Athens News Agency: Daily News Bulletin in English, 00-03-23

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

CONTENTS

[01] Simitis says EU must become a genuine political entity

[02] Pollster gives PASOK slim lead

[03] Premier criticizes "negative" advertising by main opposition

[04] Karamanlis sounds warning bell over National Health System

[05] Communist party leader calls on Greek people to cut the wings of neo-liberalism

[06] Coalition leader holds talks with Bank of Greece governor

[07] Greek Army Medical Corps in Kosovo to assess pollution, defense minister says

[08] Israeli ambassador says Israeli government awaiting Greek president's visit with particular interest

[09] Athens sternly condemns assassination attempt against Tehran publisher

[10] Slovenia's negotiator for EU accession to visit

[11] Greek stocks continue moving lower

[12] More than 680 billion dr. in farm subsidies allocated in past five months

[13] Greek, Turkish chambers sign cooperation protocol

[14] Greek, US cooperation group meets

[15] Gov't slashes indicative retail petrol prices

[16] Olympic Airways jet lands in Belgrade, ending flight embargo

[17] Centennial commemoration for Knossos excavation scheduled

[18] Veritable 'treasure' of rare Mycenean artifacts confiscated in Corinth prefecture

[19] First Turkish Airlines aircraft lands in Thessaloniki

[20] Anomeritis: Water conservation necessary for sustainable growth

[21] Athens mayor on visit to Canada and US

[22] Top official on EU enlargement begins visit to Cyprus on Thursday

[23] Vassiliou, Hannay agree Cyprus proximity talks should be substantive

[01] Simitis says EU must become a genuine political entity

LISBON, 23/03/2000 (ANA - V. Mourtis)

Simitis was speaking at a meeting of European Socialist Party (ESP) leaders in Lisbon in the evening, a day before the EU's special summit, on the issue of "The future of social democracy, the development of the EU and its global responsibility." He said that the ESP's future in Europe is unbreakably linked to the EU's future.

Simitis further said that the socialists' foremost aim in Europe should be the implementation of reforms leading to full employment, the eradication of poverty and social exclusion in Europe, the return to full employment and the effort to avert the appearance of new social divisions.

He said that in this context the strengthening of the EU's democratic character should be pursued, the creation of a new dynamic and competitive "economy of knowledge", the strengthening of the base of economic and social cohesion and the shaping of a new civilization of solidarity at European and international level.

Simitis also referred to the need to enlarge the EU with the eastern European and Mediterranean countries and to "firmly lock all the countries of southeastern Europe in its system."

He noted that the socialists should ensure that globalization can coexist with sustainable development and a decrease in the gap between the rich and poor.

Simitis said that intensifying globalization is curbing national borders, and national political institutions and governments are becoming all the less capable of effectively handling economic, social and political problems by themselves as they have acquired an international character.

He concluded that "there are relatively few things which we can do ourselves in our national systems with regard to macroeconomic management and trade." Simitis also referred to a democratic deficit in the global economic system, stressing what he said was the growing need "for a global democratic rule and a democratic regulation of the global economy."

[02] Pollster gives PASOK slim lead

Athens, 23/03/2000 (ANA)

PASOK is preferred by 34.5 percent of respondents, ND by 34.2 percent, while 4.9 percent state an intention to vote for the Communist Party, four percent for the Coalition of the Left, and 3.6 percent for the Democratic Social Movement. A further 18.8 percent said they preferred other options or were still undecided.

Prime Minister Costas Simitis led ND leader Costas Karamanlis in terms of popularity with 43.6 percent against 38.2 percent and was considered better suited for the post by 33.5 percent, compared to 23.3 percent. Finally, according to the same poll, 50.5 percent of respondents believe PASOK will win the election, compared to 30.8 percent for the main opposition party.

[03] Premier criticizes "negative" advertising by main opposition

LISBON, 23/03/2000 (ANA - B. Mourtis)

"Let them reach new highs of negative propaganda," Simitis said, adding that ruling PASOK would not follow the example of the main opposition party.

He said that such practices do not contribute to the quality of the election campaign, while he noted that PASOK would win the election in April, as it did in 1996.

Finally, Simitis warned against election talk regarding the Athens Stock Exchange, stressing that conditions in the stock market would not influence voter preference, as was indicated by opinion polls.

[04] Karamanlis sounds warning bell over National Health System

Athens, 23/03/2000 (ANA)

Karamanlis visited the state-run Laiko Hospital in Athens, where he spoke with the medical and nursing staff about their work-related problems as well as with patients on the current state of Greece's public health care.

The main opposition leader told reporters afterwards that ESY was on the verge of bankruptcy, blaming what he called mismanagement and wasteful spending of more than 30 percent, as well as serious deficiencies in state-of-the-art equipment and staff.

Greece, he said, had "the most expensive, and the worst" health system in Europe, "which has not collapsed thanks to the superhuman efforts of its personnel".

Karamanlis said Greece urgently needed a different health system that respected the citizens, provided upgraded services and remunerated personnel accordingly, from within a framework of new labor relations with bonuses and incentives.

He pledged that ND, if elected to government, would tackle the problem of wasteful spending through the introduction of the institution of manager.

Karamanlis also pledged that in order to solve the problem of over-congested hospitals and outpatient clinics, his government would set up urban health centers that would provide health services to the citizens, who would no longer be obliged to travel large distances for treatment, thus generating fewer costs for the state.

Karamanlis certain of victory in April elections: Karamanlis on Wednesday expressed his certainty that his party would win the general elections on April 9.

In an interview to Athens' "Mega" television channel, Karamanlis said he believed developments in the Athens Stock Exchange (ASE) would not influence the outcome of the election campaign.

He accused the government of what he called interventions in "the sensitive institution and the mechanism of the market economy", adding that the upturn of the stock market is a positive development.

Karamanlis said, however, that the upturn did not reflect the dynamism of the economy, rather it reflected the dynamism of specific business activities.

Finally, he insisted that should ND win the elections the stock market will have positive prospects, as the country will enter a phase of speedier development, while the necessary structural change will take place legally fortifying the ASE.

[05] Communist party leader calls on Greek people to cut the wings of neo-liberalism

Athens, 23/03/2000 (ANA)

Papariga, who was addressing a party rally in downtown Larissa, central Greece, in the evening, said that Greece has turned into "the headquarters of intelligence services and agents, networks and mechanisms that intervene directly in political and social life."

She said that whichever government is elected will implement "the blackest page of the decade: the creation of a Greek mercenary army having two missions: participation in wars against peoples outside our borders, and its use as a bogey man against the popular movement in our country."

Papariga said that the problem of problems "is that the Greek government has already proceeded with changing the mission of the Greek armed forces."

[06] Coalition leader holds talks with Bank of Greece governor

Athens, 23/03/2000 (ANA)

Constantopoulos said that if PASOK's leadership wished to avoid the possibility of retrogression on the country's political scene towards more conservative directions all it had to do was to amend the election law.

On the question of economic policy, Constanto poulos said there could be no processes of economic stability and development, fiscal restructuring and fair distribution of burdens without social cohesion and social justice.

[07] Greek Army Medical Corps in Kosovo to assess pollution, defense minister says

Athens, 23/03/2000 (ANA)

Responding to questions on reports that air pollution forced Belgian soldiers to wear masks, the minister said that a cement factory on the borders of Kosovo with the Former Yugoslav Republic of Macedonia (FYROM) created a problem.

He added that Greek and American contingents are in the same regions and "I was briefed that a unit of the medical corps has arrived in that area to assess the real extent of the problem".

[08] Israeli ambassador says Israeli government awaiting Greek president's visit with particular interest

Athens, 23/03/2000 (ANA)

Curiel, referring to defense cooperation between Greece and Israel, said that his country looks forward to its participation in the counter-measures system for F-16 warplanes. He added that if this takes place a new period would open in Greek-Israeli relations.

Commenting on developments on the Middle East issue, Curiel said it is very possible that a draft agreement will be reached with the Palestinians by May for the final status in the region. He said the interim stage started in Oslo in 1992 has now been completed with the withdrawal of Israeli forces and negotiations remain for the Palestinian authority's final status.

Israeli sources comment on Clinton-Assad meeting, cite interest in Greek F-16 contract: Israeli diplomatic sources in Athens on Wednesday emphasized that the Barak government neither expects nor does it preclude a "major surprise" in the Mideast peace process following the upcoming Clinton-Assad meeting in Geneva.

The Golan Heights, Lebanon and normalization of Israeli-Syrian relations are expected to dominate talks between the outgoing US president and aging Syrian leader Hafez al-Assad.

The same sources noted that Israel's decision to withdraw its forces from turbulent southern Lebanon, with a July timetable announced, serves mainly to relieve "the Syrians of a lever of pressure" against Israel in the international and Arab public opinion.

"The strategic question is whether Syria is ready to make peace with Israel," the same sources said, mentioning that security concerns and a full normalization of relations, "including open borders and an exchange of embassies", is necessary before the territorial issue of the Golan Heights can be resolved.

Damascus has long demanded that Israel return the strategically important Golan Heights, captured in the 1967 "Six-Day War", before other substantive differences are settled. Conversely, Israel believes a resolution of other issues, namely, security and recognition must come first.

In terms of Greek-Israeli matters and in reference to a question over the historic visit by Pope John Paul II to the Holy Land, Israeli sources emphasized that the Barak government believes in fully maintaining the status quo governing the ownership and management of several revered Christian sites and monuments in the West Bank -- a sensitive issue for several Orthodox churches, particularly the Ecumenical Patriarchate of Constantinople, the Jerusalem Patriarchate and the Autocephalus Orthodox Church of Greece. "We also believe in maintaining the cultural and architectural heritage status quo as well," one highly placed diplomatic source added.

Finally, sources noted that Israeli defense concerns are in the bidding for a lucrative contract to install an electronic counter-measures system in the new batch of US-made F-16s ordered by the Greek government this month to bolster the Hellenic Air Force's current fleet.

"We offer the best (system) we have, the same that is on our F-16s...we also fully respect the Greek decision-making process in this view," one source said.

[09] Athens sternly condemns assassination attempt against Tehran publisher

Athens, 23/03/2000 (ANA)

Hajjarian, an ally of Iranian President Mohammad Khatami, was severely injured in a March 12 shooting by two assassins who subsequently fled on a high-powered motorcycle.

A Greek foreign minister spokesman reiterated what he called Athens' standing position of "vigorously condemning all acts, regardless, of acts of violence and terrorism from wherever they hail."

Spokesman Panayiotis Beglitis also expressed the Greek government's sincere sympathy for the victims of "this hideous acts."

Iranian officials on Monday said six people had been arrested in connection with the attack, including a man suspected of actually shooting Hajjarian as well as an accomplice on the motorcycle.

[10] Slovenia's negotiator for EU accession to visit

Athens, 23/03/2000 (ANA)

Dr. Potocnik, heading a delegation, arrives in Athens on Tuesday for a two-day visit and talks with alternate foreign minister Christos Rokofyllos, foreign ministry secretary general for European affairs Prof. Stelios Perrakis and general director for European affairs Ambassador Dimis Vassilakis, and national economy ministry secretary general for international cooperation Stephanos Avgouleas.

The Slovenian delegation, also comprising deputy director of the Government Office for European affairs Andrej Engelman and senior staff member Maja Kezunovic, will discuss Slovenia's course to EU membership.

[11] Greek stocks continue moving lower

Athens, 23/03/2000 (ANA)

The general index ended 0.68 percent lower at 4,723.15 points, with turnover slightly improved at 210 billion drachmas reflecting a bloc transfer of a 20 percent stake in Delta Holdings by Danone to the French company Foremaster.

Smaller capitalization stocks were particularly hit to end sharply lower.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.56 percent to 2,649.32 points, and the FTSE/ASE 40 index dropped 2.07 percent to 709.43 points.

Sector indices ended as follows: Banks: 9,015.62 -0.59% Leasing: 1,059.67 -0.19% Insurance: 3,093.53 -0.29% Investment: 2,247.96 -1.52% Construction: 2,406.71 -2.48% Industrials: 2,810.38 -0.67% Miscellaneous: 5,178.68 -1.27% Holding: 4,966.85 -0.91%

The parallel market index for smaller capitalization stocks ended at 907.97 points, off 2.72 percent.

Broadly, decliners led advancers by 279 to 50 with another seven issues unchanged.

Derivatives prices end mixed on Wednesday: Derivatives prices ended mixed on the Athens Derivatives Exchange on Wednesday despite declines of 0.56 percent and 2.07 percent, respectively, in the two benchmark indices FTSE/ASE 20 and FTSE/ASE 40.

A total of 1,161 futures contracts were traded on the FTSE/ASE 20 index, with a turnover of 6.2 billion drachmas. All contracts ended with gains. The April expiring contract ended at 2,671 points, the May contract at 2,686.50, the June at 2,705.25 and the September contract at 2,750 points.

A total of 908 contracts were traded on the FTSE/ASE 40 index. They all ended with losses with a turnover of 2.6 billion drachmas. The April expiring contract ended at 726.75 points, the May contract at 740 and the June contract at 741 points.

Bonds slip in sell-oriented trade: Bond prices in the domestic secondary market edged down in sell-oriented trade on Wednesday and turnover fell further, traders said.

The Greek benchmark 10-year bond showed a yield of 6.17 percent from 6.13 percent a day earlier and 6.15 percent on Monday.

The paper's yield spread over German bunds was around 93 basis points from between 91 and 92 basis points in the previous session and 90 basis points at the start of the week.

Turnover through the central bank's electronic system totalled 28 billion drachmas from 40 billion drachmas a day earlier and 22 billion drachmas on Monday.

Sell orders accounted for almost all of Wednesday's turnover.

In the previous session, players had mostly shown interest in older five-year bonds in the wake of an auction the same day of paper with the same term that drew institutional investors from abroad. Trade was buy-oriented.

Drachma drops vs. euro, slumps vs. dollar: The drachma on Wednesday fell against the euro, shrugging off an intervention by the central bank, and also lost versus the US dollar in the domestic foreign exchange market, dealers said.

The Bank of Greece stepped into the market, selling around 150 million euros, but the drachma still stayed lower against the European single currency, the dealers said.

At the central bank's daily fixing, the euro was set at 333.980 drachmas from 333.850 drachmas a day earlier and 333.860 drachmas on Monday.

Also at the fixing, the US dollar was set at 347.940 to the drachma from 343.680 drachmas in the previous session and 343.910 drachmas at the start of the week.

[12] More than 680 billion dr. in farm subsidies allocated in past five months

Athens, 23/03/2000 (ANA)

Anomeritis said that the farm subsidies, allocated between October 16, 1999 and March 17, 2000, amounted to 683.53 billion dr.

In a break-down by product, subsidies of 192.8 billion dr. were allocated to cotton producers, 82.0 billion dr. to tobacco growers, 158.1 billion dr. for olive oil, 183.9 billion dr. under the integrated management and control system (OSDE) for subsidies for cereals, fruits and vegetables, and exports, 12.0 billion dr. for withdrawals, 48.6 billion dr. for other products, and 5.7 billion dr. for the islands of the Aegean.

[13] Greek, Turkish chambers sign cooperation protocol

Athens, 23/03/2000 (ANA)

The signing of the protocol came during a visit to Athens by a large delegation of Turkish business representatives.

Welcoming the delegation, senior EBEA official Constantine Mihalos said that the visit would help to consolidate a framework of cooperation between the two countries that was recently established.

"The recognition of Turkey as a candidate for entry into the European Union is a message of hope for the business communities of both countries," Mihalos said.

Kemal Colakoglu, president of the assembly of regional chambers of Izmir, outlined the Turkish economy and underlined the opportunities for investment.

Attil Akkan, the president of Izmir's chamber, stressed the desire of the Turkish business community for cooperation with Greece in the wake of improving ties.

[14] Greek, US cooperation group meets

Athens, 23/03/2000 (ANA)

The embassy said in a statement that bilateral trade and investment trends were expanding but remained below the levels believed possible in the future as both countries' economies continued to grow.

The meeting was chaired by US Ambassador Nicholas Burns and the secretary general of the national economy ministry.

The delegations decided to continue efforts to attract substantially greater commerce between the two sides, the statement said.

The commission identified major projects in Greece that were of great interest to US businesses, especially opportunities in the 2004 Summer Olympics to be hosted by Athens, and in the energy and tourism sectors, it added.

The commission also decided to initiate bilateral "open skies" negotiations before summer to liberalize commercial aviation cooperation.

In addition, it discussed ways of facilitating new-to-market entry of US companies into Greece, and reviewed the status of issues concerning intellectual property rights, and how an environment free of IPR piracy would stimulate trade and investment, the statement said.

Finally, the commission discussed the importance of the two countries' constructive role in supporting political stability and sustaining the economic well-being of the Balkan and Black Sea areas, along with joint involvement in the Southeast European Cooperation Initiative (SECI).

The startup of the Initiative for Technology Cooperation in the Balkans would also assist the regional process, the statement said.

The next meeting of the commission will be held in Washington DC.

[15] Gov't slashes indicative retail petrol prices

Athens, 23/03/2000 (ANA)

Specifically, super gasoline prices fell by 4.9 drachmas per litre; unleaded by five drachmas and diesel by 5.6 drachmas per litre. Additionally, suggested retail heating oil prices were slashed by 9.2 drachmas per litre.

[16] Olympic Airways jet lands in Belgrade, ending flight embargo

BELGRADE, 23/03/2000 (ANA-M. Mouratidis)

The airliner landed in Belgrade at 1:45 p.m. local time, a year minus a day later, since the last OA flight. NATO started bombings against the Yugoslav capital began later on that same day.

OA President George Zygoyiannis and Managing Director Rod Lynch were both on board the historic flight leading a delegation of officials, travel agents and journalists. The OA officials were greeted by officials of JAT, Yugoslavia's national carrier, and Greek embassy personnel.

OA will fly to Belgrade three times a week, every Tuesday, Thursday and Sunday, Zygoyiannis said.

A Swissair jet landed in Belgrade five minutes earlier, marking the first international flight landing in Belgrade since the lifting of the embargo.

[17] Centennial commemoration for Knossos excavation scheduled

Athens, 23/03/2000 (ANA)

The municipal leadership of Irakleio, the Mediterranean island's largest city, will lay a wreath in the morning at a bronze bust of Sir Arthur Evans, the noted British archaeologist who excavated the site in the latter part of the 19th century. Sir Arthur's bust, unveiled in 1935 in the presence of the renowned archaeologist, is located at the Knossos palace's western courtyard.

In the afternoon, the pioneers of archaeological research into the Crete-centered Minoan civilization, Sir Arthur and Greek scholar Minoas Kalokairinos, will be the focus of a photo exhibition at the Irakleio Archaeological Museum.

The main event commemorating the centennial of Knossos' excavation is scheduled in November, as an international symposium on the issue of "Knossos: Palace, Polis and State" will convene.

[18] Veritable 'treasure' of rare Mycenean artifacts confiscated in Corinth prefecture

Athens, 23/03/2000 (ANA)

According to authorities, the confiscated artifacts were illegally excavated from the Athikio archaeological site in Corinth prefecture and are believed to have been uncovered from ancient burial sites.

Police added that the suspect, Dimitris Haidas, was engaged in illegal excavations throughout the prefecture, at some points even using explosives -- a batch of which was also confiscated.

The artifacts, estimated as rare and invaluable after an initial inspection by archaeologists, are dated from between the 16th and 12th century BC.

Besides Haidas, a 50-year-old woman living in his residence was arrested as an accomplice and on charges related to a fortune-telling scam.

[19] First Turkish Airlines aircraft lands in Thessaloniki

Athens, 23/03/2000 (ANA)

The aircraft was boarded by 70 Turkish journalists, senior airline officials (including general director Yusuf Bolayrli) and Turkish Minister without Portfolio Yuxel Yalova, who were welcomed by the Turkish Ambassador to Athens Ali Tuygan and the Turkish Consul to Thessaloniki Ceckin Cetineli.

On arrival in Thessaloniki, the Turkish officials expressed satisfaction over the new climate prevailing in relations between the two peoples, while the Turkish minister referred to the friendship between the two countries' foreign ministers Ismail Cem and George Papandreou and underlined their great contribution to the development of friendship between the two peoples.

He also said that over the past few days about 15,000 of his compatriots celebrated their religious holiday in Greece. He added that 10,000 out of the 15,000 visited Thessaloniki and Halkidiki, while about 5,000 visited the home of Kemal Ataturk, the founder of the modern Turkish state, in Thessaloniki, equaling the number who had visited it all of last year.

[20] Anomeritis: Water conservation necessary for sustainable growth

Athens, 23/03/2000 (ANA)

"We believe that the fact that agriculture comprises the biggest consumer of water in our country, we have the responsibility of ensuring this precious resource for the next generations. Consequently, we consider that the protection and sustainable use of water resources was a major issue for the Greek economy and society," Anomeritis said.

In that context, the ministry had "incorporated an environmental dimension" in all its fields of activity, placing particular emphasis on protection of water resources, and had contributed to the formulation of a national strategy to ensure the rational use of those resources, he added.

The ministry had further drafted a 7-year national Program of Infrastructures for the Conservation of Water Resources for the period 2000-2006 aimed at achieving the above targets. The program comprised more than 350 projects, for which financing of one trillion dr. had already been secured from national and EU funds and through contemporary financing mechanisms.

Anomeritis said the above manifested the agriculture ministry's "systematic effort for the rational management of the country's water resources, which is a necessary condition for Greece's sustainable development".

[21] Athens mayor on visit to Canada and US

Athens, 23/03/2000 (ANA)

Avramopoulos will attend a special ceremony at the Montreal Town Hall for the unveiling of the statue of Athena, which is a donation to Greeks living in Canada and to the city of Montreal from the city of Athens.

On Saturday, Avramopoulos will be visiting Toronto where he will attend a parade on Sunday in the framework of festive events marking the anniversary of the March 25, 1821 Greek Revolution against Ottoman rule.

Avramopoulos will arrive in Washington on Monday to sign a protocol of friendship and cooperation between the cities of Athens and Washington with the city's mayor.

[22] Top official on EU enlargement begins visit to Cyprus on Thursday

NICOSIA, 23/03/2000 (CNA/ANA)

According to the Commission, Verheugen, who will be visiting Cyprus from Thursday to Saturday for the first time since his appointment, is also expected to reiterate that "accession negotiations and progress towards a political solution will continue to reinforce each other".

It also notes that "the Helsinki European Council concluded that a political settlement will facilitate EU accession for Cyprus but that the Council's decision on accession will be made without a settlement being a pre-condition".

The Commission points out that during his visit in Cyprus, Verheugen will "exchange views with both sides on the enlargement process, taking account of the Cypriot situation".

It added that "he will explain the particular potential benefits of

EU membership and encourage a two-way flow of information on EU matters, including the establishment of people-to-people projects involving representatives from both communities".

The Commission notes that "a new financial regulation adopted by the Council of Ministers on 13 March 2000 makes financial support for such projects possible".

Regarding Verheugen's visit in Cyprus, the statement issued by the Commission notes that he will discuss with "the Cypriot authorities the progress made in the negotiations to date including further efforts to be made to achieve timely transposition and implementation of the 'acquis'".

It adds that Verheugen "will recall that each chapter can be reviewed when the Turkish Cypriot community participates in the negotiations", which is recorded in the common negotiation positions with Cyprus.

It is also stated the "the Commissioner will be holding talks with

President Glafcos Clerides, government ministers, leading parliamentary figures, business representatives, officials and representatives from the civil society".

During his two-day visit, Commissioner Verheugen will also meet Rauf Denktash, representatives of different political parties and other representatives of the Turkish Cypriot community, the Commission's statement concludes.

On the first day of his visit to Cyprus, Verheugen will meet Foreign Minister Ioannis Kasoulides and hold official talks at the Ministry. Later on he will meet Deputy President of the House of Representatives Nicos Anastassiades and the leaders of the political parties represented in the House.

In the evening, he will give a presentation on "Enlargement and the vision of Europe in the new century", which is organized by the European Institute of Cyprus. The foreign minister will host an official dinner in honor of Verheugen on Thursday.

On Friday, the EU Commissioner will meet House President Spyros Kyprianou and later President of the Republic Glafcos Clerides at the Presidential Palace will receive him. Later on, Verheugen will meet Chief negotiator for Cyprus' accession in the EU George Vassiliou. The Commissioner will then meet with the Chairman and members of the Committee of Foreign and European Affairs of the House of Representatives. At noon Verheugen will see Acting Special Representative of the UN Secretary General in Cyprus, James Holger, followed by a tour of the buffer zone in Nicosia.

In the afternoon, Verheugen will meet leaders of Turkish Cypriot political parties in the Turkish-occupied areas of the Republic and attend a round table discussion on "The enlargement and the vision of EU in the new century".

Verheugen will then give a press conference for the Greek and Turkish Cypriot mass media at the Ledra Palace hotel in the UN-controlled buffer zone.

Later in the afternoon, he will debrief Ambassadors to Cyprus of member states of the EU and attend a reception hosted by Head of the Delegation of the European Commission in Cyprus, Ambassador Donato Chiarini.

In the evening, Verheugen will meet the leader of the Turkish Cypriot community Rauf Denktash in the occupied part of Nicosia. He leaves Saturday morning.

[23] Vassiliou, Hannay agree Cyprus proximity talks should be substantive

NICOSIA, 23/03/2000(CNA/ANA)

Speaking to CNA from London, after his meeting with Britain's envoy on the Cyprus problem Sir David Hannay, Vassiliou said Hannay agreed that "there is a need for the proximity talks to turn into substantive negotiations" pointing out that "time is running out". He said this is the message Hannay will convey during his visit to Ankara next week.

The UN has conducted two rounds of proximity talks (in December 1999 and February 2000) with the Greek and Turkish Cypriot sides. A third round of talks is due to begin in May in New York.

Vassiliou said they also agreed on the position of the EU that no separate accession negotiations with the Turkish Cypriots will take place.

He told CNA that Britain does not support Turkish Cypriot leader Rauf Denktash's demand for a confederate solution in Cyprus.

Invited to comment on a statement issued by the European Commission earlier on Wednesday which stated that "each chapter can be reviewed when the Turkish Cypriot community participates in the negotiations", Vassiliou said chapters already closed provisionally could open to discuss the practical difficulties which may emerge in the harmonization effort.

However, he noted that the possible review of chapters "is purely academic" at this stage since the Turkish Cypriots have so far rejected an invitation by President Glafcos Clerides to nominate their representatives to the Cypriot team negotiating the Republic's accession.

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