Athens News Agency: Daily News Bulletin in English, 99-10-22

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

CONTENTS

[01] Premier: Humanitarian aid towards Turkey shouldn't be confused with foreign policy

[02] Patriot test firings completed on Crete by units from 4 countries

[03] Gov't: Too early to foresee impasse over latest US initiative over Cyprus

[04] France's Richard to press Euro-defence in Greece

[05] New round of low-level Greek-Turkish talks in Ankara

[06] Simitis lashes out at ND over videolotto issue

[07] US welcomes recent warming of EU-Turkey relations

[08] Greece into euro when conditions met

[09] Greek-Albanian law enforcement cooperation extended

[10] Greek-American donations for quake relief

[11] Greece, Turkey to link electricity networks

[12] Credit grows by 10.2 pct in August

[13] Monetary policy to stay tight until inflation falls

[14] Interamerican in deal with Dassault

[15] Twelve bids for Spata airport project

[16] Stocks end down in jittery trade

[17] Secondary market bond prices nose up

[18] Thessaloniki to host Balkan conference

[19] GSEE backs social insurance mutual fund manager

[20] Druckfarben acquires Polymet

[21] Techniki Olympiaki to boost share capital

[22] Athens Foreign Exchange

[23] European sailing federation congress in Athens next year

[01] Premier: Humanitarian aid towards Turkey shouldn't be confused with foreign policy

Athens, 22/10/1999 (ANA)

"The recent earthquakes in Turkey and Greece have produced moving acts of mutual help and solidarity, opening paths of friendship between the two peoples. However, humanitarian assistance in a moment of catastrophe should not be confused with the exerci se of foreign policy," he said in an address while on a tour of the eastern Aegean island of Lesvos, which lies across from the Asia Minor coast.

Expressing satisfaction with the results of the country's foreign policy, particularly in the Balkans, Mr. Simitis said "we have succeeded in making Greece an oasis of security and stability," with a presence which poses to Turkey the dilemma of "either following a policy of peace and cooperation, or becoming gradually distanced from European structures and marginalised".

"Turkey should not want the latter, and must therefore be against tensionIadopting actions and decisions creating a solid foundation for an improvement in relations," he added.

Athens News Agency

[02] Patriot test firings completed on Crete by units from 4 countries

Athens, 22/10/1999 (ANA)

National Defence Minister Akis Tsohatzopoulos was present at the test firings.

"I was pleased to see the efficiency of the Patriot missiles, which we have just acquired for operational training at the present stage," Mr. Tsohatzopoulos said, adding that the new Patriot-3 missile systems Greece was slated to acquire in two years' time would have an even wider range and effectiveness.

The trials consisted of eight firings - six Hawks and two Patriots.

"It was an impressive, successful firing. Targets were successfully struck, live firings were made in the context of the multinational anti-aircraft defence exercise, which is unique in the world, as we were told by the officials of the international multinational force taking part in the manoeuvers," the minister said.

Replying to press questions, Mr. Tsohatzopoulos dismissed as "ludicrous" recent press reports that the newly acquired Patriot missiles had deficiencies in their software systems. One newspaper claimed that the missiles were only empty shells lacking the operational software.

"All that was written is ludicrous, because the new systems, when taken delivery of, contain at the initial stage (software for) a two-to-three- month duration for the training programmes, so as to be able to proceed to the next stage after a three- or four-month period, which is their real operational function with obligatory training in order to avert accidents. There is no problem," Mr. Tsohatzopoulos said.

He also declined comment on press reports that there were nuclear warheads at the Araxos air base in the western Peloponnese.

"...I will not comment, beyond the fact that the reply to Greece's position on the use of nuclear weapons has been given many years ago. At any rate, the aerial means we have are not suitable for the use of nuclear means," he said.

Questioned on the S-300 anti-aircraft defence missile system, Mr. Tsohatzopoulos reiterated that the system was in the stage of being taken delivery of and development of the prerequisites for its operational function.

"I estimate that in two-to-three months' time we will be in the position to inform you on or perhaps even show you how it functions," he said.

In a speech later at the Hania Townhall, Mr. Tsohatzopoulos said the government was securing Greece's complete defence capability against any foreign threat.

"Greece is a peaceful country, it has no designs against anyone but does not intend to concede any of its sovereign rights," the defence minister said.

Referring to the Cyprus issue, Mr. Tsohatzopoulos said that Greece rejected the idea of two equal states on the island republic, as proposed by the Turkish side. "Turkey must respect UN Security Council resolutions which provide for a single entity for the Cyprus Republic, two zones and two communities, as well as the complete demilitarisation of the island."

Athens News Agency

[03] Gov't: Too early to foresee impasse over latest US initiative over Cyprus

Athens, 22/10/1999 (ANA)

Government spokesman Dimitris Reppas said, however, that the negative outcome of the meeting should be attributed entirely to Mr. Denktash "and this responsibility must be laid at his door by the international community".

Replying to reporters' questions, Mr. Reppas said Athens did not formulate its policy on the Cyprus problem on the basis of developments in relations between the European Union and Turkey but on the course of Cyprus' EU accession bid.

Athens News Agency

[04] France's Richard to press Euro-defence in Greece

PARIS, 22/10/1999 (Reuters/ANA)

Ministry spokesman Jean-Francois Bureau told reporters yesterday Mr. Richard's meetings with Greek Defence Minister Akis Tsohatzopoulos would be a follow-up to President Jacques Chirac's outlining of French positions in a speech this week.

President Chirac said the EU must have "its own arrangements for the provision of advice, analysis and military leadership...a military committee is indispensable and it should be able to work through a sufficiently high-level European general staff."

This point has set off alarm bells at the Pentagon which believes the North Atlantic Treaty Organisation (NATO), where Washington plays the leading role, should be the place where all military missions should be prepared.

Speaking on Tuesday, Mr. Chirac said there was an "indissoluble link" between the United States and Europe, but rebuked critics of European efforts to reinforce its own military capabilities.

He said it was in NATO's interest that Europeans should be capable of independent action in cases where the United States did not wish to become directly involved. Strengthening defence capabilities of the European Union must not be seen as a lessening of Europe's attachment to a strong Atlantic alliance, he added.

Athens News Agency

[05] New round of low-level Greek-Turkish talks in Ankara

ISTANBUL, 22/10/1999 (ANA - A.Kourkoulas)

The talks involve delegations from the Greek and Turkish foreign ministries with the participation of other ministries. They aim at finding common ground on a number of bilateral issues.

This round of talks is expected to focus on issues related to bilateral cooperation on combatting organised crime, illegal immigration, the drug trade and in combatting criminal activity would could be described as "terrorist".

Joint cooperation in tourism will also be examined.

The Greek delegation, led by ambassadors Constantinos Gerokostopoulos and Anastasios Skopelitis, are expected to meet with Turkish Foreign Minister Ismail Cem during the talks.

Athens News Agency

[06] Simitis lashes out at ND over videolotto issue

Athens, 22/10/1999 (ANA)

"The practice of smearing individuals, the easy hurtling of untenable accusations and the policy of 'a fuss for the sake of a fuss' now constitute ND's dominant characteristics," Mr. Simitis said in addressing an audience on the island of Lesvos.

He said the main opposition party's tactic harms the country's interests, "since it dynamites the climate of stability which the country needs in light of its bid for accession" to Economic and Monetary Union (EMU).

"Proof of this is ND's position concerning the election of the president of the republic by desiring, despite the spirit of the constitution, to use the process to force early elections," he added.

Mr. Simitis said "another tactic is that of scandal mongering which we experienced strongly these days, the relentless struggles which are threadbare recipes of the old Right."

Earlier yesterday, government spokesman Dimitris Reppas said the government was moving on from the Olympic lottery issue and called on the opposition to concentrate on the country's real problems. Mr. Reppas said the prime minister's decision on We dnesday to drop plans to go ahead with the videolotto had effectively "clea-red the air" and indicated the major problems facing the country which the government planned to tackle.

He called on opposition parties to preoccupy themselves with these issues in an effort to resolve them. New Democracy, he added, had attempted to "poison public life" and defame the country by focusing on the issue of the lottery.

Mr. Simitis said in a statement on Wednesday that the government was dropping plans for a special lottery to raise money for the Athens 2004 Olympic Games, because it had become the object of "petty partisan politicking".

"As a part of preparations for the Olympic Games, (the lottery) has meaning only if there is a climate of seriousness, responsibility and consensus, and not a climate of petty-party demagoguery," Mr. Simitis said.

The lottery - called Olympic videolotto - had drawn fire from New Democracy in recent days.

ND leader Costas Karamanlis on Tuesday lashed out against the government, saying it was responsible for "phenomena of corruption, lack of transparency and shady deals with vested interests".

Mr. Reppas said that New Democracy itself was hostage to vested interests and cited a 1993 ND government decision to allow the installation of slot machines around the country, overlooking any social problems this would cause.

He added that the loss of revenue that the lack of an Olympic lottery would mean would be covered by the budget, and said that the country's economy was in a position to cover its obligations.

There was no risk to the economy, or to the holding of the Olympic Games, he stressed.

Athens News Agency

[07] US welcomes recent warming of EU-Turkey relations

WASHINGTON, 22/10/1999 (ANA - T. Ellis)

"It has been a steady position of the US for a considerable time that Turkey has a European orientation...(In this context) we welcome the recent steps by the European Union, which invited Turkey to come closer to the EU accession process," said US State Department spokesman James Foley.

He further reiterated Washington's interest in a solution of the Cyprus problem, adding that recent visits by US presidential emissary Alfred Moses and State Dept. special coordinator Thomas Weston to Greece, Turkey and Cyprus have yielded productive re sults but a lot more work was required.

"Our goal remains to get the two sides into negotiations without preconditions under UN auspices...In that respect, we believe that these meetings were helpful. At the same time, clearly Mr. Moses and Mr. Weston have a lot of work ahead of them...

"Our commitment to a Cyprus solution based on a bizonal, bicommunal federation remains very firm," he added.

Athens News Agency

[08] Greece into euro when conditions met

BRUSSELS, 22/10/1999 (ANA-M. Spinthourakis)

The country's entry into the 11-member euro zone would be a very positive development, added Mr. Solbes, who is responsible for economic and monetary affairs.

He said that the European Commission would ensure that no obstacles hindered the entry of Greece into the euro zone, or of any other member states that wished to join.

Athens News Agency

[09] Greek-Albanian law enforcement cooperation extended

GJIROKASTER, 22/10/1999 (ANA - P. Barkas)

During a meeting in the Albanian town of Sarande, they agreed to cooperation such as joint patrolling of sea regions to counter smuggling and illegal immigration, the strengthening of the Albanian police with equipment as well as the training of Albanian police in Greece in countering financial crimes.

The files of Albanian criminals who may be in Greece will also be handed to Athens. Already, 137 files have been dispatched to Greek police.

"Greek support to Albania does not only concern cooperation but also the establishment of security and order generally and between the members of the Greek minority," Mr. Chrysohoidis said.

He announced that the Greek government was preparing a draft immigration bill with strict provisions against those who did not respect the law.

Athens News Agency

[10] Greek-American donations for quake relief

Athens, 22/10/1999 (ANA)

US ambassador to Athens Nicholas Burns delivered the checks during a ceremony at the Greek Red Cross' offices.

The lion's share of the contribution, $100,000, comes from prominent Greek- American businessman Alex G. Spanos.

"These donations demonstrate clearly the keen interest that the Greek- American community has in the welfare of those Greek citizens who continue to suffer as a result of the earthquake. We are most grateful for the generosity of Mr. Spanos and the members of the US-Greece Business Council.

"Mr. Spanos' enormous contribution reflects his well-deserved reputation as a philanthropist who cares deeply about Greece. I am grateful for this extraordinary gesture," Mr. Burns said.

Athens News Agency

[11] Greece, Turkey to link electricity networks

Athens, 22/10/1999 (ANA)

The link is part of moves towards rapprochement by the two countries.

Talks have been conducted with TEAS, the Turkish power utility, and between the two national governments involved.

The link will pass through Thessaloniki, Philippi and Hamitabat.

The cost of the project is estimated at 15 billion drachmas.

Athens News Agency

[12] Credit grows by 10.2 pct in August

Athens, 22/10/1999 (ANA)

The central bank said in a report that the slowdown in credit growth reflected a fall in lending towards the public sector to an annual growth rate of 8.7 percent in August from 11.4 percent in the previous month.

Credit growth in the private sector remained stable at an annual rate of 13.6 percent in August from 13.7 percent in July year on year.

Bank of Greece governor Lucas Papademos had said on Wednesday that credit growth rates by category were slowing.

Mortgage loans rose by 26.5 percent in August, up from 25.2 pct in July, while consumer loans remained stable at 45.8 percent.

Growth in foreign exchange loans was 30.4 percent, down from 31.7 percent in July.

Consumer loans were 21.5 percent higher from the start of the year.

Athens News Agency

[13] Monetary policy to stay tight until inflation falls

Athens, 22/10/1999 (ANA)

He noted that short-term rates were in the process of converging with their European Union equivalents, but still had a way to go.

Mr. Papantoniou said he believed that the central bank's future moves on monetary policy would be extremely cautious.

The central bank governor told reporters that further cuts in interest rates would depend on the course of inflation and on the bank's estimates on price stability and the inflation convergence criterion to attain euro zone entry.

Athens News Agency

[14] Interamerican in deal with Dassault

Athens, 22/10/1999 (ANA)

The alliance between the two firms will gain momentum on construction of a new international airport being built for Athens at Spata.

Athens News Agency

[15] Twelve bids for Spata airport project

Athens, 22/10/1999 (ANA)

The companies were Acclona Airport Services Hellas, Avlapartner Hellas SA, DNATA, FCC Agua Y Entorno Urbano SA, GHI Hellas SA, Goldair Handling SA, Hellenic Airport Services, Northeast Aviation Services Plc, Ogden Hellenic Aviation SA, Servicair Greece Handling SA, Swissport Hellas SA and Olympic Airways SA.

Three bidders will be awarded contracts.

In another tender, six bids were received for the provision of airport refuelling services.

The bidders were AFFSA SA, BP-Mobil-Shell-EKO, DynAir Fuelling SA, Ogden Hellenic Aviation SA, Olympic Airways Total Refineries, and Skytanking.

Two will be awarded contracts.

Athens News Agency

[16] Stocks end down in jittery trade

Athens, 22/10/1999 (ANA)

The general index ended 0.59 percent down at 5,670.43 points, off the day's lows when the market shed up to 1.58 percent.

It had started the day 2.10 percent up to drop later on heavy profit taking.

Turnover was a moderate 380.6 billion drachmas.

Sector indices ended as follows: Banks (-1.74 pct), Leasing (+0.37 pct), Insurance (+2.06 pct), Investment (-1.48 pct), Construction (+0.65 pct), Industrials (-0.08 pct), Miscellaneous (+2.48 pct) and Holding (+0.08 pct).

The parallel market index for smaller capitalisation stocks rose 2.71 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks fell 1.66 percent to 2,826.79 points.

Broadly, advancers led decliners by 216 to 103 with another four issues unchanged.

A total of 46 shares ended at the day's 8.0 percent limit up.

Viosol (common) and Barba Stathis (common) were the most heavily traded stocks.

National Bank of Greece ended at 21,880, Alpha Credit Bank at 22,450, Commercial Bank at 23,865, Titan Cement (common) at 34,750, Hellenic Petroleum at 5,450, Intracom (common) at 15,550, Minoan Lines at 10,095, Panafon at 8,820 and Hellenic Telecoms at 7,140.

Athens News Agency

[17] Secondary market bond prices nose up

Athens, 22/10/1999 (ANA)

Electronic trade totalled 3.0 billion drachmas, sharply down on the rest of the week when turnover averaged more than 50 billion drachmas a day.

The benchmark 10-year bond, which is still trading below par, had posted an all-time low on Monday, trading at 93.90-94.20.

Yesterday, the paper showed a yield of 7.15 percent. The 10-year paper's yield spread over German bunds was between 171 and 172 basis points.

Central bank intervenes in drachma decline : The drachma dropped against the euro in the domestic foreign exchange market yesterday, prompting the central bank to step in and bolster the national currency.

The Bank of Greece intervened by selling between 130 and 170 million euros.

At the central bank's daily fix, the euro ended slightly higher versus the drachma.

The European currency was set at 329.750 drachmas from 329.600 in the previous session.

The dollar finished lower against the drachma.

At the fix, the US currency was set at 305.270 drachmas from 305.720 drachmas a day earlier.

Athens News Agency

[18] Thessaloniki to host Balkan conference

Athens, 22/10/1999 (ANA)

The conference, to be attended by economy ministers, bankers and businessmen from Balkan countries, is organised by the Association of Northern Greek Industry, Thessaloniki International Trade Fair SA, Euromoney Conference and Symeon Tsomokos SA.

The agenda includes discussion of an international effort for the reconstruction of Kosovo and the Balkan region and the roles of regional governments, the US and the Inter-Balkan Business Cooperation group in promoting the plan.

Athens News Agency

[19] GSEE backs social insurance mutual fund manager

Athens, 22/10/1999 (ANA)

IKA president Miltiadis Nektarios yesterday briefed GSEE members on progress in the plan to modernise IKA's operations and the creation of a new business plan to ensure its viability.

Union members told Mr. Nektarios that IKA needed to ensure ample financing from employers, workers and the state budget.

Sources said that GSEE supported a plan for the creation of the mutual fund management company to invest IKA's reserve capital in the domestic bond and equity markets.

The two sides agreed on the need for closer cooperation over the issue.

Union representatives were reluctant, however, to adopt proposals for the securitisation of debts to IKA and urged for the continuation of talks, although IKA's management is expected to approve both plans and to rapidly proceed towards opening new way s of borrowing.

Athens News Agency

[20] Druckfarben acquires Polymet

Athens, 22/10/1999 (ANA)

Polymet was founded five years ago and operates a sales network of 1,300 outlets.

The products it represents include Pratt & Lambert and Hammerite, two of the leading paints industries in the world.

Its sales totalled 1.17 billion drachmas in 1998.

Druckfarben expects its consolidated sales to total 7.6 billion drachmas this year.

Athens News Agency

[21] Techniki Olympiaki to boost share capital

Athens, 22/10/1999 (ANA)

An extraordinary general shareholders meeting approved a plan to issue 15, 313,062 new shares to be granted to shareholders and another 110,812,163 shares at 15 new shares for 10 old to be offered at 1,000 drachmas each.

Athens News Agency

[22] Athens Foreign Exchange

Athens, 22/10/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             303.820 310.864
Can.Dollar            204.074 208.806
Australian Dlr        196.952 201.518
Pound Sterling        506.753 518.503
Irish Punt            415.346 424.976
Pound Cyprus          565.936 579.057
Pound Malta           721.117 751.163
Turkish pound (100)     0.060   0.063
French franc           49.868  51.024
Swiss franc           205.408 210.171
Belgian franc           8.109   8.297
German Mark           167.249 171.127
Finnish Mark           55.016  56.292
Dutch Guilder         148.437 151.879
Danish Kr.             44.007  45.027
Swedish Kr.            37.172  38.034
Norwegian Kr.          39.283  40.194
Austrian Sh.           23.772  24.323
Italian lira (100)     16.894  17.285
Yen (100)             286.093 292.726
Spanish Peseta          1.966   2.012
Port. Escudo            1.632   1.670

Foreign Exchange      Buying  Selling
New York              303.820 310.864
Montreal              204.074 208.806
Sydney                196.952 201.518
London                506.753 518.503
Dublin                415.346 424.976
Nicosia               565.936 579.057
Paris                  49.868  51.024
Zurich                205.408 210.171
Brussels                8.109   8.297
Frankfurt             167.249 171.127
Helsinki               55.016  56.292
Amsterdam             148.437 151.879
Copenhagen             44.007  45.027
Stockholm              37.172  38.034
Oslo                   39.283  40.194
Vienna                 23.772  24.323
Milan                  16.894  17.285
Tokyo                 286.093 292.726
Madrid                  1.966   2.012
Lisbon                  1.632   1.670

Athens News Agency

[23] European sailing federation congress in Athens next year

Athens, 22/10/1999 (ANA)

The decision to hold the congress in Athens - April 1-2 has been set as the date - was taken during EUROSAF's meeting in Istanbul recently.

The European federation also expressed the hope at its council meeting that Greece would organise a sailing event for young people with special needs, as the Special Olympics will be held shortly after the 2004 Games.

Athens News Agency

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