Athens News Agency: Daily News Bulletin in English, 02-06-11

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

CONTENTS

[01] Int'l issues, environmental protection discussed by President in New Zealand

[02] EU foreign ministers reach no decision on

[03] Gov't on 'Euro Army' issue; Aznar in Athens on Tues.

[04] Defense minister on Greek-Turkish relations, NATO, EU force

[05] Solution of Cyprus issue and EU accession ''key'' to stability in the eastern Mediterranean, Karamanlis tells IDU summit

[06] Health minister Alekos Papadopoulos resigns

[07] Costas Stefanis appointed new health minister

[08] Gov't on weekend shooting incident outside PM's residence

[09] ND says it will vote against social security reform bill

[10] Coalition leader opposes social security bill

[11] Gov't unveils measures to support shipbuilding and repair industry

[12] Greek economy grows 4.3 percent in 1st quarter

[13] OTE will not bid for Bulgaria's BTC telecom

[14] Sale tender for Olympic Catering due this week

[15] Drys at EU farm ministers' council on Tues.

[16] Greece, Ukraine plan to tighten energy links

[17] Retail sales up 11.1 percent in March, yr/yr

[18] Greek stocks end 0.43 pct higher on Monday

[19] U.S. envoy and ATHOC president discuss Olympics security

[20] ICF officials visit ATHOC offices

[21] Ecumenical Patriarch to receive 'Sophie 2002' award in Norway

[22] FM Kasoulides: We shall work to achieve a settlement by next Autumn

[23] Cyprus closes one more chapter in accession negotiations

[24] Cyprus remains front-runner among EU candidate countries

[25] Annan discusses Cyprus developments with his envoy

[26] Decision on Cyprus' participation in Open Skies deferred to July

[27] Defense Minister: Turkey tries to create atmosphere of tension

[01] Int'l issues, environmental protection discussed by President in New Zealand

WELLINGTON, 11/06/2002 (ANA - N. Megadou kas)

Stephanopoulos told reporters after the meeting that Greece has agreed to a request by New Zealand for the signing of a ''working holidays'' protocol which would enable Greek and New Zealand youths visiting the other country on tourist visas to extend their visas for a year and work in that country.

In a joint press conference after their meeting, Stephanopoulos and Clark said such an accord would further strengthen the close ties between the two countries.

A similar agreement was expected to be signed also with Australia, during Australian premier John Howard's forthcoming visit to Athens in July.

Clark voiced support for a viable solution to the Cyprus issue founded on the relevant UN Security Council resolutions, and expressed hope that Cyprus' accession to the European Union would ''serve as a catalyst for the resolution of the (island republic's political) problem''.

Addressing a formal luncheon hosted by Clark at the Wellington parliament, Stephanopoulos referred to the issue of terrorism and the threat it posed to democracy, stressing the need for the people to defend their way of life from that phenomenon, but also the need seek the causes so that terrorism could be tackled and eliminated.

''There is poverty and unhappiness in the world,'' Stephanopoulos said, adding that ''the developed peoples, unfortunately, are not touched by this''. He noted that these were not the only causes of terrorism, and that religious fanaticism was also to blame, and stressed that ''we must assist the countries that are in need''.

Turning to the Middle East problem, ''which upsets us all'', Stephanopoulos said that there were ''reactions with acts that are not easily understandable, or which cannot be forgiven by all''.

Asked whether the voices of small countries, such as Greece and New Zealand, could influence the larger countries on such issues, Clark said that both Greece and New Zealand were trying to tackle the causes of terrorism and desired a solution to the Middle East problem.

Stephanopoulos called for the prevalence of ''what is just'' both in the issue of terrorism and on the problems of the environment, but warned that it would be a long and difficult road although, he added, the majority of countries were contributing to supporting the just and would impose it.

Environmental issues also dominated the Stephanopoulos-Clark talks, and the New Zealand prime minister called for Greece's signing of the protocol against whale-hunting.

Stephanopoulos said that Greece was sensitive to environmental problems and has signed the Kyoto agreement, adding that it was ridiculous and foolish ''to destroy the Earth for a passing profit''.

The countries should realize that they must make concessions on the issue of seeking profit vs. protection of the environment, he said.

On the issue of whale-hunting, Stephanopoulos said that Greece's agriculture ministry was studying the matter and expressed hope that he would himself sign the protocol soon on behalf of Greece.

Asked whether Greece, during its EU presidency in the first half of 2003, would push for the abolition of subsidies on farm products, Stephanopoulos replied in the negative, noting that Greece had an agricultural population, but added that it would seek other ways of cooperation with the non-EU countries, without abolishing the farm subsidies.

Earlier, Stephanopoulos met with New Zealand Governor General Dame Silvia Cartwright, who was scheduled to host a formal dinner in his honor on Monday night.

Stephanopoulos and the Greek delegation were due to depart New Zealand on Tuesday morning for Greece, via Singapore, and were due to arrive back in Athens on Wednesday night.

[02] EU foreign ministers reach no decision on

CAP LUXEMBOURG, 11/06/2002 (ANA - M. Spinthourakis)

Speaking to reporters, Papandreou said Greece supported the proposals of the European Commission and the EU Spanish presidency on the application of Common Agricultural Policy (CAP) after enlargement and providing immediate economic aid for farmers of candidate countries.

However, he added that the Council was unable to reach a ''common position'' (necessary for negotiations between the EU and candidate countries to get underway on the CAP issue) due to objections raised by four countries, the Netherlands, Germany, Britain and Sweden.

Papandreou noted that this development is not positive and might create additional problems in the process of EU enlargement, adding that certain proposals aimed at the creation of a two-speed CAP and the enactment of different statuses of CAP application, according to the country, should not be accepted.

Following a proposal by the Spanish presidency, a new discussion will be held in Brussels on Wednesday at a level of ambassadors. The purpose is to achieve a compromise during the next session of EU foreign ministers on June 17, relevant sources clarified here.

The proposal by the Commission and the Spanish presidency focuses in general on direct economic aid being provided for farmers of candidate countries, which at an initial stage will amount to 25 percent of corresponding aid enjoyed by farmers of EU member-states and which will be equated between them gradually by 2013.

Papandreou held talks here with Commissioners Paskal Lami and Vivian Redding on the sidelines of the Council's work. The talks focused on issues concerning the two Commissioners' portfolios with which the Greek presidency (in the first half of 2003) will preoccupy itself.

Replying to a question from the press, in light of the arrival in Athens of Spanish Prime Minister Jose Maria Aznar, whether there are indications that the Spanish presidency could table a compromise proposal on the issue of the so-called European army which Greece could accept, Papandreou said ''not yet.'' He added that deliberations between Athens and Madrid are continuing.

Papandreou also said he again raised at the Council the issue of upgrading relations between the EU and Romania and Bulgaria and stressed that these two countries, which will not be included in the first wave of EU enlargement, should receive a clear accession prospect and be assisted by the EU to harmonies themselves quicker with the so-called acquis communautaire.

[03] Gov't on 'Euro Army' issue; Aznar in Athens on Tues.

Athens, 11/06/2002 (ANA)

Government spokesman Christos Protopapas made the statement in light of Spanish Prime Minister Jose Maria Aznar's visit to Greece on Tuesday.

"All that's been done until now hasn't really led to the Greek side's agreement. The fact that ideas and thoughts are being generated is a positive development, however, we have a long road ahead of us, and we are not on the threshold of an agreement," he said.

[04] Defense minister on Greek-Turkish relations, NATO, EU force

Athens, 11/06/2002 (ANA)

At the same time, he pointed to signs of intransigency from Turkey and stressed that Greece was ready to deal with all potential developments.

The minister made the statements on the sidelines of a press conference on summer cultural events organized by the armed forces.

Regarding a reported attempt by Turkey to have the Dardanelles renamed as the 'Turkish Straits' within NATO, Papantoniou said the Greek ambassador to NATO had assured him that there was no change regarding the international name given to the area.

He also added that this issue was being handled exclusively by the foreign ministry.

Asked about the restructuring of NATO forces to adapt them to new needs, including that of dealing with international terrorism, the Greek defense minister stressed that Greece agreed with the measures.

Decisions on the specifics would be made unanimously within 2003, after the political balances had been taken into account, he said.

Regarding the nascent European rapid intervention force, Papantoniou reiterated that a process initiated by the European Union's Spanish presidency was underway to finalize the European position. He said it would be pointless and badly timed to begin negotiations on this issue with NATO members that were not members of the EU at this stage.

[05] Solution of Cyprus issue and EU accession ''key'' to stability in the eastern Mediterranean, Karamanlis tells IDU summit

WASHINGTON, 11/06/2002 (ANA - T. Ellis)

Karamanlis, who was speaking at the International Democratic Union's (IDU) summit, said the center-right has achieved considerable victories both in past years and recently.

He also underlined that a solution to the Cyprus issue and the accession of Cyprus to the European Union is a ''key'' to stability in the eastern Mediterranean and committed himself that as prime minister he will make every effort to crack down on terrorism.

Karamanlis invited all leaders participating in the meeting to visit Athens during the 2004 Olympic Games, expressing the hope that he himself will be welcoming them as prime minister, something that former British Conservative Party leader and chairman of the meeting William Hague considers to be a certainty.

He added that on Sunday the coalition of French President Jacques Chirac triumphed in France and together with the prospects of friends from Germany, in the upcoming September elections, can shape a different future for the continent.

Referring to Greece, Karamanlis said his New Democracy party is currently the biggest political force in Greece. He added that it places emphasis on growth, employment, education, health and citizens' day-to-day problems and has convinced Greek society that it has the possibility of responding to the challenges of the future.

Karamanlis said the present era is one of great changes and equally great challenges. He further said that the heinous terrorist attacks on September 11 request immediate and effective action.

Terrorism, he added, cannot be tolerated. Terrorism has no ideological, religious or national justifications and is completely incompatible with the values of freedom, human self-respect, tolerance and open societies.

Karamanlis said resistance to every form of violence and safeguarding stability are the common challenges of tomorrow, adding that factors of instability are continuing to create insecurity for citizens in southeastern Europe and the eastern Mediterranean.

He went on to say that stability in the Balkans is a great priority, while the former powder keg of Europe should be turned into a region of peace, stability and cooperation.

Karamanlis said he supports Turkey's European vocation to the degree that it fulfills the European Union's preconditions for accession and behaves in accordance with international law. Cyprus, he added, will join the EU with the first wave of candidate countries by 2003.

Karamanlis shook hands with U.S. Vice President Dick Cheney on the sidelines of the meeting who, according to sources close to Karamanlis, told the ND leader ''they have much to discuss'' during their private meeting at the White House on Tuesday.

At dawn (Greek time) Karamanlis will be attending a reception U.S. President George W. Bush will be giving in honor of the foreign leaders at the White House.

On Tuesday, apart from meeting Cheney, Karamanlis will also be received by Secretary of State Colin Powell at the State Department.

[06] Health minister Alekos Papadopoulos resigns

Athens, 11/06/2002 (ANA)

Papadopoulos and Simitis met at noon and, after a half-hour meeting, Papadopoulos announced his resignation to waiting reporters.

''We had a very substantial and frank discussion. The premier asked for my resignation, which I submitted,'' Papadopoulos said, adding that he had thanked Simitis for his confidence in assigning him three top ministries -- that of Finance, in continuation of the previous government of the late Andreas Papandreou, and those of Interior, Public Administration & Decentralization, and Health and Welfare.

''I will continue to carry out my parliamentary duties until the end of this parliament's term, and also those of PASOK cadre,'' Papadopoulos said, who has a seat on the party's Central Committee.

Commenting on Papadopoulos' departure later on Monday, government spokesman Christos Protopapas said that the personal affairs of ministers also had a political impact and the way in which they were handled had political repercussions.

He said a replacement for Papadopoulos would be announced very shortly, without a more generalized cabinet reshuffle.

The spokesman said that Papadopoulos' announcement that he would not run for Parliament in the next general elections had created a political issue. He also stressed the fact that it had been made without any previous discussion with the prime minister and while the prime minister was absent on an official visit to China.

Protopapas denied that the decision to remove Papadopoulos from office had been taken in advance, however, saying it was a decision taken as a result of the talks between Simitis and the former minister earlier on Monday.

New Democracy comments on resignation: The minister's resignation unleashed a barrage of criticism from main opposition New Democracy, meanwhile, with ND officials making scathing remarks about a 'disintegrating' government.

High-ranking ND official George Souflias said the government was facing acute internal problems that would have repercussions on the country's progress, while ND MP Prokopis Pavlopoulos said that the government had first lost whatever policies it may have had and was now losing its ministers and members.

"In the end, I don't know what will be left of Mr. Simitis' modernization drive," he added.

Vangelis Meimarakis talked about ministers "abandoning ship, tired and disappointed" and issued dire warnings about a state that was falling apart and in a dangerous situation.

Coalition leader comments: Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos said on Monday that former health minister Alekos Papadopoulos decided to withdraw from politics within a given political climate and a given style of governance.

He said Papadopoulos resigned within a climate created by the failure of the government's policy.

[07] Costas Stefanis appointed new health minister

Athens, 11/06/2002 (ANA)

Stefanis will be sworn-in following President of the Republic Kostis Stephanopoulos' return from abroad.

Athens University professor of psychiatry Stefanis was born in 1928. He is married and has two sons and a daughter.

He conducted post-graduate studies at Montreal's McGill University.

He has published a series of studies, including ''Hashish-Studies of long term use'', 1977, ''Recent advances in Depression'', 1983, ''Prolactin and prolactenomas'', 1983, ''Schizophrenia-Recent Biosocial Developments'', 1987 and ''Biological aspects of suicide'', 1988.

He was elected in September 1996 as ruling PASOK Deputy of State.

He took up the chairmanship of the Onassion Cardiological Center in 2001.

[08] Gov't on weekend shooting incident outside PM's residence

Athens, 11/06/2002 (ANA)

Government spokesman Christos Protopapas was directly referring to media and opposition criticism over the last 48 hours of Public Order Minister Mihalis Chrysohoidis, before reiterating that an "in-depth" investigation is underway into the Saturday afternoon shooting.

The spokesman emphasized that Greece still sports one of the lowest crime rates in the European Union, and that Chrysohoidis' efforts have even garnered international praise, while he warned main opposition New Democracy against "trying to exploit everything politically".

According to press reports, a leadership reshuffle at the downtown Athens police station whose jurisdiction includes most of the areas where the gunman acted was the first official repercussion from the incident, which apparently began when a convicted drug user first robbed and shot up a drug detoxification center in central Athens, before going on a mini rampage through some of the Greek capital's most tightly guarded neighborhoods.

Before he was arrested, the suspect, Dimitris Aivatzidis, forced a guard outside the Exarchia police precinct to surrender his firearm at gun point, hijacked a passing vehicle and drove a few blocks away to the upscale Kolonaki district, where he took aim at Premier Costas Simitis' apartment residence and a handful of sentries posted outside on the road.

He was arrested short while later in the Koukaki district, near the Acropolis.

Simitis was reportedly home during the incident.

[09] ND says it will vote against social security reform bill

Athens, 11/06/2002 (ANA)

High-ranking ND deputy George Souflias, who also heads the main opposition's political planning section, criticized the projected legislation as merely a "piecemeal" remedy "that covers up instead of solves problems".

Following a high-profile meeting earlier on Monday with the General Confederation of Greek Workers' (GSEE) presidium at ND's headquarters, Souflias also warned that his party would not "enter into a competition (with the government) over small-time benefits".

On his part, ND party secretary Vangelis Meimarakis said the proposed bill does not, among others, guarantee the social security system's viability, while adding that it simply "mortgages the future".

Meanwhile, GSEE president Christos Polyzogopoulos said that during the meeting ND's representatives accused the government of not "bearing the costs" entailed by the soon-to-be-tabled bill, an apparent insinuation that ND favors tougher labor-related measures.

The last comment generated a heated reaction by GSEE vice-president and ND-affiliated labor leader Yiannis Manolis, who challenged the veracity of PASOK-affiliated Polyzogopoulos' statement.

Finally, GSEE presidium briefed the ND delegation on upcoming strike action, while reiterating its demand for a ND commitment on expansion of trilateral (state, employees, employers) funding for individuals insured prior to 1993.

[10] Coalition leader opposes social security bill

Athens, 11/06/2002 (ANA)

Constantopoulos said the bill is not the object of a national social agreement and is not the result of a substantive social and political dialogue, but the print of a government policy decided in advance.

He further said that a fair and viable reform of the social security system will not result from accounting equations and fiscal redistributions of funds within the system, but will result from social sensitivity and social priority combined with other policies such as systematic tax reform, the policy on employment and the policy for additional social protection and the demographic issue.

[11] Gov't unveils measures to support shipbuilding and repair industry

Athens, 11/06/2002 (ANA)

The measures envisage: rescheduling of debt by 550 small building and repair units in the wider Perama area, setting up a subsidiary unit at the Piraeus Port Organization to support activities in these businesses, training 900 unemployed people in the area and creating a business register from September 1, 2002.

The two ministers said that small- and medium-sized businesses in the industry would pay their debts to the state in 48 tranches, after cutting their penalty rates by one-third.

The government is expected to complete all procedures for the operation of an industrial zone in Shisto this month.

Merchant Marine Minister George Anomeritis said that the government was gradually dealing with all problems facing the industry and noted that the government has earmarked around 7.5 billion drachmas to support the sector since 1996.

[12] Greek economy grows 4.3 percent in 1st quarter

Athens, 11/06/2002 (ANA)

The country's gross domestic product (GDP) rose 4.3 percent, real investments jumped 11.3 percent, final consumption rose 3.6 percent, exports increased 5.4 percent and imports rose 6.0 percent in the January-March period.

Greek inflation eases to 3.4 percent in May: Greek annual inflation, measured by the consumer price index, fell to 3.4 percent in May from 3.8 percent the previous month, National Statistics Service said on Monday.

The consumer price index was unchanged in May from April, while the harmonized inflation eased to 3.8 percent in May, on a year-on-year basis.

The inflation rate was 3.6 percent in May 2001.

NSS said that the May figure reflected: an 11.9 percent increase in alcohol and tobacco prices, an 8.4 percent rise in hotel-coffee-restaurant prices, a 4.9 percent increase in health care prices, a 4.8 percent rise in clothing and footwear prices and a 3.6 percent rise in other goods and services and education prices in the month. The monthly unchanged consumer price index reflected increases in clothing and footwear, hotel-coffee-restaurant and healthcare prices (1.2 percent, 1.7 percent and 0.6 percent, respectively). Food and Beverage prices eased 2.3 percent in May from April.

Greek exports down 15 pct in 2001, union urges support measures: Greek exports dropped 15 percent in 2001 according to provisional figures by the National Statistics Service (NSS), a development highlighting the need for urgent measures, Christina Sakellaridis, chairman of the Panhellenic Exporters' Union said on Monday.

Mrs Sakellaridis, speaking to reporters during a news conference, said that NSS and Bank of Greece's export figures were conflicting. The union, however, estimates that exports dropped 15 percent last year, when world exports rose by 13 percent, according to OECD figures.

Greek exports rose an average 3.0 percent annually in the 1990s, half the average global export growth, losing market share in the global market, Mrs Sakellaridis noted.

Union figures showed that exports to the European Union fell 13 percent in 2001 and noted that import penetration grew in the Greek market pushing the export/import rate to 38 percent in 2000 from 42 percent in 1990. ''This development shows a serious shortfall in competitiveness,'' Mrs Sakellaridis said.

The union noted, however, a significant increase in the exports of high-technology products, as a percentage of total Greek exports, with chemical product exports rising three times during the decade and telecommunication equipment and office equipment exports rising 13 times over the same period. However, high-technology exports still account for a rather small share of total Greek exports.

The Panhellenic Exporters' Union said that the country needed a new policy to improve its competitiveness. The union urged for a series of measures including: the immediate abolition of all taxes on exports, promoting Greek products abroad with selective products in selected markets, organizing events and participating in international trade fairs, exploiting Athens 2004 Olympic Games' preparations to promote Greek products, supporting businesses in developing high-technology products, restructuring all commercial and financial agencies abroad and creating a task force to monitor export activity in the country.

[13] OTE will not bid for Bulgaria's BTC telecom

Athens, 11/06/2002 (ANA)

OTE has a mobile phone subsidiary in Bulgaria named Globul, which has been operating since September 2001.

It said in a statement that management planned to focus on Globul rather than acquire a stake in BTC.

[14] Sale tender for Olympic Catering due this week

Athens, 11/06/2002 (ANA)

In 2001, Olympic Catering showed losses of 5.3 million euros on sales of 50 million euros. In 2000, earnings before tax were 657 million drachmas.

Olympic Aviation holds 68 percent of the company.

[15] Drys at EU farm ministers' council on Tues.

Athens, 11/06/2002 (ANA)

On Wednesday, Drys travels to Rome to attend an international conference organized by the UN's Food and Agriculture Organization (FAO), five years after a decision by participant-countries to promote measures against hunger world wide.

[16] Greece, Ukraine plan to tighten energy links

Athens, 11/06/2002 (ANA)

Among projects backed by the two sides are the creation of natural gas-fired electricity plants by Greek and Ukrainian firms; and sounding out opportunities for greater involvement by Ukraine in the construction of a natural gas pipeline from Ankara, the Turkish capital, to the Greek town of Komotini, the statement said.

The announcement followed talks in Kiev between visiting Development Minister Akis Tsohatzopoulos and senior government officials.

Tsohatzopoulos expressed Greece's interest in importing electricity from Ukraine, which would be feasible through Bulgaria or Romania and the Former Yugoslav Republic of Macedonia, if the three countries agreed, the statement added.

The talks are to continue in Athens at the end of August.

[17] Retail sales up 11.1 percent in March, yr/yr

Athens, 11/06/2002 (ANA)

The volume of retail sales rose 6.8 percent in March, NSS said.

The wholesale prices' index rose 0.5 percent in April, from the previous month, for an increase of 3.1 percent compared with the same month in 2001.

[18] Greek stocks end 0.43 pct higher on Monday

Athens, 11/06/2002 (ANA)

A wave of buying for blue chip stocks, particularly banks, in the half hour of trading, pushed the general index 0.43 percent higher at 2,305.85 points. Turnover, however, was a disappointing low 66.4 million euros.

The Investment, Banks and Food-Beverage sectors scored the biggest percentage gains of the day (1.47 percent, 1.04 percent and 0.86 percent, respectively), while the IT Solutions, Insurance and Publication sectors suffered the heaviest percentage losses (0.47 percent, 0.31 percent and 0.31 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.62 percent, the FTSE/ASE MID 40 index ended 0.35 percent higher and the FTSE/ASE SmallCap 80 index eased 0.12 percent.

Broadly, advancers led decliners by 171 to 116 with another 66 issues unchanged.

The most heavily traded shares in value were Klonatax (common and preferred), Coca Cola HBC, and Hellenic Telecoms.

Equity index futures at discount: Equity index futures on the Athens Derivatives Exchange on Monday ended lower in light trade.

Turnover was 31.5 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips gained 0.62 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks rose 0.35 percent.

Bond prices nose up in moderate trade: Bond prices in the domestic secondary market on Monday finished slightly higher in moderate trade focusing on five-year paper.

The Greek benchmark 10-year bond showed a yield of 5.43 percent, and the spread over the corresponding German bund was 30 basis points.

Turnover through the central bank's electronic system totalled 1.6 billion euros.

Buy orders accounted for just over half of trade.

[19] U.S. envoy and ATHOC president discuss Olympics security

Athens, 11/06/2002 (ANA)

The two U.S. officials met ATHOC President Gianna Angelopoulos Daskalaki who briefed them on the course of preparations for the 2004 Athens Olympic Games and the security program in particular.

According to ATHOC sources, the meeting was part of regular contacts between the Organizing Committee and the seven countries having an advisory role on the Games' security issues.

The sources added that the U.S. is showing particular interest both on the security program, particularly after the terrorist attack on September 11, and the new form of terrorism concerning the international community.

[20] ICF officials visit ATHOC offices

Athens, 11/06/2002 (ANA)

The ICF officials were briefed by ATHOC officials on progress achieved in organizing the Olympic canoe tournament and on

progress in building the Olympic installations at Hellenikon where the Slalom event will be held.

''We are impressed by the facility being built in the region of Hellenikon. As soon as it is completed it will be by far the best in the world for Slalom. We want to stress that we had a very constructive meeting and an excellent briefing by the members of the Organizing Committee,'' said ICF President Uhrlich Ferldof.

[21] Ecumenical Patriarch to receive 'Sophie 2002' award in Norway

ISTANBUL, 11/06/2002 (ANA - A. Kourkoulas)

An announcement by the foundation said the prize was being given to Vartholomeos in recognition of his ''groundbreaking efforts to link religion with the environment, thus reminding all of people of faith of their responsibility for the protection of the Earth.''

The announcement stressed the Ecumenical Patriarch's influence on 300 million Orthodox Christians and the fact that he had inspired other religious leaders to follow his example, the criticism he had leveled against over consumption in rich countries and the inequalities in developing countries.

The award ceremony will take place on Wednesday, with Norwegian Environment Minister Borge Brende handing the Ecumenical Patriarch the prize.

Earlier on Wednesday, Vartholomeos will meet Norwegian Prime Minister Kjell Magne Bondevik, while on Thursday he will be received by Norway's King Harald V.

On Tuesday afternoon, Vartholomeos will attend a reception given in his honor by the Church of Norway, while on Tuesday night he will attend a dinner in his honor given by the Greek Ambassador to Norway Ioannis Boukaouris.

The International Sophie Prize was established in 1997 by the Norwegian writer Jostein Gaardner and his wife and is awarded each year to people and organizations working for the protection of the environment and development.

[22] FM Kasoulides: We shall work to achieve a settlement by next Autumn

LUXEMBOURG, 11/06/2002 (CNA/ANA)

Addressing the 9th meeting of the Intergovernmental Conference in Luxembourg, he said Cyprus will make extra efforts to ensure it completes on time the legislative harmonization process and described the time between now and the conclusion of membership talks as "indeed crucial."

"This window of opportunity is the best possibility ever to reach a settlement and achieve reconciliation of our people," he said, adding that President Glafcos Clerides, representing the Greek Cypriot side at the UN-led peace talks, will continue his "constructive approach."

He said all possible avenues would be explored "so that a mutually acceptable solution to the Cyprus problem may be reached by next Autumn."

Nicosia, he added, fully agrees with the EU position that any future settlement should enable Cyprus, as a member state, to speak with one voice and implement its commitments.

President Clerides and Turkish Cypriot leader Rauf Denktash have been engaged in direct talks since mid January this year with a view at finding a comprehensive settlement.

Referring to the accession process, the minister said that he expects this month's EU summit in Seville to "take stock of the progress achieved and give a decisive impetus to the successful completion of the accession negotiations during the Danish presidency" in the second half of the year.

"The remaining period till the conclusion of the accession negotiations is indeed a crucial one," he said, adding that efforts have been enhanced further for the timely completion of the legislative harmonization process.

New institutions and mechanisms are in place wherever necessary, existing ones are strengthened and personnel is being trained as part of this effort, he said.

The minister said he was pleased that four more chapters of the acquis communautaire have been provisionally closed and that progress has been achieved on the remaining two, agriculture and financial and budgetary provisions.

[23] Cyprus closes one more chapter in accession negotiations

NICOSIA, 11/06/2002 (CNA/ANA)

Foreign Minister Ioannis Kasoulides said that by closing this chapter Cyprus will have in fact wrapped up its accession negotiations since for the closing of the two chapters remaining that of Agriculture and Financial and Budgetary Provisions the EU must take decisions on financing.

As far as the Agriculture chapter is concerned ''we have concluded all the work needed to be done by Cyprus,'' Kasoulides added, noting ''Cyprus accession negotiations with the EU have basically been concluded.''

He said the financing issues concerning the chapters of Agriculture and Financial and Budgetary Provisions would be discussed in October by the 10 under accession countries and the 15 EU member states.

Kasoulides will travel from Luxembourg to Vienna where he will meet with his Austrian counterpart.

After that he will pay an official visit to Bratislava at the invitation of the Slovak Foreign Minister to discuss issues of mutual concern. Both countries aspire to join the EU in the first wave of enlargement.

Kasoulides said he would take the opportunity to express to his Slovak counterpart the Cyprus government's gratitude for Slovakia's contribution to the UN peacekeeping force in Cyprus, divided since 1974 when Turkish troops invaded and occupied 37 per cent of its territory.

On his way back to Cyprus Kasoulides will stop over in Budapest to meet the new Hungarian Foreign Minister.

[24] Cyprus remains front-runner among EU candidate countries

NICOSIA, 11/06/2002 (CNA/ANA)

Vassiliou noted that the 1999 Helsinki EU Summit decision on Cyprus is ''crystal clear'' and underlines that Europe wants the reunification of Cyprus, divided since 1974 when Turkish troops invaded and occupied its northern third, but does not set out the settlement of the Cyprus problem as a precondition for accession.

While in Germany, he had meetings with the parliamentary committees of European and External Affairs, party representatives and senior officials of the German Foreign Ministry.

Referring to the ongoing UN-led direct talks between Cyprus President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, which began in mid January this year, Vassiliou said ''unfortunately, things were stagnant with the responsibility lying exclusively with Denktash, who is insisting on his position for two states in Cyprus.''

Invited to say whether Cyprus accession is a ''blank check'', irrelevant of the solution or not of the Cyprus question, Vassiliou said ''surely, it was never a blank check, but it was a prospect for all of us.''

Invited to comment on Turkish threats for heated incidents to impede Cyprus' accession to the EU, the former Cypriot President said that ''it would be absurd not to have any concerns, provided Turkey's behavior so far.''

''Concerns are justified'', Vassiliou said. However, he expressed the view that ''that Cyprus will accede and the possibilities for a heated incident are far off.''

He recalled the recent decision of the Turkish National Security Council that Turkey's European orientation is the first priority. ''It is difficult from the one side to say 'Europe' and from the other to create a heated incident'', Vassiliou remarked.

Cyprus opened accession negotiations with the EU in 1998 and will close today another chapter of the acquis communautaire, that of Competition, bringing up the number of closed chapters to 28 out of31.

[25] Annan discusses Cyprus developments with his envoy

NICOSIA, 11/06/2002 (CNA/ANA)

The Peruvian UN diplomat had gone to Italy from Cyprus to brief Annan, who is in Rome to attend the World Food Summit.

Annan visited Cyprus last month to urge the two leaders to forge ahead with a shared sense of urgency and willingness to compromise in earnest.

Meanwhile, British representative for Cyprus, Lord David Hannay, who arrived here on Sunday for a three-day working visit, held a series of private meetings on Monday.

On Tuesday, he will be received by Cyprus President Glafcos Clerides and meet Cyprus House of Representatives President Demetris Christofias.

He will also cross into the areas of Cyprus occupied by Turkish troops since 1974 to meet the Turkish Cypriot leader.

Lord Hannay will be briefed by De Soto, while on the island, on developments in the direct talks.

[26] Decision on Cyprus' participation in Open Skies deferred to July

NICOSIA, 11/06/2002 (CNA/ANA)

The minister said a final decision on the Cypriot application would be taken in mid July. On Monday, the Open Skies Consultative Commission of the Organization for Security and Cooperation in Europe (OSCE) dealt with Cyprus' application.

"Turkey, which continues to occupy Cyprus' northern part, has the right to veto our application to become a state party to the Treaty,"

Hasikos said, noting that Ankara, which does not recognize the government of the Republic, objects to Cyprus' participation in any international forum.

Replying to questions, he said Cyprus is not worried by the prospect of being photographed, as its military programs are designed to be a deterrent and nothing more than that.

"There are others who are in an offensive formation and pose danger to us," he said.

Turkey, he said, would be able to photograph Cyprus and we would be able to do likewise. He said Turkish aircraft have been carrying out illegal reconnaissance flights and photographing Cyprus for years now but Nicosia has no right to respond in kind.

Cyprus, one of 55 participating states to the OSCE, exercised its right to apply for accession to the Treaty within the six months following its entry into force on 1 January this year.

The government submitted a written request to one of the depository nations (Canada or Hungary) and subsequently the Open Skies Consultative Commission is considering the application.

Replying to questions, Hasikos said the Open Skies Treaty can help build trust and transparency in military hardware and the armed forces but can also help locate nuclear weapons and movement of troops.

He explained that the Treaty, signed on March 24, 1992, establishes a regime of open flights by the state parties for military observation.

State parties are allowed to overfly each other's territory with an observation aircraft.

The flights are carried out with unarmed aircraft, equipped with specific sensors and flying according to the a flight plan defined by the observing state and accepted by the observed state and the data resulting from these flights are made available to all state parties to the Treaty, which in November last year numbered 27 nations.

[27] Defense Minister: Turkey tries to create atmosphere of tension

NICOSIA, 11/06/2002 (CNA/ANA)

The minister said the maneuvers, code-named ''Thalassolykos'' (sea wolf), are an attempt by Ankara to warn the European Union that there is tension in Cyprus, in a bid to dissuade Brussels from accepting the Republic in its ranks.

''Without any exaggeration, the military activity the Turkish armed forces are involved in is directly linked to the fact that Cyprus is edging closer to EU accession,'' Hasikos told the press.

He said Turkey has said it would use areas within Nicosia FIR for the purpose of the exercise, which ends on June 17.

Replying to questions, he said at this stage there is increased vigilance and the National Guard's early warning system is monitoring activity by third parties, at sea and in the air, in the region.

Hasikos said that in previous years Turkish ships berthed at the port of Kyrenia, on the northern coast of Cyprus and under Turkish occupation since 1974.

There were also violations of the national air space and of Nicosia FIR, he added, something that is expected to occur this year too during the exercise.

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