Athens News Agency: Daily News Bulletin in English, 99-04-01

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

CONTENTS

[01] Simitis emphasises need for political solution to Kosovo

[02] Central bank sees inflation around 2.0 pct by mid-summer

[03] Gov't anxious over economic impact of lasting Kosovo crisis

[04] Stocks slump on Kosovo woes

[05] Foreign currency market edgy, bonds steadier

[06] Flags of convenience have failed, minister says

[07] Attica Enterprises orders two more 'superfast' vessels

[08] Athens Foreign Exchange

[09] Tsohatzopoulos: Any change of Balkan borders inconceivable

[10] Athens satisfied with Tirana assurances to safeguard ethnic Greeks' properties

[11] China's Li Peng holds talks with Greek leadership

[12] Turkish plane allowed to enter Greek air space

[13] Mitsotakis,Gorbachev on Kosovo

[14] Possible Simitis visit to Cyprus

[15] Greek-Armenian agriculture cooperation

[01] Simitis emphasises need for political solution to Kosovo

Athens, 01/04/1999 (ANA)

Addressing a special session convened to discuss developments over Kosovo, he said Greece should not at the current moment resort to actions or options in the "heat of the moment", saying such an event will have disastrous consequences for Greece's fut ure.

He advised cool-headedness, alertness and decisiveness, all elements of a "responsible and developed country of the European system, (a country) standing at its neighbours' side," as he said.

Mr. Simitis noted that Greece insisted on respect for the principles of human and minority rights, respect for the territorial integrity of countries, the inviolability of borders and the peaceful resolution of differences on the basis of the United Nat ions charter.

"Referring to those principles is not rhetorical for Greece, which lives under Turkey's aggressive behaviour in the Aegean and the continuing international crime of the Turkish occupation of a major part of Cyprus," he added.

The Greek PM again supported expanded autonomy to Kosovo, but strictly within the borders of Yugoslavia and with total respect for human rights for all communities in the province.

"In this framework, Greece has made clear in every direction that will not participate in military operations in the region," he said.

Opposition : On his part, main opposition New Democracy leader Costas Karamanlis said he would like the Greek position on developments in the Balkans to be more "determined and clear".

Mr. Karamanlis analysed the present situation in Kosovo, attributing responsibilities to all the sides involved. He said the two conflicting sides in the region have repeatedly fuelled the flames.

"Instead of curbing the crisis, the superpower (US) is tending to widen it, while the European Union is being dragged instead of leading. It is not the Europe we have envisaged, but a Europe of accountants. It has disappointed and is disappointing," he said.

Mr. Karamanlis said that in the face of this situation, Greece should have processed proposals which it should have put forward steadfastly and with determination, especially after the Berlin summit. However, he said, it is never too late for a Greek in itiative.

"Despite the fact our country cannot turn into a major player our geographical position legitimises us in undertaking initiatives. The Greek proposal could include an immediate ceasefire by all sides, respect for human rights and autonomy in Kosovo, talks on the Rambouillet basis on condition, however, of the inviolability of borders and the eradication of the secessionist solution through a referendum," he said.

He said Greece should have explained to its partners that respect for human rights is an inviolable condition for inter-state understanding, but not at the expense of peace and stability.

Lastly, Mr. Karamanlis drew the government's attention to possible developments in northern Epirus, the possibility of a wave of refugees being created (for which the Former Yugoslav Republic of Macedonia sould be supported on our part to enable it to a bsorb it) and called for initiatives to be undertaken for an understanding with the other states in the region.

Communist Party of Greece (KKE) Secretary General Aleka Papariga called on the government to withdraw its signature from NATO's intervention (in Kosovo), leave aside its ostrich policy and not participate in extortions for the Rambouillet agreement to pass.

"The truth is that the minorities are being used in light of NATO's new doctrine and to punish countries which are resisting the new world order. Yugoslavia is the only country in the region 'which has not joined the fold', while NATO is pursuing the ov erthrow of (Yugoslav President Slobodan) Milosevic to have 'straw men' of the (Albanian PM) Pandeli Majko- type take his place," she said.

Ms Papariga said the solution is an end to the war and from then on it is up to the people of Yugoslavia to decide.

Coalition of the Left and Progress leader Nikos Constantopoulos proposed the adoption of a unanimous resolution on the part of the Greek Parliament on a condemnation of NATO bombings of Yugoslavia.

He also called on the government to utilise the Greek people's opposition to these developments in order to reject pressures being exerted on it on behalf of western partners, to suspend the operation of NATO bases immediately, to stop all facilities it is providing and reject all demands for land forces to cross through Greece.

"The US must understand now that the role of gendarme in Europe is not acceptable. We must say no to the bombings and yes to negotiations," he said.

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas criticised the US, saying that "it is playing the absolute role of judge and gendarme."

He said peoples will resist what the US is demanding "which is so immoral and outrageous that it is leading unavoidably to wars against all to the very end."

Athens News Agency

[02] Central bank sees inflation around 2.0 pct by mid-summer

Athens, 01/04/1999 (ANA)

Lucas Papademos, the central bank's governor, yesterday submitted to parliament his six-monthly report on monetary policy for 1998 and 1999.

Replying to a reporter's question, Mr. Papademos said that the Yugoslav crisis would have no direct repercussions on the economy if it was fairly short-lived, but some edginess was likely.

"What matters is our own attitude, and we should be cool-headed so as to avoid any aggravation of the situation. Our attitude must be cautious to avoid creating difficulties without reason," he said.

Mr. Papademos also said the Bank of Greece had the means, including foreign currency reserves, to support the national currency if it came under new pressure.

Expressing optimism on meeting EU convergence criteria, he said the purpose of this year's monetary policy was to achieve price stability at a rate that did not exceed 2.0 percent.

According to the bank's report, monetary policy again would be tight in 1999.

Credit expansion in the private and public sector should be curbed to growth of 7.0-9.0 percent against 1998, the report said.

It added that if necessary, the central bank would not hesitate to take extra measures to contain credit expansion as part of its anti-inflationary policy.

In order to further aid the decline in inflation, the central bank would keep the drachma high against its central parity in the European Union's exchange rate mechanism. The parity is 353.1 drachmas to the euro.

When inflation and interest rates fell further, the drachma would, in the mid-term, edge down towards its parity, arriving at the level by the end of 2000.

The factors that could hurt the decline in inflation were oil prices; new international market crises coupled with an anticpated slowdown in the global economy; and the absorption in the inflation rate of cuts in indirect taxation, which could lead to a small rise in the rate.

At the same time, the right fiscal and structural changes had to be made in the economy accompanied by a tight prices and incomes policy.

Parliament President Apostolos Kaklamanis said that if calm and prudence prevailed any speculative attacks could be met.

Turning to the Kosovo crisis, Mr. Kaklamanis called for an end to hostilities and the commencement of efforts for a political solution in order to avert more tragedy.

Athens News Agency

[03] Gov't anxious over economic impact of lasting Kosovo crisis

Athens, 01/04/1999 (ANA)

Mr. Papantoniou pointed to difficulties in implementing the government's current economic policy linked to duration of the crisis and any mass influx of refugees.

Speaking during a press conference, he said that there were fears that a crisis in Kosovo could hit European and global economies and in particular financial markets, a prospect that would indirectly affect the country.

Beyond any national or economic factors, Greece therefore had more general reasons for seeking an end to military operations in Yugoslavia and resuming the peace process, he said.

Mr. Papantoniou referred to Europe's "inability to have its own polical say" on Yugoslavia. Europe was a "political dwarf" compared to the United States, he said.

"A strong currency needs a strong government", Mr. Papantoniou said about the euro.

He urged speedier procedures towards a political and defence unification of Europe in coming years.

The minister said that developments in Yugoslavia would not have any direct impact on the economy, and in particular exports towards western Europe, which had been transported via Italy since the break-up of the former Yugoslavia.

He said Greek tourism was not affected by the crisis and that hotel reservations had increased in the last few weeks.

More economic changes after 2000 elections : A new round of structural changes in the economy would start after national elections due in 2000, Mr. Papantoniou said.

He also hinted at the likelihood of the privatisation of Commercial Bank of Greece being part of the second round of changes.

The second phase would include reform of the social insurance system and a continuation of privatisation, the minister said.

Turning to the labour market, he noted that the government had already implemented a new framework for labour relations and that there were no plans to change the law.

Commenting on the privatisation of Ionian Bank, Mr. Papantoniou said that it was successful, adding that the sale price of 272 billion drachmas was much higher than bids submitted in the first annulled tender last August.

"The repeat of the tender justifies the policy of privatisation recommended by the ministry and implemented by the government," Mr. Papantoniou noted, adding that the same policy would be followed in future.

The high price in the sale of Ionian Bank would strengthen the reserves of social insurance funds that are shareholders in Ionian, and therefore their ability to continue paying pensions, he said.

New call on companies to aid anti-inflation drive : Mr. Papantoniou also urged companies to support the government's effort to reduce inflation to the Maastricht criterion of 2.0 percent by the end of the year.

He said businesses must freeze prices and contain their profit margins, which, in some cases, were exceptionally high.

Mr. Papantoniou added that pension increases were a priority issue for the government before drafting next year's budget, but no early decision was scheduled.

Finally, Mr. Papantoniou said that investments until 2006 would total 15 trillion drachmas, including European Union funding, the national contribution and private capital.

The investments would spur growth to 5.0 percent of gross domestic product in the first few years of the first millennium, he added.

Greece's allocation in structural funds agreed at the recent EU Berlin summit was 9.0 trillion drachmas for 2000-2006.

Athens News Agency

[04] Stocks slump on Kosovo woes

Athens, 01/04/1999 (ANA)

Traders said investors largely ignored a favourable report by the European Commission on the Greek economy that paves the way for the country's participation in the euro zone.

In addition, they appeared to brush off estimates by the World Bank that the country's economic strength would accelerate foreign capital inflows to the Athens Stock Exchange in coming months to an estimated 3.6 billion dollars.

The general index ended 3.84 percent off at 3,376.37 points. It showed a 0.04 percent decline in March.

The market has lost 10.19 percent since the start of NATO air strikes in Kosovo.

March's turnover totalled 3.8 billion drachmas, up from 2.7 billion in February.

Sector indices suffered losses yesterday.

Banks fell 4.70 percent, Leasing dropped 5.22 percent, Insurance eased 2.37 percent, Investment ended 4.22 percent off, Construction plunged 4.95 percent, Industrials fell 3.52 percent, Miscellaneous ended 3.97 percent down and Holding eased 1.01 percen t.

The parallel market index for small cap companies ended 5.71 percent lower.

Turnover was 141.543 billion drachmas and volume 21,194,203 shares.

Broadly, decliners led advancers by 248 to 26 with another 10 issues unchanged.

Thessaliki, Naoussa, National Bank and Alpha Credit Bank were the most heavily traded stocks.

Fanco, Vis, Tasoglou, Thessaliki, Oinerga, Cardico, Benroubi, Boutaris, European Credit and Texapret scored the biggest percentage gains.

Olympic Techniki, Ionian Bank, ETVA Leasing, Levenderis, Ionian Hotels, Sarandopoulos, Ellatex, Commercial Invest, Pouliadis and Ionian Invest suffered the heaviest losses hitting the day's 8.0 percent limit down.

The FTSE/ASE 20 index fell 3.73 percent to 2,093.86 points.

National Bank of Greece ended at 20,450 drachmas, Alpha Credit Bank at 20, 070, Ergobank at 22,600, Ionian Bank at 21,804, Titan Cement at 23,000, Hellenic Petroleum at 2,360, Intracom at 17,600, Minoan Lines at 7,000, Panafon at 7,850 and Hellenic Telecoms at 7,335.

Athens News Agency

[05] Foreign currency market edgy, bonds steadier

Athens, 01/04/1999 (ANA)

The latest 10-year bond was at 102.90. The yield spread between the paper and Germany bunds fell to 1.90 percent from 1.92 percent a day earlier.

Electronic trade was 53 billion drachmas from 93 billion drachmas in the previous session.

In the foreign currency market, robust demand was seen for euros in morning trade.

At the central bank's daily fix, the euro ended at 325.950 drachmas from 325.300 drachmas in the previous session.

Athens News Agency

[06] Flags of convenience have failed, minister says

Athens, 01/04/1999 (ANA)

He was commenting on a joint statement by the Greek Shipowners Union and London-based Committee on Monday criticising the government's merchant marine policy.

Mr. Soumakis underlined the state's support for the maritime industry and for the welfare of Greek sailors.

He also noted that the Greek shipping registry had increased last year, and its members were making continuous efforts to modernise their fleets.

The minister said that plans to list Greek shipping companies on the Athens Stock Exchange would have to be carefully examined to ensure the Greek merchant marine's credibility, and meetings on the issue would be held this week.

Athens News Agency

[07] Attica Enterprises orders two more 'superfast' vessels

Athens, 01/04/1999 (ANA)

The group's orders amount to six vessels in all (four have already been ordered) whose delivery will start in the first half of 2000 and will be completed in 2001.

The company said the investment totals US$650 million. Financing for the six ships has been agreed with the German bank Kreditanstalt fur Wiederaufbau (KfW).

Attica Enterprises is already using four superfast ships on the Greece- Italy routes.

The computer software manufacturer Singular S.A. yesterday announced it has signed five billion drachmas worth of new state and private contracts, resulting in a revenue increase of 45 per cent over the past nine months.

Athens News Agency

[08] Athens Foreign Exchange

Athens, 01/04/1999 (ANA)

Parities in Drachmas

Banknotes              Buying  Selling
US Dollar              301.469 308.458
Can.Dollar             197.487 202.066
Australian Dlr         189.968 194.372
Pound Sterling         486.060 497.330
Irish Punt             410.560 420.079
Pound Cyprus           556.452 569.354
Pound Malta            727.171 757.470
Turkish pound (100)      0.073   0.076
French franc            49.293  50.436
Swiss franc            202.517 207.212
Belgian franc            8.015   8.201
German Mark            165.323 169.156
Finnish Mark            54.382  55.643
Dutch Guilder          146.727 150.129
Danish Kr.              43.537  44.546
Swedish Kr.             36.440  37.285
Norwegian Kr.           38.781  39.680
Austrian Sh.            23.498  24.043
Italian lira (100)      16.699  17.087
Yen (100)              253.129 258.998
Spanish Peseta           1.943   1.988
Port. Escudo             1.613   1.650

Foreign Exchange       Buying  Selling
New York               301.469 308.458
Montreal               197.487 202.066
Sydney                 189.968 194.372
London                 486.060 497.330
Dublin                 410.560 420.079
Nicosia                556.452 569.354
Paris                   49.293  50.436
Zurich                 202.517 207.212
Brussels                 8.015   8.201
Frankfurt              165.323 169.156
Helsinki                54.382  55.643
Amsterdam              146.727 150.129
Copenhagen              43.537  44.546
Stockholm               36.440  37.285
Oslo                    38.781  39.680
Vienna                  23.498  24.043
Milan                   16.699  17.087
Tokyo                  253.129 258.998
Madrid                   1.943   1.988
Lisbon                   1.613   1.650

Athens News Agency

[09] Tsohatzopoulos: Any change of Balkan borders inconceivable

Athens, 01/04/1999 (ANA)

He will visit Bucharest, Sofia and Skopje, in that order.

Mr. Tsohatzopoulos stated yesterday that Greece was prepared to provide humanitarian assistance to Yugoslavia - regardless of the fact that the neighbouring country had not yet sumbitted a relevant request - and accept a limited a number of refugees, as the objective was for them to remain near their homes with a view to returning when a solution was found.

Regarding NATO bombings of Yugoslavia, he said in no phase did planning envisage the deployment of ground forces, while he expressed a view that this would not happen.

"NATO forces stationed in the Former Yugoslav Republic of Macedonia (FYROM) arrived there for the protection of the OSCE observers that were in Kosovo, and to supervise a possible peace agreement - if and when there was one - with the guarantees of the international community," he said. He reiterated that Greece was not participating in the military operations against Yugoslavia, which he predicted would not lead to the desired result.

"Greece supports any initiative aimed at a political solution of the problem, which is the only feasible one," he said.

He also expressed a view that it was only a matter of time when the two sides of the conflict would return to the negotiating table.

Furthermore, he described as most unfortunate references to a possible Greek-Turkish conflict as a result of the Kosovo crisis. Finally, he emphasised Greece's vehement opposition to any change of borders in the Balkans.

"Any deep-seated thought for a change of borders in the Balkans in the name of minorities' rights is inconceivable, as this would open the doors and windows to blow the Balkans sky-high, but also the entire security edifice in Europe," he warned.

Athens News Agency

[10] Athens satisfied with Tirana assurances to safeguard ethnic Greeks' properties

TIRANA, 01/04/1999 (ANA - P. Haritos)

He made the statement after a meeting with Albanian Prime Minister Panteli Majko, and during a brief visit to Tirana.

Mr. Papandreou also expressed Athens' full solidarity with the Albanian government during the present difficult phase.

"The problems which Albania is facing from the influx of more than 100,000 refugees are serious, and urgent solutions are needed to secure the country's stability," he said.

Mr. Papandreou accompanied the first shipment of Greek humanitarian aid for the refugees, consisting of 20 tons of foodstuffs, 20 prefabricated houses, two ambulances, pharmaceuticals and blankets for 5,000.

According to the Greek government's plan, more aid is due aboard air force planes in the next few days.

Mr. Papandreou said he stressed to Albanian President Rexhep Mejdani, whom he also met, that the Greek government's standing position, in line with that of international organisations, was that refugees should remain as close to their homes as possible.

Mr. Mejdani thanked Athens for the humanitarian aid, and noted that all support at this point in time was necessary.

After his contacts with Albanian officials, Mr. Papandreou called on Archbishop of Tirana and All Albania Anastasios, who told reporters that the Church had already sent urgent humanitarian aid to refugees from Kosovo, with more following.

Meanwhile, Albanian Foreign Minister Paskal Milo, in statements to the ANA, expressed a complaint regarding Greek press coverage of the events in Kosovo, saying that most media had excessively relied on the official Belgrade line, without devoting propo rtionate attention to news coming out of Albania, both as regards the wave of refugees and the resulting problems for Tirana.

Gov't spokesman : In Athens, government spokesman Dimitris Reppas revealed earlier that Prime Minister Costas Simitis spoke yesterday with his Albanian counterpart Panteli Majko.

Mr. Reppas said Mr. Simitis had underlined to Mr. Majko the government's "abiding interest" in the interests and property belonging to the Greek minority in the southern part of that country and requested these rights not be harmed in the process of relieving the plight of the Kosovar refugees.

Many of the ethnic Greeks from Albania are working and residing in Greece, in the wake of financial and social turmoil in Albania over the past few years.

Mr. Majko assured the Greek prime minister that the refugees heading to the south would not harm the interests of the Greek minority.

Alternate Foreign Minister Yiannos Kranidiotis will be in Skopje for talks on how to alleviate the refugee crisis today, the government spokesman said.

Defence Minister Akis Tsohatzopoulos, meanwhile, will touch on these issues during his visit to Bucharest, Sofia and Skopje.

Mr. Reppas reiterated that the Greek government had not been asked for permission to move further NATO troops through its territory.

He said that the Russian initiative to mediate a ceasefire had indicated that both sides were far from achieving agreement but called again for a solution to the problem "as soon as yesterday".

He also reiterated Greece's opposition to the use of NATO land forces and said Greece supported the existence of the Former Yugoslav Republic of Macedonia (FYROM) within its present borders.

Foreign Minister George Papandreou said that foreign ministry officials from the countries involved in an inter-Balkan working group on the Kosovo crisis were meeting in Bucharest yesterday and would consider whether to call for a ministerial meeting of the Inter-Balkan group.

He said that in talks he had had with his counterparts from the Balkans, Romania, Bulgaria and Turkey were willing to receive a specific number of refugees.

Former PASOK FMs : Before leaving for Tirana, Mr. Papandreou conferred with former PASOK foreign ministers, including Karolos Papoulias, Yiannis Haralambopoulos, George Romeos and Yiannis Capsis.

Mr. Papoulias told reporters that the government appeared ready to deal with the many problems - including the refugee issue - that the Kosovo crisis had thrown up.

Referring to the NATO bombings, Mr. Papoulias said that NATO was attempting to weaken Serbia but had failed to provide an answer to the question of what happens after Slobodan Milosevic.

He said the patriotic feelings of Serbs had to be taken into account and further expressed concern about the dire situation FYROM was facing.

In addition, the environment, town planning and public works ministry yesterday began sending the first prefabricated homes to Albania and FYROM as part of Greek humanitarian aid to countries receiving refugees from Kosovo. The ministry will send a total of 500 prefabricated homes which will be installed in northern Albania and FYROM.

The ministry has also undertaken the urgent construction of the necessary infrastructure works, such as drainage, water supply and lighting, in the areas where the homes are to be located.

For this reason, it has already begun contacts with Greek engineering companies active in Albania.

In addition, a team of ministry engineers will be sent to the two countries to supervise necessary works on the spot.

Athens News Agency

[11] China's Li Peng holds talks with Greek leadership

Athens, 01/04/1999 (ANA)

Mr. Peng is currently in Greece on an official visit at the invitation of Parliament.

Leading members of the People's Republic of China's political leadership will visit the island of Crete today and tomorrow. The Chinese delegation numbers 120 individuals and is headed by Mr. Peng. The National Assembly's Deputy President, Hi Luli, Deputy FM Ji Peiding and the presidents of National Assembly committees will be accompanying with Mr. Peng.

The Chinese delegation will arrive in Irakleio this afternoon. At 8:30 p.m. Mr. Peng will meet with deputies, the secretary general of the region of Crete and representatives of the local authorities.

Athens News Agency

[12] Turkish plane allowed to enter Greek air space

Athens, 01/04/1999 (ANA)

The ministry said Turkish Foreign Minister Ismail Cem had telephoned his Greek FM George Papandreou to request permission for the plane's overflight, within the framework of a recent decision taken by Balkan foreign ministers in Bucharest calling for in ter-Balkan cooperation in coordinating humanitarian assistance.

Greece has stated that it will not allow the flyover of warplanes or transport of Turkish troops through its territory, while on Tuesday, Mr. Papandreou termed the possibility of Turkish troops passing through Greece on their way to FYROM as a "non-issue".

Athens News Agency

[13] Mitsotakis,Gorbachev on Kosovo

Athens, 01/04/1999 (ANA)

Addressing the issue during a political television talk show, Mr. Mitsotakis also said in due time there will be negotiations, in the event that there will be goodwill from both sides. He added that Yugoslav President Slobodan Milosevic can in no way accept a referendum in three years in Kosovo over the future of the province, since that would lead to its independence and thus a change in Yugoslavia's borders.

Mr. Mitsotakis also said that the Soviet Union and Yugoslavia should not have been dissolved, adding that former US president George Bush was against such an outcome, although the Germans were pressuring for the opposite.

Speaking during the same programme, former Soviet leader Mikhail Gorbachev said there is a margin for a diplomatic and political solution to the problem, adding that the Primakov initiative has not yet failed.

Athens News Agency

[14] Possible Simitis visit to Cyprus

NICOSIA, 01/04/1999 (ANA)

Cypriot government spokesman Costas Serezis said Mr. Simitis had expressed a desire to visit the island republic for an exchange of views, particularly in view of the Kosovo crisis and its repercussions.

Athens News Agency

[15] Greek-Armenian agriculture cooperation

Athens, 01/04/1999 (ANA)

Specifically, some 5,000 tons of grain and 1,000 tons of fertilizers will be sent to Armenia as aid, while 20 scholarships to be given to Armenian students for training in Greece as well as an exchange of training missions and specialists.

Athens News Agency

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