Athens News Agency: Daily News Bulletin in English, 00-01-15

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

CONTENTS

[01] Cyprus issue can benefit from 'people's diplomacy', Papandreou says

[02] Simitis urges ministers to stay focused

[03] ND leader Karamanlis criticises premier for failing to determine election date

[04] 'All or nothing' peace deal with Syria desired by Barak gov't: Israeli sources

[05] Greece, Czech Republic agree on economic cooperation

[06] Drachma under pressure on ERM talk

[07] Borrowers, political parties oppose gov't measures

[08] Bonds surge on drachma revaluation hopes

[09] Greek stocks rebound strongly on Friday

[10] Tax revenue jumps from bourse, mobile phones

[11] Greece to auction five-year bonds

[12] ADEX begins trading on 10-year bond futures contract

[13] Thessaloniki business delegation to visit Romania in April

[14] Bouncing checks fall 8.7 pct in 1999

[15] TAXIS data safe, finance ministry says

[16] Olympic Airways domestic flights to be upgraded

[17] One Athens hospital reaches capacity after deluge of cold sufferers

[18] Police battle youths at Athens Polytechnic

[19] Greek-Italian Chamber of Commerce book on "Two peoples-One history"

[20] Taxi drivers to strike next week

[21] Thessaloniki to take action against illegally parked vehicles

[22] Public Order Ministry-Pilot programme

[23] Clerides rejects calls for resignation

[24] Denktash considered main obstacle to solution of Cyprus problem

[25] UN chief to attend second round of Geneva talks

[26] Cyprus, Britain sign Memorandum of Understanding

[27] The Athens dailies at a glance

[01] Cyprus issue can benefit from 'people's diplomacy', Papandreou says

Athens, 15/01/2000 (ANA)

Papandreou made the comments during an interview with CNN Television in London, where earlier he met with British Foreign Secretary Robin Cook.

The Cyprus issue topped the agenda in his talks with Cook, Papandreou said. Discussed were Cyprus proximity talks, set to resume in Geneva at the end of the month, and what could be done to help them progress.

He said one way to facilitate progress in "bringing down the last Berlin wall" on divided Cyprus was a more active role for the European Union in intercommunal contacts between such groups as youth and women's organisations and non-governmental organisations. Papandreou said he believed both communities on the island were ready for this type of contact.

"... I think they are very ready and that they do want to have contacts. I have been in contact with Greek Cypriot non-governmental organisations and they very much want to meet with their counterparts in the Turkish Cypriot community...I believe the Turkish Cypriots also want to get together."

Papandreou said recent developments on a European Union level - such as the decision of the EU Helsinki summit to effectively dissociate progress on Cyprus' bid to join the EU from resolving the island's political problem - had fostered a "new mood, a new climate".

The summit, which also bestowed on Turkey EU candidate country status, "will change the atmosphere and bring a new spirit of possible cooperation in the future," he said.

"I very much believe that people's diplomacy can work and we saw how much it has worked between Greece and Turkey over these last few months," he said.

The change in climate in relations between Greece and Turkey in the wake of the two earthquakes in August and September had provided a critical impetus to developments.

Cyprus issue can benefit from 'people's diplomacy', Papandreou says "The earthquakes gave an opportunity to the peoples both of Greece and Turkey to show both the solidarity to each other but also to send a very strong message to both leaderships of the countries that peace is what they want and cooperation is what they want. "But, in fact, this mood began, or the first steps, began earlier, some months earlier, when Mr. Cem, the foreign minister of Turkey, and I got together to begin working (on) a different, I would say, perspective of our relationships, trying to find common interests rather than looking at sore points."

Papandreou is scheduled to visit Ankara next week to sign a number of agreements arising from these contacts, dubbed 'low-level' talks. Cem is due in Athens shortly afterwards to sign more of these agreements, which focus on cultural, economic, tourist, trade, security and environmental issues.

"We have been able to show that there is much we can do when we work together and I think within this spirit - now that Turkey of course is becoming part of the European process and we want to help Turkey on this ...we will be working with them in helping them adopt the so-called community acquis, the community laws and so on," the Greek foreign minister said.

Papandreou also welcomed Turkey's decision earlier this week to suspend the death sentence passed down on Kurd rebel leader Abdullah Ocalan, saying it was an indication of Turkey's willingness to apply European standards and principles. "In many ways I applaud their decision also and the concept which is a very European concept that capital punishment is not within our European standards. This is understood by the leadership in Turkey and this was an application of their understanding," he said.

[02] Simitis urges ministers to stay focused

Athens, 15/01/2000 (ANA)

The premier told the members of his government that it was imperative that the work achieved to date be supported and improved upon.

Simitis said that Greece was entering the 21st century with dynamism in the economics sector and ready to tackle the effects of globalisation and rapid changes wrought by technology.

In terms of Greece's foreign policy, he added, the country has developed authority and a presence on the international stage and is considered a leading factor of stability in the region of southeast Europe.

Specifically referring to the issue of health, Simitis noted that Greece was the only country in the European Union which was not cutting back but actually boosting spending on health. This also held for the sectors of education, welfare, employment and vocational training, he said.

[03] ND leader Karamanlis criticises premier for failing to determine election date

Athens, 15/01/2000 (ANA)

"He deliberately tried to create a pre-election climate hoping to tire the small parties, but he saw afterwards that the margins for tactics were being undermined and started to place the responsibility on associates of his, while the responsibility is his," he said.

Karamanlis, who said that his party cannot be taken by surprise, is fully prepared and victory belongs to it, noted that ND is seeking the greatest possible social support and the widest popular confidence and called on party officials to work intensively and to realise that now is the time to contribute to victory.

He said that the ruling PASOK party has moved to neo-liberalism, to a role of copier, adding that this did not mean that the two parties have been led to an identity of policy.

"The government finds itself today where we were 20 years ago and has become bogged down at this point, being the prisoner of the establishment which created unbridled and morbid partisanship, an establishment and conservative conception," he added.

Karamanlis referred to the need for bold and balanced economic development with the prevention of the widening of social and regional inequalities and the tackling of unemployment.

He further said that foreign policy requires consensus and composition, while education needs a revolution and a change in political mentality with the abandonment of sterile refusal and fabricated partisan confrontation.

Karamanlis said that all Greeks should jointly form a social movement of resistance to decline which will be at the same time a movement against corruption and intransparency.

[04] 'All or nothing' peace deal with Syria desired by Barak gov't: Israeli sources

Athens, 15/01/2000 (ANA)

I believe Barak will tell the Israeli public opinion that well have either peace with security, or I tried and its not possible at this stagehes going to the core issuesfull reconciliation, an Israeli diplomatic source said in the Greek capital. Barak this week predicted that the two countries might sign a peace agreement in two to three months, although direct approval of aging Syrian leader Hafez al-Assad is necessary. Speaking during an interview with CNN, the Israeli PM also forecast that any such deal would easily pass the test of a promised referendum on the controversial land-for-peace swap.

Israels parliament, the Knesset, will first have to approve any peace agreement by at least a 50 per cent plus one margin, namely, 61 MPs out of the legislatures 120.

We dont have a year, we dont have even many months. Its a matter of the next, lets say, two to three months that we will know whether we have an agreement with Syria, he told the Altanta-based international news network.

Barak met with Syria Foreign Minister Farouq al-Shara in Sheperdstown, West Virginia, earlier in the week and will resume negotiations with him, again in the United States, on Jan. 19.

Israel occupied the strategic Golan Heights during the 1967 Six Day War, with the land demarcation issue today comprising the main stickling point in any possible Israeli-Syrian peace deal. Water rights and Israeli concerns over security are also high on the list of topics of negotiations. Another source of dissention amongst the Israeli public opinion is the vehement opposition of any territorial concessions by the approximately 17,000 Israeli settlers on the Golan Heights.

In terms of talks with the Palestinian leadership, sources in Athens dismissed speculation that Palestinian leader will force Israels hand by declaring independence and Jerusalem as his capital. Both sides must accept any agreement. No unilateral moves will be recognised. If he (Arafat) declares Jerusalem as his capital, so what? He wont have JerusalemIf he moves with a unilateral step, then Israel can move with a unilateral step.

Israeli sources also said that while under the Oslo agreements, the Palestinians will soon have some 40 per cent of the West Bank and Gaza territories in their control more-or-less, we dont see enough reconciliation; where is the 40 per cent of peace, if you can measure peace?

Referring to Lebanon, Israeli sources said the Barak government has committed to redeploying the Israeli forces to international borders once an agreement with that country is finalised, although that is not only up to us, it also depends on Syria and HezbollahSome say this (commitment for redeployment) prompted (Syrian leader) Assad to talks. Barak, in fact, has mentioned July as a date for the IDFs return to international borders.

In an unrelated development and in a reference to Israeli-Turkish relations and the Ocalan affair, the same sources said Israel made it clear to Damascus during the period when Turkey was pressuring Syria over the presence of the rebel Kurd leader in the country that it would not become involved whatsoever, we even reduced our forces on the border with Syria, they said.

Greek President of the Republic Kostis Stephanopoulos is scheduled to officially visit Israel in the coming months, a move that comes after a distinct upgrading of relations between the two east Mediterranean countries over the past few years, complete with heightened trade relations and cooperation on a number of fields. No exact date for Stephanopoulos visit has as yet been released.

Greek Transport Minister Tassos Mantelis, however, will visit the Mideast country next week for talks focusing on the telecoms sectors and possible Israeli interest in the new Athens international airport at Spata.

[05] Greece, Czech Republic agree on economic cooperation

Athens, 15/01/2000 (ANA)

The memorandum was signed in London where Foreign Minister George Papandreou met with Czech counterpart Jan Kavan.

The two ministers agreed that they would work closely together to provide the most effective assistance possible to economic entities in either Greece or the Czech Republic that wish to participate in the economic reconstruction and development of areas affected by conflict and war.

The pact provides for close cooperation between the two ministers on coordinating the participation of Greek and Czech enterprises in regional economic reconstruction.

It makes specific mention of exchanging information on market opportunities for such enterprises and cooperating on promoting business opportunities provided by the work of the Stability Pact and the European Agency for Reconstruction.

A joint Greek-Czech board, to be based in Thessaloniki, will also be established under the memorandum. The board will operate under the auspices of both foreign ministers and receive organisational support from the Macedonia-Thrace Ministry and the Czech Embassy in Greece. The board is also expected to develop a close working relationship with the inter-Balkan and Black Sea Business Centre and other collective business organisations able to provide infrastructure and expertise to busines support services in the region of southeast Europe.

Foreign Minister George Papandreou, commenting in London on the memorandum said that other countries are also showing interest to reach similar agreements with Greece and in this way, he added, "a new road opens for Thessaloniki and for the role of Greece in the region."

"The Czech Republic has expressed great interest in cooperating with us for the reconstruction of the Balkans through the creation in Thessaloniki of a committee, an office if you wish, which will be connected to the reconstruction service in Thessaloniki and will allow the Czech Republic to actively participate in this effort." Papandreou said.

"I further wish to stress that similar requests have been made by many other countries. With the Czech Republic, it is the first agreement which we have signed which now opens a road for Thessaloniki and for the role of Greece in the region and for Balkan reconstruction," the Greek foreign minister concluded

[06] Drachma under pressure on ERM talk

Athens, 15/01/2000 (ANA)

The Bank of Greece had bought around 100 million euros on Wednesday to stabilise the rising drachma at lower levels after selling the same amount on Tuesday in order to nudge up the flagging national currency. There was no intervention on Thursday.

[07] Borrowers, political parties oppose gov't measures

Athens, 15/01/2000 (ANA)

The amendment is due to be tabled in parliament on Tuesday. Borrowers called the government plan "timid" while the main opposition party ND tabled its own proposals in parliament. ND's proposals envisages that commercial banks should reform debtors' accounts on the base that additional sums should be deducted while the remaining sum could not be higher than three times the initial capital of the loan.

The government-sponsored amendment was also opposed by some deputies in the ruling PASOK party.

Government spokesman Dimitris Reppas, however, said the amendment offered solutions to the problem, while the Hellenic Bank Association called the proposals bold and unprecedentedAnalysts had forecast an overall decline in domestic paper due to uncertainty over price levels in markets abroad and the fact that players had already discounted Greece's entry into the euro zone, which meant the expectation was unlikely to drive prices up any further.

However, talk of the drachma's imminent revaluation helped to give the market a new impetus.

[08] Bonds surge on drachma revaluation hopes

Athens, 15/01/2000 (ANA)

Also fuelling trade was a brighter outlook in markets abroad. At home, buyers have been active for three straight sessions, lifting the market out of a moribund phase.

On Friday, the benchmark 10-year bond rose in the wake of recent gains to show a yield of 6.51 percent from 6.63 percent a day earlier and 6.67 percent on Wednesday.

The yield spread over German bunds narrowed to 103 basis points, a historic low, from 111 basis points in the previous session and 112 basis points on Wednesday.

Turnover through the central bank's electronic trading system was 320 billion drachmas from 98 billion drachmas a day earlier and 114 billion drachmas on Wednesday.

Buy orders accounted for the bulk of Friday's turnover, as in recent sessions. In addition, turnover outside the electronic system was around 120-130 billion drachmas, traders said.

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

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

Analysts had forecast an overall decline in domestic paper due to uncertainty over price levels in markets abroad and the fact that players had already discounted Greece's entry into the euro zone, which meant the expectation was unlikely to drive prices up any further. However, talk of the drachma's imminent revaluation helped to give the market a new impetus.

[09] Greek stocks rebound strongly on Friday

Athens, 15/01/2000 (ANA)

It ended at 5,273.83 points, up 1.78 percent, unable to surpass the 5,300 level on lack of follow-through buying and low liquidity. Turnover was a low 200.38 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 189 percent to 2,727.40 points, while the FTSE/ASE MID 40 index jumped 2.49 percent to 973.72 points.

The parallel market index for smaller capitalisation stocks ended 4.28 percent higher at 1,668.09 points.

Broadly, advancers led decliners by 285 to 39 with another four issues unchanged.

A total of 21 shares ended at the day's 8.0 percent limit up.

Lazarides Vineyard's shares soared 389.6 percent on the first trading day in the parallel market.

ETBA, ANEK Lines, Techniki Olympiaki and Intersat suffered the heaviest losses. ETBA and Panafon were the most heavily traded stocks.

[10] Tax revenue jumps from bourse, mobile phones

Athens, 15/01/2000 (ANA)

A tax on bourse transactions brought the finance ministry more than 230 billion drachmas in revenue in 1999 from 36.6 billion drachmas a year earlier, marking a rise of 528 percent. A levy on the income of the country's three mobile phone operators brought the ministry 8.4 billion drachmas last year from 5.0 billion drachmas in 1998, up 66 percent.

[11] Greece to auction five-year bonds

Athens, 15/01/2000 (ANA)

[12] ADEX begins trading on 10-year bond futures contract

Athens, 15/01/2000 (ANA)

Finance Undersecretary, Nikos Christodoulakis, launching the new derivatives product said it was "an important financial tool for bond investors to manage interest rates risks. This new category of products was upgrading the Greek market into a mature and modern bond market".

Christodoulakis referred also to a government decision to level taxation on corporate and state securities. This decision would strengthen and significantly expand Greek companies' funding capabilities beyond the traditional bank loans or share capital increases, he said.

[13] Thessaloniki business delegation to visit Romania in April

Athens, 15/01/2000 (ANA)

[14] Bouncing checks fall 8.7 pct in 1999

Athens, 15/01/2000 (ANA)

Unpaid bills totalled 24,008 in December, worth 6.29 billion drachmas, down 8.8 percent in volume and 15.6 pct in value from the same month in 1998.

Bouncing checks totalled 9,072 worth 20.8 billion drachmas, down 17.7 pct in volume and 5.2 pct in value, over the same period. Unpaid bills totalled 303,198 in 1999, worth 83.9 billion drachmas, off 15.1 pct in volume and 14.9 pct in value compared with 1998 figures.

Bouncing checks totalled 117,916 woth 251.8 billion drachmas, down 8.7 pct in volume and 4.3 pct in value from 1998's levels. Bankruptcy applications totalled 2,227 in 1999, up 0.7 pct from the previous year, while bankruptcies totalled 731, down 16 pct from 1998.

[15] TAXIS data safe, finance ministry says

Athens, 15/01/2000 (ANA)

The finance ministry underlined that all tax bureaus operated normally on Friday using their local computer servers.

[16] Olympic Airways domestic flights to be upgraded

Athens, 15/01/2000 (ANA)

Replying to a main opposition New Democracy party question concerning the sale of Olympic Airways, Mantelis clarified that the upgrading of flights will start from the Athens-Thessaloniki route where more first class tickets will be issued at a reduced price.

Mantelis voiced optimism that Olympic Airways will meet the rules of modern competition , not only with small companies but with large ones as well. Referring specifically to British Airways, he stressed that one of the greatest competitors was converted into a partner.

He further said that the transfer of Olympic Airways to Spata will be completed by 1 March. Finally, he noted that the national carrier's profits in 1998 amounted to 1 billion 660 billion drachmas.

[17] One Athens hospital reaches capacity after deluge of cold sufferers

Athens, 15/01/2000 (ANA)

[18] Police battle youths at Athens Polytechnic

Athens, 15/01/2000 (ANA)

[19] Greek-Italian Chamber of Commerce book on "Two peoples-One history"

Athens, 15/01/2000 (ANA)

[20] Taxi drivers to strike next week

Athens, 15/01/2000 (ANA)

The taxi drivers have also called the warning strike to demand immediate replacement of taxi licence plates so as to weed out illicit taxis.

[21] Thessaloniki to take action against illegally parked vehicles

Athens, 15/01/2000 (ANA)

The measures are part of a public order ministry pilot programme to get tough on illegal parking in the central downtown region of the city.

Announcing the measures on Friday, Thessaloniki Traffic Directorate Chief Nikiforos Tzatzakis said that his service would give Thessaloniki drivers a chance to get used to the new status quo, with traffic police issuing warnings on Monday and Tuesday and removing licence plates and towing vehicles away as of Wednesday. Some 350,000 to 400,000 vehicles circulate in the wider Thessaloniki area but there are only about 10,000 legal parking spaces.

Tzatzakis told reporters that where to park was not the Traffic Directorate's problem to solve, but suggested that residents make more use of public transport.

Tzatzakis also presented figures on road accidents in the Thessaloniki prefecture, saying that the number of accidents reported to police fell by 6.0 percent on a year on year basis, overshooting a target of 5.0 percent set by the ministry. The same target has been set for 2000, he said.

According to the figures, the number of fatal road accidents fell 8.0 percent; the number of accidents resulting in slight injury by 7.3 percent; and those resulting in serious injury by 5.5 percent. However, the number of drivers found to be driving under the influence of alcohol rose by 13.7 percent while the number of those booked for speeding rose by 109.9 percent.

[22] Public Order Ministry-Pilot programme

Athens, 15/01/2000 (ANA)

[23] Clerides rejects calls for resignation

NICOSIA, 15/01/2000 (CNA/ANA)

[24] Denktash considered main obstacle to solution of Cyprus problem

ISTANBUL, 15/01/2000 (ANA)

[25] UN chief to attend second round of Geneva talks

NICOSIA, 15/01/2000 (CNA/ANA)

This was the information we had from the start and with the end of the first round I made this public, he said referring to the December 3-14 talks in New York, adding that this was one of the reasons which Geneva was chosen because the Secretary-General will be there at that time. Papapetrou said during the second round the same procedure like the first will be followed, that is the talks will be at a proximity level, there will be an embargo on statements and the talks will last for 10 days. Asked about the issues which will be discussed, Papapetrou said at the end of the first round the Secretary-General announced that the objective of the second round will be to further discuss the issues which were examined during the first round. President Glafcos Clerides will be accompanied to Geneva by Attorney-General Alecos Markides, Foreign Minister Ioannis Kasoulides, Papapetrou, and Undersecretary to the President Pantelis Kouros.

Meanwhile, the National Council, the top advisory to the President on the handling of the Cyprus problem, will convene on Tuesday, 25 January, to discuss developments in view of the second round.

Cyprus has been divided since 1974 when Turkish troops invaded and occupied 37 per cent of the islands territory.

[26] Cyprus, Britain sign Memorandum of Understanding

NICOSIA, 15/01/2000 (CNA/ANA)

The conclusion of this memorandum of understanding, which outlines in detail the obligations of each side in relation to exercises in Kalo Khorio, defines clearly the end of manoeuvres in Akamas, Kasoulides said after the signing ceremony.This agreement, he said, was reached on the basis of a provision in the Treaty of Establishment and restricts to ten days the exercises and safeguards fully the rights of the Republc of Cyprus during the exercises in the firing range of Kalo Khorio.The National Guard also exercises in the same area, which will not be affected by the use of the range by British troops, he added. Friendly ties between the two countries and a spirit of cooperation have enabled us to conclude this agreement, initialed on 9 August, he said. Kasoulides described the agreement as the crowning of lengthy efforts, in cooperation with the British government, to find a commonly accepted solution to the issue of military exercises by Britain, in accordance with the provisions of the Treaty of Establishment, which would also satisfy popular demand for a halt to these exercises in Akamas. Akamas peninsula, on the northwestern tip of Cyprus, is an area of unparalleled beauty, where the local flora and fauna attract the interest of many environmentalists. The British High Commissioner welcomed warmly the agreement, describing it as a pragmatic answer to an important issue in Cyprus and is an example of the excellent overall relationship which Cyprus and the UK share.We have taken the opportunity to agree with you that we should share the Republic training resources, Clay said.

[27] The Athens dailies at a glance

Athens, 15/01/2000 (ANA)

ADESMEFTOS TYPOS (Rizos): "As a result of a gross mistake all data has been erased --Chaos in the income tax departments...".

AKROPOLIS: "Unbelievable fiasco: all data has been lost at the central income tax computer," and elsewhere

"the prosecutor intervenes again in the Athens Stock Exchange".

APOGEVMATINI: "Viral infections are sweeping Greece -- terror following 4 deaths".

ATHINAIKI: "Elections on April 23".

AVGHI: "A revealing study by the telecommunications committee shows that mobile phones in Greece are three times more expensive than those in the rest of the European Union".

AVRIANI: "A settlement for 630,000 stremmas of land is being pushed ahead by the Environment ministry -- strong reactions from 26 mayors and community leaders in Attica (the wider Athens region).

ELEFTHERI ORA: Frontpaged an exclusive interview with independent deputy Vassilis Kontogiannoulos under the headline: "New Democracy is being led to an election defeat and a split".

ELEFTHEROS TYPOS: "Deputies say 'no' to (Prime Minister Costas) Simitis' settlement of the interest rates penalties".

ELEFTHEROTYPIA: "A mess in the interest rates penalties".

ELEFTHEROS: "Two women and a man dead from the flu".

ESTIA: "The rules of democracy are not being kept as they should be".

ETHNOS: "Income tax: gifts and agony favourable settlements for self-employed professionals and businessmen -- writing off fines, but losses in 'TAXIS' (the electronic income tax network)".

EXOUSIA: Frontpaged an interview with National economy minister Yiannos Papantoniou under the headline " EMU entry issue 'locks' in March (when Greece submits its application for EMU entry)".

KATHIMERINI: "Interest rates change the scenery -- new status quo in the economy and the Athens Stock Exchange".

LOGOS: "The government bows to the pressure of the banks -- a settlement for bankers".

NIKI: "Greece's application for EMU entry on March 10 -- the timetable was set yesterday".

RIZOSPASTIS: "A provocative mockery of the pensioners", and elsewhere "The Prime Minister and the government are co-responsible for Justice Minister E. Yiannopoulos' lawsuits".

STO KARFI: "Interest rates penalties: a robbery with inte-rest....".

TA NEA: "Economic police (SDOE) looking for 'big fish' with 40,000 Korasidis-Telecom shares who pocketed 4.8 billion drachmas".

TO VIMA: "Carcinogenic water... regions in Thessaly, Kopais, the Argolis plane, the Pinios (Ilias) plain and the plains of Thessaloniki and Messinia have been infected according to a revealing study".

VRADYNI: Frontpaged an "Action plan by the Ministry of Finance until the next elections" under the title: " a 'Festival' of grants"

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