Athens News Agency: Daily News Bulletin in English, 98-12-10

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

CONTENTS

[01] Central bank cuts key rates,commercial banks follow suit

[02] Stocks drop after discounting rate cuts

[03] Conference to be held on Greek-Polish business ties

[04] EU slaps fine on Greek ferry operators in Adriatic

[05] Finnish tourists to Greece seen rising 20 pct in 1999

[06] Gov't sees Dr 200 bln revenue surplus in 1998 budget

[07] Taxis on strike today

[08] Strike causes flight delays

[09] Athens Foreign Exchange

[10] Court sentences Roussel to five years in jail

[11] Syrian national deported

[12] Turkey's EU ties depend on terms,minister says

[13] Gov't vows to keep education reforms despite strong protests

[14] No possibility of changing gov't policy, spokesman says

[15] Russian communist chief calls for change,warns of chaos

[16] Greek navy chief visits Egypt

[17] PM due in Vienna today ahead of EU summit

[18] Euro-socialists meet to debate June polls

[19] Next US president to favour Turkey, Greek lobbyist says

[20] Olympiakos Piraeus qualifies first in its group for European Cup quarter-finals

[21] Culture ministry staff stage strike

[22] State home purchase plan to parliament soon

[23] Flights to Macedonia Airport resume after snow storm

[24] Gov't says no rift over resignation of state telecom boss

[25] Journalists receive Botsis awards

[26] Santer backs EU economic, social cohesion

[27] Greece to wage "Agenda 2000" battle in EU, Simitis says

[01] Central bank cuts key rates,commercial banks follow suit

Athens 10/12/1998 (ANA)

The central bank, which is following a cautious policy of rate cuts in line with a drop in underlying inflation, expects to accelerate the rate of decline in the second half of 1999 as consumer price inflation drops to 2.0 percent.

The government and central bank are working to lower inflation, and therefore interest rates, in order to join European economic and monetary union by January 1, 2001.

Yesterday the central bank cut its Lombard rate, which shows a longer-term trend, to 15.50 percent from 16.00 percent.

It also lowered two working rates in the domestic money market, indicating that rates on a day-to-day basis will decline.

The rate on two-week interbank deposits, which the central bank often uses as an intervention in Wednesday tenders and signals the level for rates, dropped by 50 basis points to 12.25 percent from 12.75 percent.

The overnight rate, which is a gauge of liquidity in the interbank system and may also be used as an intervention, fell to 11.60 percent from 11.90 percent.

Commercial banks quick to follow suit : Commercial banks were swift to respond to the central bank's rate cuts, in turn announcing declines in loan and deposit rates for their retail customers.

State-run National Bank of Greece, the country's largest commercial bank, is to reduce its lending rates between 0.50-3.55 percentage points, and deposit rates by 25 basis points.

National Bank, a blue chip on the Athens bourse, also announced the launch of new drachma and euro products in home loans and financing for development plans.

"The declines confirm progress made in the Greek economy towards macro- economic stability and economic and monetary convergence," National Bank of Greece said in a statement.

Among its new rates, effective on Monday, are the following, which do not include tax and surcharge:

• Savings deposits to 8.50 percent from 8.75 percent
• Current account deposits to 7.0 percent from 7.25 percent
• Operating capital loans to 13.75 percent from 15.25 percent
• Fixed asset and equipment loans to 12.25 percent from 13.25 percent
• Floating rate housing loans to 13.75 percent from 15.25 percent
• Housing loan savings accounts to 12.25 percent from 13.50 percent
• Housing loans with a fixed rate for the first three years to 9.75 percent from 12.25 percent
• Housing loans with a fixed rate for the first five years to 8.90 percent from 11.40 percent
• Personal consumer loans up to one million drachmas to 16.75 percent from 20 percent
• Special personal loans (holidays etc) to 15 percent from 16 percent
• Credit card rate to 18 percent from 21.55 percent

Leading the pack to announce rate cuts was National Bank of Greece, followed by private sector EFG Eurobank and blue-chip Ergobank. Remaining banks are expected to follow shortly.

EFG Eurobank, which belongs to the Latsis Group, is to cut its loan rates on Monday by 0.5-2.0 percentage points. Deposit rates are to drop by 50 basis points.

Ergobank also will reduce its loan rates by 0.5-2.0 percentage points but keep deposit rates steady.

Athens News Agency

[02] Stocks drop after discounting rate cuts

Athens 10/12/1998 (ANA)

The general index ended 0.98 percent lower at 2,541.59 points after gaining 1.10 percent in early trade. The index again managed to hold above formerly tough resistance at 2,500 points, showing signs of consolidation.

Trade was heavy with turnover slightly down at 86.6 billion drachmas from 87.9 billion drachmas a day earlier, and 16,441,000 shares changed hands.

The market in December is traditionally oriented towards window dressing with investors rearranging their portfolios to enhance their end-of-year books.

The FTSE/ASE-20 blue chip index lost 1.42 percent to finish at 1,571.28 points.

The parallel market for smaller cap stocks closed 0.57 percent lower.

Sector indices mostly recorded losses.

Banks slumped 1.80 percent, showing the day's greatest losses.

Leasing dropped 1.11 percent, Insurance shed 1.12 percent, Investment crept up 0.65 percent, Construction fell 1.33 percent, Industrials nosed down 0.05 percent, Miscellaneous shed 1.53 percent, and Holding dropped 0.82 percent.

Of 270 shares traded declines led advances at 164 to 86 with 20 unchanged.

The most heavily traded stocks were Panafon, Hellenic Telecommunications Organisation, Eskimo and Boutaris.

Scoring the highest percentage gains at the daily 8.0 percent upper volatility limit were Benroubi, Levenderis, Thrace Plastics, Metka, Eskimo, Ippotur, Esha, Agrinio Metals and Plastics, and Papoutsanis.

Posting the biggest percentage losses were Dimitriadis, Technodomi, Sato, Lanakam, Intertyp, Maxim Pertsinidis, General Warehouses, Kekrops, Etma, and Orion.

National Bank of Greece ended at 52,990 drachmas, Ergobank at 28,100, Alpha Credit Bank at 27,300, Ionian Bank at 13,980, Hellenic Telecommunications Organisation at 6,650, Delta Dairy at 3,520, Intracom at 12,580, Titan Cement at 20,300, Hellenic Petro leum at 2,255, Minoan Lines at 6,490, and Panafon at 6,300 drachmas.

Athens News Agency

[03] Conference to be held on Greek-Polish business ties

Athens 10/12/1998 (ANA)

The aim of the conference is to boost business ties between companies of the two countries.

Poland wishes to attract Greek investors, especially to the country's free zones, where tax is exempted.

Delegates to the conference will also examine how to enter Greek-Polish investment plans into European Union funded programmes.

Presented will be roadbuilding projects of interest to Greek engineering contractors.

Athens News Agency

[04] EU slaps fine on Greek ferry operators in Adriatic

BRUSSELS 10/12/1998 (ANA - P. Pantelis)

The ECU 9.2 million fine was imposed on Minoan Lines, ANEK, Strintzis Lines, Ventouris, Karagiorgis, Marlines and Adriatica of Italy.

The commission said that an investigation began in 1994 following a complaint by a tourist.

Domestic passenger shippers likely to contest EU fines : Greek coastal shipping companies appear determined to use judicial means to contest the Commission's decision fining them for violating article 85 of the European Union's treaty on the protection of free competition.

The companies - Minoan Lines, Strintzis Lines, ANEK, Ventouris Lines, Karagiorgis Lines and Marlines - and Adriatica of Italy are accused of creating a cartel in 1987-1993 for travel between the Greek port of Patras and the Italian ports of Brindisi and Ancona.

In a statement, Minoan Lines said it would use all legal means to contest the decision at the European Court, adding that the fine was not definitive, and the decision contained legal vacuums.

Strintzis Lines announced that it disagreed with the European Commission because in 1987-1993 the company and its competitors in the Adriatic were operating under a status of control by the Greek government over fares and routes, which ultimately led to similar fares being charged by the route's operators.

According to a statement by ANEK, the company will resort to the European Court to have the fine lifted, adding that it hoped an examination of the issue in purely legal terms would be in its favour.

Athens News Agency

[05] Finnish tourists to Greece seen rising 20 pct in 1999

Athens 10/12/1998 (ANA)

Greece is traditionally the favourite vacation spot for Finnish tourists, who are expected to total 174,000 in April-October 1999 versus 137,000 this year, with the islands of Rhodes and Crete sharing 50% of the whole.

Cyprus is also a popular year-round destination among Finnish vacationers, and, according to data provided by tour-operators, the tourist flow from Finland to the island republic is expected to increase by 5% in 1999.

Athens News Agency

[06] Gov't sees Dr 200 bln revenue surplus in 1998 budget

Athens 10/12/1998 (ANA)

In January-November revenue increased by 14.46 percent compared to a target of 10.74 percent for the same period, Mr. Drys said.

An increase in witholding tax on income contributed considerably to the rise, which, together with a natural increase in tax from higher income, resulted in revenue from income tax increasing by 28.13 percent.

Revenue from value added tax increased by 14.24 percent, and remaining revenue from tax offices increased by 13.14 percent.

Public revenue increased by 10.94 percent in November. Customs revenue decreased by 5.74 percent due to a recent customs officers' strike.

Regular budget expenditure increased by 5.8 percent in January-November, below a 6.0 percent increase recorded during the first 10 months of the year.

Athens News Agency

[07] Taxis on strike today

Athens 10/12/1998 (ANA)

The strike will affect all taxis in all major urban centres and rural towns.

Taxi drivers claim that finance ministry changes to the way they are taxed are not those agreed in earlier talks. The changes are also effective retroactively.

The drivers are also pressing demands for an increase in the flag-fall and measures to ensure conditions of fair competition. The transport ministry is responsible for these issues.

Athens News Agency

[08] Strike causes flight delays

Athens 10/12/1998 (ANA)

The walkout also caused delays and cancellations to international flights, with skeleton staff allowing only one flight per destination to be carried out.

Athens News Agency

[09] Athens Foreign Exchange

Athens 10/12/1998 (ANA)

Parities in Drachmas

Banknotes            Buying  Selling
US Dollar            277.899 284.342
Can.Dollar           179.750 183.918
Australian Dlr       171.393 175.367
Pound Sterling       460.328 471.001
Irish Punt           413.565 423.153
Pound Cyprus         557.504 570.430
Pound Malta          689.089 717.801
Turkish pound (100)    0.081   0.084
French franc          49.642  50.793
Swiss franc          203.980 208.709
Belgian franc          8.070   8.257
German Mark          166.458 170.317
Finnish Mark          54.748  56.018
Dutch Guilder        147.699 151.123
Danish Kr.            43.767  44.782
Swedish Kr.           34.541  35.342
Norwegian Kr.         36.704  37.555
Austrian Sh.          23.658  24.207
Italian lira (100)    16.810  17.200
Yen (100)            235.144 240.596
Spanish Peseta         1.957   2.003
Port. Escudo           1.623   1.661

Foreign Exchange     Buying  Selling
New York             277.899 284.342
Montreal             179.750 183.918
Sydney               171.393 175.367
London               460.328 471.001
Dublin               413.565 423.153
Nicosia              557.504 570.430
Paris                 49.642  50.793
Zurich               203.980 208.709
Brussels               8.070   8.257
Frankfurt            166.458 170.317
Helsinki              54.748  56.018
Amsterdam            147.699 151.123
Copenhagen            43.767  44.782
Stockholm             34.541  35.342
Oslo                  36.704  37.555
Vienna                23.658  24.207
Milan                 16.810  17.200
Tokyo                235.144 240.596
Madrid                 1.957   2.003
Lisbon                 1.623   1.661

Athens News Agency

[10] Court sentences Roussel to five years in jail

Athens 10/12/1998 (ANA)

Mr. Roussel appealed the decision and was released.

The president of the Onassis Foundation and the board of trustees had filed the lawsuit against Mr. Roussel, who had previously sued the board for mismanagement,a charge dismissed by Greek courts. Following yesterday's court verdict, Mr. Roussel's attorneys said that their client had not intended to defame the board members,.

But he was, and is, worried about the future of his daughter and her fortune, the lawyers said.

The prosecutor on Tuesday sought Mr. Roussel's conviction stressing that the accused had knowingly slandered the board members, and that his behaviour had created problems in the relationship between Athina and the foundation. Earlier during the trial, board members testified that the late Christina Onassis, Athina's mother, did not trust her husband, Mr. Roussel to manage her estate.

For that reason she had charged the Onassis Foundation's board of trustees with the management of her estate, they claimed.

They added that Mr. Roussel had been handsomely compensated for not challenging Christina Onassis' will. He had signed a protocol with the foundation under which he received $2 million a year, more than her will stated, the board members said.

Athens News Agency

[11] Syrian national deported

Athens 10/12/1998 (ANA)

Mr. Dokuz, who was condemned to death by a Syrian court, was arrested in Greece as an illegal immigrant 17 months ago.

Mr. Reppas discarded any comparison to Greece's stance between this case and that of Kurdistan Workers Party (PKK) leader Abdulah Ocalan, who is also facing the death penalty in Turkey.

Mr. Reppas said that Mr. Ocalan is the leader of a people fighting for an identity.

Athens News Agency

[12] Turkey's EU ties depend on terms,minister says

Athens 10/12/1998 (ANA)

At both Luxembourg and Cardiff, the EU made it clear to Turkey that an improvement in its human rights record and a less aggressive stance towards Greece were prerequisites for closer relations with the Union.

Speaking at a news conference on the outcome of Monday's General Affairs Council in Luxembourg, Mr. Papandreou said also that the EU did not have a clear-cut policy on Turkey and that in order for there to be such a policy, the 15 member-states would all have to agree on the fundamental positions governing relations between the EU and Ankara.

Referring to Monday's meeting, Mr. Papandreou said a text finally emerged after tough negotiations which "satisfied" the Greek side.

The General Affairs Council decided that Turkey could not join the 11 EU candidate countries invited to a two-day EU summit in Vienna tomorrow.

Mr. Papandreou underlined that the text did not refer to Turkey as a candidate country.

Although there had been an effort in Luxembourg aimed at "constru-ctive equivocation", Mr. Papandreou said, a number of decisions had been taken at both the Luxembourg and Cardiff summits, in which Turkey is not designated as a candidate country.

"If any member-state wants Turkey to be designated as a candidate country, it should say so. The problem in relations between the EU and Turkey is substantive and political and we should not try to conceal the problems that do exist (in these relations) ," Mr. Papandreou said.

Any problems should be brought out into the open, discussed and resolved, Mr. Papandreou said, adding:

"Yes to Turkey's European prospects provided Ankara contributes to a settlement of the Cyprus problem. Yes to its European prospects provided Turkey resolves the Kurdish problem by peaceful means. Yes, provided Turkey respects human rights and the princ iples of international law".

Ocalan : Mr. Papandreou said that the Ocalan issue provided Turkey with an opportunity to show its commitment to European values.

"If Turkey cooperates on the issue of Ocalan it will show a different 'cultural' approach," Mr. Papandreou told the news conference.

He said the 15 nation bloc had decided to extend wholehearted support to Italy and to bring the Ocalan issue to the Council of Europe.

"My personal opinion is that we should not, as European Union, miss this opportunity, because Greece also wants to see Turkey's European vocation," Mr. Papandreou said.

"The Kurdish issue is an international one. It is not our job to decide who is or is not a terrorist. In any case, Ocalan has renounced terrorist activities," he said.

Referring to his comments about possible EU funding for areas of southeast Turkey, he clarified that he had made the comments during Monday's ministerial luncheon and that it was not linked to the issuing of financial protocols.

He said however that his personal opinion was that it should be examined and that the European Union had made similar moves in Ireland which contributed to a peaceful solution.

"The issue of support for southeast Turkey and the Kurdish issue is an issue that can be discussed. The legal bases and the technicalities of how this can be done is another issue," he said.

Athens News Agency

[13] Gov't vows to keep education reforms despite strong protests

Athens 10/12/1998 (ANA)

But it said it was ready for talks over any problems arising from implementation of the reforms.

"We are willing to have a dialogue with teachers and pupils whenever it is ascertained that a problem will occur from implementa-tion of the educational reforms," Prime Minister Costas Simitis told Parliament last night.

Education Minister Gerasimos Arsenis told reporters after a meeting with the prime minister that there should be no doubt that reforms planned by the ministry would go ahead without any changes.

Mr. Arsenis said that aspects of the changes would be explained and ways to implement them examined in talks with teachers.

The minister alleged a "strong dose of disinformation" being fed to students.

Speaking in Parliament last night on the government's educational reform and replying to a question by Communist Party of Greece (KKE) Secretary Aleka Papariga, Mr. Simitis also said that Mr. Arsenis had addressed letters to educational federations to a ttend talks, adding that "the government will reconsider if it sees that there is a need for improvements and amendments in order to achieve better results."

He said that the target was to create better education which would be able to live up to a modern competitive world.

Mr. Simitis accused the main opposition New Democracy party and the KKE of "supporting and inciting protest action".

"The main target of ND and KKE is a popular struggle against the government and the cancellation of educational reform," he said.

Riot police disperse car torchers : Riot police yesterday used tear gas to disperse groups of youths who took advantage of a protest march by high- school students to burn three cars in the centre of Athens. The violence broke out when the students were prohibited from reaching the ed ucation ministry building in central Athens after a march through the capital to protest the government's education sector reforms.

More than 9,000 high-school students marched through Athens to protest an education reform law which they say attempts to turn schools into "examination sweat-shops" and students into "docile robots", while abolishing every concept of free, public educa tion.

When riot police prevented the students from reaching the education ministry, small groups of masked youths smashed shop windows. Three cars were also burned in the incidents which brought traffic to a standstill throughout the centre.

Student representatives told the ANA that protests including mar-ches, the occupation of schools and road blockades would continue until after the Christmas and New Year holidays.

They said a protest rally of students from all schools in Athens and Piraeus currently under occupation would be held on December 15.

High-school teachers yesterday held a 24-hour strike while primary school teachers staged a two-hour walkout also in protest at the government's reforms.

About 1,000 high-school students held a rally and protest march in Piraeus.

Shouting slogans against Mr. Arsenis, the students marched to the merchant marine ministry where they demanded to meet minister Stavros Soumakis.

The students dispersed peacefully after representatives aired student grievances to Mr. Soumakis.

Students, teachers and parents are protesting about teacher shortages, education ministry changes to grading and examinations at the primary, secondary and tertiary levels, the introduction of open university type programmes, and changes to procedures for appointing new teachers.

Also sparking discontent are budget allocations for education, private schooling, and the prosecution of those occupying or vandalising school property.

Commenting on the protests on Tuesday, government spokesman Dimitris Reppas said that the government would not back down.

"The government is discussing all possible improvements to the education reforms but no proposals will water down their essence," Mr. Reppas said.

The reforms were voted through by the government after "mature dicussion and study", he said.

"This law will be applied."

Education reform to go ahead, Arsenis says : Reforms planned by the ministry will go ahead without any changes, Mr. Arsenis said.

He said the ministry's campaign to inform students of the reforms would continue.

"I am not visiting schools to have my morning coffee. I am visiting them to speak to students," the minister said.

"We are open to dialogue not on the educational reforms but on how to implement them."

He said the ministry was also looking into other ways of communicating with students more effectively, including computers.

Mr. Arsenis said he had no details on how many schools were currently being occupied in the protests but said he "wouldn't be surprised" to learn that there were many.

"What I want to stress is that those pupils occupying schools are only hurting themselves by losing precious teaching time," he said.

Commenting on an opinion poll published in yesterday's press, which showed a fall in Mr. Arsenis's popularity, he said:

"I didn't take on the education ministry to be popular but to do something which the young generation needs... It doesn't worry me if my popularity is falling. What would satisfy me is the implementation of education reforms that will help our children deal with the future."

Athens News Agency

[14] No possibility of changing gov't policy, spokesman says

Athens 10/12/1998 (ANA)

He was commenting on the results of an opinion poll showing the main opposition New Democracy (ND) party ahead of the ruling PASOK party.

According to the MRB poll, the results of which were published in most Athens dailies yesterday, 31.8 per cent of respondents said they intended to vote for ND, compared to 25.3 per cent for PASOK.

The results for other parties were: Social Democratic Movement (DHKKI) 5.2 per cent, Communist Party of Greece (KKE) 5 per cent, Coalition of the Left 4.8 per cent, Political Spring 1.5 per cent. The percentage of undecided was 26.4.

One result of the poll however, underlined by Mr. Reppas, was PASOK's lead over ND with respect to ability to govern, where 28.6 per cent of respondents chose PASOK, against 26.3 per cent ND.

Asked to comment on the "emerging displeasure" of large segments of society with the government's handling of specific sectors such as education and health, Mr. Reppas said the government had, from the outset, expected reactions.

"We decided however that we had to introduce these changes. The benefits will be apparent very soon and the Greek people will judge us very positively and with confidence," Mr. Reppas said.

"The government is judged on the plain field of reality, while the opposition is judged by its words alone," Mr. Reppas added.

Athens News Agency

[15] Russian communist chief calls for change,warns of chaos

Athens 10/12/1998 (ANA)

Mr. Zyuganov was speaking to reporters after talks with Communist Party of Greece (KKE) Secretary General, Aleka Papariga, and honorary president Harilaos Florakis.

The wide-ranging talks covered relations between the two parties, the situation in the Balkans, developments in Russia and international issues.

Mr. Zyuganov, who is visiting Greece for the first time, expressed concern about the situation in Russia, maintaining that President Boris Yeltsin's "experiment" in establishing "mafia-like capitalism" had led to disaster.

"Now, the new government is trying to tackle the problems," Mr. Zyuganov said, stressing that the Communist Party had restructured and was at the present time the best organised party in Russia.

Mr. Zyuganov indicated that he was optimistic about the result of the presidential elections, regardless of when they were held. He stressed though that they must be honest, "which was not the case in 1996".

For this reason, he added, his party was cooperating with the new government of Prime Minister Yevgeny Primakov.

The communist leader also criticised the United States, charging that Washington's influence during the past few years on President Yeltsin and his associates had been disastrous for Russia.

He added though that it was clear from his talks with US President Bill Clinton and Secretary of State Madeleine Albright that Washington now realised that Mr. Yeltsin's policy had led to an impasse.

Mr. Zyuganov said that the European leaders with whom he had had talks better understood the need for assistance to be given to Russia so that the situation does not lead to instability.

"If chaos is allowed to prevail in Russia, it will swallow up not only Europe but the whole world," Mr. Zyuganov warned.

Meeting with Skandalidis : Mr. Zyuganov later met with ruling PASOK Secretary Costas Skandalidis.

The two men discussed the current situation in Russia and international developments focusing on the Balkans.

They also discussed cooperation between PASOK and the Russian Communist Party.

Mr. Zyuganov said after the meeting that he and Mr. Skandalidis discovered many common points and positions, while the prospects for further development of the two parties' relations were good.

Mr. Skandalidis said that a coincidence of views was ascertained about conditions in the Balkans, adding that he supported the development of European Union - Russian relations.

Athens News Agency

[16] Greek navy chief visits Egypt

Athens 10/12/1998 (ANA)

The two men will discuss issues regarding closer ties between the naval forces of Egypt and Greece as well as the promotion of their operational cooperation level.

The Greek and Egyptian naval forces recently held their first joint exercise in Alexandria.

Athens News Agency

[17] PM due in Vienna today ahead of EU summit

VIENNA 10/12/1998 (ANA - D. Dimitrakoudis)

Mr. Simitis will arrive in Vienna at noon today to attend a summit of leaders of the European Socialist Party (ESP) this evening, together with the other 10 socialist and social democrat prime ministers of the EU.

Main opposition New Democracy party leader Costas Karamanlis arrived in Vienna last night to attend today's summit of the European People's Party (EPP).

Cyprus President Glafcos Clerides arrived in Vienna last night, accompanied by Foreign Minister Yiannakis Kasoulides.

Mr. Clerides will participate in today's EPP summit, while on Saturday he and Mr. Kasoulides will attend a joint meeting of the European Council and the heads of state and government and foreign ministers of the 11 candidate countries for accession to the EU.

The European Council will focus primarily on employment, the "Agenda 2000" reform programme, and EU enlargement.

With regard to "Agenda 2000", the EU's Austrian presidency is expected to table proposals on solutions to key issues.

The proposals will constitute a working base for the EU's German presidency which will succeed the Austrian presidency in the first half of 1999.

Athens News Agency

[18] Euro-socialists meet to debate June polls

BRUSSELS 10/12/1998 (ANA - P. Pantelis)

Greek Defence Minister and ESP vise-president Akis Tsohatzopoulos, who attended the ESP presidency's meeting, said that the socialist manifesto was one the latest approaches to the party's electoral strategy.

It is a text containing the socialists' positions on European affairs, employment, development, expansion, economic and monetary union (EMU) and the euro.

He added that security issues, which were now entering a new dimension, were also covered in the socialist manifesto.

Deputy Foreign Minister Yiannos Kranidiotis, who took part in the meeting of the ESP's working group, said that amendments to the socialist manifesto satisfied Greek positions as taken by PASOK on unemployment, economic development, taxation harmonisati on, EMU and the identity of European defence.

Athens News Agency

[19] Next US president to favour Turkey, Greek lobbyist says

Athens 10/12/1998 (ANA)

He said that because of the increased importance of Turkey to the United States, the new president, Democrat or Republican, would favor Turkey.

Mr. Manatos argued that oil pipelines, conditions in Iraq, and the fact that Israel was surrounded by Islamic countries would also force the next US president to favor Turkey.

Athens News Agency

[20] Olympiakos Piraeus qualifies first in its group for European Cup quarter-finals

Athens 10/12/1998 (ANA)

Panathinaikos Athens was defeated 3-1 in Athens by Arsenal.

Winners after yesterday's final round Chamions' League matches are Juventus (Italy) Group B, Inter Milan (Italy) Group C, Bayern Munich (Germany) Group D, Dynamo Kiev (Ukraine) Group E, Kaiserslautern (Germany) Group F, Real Madrid Group C as runners-up and Manchester United Group D as runners- up.

Athens News Agency

[21] Culture ministry staff stage strike

Athens 10/12/1998 (ANA)

The strikers want their insurance fund kept out of a bill on merging state funds.

Union representatives said that 50 percent of major culture projects financed from national resources had halted, the internal organisational chart of the culture ministry was outdated, and that guards and technical personnel should be doubled at archae ological sites.

They claimed that 280 sites were guarded by 193 employees instead of 304 as foreseen.

Personnel shortages had forced the former Director of the First Department of Prehistoric and Classical Antiquities to temporarily close the Ancient Agora Museum, which resulted in her dismissal last week by decision of the culture minister, the union said.

Athens News Agency

[22] State home purchase plan to parliament soon

Athens 10/12/1998 (ANA)

Mr. Papaioannou, speaking at a meeting of the Labour Guild Workers' Housing Organisation (OEK), said that based on the new measures, workers would be able to temporarily lease a house at a nominal monthly fee equal to 1:500 of its value, and after five years attain eligibility for ownership by paying off the balance of the house's value, offset by the total amount already paid for rent.

The minister also said that new student residences would be built and old housing projects would be rennovated by OEK.

OEK President Thanasis Hanakoulas said that the organisation had increased its housing program by 97% between 1994 and 1998, provided homes for 52,000 families, increased lending by 162% and provided rent subsidies to 157,000 low-income families.

Athens News Agency

[23] Flights to Macedonia Airport resume after snow storm

Athens 10/12/1998 (ANA)

Officials opened runways after frost and ice was removed. In the city itself, dozens of minor car accidents were reported due to slippage on icy roads.

Police said snow chains were being used on most vehicles travelling outside city limits.

The temperature fell as low as -8C in Kozani, western Macedonia. In Florina, eastern Macedonia, the mercury dipped to -5C.

Meanwhile, police were trying to reach a group of four people snowed in by the storm on an isolated road in the forested region of Hortiati, Thessaloniki.

The group was stranded on the road to Adrameri by the blizzard and forced to spend the night in their car.

They contacted relatives by mobile phone, who in turn contacted police who launched the search.

Many mountainous villages in Eastern Macedonia remained cut off due to thick snow of up to 25 cm, with prefecture services trying to clear snow off the roads.

Snow also fell all day in the Kavala prefecture where traffic to and from many villages was only possible by vehicles equipped with anti-skid chains.

In Drama, especially Nevrokopi, thick snow covered about 17 villages, while some Xanthi villages remained isolated, and snow fell in the city itself all day.

Athens News Agency

[24] Gov't says no rift over resignation of state telecom boss

Athens 10/12/1998 (ANA)

Replying yesterday to a question on OTE and a letter sent by Mr. Chrysolouris, Mr. Reppas said: "Following a successful term of office at OTE, Mr. Chrysolouris resigned and his successor has already been chosen. OTE is continuing its successful modernis ation policy."

Mr. Chrysolouris said in a statement that he was forced to resign, while in a letter addressed to OTE's board on Tuesday he pointed out that his "proud stance has been misunderstood a great deal".

In a related development, sources close to Transport and Communications Minister Tassos Mantelis said yesterday that the issue concerning Mr. Chrysolouris had been closed once and for all as far as the ministry was concerned.

The sources said that whoever wished to keep the Chrysolouris issue in the limelight could easily do so. He could also be summoned by parliament to provide clarification.

If Mr. Chrysolouris were to return to his old post the transport and national economy ministers would have to resign, as they had indicated to Mr. Chrysolouris in the past that he should act in agreement with other OTE authorities.

Athens News Agency

[25] Journalists receive Botsis awards

Athens 10/12/1998 (ANA)

Awards were given to Petros Kassimatis, Stathis Karras, Sylvana Rapti, Mihalis Katsigeras, Vassilis Kanellopoulos, Dimitris Devetzis, Serafeim Constantinidis, Fotis Kalliangopoulos and Giorgos Kastrinakis.

Distinctions were awarded to Dimitris Theophilopoulos, Christos Passalaris and Grigoris Mihalopoulos for years of service, and to Petros Linardos for sports coverage.

Athens Journalists' Union (ESHEA) secretary Giorgos Leontaritis spoke of the Botsis Institute's contribution to supporting journalism.

Athens News Agency

[26] Santer backs EU economic, social cohesion

BRUSSELS 10/12/1998 (ANA - P. Pantelis)

He said that enlargement funding by the European Union must not burden the "cohesion" countries - Greece, Spain, Portugal and Ireland.

Mr. Santer said that EU expenditure on structural funds must not be decreased as proposed through the containment of spending at 1998 budgetary levels.

He said that if agricultural expenditure was frozen at 40 billion ECU, it would kill off reform of the Common Agricultural Policy.

He added that the cohesion fund must be maintained for countries that had benefitted from economic and social cohesion.

Mr. Santer said he was not expecting decisions to be taken at the Vienna summit on those issues, which are of interest to Greece and are included in the fiscal outlook of "Agenda 2000."

He predicted that the decisions would be taken at a special summit to be held in Brussels in the spring under the German EU presidency.

Athens News Agency

[27] Greece to wage "Agenda 2000" battle in EU, Simitis says

Athens 10/12/1998 (ANA)

He was replying to a question raised by Coalition of the Left and Progress (Syn) leader Nikos Constantopoulos. "Agenda 2000" is about the EU's budget in 2000-2006.

However, the premier appeared pesimistic over bridging differences between Greece, Spain, Portugal and Ireland - which want to see higher budgetary funds - and Germany, Holland, Austria, and Sweden - who urge a partial renationalisation of common agricu ltural policy spending, as well as a partial return of their contributions.

"At the present time, there is no prospect for a compromise between opposing views of the North and South", Mr. Simitis said.

Mr. Constantopoulos said that the government had failed to oppose the agricultural section of "Agenda 2000" a year ago, and called on Mr. Simitis to better prepare for the EU's Vienna summit.

Athens News Agency

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