Athens News Agency: Daily News Bulletin in English, 00-07-27

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

CONTENTS

[01] European Commission approves new Community Support Framework for Greece

[02] Only the legal issue of the Aegean continental shelf separates Greece and Turkey, government spokesman says

[03] Education minister reiterates call for dialogue over Church property issue

[04] Karamanlis criticizes gov't over crime rate, border patrol corps

[05] V. Papandreou briefed on British civil service's operation

[06] Skandalidis announces political initiatives in autumn

[07] Tsatsos meets Skandalidis, Constantopoulos on Intergovernmental Conference

[08] Premier Simitis sends condolences to Jospin over Concorde accident

[09] Russia wants to upgrade Thessaloniki consulate

[10] NATO European commander in Athens

[11] Gov't seeks to boost employment with new policies

[12] Development Minister unveils terms for participation in EU funding program

[13] Bourse to adopt draft EU rules on hostile takeovers

[14] Fuel prices to drop for coming week

[15] Greece and Cyprus to promote cooperation in telecommunications

[16] Alpha Bank reports lower consolidated profits in 1st half

[17] Institutional Investors launches information campaign on mutual funds market

[18] Greek stocks continue moving lower

[19] Greece to train Balkan countries in agriculture

[20] Five Swiss hostages, captain freed, hostage taker dead

[21] Greece calls for vaccination zone against foot-and-mouth disease in western Turkey

[22] Another heat wave advisory issued

[23] Vassiliou meets with chief UN negotiator for Cyprus

[24] Britain's Sir David Hannay assures that any Cyprus solution will be within UN frameworks

[01] European Commission approves new Community Support Framework for Greece

Athens, 27/07/2000 (ANA)

Half of this sum will be covered by community funds (22.71 billion euros) while the remaining spending will be covered equally by the state and private sectors of Greece (11.20 bln and 10.38 bln, respectively).

A Commission announcement in Brussels said the Third Community Support Framework envisaged the following big interventions:

a) improving the skills of human resources through training and education to promote a "knowledge society",

b) completing infrastructure projects in transport,

c) improving competitiveness in industry and services, mainly in small- and medium-sized enterprises, the backbone of production in Greece,

d) improving competitiveness and quality in agriculture and fisheries,

e) improving the quality of living of Greek citizens (environment, natural resources, waste process, culture and health),

f) promoting an information society for the benefit of the citizen, in education, public administration, economy and employment, and

g) promoting a balanced regional growth and national cohesion.

Presenting the Commission's decision, Michel Barnier, EU Commissioner for regional policy, said: "The Third Community Support Framework is of essential significance for the continuation of social and economic growth in Greece. It consolidates and deepens a remarkable development, achieved through an unprecedented effort made by the country to participate in Economic and Monetary Union, with the help of the previous two Community Support Frameworks (1989-1999). The Third Community Support Framework will accompany the significant structural reforms implemented by Greece. It will help the country to achieve real convergence and cohesion with emphasis on improving economic competitiveness".

Papantoniou welcomes EU funding approval: In Athens, National Economy and Finance Minister Yiannos Papantoniou welcomed the EU Commission's approval of Greece's third CSF proposal.

"This crowns a systematic, three-year effort by the Greek government to secure the timely acquisition of the funds, allowing un-interrupted continuation of the country's development," Papantoniou said.

The government had aimed for a balanced distribution of funding nationwide and an acceleration of rates of real convergence with the European Union in order to attain the EU average in living standards at the end of the decade, the minister added.

[02] Only the legal issue of the Aegean continental shelf separates Greece and Turkey, government spokesman says

Athens, 27/07/2000 (ANA)

The spokesman said that Greek-Turkish relations were "developing positively", but added that this was not enough "to proceed in the smoothing of Greek-Turkish relations."

Reppas said that the thorn in the smoothing of bilateral relations was Turkey's stance on the Cyprus issue, which he described as totally negative, as well as Turkey's claims on the Aegean, which he said "cannot constitute a subject for any discussion."

[03] Education minister reiterates call for dialogue over Church property issue

Athens, 27/07/2000 (ANA)

Education and Religious Affairs Minister Petros Efthymiou, speaking to reporters after a meeting with Prime Minister Costas Simitis, added that such dialogue is necessary so that "no friction is created" in Church-state relations. He first noted that the divisive ID issue - which appreciably soured Church-state relations over the past two months - has ended for the government.

As far as talks with the premier were concerned, issued focused on education reform and initiatives the ministry has commenced since Efthymiou was appointed minister.

A government decision last month to proceed with new police-issued identification cards without the category of religious affiliation, among others, has sparked vehement opposition by most of the Autocephalus Orthodox Church of Greece's hierarchy, led by outspoken Archbishop Christodoulos.

[04] Karamanlis criticizes gov't over crime rate, border patrol corps

Athens, 27/07/2000 (ANA)

The ND president spoke during the tabling of a bill in Parliament dealing with security forces.

He called for, among others, the establishment of a witness protection program in cases involving organized crime; changes in the current prison furlough system for narcotics-related offenders as well as the abolition of the centralized police precinct model in favor of neighborhood bureaus.

In reply, Public Order Minister Mihalis Chrysohoidis challenged the main opposition party to produce evidence proving the latter's claims of partisan hiring for the recently established border patrol corps.

In other comments, Karamanlis said the new border patrol units lacked proper training and were too few for the major task they are assigned.

He sternly cautioned that New Democracy does not view economic migrants in a racist manner, it does, however, believe that criminal elements exist within such communities and that the government is unable to deal with this problem.

In response, Chrysohoidis stated that the crime rate has dropped by 26 percent, whereas the said addresses by several ND deputies attempting to link economic migrants with crime and paint Greece as a European hub for illegal activities.

Finally, he said several new neighborhood precincts would begin operation in the greater Athens area as of Nov. 1 in areas where it was judged a heightened police presence was necessary.

A wave of mass migration from neighboring Balkan countries and Eastern Europe over the past decade towards Greece has coincided with a distinct increase in the crime rate around the country, especially in terms of violent crimes, drug trafficking and thefts. While statistics show that a slight majority of all apprehended perpetrators continue to be Greek citizens, those figures only involve solved crimes, whereas a large bulk of police cases remain unsolved.

In a related development, the government spokesman referred to better techniques and methods for combatting crime by law enforcement agencies over the past 10 years since such instances appeared en masse in Greece.

During his regular daily press briefing, Dimitris Reppas also cited what he termed criminal rings run by Greek outlaws that have recruited foreigners.

[05] V. Papandreou briefed on British civil service's operation

Athens, 27/07/2000 (ANA)

Talks focused on the British civil service's operation as well as methods of transferring know-how to the Greek public sector, especially the computer linkup of separate services, one-stop offices and efficiency bonuses for civil servants.

[06] Skandalidis announces political initiatives in autumn

Athens, 27/07/2000 (ANA)

Speaking at a press briefing, he said PASOK's political planning, to be launched after August 20, addressed three main issues: Constitutional revision and the debate on institutional provisions, economic policy and the budget for 2001, and a big debate on youth policy.

"Contrary to PASOK, which undertakes initiatives and launches debates for change in society with a view to solving the country's problems, opposition parties are going through crises of identity and orientation," he said.

Referring to State-Church relations, which were recently soured over the government's decision to abolish the listing of citizens' religious persuasion on identity cards, Skandalidis said it was time for a substantial and fruitful dialogue.

[07] Tsatsos meets Skandalidis, Constantopoulos on Intergovernmental Conference

Athens, 27/07/2000 (ANA)

A statement by the PASOK Euro parliamentary group said that Tsatsos told his interlocutors that the development of the European Union towards the adoption of more decisions on the majority principle, as well as the acceptance of enhanced cooperation without the right of veto, depended on three inviolable conditions, namely, the consent of the European Parliament, that enhanced cooperation should be open to all, and that the member-states that would move towards enhanced cooperation would act strictly within the areas of responsibility of the European Union and the institutional procedures envisaged by the Treaties.

[08] Premier Simitis sends condolences to Jospin over Concorde accident

Athens, 27/07/2000 (ANA)

"Please accept my sincere condolences for the tragic Concorde accident in Paris. Please convey my condolences to the families of the victims," Simitis said.

[09] Russia wants to upgrade Thessaloniki consulate

Athens, 27/07/2000 (ANA)

Boikov informed Macedonia and Thrace Minister George Paschalidis during a meeting they had on Wednesday.

The Russian consul said his country recognizes the important role Thessaloniki, and northern Greece in general, play in southeastern Europe and for this reason it plans to upgrade its consulate, established two years ago.

US Ambassador to Athens Nicholas Burns had also announced that his country planned to upgrade the US consulate in Thessaloniki.

[10] NATO European commander in Athens

Athens, 27/07/2000 (ANA)

Ralston visited the National Defense ministry, where he held separate talks with Chief of the National Defense General Staff Gen. Manoussos Paragioudakis, the chiefs of staff of the army, navy and air force, and with deputy defense minister Dimitris Apostolakis.

The NATO official was also received by President of the Republic Costis Stephanopoulos before departing for Brussels shortly after noon.

[11] Gov't seeks to boost employment with new policies

Athens, 27/07/2000 (ANA)

The crucial question is if Greece will be able to reduce unemployment in the next four years, he noted.

Speaking to reporters after a meeting with Labor and Social Security Minister Tassos Yiannitsis, Development Minister Nikos Christodoulakis and other officials, Papantoniou acknowledged that unemployment was at very high levels in Greece compared with the other EU member-states and in relation to the country's growth rates. "We should not rely on this fact," Papantoniou said while expressing his belief that the government would deal successfully with this issue as it did with the economic course towards EMU participation.

The meeting agreed the procedure to be followed, in coordination with other government ministries, in a social dialogue sponsored by the government and aimed to agree in the necessary changes in employment and unemployment policies.

The dialogue between ministries, employees and employers will begin August 24.

The agenda of the talks include employers' and workers' contributions to the social security system, distribution of funds from a Third Community Support Framework, incomes and anti-inflationary policy, business-supportive policies, special measures for highly-unemployed regions, and measures to combat un-employment.

Talks would also include social exclusion, inequality and poverty.

[12] Development Minister unveils terms for participation in EU funding program

Athens, 27/07/2000 (ANA)

Development Minister, Nikos Christodoulakis, presenting the government's competitiveness operational program, worth 2.2 trillion drachmas, on Wednesday, said the three conditions would be noted on project contracts and that all businesses participating in the program would have to adhere to them without deviation in order to continue receiving EU funds.

"Our aim is to boost employment, strengthen competitiveness and promoting technological skills," Christodoulakis said.

The ministry estimates that by the end of the program a total of 100,000 new jobs and 15,000 new businesses could be created, along with the support of 35,000 existing enterprises.

[13] Bourse to adopt draft EU rules on hostile takeovers

Athens, 27/07/2000 (ANA)

"The ruling on hostile takeovers is a major step in modernizing the Greek capital market, and the changes are harmonized with a draft EU directive," Thomadakis told a news conference.

Underlying the reforms are greater protection for minority shareholders of the company under attack and a requirement for full public disclosure of the terms of the proposed acquisition.

[14] Fuel prices to drop for coming week

Athens, 27/07/2000 (ANA)

The ministry said on Wednesday that unleaded gasoline would drop by 12.2 drachmas a liter to around 240.5 drachmas a liter.

Super gasoline would fall by 11.9 drachmas a liter to roughly 257.3 drachmas a liter, the ministry said in a statement.

The suggested weekly retail prices are based on the international dollar rate and world oil prices.

[15] Greece and Cyprus to promote cooperation in telecommunications

NICOSIA, 27/06/2000 (CNA/ANA)

The decision was taken by Cyprus Communications and Works Minister, Averof Neophytou, and visiting Greek Transport Minister Christos Verelis, during a meeting in Nicosia.

Speaking at a press conference, Neophytou said that the conclusions of the committees, to be set up by the two Ministries, will be submitted to both Ministers, who will attend meetings every six months to discuss developments.

Verelis said that Greece has prepared the legal framework to open its telecommunications market and that by 1.1.2001 telecommunications in Greece would be fully liberalized, adding that experience in this field would benefit Cyprus.

[16] Alpha Bank reports lower consolidated profits in 1st half

Athens, 27/07/2000 (ANA)

The Group's consolidated profits totalled 84 billion drachmas, down from 85.8 billion in the same period last year, but up from 43.2 billion in the January-June period in 1998.

Alpha Bank's total assets amounted to 10.145 trillion drachmas, up from 7.441 trillion in 1999. Loans increased by 42 percent.

Parent profits totalled 70.7 billion drachmas in the first six months of 2000, from 79.2 billion last year and 39.5 billion in 1998.

Assets totalled 9.002 trillion drachmas, up from 5.050 trillion in 1999 and 3.483 trillion in 1998.

Deposits totalled 6.190 trillion drachmas, from 3.548 trillion last year, while loans rose to 3.503 trillion drachmas from 1.864 trillion in 1999.

[17] Institutional Investors launches information campaign on mutual funds market

Athens, 27/07/2000 (ANA)

The union has published an information leaflet, to be offered the mutual funds' investors, explaining in detail all the advantages of the market, its categories and their characteristics.

A union announcement said that the information campaign was aiming to help investors in selecting the category of mutual fund that responded better to their investment strategies.

[18] Greek stocks continue moving lower

Athens, 27/07/2000 (ANA)

The general index ended at 3,950.41 points, off 0.94 percent with turnover a low 62.6 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.92 percent to 2,211.87 points and the FTSE/ASE 40 index dropped 1.30 percent to 556.09 points.

The parallel market index for smaller capitalization stocks ended 1.32 percent lower at 711.66 points.

Broadly, decliners led advancers by 289 to 47 with another 12 issues unchanged.

Equity futures drop, tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished lower on Wednesday, in line with the indices on which they are based.

The FTSE/ASE 20 index closed 0.93 percent down, and the FTSE/ASE 40 ended 1.31 percent lower.

Turnover was 6.53 billion drachmas from 9.17 billion drachmas a day earlier.

A total of 753 contracts were traded on the FTSE/ASE 20 with turnover at 3.37 billion drachmas.

On the FTSE/ASE 40 index, 1,408 contracts changed hands on turnover of 3.16 billion drachmas.

Bond prices end mixed in light to moderate trade: Bond prices in the domestic secondary market on Wednesday finished mixed in light to moderate trade.

The lackluster session followed strong demand a day earlier from institutional investors in Germany for long-term paper.

The Greek benchmark 10-year bond showed a yield of 6.024 percent from 6.031 percent in the previous session.

The Greek paper's yield spread over German bunds was 85 basis points from 82 basis points in the trading day before.

Turnover through the central bank's electronic system totalled 62 billion drachmas from 182 billion drachmas a day earlier.

Buy orders accounted for 36 billion drachmas of turnover.

Drachma up vs. euro, down vs. dollar: The drachma on Wednesday rose against the euro and fell versus the US dollar in the domestic foreign exchange market.

At the central bank's daily fixing, the euro was set at 337.100 drachmas from 337.200 drachmas in the previous session.

Also at the fixing, the US dollar was set at 358.820 drachmas from 358.100 drachmas a day earlier.

Demand was seen for euros, part of which was covered by the central bank, which sold around 50 million euros at the fix, traders said.

[19] Greece to train Balkan countries in agriculture

LISBON, 27/07/2000 (ANA)

The decision, which does not just concern Greece but also the Balkans in general, was taken by the 22nd Council of the World Food Council (FAO) which is being held in Porto, Portugal. Delegates by 42 European countries and 25 international organizations attended the council.

[20] Five Swiss hostages, captain freed, hostage taker dead

Athens, 27/07/2000 (ANA)

The coast guard unit boarded the Erato, shortly after 18:30 p.m. The gunman, identified as Frantizec Vezel, 38, was killed in the fray, while a coastguard officer was injured and hospitalized immediately.

All six hostages, a Swiss family with their three children and the captain were unharmed.

The incident took place off the seaside town of Tolo, near Nafplio in the Peloponnese, when the armed abductor boarded the yacht at around 6:00 a.m. He had threatened to shoot the family and the captain unless he was taken to Casablanca, Morocco.

The Swiss family had hired the small sailboat for a tour of the sea region off Nafplio.

Officials said earlier that the hijacker appeared unstable. Merchant Marine Ministry officials said that a coastguard sniper shot the gunman before divers stormed the vessel.

Addressing reporters shortly after the rescue operation, Merchant Marine Minister Christos Papoutsis congratulated the coast guard unit.

"Greece is not a free-for-all country. Democracy prevails here and we are a country which guarantees freedom and is friendly towards foreign visitors," Papoutsis said.

[21] Greece calls for vaccination zone against foot-and-mouth disease in western Turkey

Athens, 27/07/2000 (ANA)

Prefect Giorgos Dolios told the officials that the recent outbreak of foot-and-mouth disease in the region had spread in from neighboring Turkey and that Ankara should consent to the vaccination of animal herds under the supervision of EU authorities, in which Greek observers would participate.

Dolios said that the prefecture had sustained significant economic losses since the appearance of the disease in 1996, and pointed that the recurrence of the same type of foot-and-mouth (Asia 1) showed that Turkey, despite assurances, had not carried out any vaccinations.

He added that as a last-resort measure, the prefecture would not rule out the placing of barbed wire along the borderline if Turkey did not accept the vaccination zone proposal.

The visiting officials toured the stricken areas, but did not make any statements, only noting that they would submit their findings to the Commission in Brussels, which would decide on the measures to be adopted.

More than 5,000 animals have been put to death since the reappearance of the disease in Evros on July 10.

[22] Another heat wave advisory issued

Athens, 27/07/2000 (ANA)

In addition, the ministry warned producers of concrete and consumers that it should be poured only when temperatures do not exceed 32C.

UN, US contemplating whether or not to give proposals to Greek Cypriot and Turkish Cypriot sides GENEVA, 27/07/2000 CNA/ANA)

The United Nations are still contemplating whether or not to give proposals to the Greek Cypriot and Turkish Cypriot sides at the end of the new round of UN-led proximity talks, which opened in Geneva on Monday, or if this should be left for the meetings to be held in the United States in September, ac-cording to sources.

It appears that UN officials conducting the talks have some reservations due to the Turkish Cypriot leader's insistence on his well-known intransigent positions and fear that by putting proposals on the table they may blow the whole procedure up in the air.

They are also concerned with the consequences on the procedure from the long period that will elapse between the end of this round of talks (August 4) until they resume in September.

It appears that foreign governments backing the Cyprus peace process, namely Britain and the United States, have differing views on this issue and their stance will also be determining to the UN decision.

Diplomatic sources said Turkish Cypriot leader Rauf Denktash has not budged an inch from his positions on a settlement, as outlined in a document he presented to the UN chief's Special Adviser on Cyprus, Alvaro de Soto, during the talks held July 5 to 12.

They said that during his meeting on Tuesday with de Soto, Denktash kept repeating his positions, basically for a confederation of two states in Cyprus, contrary to UN decisions and two agreements reached between the two sides in the 1970s, stipulating for a bizonal, bicommunal federation.

It appears that Denktash is not willing to negotiate, a stance that forces both the UN and foreign government envoys in Geneva in the wings of the talks, on focusing their attention on ways to handle the Turkish Cypriot leader's attitude, in order for the procedure to move into the substance of the matter.

The sources said that the Greek Cypriot side, on the other hand, has undertaken an effort so that when proposals are given, they will be within the framework set out by the UN in its resolutions, if the effort is to continue.

The Greek Cypriot side also insists on its position that all four chapters as set out by the UN, namely territory, distribution of powers, security and property, are discussed simultaneously.

Referring to how the talks will unfold over the next few days, the sources said the UN will continue to focus on the reactions, views and clarifications the two sides are giving on some thoughts de Soto presented verbally on the day the last round of meetings adjourned (July 12).

Meanwhile, American and British diplomats in Geneva to monitor the talks have been holding meetings with the leader-ship, aiming at facilitating the peace effort.

British Special Representative for Cyprus, Sir David Hannay, is also expected to meet with the Turkish Cypriot delegation and have a working lunch with President Glafcos Clerides on Wednesday, and met all Greek Cypriot political party leaders accompanying the President.

US State Department Special Coordinator for Cyprus, Thomas Weston, and US Ambassador to Cyprus, Donald Bandler, met yesterday with Foreign Minister, Ioannis Kasoulides, and Under-secretary to the President, Pantelis Kouros. They are scheduled to have a dinner with President Clerides and the Greek Cypriot delegation tomorrow.

The US diplomats have also started to hold separate meetings with the Greek Cypriot political party leaders in Geneva, namely ruling right-wing Democratic Rally President Nicos Anastasiades, left-wing AKEL General Secretary Demetris Christofias, Social Democrats Movement President Vassos Lyssarides, and United Democrats President George Vassiliou. Center Democratic Party has not sent a representative to Geneva yet, but may do so later.

The new peace effort opened last December and meetings were also held in February and earlier this month, aiming at paving the way for substantive negotiations to reach a settlement in Cyprus, divided since Turkish troops invaded and occupied the northern third of the island in 1974.

[23] Vassiliou meets with chief UN negotiator for Cyprus

GENEVA, 27/07/2000(CNA/ANA)

Vassiliou described Maurer's presence in Geneva as "an indication of the European Union's effort to contribute to the efforts for reaching a settlement in Cyprus", divided since Turkish troops invaded and occupied the northern third of the island in 1974.

He said that the European Union official has been meeting with a number of people involved in the Cyprus question.

"The European Union is carrying on its negotiations with Cyprus and is in line with the Helsinki decisions. It hopes that a settlement could be achieved before Cyprus' accession, but this is not a precondition", Vassiliou said.

The Helsinki summit, held last December, gave Turkey a candidate status and reconfirmed the Cyprus Republic could join the European Union even if a settlement is not reached.

Cyprus opened accession talks with the European Union in

[24] Britain's Sir David Hannay assures that any Cyprus solution will be within UN frameworks

GENEVA, 27/07/2000 (CNA/ANA)

On Tuesday, the British diplomat gave the same assurances to right-wing ruling Democratic Rally President, Nicos Anastasia-des, and left-wing AKEL General Secretary, Demetris Christofias, during separate meetings.

Sir David is also expected to meet the Turkish Cypriot delegation in Geneva, headed by Turkish Cypriot leader, Rauf Denktash.

This round of proximity talks, separate meetings held with the two sides by the UN chief's Special Adviser on Cyprus, Alvaro de Soto, opened on Monday.

Talks were also held in December, February and earlier this month, in a bid to pave the way for substantial negotiations to reach a settlement in Cyprus, divided since Turkish troops invaded and occupied 37 percent of its territory in 1974.

Referring to his meeting with Sir David, Vassiliou said he expressed the Greek Cypriot side's "views and concerns over the possibility of this effort moving away from UN Security Council decisions", only to be reassured by the British diplomat that this was not the case.

Vassiliou noted that the UN is conducting the talks and foreign envoys in the wings can only express their views.

He added that it is expected that at some stage de Soto would give the two sides new views on a settlement, maybe not during this round of talks, ending on August 4, but in the meetings to be held in September, in the United States.

Vassiliou, a former Cyprus president, who had also participated in negotiations in the past, said he could not predict whether or not the UN would give an overall set of ideas and expressed the view that "the way in which discussions are taking place today cannot lead anywhere".

"Substantive negotiations should take place", he said, adding it is most likely that de Soto would begin negotiations on specific issues.

On his part, Lyssarides said he was also given the same assurances by Sir David, but noted that the UN framework has to be clarified, as it could be given subjective interpretations.

Talking to journalists in Geneva to cover the talks, Lyssarides expressed concern with the fact that the Greek Cypriot side is struggling to safeguard UN decisions that should be taken as a fact.

He said his message to foreign government envoys involved in the Cyprus peace effort is that "any proposals or thoughts should be within the UN framework".

Lyssarides recalled that the Greek Cypriot side insists on a settlement providing for "a single sovereignty and international personality, the unity of the state, the safeguarding of human rights, based on the European Union acquis communautaire".

Asked if Sir David backs these positions, he said the British diplomat "does not appear to disagree".

Lyssarides assured that despite any differences his party may have with other parties on a settlement, those differences would never be an obstacle for common action.

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