Athens News Agency: Daily News Bulletin in English, 98-12-30

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

CONTENTS

[01] Cyprus decides non-deployment of S-300 missiles

[02] Aid on the way for Kurdish refugees

[03] March in Athens today in support of Ocalan

[04] Tsohatzopoulos to visit Tirana today

[05] Anarchist group claims responsibility for bomb attacks

[06] Greek long-term rates seen converging in 1999

[07] Profit-taking halts rally of prices

[08] Hellenic Petroleum launches new petroleum products unit

[09] Minister announces measures for agriculture

[10] LARKO employees block Athens-Lamia highway

[11] Plastic pipes sector shows upward trend

[12] Investors appear reserved in both bonds and exchange markets

[13] Athens Foreign Exchange

[01] Cyprus decides non-deployment of S-300 missiles

NICOSIA 30/12/1998 (ANA/CNA)

He said in a two-page written statement after consultations with the Greek government in Athens in the morning and a three-hour session of the island's National Council that he would negotiate with the Russian government a possible alternative deployment of the missiles on the island of Crete.

"The positions of the parties were clear and so was the non-existence of unanimity. Consequently, being the President of the Republic of Cyprus, fully conscious of the responsibilities which I am shouldering and realising the crucial hour our national issue is facing, I reached the decision not to have the missiles deployed on Cyprus. I agreed for us to negotiate with the Russian government on their possible deployment on Crete, " President Clerides said after the National Council meeting.

President Clerides said that in reaching this decision, he took seriously into account the positions of the Greek government and of the majority of the National Council which supported the need for a joint decision between the governments of Greece and Cyprus.

"I assume responsibility for this decision and I feel the obligation to underline that the sole and exclusive criterion in taking this decision was the interests of the Cypriot people and the broader interests of Hellenism. I accept this decision consti tutes a change from a previous one for the deployment of the missiles on Cyprus. However, I do not accept that today's decision was the result of bowing to pressures, threats and blackmail. It was merely the result of the responsible evaluation and realis tic joint assessment of the currently existing conditions, factors and prospects concerning, directly or indirectly, the course of our national issue," he said.

President Clerides said that he neither criticised or denounced the decision taken for the purchase and deployment of the S-300 missiles on Cyprus as mistaken. He added, however, that he would not be a responsible leader if he had insisted stubbornly on that decision merely for reasons of misconstrued consistency and being aware that its implementation at present would harm the substantive and permanent interests of Cyprus and Greece.

"I wish to underline in particular the fact that the Greek government, in our meeting in Athens today, reiterated its commitment to strengthen the unified defence doctrine even more and its readiness to defend the interests of Cypriot Hellenism and the security of Cyprus in the event of a threat," he added.

President Clerides said that Cyprus now awaited implementation of Security Council resolutions and the fulfillment of international commitments undertaken at the highest level. He added that with its decision, Cyprus is providing the international commu nity with the opportunity of paving the way for the demilitarisation of Cyprus and the resolution of the Cypriot problem, and expects results in a reasonable period of time.

Simitis Prime Minister Costas Simitis expressed his support for President Clerides' decision not to install the S-300 surface-to-air missiles on the divided island.

"It is a decision which the Greek government fully backs", the premier said.

He added that "the question was and still is that progress is achieved in the efforts to resolve the Cyprus problem and the consolidation of a feeling of security to Cypriot Hellenism".

The installation of the Russian-made S-300 missile system on Cyprus is not an end in itself, Mr. Simitis stressed.

He explained that the cultivation of conditions of tension is the Turkish side's fixed target, while on the contrary, Greece has an interest in persevering with diplomatic efforts, respect for international legality, and utilisation of all possibilities for a comprehensive and peaceful solution of the Cyprus problem.

"The recent Security Council resolutions on Cyprus and the statements by foreign leaders that followed, can be an important positive development to reduce tensions", Mr. Simitis underlined.

The two UN resolutions Mr. Simitis referred to renewed for six months the mandate of the Peacekeeping Force on the island and called on both communities to respond positively to the organisation's efforts to secure agreement on measures to reduce tensi on and build confidence between them.

US President Bill Clinton and British Prime Minister Tony Blair also expressed the commitment to work towards implementation of the resolutions.

Mr. Simitis further placed emphasis on the fact that increasing international awareness for Cyprus, which is now taking the form of concrete proposals and commitments by international bodies, give rise to solid hopes for a new coordinated effort to est ablish peace and pave the way for negotiations to resolve the long-running problem.

"The responsible decision just taken by President Clerides must then be assessed in the context of a new effort to raise the substance of the issue through new procedures. The joint Greek-Cypriot effort will now focus on fully exploiting the dymanics cr eated by these developments", the Greek premier said. According to Mr. Simitis, military cooperation between Greece and Cyprus will continue within the context of two states' joint defence doctrine, with its continuing develop-ment being a perma nent and clear political decision.

"The specific commitments Greece has undertaken towards Cyprus are always valid", he said.

Reffering to the decision to install the missiles on Crete -following the necessary deliberations with Russia- Mr. Simitis said that it was part of the joint defence doctrine planning, which will boost Cyprus' defence and protection.

"Greece guaranteees the right of Greek Cypriots to live in security and will continue to defend that right by all means availble", Mr. Simitis stressed.

The Greek prime minister also pledged that Greece will promote Cyprus' EU accession as it has done up to now, believing that the island's admission into the union will safeguard unhindered and peaceful development and prosperity of the whole of Cyprus.

A Greek government statement issued in Athens after the morning meeting between Mr.Clerides and Mr. Simitis said the two men exchanged views on the positions of the Cypriot parties with regard to the missile system.

The written statement also said "the present phase of the Cyprus problem and its prospects, especially after the adoption of two resolutions by the Security Council" was also discussed.

Mr. Simitis and Mr. Clerides' meeting was also attended by Foreign Minister Theodoros Pangalos, Alternate Foreign Minister George Papandreou, Deputy Foreign Minister Yiannos Kranidiotis and Defence Minister Akis Tsohatzopoulos. Also present was Cypriot minister to the president Pantelis Kouros.

The Cypriot head of state flew back to Nicosia after the meeting where he convened the all-party National Council on the issue.

In a related development, the leader of Cyprus' Socialist party (EDEK), Vassos Lyssarides, said yesterday that Greece was advising Nicosia to change its decision to install the S-300 missiles, not because it might lead to war with Turkey but because it would negatively affect the prospects of full EU membership for Cyprus.

EDEK is a junior partner in the Cypriot coalition government and holds the defence ministry portfolio.

According to an ANA despatch from Nicosia, Mr. Lyssarides added that it would be naive to believe that Cyprus' accession prospects were so fragile that they would be destroyed by the deployment of a defensive weapons system.

Stressing that for his party the missile issue was a political rather than a military one, Mr. Lyssarides reiterated that EDEK would definitely withdraw from the government if the S-300 were eventually not deployed in Cyprus.

Greek political party reactions : Main opposition New Democracy party spokesman Aris Spiliotopoulos yesterday said that the government was responsible for the developments on the S-300 missile issue.

He claimed that Greece "cashed in the results" of the wrong choices made by the government in exercising foreign policy.

He added that "no one ever explained to the Greek people, how, why and with which aim and prospect the purchase and deployment of the S-300 on Cyprus was decided.

"Nor (do they explain) what, in reality, today's decision serves, for the possible transfer to Crete, which the Greek government will negotiate with the Russian and Cypriot governments," he said.

The Communist Party of Greece (KKE) in its press release said that the development of the issue proves that the partition of the island is kept secret, the process of the island republic's accession to the European Union "which is the leverage for the partition" is presented as salvation for the Cyrpus problem, it is not allowed by a small country to purchase defensive arms and the joint defence doctrine has gone "totally bankrupt."

US State Department : WASHINGTON (ANA- T. Ellis) - A State Department spokesman said yesterday that Cyprus' decision not to deploy the Russian- made S-300 defence missiles on the island republic was welcomed by the United States.

"We welcome and support President (Glafcos) Clerides' decision not to bring the S-300 missiles to Cyprus", said Mr. Lee McClenny of the State Department, adding that "we commend the government of Cyprus for taking this important step for easing tensions on the island".

"This action will give important new impetus to UN Secretary General AnnanYs 30 September initiative to reduce tensions and promote a just and lasting settlement of the Cyprus dispute" he said.

"The UN Security Council, in UNSC resolution 1218 adopted December 22, strongly endorsed the Secretary General's initiative and urged him to intensify his efforts.", Mr. McClenny said, adding that "As President Clinton said in his December 22 statement,the U.S. wholeheartedly supports this resolution and will take all necessary steps to support a sustained effort to implement it".

"We urge both sides in the Cyprus dispute to work closely with the Secretary General to reduce tensions and to avoid any actions that might increase tensions on the island" Mr. McClenny concluded.

Russian foreign ministry : NICOSIA (ANA/CNA) - In an interview with Reuters ahead of President Clerides' announcement of the decision not to deploy the missiles, Russian Foreign Ministry spokesman Vladimir Rakhmanin expressed the hope Cyprus would respect its contract, pointing out that he saw no danger to regional security as a result from this purchase.

"Our position is that this is a purely commercial contract", he said and added: "We do not believe that this contract is the origin of tensions in Cyprus".

Mr. Rakhmanin said that "Russia has moved forward some ideas on how to reduce tensions on the island" and stressed that "the main proposal is the demilitarisation of Cyprus and I believe these ideas are still on the table".

The anti-aircraft missiles were ordered by the Cyprus government in January 1997.

Athens News Agency

[02] Aid on the way for Kurdish refugees

Athens 30/12/1998 (ANA)

Athens News Agency

[03] March in Athens today in support of Ocalan

Athens 30/12/1998 (ANA)

The march is expected to draw the participation of supporters of the Kurdish cause as well as the Greek Kurdish community. The marchers will be accompanied by the Kurdish children's choir, dressed in traditional costume.

The protest will begin at the Italian embassy, near Syntagma square, proceed to the Greek Parliament House, the United Nations and to the European Union offices in Greece. At all the points on the march, organisers will hand over a petition signed by so me 35,000 Greek citizens calling for Ocalan to receive political asylum.

The petition also calls for an international conference to be held on the Kurdish problem.

Ocalan is living in a villa near Rome under police surveillance but is free to leave after Italy refused to extradite him as the Italian constitution forbids extradition if a suspect could face the death penalty.

A spokeswoman for the PKK said last week Ocalan wanted to stay in Rome and await the results of an application for political asylum he lodged on arriving in Italy. An interior ministry commission is due to rule on the request later this month.

Athens News Agency

[04] Tsohatzopoulos to visit Tirana today

Athens 30/12/1998 (ANA)

Mr. Tsohatzopoulos is scheduled to meet with Prime Minister Pandeli Majko for talks centering on bilateral issues, while he will also visit the Greek military force stationed in Isberi.

Athens News Agency

[05] Anarchist group claims responsibility for bomb attacks

Athens 30/12/1998 (ANA)

The explosions caused by the home-made devices went off outside the entrance of a five-storey building which housed the American Express Bank which recently moved to another location, but the bank's sign was still there.

The blast shattered windows and damaged computers in offices in the rest of the building housing shipping offices. Police cordoned off the area, but a second explosion went off a few minutes later outside a branch office of Barcley's Bank also causing heavy damage and shattering window panes to offices housed in the building. An anonymous caller telephoned a private radio station and an afternoon newspaper informing them of the explosions before they went off.

Athens News Agency

[06] Greek long-term rates seen converging in 1999

Athens 30/12/1998 (ANA)

He forecast that 10-year state bond yields will drop to 5.2 percent by the end of 1999 from 7.12 percent currently, achieving the long-term interest rate criterion to participate in European Economic and Monetary Union.

Announcing the government's state securities issuing pogramme for the first two months of 1999, Mr. Christodoulakis said that next Monday and Tuesday the finance ministry will offer to investors tax-free deposit bonds of two- year duration, yielding 10 percent from 10.3 percent in the previous issue.

Next year's programme included launching of 15-year bonds on January 5, five-year bonds on January 12, three-year bonds on January 19 and 10-year bonds on January 26.

The programme also includes issuing of 12-, six- and three-month bonds in February.

The finance ministry successfully auctioned its last issue of 12-month Treasury bills in 1998.

Participants in the domestic market of primary dealers submitted bids totalling 408 billion drachmas. The ministry finally accepted bids totalling 220 billion.

The average weighed yield fell to 10.3 percent from 10.5 percent in the previous auction.

Athens News Agency

[07] Profit-taking halts rally of prices

Athens 30/12/1998 (ANA)

The general index ended 0.21 percent off to 2,665.12 points after gaining 7.6 percent in the previous six sessions. Traders said the market needed a correction to let some steam off the year-end rally. Turnover was heavy at 100.7 billion drachmas with turnover at 18,966,000 shares.

Sector indices were mixed. Banks fell 0.90 percent, Leasing were 0.63 percent down, Insurance eased 0.21 percent, Investment dropped 0.91 percent, Construction jumped 2.42 percent, Industrials fell 0.26 percent, Miscellaneous rose 1.19 percent and Holding gained 2.45 percent.

The parallel market index for small cap companies rose 0.41 percent. The FTSE/ASE 20 index fell 0.35 percent to 1,680.85 points.

Sysware, Heracles Cement, Mytilineos and Attica Enterprises were the most heavily traded stocks.

Broadly, decliners led advancers by 148 to 110 with another 17 issues unchanged.

Dimitriadis, Papoutsanis, Drukfarben, Aspis Bank, Korinth Spin Mills, Aegek, Bitros and Kyriakoulis Yachts hit the day's 8.0 percent limit up.

Technodomi, Sportsman, Elfico, Minerva, Sato, Bank of Athens, Benroubi, Macedonian Plastics and Nafpaktos Mills suffered the heaviest losses.

National Bank of Greece ended at 60,700 drachmas, Ergobank at 30,890, Alpha Credit Bank at 28,900, Ionian Bank at 15,000, Hellenic Telecoms at 7,200 Delta Dairy at 3,900, Intracom at 12,250, Titan Cement at 20,400, Hellenic Petroleum at 2,190 and Minoan Lines at 6,330.

Athens News Agency

[08] Hellenic Petroleum launches new petroleum products unit

Athens 30/12/1998 (ANA)

The Total Isomerism Unit, worth five billion drachmas, is the first of a series of projects promoted by Hellenic Petroleum to develop a new environment-friendly range of oil products in the framework of the Auto-oil I programme to be implemented in 1999 .

Athens News Agency

[09] Minister announces measures for agriculture

Athens 30/12/1998 (ANA)

The minister who was visiting the city of Hania, Crete also said that payment and control functions will be decentralised.

Mr. Anomeritis also announced the establishment of institutes for the support of products such as cotton, tobacco and olive oil aiming at intime subsidy payments to eligible farmers.

He added that in time institutes will be created for all agricultural products facilitating control and along with product based farmer's unions the policy making for each product will be facilitated as well.

Mr. Anomeritis said that Greece is obliged at this point to follow the cooperation regulations, which exist on a European level and function within the framework of the Union's policies.

Representatives of the farmers handed the minister a list of their problems requesting his assistance.

Athens News Agency

[10] LARKO employees block Athens-Lamia highway

Athens 30/12/1998 (ANA)

Employees representatives said they have exhausted the margins of sacrifices, as they have already accepted pay cuts.

A five billion drachma bailout plan submitted by the company in 1997 was approved in 1998, but has not taken effect yet.

The company is facing problems due to internationally low nickel prices.

Athens News Agency

[11] Plastic pipes sector shows upward trend

Athens 30/12/1998 (ANA)

The above developments are referred to in the latest sector study by the Foundation for Economic and Industrial Research (IOBE) titled the "Plastic Pipes Sector" prepared by Mr. I. Yiannaros and Mr. G. Zaharakis.

IOBE said that the sector's market has an oligopolistic structure and is headed by the Petzetakis Group.

A continuous effort by enterprises in the sector is being observed to shrink their total cost, while at the same time an increase in sales with the creation of new products is being attempted.

The sector's upward trend has been apparent in the '90s and has resulted in the activation of more businesses in the sector, without the oligopolistic nature of the sector being altered.

Athens News Agency

[12] Investors appear reserved in both bonds and exchange markets

Athens 30/12/1998 (ANA)

Most banks appeared quite reserved in the exchange market and tried with their position not to create a climate of panic in the market. Although the mark has reached a comparably high level, banks did not go ahead with selling. Consequently, for yet ano ther day whatever demand appeared was fully covered by the banks without it being necessary for the Bank of Greece to intervene.

With the exception of the ECU, the remaining currencies closed at a lower level than on Monday. The parity of the ECU was set at 329.660 drachmas compared to 329.470 drachmas on Monday, the mark closed at 167.990 drachmas from 167.835 drachmas and the d ollar at 281.190 drachmas from 281.630 drachmas.

The interest rates in the interbank market, primarily those of swaps, decreased slightly in the short-term periods in the region of 0.25-0.30 base units, pressured primarily by high liquidity prevailing. Consequently, the National Bank's overnight rate was set at 11.60 per cent, the monthly at 12 per cent, the bi-monthly at 11.90 per cent and the yearly at 10.80 per cent.

Athens News Agency

[13] Athens Foreign Exchange

Athens 30/12/1998 (ANA)

Parities in Drachmas

Banknotes            Buying  Selling
US Dollar            278.940 285.408
Can.Dollar           180.246 184.425
Australian Dlr       170.475 174.428
Pound Sterling       468.244 479.100
Irish Punt           414.458 424.067
Pound Cyprus         562.404 575.444
Pound Malta          691.669 720.489
Turkish pound (100)    0.073   0.076
French franc          49.687  50.839
Swiss franc          204.164 208.897
Belgian franc          8.077   8.265
German Mark          166.646 170.510
Finnish Mark          54.868  56.140
Dutch Guilder        147.843 151.271
Danish Kr.            43.777  44.792
Swedish Kr.           34.553  35.354
Norwegian Kr.         36.760  37.612
Austrian Sh.          23.695  24.244
Italian lira (100)    16.842  17.233
Yen (100)            242.028 247.640
Spanish Peseta         1.958   2.004
Port. Escudo           1.628   1.666

Foreign Exchange     Buying  Selling
New York             278.940 285.408
Montreal             180.246 184.425
Sydney               170.475 174.428
London               468.244 479.100
Dublin               414.458 424.067
Nicosia              562.404 575.444
Paris                 49.687  50.839
Zurich               204.164 208.897
Brussels               8.077   8.265
Frankfurt            166.646 170.510
Helsinki              54.868  56.140
Amsterdam            147.843 151.271
Copenhagen            43.777  44.792
Stockholm             34.553  35.354
Oslo                  36.760  37.612
Vienna                23.695  24.244
Milan                 16.842  17.233
Tokyo                242.028 247.640
Madrid                 1.958   2.004
Lisbon                 1.628   1.666

Athens News Agency

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