Athens News Agency: Daily News Bulletin in English, 98-12-02

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

CONTENTS

[01] Athens,Nicosia convey disappointment to US over lack of Cyprus progress

[02] Gov't to retender Duty Free Shops after non-payment tangle

[03] Stocks slump in gloom over privatisation glitch

[04] Rate rise in oversold 7-year bond auction takes market aback

[05] Moody's downgrades Xiosbank's long-term deposit rating

[06] Gov't to create home purchase plan through social insurance

[07] Teletypos to raise its share capital

[08] Policy announced for small, medium-sized firms

[09] Official unemployment hits record high in August

[10] New FYROM PM receives Greek envoy

[11] Helexpo to head EU exhibitions' presidency

[12] Contacts between Greek, Romanian tourism officials

[13] Tourism management programme conference

[14] Gov't says deal struck with striking customs officers

[15] EU summit in Vienna the topic of Simitis-Klima

[16] PRC's public security minister, Tian Qiyu, in Athens

[17] Kaklamanis calls on EU not give in to Turkey's blackmail

[18] Greece rejects latest Turkish threats

[19] Athens dismisses latest Turkish accusations on PKK as 'groundless'

[20] Pangalos in Noway for OSCE meeting

[21] Press reports point to Pangalos visit in FYROM

[22] Bulgarian military leader in Greece

[23] Vartholomeos calls for Halki's re-opening

[24] PM lauds 'Britain and Greece' events

[25] No agreement on `Agenda 2000` ECOFIN session reached

[26] EU-Swiss deal on truck passage

[27] Infrastructure projects, environmental problems the centre of Balkan talks

[28] Gibraltar minister details port upgrades

[29] Better rate of EU funds' absorption by Greece: report

[30] Jan-Oct public spending rises less than expected

[31] Athens Foreign Exchange

[32] Albanians arrested on drug charges

[33] Bank robbery

[34] Monk missing on Mount Athos

[35] `AIDS Awareness Day' observed in Athens

[36] Syrian nationals given prison sentence for smuggling illegals

[37] WWF: 750 hectares of burned Penteli forest in danger

[01] Athens,Nicosia convey disappointment to US over lack of Cyprus progress

WASHINGTON 02/12/1998 (ANA - T. Ellis)

The disappointment was conveyed by Deputy Foreign Minister Yiannos Kranidiotis to US Assistant Secretary of State for European Affairs Mark Grossman and US coordinator for Cyprus Tom Miller at a State Department meeting Monday, and on the sidelines of a US-led international donors' conference to support the Middle East peace process.

Mr. Kranidiotis said it was illogical that Nicosia be asked not to deploy Russian-made S-300 anti-aircraft missiles on its territory when the tension on the island republic -- the northern part of which is occupied by Turkish tro-ops -- was caused by Turkey's "excessive military presence".

He called on the US to exercise its influence on Ankara and undertake an initiative, preferably at the UN level, aimed at limiting the armaments of the Turkish military force in Cyprus.

Greece wants a process heading in the direction of application of the relevant resolutions adopted by the UN Security Council last June.

According to diplomatic sources, some move in that direction was anticipated from the US in the next few weeks.

Sources quoted Mr. Kranidiotis as saying that US officials found the Greek arguments convincing and displayed understanding with Athens' and Nicosia's displeasure, blaming the Turkish side for the present impasse.

US officials also reiterated, however, their disagreement with the deployment of the missiles on Cyprus, stressing the need for reduction of the tension through limitation of armaments. He also said the US officials warmly supported Cyprus' course to EU accession,adding that it would be preferable if a Cyprus solution could be found before accession, but should not be a prerequisite for accession.

They also told Mr. Kranidiotis that they had encouraged the EU members not to pose a Cyprus solution as a condition for the island republic's accession, the sources said.

Mr. Kranidiotis, who represented Greece at the 40-nation donors' conference, told the meeting that Greece had already provided 30 million dollars since 1992 in financial support to the Palestinians, ranging from direct funding and technical assistance to medical aid and university scholarships.

He said Greece would donate a further 15 million dollars over the next few years.

Mr. Kranidiotis held private talks with several delegates, inlcuding the Austrian foreign minister and Palestinian leader Yasser Arafat before departing for Athens.

Athens News Agency

[02] Gov't to retender Duty Free Shops after non-payment tangle

Athens 02/12/1998 (ANA)

Government spokesman Dimitris Reppas said yesterday that the abortive sale augured no change in the government's wide-ranging privatisation plan, and a new tender would be called in the near future.

"Despite a minor delay, we will achieve our goals," Mr. Reppas said.

Saresco of France, bidding jointly with listed Greek cosmetics firms Papaellinas and Sarandis, won the international tender to acquire a 67 percent stake in Hellenic Duty Free Shops through the Athens Stock Exchange for roughly 78 billion drachmas.

The tender was formally annulled by the finance ministry yesterday after Saresco failed to produce payment, breaking two extensions to the original November 19 deadline.

The first, official, extension expired on November 30. The second, unofficially, was until yesterday morning. The two Greek firms informed the authorities that they had been in a position to make payment since November 19.

But the sale agreement was signed with the consortium, which meant that the government was unable to accept cash from the two firms without Saresco's contribution.

The ministry called off the tender following a recommendation by the Public Securities Enterprise (DEKA), which held an emergency meeting when Saresco failed to produce its share of the purchase price, and requested yet another extension.

Mr. Reppas underlined that the government had kept to its side of the bargain, but the consortium had not.

Saresco, which also bid in another abortive tender for the company earlier this year, offered 3,250 drachmas per share and provided a letter of guarantee, depositing it for the consortium two weeks ago.

Another bidder, Kappe of the Netherlands, had offered 3,300 drachmas per share but did not include a letter of guarantee, violating the tender's rules.

The government had set 3,100 drachmas per share as the floor for bidding.

DEKA will encash the consortium's two billion drachma letter of guarantee following the consortium's failure to pay on time.

The government may consider trying to sell the firm outside the bourse in its next attempt, ministry sources said.

News of the abortive sale put minor pressure on the drachma and on bonds in domestic markets but players regained their composure later in trade, and rates normalised.

The main opposition New Democracy (ND) party blasted the government for its latest failure to sell Hellenic Duty Free Shops.

"This is a new fiasco to give the country a bad name abroad," said ND spokesman Aris Spiliotopoulos.

"It is a real measure of the Simitis government's effectiveness, which is no longer being taken seriously ... The government cannot sell a company with secure profits," Mr. Spiliotopoulos said.

The Political Spring party also condemned the sale attempt, saying that the market backed privatisation but was wary of non-transparent sale procedures.

Athens News Agency

[03] Stocks slump in gloom over privatisation glitch

Athens 02/12/1998 (ANA)

Traders said sentiment was hit by negative developments in the sale of Hellenic Duty Free Shops and a decline in major European markets.

The general index ended 1.66 percent off at 2,470.09 points in heavy turnover of 69.4 billion drachmas. Volume was 12,562,000 shares.

Sector indices suffered losses.

Banks fell 1.21 percent, Leasing plunged 2.88 percent, Insurance dropped 1.60 percent, Investment ended 2.71 percent off, Construction lost 3.39 percent, Industrials fell 1.99 percent, Miscellaneous dropped 2.11 percent and Holding eased 2.41 percent.

The parallel market index for small cap companies ended 1.46 percent off. The FTSE/ASE 20 index fell 1.28 percent to 1,539.94.

The FTSE/ASE 20 blue chip index yesterday announced changes in its composition.

Xiosbank, Minoan Lines, Hellenic Petroleum and Elval replaced Aluminium de Grece (common), Elais, Papastratos (common) and Michaniki (common) in the group of stocks monitored.

Hellenic Bottling (common), Intracom (common) and Ionian Bank were given a new free float total of 24 percent, 27.80 percent and 33.85 percent respectively.

Broadly, decliners led advancers by 214 to 39 with another 15 issues unchanged.

Eskimo, Bank of Piraeus, Hellenic Duty Free Shops and Hellenic Telecommunications Organisation were the most heavily traded stocks.

General Warehouses, Aspis Housing, Uncle Stathis, Xiosbank, Attica Bank and Mouriadis hit the daily 8.0 percent limit up.

Allatini, Attikat and Hellenic Duty Free Shops hit the daily 8.0 percent limit down, while Vis, Xylemporia Yalco, Athinea, Parnassos and Technodomi also suffered heavy losses.

National Bank of Greece ended at 49,945 drachmas, Ergobank at 27,115, Alpha Credit Bank at 26,395, Ionian Bank at 13,040, Hellenic Telecommunications Organisation at 7,000, Delta Dairy at 3,565, Intracom at 14,220, Titan Cement at 20,250, Hellenic Petro leum at 2,350 and Minoan Lines at 6,800 drachmas.

Athens News Agency

[04] Rate rise in oversold 7-year bond auction takes market aback

Athens 02/12/1998 (ANA)

Bids submitted totalled 333.3 billion drachmas, 1.7 times more than the asked sum of 200 billion drachmas.

The ministry finally accepted bids totalling 215 billion drachmas.

The average weighted yield rose to 8.25 percent from 7.80 percent in the previous auction in April.

The seven-year bond pays a coupon of 8.70 percent.

Athens News Agency

[05] Moody's downgrades Xiosbank's long-term deposit rating

Athens 02/12/1998 (ANA)

Moody's said in a news release from New York yesterday that Xiosbank's former deposit rating had taken into account the strong commitment of the majority shareholder, the Vardinoyannis family, to support the bank in case of need.

The family's decision to sell a 37.5 percent stake to private Bank of Piraeus, announced on Monday, reduced its shareholding to a minority, and therefore its control.

Xiosbank's Prime-3 and D ratings for short-term deposits and financial strength, respectively, remained unchanged, reflecting the bank's well- developed infrastructure and small but focused business franchise, Moody's said.

However, the ratings of both Xiosbank and its new shareholder, Bank of Piraeus, would be monitored for any signs of strain from rapid growth of the banking group.

Bank of Piraeus' ratings are confirmed at Baa3/Prime-3 and D.

Under the terms of the share swap deal, Bank of Piraeus will acquire the 37.3 stake in Xiosbank for 83 billion drachmas.

Xiosbank has the option of taking an 8.4 percent stake in Bank of Piraeus after a share capital increase by the latter of 120 billion drachmas.

The transfer of Xiosbank's shares is expected to be completed in two months.

Athens News Agency

[06] Gov't to create home purchase plan through social insurance

Athens 02/12/1998 (ANA)

Employment and Social Security Minister Miltiades Papaioannou yesterday told a parliamentary committee, which was debating the government's proposals to reform the social security system, that legislation will be submitted in March allowing the right to lease homes from a state housing agency on a monthly basis and without down-payment.

Required would be an extra payment to the state housing agency, beyond normal health and pension contributions.

Ownership of the houses will come after a certain set payment time, or on early payment.

Athens News Agency

[07] Teletypos to raise its share capital

Athens 02/12/1998 (ANA)

The rights issue, approved by the extraordinary shareholders' meeting, offers existing investors one free new share for every 10 old ones.

Teletypos' main shareholders include General Publishing (Vardinoyiannis Group) with a 14.7 percent stake, Lambrakis Press Organisation with a 12.8 percent stake, Pegasos (Yiannis Bobolas) with a 12 percent stake and Christos Tegopoulos with a 9.8 percen t stake.

The company's turnover in the first 10 months of the year totalled 21.5 billion drachmas, a 13.8 percent increase from last year, while profits totalled 2.1 billion drachmas.

Teletypos' chairman, Elias Tsigas, was optimistic that this year's target for pre-tax profits of three billion drachmas could be achieved.

He said the company's main source of revenue was advertisement (98 percent).

Mr. Tsigas added that Mega Channel accounted for 32 percent of Greece's television market, followed by Antenna with 30 percent.

Teletypos holds a 42 percent stake in Multichoice, a cable TV operator.

Mr. Tsigas urged competitor Antenna TV station, and Hellenic Telecommunications Organisation, to take part in an effort to set up Greece's first digital TV channel.

Athens News Agency

[08] Policy announced for small, medium-sized firms

Athens 02/12/1998 (ANA)

EOMMEX's presidency presented the organisation's policy yesterday at a news conference ahead of a congress on new enterprises to be held December 4-6 in Piraeus.

The organisation's chairman, George Frantzeskakis, said that EOMMEX had offered consultancy services to more than 5,000 potential new businessmen.

He said that almost 3,000 businesses had asked for assistance in the form of subsidies totalling 70 billion drachmas, and that 872 investment projects, worth 16 billion drachmas, had been approved.

Another 1,000 applications, worth 25 billion drachmas, were awaiting evaluation, Mr. Frantzeskakis said.

From the total of 3,000 applications, 28 percent accounted for the food and beverage sector, seven percent for clothing, 11 percent for forestry, six percent for machinery and equipment, four percent for metal products, three percent for audiovisual equ ipment and two percent for software production.

Mr. Frantzeskakis said that these businesses had created 3,500 jobs around the country.

Athens News Agency

[09] Official unemployment hits record high in August

Athens 02/12/1998 (ANA)

However, unemployment slightly dropped down to 10.3 per cent in September and 9.9 per cent in October.

OAED figures show that unemployment has increased compared to 1997. Specifically, in 1998, in a 2.63-million work force there were 290,300 unemployed in October P 9.9 per cent. In 1997, in a force of 2.71-million work force there were 220,000 unemploye d P 7.5 per cent. The year closed with 213,000 people out of work and a jobless rate of 7.85 per cent.

It is worth noting that the above data concern only those registered with the OAED, while, on the contrary, according to National Bureau of Statistics data for 1997, the work force numbered 4.29 million people with 440,350 unemployed, translating to a rate of 10.3 per cent.

OAED director Costas Efstratoglou, during a press conference yesterday, was unable to draw an accurate picture in relation to unemployment, while he did not have the exact figure of the work force on which OAED calculated the unemployment rate.

Mr. Efstratoglou further said, however, that unemployment benefits were not to be raised in the near future.

Despite an increase in the numbers of registered unemployed with OAED, the number of those receiving unemployment benefits has virtually remained the same: 96,621 in October 1997 and 96,079 currently.

Athens News Agency

[10] New FYROM PM receives Greek envoy

SKOPJE 02/12/1998 (ANA - M. Vihou)

Earlier, Mr. Georgevski met with a delegation of Greek business people who briefed him on the agreement signed yesterday regarding the purchase of a 51 per cent stake in a Skopje brewery by a consortium of Greek firms, worth US$32 million.

Meanwhile, a Greek cultural week opens in the FYROM capital today, with an exhibition of 82 Greek companies.

Athens News Agenc

[11] Helexpo to head EU exhibitions' presidency

Athens 02/12/1998 (ANA)

It is the first time that Helexpo assumes the presidency of an international organisation.

It was decided at the assembly of Union members that the next annual assembly will be held in Halkidiki on June 25-26.

A presidential dinner will be held every year in the country of origin of the Union's president. In the framework of this initiative, the exhibition body which will preside will organise a dinner to which 8-10 important representatives of the tourism in dustry of interest to the body will be invited.

Government members and European Union officials will be invited to the presidential table, while the first presidential dinner will be held in Greece in September.

Athens News Agency

[12] Contacts between Greek, Romanian tourism officials

Athens 02/12/1998 (ANA)

Exhibition late last month.

Issues discussed concerned tourist investments, tourist training, the issuing of visas, etc.

Ten Greek enterprises participated with a pavilion in the Bucharest exhibition.

Athens News Agency

[13] Tourism management programme conference

Athens 02/12/1998 (ANA)

ALBA invited proffesors from upstate New York-based Cornell University to staff the programme, which focuses on the needs of higher and middle managers of tourist businesses.

Interested persons may call 01-89.64.531 for more information.

Credits amounting to 5.5 billion drachmas have been earmarked for work to be carried out at the Siteia airport, the processing of traffic studies in Thessaloniki and flood-protection work in parts of the Trikala prefecture.

Athens News Agency

[14] Gov't says deal struck with striking customs officers

Athens 02/12/1998 (ANA)

Labour Minister Miltiades Papaioannou said three-hour meetings led to the agreement, which is expected to be ratified today.

According to the initial agreement, customs officers with 15 years of service will receive a supplementary pension to the tune of 40 per cent of their regular pension benefits, including all employees hired before Jan. 1, 1993.

Mr. Papaioannou said that all the money collected by special accounts and directed to their social security fund will be funneled to a special account to be created within the unified social security fund so that officers eligible under the previous sys tem do not lose any benefits.

The customs employees' supplementary fund received proceeds collected as a percentage of duties paid on exports and imports.

Employees' representatives said the improved proposals were not tabled in time for legal and technical consideration.

They added that the presidium of the union will convene tomorrow to decide on proposals and take final decisions. Meanwhile, an Athens court will today decide on the legality of the strike.

Petrol shortage from custom officers' strike : Handwritten makeshift signs of "No more gas" appeared in most gasoline stations in major Greek cities overnight as fuel shortages became widespread as customs officers continued rolling strikes for the second consecutive day yesterday.

Customs officers vehemently object to the merger of their healthy pension fund with other public sector funds.

At the same time, kilometres-long queues of cars and trucks piled up at Greece's northern borders.

A spokesman for the customs officers' union said the line at the Promahonas border post along the Greek-Bulgarian border exceeded four kilometres, and three kilometres at the Evzoni border post between Greece and FYROM.

Athens News Agency

[15] EU summit in Vienna the topic of Simitis-Klima

Athens 02/12/1998 (ANA)

Speaking to reporters after talks with President Kostis Stephanopoulos, Mr. Simitis said the issues to be discussed in Vienna were of particular interest, including developments regarding the Community's funds, the "Agenda 2000", international economic matters and employment.

"We expect efforts to be intensified at the Vienna meeting to tackle problems relating to employment, while steps will most likely be taken to help the EU member-states increase their rates of growth," he said.

On the domestic front, Mr. Simitis predicted that December would be a month of "upheaval and tension", while noting that this was unavoidable if changes and reforms were to be introduced.

The premier made the comment in reply to Mr. Stephanopoulos' observation at the beginning of their talks that December would be a "difficult" month.

Athens News Agency

[16] PRC's public security minister, Tian Qiyu, in Athens

Athens 02/12/1998 (ANA)

Greece's public order ministry signed a cooperation agreement with China's public security ministry on Feb. 15, 1995 in Beijing.

The accord provides for an exchange of information in combatting international terrorism, organised crime, drug trafficking, illicit weapons trading, financial and other serious crimes.

Greece ratified the accord the following year and it officially came into effect on July 28, 1996. After his talks with Mr. Petsalnikos, Tian Qiyu visited the police academy.

Athens News Agency

[17] Kaklamanis calls on EU not give in to Turkey's blackmail

VIENNA 02/12/1998 (ANA - D. Dimitrakoudis)

"If the EU does not want to completely disappoint its people and cast a shadow on the European vision they are trying to build, it will not give in to Turkey's blackmail which is aiming at impeding Cyprus' accession (to the EU) and imposing its own accession."

Speaking at an unofficial summit of EU parliament leaders, Mr. Kaklamanis pointed out that "Turkey has recently aroused European public opinion with continuously increasing violations of international law...and its threats hurled against the governments of Germany and Italy and other countries, as well as due to its continuous abuse of the individual and human rights of its citizens and the people that live on its land, as recently denounced in a resolution passed by the European Parliament".

The Greek parliament president said that "these threats come precisely from a country (Turkey) that is neither a member-state of the EU nor has it been admitted as a candidate-state for accession and this country is making efforts to make the EU seem apt to accepting pressure to delay Cyprus' accesion on one hand and force its own accession to the EU on the other".

Mr. Kaklamanis underlined the fact that Cyprus combines all legal, financial and other requirements for its accession to the EU.

Referring to the role of the national parliaments and the European Parliament, he stressed "the need for the development of a new strategy to accelerate political and social unification, boost the European social model, handle unemployment, combat organ ised crime and develop a joint foreign policy..."

Athens News Agency

[18] Greece rejects latest Turkish threats

Athens 02/12/1998 (ANA)

He made the statement in response to a statement by Turkish Foreign Minister Ismail Cem yesterday, with which he opposed the idea of the Russian-made S-300 anti-aircraft missile system being deployed on Crete as an alternative solution to Cyprus.

The S-300 missile system was purchased by the Cyprus government to boost the air defences of the island republic. These plans have been criticised by some countries, which claim the S-300 would only increase tension in the region. Turkey has openly thre atened that it would prevent deployment of the system.

Following a Cyprus-Greece summit last Friday on the Cyprus problem and various scenarios regarding the location for the missiles deployment, Foreign Minister Theodoros Pangalos said from Paris on Monday that a proposal to deploy the missiles on the isla nd of Crete was not an "irrational proposal" but no decision had been taken.

Responding to Mr. Cem, Mr. Tsohatzopoulos said: "When the neighbours find themselves in an internal crisis they make statements and moves aiming at sensationalism in order to cover up their internal problems.

"I consider Mr. Cem's statement to be one of those moves and I would advise him, as well as Turkish leadership, to realise that starting next year the entire Athens FIR will be fully covered by an umbrella of short and long- range anti-aircraft missiles... half the distance to Cyprus," he added.

Mr. Cem, on a visit to Paris, yesterday attributed a "lack of seriousness" to the talks regarding possible installation of the S-300 missiles on Crete, saying that "it is Greece' business with the Greek Cypriots...it is a useless effort that cannot prov oke anything else but turmoil in the region", adding that "Crete belongs in the same geogrpahical region...I believe that this kind of talk is not serious."

Main opposition New Democracy (ND) party, in a release yesterday reacting to the Turkish foreign minister's statements said that Ankara's audacity reached the point of hurling "disguised threats against Greece in case it is decided to install the Russia n-made S-300 missiles on Crete", and called upon the government to "give the appropriate diplomatic response and denounce Turkey to the competent international bodies".

European Commissioner Christos Papoutsis, replying to questions by the Cypriot News Agency (CNA) in relation to the S-300 missile issue, said that "the noise created recently is challenging the joint defence doctrine as well as the reliabiliy of the pol itical choices...the Cypriot problem must be placed in its real international dimension, namely, an invasion by Turkey and illegal occupation of a portion of the Cypriot Republic."

Athens News Agency Athens 02/12/1998 (ANA)

Prime Minister Costas Simitis yesterday presided over a meeting of the ruling PASOK party's Parliamentary group and party-government liaisons.

Athens News Agency

[19] Athens dismisses latest Turkish accusations on PKK as 'groundless'

Athens 02/12/1998 (ANA)

"Turkey's accusations against Greece do not help the neighbouring country, which remains trapped in its own foreign policy," government spokesman Dimitris Reppas said.

The Turkish foreign ministry this past week accused Prime Minister Costas Simitis over statements he made at a press conference last week regarding the Kurdish problem.

Ankara attacked the Greek premier's rejection of the Turkish claim that the Kurdish issue was a one-sided "terrorist" problem.

Mr. Reppas stressed that the Kurdish problem was primarily a political issue which Turkey should resolve by political means. He added that it was also a matter of concern to the European Union.

The spokesman said the Italian government's handling of the Ocalan issue had been very responsible, adding that "the Italians must be encouraged to help them find the correct solution".

Asked whether he believed Rome should grant asylum to Mr. Ocalan, Mr. Reppas said it was not possible to dictate to the Italian government what to do.

"If Italy decides to grant political asylum to the Kurdish leader, Greece will agree," he said.

Athens News Agency

[20] Pangalos in Noway for OSCE meeting

OSLO 02/12/1998 (ANA - A. Podimata)

The meeting is set for today and tomorrow.

Earlier yesterday, Mr. Pangalos had a private meeting with his Danish counterpart Nielskelreg Petersen with discussion focusing on bilateral as well as European matters.

At a joint press conference in Copenhagen, Mr. Pangalos described Greece- Denmark bilateral relations as excellent. He added that only one problem existed in the two countries' ties, namely, the issue over feta cheese, saying Athens has referred Denmark to the Eurocourt over the matter.

According to diplomatic sources, the court's verdict is expected within the next few weeks.

Other issues referred to in the press conference were the Kurdish problem and the Ocalan case, with the Danish minister only saying that there has been no official motion for Mr. Ocalan's referal to an internatinal court.

For his part, Mr. Pangalos said that Abdullah Ocalan was only a part of the Kurdish problem. He grabbed the opportunity to expound on Turkey's accusations against Greece that it allegedly assists the PKK.

He stressed that Greece has repeatedly invited Ankara to provide evidence, but Ankara has failed to do so.

Referring to the Kosovo crisis, Mr. Petersen said he agreed with US positions on Yugoslav President Slobodan Milosevic, saying that a Yugoslav government led by Mr. Milosevic is a real problem.

Mr. Panglaos for his part said despite problems created by the Yugoslav president, there were two important issues that should be taken into account: one was that the "personification" of political problems did not help with their solution, and the second, that Mr. Milosevic was an elected president.

Another two issues to be considered when looking into the Kosovo crisis, according to Mr. Pangalos, are the mistreatment by Serbian security forces of the Albanian-speaking population and that Kosovo separatists are demanding independence.

Athens News Agency

[21] Press reports point to Pangalos visit in FYROM

BELGRADE 02/12/1998 (ANA - M. Mouratidis)

Tanjug was invoking reports in the press of FYROM.

According to these reports, news of Mr. Pangalos' upcoming visit to FYROM was leaked from Democratic Alternative party President Vasil Tupurkovski, who is participating in the new coalition government.

The newspaper 'Nova Makedonja' reported that the new government of FYROM, according to assessments by diplomatic sources, is prepared to agree with the Greek proposal that the official name of the state be "Republic of Makedonia-Skopje."

The newspaper said that it was not clarified whether the name will be used only in bilateral relations between Greece and FYROM, while it was stressed that Mr. Pangalos' visit will symbolically mean the start of upgraded relations between Athens and FYROM. PARIS (ANA) - The Greek embassy on Monday held a dinner in honour of visiting Foreign Minister Theodoros Pangalos.

Among those who attended were former French foreign minister Roland Dumas, France Liberte foudation president Daniele Mitterrand and Eurodeputy Catherine Lalumiere, among others.

Culture Minister Evangelos Venizelos yesterday announced that a Byzantine exhibition will be organised in Rome in the year 2000 in unison with celebrations in Jerusalem, following a meeting with his Vatican counterpart Paul Poupar.

Mr. Venizelos said that he also invited the Vatican officials to the 'Cultural Olympiad.'

Athens News Agency

[22] Bulgarian military leader in Greece

Athens 02/12/1998 (ANA)

The two deputy ministers were briefed and given a guided tour of the unit's installations by its commander Lt.-Col. Haralambos Avramopoulos.

In a speech, Mr. Apostolakis said that the way with which the Dayton agreement was being applied in the country was satisfactory.

He also disclosed that Greece has a positive stance towards talks being carried out for turning SFOR into a lighter military formation, the Continuation Force, on condition however that the climate of stability and security in the country will be further consolidated by the end of SFOR's term on July 1, 1999.

Athens News Agency

[23] Vartholomeos calls for Halki's re-opening

ISTANBUL 02/12/1998 (ANA - A. Kourkoulas)

Vartholomeos said "the deprivation of the ability to prepare the staff (of the Patriarchate) for their important role damages not only the Ecumenical Patriarchate but humanity as well as those who impose the limitations.

"Thirty years of deprivation are enough to study the issue again for revision of a hasty decision and correction of a mistake," he added.

Athens News Agency

[24] PM lauds 'Britain and Greece' events

Athens 02/12/1998 (ANA)

In his message, he said "with special joy I hail the events of Britain- Greece 1998. These events...seal the solid community relations and reflect the long traditional friendship between Greece and Great Britain".

Athens News Agency

[25] No agreement on `Agenda 2000` ECOFIN session reached

BRUSSELS 02/12/1998 (ANA - M. Spinthourakis)

Greece was represented at the session by National Economy and Finance Minister Yiannos Papantoniou.

"We are getting into deep waters, tones are getting increasingly higher and we are expected to have a tough six-month period ahead of us," Mr. Papantoniou told reporters shortly after the Council meeting, giving the picture of the deadlock at yesterday' s Council.

Mr. Papantoniou said that the Austrian Presidency presented a draft report to the "15" yesterday on the EU's fiscal prospects in light of enlargement, as well as on the issue of the EU budget's own funds which, as he said, "could in no way be accepted."

The Greek delegation, as well as the Spanish and Portuguese ones, and the Italian and Irish delegations in part, told the presidency that the draft report it presented was not objective, it did not face the views of all member-states on an equal basis a nd, consequently, it is not possible for it to be presented in the form of a report at the EU summit which will take place at the end of next week.

Referring in particular to the content of the Austrian presidency's plan, Mr. Paapantoniou termed it a "map exercise lacking any documentation and without being based on the processing of the consequences which a decrease in the EU's expenditures would have."

Mr. Papantoniou said that following the insistence of the southern European countries, the Council ultimately accepted that the text of the Austrian presidency will not have the character of a report to the summit but will constitute an introductory tex t which will present the situation concerning the talks on the "Agenda 2000" at the Council.

According to the above, it is clear that the "15" heads of state and government of the EU are not expected to reach a specific agreement on the Agenda 2000 at the Vienna summit, but will take note of the existing problems and will refer the issue to the

German EU presidency which will take over from Austria.

The issue of the taxation of energy was also discussed during yesterday's session, while it was clarified on the part of Greece that at the present phase it is not possible for tac percentages on energy products to increase in Greece for two main reasons. Firstly, because of the inflationary conception prevailing in Greece's economic policy in light of accession to Economic and Monetary Union and, secondly, because the competitiveness of the Greek economy is linked to the country's energy balance to a very great degree.

Mr. Papantoniou mentioned that following a Greek intervention in the report on progress which the Austrian presidency will present at the Vienna summit a special clause will exist on excluding countries such as Greece on the issue of increasing taxation percentages for energy products.

Athens News Agency

[26] EU-Swiss deal on truck passage

BRUSSELS 02/12/1998 (ANA - M. Spinthourakis)

The EU member-states consider the deal with Switzerland as satisfactory since that country has greatly improved its offer on various pending issues.

The talks for the lorry traffic through Switzerland, an issue of particular Greek interest, lasted for almost two years.

Athens News Agency

[27] Infrastructure projects, environmental problems the centre of Balkan talks

SOFIA 02/12/1998 (ANA - B. Borisov)

The agenda includes ideas for a free passage of goods and persons, as well as funding of three new border tolls in the Greek-Bulgarian border.

The tripartite meeting is due to close today with the issue of a joint declaration.

Athens News Agency

[28] Gibraltar minister details port upgrades

Athens 02/12/1998 (ANA)

Mr. Holliday said "Greece is the place most indicated for presenting the high-level port accommodations, about which we feel that Greek shipowners, shipping managers and shipping industry attorneys must be informed".

He said that the number of freighters and yachts heading for Gibraltar was constantly increasing and revealed strategies and future plans including further enhancement of the Gibraltar port for cruise-ship docking.

Athens News Agency

[29] Better rate of EU funds' absorption by Greece: report

Athens 02/12/1998 (ANA)

This was stressed by the Greek commissioner at the European Auditing Convention, Popi Nikolaou, a former Eurodeputy of PASOK, who presented the main points of the EU body's annual report for 1997 at a press conference at the European Parliament's office s in Athens yesterday, placing particular emphasis on Greece.

Ms Nikolaou said that Greece has passed the obstacle of the EU average and has won the battle of absorption in the first half of 1998. She said that it must now give the major battle of quality in the management and control of subsidies.

"It is clear that there is an imperative need for organising management and control formations to be improved, to be manned with adequate and specialised staff and there be an operational system for responsibilities to be meted out," she said.

She added that considerable steps have been taken in this direction, particularly over the past two years. However, these new formations are still at the stage of planning or their trial operation.

Ms. Nikolaou said that the frequency of typical errors, namely those concerning procedural violations, was very high in the case of Greece, where 60 per cent of payments checked contained a typical error.

A typical error in Greece is the lack of an olive oil register. Two years ago, the European Commission proposed the replacement of the traditional register with a simplified register. Italy, Spain and Portugal will apply it as of January 1, 1999, while Greece, in the auditors' view, will not be in a position to apply it even in the next five years.

However, this typical error constitutes an excuse for penalties being imposed on Greece on the part of the Commission over a series of years in the framework of settling the accounts of agricultural subsidies.

Other substantive errors detected for Greece are, among others, that inaccurate data was declared by olive oil producers concerning the quantity of production and the number of trees. The same was also the case in Italy where produced quantities declared were 20 per cent above the real figures.

In the construction sector expenditures were declared without the accompaniment of supporting documents and as a result 300 million drachmas in EU contribution is in danger of being asked for back by the EU.

In certains cases of project construction expenditures of about 250 million drachmas were declared which proved to be non-eligible, such as excavation expenditures based on the invoices of a company which never carried out this work due to bankruptcy.

The report also notes among typical errors the free distribution of fruit destined for the destitute in Greece, but which also occurred with all the large families, and as a result Greece appears as distributing free excessive quantities of fruit in relation to its population.

On the question of the Agricultural Fund, Greece is in the worst position with big amounts regarding returns and is followed by Spain.

As regards the Structural Funds, Greece is seventh in amounts and fourth in the frequency of cases.

It is estimated, on the basis of a statistical sample, that in all Greece has received without fulfilling typical qualifications 1.2-1.5 per cent of total funds paid to the country.

Regarding the future of Common Agricultural Policy (CAP) and the proposal for joint funding from member-states, Ms. Nikolaou said that for Greece the slightest decrease in subsidies means a big decrease in the income of Greek farmers.

In the EU as a whole, 3 per cent of big producers receive 40 per cent of CAP subsidies, while 60 per cent of small producers only 5 per cent of subsidies, which constitutes a scandal in the EU.

The picture is different in Greece where 7 per cent of producers having 10- 20 hectares receive 22 per cent, while 2.8 per cent of the major producers receive 17 per cent of subsidies. There are no very big producers in Greece as is the case in other Eur opean countries.

Athens News Agency

[30] Jan-Oct public spending rises less than expected

Athens 02/12/1998 (ANA)

During the same period, revenues allocated to local government and insurance funds were up 8.7 per cent compared to the annual target of 4.4 per cent.

As regards EU funds, withdrawals by the Public Investments Programme showed an increase of 33 per cent compared to a year earlier.

Revenues in the specific 10-month period have also recorded an increase due to changes in the taxation system.

Athens News Agency

[31] Athens Foreign Exchange

Athens 02/12/1998 (ANA)

Parities in Drachmas

Banknotes            Buying Selling
US Dollar            281.609 288.138
Can.Dollar           184.909 189.196
Australian Dlr       177.419 181.533
Pound Sterling       464.554 475.324
Irish Punt           414.656 424.270
Pound Cyprus         562.464 575.505
Pound Malta          698.287 727.382
Turkish pound (100)    0.082   0.085
French franc          49.806  50.961
Swiss franc          203.801 208.527
Belgian franc          8.098   8.285
German Mark          167.038 170.911
Finnish Mark          54.935  56.209
Dutch Guilder        148.175 151.611
Danish Kr.            43.930  44.948
Swedish Kr.           34.690  35.495
Norwegian Kr.         37.763  38.639
Austrian Sh.          23.748  24.299
Italian lira (100)    16.871  17.262
Yen (100)            229.688 235.013
Spanish Peseta         1.963   2.009
Port. Escudo           1.629   1.667

Foreign Exchange     Buying  Selling
New York             281.609 288.138
Montreal             184.909 189.196
Sydney               177.419 181.533
London               464.554 475.324
Dublin               414.656 424.270
Nicosia              562.464 575.505
Paris                 49.806  50.961
Zurich               203.801 208.527
Brussels               8.098   8.285
Frankfurt            167.038 170.911
Helsinki              54.935  56.209
Amsterdam            148.175 151.611
Copenhagen            43.930  44.948
Stockholm             34.690  35.495
Oslo                  37.763  38.639
Vienna                23.748  24.299
Milan                 16.871  17.262
Tokyo                229.688 235.013
Madrid                 1.963   2.009
Lisbon                 1.629   1.6673

Athens News Agency

[32] Albanians arrested on drug charges

Athens 02/12/1998 (ANA)

The three arrested were identified as Sofia Poula, 20, Themistokli Poula, 26 and Sokol Musabeliou, 24, while a warrant has been issued for Kosmos Sinanis, 24.

The police also found a Belgian-made revolver and confiscated a car which was allegedly used by the Albanians to distribute large quantities of marijuana throughout Attica.

Athens News Agency

[33] Bank robbery

Athens 02/12/1998 (ANA)

The two robbers made their getaway on a motorcycle which police believe is stolen.

The robbery was captured on video by a surveillance camera inside the bank.

Athens News Agency

[34] Monk missing on Mount Athos

Athens 02/12/1998 (ANA)

Brother Haralambos, 43, from the Agios Dionysios Monastery, has been missing since Saturday. Monks in the autonomous community have been combing the hills and ravines of the northern Greek peninsula since the monk was reported missing.

Police yesterday arrested a 32-year-old man in Kavala on charges of drug trafficking and fire-arms possession.

Police said Costas Parharidis arrested for selling drugs and allowing his clientle to use his home.

A Makarov-type pistol, 86 rounds and drug paraphernalia with traces of heroin were confiscated.

Athens News Agency

[35] `AIDS Awareness Day' observed in Athens

Athens 02/12/1998 (ANA)

Among the marchers, which was held under the aegis of President Kostis Stephanopoulos, were Deputy Health Minister Theodoros Kotsonis, the president of the Centre for Communicable Diseases Ioannis Stratigos and Church of Greece representatives.

At the Old Parliament House an open discussion was held on AIDS and social issues.

"The AIDS virus in wealthier countries has been contained, but the question is what can be done in developing countries, where the international community should show interest," Mr. Stratigos said.

Mr. Kotsonis said that five people aged between 10 and 24 were infected by the virus every minute with the rate of infection among the young expanding at a terrible rate, with 7,000 youth being afflicted every day.

Alternate Foreign Minister George Papandreou, in a statement, said a change in how to approach the problem of AIDS was needed.

The latest figures show 1,835 AIDS cases in Greece at the end of September, while cumulative figures show a 30 per cent drop over the last few years.

Announcing the figures in November, Mr. Kotsonis said the ministry was concerned about the hidden numbers of AIDS sufferers and carriers in Greece.

"Despite recording only 24 incidences of AIDS between July and September, this downward trend does little to allay fears. The present survey does not reflect the real picture. We have to make an issue out of AIDS... it is important," Kotsonis said.

Athens News Agency

[36] Syrian nationals given prison sentence for smuggling illegals

Athens 02/12/1998 (ANA)

They were identified as Mustafa Ounata and Mohamed Ouzar. A third Syrian, Zurikha Mustafa, received a six-month suspended sentence.

The Syrians had landed 74 illegal immigrants in Sitia, Crete.

Athens News Agency

[37] WWF: 750 hectares of burned Penteli forest in danger

Athens 02/12/1998 (ANA)

The press release noted that a three-month deadline for designating the burned expanses as a reforestion area expired on Nov. 7, while there are reports that several parcels of land may be listed within town planning limits.

Employees of the Federation of Civil Aviation Employees Unions will call two work stoppages today from 5 a.m. to 9 a.m. and 2 p.m. to 6 p.m. to protest the merging of their insurance fund with others.

Athens News Agency

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