Athens News Agency: Daily News Bulletin in English, 04-03-16

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

CONTENTS

[01] FinMin to seek "credible" economic policy

[02] Three minutes of silence in honor of Madrid victims

[03] Deputy FM stresses need for viable solution to Cyprus issue

[04] UN-sponsored Greece-Turkey talks on Cyprus security, guarantees to open Wednesday

[05] PM Karamanlis confers with former premier, ND hon. pres. Mitsotakis

[06] US ambassador visits defense minister; Olympics security discussed, sources say

[07] Ecumenical Patriarch Vartholomeos meets Senator Hillary Rodham Clinton

[08] PASOK party leader congratulates Spanish socialist party leader

[09] Government announces appointment of new secretary generals at ministries

[10] Public order minister receives US Sixth Fleet commander

[11] Greek Ambassador to U.S. hosts dinner in honor of Marc Grossman

[12] Gov’t says EU funds' inflows, investments, top priority

[13] Gov't against state intervention in markets, Development minister

[14] FinMin, employers agree to closer cooperation

[15] GSEE asks for 8.0 pay increase, reduced working hours

[16] New agri-minister seeks cooperation with key farm group

[17] Greek retail sales index up 4.3 pct in Dec. 2003, yr/yr

[18] Greek pharmaceutical sector urges gov't measures to protect sector

[19] EU set to probe new Greek law on Olympic Airlines

[20] Public Power Corp to keep CEO, lose president under new gov't

[21] Stocks slump in sell-off

[22] June 15 named as deadline for work on Marathon course starting point

[23] ATHOC president and deputy sports minister discuss Olympic Games preparations

[24] Capralos assumes culture ministry post for Olympics

[25] Bakoyianni and Orfanos discuss Olympic Games

[26] Opening of an Olympic Games-inspired children’s' art exhibit

[27] Education minister announces changes to university-entrance exam system

[28] 'Revolutionary Struggle' group claims responsibility for intended explosion

[29] PM-Culture minister Karamanlis meets with Mikis Theodorakis

[30] Pavlidis announces development law for the islands

[31] Illegal immigrants on Samos

[32] Public order minister visits fire brigade headquarters

[33] Interior minister pays courtesy visit to Ombudsman

[34] Publisher Mihalopoulos ordered to stand trial for extortion

[35] Oil painting of Athens in 1674 acquired by City of Athens Museum

[36] House speaker says new Cyprus process means things not going well

[37] Top UN envoy believes enlarged talks 'unavoidable'

[01] FinMin to seek "credible" economic policy

Athens, 16/03/2004 (ANA)

Speaking to reporters, Mr Alogoskoufis said he would meet with representatives of commerce and small- and medium-sized enterprises on Tuesday, in the framework of a series of meetings to discuss industry problems ahead of presenting the government's policy statement in parliament next week. Mr Alogoskoufis met with workers' and employers' unions on Monday.

The Greek minister stressed he would follow consensus procedures and noted the value of a credible economic policy.

He stressed that the ministry would not intervene in a current round of talks between employers and trade unions over the signing of a new collective agreement, although he noted the urgency of the matter.

Mr Alogoskoufis, commenting on a large gap between workers' demands and employers' proposals over a pay increase rate, sounded optimistic saying "there were always been divergence but also solutions".

[02] Three minutes of silence in honor of Madrid victims

Athens, 16/03/2004 (ANA)

The Irish prime minister called for an EU-wide observance of three-minutes of silence, a call that was echoed by interior minister Prokopis Pavlopoulos in memory of the "innocent victims of the March 11 terrorist attack in Madrid", and in a symbolic act of "condemnation of terrorism as a brutal criminal action against humanity".

[03] Deputy FM stresses need for viable solution to Cyprus issue

BRUSSELS 16/03/2004 (ANA/M. Spinthourakis)

Valinakis, in his first visit abroad after assuming his duties, held talks with European Union Enlargement Commissioner Guenter Verheugen and his Belgian counterpart Frederique Ries.

Speaking to Greek reporters, Valinakis said he and the EU commissioner discussed developments in consultations aimed at solving the issue of Cyprus, adding that concern does exist over the fact satisfactory progress has not been achieved so far but time still exists for a solution satisfying all interested parties to be found.

The deputy foreign minister further said the Greek side has expressed its devotion to the procedures followed by the UN and noted that in order to handle the concern of Greek Cypriot public opinion on the Annan plan its European dimension must be strengthened so as to prevent permanent deviations from the acquis communautaire.

Valinakis said that the Greek side, ''just as any reasonable person'', cannot accept the recent Turkish ideas on a special protocol being concluded for Cyprus' accession to the EU.

He added that the Greek side will continue to work for a solution to be found for the Cyprus issue, stressing that, after the accession of Cyprus to the EU, the problem of Cyprus is the second most important priority for Greek diplomacy.

Valinakis left Brussels for Paris on Monday for talks with his French counterpart on Tuesday morning.

[04] UN-sponsored Greece-Turkey talks on Cyprus security, guarantees to open Wednesday

Athens, 16/03/2004 (ANA)

The Greek delegation will comprise foreign ministry director for political affairs Elias Klis, Ambassador K. Tritaris, and National Defense General Staff (GEETHA) senior officer Maj. Gen. Stylianos Panagopoulos. The Turkish delegation will be headed by foreign ministry ambassador Bagi Ilkin. Also participating will be a delegation of UN civilian and military officials.

[05] PM Karamanlis confers with former premier, ND hon. pres. Mitsotakis

Athens, 16/03/2004 (ANA)

Mitsotakis wished Karamanlis every success, and said in reply to press questions that he would not be playing any role in the government, adding that he cared about the country and intended to voice his opinions publicly and inside the party.

Mitsotakis, who recently withdrew from active politics and did not seek re-election to parliament in the general elections earlier this month, said in reply to a press question on whether he was interested in seeking the Presidency of the Republic: "Let's not repeat the same things". Mitsotakis had recently announced that he would not be seeking the Presidency.

On last week's concerted terrorist attacks in Madrid, Mitsotakis said it was a "worrisome sign" that influenced the internal developments in Spain, adding "we are entering a new phase that justifies many concerns".

[06] US ambassador visits defense minister; Olympics security discussed, sources say

Athens, 16/03/2004 (ANA)

The meeting lasted roughly one hour, while according to sources it covered matters of mutual interest and particularly issues concerning security for the Olympic Games in August.

[07] Ecumenical Patriarch Vartholomeos meets Senator Hillary Rodham Clinton

NEW YORK 16/03/2004 (ANA/P. Panagiotou)

In statements after the meeting, Clinton said she admired the Patriarch, ''not only as leader of 250 million Orthodox Christians through out the world, but also for his action aimed at the protection of the environment.''

Referring to the Cyprus issue, she expressed the hope that ''the developments will lead to the accession of a united Cyprus in the European Union.''

The Ecumenical Patriarch was due to meet later on Monday with UN Secretary-General Kofi Annan at the UN headquarters and afterwards inaugurate the exhibition ''Byzantium: Faith and Strength (1261-1557)'' at New York's Metropolitan Museum of Art. The exhibition will be open to the public from March 23 to July 4. On exhibit will be 350 objects of Byzantine art, including 43 icons and relics, from 30 countries.

On Thursday, Vartholomeos will give a speech at the museum's hall on the theme: ''Byzantine icons: Heritage for Humanism''.

The Patriarch is on a week-long visit to the United States since Saturday. It is his 5th visit to the Greek Orthodox Church of America.

[08] PASOK party leader congratulates Spanish socialist party leader

Athens, 16/03/2004 (ANA)

''Your party's victory comes at an appropriate time in one of the most crucial and difficult moments for your country, immediately after the savage terrorist attacks in Madrid, whose target was the Spanish people and democracy,'' Papandreou said.

''We would like to express our solidarity to you, to PSOE and to the Spanish people and to commit ourselves to continuing to cooperate closely together with the other European progressive forces for a Europe in which security, social justice and the prosperity of peoples will predominate,'' he added.

[09] Government announces appointment of new secretary generals at ministries

Athens, 16/03/2004 (ANA)

At the Ministry of Internal Affairs, Public Administration and Decentralization, Eugenia Tsunami assumes the post of Secretary General for the Equality of the Genders and Lambros Georgakopoulos as special secretary of the Public Administration's Inspectors' Service.

Agricultural University rector Andreas Karamanos is secretary general at the Ministry of Education and Religious Affairs, Supreme Court public prosecutor G. Zorbas at the National Defense Ministry, honorary ambassador Leonidas Evangelidis at the Public Order Ministry, Athens University of Economics professor Yiannis Tzoanos at the Merchant Marine Ministry and Supreme Court lawyer Panagiotis Panouris at the Justice Ministry.

[10] Public order minister receives US Sixth Fleet commander

Athens, 16/03/2004 (ANA)

[11] Greek Ambassador to U.S. hosts dinner in honor of Marc Grossman

WASHINGTON 16/03/2004 (ANA/T. Ellis)

The guests at the dinner included, among others, senior government officials and the ambassadors of Cyprus, Turkey, Holland, Sweden and Belgium.

In his address, Ambassador Savvaides referred to Grossman's interest in developments in the Eastern Mediterranean and in the Middle East as well as to his ''important role'' in the strengthening of Greek-U.S. relations, which, he said, are of ''mutual trust and common objectives.''

On his part, Grossman said that bilateral relations were indeed ''on a very good level.'' The senior State Department official further underlined that the U.S. government, which cooperated closely with the previous Greek government, will continue in the same direction with the new Greek government, particularly on the Cyprus issue and on the Athens 2004 Olympic Games

[12] Gov’t says EU funds' inflows, investments, top priority

Athens, 16/03/2004 (ANA)

Speaking to reporters, Mr Folias noted that "foreign investments in the country were around zero".

The Greek minister said he was in favor of transparency, open doors and positive cooperation and urged for a constructive criticism by the media.

Mr Folias said that Costas Mousouroulis would replace Costas Theos at the post of the Economy ministry's secretary-general for investments and development.

[13] Gov't against state intervention in markets, Development minister

Athens, 16/03/2004 (ANA)

He said a series of market-restraint decrees failed to help implement state laws or activate regulatory mechanisms.

''In Greece, everything is left in chance and to the patriotism of

business people,'' Mr Papathanasiou said, adding that the new government aimed to strengthen competition, combat price cartels, reduce production costs, support consumer groups and to ensure the implementation of the country's laws.

Nikos Constantopoulos, the leader of the Coalition of the Left party, proposed that Greece become a genetically modified products (GMOs) ''free zone''. He was addressing an event to celebrate the World Consumer Day.

Drakoulis Fountoukakos, president of the Athens Chamber of Commerce

and Industry, stressed that the power of television and other media, the expansion of information technology and the use of Internet have created an environment where consumers were ''bombarded'' by thousands of messages, some of them dangerous. Mr Fountoukakos noted that the role of consumer groups for the protection of consumers was very significant.

Haralambos Kouris, president of INKA, a Greek consumer group, said

that ''gentlemen’s' agreements'' were not enough to prevent price increases and urged for immediate measures to stabilize prices in the domestic market. Mr Kouris said that measures should be taken during the Athens 2004 Olympic Games.

Mr Fountoukakos said if the government succeeded in strengthening

competition in the domestic market, ''this could lead to a price fall''.

Pantelis Panteliadis, president of Greek super-market union, said

there were no reasons for a big jump in prices and added that there always been and always will be price up-and-downs, within logical levels. He said that the sector supported every government's effort, within the sector's ability.

[14] FinMin, employers agree to closer cooperation

Athens, 16/03/2004 (ANA)

Speaking to reporters, after the meeting, Mr Kyriakopoulos said there were several issues "open" that should be discussed between the ministry and representatives of Greek industry. "Tax reform must be continued," Mr Kyriakopoulos said adding there was room to improving a development law.

Commenting on a demand by GSEE - the country's largest trade union umbrella - Mr Kyriakopoulos said that the Economy and Finance minister called for a framework agreement that would satisfy workers' demands and at the same time would not have any negative impact on the economy and its competitiveness.

[15] GSEE asks for 8.0 pay increase, reduced working hours

Athens, 16/03/2004 (ANA)

Speaking to reporters, after a meeting with Economy and Finance Minister George Alogoskoufis, GSEE's president Christos Polyzogopoulos, said he explained the union's demands to the new Economy minister and noted that a pan-hellenic workers' strike scheduled for March 31 was announced before the March 7 elections in protest for a 3.0 percent pay increase proposed by employers.

Mr Polyzogopoulos said he asked for Mr Alogoskoufis' support in dealing with pending adjustments in the country's social security system, but within an existing framework.

Mr Alogoskoufis said that the government should have a word in wage talks between GSEE and employers since a new collective wage agreement has not been signed yet.

Earlier, the Greek Economy and Finance Minister met with Development Minister Dimitris Sioufas to discuss ways of improving coordination between ministries.

The two ministers agreed to set up a commission, comprising secretary-generals of both ministries, to enhance coordination. Speaking to reporters, after the meeting, Mr Sioufas sounded optimistic: "We will do well. This message must be delivered to all Greek citizens".

[16] New agri-minister seeks cooperation with key farm group

Athens, 16/03/2004 (ANA)

A meeting of the minister and his deputies with leaders of PASEGES, a trade group for the country's agricultural cooperatives, focused on negotiations for support levels that will be granted to Mediterranean products within the European Union.

[17] Greek retail sales index up 4.3 pct in Dec. 2003, yr/yr

Athens, 16/03/2004 (ANA)

NSS said the average increase of the retail sales index was 7.8 percent in 2003, compared with the previous year, reflecting increases of 12.4 percent in large food stores, 8.9 percent in department stores, 9.6 percent in pharmaceutical products-cosmetics and 10.7 percent in paper and gifts.

[18] Greek pharmaceutical sector urges gov't measures to protect sector

Athens, 16/03/2004 (ANA)

Domestic pharmaceutical companies said they planned to meet with new Health Minister Nikitas Kaklamanis and Development Deputy Minister Yiannis Papathanasiou to discuss the issue. They said the local pharmaceutical industry was steadily shrinking over the last few years, representing only 20 percent of the domestic market, compared with a 60-percent market share a few years ago.

Companies are urging for government-sponsored incentives to improve competitiveness and to abolish a current pricing policy favoring the import of ready-made products, which are more expensive compared with domestic ones.

[19] EU set to probe new Greek law on Olympic Airlines

Athens, 16/03/2004 (ANA)

The new government's transport and communications minister, Mihalis Liapis, may fly to Brussels in coming days concerning the legal review, ministry sources said on Monday.

The government stated in its election platform that it was eager to privatize the airline but wanted the change in its form and status to meet all legal requirements.

[20] Public Power Corp to keep CEO, lose president under new gov't

Athens, 16/03/2004 (ANA)

Development Minister Dimitris Sioufas and Finance Minister George Alogoskoufis said that Nezis would remain in his position in order to maintain continuity in operation of the PPC, which is heavily traded stock on the bourse.

Sioufas, whose ministry supervises the PPC, on Monday accepted the resignation of outgoing president Dimitris Papoulias.

It is a standard move for the heads of most state companies to resign after a change of ruling party in government.

[21] Stocks slump in sell-off

Athens, 16/03/2004 (ANA)

The general share index shed 2.33 per cent to end at 2,363.66 points. Turnover was 122.7 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 2.44 per cent down; the FTSE/ASE-40 for medium capitalization paper 2.31 per cent lower; and the FTSE/ASE-80 for small cap equities lost 3.17 per cent.

Of stocks traded, declines led advances at 299 to 33 with 26 issues remaining unchanged.

FOREIGN EXCHANGE

Closing rates of March 15 2004

Parities in euro

For. Exchange Buying Selling

US Dollar 1,237 1,209

[22] June 15 named as deadline for work on Marathon course starting point

Athens, 16/03/2004 (ANA)

The minister said that certain technical changes to the project had been agreed during the meeting, which would not affect the quality or function of the facilities, nor significantly alter their aspect.

Souflias also promised that anything not completed now would be completed after the Games.

During the meeting, it was decided that there would be strict control of the project's progress and its adherence to the schedule

every 10 days, while Souflias stressed that the delays were not the sole responsibility of the contractor.

Finally, the minister asked the new consortium assigned the task of widening 17 kilometers of the Marathon course near Pallini to proceed with the work as quickly as possible.

[23] ATHOC president and deputy sports minister discuss Olympic Games preparations

Athens, 16/03/2004 (ANA)

Orfanos said ''we had a substantive discussion concerning Olympic sports preparation," adding that ''we shall do what is necessary to enable our athletes to achieve their best performance. It is what the Greek fans want and we believe that this will also function as an incentive for stadiums to be filled during those days.''

[24] Capralos assumes culture ministry post for Olympics

Athens, 16/03/2004 (ANA)

Capralos was greeted by new Alternate Culture Minister Fani Palli-Petralia, who presided over the Olympic Games sector prior to her New Democracy party’s ascent to power earlier this month.

Kartalis resigned in the wake of PASOK’s election defeat on March 7 despite calls by the new ND government to remain until the Games.

[25] Bakoyianni and Orfanos discuss Olympic Games

Athens, 16/03/2004 (ANA)

Orfanos said that he met with Bakoyianni to determine a common strategy, first of all in terms of the Olympics, but also for the period after the Games.

[26] Opening of an Olympic Games-inspired children’s' art exhibit

Athens, 16/03/2004 (ANA)

The exhibit features the drawings/paintings of children between the ages of 5 and 14, from 29 countries with the central theme being the Olympic Games and the return to their birthplace.

International Paint Pals, founded with the help of the Carter Presidential Center in Atlanta in 1995 and now an on-going program of the Youth Art Connection, aims to motivate children of different cultural backgrounds and descent to participate in various international artistic and cultural events.

''Through the productive collaboration between Athens 2004 and the Museum of Greek Children's Art we are promoting the values of the 2004 Olympic Games in a most creative, colorful and spontaneous way. Children can be living symbols and capable ambassadors of the grand Olympic ideal: of brotherhood, cooperation, and equality, as well as a source of optimism and potential,'' Athens 2004 Executive Director Yannis Pyrgiotis said.

Also present at the opening was Museum of Greek Children's Art Director Eleni-Faye Stamati, International Paint Pals Coordinator Linden Longino and U.S. Ambassador's wife Bonnie Miller. The exhibit will take place through March 31.

[27] Education minister announces changes to university-entrance exam system

Athens, 16/03/2004 (ANA)

She said the changes would only apply for those students that were now in the first year of the three-year lyceum, or upper high school, and that nationwide exams for second- and third-years would take place this year as scheduled.

As of next year, formal examinations for second-years will be abolished, while 3rd-year lyceum students will sit exams in nine subjects, as of now.

In the academic year 2005-2006, the number of exam subjects for third-years will be reduced to six instead of nine, while the specific subjects will be decided on in dialogue with teachers.

Commenting on the changes, Yiannakou said the government was not taking anyone by surprise but simply implementing its program, seeking to change policy for exams while at the same time preserving continuity.

She urged parents not to worry, reassuring them that the government will ''respect what is right and exert a major effort for better-quality education''.

Yiannakou said that a bill for the changes in the education system will be tabled in Parliament during May and that Prime Minister Costas Karamanlis will be referring to further issues concerning education after he presents his program.

[28] 'Revolutionary Struggle' group claims responsibility for intended explosion

Athens, 16/03/2004 (ANA)

An unidentified caller phoned the 'Eleftherotypia' daily at 9:00 p.m. Sunday, claiming that an explosive device was due to go off in 35 minutes outside a Citibank branch in Neo Psychico.

Police immediately cordoned off the area, and a search of the bank premises and surrounding area turned up a suspicious satchel next to the bank's entrance on the corners of central Kifissias avenue and Palamas street.

Police bomb disposal experts carried out a controlled explosion, and two sticks of dynamite, a detonator, wire and a clock were found in the remains of the satchel.

Two hours after the controlled explosion, an unidentified caller phoned 'Eleftherotypia' and claimed the makeshift bomb on behalf of the Revolutionary Struggle group.

The group has made only one previous appearance, when it claimed responsibility, by phone, for two bomb blasts in September 2004 at the downtown Athens court complex on Evelpidon street within 20 minutes of each other. A policeman, who was on the scene investigating the first explosion, was slightly injured in the second blast.

[29] PM-Culture minister Karamanlis meets with Mikis Theodorakis

Athens, 16/03/2004 (ANA)

After the one-hour meeting, Theodorakis told reporters that they had a general discussion on cultural matters, noting that Karamanlis was the first Greek prime minister to place emphasis on cultural issues and was interested in hearing the opinions of the people of the sector.

Asked if they had discussed the issue of the Presidency of the Republic, given press speculation on prospective names being mulled for the Presidential election in parliament next year, Theodorakis said that, at 79, his age was ''prohibitive of any discussions concerning the future''

[30] Pavlidis announces development law for the islands

Athens, 16/03/2004 (ANA)

Since last Saturday, the minister has visited several of the Dodecannese islands and met with Dodecannese Prefect G. Maheridis, and Rhodes Mayor G. Yiannopoulos, among others, who expressed their willingness to cooperate with the ministry in order to deal with the islands' problems.

Pavlidis asked for the mayors' proposals regarding island policy which will then be submitted to Parliament for review.

The minister said he would attend the upcoming conference of the Prefectural Council to be held on March 27 on the island of Kos.

[31] Illegal immigrants on Samos

Athens, 16/03/2004 (ANA)

One of the men was admitted to hospital for an appendectomy, while the rest were taken to the local illegal immigrants reception center.

Six of the men were from the Ivory Coast, four were from Mauritania, one was from Afghanistan, and the only woman in the group was from Somalia.

It was as yet unclear whether the illegal immigrants were accompanied by a people-smuggler from the opposite coast.

[32] Public order minister visits fire brigade headquarters

Athens, 16/03/2004 (ANA)

Addressing fire brigade officers, he praised their daring and determination in dealing with the emergencies that arose in the line of duty, after which he had a working meeting with the leadership of the force to discuss security and safety arrangements during the Athens Olympics in August, which the Greek fire brigade will be part of.

According to Markoyiannakis, several members of the force will attend special seminars on providing assistance in the case of a terrorist attack before the summer.

[33] Interior minister pays courtesy visit to Ombudsman

Athens, 16/03/2004 (ANA)

Afterwards, Pavlopoulos said his visit was primarily symbolic, indicating that the Ombudsman was a truly independent administrative authority of crucial importance for reforming the civil service and re-establishing the state.

[34] Publisher Mihalopoulos ordered to stand trial for extortion

Athens, 16/03/2004 (ANA)

According to the ruling, Mihalopoulos is accused of threatening specific individuals with a hit by terrorists "November 17" between 1998 and 2002 for illegal financial gain.

His alleged victims were former Vouliagmeni Mayor Grigoris Kasidokostas, businessman Theodoros Aggelopoulos, businessman Argyris Saliarelis, shipowner Yiannis Latsis and members of his family and Zakynthos Metropolitan Chrysostomos.

Mihalopoulos has already appealed against the order and the case will finally be decided by order of the Appeals Council.

[35] Oil painting of Athens in 1674 acquired by City of Athens Museum

Athens, 16/03/2004 (ANA)

It shows Louis IV's ambassador to Istanbul and his entourage on top of Lycabettus Hill in the foreground, with Athens as it was under Turkish occupation in the background.

The painting is the largest ever painted of Athens, measuring a monumental 250cmX520cm. It was the work of professional painter Jacques Carrey and is a permanent loan to the museum from the Athens National Gallery.

It came to the National Gallery as a permanent loan 30 years earlier but has never been put on show.

According to the museum's curator Stelios Lydakis, the painting is particularly important from a historical point of view because it is topographically accurate, unlike previous views of the city that were imaginary with the exception of a sketch by an anonymous artist from Bonn done in 1670.

[36] House speaker says new Cyprus process means things not going well

NICOSIA 16/03/2004 (CNA/ANA)

Commenting on the same issue, Foreign Minister George Iacovou said the UN Secretary-General's Special Adviser on Cyprus Alvaro de Soto ''deemed that this new process would be more effective,'' adding that the Greek Cypriot side's fundamental principle was to cooperate with the UN and would ''thus try this new process out.''

Both Christofias and Iacovou were speaking after signing the condolences book opened at the Spanish Embassy in Nicosia for the victims of last week's bomb attacks in Madrid.

Christofias said the separate meetings of Cypriot President Tassos Papadopoulos and Denktash with the UN were a message from the UN that ''things are not going well.''

''With the separate meetings the UN are trying to achieve what they have not achieved so far, that is a give-and-take dialogue. If they are to achieve it, this will depend exclusively on the stance of the Turkish side,'' Christofias said.

Commenting on the time lost so far in the talks, Christofias said it was making things more crucial, noting that if things got to the stage when the UN chief would step in to give a solution, ''this would make acceptance even more difficult.''

Referring to the positive response of the Greek Cypriot side to the proposal of the technical committee dealing with the flag of the federal state, Christofias said the matter of the flag was of secondary importance and that the main issue was a Cyprus settlement.

Christofias said that although the settlement would be a painful compromise, it would have to be functional and create the conditions for the next generations to be united and enjoy freedoms and human rights.

He reiterated that the Greek Cypriot side was showing goodwill to reach a viable and functional settlement.

Iacovou said the Greek Cypriot side responded positively to the proposal of the technical committee dealing with the flag of the federal state, adding that the Turkish Cypriot side had not yet replied. He noted however that this was an issue that could wait.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Talks between the two sides began under UN auspices last month and were switched to separate meetings with the UN on Monday. The aim is to reach an agreement that would be put to referenda, the positive outcome of which would enable a reunited Cyprus to join the EU in May this year.

[37] Top UN envoy believes enlarged talks 'unavoidable'

NICOSIA 16/03/2004 (CNA/ANA)

Speaking after his first separate meeting with Cyprus President Tassos Papadopoulos on Monday, following three weeks of direct talks with Turkish Cypriot leader Rauf Denktash, de Soto said he hoped that this procedure would help solve pending issues the two leaders are discussing.

The UN envoy said Sir Kieran Prendergast, UN Under Secretary for Political Affairs, arrives on the island on Tuesday but his program of work has not actually been discussed.

Papadopoulos is due to have another meeting on Tuesday with de Soto.

The UN envoy was due to see Denktash on Monday afternoon.

Responding to questions, de Soto said his meeting was ''useful'' but also noted that he considered the direct talks useful as well.

''They were useful but this one was a useful meeting and I think we may be able to get some more progress in this procedure,'' he added.

He said the give and take process had not yet quite begun because, as he explained, this was his first meeting with Papadopoulos and a first meeting of this kind with Denktash was to follow on Monday afternoon.

Asked what he hoped to achieve by the end of this new process of separate meetings, he replied ''what we would hope to be able to achieve is further moves towards solving the issues that they have before them, as many as possible, before the next stage.''

The UN official said the next stage of the talks, that includes Greece and Turkey was inevitable.

''At this stage yes (it is inevitable), I would say there is a lot of progress being made but I think it is unavoidable that issues would be still pending by March 22 and that we will have to go on to the other one,'' he said.

De Soto said that preparations are in fact being made for the next stage of the negotiations and he had been in consultations with Greece and Turkey about the question of their involvement.

''So we are moving in that direction,'' he added.

De Soto refrained from any comment on the venue of the enlarged talks but confirmed that the UN would like to move off the island in the next week.

''I do not want to say anything definite until formal proposals or invitations are put to the parties,'' he pointed out.

Papadopoulos and Denktash have been engaged in direct talks since February 19 with a view at reaching agreement on a UN proposal for a comprehensive settlement by March 22. If they fail, Greece and Turkey would join in the talks to help conclude a deal but should that attempt fail as well, Kofi Annan would step in to finalize the proposal under discussion, which will then be put to a referendum for the people of Cyprus to decide.

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