Athens News Agency: Daily News Bulletin in English, 00-01-13

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

CONTENTS

[01] Papandreou: No possibility of pseudo-state's recognition

[02] Papandreou underlines new opportunities for Cyprus solution

[03] Cyprus prelate opposed to federation, confederation solution

[04] US support bicommunal, bizonal and federal solution in Cyprus

[05] Gov't to discuss air force armaments programme next week

[06] Greek FM in London Thursday, Turkish visit on Jan. 20-21

[07] Karamanlis urges government to set election date

[08] Simitis, unions discuss incomes policy

[09] Papariga warns of EMU aftermath in Keratsini speech

[10] Burns protests to Christodoulos over statement on Clinton

[11] Parliament president receives outgoing Chinese envoy

[12] Plan unveiled for Greece's first private power plant

[13] Wholesale prices index up 0.5 pct in November

[14] Greek stocks end volatile session mixed

[15] Bulls lift bonds out of the doldrums

[16] Drachma firms vs most currencies

[17] Fuel prices cut

[18] Drachma rate decisions on Thursday

[19] Four bids submitted in marinas' consultants tender

[20] Greek business delegation to visit Kosovo

[21] Greek-Italian business symposium to be held in Athens next week

[22] Gov't tables amendment regulating penalty rates

[23] Arthur Andersen sees 1999 revenue rise

[24] Infant from Kosovo to undergo surgery in Athens on Thursday

[25] Head of the Church of Greece praises Microsoft

[26] Opposition MP proposes smoking ban in taxis

[27] Migrant smugglers fined, sentenced to 10 years imprisonment

[28] The Athens Dailies at a glance

[01] Papandreou: No possibility of pseudo-state's recognition

NICOSIA 13/01/2000 (ANA)

The Greek minister, on the island republic for talks with the Cypriot government and its political leadership, added that the European Union has for some time now decided on the way with which to deal with the Turkish Cypriot community.

Papandreou was responding to a press question over the possibility that the T/C pseudo-state -- illegally declared in 1983 in the areas occupied by Turkey since 1974 -- could be recognised, and in light of recent statements by T/C leader Rauf Denktash that he would seek to establish contacts with the 15-member bloc.

He spoke at a press conference after a meeting with Cypriot President Glafcos Clerides, talks which reportedly touched on the new prospects afforded for a solution to the Cyprus problem following the recent EU Helsinki summit and Turkeys designation as an EU candidate-country.

Papandreou again mentioned the standing proposal by Clerides for the participation of a T/C delegation in the accession negotiations Nicosia is holding with the EU, while adding that the Union supports the initiatives taken by the Cypriot government.

Other topics of discussion during the meeting with Clerides included the Greek FMs visit to Turkey and latest developments in Greek-Turkish relations.

The Greek FM later met with the president of Cyprus DHSY party, Nicos Anastasiades; the secretary general of the leftist AKEL party, Dimitris Christofias and EDEK socialist leader Vassos Lyssarides. He was also received by former president of the republic and EDH party leader George Vassiliou. Finally, Papandreou also met with Archbishop Chrysostomos and Cyprus Attorney General Alekos Makrides.

[02] Papandreou underlines new opportunities for Cyprus solution

NICOSIA 13/01/2000 (ANA)

Papandreou, who was addressing the Cyprus Chamber of Commerce and Industry, said Greece and Cyprus will have not only to adapt but also shape developments. He stressed that Europe's decisions about its ties with Turkey put Ankara firmly on a course which it has to follow if it wants to become a member of the European family and appealed to the Turkish Cypriots to join the Cypriot negotiating team for Cyprus' accession of the European Union.

In a separate call to the international community, Papandreou said they should not apply double standards and be consistent with the rules of international law and order.

He reiterated that a solution in Cyprus should be based on a single independent and sovereign state with one international personality, as provided by UN decisions.

The minister fully backed efforts for rapprochement and expres-sed hope that Ankara will give its seal of approval to such moves which can help the Greek and Turkish Cypriot sides to get closer together.

Papandreou later left for Athens at the end of his two-day visit to Cyprus where he had talks on the Cyprus issue.

[03] Cyprus prelate opposed to federation, confederation solution

NICOSIA 13/01/2000 (ANA)

During their meeting at the Archbishop's office, the prelate of the Autocephalus Orthodox Church of Cyprus reiterated his vehement opposition to a Cyprus solution through a federation or confederation formula. He claimed both solutions would lead Greek Cypriots to abandon the island republic. He also stressed that human rights must be respected on the island.

In a related development, several organisations, producers unions, investors and manufacturers in the Turkish-occupied northern parts of the island republic reportedly called on Turkish Cypriot leader Rauf Denktash to declare a state of emergency in the T/C pseudo-state due to a severe economic crisis.

On his part, Denktash reportedly admitted that the pseudo-state is amid dire economic straits and that its so-called government should accept responsibility for the situation.

He also claimed that funds funneled into the pseudo-state from the Turkish government are misused, resulting in more requested outlays and accompanying dissatisfaction by Ankara.

The so-called Turkish republic of northern Cyprus in the areas occupied by Turkish forces since 1974 was illegally declared in 1983. To date, only Ankara recognises the pseudo-state.

As opposed to the prosperous government-controlled areas, the Turkish-occupied northern third lacks modern infrastructure and has been in a severe state of economic decline since the Turkish invasion.

[04] US support bicommunal, bizonal and federal solution in Cyprus

US Assistant Secretary of State on European Affairs Mark Grossman on Wednesday confirmed that the US continues to support the creation of a bicommunal, bizonal federation in Cyprus.

"The target of the US is clear: Bicommunal, bizonal and federal. I am aware that this is not everyone's target, but this is our position," Grossman said during a briefing on prospects being shaped in relations between Europe and the US for 2000.

Grossman said the US will make efforts together with Greece and Turkey for a solution in Cyprus which will create conditions of peace and stability in the eastern Mediterranean, while rejecting the Turkish position that the Cyprus issue has already been resolved with the 1974 invasion.

"It is not a problem which has been resolved. The G8 say this, the UN say this and this is the reason that they all came to New York. They did not come to agree that the problem has already been resolved. They came to try to find a balanced solution," he said.

Holbrooke meets Greek American leaders

US Ambassador to the United Nations Richard Holbrooke and Congresswoman Carolyn B. Maloney (D-Queens, Manhattan)on Monday met with Greek American leaders for a discussion of Greek-Turkish differences and the Cyprus problem.

"This was a very productive and important exchange of ideas. Ambassador Holbrooke's insights provide Greek Americans with valuable information on progress towards peace in Cyprus and the Aegean," said Maloney of the meeting.

Participants in the meeting included Philip Christopher, president of the International Coordinating Committee of Justice for Cyprus (PSEKA)and G. Tsivikos, President of the Cyprus Fede-ration of America.

[05] Gov't to discuss air force armaments programme next week

Athens, 13/01/2000 (ANA)

Following a meeting chaired by the premier and attended by the finance ministry leadership, the minister said the KYSEA session would also discuss Greece's participation in the production of the Eurofighter, a final agreement for the purchase of more US-made F-16 fighter planes, as well as an agreement for the acquisition of French-made Mirage 2000-5 jetfighters and the upgrading of several of the air force's Mirage 2000s into Mirage 2000-5 fighters.

[06] Greek FM in London Thursday, Turkish visit on Jan. 20-21

ANKARA, 13/01/2000 (ANA)

The Greek FM is scheduled to meet with his Turkish counterpart Ismail Cem and several major Turkish entrepreneurs. In addition, several recently penned agreements between Athens and Ankara on issues related to tourism and the environment will be signed during the Greek FM's contacts in Ankara, Turkish foreign ministry spokesman Sermet Atacanli said.

Meanwhile, an ANA dispatch from London reported that Papan-dreou will be in London on Thursday to participate in a public discussion focusing on the topic of The Significance of 1989s Ideas. Earlier, Papandreou will have separate meetings with British Foreign Secretary Robin Cook and Czech FM Jan Kavan.

The foreign ministers of Britain, the Czech Republic and Greece are set to serve on a panel of discussion focusing on social and political movements in the 1980s.

[07] Karamanlis urges government to set election date

ATHENS, 13/01/2000 (ANA)

"We shall not be taken by surprise, this battle belongs to New Democracy and we will be ready anytime it (election) takes place. We stress, however, that the prime minister is not entitled to play games with (democratic) institutions," he said during a speech in the Athens suburb of Chalandri.

The leader of the main opposition was on the whole mild in his criticism of the government, with many references to the need for consensus and political openings to supporters of other parties.

Karamanlis also noted that one of the biggest problems of the times was the widening of the gap between rich and poor, as well as betweem social and regional inequalities.

"The search for jobs is the most pressing problem of 2000. Our party's answer to this problem lies in the implementation of a comprehensive speedy economic programme, which secures a dynamic and balanced growth, overturning the trends which increasingly lead more citizens to the margins," he said.

He cited the need for market deregulation, broad tax reform which will provide much-needed relief to wage-earners, pensioners and large families, speedy utilisation of investment

funds under the EU-sponsored Community Support Framework III through the introduction of mechanisms guaranteeing transparency, and support for small and midsized companies.

Referring to the stock market, he said, it needed urgent modernization and measures promoting transparency that would protect the small-time investor.

[08] Simitis, unions discuss incomes policy

ATHENS, 13/01/2000 (ANA)

Polyzogopoulos told reporters after the meeting that he briefed the prime minister on GSEE's pay increases demands for the current year.

Union sources said GSEE would ask for a 4.0 percent pay increase this year.

Greece's largest workers' union president also asked the prime minister to adopt an incomes redistribution policy following the country's entry in EMU.

The two men discussed the problem of 6,000 unemployed at the age of over 55 years old. GSEE seeks to place this category of unemployed into pre-retirement status. Polyzogopoulos said the prime minister responded positively to the demand and that a solution could be found in the next few days.

[09] Papariga warns of EMU aftermath in Keratsini speech

ATHENS, 13/01/2000 (ANA)

Speaking in Keratsini, a southwestern Athens district, Papariga also said she will in time address the medium and longterm consequences of the EU Helsinki summit and the Unions enlargement, as they are to affect the people.

Referring to general elections due later in the year, she said "it is not which of the two major parties will come first or second which will be judged at the upcoming elections. What is at stake is whether the election struggle will express the disposition of wider working classes to be emancipated from the one-way roads and the supposed national targets of EMU."

Papariga toured workplaces of the Piraeus Port Organisation (OLP) in the morning and expressed strong opposition to the privatisation of both OLP and the Thessaloniki Port Organi-sation.

[10] Burns protests to Christodoulos over statement on Clinton

ATHENS, 13/01/2000 (ANA)

The ambassador met informally with Archbishop Christodoulos at a business gathering and had a brief private conversation.

"We were upset because the President is a good man and an anti-American climate musn't be created," the sources quoted Burns as saying.

"You are aware of my views on Kosovo. I have nothing against the president himself as a man, but I cannot accept bloodshed. You should not have used your firepower there," Christodoulos reportedly responded.

[11] Parliament president receives outgoing Chinese envoy

ATHENS, 13/01/2000 (ANA)

During their meeting, Kaklamanis highlighted the Chinese envoys contributions to upgrading Sino-Greek relations over the 13 years he has served in Athens. On his part, the veteran Chinese diplomat -- speaking in fluent Greek -- expressed his satisfaction over the development of bilateral relations in the past few years.

He also referred to Kaklamanis efforts to upgrade bilateral rela-tions, particularly the Parliament presidents visit to the worlds most populous country in July 1998.

[12] Plan unveiled for Greece's first private power plant

ATHENS, 13/01/2000 (ANA)

Deregulation of Greeces electricity sector is slated for February 2001.

The agreement was signed by ENELCO along with the Turkish Gamma construction firm and Exxon Power at the Copelouzos group offices in Athens.

Under the ambitious plan, the 400-600MW natural gas-fired plant is expected to operate in three years time, with its power to be sold to neighbouring countries and domestic selected clients.

Several ministers, deputies, diplomats as well as a number of entrepreneurs attended the signing ceremony.

The ENEL group holds 50 per cent of ENELCOs shares through its subsidiary ENEL Power, with the remaining 50 per cent split between DAMCO Energy S.A. part of the Copelouzos group and Prometheus Gas.

[13] Wholesale prices index up 0.5 pct in November

ATHENS, 13/01/2000 (ANA)

The NSS said that WPI inflation was running at 4.2 percent in November from the same month in 1998. Wholesale prices were up 0.8 and 0.3 percent respectively in November 1998 and 1997.

Wholesale inflation was steady at 3.5 percent, on a year-on-year base, in November 1998 and 1997, respectively.

The NSS attributed the monthly rise in the index to increases in import product prices and domestic agricultural produce prices

[14] Greek stocks end volatile session mixed

ATHENS, 13/01/2000 (ANA)

Dealers said the market was awaiting the government's decisions over the drachma's parity ahead of the country's entry in EMU. They cited a negative climate in international markets as another undermining factor.

The general index ended 0.05 percent lower at 5,187.33 points, off the day's lows of 5,083. The index had temporarily reb-ounded to 5,265 points by mid-session only to succumb to renewed profit-taking by the close. Turnover was a moderate 261 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.04 percent to 2,695 points, while the FTSE/ASE MID 40 index eased 0.01 percent to 950.75 points.

The parallel market index for smaller capitalisation stocks ended at 1.602,35 points, off 2.18 percent.

Broadly, advancers led decliners by 160 to 154 with another 13 issues unchanged.

Korasidis Telecom and ETBA saw their share prices jump 344.62 and 37.33 percent higher, respectively, on the first trading day on the market. Korasidis share price soared as much as 1,800 percent initially due a mistake in a buy order of 129,000 drachmas per share, worth five billion drachmas. ETBA saw its share price fall below its offering price before its final close.

ETBA and Panafon were the most heavily traded stocks.

[15] Bulls lift bonds out of the doldrums

ATHENS, 13/01/2000 (ANA)

Players also extended their interest to long-term paper that recently had been dumped in favour of mid-term securities.

In previous sessions, prices fell in line with declines in other European markets on fears of a new round of rate hikes.

On Wednesday, the benchmark 10-year bond gained 35-40 basis points to show a yield of 6.67% from 6.69% a day earlier and 6.57% on Monday.

The yield spread over German bunds narrowed to 112 basis points from 117 basis points on Tuesday and 112 basis points on Monday.

The newly issued 20-year bond rose from the previous day, its first on the market, to show a yield of 6.81 percent.

Turnover through the central bank's electronic trading system was 114 billion drachmas from 102 billion drachmas in the previous session and 112 billion drachmas on Monday.

Analysts have forecast an overall decline in domestic paper due to uncertainty over price levels in markets abroad and the fact that players have already discounted Greece's entry into the euro zone, which means the expectation is unlikely to drive prices up any further.

[16] Drachma firms vs most currencies

ATHENS, 13/01/2000 (ANA)

The Bank of Greece bought around 100 million euros to stabilise the drachma at lower levels after selling the same amount a day earlier in order to nudge up the flagging national currency.

At the central bank's daily fixing, the euro was set at 330.800 drachmas from 330.950 drachmas in the previous session and 330.750 drachmas on Monday.

Also at the fix, the US dollar was set at 321.080 drachmas from 321.250 drachmas a day earlier and 323.160 drachmas on Monday.

[17] Fuel prices cut

ATHENS, 13/01/2000 (ANA)

In the greater Athens area and Thessaloniki prefecture, super petrol will sell for 223.9 drachmas per litre, and unleaded for 206.8 drachmas per litre.

[18] Drachma rate decisions on Thursday

ATHENS, 13/01/2000 (ANA)

He was speaking to reporters following a cabinet meeting to discuss the government's armaments programme on Wednesday.

[19] Four bids submitted in marinas' consultants tender

ATHENS, 13/01/2000 (ANA)

The four bids were made by: a) EFG Eurobank SA, Kantor Business Consultants SA, Triton Engineers Ltd and S.Sagias & Associates Law firm, b)Arthur Andersen Accountants, RCD Engineering and Panaconstantinou Law firm, c) CCF Charter-house, Lamda, Parsons, Aronis-Dreppas-Karlaftis Engineers SA, Allen & Overy, M&P Bernitsa Law firm, JBR Hellas, Global View SA, Remaco SA, Elias Paraskevas Law firm and d)Agricultural Bank of Greece, PriceWaterhouseCoopers.

The Greek government plans to attract - through assingment tenders - investors willing to invest in tourist infrastructure. These investors will finance, build and manage projects in the programme.

The financial consultant will help state agencies in preparing technical and financial dossiers in tendering procedures.

National Economy Undersecretary, Christos Pahtas, said on Wednesday that tourism exploitation of marine resources was a vital priority of the country's economy.

[20] Greek business delegation to visit Kosovo

ATHENS, 13/01/2000 (ANA)

The trip is sponsored by the Federation of Northern Greek Industries and the Greek-American Chamber of Commerce.

The group will travel to Kosovo aboard a military transport plane for the one-day visit. Contacts with several NATO and inter-national officials, including UN High Representative Bernard Kouchner, stationed in the province are planned.

[21] Greek-Italian business symposium to be held in Athens next week

ATHENS, 13/01/2000 (ANA)

The symposium was organised at the initiative of the Italian Chamber of Commerce in Greece and will deal with buy-outs, bank mergers, electronic commerce and the reconstruction of the Balkans.

It will also discuss the creation of consortiums, the prospects of the Athens Stock Exchange following entry to the Economic Monetary Union (EMU), as well as Greek agricultural products in the unified European market.

Discussions will also focus on current issues such as "Bio-environment and Bio-civilisation: New revival of businesses" and "Modern management as a lever for the development of civic organisations."

Transport and Communications Minister Tasos Mantelis, Agriculture Minister Georgos Anomeritis, National Economy Deputy Minister Rodoula Zisi, deputies, chairmen of chambers and bank governors, were invited to address the symposium.

[22] Gov't tables amendment regulating penalty rates

ATHENS, 13/01/2000 (ANA)

Under the amendment, penalty rates may not exceed four times the total principal of the loan if the delay in interest payments goes back to the end of 1985.

The rates may not exceed three times the principal for delays dating back to 1990, and double for loans dating back to April 1998.

The terms of the amendment do not cover debtors with overdue loans who have negotiated settlements with banks.

[23] Arthur Andersen sees 1999 revenue rise

ATHENS, 13/01/2000 (ANA)

The improvement in performance was due mainly to the award of major business involving corporate acquisitions, mergers and restructuring in both the private and public sectors, managing director Spyros Lorentziadis told a news conference.

The company also expanded its business in risk management, real estate consulting and projects on the security of computer systems, Lorentziadis added.

The Greek branch of Arthur Andersen has around 200 staff.

[24] Infant from Kosovo to undergo surgery in Athens on Thursday

ATHENS, 13/01/2000 (ANA)

Thirteen-month-old Rita Bekceli arrived in Thessaloniki on Wednesday with her mother and is expected to travel to Athens in a Greek Air Force plane on Thursday to undergo the scheduled surgery.

Her parents, who feared paralysis in the other leg as well, called on Greek Doctors of the World, who are active in Kosovo, to help their child, who in their turn arranged for the infants transport to Greece in cooperation with the Greek Foreign Ministry.

Medical treatment necessary for the infants condition was not possible in Kosovo, as the medical care in that region was in a state of dissolution.

Hospitals in Pristina, Prizren and Kosovska Mitrovica do not possess the equipment necessary to deal with such cases.

The Serbs who manned hospitals and their equipment were driven out and it is doubtful whether the Albanians who succeeded them have elementary knowledge of medicine, according to reports from the Serbian province.

[25] Head of the Church of Greece praises Microsoft

ATHENS, 13/01/2000 (ANA)

AVGHI: "He's hiding (Archbishop Christodoulos) behind the handouts of the faithful", a reference to the newspaper's story that he allegedly failed to pay 300 million drs. to the quake-stricken victims".

AVRIANI: "Banks prevent abolition of penalty interest rates".

APOGEVMATINI: "New big drop in the Athens Bourse", and elsewhere it frontpaged an exclusive on the new building regulations under the title: "changes-gift to the building sector".

ELEFTHERI ORA: "Large quantities of arsenic flow in the water of Thessaloniki -- death flows from the taps...".

ELEFTHEROS: "Industry of trading entry permits into Greece -- a dirty match-making", a reference to a multibillion-drachma racket of selling visas in Albania and the arrest of a consular employee at the border with a valise loaded with millions of drs.

ELEFTHEROS TYPOS: "Retirement for all at the age of 65".

ELEFTHEROTYPIA: "Agreement on the penalty interest rates".

ESTIA: "Early elections ruled out by the Constitution".

ETHNOS: "Striving for a job -- Banks: 35,000 candidates for 1,149 hirings".

EXOUSIA: "The successful issue of the 20-year bond (issued yesterday)is considered a vote of confidence for the government".

KATHIMERINI: "On the steps of unemploytment.... our children seek a place in the sun...".

LOGOS: "Simitis has 'locked out' elections".

RIZOSPASTIS: "Popular uproar over the lawsuit against 'Rizospastis'.

STO KARFI: "Exclusive talk with G. Kefaloyannis...the head-hunter".

TA NEA: Dealt with the country's thorny traffic problem under the banner headline: "No parking space for 99 out of 100 private cars..."

TO VIMA: "Retirement for all at the age of 65 -- Labour Minister M. Papaioannou explains the government's intentions".

VRADYNI: "A storm of illegalities in turning aliens into Greeks".

[01] Papandreou: No possibility of pseudo-state's recognition

NICOSIA 13/01/2000 (ANA)

The Greek minister, on the island republic for talks with the Cypriot government and its political leadership, added that the European Union has for some time now decided on the way with which to deal with the Turkish Cypriot community.

Papandreou was responding to a press question over the possibility that the T/C pseudo-state -- illegally declared in 1983 in the areas occupied by Turkey since 1974 -- could be recognised, and in light of recent statements by T/C leader Rauf Denktash that he would seek to establish contacts with the 15-member bloc.

He spoke at a press conference after a meeting with Cypriot President Glafcos Clerides, talks which reportedly touched on the new prospects afforded for a solution to the Cyprus problem following the recent EU Helsinki summit and Turkeys designation as an EU candidate-country.

Papandreou again mentioned the standing proposal by Clerides for the participation of a T/C delegation in the accession negotiations Nicosia is holding with the EU, while adding that the Union supports the initiatives taken by the Cypriot government.

Other topics of discussion during the meeting with Clerides included the Greek FMs visit to Turkey and latest developments in Greek-Turkish relations.

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