding from support for US presidential candidates to Greece's defence needs.

Athens News Agency

[07] Gov't says Ag Minister Tzoumakas won't be removed

Athens 31/07/1998 (ANA)

Mr. Tzoumakas has come under continued and heavy fire from opposition parties and the press, which have accused him of being responsible - to a greater or lesser extent - for the destruction caused by recent forest fires nationwide over the past three weeks. Mr. Tzoumakas was also soundly criticised last year for several forest fires, including a blaze that almost wiped-out Thessaloniki's urban forest.

Replying to questions, Mr. Reppas said that Mr. Tzoumakas was not the competent minister for firefighting-related issues, although charges he levelled against forestry service employees as being a "state within a state" could possibly be a matter for discussion.

On the fire scene, most forest fires were "under control" around the country, except for a major blaze on Mount Taygetos, which has reportedly caused major "environmental damage."

After the meeting with the prime minister, Mr. Tzoumakas announced that he had submitted a plan for intergrated rural development, within the framework of the Cork Summit in November 1996.

He also said discussions with Mr. Simitis touched on the course of the Second Community Support Framework (CSF) and the reform of the social security system for farmers.

According to data he presented to the prime minister, Mr. Tzoumakas said the agriculture ministry's absorption rate of CSF funds in 1997 was 122.2 percent, exceeding that of any other ministry.

Nevertheless, he said he asked the prime minister for 190 billion drachmas in additional funds in order to complete the ministry's programme.

Athens News Agency

[08] Greece downs Italy, Lithuania upsets US team during second day of WorldBasket

Athens 31/07/1998 (ANA)

Lithuania, bronze medal winners at the last two Olympics and led by forward Arturas Karnisovas with 29 points, beat a non-NBA United States team 84- 82.

The US team lost its chance to win when a three-point shot by Jimmy Oliver hit the rim with less than a second to go.

Yugoslavia overcame Russia 82-74 in overtime (68-68 in regulation time) after a see-saw match.

In the other games, South Korea nearly caused an upset, only narrowly losing to Brazil 76-73 (halftime 45-40), while Spain edged Australia 77- 76.

Puerto Rico easily overcame Japan 78-57 (halftime 39-32), while Argentina had no problem securing its second win, beating Nigeria 68-51. Canada rebounded after losing to Greece on the opening day, prevailing over Senegal 70-57.

Athens News Agency

[09] Ukrainian woman's suicide attempt leads to arrest of 2 men

Athens 31/07/1998 (ANA)

"I couldn't stand the shame and preferred to die," 22-year-old "K.J." told police in a local hospital where she was being treated for relatively light injuries.

The woman told police that two men, Constantine Zissis, 30 and 17-year-old "A.P.", both from Kastoria, had "bought" her along with another woman, a 32- year-old Moldovan national, from two unidentified foreign nationals for 2.9 million drachmas.

She said the two Kastoria men held them captive in the apartment and were planning to force them into prostitution. The victim said she and the other woman had been told they would be killed if they tried to escape.

According to reports, police forced their way into the apartment where they arrested the two suspects and freed the Moldovan woman.

Athens News Agency

[10] Commission kudos, warning against Athens over 'habitats' directive

BRUSSELS 31/07/1998 (ANA - P. Pantelis)

Greece could be fined for its failure to adopt the directive after a Eurocourt ruling against it.

Athens News Agency

[11] Acropolis Museum re-opens

Athens 31/07/1998 (ANA)

Athens News Agency

[12] Greenpeace: Thessaloniki's air highly polluted

Athens 31/07/1998 (ANA)

The group said in an announcement yesterday that the problem was a major one requiring immediate measures, since levels of air pollution frequently exceeded limits set by the European Union and the World Health Organisation (WHO) for the protection of public health.

Greenpeace proposes the implementation of a programme to reduce the number of kilometres travelled daily by vehicles in the city, abolition of the use of diesel by taxis, the immediate securing of funds for the operation of a tram network, substantial improvements to urban transport, incentives to encourage the purchase of vehicles with low fuel consumption, the use of "clean" technologies and implementation of energy-saving measures in industry and homes, as well as increased measures to protect surrou nding forests against fire and encroachment.

Athens News Agency

[13] Consumer groups consider new pro basketball contract

Athens 31/07/1998 (ANA)

Consumers' concerns were voiced regarding citizens' constitutional right to free access to television and information.

In a related development, the government is about to submit a bill dealing with the question of "whether the coverage of major public interest events (sports events in this case) by subscriber television is socially acceptable".

According to a representative of the press ministry, who attended the conference, the government will prepare lists of the major events that must be broadcast without charge. Although there are concerns regarding this list, which will be prepared with t he participation of the culture ministry, the official stressed that the government intends to control what is broadcast by cable or subscriber networks.

Joint broadcasts of major events may be another solution.

Athens News Agency

[14] Greek stocks rise, led by National Bank of Greece

Athens 31/07/1998 (ANA)

The Athens general share index ended 1.55 percent higher to finish at the day's high of 2,757.58 points. Turnover nosed up to 49.4 billion drachmas from 40 billion drachmas in the previous session.

National Bank of Greece gained 1,600 drachmas to close at 55,800 drachmas from 53,890 drachmas in the previous session.

Sector indices mostly finished higher. Banking jumped 2.50 percent, Leasing slipped 0.21 percent, Insurance surged 2.85 percent, Investment gained 0.80 percent, Industrials shed 0.06 percent, Construction rose 1.65 percent, Holding increased 1.23 percent, and Miscellaneous gained 0.75 percent.

The parallel market index for small cap companies finished 1.83 percent higher.

Of 262 stocks traded, advances led declines at 137 to 106 with 19 shares remaining unchanged.

The day's biggest percentage gainers finishing at the daily upper eight percent volatility limit were Chipita, Nikas, Bank of Central Greece (common and preferred), Katselis, Uncle Stathis, Aghios Georgiou Mills and Metka.

Corinth Pipes ended 37 percent higher in line with a higher volatility limit for new listings.

The day's biggest percentage losers were Inerga, Klaoudatos, Mouriadis, Hippotur, Benroubi, Athinea, Viosol, Hellenic Duty Free Shops, Parnassos and Eskimo.

National Bank of Greece ended at 55,500 drachmas, Ergobank at 31,800, Alpha Credit Bank at 29,390, Ionian Bank at 16,600, Commercial Bank of Greece at 28,495, Delta Dairy (common) at 3,725, Intracom (common) at 12,800, Titan Cement (common) at 23,100, H ellenic Petroleum at 2,720 and Hellenic Telecommunications Organisation at 8,250 drachmas.

Athens News Agency

[15] EU to help fund energy centre in Athens

BRUSSELS 31/07/1998 (ANA/P.Pantelis)

The centre will promote energy-saving in Athens and contribute to projects on sustainable development ahead of the 2004 Olympic Games hosted by the Greek capital.

It will also work closely with a similar centre to be established in London. The centre will receive 150,000 Ecu (about 50 million drachmas) under the EU's Sabe II programme for the three first years of its operation.

The EU is to contribute 4.95 million Ecus in 1998 to the creation of 33 new energy centres, bringing the total to 173 in the 15-nation bloc. Responsible for the project is Energy Commissioner Christos Papoutsis.

Athens News Agency

[16] National Mortgage Bank of Greece to renew bonds

Athens 31/07/1998 (ANA)

The statement said the renewal applied to bonds that had yet to complete a five-year period.

Athens News Agency

[17] Budget excesses predicted for end of year

Athens 31/07/1998 (ANA)

This is primarily due to the swelling of consumer loans and to the new salary scale, and deduced by data concerning the implementation, on a cash basis, of the 1998 budget in the first half of the year publicised yesterday by the General Accounting Office.

According to the data, the budget's first stage expenditures over the first six months, on a cash basis, increased by 12.2 per cent, while the budget had anticipated an increase in the region of 4.5 per cent. This target is difficult to achieve if the increase in first stage expenditures continues at the same rate in the second half of the year.

Figures reveal, on a cash basis, that first stage expenses (salaries, pensions, hospital fees, other benefits, subsidies to agencies and other consumer expenditures, etc.) appear to have covered 45.8 per cent of the amount which had been anticipated for the whole year in the first six months.

However, the General Accounting Office's bulletin said that "the biggest part of the budget's expenditures is paid every year in the second half of the year."

Specifically, in the first half of the year, and on a cash basis, expenditures for salaries increased by 4.8 per cent (the budget anticipated an increase of 3.9 per cent). Expenditures for pensions increased by 18.1 per cent (the budget anticipated a 5. 5 per cent increase), expenditures for hospital fees and other benefits increased by 10.8 per cent, remuneration subsidies increased by 14.1 per cent and subsidies to agencies increased by 14.9 per cent.

The largest increase was 25.7 per cent in consumer expenses, while the budget anticipated an increase of only 5.8 per cent.

The total amount of regular budget expenditures increased by 10.8 per cent in the first half of the year (the budget anticipates a 3.2 per cent increase).

Athens News Agency

[18] Gov't presents bill to simplify laws on public administration

Athens 31/07/1998 (ANA)

The bill, the Administrative Procedure Code, will aid the public and civil servants to better understand their obligations and use their rights, Mr. Papadopoulos said.

The code is part of an overall government effort to restructure public administration, making it more efficient by reducing red tape.

The minister underlined that the overhaul will resolve delays in providing services to the public, including applications given to the wrong ministry. A 60-day deadline is set for handling cases.

"The country cannot enter (European) economic and monetary union if it fails to modernise its public administration," he said.

Athens News Agency

[19] Greek, Turkish firms in major joint venture

Athens 31/07/1998 (ANA)

The "Exousia" daily said the purpose of the investment is production of cotton, fruit and vegetable seeds. Greek enterprises are already active in the neighbouring country in the form of joint ventures. However, the specific investment has a broad natur e and profits totalling US250 million are expected over the coming years.

Apart from this, cooperation between Greek and Turkish companies gives a reply to the deadlock in bilateral relations and can function as a bridge towards detente.

The cooperation agreement is aimed at the creation of three units producing seed plants and seeds, unique in their kind for the neighbouring country, which will play a considerable role in the development of the Turkish agricultural industry.

These units will operate in southern, southeastern and northern Turkey.

It is an investment whose completion is expected in 1999, when the first products will circulate in the Turkish market. The Spyrou company has been active in Turkey over the past decade, with one official saying that expected sales will amount to 250 million dollars at the end of the next five years.

Athens News Agency

[20] EU energy commissioner to visit Thessaloniki

Athens 31/07/1998 (ANA)

He will have talks with Thessaloniki Prefect Kostas Papadopoulos on a pilot proposal submitted by the prefecture to exploit geothermal energy in the Langada area in order to supply heating for public buildings. The proposal is to receive EU funding of 155 million drachmas.

Athens News Agency

[21] Bank of Central Greece majority stake on bourse today

Athens 31/07/1998 (ANA)

The package will also contain 20.1 per cent of the bank's preferred shares, which are also held by the Agricultural Bank.

Four Greek banks have shown interest in the Bank of Central Greece and have obtained a relevant file containing all its economic figures. They are the state-controlled General Bank of Greece, the Bank of Attica, Aspis Bank and the Egnatia Bank. However,the possibility of any of these banks not ultimately tabling a bid today cannot be ruled out.

The Bank of Central Greece currently has a network of 24 branch offices.

Athens News Agency

[22] Major increase in Bank of Attica pre-tax profits for first half of '98

Athens 31/07/1998 (ANA)

The increase in the bank's profits is due primarily to an increase in its operational results, a considerable increase in loans and an analogous decrease in its operational costs, as well as to the maturity of its network which has increased considerably in past years.

The bank's loans amounted to 103.5 billion drachmas (an increase of 39.5 per cent as against the first half in 1997) in the first half of 1998, deposits to 123.9 billion drachmas (an increase of 32.3 per cent and its total assets to 166.3 billion drachm as (an increase of 33.4 per cent).

Predictions amounting to 511 million drachmas were created in the first half of 1998 as against 182 million drachmas in the corresponding period in 1997 and as a result accumulated predictions amounting to 2.4 billion drachmas are more than enough to cover possible bad debts.

Athens News Agency

[23] Job subsidisation programme for recovering drug addicts, ex-cons

Athens 31/07/1998 (ANA)

The new jobs will be subsidised for a period of 36 months with 6,500 to 8, 000 drachmas per day, while an employer will also be obliged to employ a person for at least 10 months after subsidisation has ended.

Two hundred and ninety jobs will be created in either the private sector or in local government, while the remaining 60 will be self-employment positions. The programme's total cost will be 1.04 billion drachmas. Labour Minister Miltiades Papaioannou si gned the relevant decisions.

Athens News Agency

[24] Bank of Cyprus mutual fund offshoot has assets of Dr 12 bln

Athens 31/07/1998 (ANA)

The firm said in a statement that most demand in the month-old funds was focused on its Greek domestic money markets fund followed by domestic shares and fixed-income securities.

Demand was expected to rise still further with an expected decline in interest rates, the statement said.

Athens News Agency

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