Athens News Agency: Daily News Bulletin in English, 99-04-21

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

CONTENTS

[01] Simitis cites intensification of efforts aimed at political solution for Kosovo

[02] Central bank chief bullish on Greek euro entry

[03] Stocks end slightly down in jittery trade

[04] Greece, FYROM seek closer economic ties

[05] Seven-year bond yield rises

[06] EU harmonised CPI at 3.2 pct in March

[07] Athens Foreign Exchange

[08] PM inaugurates Metropolitan exhibitions

[09] Simitis meeting Spyridon in NY

[10] G. Papandreou receives US envoy

[11] Gov't on possibility of NATO ground forces passing through Greece

[12] EU members disagree on oil embargo against beleaguered Yugoslavia

[13] Kranidiotis talks in The Hague

[14] Poll on Kosovo refugees

[15] Gov't, scientists comment on reports of toxic fallout from NATO bombings

[16] Political leaders' messages on occasion of '67 coup

[17] Papantoniou tallies Greek humanitarian aid in Balkans

[18] Klima confident of Greece's EMU entry

[01] Simitis cites intensification of efforts aimed at political solution for Kosovo

NEW YORK, 21/04/1999 (ANA - S. Liarellis)

Mr. Simitis spoke of the "complicity" of institutions and actions which will lead to Yugoslavia accepting to withdraw troops from Kosovo, the safe return of refugees, the deployment of an expanded international force with clear legitimacy, as well as the simultaneous end to hostilities.

He said that he is determined to promote this policy (with support from other countries as well) in NATO, the EU and in Balkan countries.

Analysing the Kosovo crisis, Mr. Simitis said all are calling for peace, a political solution and the restoration of stability. At the same time, Greece is shaping an autonomous foreign policy based on the principles of respect for the inviolability of borders, human and minority rights, a peaceful solution to differences and cooperation.

He said that for Greece, invoking these principles is not rhetoric, it is a living need stemming from historic experience, from Turkish aggressiveness in the Aegean and the continuing "international crime" of the military occupation of part of Cyprus.

Mr. Simitis stressed categorically that Greece should primarily defend its own interests, but respecting its rights and obligations emanating from its participation in international organisations, such as NATO and the European Union.

"In this way, Greece's position in NATO is determined by its aim to safeguard the country's interests, avoiding incalculable consequences in the future. And so, the considerable strengthening of Turkey's role must be avoided," he said.

Mr. Simitis reiterated that Greece considers the need of respect for borders in the Balkans as being a basic precondition and is opposed to continuing Serb operations in Kosovo, which must stop.

"In this context, Greece proved that it can function as a factor of peace and stability in the region in this crisis as well, thanks to its double identity as a member-state of NATO and the EU and as a country in southeastern Europe. This double identi ty requires credibility both towards our partners and towards the Balkan countries and especially those directly involved, such as Yugoslavia, Albania and Skopje. And so, Greece is not participating in military operations and made it clear that it does not constitute a part of the problem, since the existing Turkish threat is one issue and the crisis in Kosovo another," he said.

Mr. Simitis reiterated that an extension of the crisis will create considerable dangers for the wider region, adding that it is necessary for a political solution to be found and that the Greek initiative is aimed at a political solution, the stabilisat ion of the Balkans and the handling of humanitarian problems.

To this end, he proposes a "Stabilisation and Development Plan for the Balkans" after the end of military operations with a "Marshal plan" for the region, the establishment of a mechanism responsible for resolving crises and the recognition of the "elig ibility" of all countries to join the EU.

"Greece is promoting the holding of a Balkan summit in Athens, while giving particular emphasis to tackling the refugees' humanitarian problems, planning the holding of a wide conference on this issue," he said.

Mr. Simitis said handling Turkish aggressiveness is necessary, since a part of Ankara's establishment is steadfastly pursuing aggravation and tension.

"Greece will not give an alibi to these deadlocks, since its position is that 'it is not contesting anything and is not negotiating anything' since Greece sovereign rights (Thrace, Aegean and Cyprus) are non-negotiable," he said.

Mr. Simitis reiterated that Greece will support Turkey, provided that Ankara harmonises itself with the European establishment and respects international law.

At the same time, he added, it is averting every design, strengthening its defence capacity and strengthening its domestic front.

He said a strategic option being achieved is its accession to Economic and Monetary Union, EMU, and for which the country is currently finding itself on its final course.

"The effort for a powerful Greece does not concern one government alone, since it is a national effort and for this reason the slogan for this is 'all together', placing 'Greece first of all'," Mr. Simitis said.

Athens News Agency

[02] Central bank chief bullish on Greek euro entry

BRUSSELS, 21/04/1999 (ANA-P.Pantelis)

Mr. Papademos, who was addressing a meeting of the European Parliament's monetary committee, said the Bank of Greece's policy was effective. He outlined the technical preparations the authorities were making before entry into the euro zone by January 1, 2001, the government's target date.

"Greece has made major progress in meeting the criteria for economic convergence. It has managed to lower inflation, stabilise the drachma's parity and reduce interest rates," Mr. Papademos said.

In order to attain the planned entry date, the criteria would have to be met by the end of the year.

The country had made good progress and was nearing the criteria, he added.

The impact of a devaluation of the drachma in March 1998 had dropped out of consumer price inflation, which had declined since June.

It fell to 3.9 percent year-on-year in December from 4.7 percent in the same month of 1997. The rate in March was 3.4 percent, expected to approach 2.0 percent by mid-summer, Mr. Papademos said.

The public deficit was expected to fall to 1.9 percent of gross domestic product in 1999 from 2.4 percent in 1998.

The public debt was continuing its downward trend, falling to 106.1 percent at the end of 1998 from 109.4 percent a year earlier. Its rate of decline was expected to accelerate in line with a gradual alignment of short- and long-term rates with the eu rozone norm, Mr. Papademos said.

At the same time, inflation had to fall to below 2.0 percent in 1999, and price stability could not be jeopardised.

In order to attain the target, anti-inflationary policy would continue in the framework of the EU's exchange rate mechanism.

One threat to the anti-inflation drive was a rise in oil prices and a sharp rise in demand partly fuelled by heavy borrowing from commercial banks.

Furthermore, inflation in the EU - and especially the eurozone - may fall further than expected, endangering price stability in Greece.

As a result, monetary policy would leave safety margins, Mr. Papademos said.

Athens News Agency

[03] Stocks end slightly down in jittery trade

Athens, 21/04/1999 (ANA)

The general index ended 0.37 percent down at 3,373.62 points, off the day's lows of 3,289.

A positive report by Deutsche Bank on the Greek market's prospects and a forecast by the Bank of Greece governor that inflation would drop to two percent by the end of the year helped sentiment.

Traders said the market was also encouraged by the prime minister's reassurance that the country would participate in EMU despite the Kosovo crisis.

Dealers noted that domestic institutional investors were relatively calm in the last few sessions buying into selected stocks, while most foreign institutional investors remained neutral after a restricted sell-off on Friday.

Sector indices ended lower.

Banks fell 0.04 percent, Leasing rose 0.65 percent, Insurance eased 2.51 percent, Investment dropped 2.71 percent, Construction ended 0.24 percent off, Industrials fell 0.59 percent, Miscellaneous ended 0.97 percent lower and Holding eased 0.66 percent .

The parallel market index for small cap companies ended 1.22 percent down.

Turnover was 130.996 billion drachmas and volume 25,841,566 shares.

Daring, Hellenic Telecoms, Alpha Credit Bank and Strintzis were the most heavily traded stocks.

Broadly, decliners led advancers by 178 to 102 with another 12 issues unchanged.

Benroubi, Corinth Steelpipes, Minerva, ANEK Lines, Sato, Eskimo, Alatini Ceramics and Tegopoulos Publications scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Ergodata, Pairis, Macedonian Plastics, Nematemboriki, 3A, Radio Athina, Boutaris and Piraeus Invest suffered the heaviest losses. The FTSE/ASE 20 index ended 0.31 percent off at 2,109.27 points.

National Bank of Greece ended at 20,000 drachmas, Alpha Credit Bank at 20, 400, Ergobank at 26,500, Ionian Bank at 17,890, Titan Cement at 21,990, Hellenic Petroleum at 2,305, Intracom at 17,900, Minoan Lines at 7,120, Panafon at 7,365 and Hellenic Telecoms at 6,400.

Bond prices nose up, bund spread widens : Bond prices ended around 10 basis points higher in light trade after early gains of about 30 basis points, and the yield spread widened with German bunds.

Electronic trade was 50 billion drachmas from 54 billion drachmas in the previous session.

The new ten-year-bond was at 103.65, widening the yield spread with German bunds to 1.97 percent from 1.93 percent on Monday and 1.89 percent on Friday. Prices for the German paper rose sharply in yesterday's trade.

In the foreign currency market, the drachma retreated against the euro but no pressure was reported and the central bank did not intervene.

At the central bank's daily fix, the euro ended at 325.750 drachmas from 325.350 drachmas in the previous trading session.

Athens News Agency

[04] Greece, FYROM seek closer economic ties

Athens, 21/04/1999 (ANA)

Deputy National Economy Minister Alexandros Baltas said after a meeting with FYROM's Prime Minister, Ljupco Georgievski, in Skopje that Greece wanted to help the neighbouring country's economic development.

Mr. Georgievski urged Greek businesses to participate in his country's privatisation programme and expressed the view that Greece could become a major investor in FYROM.

Mr. Baltas also met with Finance Minister Boris Stoymenov. Business representatives from Thessaloniki invited FYROM's prime minister and finance minister to attend a conference to be held in Thessaloniki on May 11-12.

In Athens, Hellenic Petroleum denied a report in a FYROM newspaper that its preliminary agreement to upgrade and probably buy the country's state-owned OKTA refinery was off. The deal also involves building an oil pipeline between Thessaloniki and Skopje.

Hellenic Petroleum's president and managing director, Eleftherios Tzallas, said the agreement was proceeding normally.

Athens News Agency

[05] Seven-year bond yield rises

Athens, 21/04/1999 (ANA)

The average weighed yield rose to 6.07 percent from 5.94 percent in the last auction.

Bids submitted totalled 432.8 billion drachmas, more than double the auctioned sum of 200 billion.

Athens News Agency

[06] EU harmonised CPI at 3.2 pct in March

Athens, 21/04/1999 (ANA)

Consumer price inflation was running at 3.4 percent in the same month based on national criteria.

The harmonised consumer price index is used by the European Union to better compare inflation trends and evaluate price stability.

The index excludes health services and most education services.

Athens News Agency

[07] Athens Foreign Exchange

Athens, 21/04/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             303.393 310.428
Can.Dollar            203.856 208.583
Australian Dlr        196.986 201.554
Pound Sterling        490.108 501.471
Irish Punt            410.308 419.821
Pound Cyprus          559.369 572.338
Pound Malta           725.959 756.207
Turkish pound (100)     0.072   0.075
French franc           49.263  50.405
Swiss franc           201.510 206.182
Belgian franc           8.010   8.196
German Mark           165.221 169.051
Finnish Mark           54.349  55.609
Dutch Guilder         146.636 150.036
Danish Kr.             43.479  44.487
Swedish Kr.            36.273  37.114
Norwegian Kr.          39.051  39.956
Austrian Sh.           23.484  24.028
Italian lira (100)     16.689  17.076
Yen (100)             257.176 263.139
Spanish Peseta          1.942   1.987
Port. Escudo            1.612   1.649

Foreign Exchange      Buying  Selling
New York              303.393 310.428
Montreal              203.856 208.583
Sydney                196.986 201.554
London                490.108 501.471
Dublin                410.308 419.821
Nicosia               559.369 572.338
Paris                  49.263  50.405
Zurich                201.510 206.182
Brussels                8.010   8.196
Frankfurt             165.221 169.051
Helsinki               54.349  55.609
Amsterdam             146.636 150.036
Copenhagen             43.479  44.487
Stockholm              36.273  37.114
Oslo                   39.051  39.956
Vienna                 23.484  24.028
Milan                  16.689  17.076
Tokyo                 257.176 263.139
Madrid                  1.942   1.987
Lisbon                  1.612   1.649

Athens News Agency

[08] PM inaugurates Metropolitan exhibitions

NEW YORK, 21/04/1999 (ANA - G. Georgiadou)

Mr. Simitis, on a seven-day visit in the US to attend events for NATO's 50th anniversary, said "the uniqueness of the Greek art is owed to its timelessness, which is the result of its focus on man. Not only on man's shape, but also on man's feelings, ma n's relation to other human beings and the environment... Reflecting the philosophy of the times, Greek art managed to express the contradiction between fact and infinity, that is to say the question of human nature.

"The classical period is the continuation of the ancient period. The clarity in the shapes, combined with the impression of the monumental and the spark of the initially imperceptible movement, formed a solid basis for simplicity in expression, a simpli city that secures the timeless message," he said.

"This inseparable ensemble of classical philosophy, art and scientific theory is, I believe, one of the most beautiful expressions of man's quest to create in harmony to the human and natural environment. I am certain that for that reason, the rooms we are inaugurating today will offer a motivation for concern and thought toward an artful quest in the 21st century", the prime minister concluded.

Athens News Agency

[09] Simitis meeting Spyridon in NY

NEW YORK, 21/04/1999 (ANA - M. Georgiadou)

"Greece at this point is facing major challenges in Europe, the Balkans and further afield. To deal with these challenges it needs the assistance and the contribution of all. It needs the assistance of expatriate Greeks everywhere, who must have the una nimity to promote and defend our national issues and the country's progress," he said after visiting Archbishop of America Spyridon.

"The Church is always a supporter, an aide and a protagonist in dealing with the Cyprus problem, on the issue of Greek-Turkish relations, but now also on the problem of the Balkans, the role which Greece will play and the ways in which we can achieve peace. " For Greece it is especially important that there may be peace in the region..." he said.

Athens News Agency

[10] G. Papandreou receives US envoy

Athens, 21/04/1999 (ANA)

According to reports, talks focused on the preparation of the Greek FM's visit to Washington and on bilateral contacts he will have with his US counterpart Madeleine Albright and US Assistant Secretary of State for European Affairs Mark Grossman.

Talks also included the Kosovo crisis in light of discussions to be held on the issue at the NATO summit in Washington.

Speaking after the meeting, Mr. Burns said he had very good meetings both with Mr. Papandreou and National Defence Minister Akis Tsohatzopoulos (on Monday) on the premier's visit to the US.

Mr. Burns said Washington welcomes the Greek prime minister as a good friend and ally, adding that the US appreciates Greece's initiatives in the humanitarian aid sector and, in particular, in relation to aid being granted to the Albanians and Serbs in Kosovo.

Athens News Agency

[11] Gov't on possibility of NATO ground forces passing through Greece

Athens, 21/04/1999 (ANA)

"We hope that this issue will not be one we have to deal with," he added.

He denied reports that Turkish fighter planes had used Greek air space and said that the only Turkish aircraft passing through Greek air space were transport planes carrying humanitarian aid for refugees.

He also denied reports of plans for NATO military maneuvers in Greece, saying the only NATO exercise which related to Greece was a scheduled "geographical exercise" for 52 officers.

Mr. Athanassakis said it was too soon to discuss whether Hellenic Navy destroyer "Themistocles", currently part of a standing NATO naval force in the Adriatic, would be involved in inspections of other vessels as part of monitoring of an oil embargo on Yugoslavia that the US is pushing for.

"Greece believes that this embargo could be an alternative solution to the bombing or could be imposed once the bombing has stopped and (if) the problem which caused the bombing in the first place continued," he said.

Athens News Agency

[12] EU members disagree on oil embargo against beleaguered Yugoslavia

BRUSSELS, 21/04/1999 (ANA- P. Pantelis)

The proposal was rejected after negative reactions by Italy and Greece against a proposal tightening sanctions against Belgrade, following a session of the Union's political committee.

The proposal was tabled by a majority of countries, particularly Britain, the Netherlands and Denmark.

Greece and Italy, conversely, expressed a view that there was no legal basis for any such embargo.

As no EU member-state is formally in a state of war with Yugoslavia, "boarding and inspecting" operations against tankers carrying oil to that country are difficult to enforce.

NATO, on the other hand, claims that UN resolutions on the imposition of an embargo on products which Yugoslavia can conceivable use for military purposes, also concern oil.

The issue is expected to be also discussed at the EU foreign ministers' meeting in Luxembourg on Monday.

Athens News Agency

[13] Kranidiotis talks in The Hague

THE HAGUE, 21/04/1999 (ANA - M. Spinthourakis)

The object of Mr. Kranidiotis' visit here was developments in Kosovo and issues of bilateral concern, such as the European Union's institutional reshaping, the promotion of Cyprus' accession to the EU and relations between the EU and Turkey.

In statements, both ministers termed the meeting useful and constructive. The Dutch minister stressed the role Greece should play for the Balkans' recovery after the Kosovo crisis and underlined the particular significance of the Greek government's prop osals for an exit to the crisis. On his part, Mr. Kranidiotis said there is a greater understanding of positions between Greece and the Netherlands after the meeting.

Referring to the Kosovo issue, Mr. Kranidiotis underlined Greek efforts for a peaceful solution to be found, adding that Greece is an important stabilising factor in the region.

Mr. Kranidiotis also referred to the promotion of Cyprus' candidacy for EU accession and noted that he and his Dutch counterpart jointly ascertained the progress achieved by Cyprus in its course towards the EU.

According to diplomatic sources, quite a few pending issues were clarified and the two sides' positions were better understood after yesterday's meetings.

Athens News Agency

[14] Poll on Kosovo refugees

Athens, 21/04/1999 (ANA)

An overwhelming 97.5 per cent said they would help in donating aid to refugees while 66 per cent said they were prepared to volunteer to help a relief effort.

About 36.5 per cent said they would willingly put up refugees in their own homes.

Some 43 per cent said Greece should offer to shelter the refugees on its territory, while 52.4 per cent said that Greece had no obligation to do so.

Athens News Agency

[15] Gov't, scientists comment on reports of toxic fallout from NATO bombings

Athens, 21/04/1999 (ANA)

"To date, all the measurements and reports from relevent agencies have shown that there is absolutely no problem," Mr. Laliotis said after a meeting of researchers.

He added the government was continually monitoring air and water pollution levels and that these checks would be extended throughout northern Greece, while a Greek Atomic Energy Committee report also noted no increased radioactivity in the region - in l ine with similar reports from an agency in the Former Yugoslav Republic of Macedonia (FYROM).

The minister called on the press and media to base their reports on expert advice and agencies involved with monitoring the situation, saying there was no need "for irresponsible statements and panic".

Deputy Health Minister Nikos Farmakis said there had been no change in pollution levels since the NATO bombing campaign of Yugoslavia began 24 days ago.

Any toxic elements from Serbia are being blown north and not south, Christos Balafoutis, the director of Aristotelian University's Meteorological Laboratory said.

The director of Aristotelian University's Environmental Pollution Control Laboratory, Theodoros Coemtzis, said that there was no indication that the atmosphere or water sources in northern Greece had been polluted.

He said sampling of water sources had been increased in frequency since the start of the bombing campaign and results continued to show that there had been no effect.

Athens News Agency

[16] Political leaders' messages on occasion of '67 coup

Athens, 21/04/1999 (ANA)

"Once more it is proved that the abuse of democratic and human rights can only bring suffering to peoples and nations. War arouses the most detestful instincts..." Mr. Simitis said, adding that if democracy fails to expand in every corner in the Balkans " we will strengthen the interventionism of powers that desire to rule over our destiny and our future in order to serve their own interests."

Main opposition New Democracy (ND) leader Costas Karamanlis, in his message, said "democracy is daily tested by its capability to offer effective solutions to sharp social problems, pressing anwsers to citizens' demands, hope and future projection to the young, guarantees for rights and freedom."

The Communist Party of Greece (KKE) reminded of "NATO's role in the secret preparation, imposition and support of the military coup..." stressing "the need for democratisation of the armed forces".

The Coalition of Left and Progress stressed "the need for a radical change in policy and correlations in our political life", while the Democratic Social Movement (DHKKI) maintained that "the very same major powers that planned the coup and imposed the colonels' junta in Greece and Cyprus (also) harbour and support the Turkish provocativeness and agressiveness against our country".

Athens News Agency

[17] Papantoniou tallies Greek humanitarian aid in Balkans

LONDON, 21/04/1999 (ANA)

Addressing a press conference after the annual meeting of the European Bank for Reconstruction and Development (EBRD), where he presided, he also said EBRD decided to support the reconstruction of Kosovo as well as other Balkan regions in the spirit of a new "Marshall" type plan.

Mr. Papantoniou said that following the war Greece's position in the region will be strengthened, as the Greek business sector has strong ties in the area.

Athens News Agency

[18] Klima confident of Greece's EMU entry

Athens, 21/04/1999 (ANA)

Speaking after a cabinet meeting, the Austrian chancellor said he was "especially hopeful" that the war in Yugoslavia will not affect economic progress in Greece, adding that the European Union is also a community of solidarity and of European values, and this solidarity includes the relevant support for its member-states, which find themselves in special circumstances.

As about a Balkan conference he propose take place in Vienna, he said it could be organised under the auspices of Organisation for Security and Cooperation in Europe (OSCE), of which Austria will hold the rotating presidency next year.

Athens News Agency

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