Athens News Agency: Daily News Bulletin in English, 99-03-17

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

CONTENTS

[01] Greece calls Commission's resignation an `act of political responsibility`

[02] Hellenic Aerospace signs deals for new Athens airport

[03] Three-year bond yield drops in auction

[04] Alpha Credit Bank buys Cypriot insurance firm

[05] Stocks end lower in profit-taking

[06] EFG Eurobank's share offer begins

[07] Gov't seeks to improve EU telecoms programme

[08] Local groups protest genetically modified cotton

[09] Tsohatzopoulos, Papantoniou on different shades of development strategy

[10] Athens Foreign Exchange

[11] Athens slams more Demirel claims over 'grey areas'

[12] Karamanlis meeting with US Defense Secretary Cohen

[13] 'November 17' resurfaces with Ocalan affair

[14] After Thessaloniki, Tipper Gore to arrive for events in Athens

[01] Greece calls Commission's resignation an `act of political responsibility`

Athens, 17/03/1999 (ANA)

"The Greek government supports transparency and wants to stren-gthen the role of the European Commission and ensure its operation," government spokesman Dimitris Reppas said.

The 20-member Commission, the EU's executive body, resigned in the early morning hours only days before a critical extraordinary summit on the Union's budget reforms, and after the release of a damaging independent report that accused the body of losing control of the Brussels bureaucracy, mismanagement and favouritism.

The resigned Commission will stay on in caretaker capacity until it is replaced.

Referring specifically to Greek Commissioner, Christos Papoutsis, Mr. Reppas said he enjoyed the confidence of the government and said the fact there were no claims against him in the independent report was a positive factor.

Mr. Reppas said he hoped the crisis would be overcome quickly and that the problem be rectified soon.

"Greece is in touch with the other countries regarding the replacement of those who have resigned and I hope that the member-countries (of the EU) would decide on a joint position on this," he said.

Asked whether Greece would recommend the reappointment of Mr. Papoutsis, the government spokesman said the issue was whether the Commissioners who had resigned would accept to reassume their posts.

"The resignation of the members of the European Commission, although creating a climate of an institutional crisis, indicates that despite problems, the institutions and procedures of the EU are operating," Foreign Minister George Papandreou said in a statement.

He added the Greek government was in favour of bolstering transparency procedures, democratic controls, the powers of the European Parliament and the democratic operations of the European Commission.

Echoing the government spokesman, Alternate Foreign Minister Yiannos Kranidiotis said the resignation was an act of political responsibility and sensitivity.

"It will not adversely affect the course of Greece towards economic and monetary union or the country's interest or goals," he added.

Mr. Kranidiotis also met with the ambassadors of the other 14 EU member- states for an exchange of views on issues related to EU developments, the Commission's resignation and "Agenda 2000", among others.

On his part, National Economy Minister Yiannos Papantoniou said the Commission's resignation had come "at a critical juncture for the European Union's future in view of the negotiations to complete 'Agenda 2000'."

"I hope that a solution will soon be found that will ensure the continuity of the Commission with initiatives and proposals at the critical EU summit in Berlin," he added.

Mr. Papantoniou said Commission President Jacques Santer had already set in motion procedures for more efficient supervisory systems in the management of the 15-nation bloc's resources.

Turning to the summit, Mr. Papantoniou said Greece was determined to wage a "tough battle" in the EU for the resources of the Community Support Framework's structural funds and, if necessary, would "even use its veto to ensure satisfactory financing from the structural funds."

He said the Greek government would not back down on its positions and would make use of the "extreme negotiating means (veto) if the situation calls for it".

In discussing the north-south disagreements of cutbacks in structural funds, he said the poorer southern countries' "front was firm", expressing an opinion that Greece had "two powerful negotiating tools": the fact that it is the EU's 'poorest' member-state and its "spectacular performance" in fiscal restructuring, as he called it.

Turning to the Community Support Framework resources for agriculture, Mr. Papantoniou said the matter was nearly settled, and in a manner satisfactory to Greece's national interests. He said there would be an increase in inflows to agriculture in the pe riod 2000-2006 despite the reduction of the overall expenditure for Common Agricultural Policy (CAP).

Regarding materialisation of the Second Community Support Framework (1994- 1999), the minister said Greece had presented such an impressive performance that it was considered the "EU champion in earmarked credits and payments".

Based on statistics for 1994-98, Mr. Papantoniou said 85.6 per cent of the Regional Development Fund resources earmarked for the country had been secured, as had 82.2 per cent of the earmarked structural funds resources.

During that same period, he added, expenditures amounted to 62.9 percent of the Regional Development Fund financing and 61.5 per cent of the overall funds' credits. This put Greece in 4th place among the 15 Eu member- countries regarding the securing of credits, placing it above even such countries as Italy, Germany and Spain.

With respect to payments, it was in 5th place among the 15 member states, he continued.

The minister anticipated that 80 per cent of the total seven trillion drachmas in credits earmarked for Greece under the Second Community Support Framework will have been absorbed by the end of the year, while the remaining 20 per cent would be absorbed next year.

At the same time, he noted, materialisation of the Third Community Support Framework (2000-2006) would begin being materialised.

Papoutsis : Meanwhile, in an ANA dispatch from Brussels, Mr. Papoutsis said the European Commission's resignation is an act of "democratic sensitivity and political responsibility", although he noted that collective responsibility does not mean collective guilt.

In a statement yesterday morning in the wake of the sudden crisis created by a report prepared by the independent committee regarding mismanagement and favouritism amidst its ranks, Mr. Papoutsis said political preconditions no longer existed for the European Commission to function effectively at a crucial moment for the course of Europe.

"This decision defends the Commission's prestige and political credibility as an executive body of the European Union," he said, and went on to add that "I hope that the European Commission will emerge strengthened with this political decision."

Mr. Papoutsis said that what Europe needs at present is democratic control, transparency, good and effective management and consolidation of the role of European public administration.

"A strong Commission is the European Parliament's natural ally and a precondition for securing democratic control in the framework of the EU. A strong Commission is a basic precondition to consolidate democracy in the EU," he went on to say.

Mr. Papoutsis told reporters that since last December, when the crisis had broken out with the European Commission and the proposal for the vote of censure at the European Parliament, he had proposed the Commission's resignation as the best solution, ad ding that he also supported this position during Monday's session.

Schroeder in Athens : German Chancellor Gerhard Schro-eder will hold talks with Prime Minister Costas Simitis in Athens today in light of the upcoming Berlin summit.

The visit by the German leader, who is also the European Union's current president, is targeted at achieving a rapprochement in the views of member- states to facilitate a successful outcome to the summit.

Bonn's EU presidency attributes major importance to the Berlin summit, scheduled to take place on March 24-25, on the agreement concerning the "Agenda 2000."

A meeting held at the Maximos Mansion in Athens yesterday under the Mr. Simitis' chairmanship and the participation of relevant ministers was related to the "Agenda 2000" and the forthcoming summit. No statements were made afterwards.

According to reports and the national economy minister, however, the Greek side is expected to maintain a steadfast position over the issue of Structural Fund and EU budget resources. The front created by the southerners has been unbreakable so far.

Opposition : Referring to the Commission's resignation, an announcement by the main opposition New Democracy said the development creates "an institutional and political crisis which ND believes must be hand-led as soon as possible."

"The absence of the powerful Commission at this phase might possibly harm the interests of both the European Union in general and of medium and smaller countries, such as Greece, in particular," the statement read.

The announcement said that ND believes that the Commission must not be weakened. However, it is necessary for it to be restructured and transparency, good management and control, which were lacked till now, to be secured with reforms which must be carried out.

The Coalition of the Left and Progress (Synaspismos) also issued an announcement, expressing scepticism over developments in the European Commission.

"The resignation of the European Commission proves the absence of institutions of democracy, control and transparency in European Union organs in the most explosive way," Synaspismos' announcement read.

Athens News Agency

[02] Hellenic Aerospace signs deals for new Athens airport

Athens, 17/03/1999 (ANA)

The new company will handle all Falcon type jets produced by Dassault Aviation and other aircraft used in southern Europe and the eastern Mediterranean.

Hellenic Aerospace Industry and Dassault have worked together on projects for the last 20 years.

The two firms are currently studying ways of expanding their cooperation with a more ambitious strategic alliance covering the defence and civil aviation sectors.

Athens News Agency

[03] Three-year bond yield drops in auction

Athens, 17/03/1999 (ANA)

The average weighed yield fell to 7.10 percent from 7.56 percent in the previous auction on January 19.

Bids submitted totalled 604.7 billion drachmas, which was 3.6 times the asked sum.

Athens News Agency

[04] Alpha Credit Bank buys Cypriot insurance firm

Athens, 17/03/1999 (ANA)

The move follows the Greek private bank's entry into the Cypriot market through Alpha Bank Limited.

Metropolitan will change its name to Alpha Insurance and enter the group of the same name in Greece.

The firm to emerge will work with Alpha Bank Limited in the distribution of life insurance and general insurance products.

Athens News Agency

[05] Stocks end lower in profit-taking

Athens, 17/03/1999 (ANA)

Traders said the market needed a correction and that it was unaffected by the European Commission's resignation.

The general index ended 0.75 percent off at 3,598.09 points after moving in a range of 115 points. Turnover was 166.4 billion drachmas and volume 26, 873,984 shares.

Sector indices suffered losses.

Banks fell 0.33 percent, Leasing dropped 1.79 percent, Insurance ended 0.19 percent off, Investment ended 0.63 percent down, Construction eased 0.37 percent, Industrials fell 1.60 percent, Miscellaneous dropped 1.85 percent and Holding fell 2.59 percent .

The parallel market index for small cap companies ended 0.73 percent off while the FTSE/ASE 20 index ended 0.37 percent down at 2,246.84.

Broadly, decliners led advancers by 210 to 68 with another 12 issues unchanged.

Mouriades, Macedonian Textiles, National Bank of Greece and Delta Inform were the most heavily traded stocks.

Mouriades sold 1.2 million shares to the David group at 450 drachmas per share.

Plesio Computers, Elfico, Mouriadis, Bank of Greece, Ionian Hotels, Elmec Sport, Commercial Invest, Sarandopoulos and Euromedica hit the daily 8.0 percent limit up.

Development Invest, Baragis, Kekrops, Aspis Invest, Alysida, Desmos, Sato, Xifias and Texapret suffered the heaviest losses, hitting the daily 8.0 percent limit down.

National Bank of Greece ended at 22,650 drachmas, Alpha Credit Bank at 38, 705, Ergobank at 26,050, Ionian Bank at 23,050, Titan Cement at 25,400, Hellenic Petroleum at 2,630, Intracom at 19,950, Minoan Lines at 7,500, Panafon at 9,100 and Hellenic Telecoms at 7,900.

Bond prices edge up, demand seen for drachma : Bond prices nosed up and investors sought drachmas, again driving up the national currency, traders said.

Domestic markets brushed off a mass resignation by the European Union's Commission.

The new 10-year bond was trading at 103.20 and the previous 10-year issue at 117.75.

Electronic trade was light at 39 billion drachmas, up from a scant 15 billion drachmas in the previous session.

The drachma gained in the foreign currency market, prompting the central bank to intervene to curb its ascent through the purchase of around 20 million euros at its daily fix.

The euro was set at 321.310 drachmas at the fix from 321.400 drachmas on Monday.

Athens News Agency

[06] EFG Eurobank's share offer begins

Athens, 17/03/1999 (ANA)

National Bank is the coordinator and an underwriter for the share offer, which ends on Friday.

The share price is 8,500 drachmas, and the allocation to buyers will be announced on March 22.

Athens News Agency

[07] Gov't seeks to improve EU telecoms programme

Athens, 17/03/1999 (ANA)

He was speaking on Crete after a meeting of a committee that is monitoring the programme, which falls under the second community support framework.

The programme mainly involves infrastructure and projects handled by the state-owned Hellenic Telecommunications Organisation.

A 2.5 billion drachma telecoms project aimed at private investors is to be tendered in April that seeks 50 percent funding for the development of pilot telematics applications in the transport sector.

Athens News Agency

[08] Local groups protest genetically modified cotton

Athens, 17/03/1999 (ANA)

The opponents of the proposal have issued announcements calling on the prefectural authorities not to grant permission "for such kinds of experiments."

"We want to know that you who administer our affairs are considering only the good of our prefecture and not the financial interest of certain agrochemical concerns who provenly pose a world threat," the children of Lamia's 6th primary school wrote in a letter to the Fthiotida prefect Triantaphyllos and prefectural councillors.

"We pupils will feel proud if your reply is negative," they added.

Owing to the opposition, the Fthiotida prefectural council last night decided to suspend taking a decision on the proposal so that it could be briefed in greater detail.

Prefectural officials meanwhile were quick to underline that the proposal concerned only "trial cultivations".

Last year, permission was given for the cultivation of GM cotton on an area of 10,000 square metres, but the crop was never harvested due to its destruction in bad weather.

The controversy over GM crops and food has been fuelled by the fears of some scientists that they pose a threat to biodiversity, have implications for wildlife and the environment, may cause a build-up of antibiotic resistance and possible genetic damage to animals and humans.

Athens News Agency

[09] Tsohatzopoulos, Papantoniou on different shades of development strategy

Athens, 17/03/1999 (ANA)

Mr. Tsohatzopoulos, addressing a youth event yesterday organised for the country's drive toward the European Monetary Union (EMU), said "the drive toward EMU is a one-way street, although the problems of the country will not be resolved if we don't have our own growth strategy...The government's economic achievements...which secure the country's EMU accession are beyond any doubt. The social and growth issues are what are burning us...".

The views of the defence minister, however, were not shared by National Economy Minister Yiannos Papantoniou, who in his address at the same event said "it is unthinkable that some, as a matter of fact, some high-level cadres, challenge the performance of the Simitis administration in the growth sector."

Mr. Papantoniou, rejecting claims that the government is only interested on "economic indexes", stressed that "there are people behind those indexes: the low-income pensioners, the low-income wage-earners, young couples and farmers."

Athens News Agency

[10] Athens Foreign Exchange

Athens, 17/03/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             293.275 300.075
Can.Dollar            191.476 195.915
Australian Dlr        183.857 188.120
Pound Sterling        475.228 486.246
Irish Punt            404.716 414.100
Pound Cyprus          550.659 563.426
Pound Malta           706.841 736.293
Turkish pound (100)     0.074   0.077
French franc           48.591  49.718
Swiss franc           199.412 204.035
Belgian franc           7.901   8.085
German Mark           162.969 166.747
Finnish Mark           53.608  54.851
Dutch Guilder         144.638 147.991
Danish Kr.             42.864  43.858
Swedish Kr.            35.553  36.378
Norwegian Kr.          37.224  38.087
Austrian Sh.           23.164  23.701
Italian lira (100)     16.461  16.843
Yen (100)             247.643 253.385
Spanish Peseta          1.916   1.960
Port. Escudo            1.590   1.627

Foreign Exchange      Buying  Selling
New York              293.275 300.075
Montreal              191.476 195.915
Sydney                183.857 188.120
London                475.228 486.246
Dublin                404.716 414.100
Nicosia               550.659 563.426
Paris                  48.591  49.718
Zurich                199.412 204.035
Brussels                7.901   8.085
Frankfurt             162.969 166.747
Helsinki               53.608  54.851
Amsterdam             144.638 147.991
Copenhagen             42.864  43.858
Stockholm              35.553  36.378
Oslo                   37.224  38.087
Vienna                 23.164  23.701
Milan                  16.461  16.843
Tokyo                 247.643 253.385
Madrid                  1.916   1.960
Lisbon                  1.590   1.627

Athens News Agency

[11] Athens slams more Demirel claims over 'grey areas'

Athens, 17/03/1999 (ANA)

While noting that the Turkish threats remained in the form of verbal attacks, Mr. Reppas warned that if Ankara progressed to taking military action, "the tension will prove to be unfavourable for Turkey".

Asked by reporters if there had been any recent dangerous development in the Aegean, Reppas replied that there had been a number of infringements by Turkish warplanes which, however, did not constitute a "dangerous development".

He added though that "temperatures are running high" in the region and could, under certain circumstances, "result in a fire".

The spokesman meanwhile denied reports that Turkey had put forward a proposal for its troops to pass through Thessaloniki on their way to join the NATO force in the Former Yugoslav Republic of Macedonia (FYROM).

If such a proposal had been made, he sa id, it would have been rejected.

Asked about recent developments in Turkey and the activities of the Kurdistan Workers' Party (PKK), Mr. Reppas said no more blood of innocent people should be shed and stressed the need for a peaceful solution to the Kurdish problem.

Athens News Agency

[12] Karamanlis meeting with US Defense Secretary Cohen

WASHINGTON, 17/03/1999 (ANA - E. Nikolaou)

Their hour-long talk focused on NATO's role, developments in Kosovo, the Cyprus issue, bilateral relations and the need to upgrade them, as well as the role Washington can play in the wider region.

Mr. Karamanlis said explained that Greece is a country which both desires, and in practice, has a stabilising role in the region.

"We do not desire changes in borders. We want wider cooperation both at bilateral and multilateral level," he said.

Mr. Karamanlis added that even if the two countries agree on basic pursuits which are stability and stabilisation in the region, this does not mean there is an identity of views. He further said that this does not mean that we must not have corridors of communication, adding that the US is an important country "which must know what we believe, what we feel and what we are pursuing."

On his part, Mr. Cohen raised the issue of the "November 17" terrorist group's activities and conveyed Washington's concern.

He said the elusive terrorist cell has been active for many years in Greece, with repercussions on inter-state relations.

Mr. Karamanlis stressed the need for NATO enlargement with the accession of more countries. He also raised the issue of Greek-Turkish relations, saying Athens desires Turkey's European orientation, although Ankara must first respect international law an d abandon threats to use force.

Finally, Mr. Karamanlis attended a working lunch given by the chairman of the US House of Representatives' international relations committee, Rep. Ben Gilman. He was due to leave for Athens last night.

Athens News Agency

[13] 'November 17' resurfaces with Ocalan affair

Athens, 17/03/1999 (ANA)

In an eight-page proclamation sent to the Athens daily "Eleftherotypia", the notorious urban guerrilla group also accused the European Union of maintaining a policy on the Kurdish issue that was "in full contravention" of Article 35 of the Human Rights Proclamation of the French Revolution.

The group blamed PM Costas Simitis of being chiefly responsible for Ocalan's betrayal, but it also laid responsibility on "certain (Kurdish Workers' Party) PKK officials in Greece" and urged the Kurdish organisation to "take steps so as not to suffer more blows".

The organisation called Ocalan's arrest part of a "wider plan of US imperialism", while it also provided a lengthy analysis of the Kurdish issue internationally, the "dissolution of the Greek State" and the "bankruptcy of the political world."

November 17 also ridiculed Greek and American authorities' efforts to uncover the organisation. Referring exclusively to Washington, the proclamation said that in recent years, 1,500 serious anti-American actions had taken place in the world while only five or six had been solved.

Athens News Agency

[14] After Thessaloniki, Tipper Gore to arrive for events in Athens

Athens, 17/03/1999 (ANA)

Ms Gore's address focused on the "Peace Corps" - the body of volunteers set up by John F. Kennedy in the early '60s and still active today around the world.

Several ministers and the US ambassador to Greece Nicholas Burns were present at the event.

Ms Gore will visit Athens tomorrow where she will deliver an address at the American College in Athens, while later in the day she will be received by the President of the Republic Kostis Stephanopoulos.

In a related development, the Communist Party of Greece (KKE) yesterday strongly condemned US policy in the Balkans on the occasion of a visit by Ms Gore.

Athens News Agency

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