Athens News Agency: Daily News Bulletin in English, 00-01-29

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

CONTENTS

[01] Cyprus' EU accession is unobstructed and final, Tsohatzopoulos says

[02] Papandreou and Albright discuss Cyprus, Greek-Turkish relations, Balkans and Chechnya

[03] ND slams government handling of 2004 Games

[04] Simitis chairs inner cabinet meeting

[05] US Undersecretary of State Thomas Pickering to visit Athens

[06] President Stephanopoulos hosts armed forces reception

[07] Balkan cooperation group gets Thessaloniki office

[08] Karamanlis to visit Agrotica exhibition in Thessaloniki on Sunday

[09] Rokofyllos briefs Parliament's European Affairs Committee

[10] Constantopoulos in Nicosia for talks with Cypriot leadership

[11] Credit expansion accelerates in November

[12] Alpha Credit, Ionian Bank announce lower rates

[13] Two more banks join round of rate guts

[14] Greek stocks rebound strongly on selective small cap buying

[15] Bonds seek equilibrium in thin trade

[16] Dollar's global rise reflected in domestic market

[17] ECOFIN to discuss Greece's convergence program

[18] Balkan business forum to be held in Thessaloniki

[19] Derivatives follow broader market's rebound

[20] Police make arrests in 1990 Corinth museum heist

[21] Delegation of German rectors on five-day visit to Greece

[22] Bomb at rent-a-car company

[23] Negotiator says content of Cyprus peace talks should conform with EU rules

[24] Annan to meet leaders of Cyprus' two communities in Geneva on Monday

[25] T/C leader Talat quoted as favoring federation solution on Cyprus

[01] Cyprus' EU accession is unobstructed and final, Tsohatzopoulos says

Athens, 29/01/2000 (ANA)

Tsohatzopoulos, delivering the keynote address to a forum on "Cyprus' EU accession prospects" while on a private visit to Cyprus that includes meetings with senior government and political party officials, said that in the context of Cyprus' accession course "we have the right to ask for the lifting of the unacceptable condition of invasion and occupation, which is not in line with the European prospect".

The defense minister described as "anachronistic, lacking in historical knowledge and outdated" the "rationale of two states on Cyprus" and called on the Turkish Cypriot community and its leader, Rauf Denktash, to "realize that the time has come to change their policy".

Tsohatzopoulos said there was no prospect of the decisions of the international community being reversed "because some sides insist, on the basis of their own local, social and class interests, to hinder the development of an entire region".

He said that the conditions in the region had changed radically, and Turkey found itself in a different environment in which it no longer had the role of a regional power.

This, he added, had been pointed out also by the United States, which supported Turkey's European vocation in order that peace and security would prevail in the region.

Therefore, Tsohatzopoulos concluded, it should be made crystal clear that there was no possibility of Turkey converging with the "acquis Communautaires" if it did not "advance its contribution for a Cyprus solution and a positive confrontation of the so-called Greek-Turkish problems".

Cyprus Foreign Minister Ioannis Kasoulides said after a meeting with Tsohatzopoulos later that both the island republic and Greece are working intensively, but silently to strengthen Cyprus defenses, despite the ongoing efforts for dtente and peace in the region.

On his part, Tsohatzopoulos said the talks centered on the latest developments in the geopolitical region encompassing Greece and Cyprus, and especially efforts at strengthening the Republic of Cyprus.

Some 37 percent of Cyprus territory has been occupied since the summer of 1974 by Turkish troops, leaving the island republic as one of the most militarized areas, meter for meter, on earth. In addition, a Turkish Cypriot pseudo-state, recognized only by Ankara, was illegally declared in 1983 in the occupied territories.

The Greek minister added that Athens holds the twin notions of defense and security for the island republic as paramount, along with the goal of creating as great a deterrent factor as possible. Additionally, he referred to the promotion of the countries economic vigor, mentioning Greeces expected Economic and Monetary Union entry as an example.

Tsohatzopoulos stressed that the basic axes of bilateral actions remain in force, namely, support for the Greece-Cyprus joint defense doctrine, heightened efforts to solve the long-standing Cyprus problem, as well as the island republics EU accession and joint economic cooperation in the Balkans.

In reference to decisions from last months EU summit in Helsinki, the Greek defense minister said Cyprus unhindered course towards EU entry regardless of a solution to the islands political problem was guaranteed. He also said Turkeys designation as an EU member-state at the same summit will allow Athens and Nicosia, during Ankaras long course of accession negotiations, to table the issues both consider as important for the maintaining of regional peace.

Finally, he said the Helsinki decisions are a positive development in regards to solving the Cyprus problem, a solution that, nonetheless, must be based on United Nations resolutions for a unified, federal entity, where the rights of the Greek Cypriots will be the same and guaranteed as the rights of the Turkish Cypriots.

After meeting his Cypriot counterpart Sokrates Hasikos, Tsohatzopoulos confirmed that the highest level of coordination between Greece and Cyprus has been achieved regarding the effectiveness of joint cooperation and the handling of crises, may they be either theoretical or real.

Referring to latest developments in the wake of the European Union's Helsinki summit, Tsohatzopoulos said "both countries are facing a new framework of moves which, as it should be understood, is influenced by the new relationship between Europe and Turkey."

Tsohatzopoulos said the new relationship and Turkey's commitment to adjust to European established practice constitute the corridors through which "we shall attempt a new kind of rapprochement on a series of issues."

"The precondition for this to happen is our mobilization, full preparedness and the achievement of the Republic of Cyprus' complete and permanent accession to the European Union, on the basis of the Helsinki decisions, which simply consolidates unimpeded accession regardless of when the political problem will be resolved," he said.

[02] Papandreou and Albright discuss Cyprus, Greek-Turkish relations, Balkans and Chechnya

Athens, 29/01/2000 (ANA)

Reports from diplomatic sources said Papandreou requested backing from the US for efforts to achieve a rapprochement between the two communities on Cyprus.

Albright reiterated that the US supports substantive talks to resolve the Cyprus issue, but it believes that substantive developments should not be expected before elections are held in the occupied areas in May.

Developments in Greek-Turkish relations were discussed in the wake of Papandreou's visit to Turkey and in light of the return visit his Turkish counterpart Ismail Cem will be making to Greece early next month. Papandreou also had the opportunity of having a brief discussion with Cem on preparations for his visit to Athens.

The situation in the Balkans, and Serbia in particular, was examined in the light of a recent proposal by the Serbian opposition for early elections to be held together with a simultaneous gradual lifting of the embargo imposed on the country. Diplomatic sources said the US desires to promote democratization in Serbia, in cooperation with the European Union, but insists on maintaining the sanctions slapped on Yugoslavia.

Issues concerning humanitarian aid were discussed in relation to Kosovo, while Papandreou briefed Albright on a recent decision by the Greek government to provide the region with electric power.

Views were exchanged on the situation in the Caucasus area, with emphasis on Chechnya, and relations with Russia. Diplomatic sources said Albright stressed the need for pressure to be exerted for a political settlement to the problem of Chechnya, but added that Russia should not be isolated.

Papandreou, who is due back in Athens on Saturday, and Albright also discussed latest developments on the Middle East problem.

[03] ND slams government handling of 2004 Games

Athens, 29/01/2000 (ANA)

George Orphanos, New Democracy representative on sports issues, reacting to comments by a leading International Olympic Committee official about Athens' preparations for the 2004 Games on Thursday, said that they had proved the government's hamfistedness in managing the Games.

"The statements from the president of the International Olympic Committee's coordinating committee Jacques Rogge are a slap in the face for the government as well as for the non-existent 2004 Organizing Committee, confirming our concerns over the insignificant to negative results of preparations so far to hold the Olympic Games," Orphanos said in a statement.

"The responsibility lies completely and exclusively with the Prime Minister for his choices which have resulted in the international humiliation of our country.

"It's time for the 'group' of inept party and related opportunists to go, because they have now become dangerous."

Rogge, the chairman of the IOCs coordinating committee, told a news conference on Thursday that there had been delays in the organization of certain areas but that he was confident difficulties would be overcome.

Meanwhile, former New Democracy leader Miltiades Evert, commenting on recent press reports that Simitis, concerned over continued delays, had placed important Games projects with his environment and public works minister Costas Laliotis, said his past warnings of delays in preparations for the holding of the 2004 Games had been vindicated.

"A few months ago, Mr. Simitis and Mr. Fouras (deputy minister for sports) assured me that there were no delays in the preparations and more generally in the works being undertaken for the Olympic Games," Evert said.

"According to press reports, the scapegoat is now being sought in the person of the managing director of the organizing committee, Costas Bacouris, and, because of the delays, the responsibility for the construction of sports installations has been withdrawn from Mr. Fouras and placed with Mr. Laliotis."

Evert said however that the main problem was that continued delays provided the government with a pretext to proceed with direct placements of contracts or with hurried tenders for Games projects.

[04] Simitis chairs inner cabinet meeting

Athens, 29/01/2000 (ANA)

According to reports, the Prime Minister is expected to take a final decision as to when general elections will be held within the next fortnight.

Simitis is reported to be concerned with the continued speculation over when elections will be held.

The government has repeatedly said that an election date will take a backseat to the fate of Greece's bid for inclusion in economic and monetary union.

A decision on this is expected in June, at the next European Union summit.

Meanwhile, a number of ruling party PASOK members are reported to be in favor of the government calling elections ahead of the end of its four-year mandate.

Opposition parties have also been vocal in calling for early polls, saying that an extended pre-election period is harmful to the country.

[05] US Undersecretary of State Thomas Pickering to visit Athens

Athens, 29/01/2000 (ANA)

Ambassador Pickering, the third-ranking official at the US State Department, is traveling to eight European countries to discuss Balkan security and trade issues.

While in Greece, he will discuss bilateral cooperation between Greece and the US, as well as "the work the two nations are doing together to promote peace in the Balkans through NATO and the Stability Pact", an embassy statement said.

"As one of our most senior officials, Ambassador Pickering is well-placed to follow up the discussions President Clinton had in his meetings with the Greek leadership last autumn," said US ambassador to Greece Nicholas Burns.

"His visit, the first by an Undersecretary of State in the past six years, signals the strength of the ties between the US and Greece, and indicates the important role Greece is playing in Balkan reconstruction and development," Burns said.

Ambassador Pickering is an eight-time ambassador who holds the rank of career ambassador, the highest in the State Department. Before becoming Undersecretary in 1997, he served for four years as the US ambassador to the Russian Federation.

[06] President Stephanopoulos hosts armed forces reception

Athens, 29/01/2000 (ANA)

The reception was also attended by Archbishop of Athens and All Greece Christodoulos, Parliament President Apostolos Kaklamanis, main opposition New Democracy party leader Costas Karamanlis, Democratic Social Movement leader Dimitris Tsovolas, former presidents and premiers.

The president enquired into the armed forces' map exercise underway code-named "Alexandros", as well as in the current process of restructuring in the armed forces.

After being briefed by National Defense Minister Akis Tsohatzopoulos, who returned today from a visit to Cyprus, on the situation on the island, Stephanopoulos remarked that the Cypriots are concerned "permanently and justifiably."

[07] Balkan cooperation group gets Thessaloniki office

Athens, 29/01/2000 (ANA)

The president of Brussels-based ORCOS, Alexandros Athanasiou, said that the non-profit-making organization aimed to ease access for Balkan and Black Sea companies and agencies to European Union funding.

[08] Karamanlis to visit Agrotica exhibition in Thessaloniki on Sunday

Athens, 29/01/2000 (ANA)

The ND president will arrive in the northern Greek port city in the morning before touring the exhibition in the early afternoon at the Thessaloniki International Fair's pavilions.

He is scheduled to leave for Athens shortly afterwards.

[09] Rokofyllos briefs Parliament's European Affairs Committee

Athens, 29/01/2000 (ANA)

Rokofyllos said the Greek government has not reached final decisions in light of the next intergovernmental conference, which will discuss the review of the Amsterdam Treaty.

He told the members of the European Affairs Committee that an inter-party committee has been set up at the Foreign Ministry to discuss issues which will be included in the next intergovernmental conference, such as the extent of the EU's enlargement, the legal personality of the community, the issue of commissioners for each member-state, the re-evaluation of votes at the community's various bodies, the method for taking decisions and the issue of flexibility.

Ruling PASOK Eurodeputy Petros Efthymiou also referred to the "odd" intentions of European Commission President Romano Prodi for an independent special court to be set up for minority human rights, given that a human rights court already exists which covers it.

[10] Constantopoulos in Nicosia for talks with Cypriot leadership

Athens, 29/01/2000 (ANA)

Additionally, the Greek political leader said the Cyprus issue continues to be a priority for Athens foreign policy, while at the same time pointing to the international communitys responsibility in failing to end the islands 26-year division. He also noted that Cyprus European Union accession course must be unhindered.

Cypriot Foreign Minister Ioannis Kasoulides at the foreign ministry later received Constantopoulos, whereas a meeting with President Glafcos Clerides is scheduled for later in the afternoon.

Earlier, he held a one-hour meeting with Cyprus DHKO party officials.

[11] Credit expansion accelerates in November

Athens, 29/01/2000 (ANA)

The central bank's target for the previous year was an annual growth rate of 7-9 percent.

The Bank of Greece attributed the accelerated growth to a rise in credit expansion to the private and the public sectors, up 18.2 pct and 11.5 pct, respectively in November.

The bank, however, noted that measures to contain consumer credit were beginning to bear fruit, as reflected in a small increase in consumer loans in November.

Mortgage loans growth rates, though, remained fast at 30.2 percent in November, up from 28.7 pct the previous month. Consumer loans rose 40.1 pct in November from 39.9 pct in October.

The wider M4N money supply index's growth slowed to 5.6 percent in December, from 8.0 percent in the previous month, well below the central bank's target for a rise of 8-9 percent in 1999.

[12] Alpha Credit, Ionian Bank announce lower rates

Athens, 29/01/2000 (ANA)

Alpha Credit said it was cutting by 50 basis points its business loan rate to 11.50 percent and its floating mortgage rate to 10.50 pct. Personal loans and 15-year mortgage loans' rates in drachmas and euro remain unchanged.

The bank said its Alpha Visa credit card rate will be cut from 22.0 to 21.75 percent and its American Express card to 9.50 percent for the first six months and to 17.0 percent after that period. American Express charge card's rate remains unchanged at 17.0 percent

Deposit interest rates were also cut by 50 basis points to 7.0 percent.

Ionian Bank said it was cutting its base lending rates by 50 basis points to 11.50 percent and its securities purchase loan rates to 15.0 percent from 15.50 percent.

The bank's floating mortgage rate is also cut by half percentage point to 10.50 percent and its credit card rates by 25 basis points to 21.75 percent.

Ionian Bank's savings interest rate is cut by 50 basis points to 7.0 percent.

[13] Two more banks join round of rate guts

Athens, 29/01/2000 (ANA)

Effective on Tuesday, Commercial Bank is to lower its base lending rate to 11.0 percent from 11.75 percent and base consumer loans rate to 18 percent from 18.50 percent. Its savings deposit rate is to fall to 7.0 percent.

Also effective on Tuesday, Aspis Bank will cut its floating rate on business loans for fixed assets by 75 basis points to 11.25 percent; and its deposit rates will drop to a range of 7.0 percent to 8.25 percent, yielding up to 8.50 percent annually.

[14] Greek stocks rebound strongly on selective small cap buying

Athens, 29/01/2000 (ANA)

The general index surpassed the 5,000 level to end at 5,020.22 points, up 1.59 percent, off the day's highs of 5,045 points.

Turnover was a moderate 206.6 billion drachmas, boosted by heavy trade in Athens Water and Drainage Company's shares, worth 20 billion drachmas, on the first day of trading in the market. Its share price ended 4.4 percent up at 2,610 drachmas.

Shares in the Investment, Leasing and Construction sectors attracted heavy demand to score the biggest gains.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 2,624.11 points, up 1.06 percent, while the FTSE/ASE MID 40 index jumped 2.63 percent to 922.46 points.

Sector indices ended as follows: Banks: 9,119.99 +0.66% Leasing: 1,338.76 +3.42% Insurance: 3,475.24 +2.70% Investment: 2,627.79 +4.22% Construction: 3,270.92 +3.20% Industrials: 3,041.13 -1.57% Miscellaneous: 6,477.67 +2.35% Holding: 6,201.62 +2.29%

The parallel market index for smaller capitalization stocks jumped 4.52 percent to end at 1,516.39 points.

Broadly, advancers led decliners by 293 to 21 with another 12 issues unchanged.

A total of 32 shares ended at the day's 8.0 percent limit up. Doudos, Klonatex (p), Klaoudatos, Alysida (p) and Klonatex (c) suffered the heaviest losses.

Athens Water, Keranis and Naoussa Spinn Mills were the most heavily traded stocks.

Leading shares' closing prices (in Drs): National Bank: 21,710 Alpha Credit: 23,050 Commercial Bank: 22,220 Eurobank: 13,540 Hellenic Telecoms: 7,800 Panafon 4,370 Hellenic Petroleum: 4,090 Titan Cement (c): 16,540 Minoan Lines: 8,070 Intracom: 13,850

[15] Bonds seek equilibrium in thin trade

Athens, 29/01/2000 (ANA)

The benchmark 10-year bond showed a yield of 6.61 percent, the same as in the previous session, taking the yield over German bunds to 103 basis points, also holding steady from a day earlier.

Trade through the central bank's electronic system was low at 77 billion drachmas. Turnover was roughly divided between buy and sell orders.

[16] Dollar's global rise reflected in domestic market

Athens, 29/01/2000 (ANA)

At the central bank's daily fixing, the euro ended slightly higher against the drachma, despite its fall against the greenback.

The euro was set at 331.850 drachmas from 331.530 drachmas in the previous session and 331.480 drachmas on Wednesday.

Also at the fixing, the dollar ended at 336.760 drachmas from 331.380 drachmas a day earlier and 330.700 drachmas on Wednesday.

In trade after the fix, the dollar continued its ascent, hitting an all-time high of 338.800 drachmas.

The central bank did not intervene in the market. Outflows were reported of 3.0 million euros, which was a negligible sum, traders said.

[17] ECOFIN to discuss Greece's convergence program

Athens, 29/01/2000 (ANA)

Ministers will also discuss stability programs for the Nether-lands, Finland and Ireland, along with Portugal's presidency plan.

[18] Balkan business forum to be held in Thessaloniki

Athens, 29/01/2000 (ANA)

The forum is financed by the Inter-Balkan and Black Sea Business Center (DIPEK), as part of the EU Interreg program. It is organized by the Federation of Northern Greek Exporters and will be held at the Thessaloniki International Fairgrounds.

According to speakers at a news conference on Friday, about 100 Balkan countries - 40 Greek, 20 Bulgarian, 20 Romanian, 10 Albanian and 10 from the Former Yugoslav Republic of Macedonia - will be guests at the forum.

Another 100 companies from the European Union are expected to visit during the forum.

Speakers said that interest in the forum had also been indicated from Mediterranean countries such as Cyprus, Turkey, Egypt and Israel. About 20 Turkish companies had already indicated their intention to participate.

The companies involved fall into three broad categories: food and beverages; construction and building materials; and pharmaceutical and medical supplies.

[19] Derivatives follow broader market's rebound

Athens, 29/01/2000 (ANA)

A 1.06 percent rise in the FTSE/ASE 20 index - a benchmark for ADEX - helped in the recovery of prices.

A total of 771 contracts were traded in increased turnover of four billion drachmas.

The February contract ended at 2,659 points, the March contract at 2,699 and the April contract at 2,715 points.

ADEX launched a new derivatives product on Friday, a futures contract based on the FTSE/ASE MID 40 index. A total of 407 contracts were traded worth 1.5 billion drachmas.

The February contract ended at 942 points and the March contract at 945 points.

[20] Police make arrests in 1990 Corinth museum heist

Athens, 29/01/2000 (ANA)

Arrested were Anastasios Karahalios, 43, a businessman, and Ioannis Lioris, 36, unemployed. Also detained in connection with the investigation was a woman, who is expected to be charged with violating the laws on possession of weapons.

Police are still seeking Karahalios' 75-year-old father Tryfonas and his brother, also named Tryfonas, 35. Both men are thought to be in Venezuela. Greek police have enlisted the help of the FBI in trying to find the two fugitives.

The breakthrough in the case came in September 1999 when authorities in Miami, Florida, revealed they had found most of the 271 artifacts stolen from the museum in 12 sealed plastic containers.

Police speculated that the items had been stored in the Miami warehouse because the perpetrators had been unable to sell them to private collectors or a museum.

The trail led to Karahalios and Lioris: Police said a search of their homes yielded a number of ancient artifacts, a variety of guns and ammunition and narcotics.

The 1990 robbery brought to light the problems of security at Greek museums: the Corinth museum had one unarmed guard on night duty to cover hundreds of square meters, while the museum itself had no alarm system.

Police said a gang of at least four robbers gained entry to the museum's building on April 12, attacking the lone guard and stealing one million drachmas destined for the payment of wages.

The robbers clambered over the roof of the building to gain entry to the inner courtyard, broke into the museum's halls and emptied display cases.

Built in 1931 by the American School of Classical Studies and officially handed over to the Greek state in 1934, the museum was considered one of the richest and most interesting archaeological museums outside of Athens and Thessaloniki. Its collection included artifacts from the surrounding region dating from the Neolithic era to the Middle Ages.

Greece has reported more than 30 serious cases of antiquities theft over the past nine years since the Corinth museum robbery and, according to statistics from the archaeological service and police, there is hardly an area in Greece that has not been pillaged by antiquities thieves.

[21] Delegation of German rectors on five-day visit to Greece

Athens, 29/01/2000 (ANA)

The delegation, comprising six rectors and the president of the Conference of German Higher Education Institutes, will hold talks with the Conference of Higher Education Institutes' Rectors of Greece on matters of mutual interest as well as on further cementing the strong traditional relations between Greek and German higher education institutes.

The two sides will also examine the prospects of boosting cooperation at the European level between individual higher education institutes of the two countries, particularly in the fields of post-graduate studies, recognition of studies and on matters concerning cooperation between universities and the economy (transfer of technology).

On Monday, President of the Republic Kostis Stephanopoulos, after which the academic leaders will have a meeting with Education and Religious Affairs Minister Gerassimos Arsenis, will receive the German delegation.

[22] Bomb at rent-a-car company

Athens, 29/01/2000 (ANA)

Police said the powerful explosion, which occurred a few minutes after midnight outside the offices of the Interforce car rental company, caused a crater 25 cm deep and 110 cm wide.

They said a passer-by, 21-year-old Kyriakos Spyrakis, was lightly injured in the blast and taken to an Athens hospital.

The blast also damaged six cars parked outdoors belonging to the company and an adjacent car dealership, extensive damage to the interior of the company and nearby shops, and broke first-floor windows in the building and surrounding homes.

Police are investigating the motives for the attack and clues leading to the culprits.

[23] Negotiator says content of Cyprus peace talks should conform with EU rules

NICOSIA, 29/01/2000 (CNA/ANA)

Maurer stressed that Brussels is negotiating with the Republic of Cyprus and there cannot be two different voices dealing with the EU and said that by the end of the current Portuguese presidency in June all chapters will be under discussion.

On his part, Cyprus chief negotiator George Vassiliou said that Cyprus is doing well but we have to do better and we have the chance to do better but somehow we take it easy.

Speaking at a press conference at the close of his discussions here, Maurer said accession talks are now in their final stages and that the EU presidency intends to open the remaining seven outstanding chapters of negotiation with all the first six candidate countries, already engaged in membership talks with the EU.

He said there was a review of the chapters under discussion (including taxation and cooperatives), adding that he is here to give some more motivation to the political decision-makers to encourage them to move forward.

The Austrian diplomat stressed the need to inform civil society and called on the media, on both sides of the divide in Cyprus, to contribute to the effort to inform people about the EU.

He welcomed the website of the Cyprus-EU negotiating team in Turkish to enable the Turkish Cypriots to get informed about EU matters.

Commenting on the UN-led peace effort, he referred to two parallel processes (EU negotiations and UN peace talks) which cannot merge, noting also that a Cyprus solution is no precondition to the countrys accession.

There is some sort of interference between the two.

Everything negotiated in the political process should be in conformity with the acquis communautaire because if it is not, this would bring into the EU process political problems, he said.

Replying to questions, Maurer said Javier Solana, High Representative for Common and Foreign Policy, discussed Cyprus with UN Secretary-General Kofi Annan to try and ensure good results and that Solana monitors closely developments on the political field, even though he will not be present at the second round of UN talks in Geneva.

He said the Cyprus problem is a European problem and always crops up in discussions among EU member-states on Cyprus.

Asked to comment on moves by the Turkish Cypriot leader to push for direct contact with the EU, Maurer said Brussels decided to start negotiations with the Republic of Cyprus and has always reaffirmed the invitation to the Turkish Cypriots to join the Cypriot negotiating team.

It is not possible for Brussels to have two different voices from the same country, he said, citing his own country as an example where Tyroleans in Austria had to put forward their point of view through the central government.

The Turkish Cypriots have so far declined an invitation from President Glafcos Clerides to appoint their representatives to the EU negotiating team.

One can speak with the EU with one voice, the Turkish Cypriots are most welcome to join the Cyprus delegation to raise their problems, Vassiliou said on this issue, noting that the political solution and the EU negotiations are very much interconnected.

Maurer was faced by the comments of a Turkish Cypriot journalist who pointed out the difficulties Turkish Cypriots face in their attempts to meet Greek Cypriots and be briefed on EU matters,

The EU official acknowledged the reality of the situation but also welcomed bicommunal activities, on and off the island, and expressed optimism that these would increase, noting efforts by Greek Foreign Minister George Papandreou in this direction. He referred in particular to efforts to open an office in Brussels for non-governmental organizations, a project he warmly welcomed.

The outlook is a very good one and hopefully this could be pushed forward so that we can support this very important process, he said.

In his remarks, Vassiliou said the meetings this week were very useful and very productive which included discussions on the liberalization of the foreign exchange and currency, fisheries, interest rates, justice and home affairs, employment and agriculture.

I am pleased to report that we have made progress and I would not be surprised if by the end of the Portuguese presidency we close a substantial number of chapters, he added.

[24] Annan to meet leaders of Cyprus' two communities in Geneva on Monday

NICOSIA, 29/01/2000 (CNA/ANA)

Cyprus government spokesman Michalis Papapetrou announced on Friday the talks, which will take place at the Palais des Nations in Geneva, are not expected to last more than ten days.

According to Papapetrou the talks will start on Monday with a meeting at 0930 (Geneva time) between Cyprus President Glafcos Clerides and Annan. An hour later the Secretary-General will meet Turkish Cypriot leader Rauf Denktash.

De Soto will chair the talks the next day and until the end of the second round. The first round of proximity talks took place between 3-14 December 1999 at UN headquarters in New York.

The talks are substantive, covering the four fundamental aspects of the Cyprus problem, namely the distribution of powers, security, property and territory. They aim at preparing the ground for direct talks that will lead to a comprehensive settlement of the Cyprus problem.

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

[25] T/C leader Talat quoted as favoring federation solution on Cyprus

ISTANBUL, 29/01/2000 (ANA)

A federation is the solution for Cyprus, T/C political party leader Mehmet Ali Talat was quoted as saying by the Turkish mass daily Cumhurriyet recently. The confederation (solution) is a proposal made with the purpose of never solving the Cyprus issue, and for this reason it doesnt have any chances of acceptance.

Talat, a vice-president in a regime headed by Turkish Cypriot leader Rauf Denktash in the areas occupied by the Turkish military since its invasion of Cyprus in 1974, also noted that a federation means a bizonal structure that is based on political equality, whereby neither side has the right of sovereignty over the other.

The Republic of Cyprus has long stressed that it will only discuss a federation solution to the Cyprus problem based on United Nations resolutions. Conversely, Denktash and Turkish leader-ship have called for negotiations over a confederation framework, something Nicosia deems as unacceptable.

The Cyprus issue cannot be solved with Mr. Rauf Denktash or with (Cyprus President) Mr. Glafcos CleridesMessrs. Denktash and Clerides are leaders of a previous, Cold War period, the Republican Turkish Party (CTA) leader added.

In reference to Turkeys recent designation as an EU candidate state, the T/C leader said: We must take into account the new conditions that have been created for solving the Cyprus problemThe Greek Cypriots have demands that we must take into account.

Finally, in referring to Ankaras role on the island republic, Talat said the Turkish Cypriots place great importance on their security, and for this reason, the Turkish guarantee (military presence) must continue.

A Turkish Cypriot pseudo-state was illegally declared on the divided island republic in 1983. Only Turkey recognizes the entity.

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