Athens News Agency: Daily News Bulletin in English, 98-11-07

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

CONTENTS

[01] Gov't sees inflation falling sharply after October drop to 4.7 pct

[02] Simitis issues call for unity within PASOK

[03] 2004 Olympics 'look' focus of Athens international confernce

[04] Holbrooke, Albright planning trips soon, Burns says

[05] G. Papandreou to represent Athens at EU General Affairs Council

[06] Conference on EU enlargement begins in Athens

[07] Christodoulos confirms mediation efforts

[08] Gov't: Essense of Cyprus problem is invasion, occupation and not S- 300s

[09] Earthquake

[10] Positive reference to Greece in US economic publication

[11] Teen, 14, jailed for 7-year-old theft warrant, outcry leads to release

[12] Stephanopoulos sympathy telegrams to Central America

[13] Hepatitis B reported very high in southern Bulgaria

[14] "Treasures of Aidonia" in Australia

[15] Greece seeks alliance with southern EU states to get more funding

[16] Greek equities end flat after discounting Oct inflation drop

[17] Bourse enjoys robust week buoyed by inflation, rate declines

[18] Italy's Misko-Barilla to open Dr 10 bln pasta plant in Greece

[19] Tourism to Greece seen rising this year

[20] Contract signed for Burgas-Alexandroupolis pipeline study

[21] Geological studies find evidence of gold deposits in Evros

[22] Oil terminal to be inaugurated in Moldova

[23] Tegopoulos publishing company eyes ASE listing

[24] Meeting between Greek, German chamber officials

[01] Gov't sees inflation falling sharply after October drop to 4.7 pct

Commenting on a sharp drop in consumer price inflation in October to 4.7 percent year-on-year from 5.2 percent in the previous month, Mr. Papantoniou told reporters: "From now on, inflation will decline sharply."

Reducing inflation would accelerate progress in other sectors of the economy, chiefly allowing interest rates to fall faster and growth to increase, the minister said.

The government's target date for EMU entry is January 1, 2001.

Year-on-year inflation fell sharply to 4.7 percent in October from 5.2 percent the previous month, and is likely to drop further in November due to a tax cut in heating oil, the Greek National Statistics Service (GNSS) said yesterday. The decli-ne in Oc tober's consumer price inflation means that the government's target of 4.5 percent at the end of December is attainable, government officials said.

The figure may even fall to 4.3 percent at the end of the year if tax cuts on cars announced by the government earlier this week take immediate effect, the officials said.

The cuts are expected to lead to a roughly 5.0 percent decline in retail car prices.

GNSS said October's drop in inflation was primarily due to lower prices for gasoline and heating oil as a result of tax reductions.

It also forecast that the reduction of Value Added Tax on electricity bills from 18 percent to 8.0 percent, also announced this week, would further lower inflation by 0.7 percentage points after the measure becomes effective on 1.1.1999.

Athens News Agency

[02] Simitis issues call for unity within PASOK

In his address to ruling PASOK party's central committee session yesterday evening, the prime minister included several points of self-criticism for the party, a strong attack against the main opposition New Democracy party, and a discreet reference to a critical statement of 11 PASOK deputies before last Tuesday's confidence vote in Parliament, interpreted at the time by the premier as hostile and as an effective call for fresh elections.

He said the confidence vote, which the government won after the '11' withdrew their statement before voting in favour, "consolidated PASOK's central position on the political scene, making it clear that rallying round the party's goals cannot be opportu nistic, circumstantial, conditional or negotiable.".

Mr. Simitis defined the three basic milestones for PASOK in the near future, namely, the party's congress in March, Euro-elections in June and national elections in the year 2000. He said he felt honoured to be leading a party which fielded a host of views and ideas.

"I wish to promote new paradigms in political life, which are more useful and more creative, even more difficult to apply," he added.

The PM appealed for the session to send a strong message of decisiveness and avoid the trap of introversion, looking instead, to the future without hesitation and ready to carry out bold work, symbolising the new era.

He said parliamentary debate on the confidence vote had made it clear that New Democracy was way behind the needs of the country.

"It became clear that they are unable to make their positions clear; they say one thing and believe another. The rest of the opposition supports, at no cost and without any sense of responsibility, positions which annul worthwhile efforts, engaging in ex treme verbalism," he stressed.

He said "paradoxical phenomena of collusion between parties" in the recent local government elections would not change PASOK's policy, for which the only adversary was represented by conservative forces. "Cooperation between progressive forces const itutes a permanent and steady option, being sought without hegemonism or conditions," he said. Finally, Mr. Simitis called on the party to focus on specific areas of political practice and concerns, such as how the new social coalition for power is orga nised and expressed, the new role of trade unions, the new role of parliamentary deputies in the new system of devolution, and the characteristics of the process of renewal of party members in all its organs. Skandalidis: -- In his address, PASOK Secretary Costas Skandalidis stressed that the results of recent local government elections were unfavourable, but did not amount to a negation of the party's policies.

He acknowledged that New Democracy had strengthened its forces in local government, and casting doubt for the first time on the "monopoly of progressive forces", as he termed them, in local government, while also being helped in the second round by the stand adopted by other parties.

Referring to PASOK's forthcoming congress, he said three conditions were required for the party to emerge from it renewed:

First, the effective restoration of unity and a process of historical synthesis; second, an effective refoundation of party structures and functions in social terms; and third, a radical change in the model of "hierarchical relations" within the party.

Athens News Agency

[03] 2004 Olympics 'look' focus of Athens international confernce

The managing director of the Athens 2004 organising committee, Costas Bacouris, said yesterday that the conference on the "Image and Identity of the Games" was the first step towards dialogue on developing the image of the venue - Athens.

The conference will be attended by professionals occupied in advertising and communications who will be briefed on the procedures for composing the image which will reflect the identity of Athens in the past, the present and in the year 2004.

Athens News Agency

[04] Holbrooke, Albright planning trips soon, Burns says

Mr. Burns, speaking in Thessaloniki after meeting with the Prefect, did not say exactly when the visit would take place.

He added that U.S. Secretary of State Madeleine Albright had also expressed a desire to visit the region and that efforts were under way to schedule her trip.

Ms. Albright was scheduled to visit Greece in May this year but a heavy work schedule led to the cancellation of the trip.

Athens News Agency

[05] G. Papandreou to represent Athens at EU General Affairs Council

Greece will be represented by Alternate Foreign Minister George Papandreou.

In addition, a spokesman for the Austrian EU presidency said that the issue of EU-Turkey relations will be the focus of a special discussion.

In terms of the Commission's proposal regarding TurkeyYs EU economic aid through two regulations, the spokesman said the Council will be briefed on the case but no common position will be adopted.

Athens News Agency

[06] Conference on EU enlargement begins in Athens

It was organised in the framework of the EU's Austrian presidency in cooperation with the International and European Studies Department of the Athens University and the Greek European and Foreign Policy Foundation (ELIAMEP).

The purpose of the conference is the presentation of the Austrian presidency's initiatives during the second half of 1998, as well as an exchange of views, the analysis and resolution of the main issues arising in the process of the EU's enlargement.

Addressing the conference, Deputy Foreign Minister Yiannos Kranidiotis said, among others, that Greece attributes great significance to whatever concerns the EU's enlargement.

"We believe that enlargement constitutes a considerable purpose for the EU and it must include all the countries of southeastern Europe at some time," he said.

Athens News Agency

[07] Christodoulos confirms mediation efforts

"We are mediating in order to resolve the issue, offering our good offices with the consent of the sister Serbian Church, which has expressed its deep gratitude", the Archbishop said from Thessaloniki.

Christodoulos was on a stop-over in Thessaloniki on his way to Serres, northern Greece, for a regional tour.

Athens News Agency

[08] Gov't: Essense of Cyprus problem is invasion, occupation and not S- 300s

Government spokesman Dimitris Reppas made the comment when replying to reporters' questions on press reports claiming that the Russian-made S-300 anti-aircraft missiles might eventually be deployed on Crete, instead of Cyprus.

Nicosia's plans to install the defensive missile system have been criticised by Washington and several European Union countries, which claim the deployment will lead to greater tension in the region.

Turkey has openly threatened to prevent the installation.

"Nothing has changed regarding the decisions of the Cyprus government, with which the Greek government fully agrees. Whether or not the missiles are installed (on Cyprus) has been linked with certain conditions and from the moment that nothing has chang ed with respect to the fulfilment of these conditions, the decisions of the Cyprus government remain unchanged," Mr. Reppas said.

Cyprus' National Council, the top advisory body to Cyprus President Glafcos Clerides on the handling of the Cyprus question, has stressed that the missiles will be deployed unless there is sufficient progress towards a resolution of the Cyprus problem o r moves leading to the demilitisation of the island.

Nicosia has repeatedly underlined that the missiles are a purely defensive weapons system and would not be used to attack any country.

Athens News Agency

[09] Earthquake

Athens News Agency

[10] Positive reference to Greece in US economic publication

The bulletin - entitled Economic Developments Abroad and published by the Council for Urban Economic Development - said that the successful bid to host the 2004 Olympics symbolises the country's adherence to modernising its infrastructure and the stabil isation of the economy. In addition, Greece has started to evade the stereotypes of isolation, underdevelopment and high inflation.

It cites positive clauses in the new development law and presents an extract from a recent speech made in Washington by National Economy Minister Yiannos Papantoniou on Greece's role as a factor of economic and political stability and a lever of develop ment for all of southeastern Europe.

Athens News Agency

[11] Teen, 14, jailed for 7-year-old theft warrant, outcry leads to release

Thessaloniki authorities confirmed yesterday that the 14-year-old girl had been detained after police discovered a court decision sentencing her to a juvenile detention centre on one count of theft.

The girl was seven at the time of the offence. She was held for five days in the Korydallos women's prison.

"She has been through hell," her lawyer Pavlos Tsiakalos said, adding that his juvenile client had complained that she had been the object of lewd proposals from prisoners in the Thessaloniki holding facility on Saturday.

He said that the failure of the courts to provide "adequate personnel at the courts" on Friday, when she was brought before the acting prosecutor, was the cause of the young girl's odyssey.

The girl, who is one of 22 children, was originally assigned by the prosecutor on duty to detention in the Korydallos juvenile section, which however, stopped operating in 1996.

She was transferred to the Ninth Police Station where she was kept overnight until Saturday morning, then transferred to the Thessaloniki holding facility and later the same day, moved to Athens, where she was remanded in the Korydallos women's prison due to the absence of a juvenile section, for five days.

She was brought back to Thessaloniki on Thursday for a court hearing on a writ filed by her family to replace her detention in a juvenile prison with supervision by the juvenile service of the Thessaloniki Court of First Instance. The writ was granted.

According to judicial offices, there has been no irregularity in how Ibeki was treated. They clarified that Ibeki had been convicted of aiding and abetting in a theft which occurred when she was 6.5. She was sentenced three years later, but a bureaucrat ic bungle placed her age at the time of offence as nine.

Meanwhile, Coalition of the Left and Progress deputy and recent Athens mayoral candidate Maria Damanaki tabled a question in Parliament for Justice Minister Evangelos Yiannopoulos regarding the incident.

The DHKKI party also issued a statement, saying the incident was "unacceptable and heartless" and accused police of "excessive zeal".

Athens News Agency

[12] Stephanopoulos sympathy telegrams to Central America

Athens News Agency

[13] Hepatitis B reported very high in southern Bulgaria

According to data and following an inquiry by the Centre of Preventive Medicine, the percentage in the specific region amounts to 14.1 per cent at a time when permissible limits in Europe range between 2-3 per cent.

The fact has led to the need for cooperation between Greece and Bulgaria on the creation of a common plan of action. An epidemic centre on sexually transferable diseases is already operating, in cooperation with the Centre of Preventive Medicine at the Plovdiv Medical Faculty and as of December, in the framework of the Interreg II programme, four more similar centres will be created in the cities of Sofia, Stara Zagora, Pleven and Varna.

Athens News Agency

[14] "Treasures of Aidonia" in Australia

He called on local citizens to admire what he called the extraordinary and inspiring exhibition, "The Treasures Aidonia".

The Victoria State Premier together with Culture Minister Evangelos Venizelos will inaugurate the exhibition.

"It is of particular pleasure to me to inaugurate the first exhibition of the Melbourne Museum of Greek AntiquitiesI" Mr. Kenneth said in a message, adding that "The Aidonia Treasures give all Australians a unique chance to get to know the rich traditio n of ancient Greece."

The exhibition features 200 rare and priceless items of the Mycaenean era, which were recently returned to Greece from the US.

Athens News Agency

[15] Greece seeks alliance with southern EU states to get more funding

The minister was speaking after a four-hour inner cabinet meeting chaired by Prime Minister Costas Simitis to debate funding under the Third Community Support Framework (2000-2006).

Greece is preparing for tough negotiations in 1999 to ensure the continuation after 2000 of EU monies to finance infrastructure and other development projects included in the Delors package, or still at the planning stage, the minister said.

National Economy Undersecretary Christos Pachtas presented a preliminary plan, drafted by a ministerial committee, which took into account proposals by local government nationwide.

The plan, which sets education as the main priority, was unanimously adopted at the meeting following consensus that the first decade of the new millennium should be devoted to vocational and technical training, and upgrading human resources.

Major funding will be allocated to the projects.

Also agreed was to continue action in projects including infrastructure (ports, airports, road networks etc.), employment, the environment and culture.

The Third Community Support Framework, estimated at 7.0-8.0 trillion drachmas, is expected to enable the completion of all major public investments currently underway, also allowing the start of new projects and programmes to speed up growth.

Mr. Papantoniou added that the exact nature of funding had not yet been finally decided with the EU.

He said that the Second Community Support Framework will end in 1999, boosted by another 2.2 trillion drachmas earmarked in next year's public investments programme, as contained in the 1999 budget.

The week after next, a government committee that monitors the implementation of projects funded under the Second Community Support Framework projects will meet to review progress.

Athens News Agency

[16] Greek equities end flat after discounting Oct inflation drop

The general index ended 0.06 percent higher at 2,255.74 points for a net gain of 4.29 percent on the week.

Traders said the market had already discounted a sharp drop in October's inflation and was awaiting the Bank of Greece's moves on interest rates next week. Trading was heavy with turnover at 57.3 billion drachmas. Volume was 12,864,000 shares.

Sector indices were mixed.

Banks rose 0.28 percent, Insurance jumped 1.66 percent, Investment ended flat, Leasing fell 0.20 percent, Industrials increased 0.23 percent, Construction soared 3.99 percent, Miscellaneous ended 1.56 percent up and Holding fell 0.70 percent.

The parallel market index for small cap companies ended 0.36 percent off.

Broadly, advancers led decliners by 142 to 98 with another 24 issues unchanged.

Lambrakis Press Organisation was the most heavily traded stock rising 25.7 percent in its maiden appearance on the market.

Ideal, Hellenic Telecoms and Teletypos also recorded heavy volumes.

Ideal, Attica Aluminium, Ridenco, European Credit, Alte, Sfakianakis, General Warehouses and Kyriakoulis Yachts hit the daily 8.0 percent limit up.

Commercial Invest, Bank of Athens, Lanacam, Xylemporia, Mouriadis, Ekter, Barba Stathis, Parnassos, Sarandopoulos and Intertec suffered the heaviest losses.

National Bank of Greece ended at 41,910 drachmas, Ergobank at 25,480, Alpha Credit Bank at 23,940, Ionian Bank at 12,245, Hellenic Telecoms at 6,270, Delta Dairy at 3,770, Intracom at 13,350, Titan Cement at 18,000, Hellenic Petroleum at 2,380 and Minoa n Lines at 6,500 drachmas.

Athens News Agency

[17] Bourse enjoys robust week buoyed by inflation, rate declines

The successful outcome of a third flotation for Hellenic Telecommunications Organisation, a cut in lending rates by two major commercial banks and a sharp drop in the inflation rate in October were the main factors behind the week's rally in share price s.

The market ended the week 4.29 percent higher, up 52.45 percent from the beginning of the year, but 20.16 percent off its record peaks on July 21.

The week's turnover totalled 300.793 billion drachmas, posting a daily average of 60.2 billion, up from 42.7 billion drachmas the previous week.

Volume was boosted by the transfer of 50.4 million shares in Hellenic Telecommunications Organisation by the Greek state to the underwriters in the firm's latest flotation.

Analysts said the market was focusing on an effort to lower domestic interest rates, a package of government measures to reduce inflation, and a new wave of interest rate cuts in Europe ahead of introduction of the euro.

However, they said that cautious comments from the central bank governor on monetary policy and interest rates had put a partial break on the market's optimism.

Economists expect interest rates to drop to 7.0 percent by next summer, a prospect likely to boost the Athens bourse, combined with an expected speedier privatisation drive.

Lower inflation and interest rates will strengthen the balance sheets of listed companies and lead to higher profitability.

National Economy Minister Yiannos Papantoniou reiterated the government's intention to complete its privatisation programme.

He said privatisation revenue so far totalled 1.02 trillion drachmas.

The government expects 1999 revenue to total 700 billion drachmas through a fourth flotation for Hellenic Telecommunications Organisation, a second flotation for Hellenic Petroleum, and a majority privatisation of Ionian Bank.

Merrill Lynch, the US investment firm, in its latest review on the Greek market, urged investors to focus on defensive markets, such as Greece and Israel.

A survey among institutional investors in London revealed that six in eight fund managers were bullish on the Greek market, saying it was a safe haven offering relatively low risks and healthy prospects.

Athens News Agency

[18] Italy's Misko-Barilla to open Dr 10 bln pasta plant in Greece

The investment is Barilla's second in a month in Greece following its acquisition of installations in Volos owned by listed Loulis Flour Mills.

The new installations will act as Barilla's base for exports to the Balkans and the southeast Mediterranean basin that so far are produced in Italy.

"With our investments so far, Barilla has given Greece a vote of confidence, helping to make the country a production and business centre in the Balkans and southeastern Europe, Mr. Karakadas said.

He added that the latest investment is the biggest in Greece in the pasta sector, and one of the biggest in the consumer sector overall.

Barilla will meet the cost of the investment through its equity capital, with the firm currently holding 39 billion drachmas in bank deposits, Mr. Karakadas said.

The investment is unusual in that the firm has not used grants from the government's development law.

Initial capacity is 62,000 tonnes, which is equal to around two thirds of consumption in the Greek market. It will be the biggest pasta production plant in Greece and Barilla's third largest in Europe.

Misko ranks top in Greek pasta sales, and Barilla has shown the most rapid development in the sector, Mr. Karakadas said.

Years ago, Barilla acquired Misko of Greece but retained its brand name. The types of pasta made by the two firms are targeted at different consumers, Mr. Karakadas said.

The plant will be built in Eleona in the prefecture of Viotia, 10 miles from Thebes. It is to replace the company's existing plant at Patra, which is unsuitable for expansion.

Mr. Karakadas said Barilla would offer assistance to employees made redundant at the Patra plant and who were unwilling to relocate to Viotia.

Athens News Agency

[19] Tourism to Greece seen rising this year

According to a statement yesterday by National Tourism Organisation of Greece Secretary General Michalis Kyriakidis, approximately 12 million tourists will set foot in Greece by the end of 1998.

Countries which most favour Greece for holidays are Germany, the United Kingdom, Austria, The Netherlands and Italy.

Mr. Kyriakidis said that all indications show that 1998 will be the best year ever, exceeding a record of 11.3 million arrivals in 1994.

Greece's popularity is expected to mount in coming years, the cherry on the cake being the Olympic Games to be hosted in Athens in 2004.

Athens News Agency

[20] Contract signed for Burgas-Alexandroupolis pipeline study

Athens News Agency

[21] Geological studies find evidence of gold deposits in Evros

The results came from the Thrace Gold Mines AMBE company, as Greek and foreign geologists ascertained the existence of a possible major deposit at the Lofo Perama site in Evros prefecture.

The surveys started at the beginning of the decade when Silver and Baryte created three different joint ventures.

The company has a 33.33 per cent stake in the Thrace Gold Mines company together with Australia's Normandy Mining Ltd. as well as with Canada's Inmet Mining Corp., which is participating with 22.2 per cent.

The initial assessments of Thrace Gold Mines on the deposit at Lofo Perama are based on the results of 177 drilling operations carried out in the region in 1998 and chemical analyses as a first approach in the planning of the Mining and Metallurgical Un it required for the project.

Assessments to date are that the first 40 to 80 metres of the deposit located contain 11,230,000 metric tonnes with an average content of 3.5 grams of gold per metric tonne of ore. The deposit is located at a small depth and is indicated for surface exp loitation with a particularly good revelation relation.

In parallel, metallurgical probes show that with simple and ordinary methods of obtaining the gold in the specific case, the degree of accumulation is about 90 per cent, while according to the aforesaid initial conclusions the researchers assess that ab out 1,250,000 ounces of gold can be produced.

Summing up data, the company assesses that the deposit can constitute the basis for encouraging gold excavation activities with considerable economic results. For this purpose the company started processing a feasibility study, budgeted at three million dollars, which is expected to be completed in 1999 and obtaining relevant licences from the Greek authorities.

Athens News Agency

[22] Oil terminal to be inaugurated in Moldova

The project will be carried out on the basis of a 25-year concession agreement signed by the Moldovan state with the terminal joint company, comprising the Greek Technovax consortium and the Moldovan Tyrex Petrol.

Technovax, which will also undertake the management of the concession, has as main shareholders the construction companies Avax, Hellenic Technodomiki, Triton and Planning Development Company.

The European Reconstruction and Development Bank (EBRD), which is among a consortium of banks (including the Greece-based banks National, Commercial and General) and who have agreed to provide a 25.5 million dollars loan, is expected to join the consortium as a third party.

Athens News Agency

[23] Tegopoulos publishing company eyes ASE listing

The ASE entry will be carried out with an increase in share capital with public subscription.

The C.K. Tegopoulos Publications S.A. company also publishes the "Kyriakatiki Eleftherotypia" Sunday newspaper and "Chryssi Efkairia" classifieds as well as the magazine "Epsilon", while it participates in companies publishing the monthly magazines "Mir ror" and "NPQ".

It has also been participating in the share capital of the Tyletepos S.A. company (Mega Channel) ever since it was established.

The company will provide 2,813,420 new common nominal shares of which 2,679, 450 will be provided for the general investing public with public subscription and the 133,970 with private investment. The total number of shares, after entry to the bourse, wi ll amount to 11,253,420 common nominal shares each having a face value of 100 drachmas.

Xiosbank is acting as the adviser and main sponsor of the issue.

Athens News Agency

[24] Meeting between Greek, German chamber officials

The meeting was attended by both Greek and German chamber officials.

The German side outlined the fact that there was still a "serious deficit in knowledge" in relation to the framework and possibilities for the operation of German businesses in Greece, and vice versa. German officials also stressed that Greece was facin g difficulties with marketing and its image, and needed to improve both sectors.

However, they pointed to GreeceYs advantages for the operation of German businesses, owing to political stability, a growing economy and the country's geographic position.

Athens News Agency

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