Athens News Agency: Daily News Bulletin in English, 05-06-16

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

CONTENTS

[01] PM Karamanlis confers with foreign minister, FinMin, ahead of EU summit

[02] PM Karamanlis to pay working visit to London for talks with British counterpart Blair - Agenda

[03] FinMin Alogoskoufis to discuss EU economy priorities with British counterpart Brown

[04] Finmin briefs President Papoulias on state of economy, planned reforms

[05] Gov't launches counterattack over Papandreou speech to PASOK MPs

[06] Gov't reiterates position on continuing Euro-Constitution ratification process

[07] Defense ministry publicizes details of TOR-M1 anti-aircraft systems deal

[08] Defense minister meets French ambassador to discuss problems with Mirage jets

[09] FM meets with foreign ambassadors to Greece

[10] Federation of Greek Industries president agrees with reforms being promoted by government

[11] Employment in retail sector up 2.8 pct in 1st quarter, yr/yr

[12] Greek banks need to resolve their pension problem, report

[13] Farm council meets Thursday to debate EU subsidies

[14] Work stoppages in public transport on Thursday

[15] Building activity down 0.6 pct in first quarter, yr/yr

[16] Q1 exports up but trade deficit widens

[17] Pharmaceutical sector steadily improving, report

[18] Greek bottled water sector shows favorable growth prospects, report

[19] Decrease in number of unemployed registered with Manpower Employment Organization

[20] Tourism ministry explores possibility of religious tourism

[21] Flexopack reports higher earnings

[22] Euroconsultants to set up financial services firm in Romania

[23] Court rules against creditor bank over forced property sale in penalty rate case

[24] Athens airport wins award for 2004 Olympics operation

[25] Greek business school students win international award

[26] Qatar Airways launches first Athens flight

[27] International biotechnology conference in Athens next month

[28] Stocks rise in late buying spree

[29] Upper gallery to re-open at National Archaeological Museum on Wednesday

[30] Greek seismologists reassure Chile quake will not influence seismic activity in Greece

[31] Army helicopter makes emergency landing for precautionary reasons, crew well

[32] Greek state broadcaster ERT signs memorandum with Turkey's TRT

[33] SYN president comments on issues concerning those with disabilities

[34] New faster train service on Thessaloniki-Istanbul route from July 15

[35] Sprinter Kenteris released after answering doping charges

[36] UN Security Council to adopt resolution on UNFICYP

[37] Congresspersons warn colleagues about direct flights

[38] Political parties note need for dialogue on Cyprus problem

[01] PM Karamanlis confers with foreign minister, FinMin, ahead of EU summit

Athens, 16/6/2005 (ANA)

After the meeting, Molyviatis outlined to reporters the difficulties in the continuation of the ratification procedure for the Euro-Constitution, as well as in the negotiations for the 25-member bloc's budget for the next five years.

"The budget is being reduced, and the countries seeking a share of it are increasing, due to the accession of the 10 new member states, which are poorer," Molyviatis said, noting that "the big problem is how we will seek to preserve our interests and positions, which is very difficult". He added the hope that the negotiations would be completed at the upcoming summit.

Alogoskoufis, in turn, pointed out the difficult political dimensions that have arisen due to the negative results of the recent referenda in France and the Netherlands on the Constitutional Treaty, which he said "influence the negotiation on the EU's fiscal prospects, given that the richer countries are not inclined to accept a Community budget larger than 1 percentage point of GDP, which would mean a substantial reduction vis-a-vis what was in effect to date".

In addition, he said, the enlargement with the 10 new member countries also needed to be financed, stressing that "the cost of enlargement cannot burden the countries of cohesion".

Regarding the prospect of revision of the EU's Common Agricultural Policy (CAP) which Britain seems to be seeking, Alogoskoufis said that "it is extremely difficult for a negotiation that has been completed to be reopened".

[02] PM Karamanlis to pay working visit to London for talks with British counterpart Blair - Agenda

Athens, 16/6/2005 (ANA)

This will be Karamanlis' first visit to 10 Downing Street in his capacity as prime minister.

The agenda of the Karamanlis-Blair talks will focus on European issues, ahead of Britain's assumption of the rotating 6-month EU presidency on July 1.

According to diplomatic sources, Blair will seek Karamanlis' cooperation and support on specific internal EU issues that the British EU presidency intends to advance, including Turkey's European course, on which the British government's policy favors reinforcement of Turkey's European prospect.

An announcement on Wednesday said that a lecture by Karamanlis at the Business School of London's City University has been added to the premier's agenda.

Karamanlis will deliver a lecture on the subject "Looking Ahead after the 2004 Olympic Games" hosted in Athens last August.

Invited to the lecture are academics and members of the financial community.

[03] FinMin Alogoskoufis to discuss EU economy priorities with British counterpart Brown

Athens, 16/6/2005 (ANA)

Alogoskoufis and Brown, whose country takes over the rotating 6-month EU presidency on July 1, will also discuss matters of bilateral interest.

Before his meeting with Brown, Alogoskoufis will also address a conference, organized by the British-Hellenic Chamber of Commerce, on the theme "Greece as a Strategic Partner in SE Europe - Investment Prospects and Business Opportunities".

Alogoskoufis and Greece's development minister Dimitris Sioufas will be the two keynote speakers at the conference, to be held at a central London hotel.

[04] Finmin briefs President Papoulias on state of economy, planned reforms

Athens, 16/6/2005 (ANA)

After the meeting, Alogoskoufis told reporters that the economy was running far better in the post-Olympics period than some had predicted.

He also expressed concern that the French and Dutch rejection of the Euro-Constitution might have negative repercussions on negotiations for the future EU budget at the EU summit in Brussels on Thursday and said that Greece wanted to finalize the issue of community funding from the 4th Community Support Framework (CSF) at this summit.

Main opposition leader foresees 'rout' for PM at EU budget negotiations in Brussels: Addressing main opposition PASOK's Parliamentary group on Wednesday, PASOK leader George Papandreou predicted that the government would be effectively "absent" from negotiations for the EU budget that will begin in Brussels on Thursday, with Prime Minister Costas Karamanlis attending merely to 'make up the numbers' in the family photo after the summit.

He said the premier would depart from Brussels with much less than Greece might have hoped for, while accusing the government of not announcing its goals until the last minute, so that it could present any outcome as a success.

Papandreou said that the government was backing down from the full amount of funding from the EU that had been agreed on under the Simitis government after tough negotiations, thus jeopardizing the future of the country. He said Greece was set to receive 28 billion euros from the new EU budget under agreements made when Simitis was premier, of which the final 3-4 billion euros were agreed during the last night of negotiations.

He also accused the government of recklessly abandoning the Helsinki agreement and of apathy and lack of initiative regarding Turkey's European course.

Analyzing the results of a three-day debate in Parliament for a vote of confidence in the government, Papandreou congratulated party MPs for a positive result.

He said they had managed to dispel the myth that the prime minister was above reproach and had shown the government to lack strategy or a plan.

[05] Gov't launches counterattack over Papandreou speech to PASOK MPs

Athens, 16/6/2005 (ANA)

Roussopoulos said the three-day debate held in Parliament and the vote of confidence in the government had highlighted that, on the one hand, the government was proceeding responsibly to make the changes needed by the country and demanded by the citizens, while the main opposition, on the other hand, was looking on bemused, accepting the need for changes in theory but denying them in practice.

"It is a main opposition that has essentially chosen conservatism and yesterday, turning its back on tomorrow," he added.

While pointing out that the government hinged its policies on the commitments it had made before the Greek people and not on the positions of the main opposition, Roussopoulos said the government was critical of PASOK, nevertheless, for not having carried out initiatives for necessary reforms and changes over a succession of years when it was in government.

Commenting on an MRB opinion poll released on Tuesday, Roussopoulos said the government was satisfied with the results and the governing party's 4.1 per cent lead in the poll, which showed that society accepted the measures taken by the government, while noting that the majority of citizens believed that changes to the pension system were necessary.

During his speech to PASOK's Parliamentary group coordinating committee; Papandreou had congratulated all the deputies of his party who showed "that the government cannot promote reforms but only settlements which are against the social whole."

His speech on Wednesday predicted that Prime Minister Costas Karamanlis would depart from negotiations at an EU meeting in Brussels on Thursday with much less than Greece might have hoped for, while accusing the government of not announcing its goals until the last minute, so that it could present the outcome as a success.

[06] Gov't reiterates position on continuing Euro-Constitution ratification process

Athens, 16/6/2005 (ANA)

The messages sent by French and Dutch voters through their rejection of the treaty should be seen as food for thought, he added.

The spokesman also fielded questions on apparent irregularities seen in the means and assets statements submitted by MPs from 1989-2002, saying that an investigation had revealed specific evidence that had been made public and that the procedure followed and any change in this was a matter for Parliament.

He also underlined the government's continuing determination for a full investigation of the events that led to massive losses for small-time investors on the Athens bourse in 2000, noting that a process was currently underway in the justice system.

[07] Defense ministry publicizes details of TOR-M1 anti-aircraft systems deal

Athens, 16/6/2005 (ANA)

The agreement settles pending issues concerning the main contract and the offset benefits agreement regarding the procurement of the TOR-M1 anti-aircraft missiles systems.

According to the deal, Rosoboron export has assumed the obligation to complete the linking of the TOR-M1s with the country's Unified Air Defense System and workability with the S-300 PMU-1 system over a period of six months.

The Russian side will submit a letter of guarantee by the Russian Vnesheconom bank worth 4.68 million dollars.

Linking and workability components and spare parts, which have arrived at Athens airport months ago, will be received by the Greek side after the final signing of the main agreement's new amendments.

The credit value of offset benefits will increase from 857 million dollars to 1.33 billion dollars.

[08] Defense minister meets French ambassador to discuss problems with Mirage jets

Athens, 16/6/2005 (ANA)

The minister is apparently demanding additional financial guarantees to those existing in the original contract, in the event that the system fails to achieve expected performance, equal to the cost of purchasing and installing a new countermeasures system that will cover the operation demands of the Greek Air force and the public interest.

[09] FM meets with foreign ambassadors to Greece

Athens, 16/6/2005 (ANA)

The focus of the meeting was on the reorganization of the United Nations, including the enlargement and composition of the UN Security Council.

[10] Federation of Greek Industries president agrees with reforms being promoted by government

Athens, 16/6/2005 (ANA)

Kyriakopoulos also said the time has come to change mentality. He added that society agrees and is annoyed by the high cost of living, unemployment and the lack of investments. However, there are reactions to every change capable of leading out of the deadlock, he said.

Referring to the issue of the banks' social security system, the SEB president expressed support for the government's proposals, saying that the budget cannot be burdened, meaning the taxpayers, to enable certain privileged persons to receive double or triple pensions.

He went on to say that the average pension of the Social Security Foundation (IKA) is less than 550 euros and the state must offer guarantees for low pension earners and not those who receive two or three thousand euros a month.

On the question of labor issues, Kyriakopoulos said reactions are excessive since there have been no specific proposals made so far and because dramatic solutions are not expected.

The SEB president also noted that salaries in the public sector are exorbitant compared to the product produced and if there were fewer employees they would receive better salaries.

[11] Employment in retail sector up 2.8 pct in 1st quarter, yr/yr

Athens, 16/6/2005 (ANA)

NSS, in its report said the employment composite index fell 1.9 percent in the first three months of 2005 compared with the last three months of 2004.

The statistics service attributed the year-on-year increase in the employment index to increases of 4.0 percent and 1.3 percent in the food sector and department stores, respectively.

[12] Greek banks need to resolve their pension problem, report

Athens, 16/6/2005 (ANA)

The report said that Greek banks' capitalization in the Athens Stock Exchange totalled 24.9 billion euros last year, up 34.4 percent, with transaction turnover up 71.7 percent in 2004 and pre-tax profits rising to 2.4 billion euros from 2.0 billion euros in 2003, an increase of 19.4 percent.

Kantor Capital said Greek banks employed 77,116 people last year, a figure down 2.0 percent from 2003, with only Piraeus Bank reporting a 9.4 percent increase in its staff.

The report said that most big banks enjoyed adequate capital to support their expansion plans, while a possible securitization of their loan portfolios could further improve their cash flow and capital adequacy. It noted, however, that several banks could raise their provisions after the introduction of International Accounting Standards this year.

With the exception of Societe Generale, the French bank that became the biggest shareholder in Geniki Bank, the Greek banking market was quiet last year, the report said. It noted that the Post Savings Bank was the number one takeover target for big banks, while Novabank and Egnatia Bank could add more value to Geniki Bank and Aspis Bank, respectively.

[13] Farm council meets Thursday to debate EU subsidies

Athens, 16/6/2005 (ANA)

Taking part will be representatives of political parties, deputies, the agricultural university, farm cooperatives, and sector trade unionists, the ministry said in a statement on Wednesday.

[14] Work stoppages in public transport on Thursday

Athens, 16/6/2005 (ANA)

More specifically, trolley employees will stage a two-hour work-stoppage from 1:00 p.m. to 3:00 p.m., the Athens Metro will not be running from 11:00 a.m. to 3:00 p.m., the ISAP train will not be running from 12:00 noon to 3:00 p.m., and the Suburban Railway will not be running from 12:00 noon to 3:00 p.m.

Employees in the public bus network will stage two work stoppages from the commencement of the morning shift to 7:00 a.m. and from 10:00 p.m. to the end of the night shift.

For buses carrying out the routes to and from Athens' Eleftherios Venizelos International Airport, the work stoppages will be from 4:00 a.m. to 7:00 a.m. and from 10:00 p.m. to 12:00 midnight.

The tram network will be operating normally, as the employees have decided not to take part in the strike action.

[15] Building activity down 0.6 pct in first quarter, yr/yr

Athens, 16/6/2005 (ANA)

NSS, in its monthly report said building activity totalled 17,658 permits in the January-March period, or 16.018 million cubic meters in volume.

The Western Macedonia region (-26.7 pct), Northern Aegean (-25.2 pct) and Epirus (-21.9 pct) recorded the biggest percentage quarterly decline, while the Western Greece (10.8 pct), Crete (8.3 pct), Eastern Macedonia-Thrace (6.8 pct) and Attica (3.4 pct) recorded the biggest percentage increases in the first quarter of 2005.

[16] Q1 exports up but trade deficit widens

Athens, 16/6/2005 (ANA)

The trade deficit widened by 5.7% in January-March to total 7,892 million euros; while exports showed a 7.1% rate of growth to total 3,009 million euros, the Panhellenic Exports Association said in a statement.

Citing data from the Greek National Statistics Service, the association noted that the rate of increase in exports totalled 3.3% for the whole of 2004.

Under a calculation of the value of exports in US dollars, the first-quarter figure would have shown a 12.2% increase, the statement said.

Imports in first-quarter 2005 totalled 10,901 million euros, up 6.1% on the same period in the previous year, it added.

[17] Pharmaceutical sector steadily improving, report

Athens, 16/6/2005 (ANA)

The report said, however, that growth rates were showing signs of fatigue, with average annual growth rates slowing compared with a 16 percent growth rate in the period 2001-2004, while profitability fell from 39.5 pct in 2001-2004 to 28.8 percent last year.

The sub-category of medical-laboratory equipment enjoyed the higher profit margin, around 21.5 percent in 2004, while pharmaceutical enterprises reported lower operating profit margins (6.6 percent in 2004 from 7.0 percent in 2003) due to higher sales costs, the report said.

Debt by state hospitals and pension funds remain a major problem for the sector, the report by Hellastat noted.

It said that the pharmaceutical sector remained highly concentrated in the last four years, with the 20 largest enterprises controlling 77-78 percent of the market.

[18] Greek bottled water sector shows favorable growth prospects, report

Athens, 16/6/2005 (ANA)

The sector grew an average annual rate of 10 percent (measured in volume) in the 1995-2004 period, ICAP said. The domestic bottled water sector grew around 11.3 percent in 2004 from the previous year, despite lower than expected tourist arrivals in the country. The natural mineral bottled water category accounted for 71.2 percent of the domestic market in 2004, followed by table water 24.3 pct and gas water 4.5 pct.

The survey said the sector was characterized by a high grade of concentration, controlled by a small number of enterprises, leading to intense competition in the market. Bottling companies are constantly improving their quality and marketing strategies to gain more market share.

Sales of bottled water are supported by a prevailing trend for a more healthy diet in Greece, and by warm weather in the period from April to October around the country.

[19] Decrease in number of unemployed registered with Manpower Employment Organization

Athens, 16/6/2005 (ANA)

The number of registered unemployed was 461,386 in May 2005 compared to 511,013 in May last year, meaning an annual decrease in the number of unemployed of 49,627 people (about 9.7 percent).

According to data recorded in OAED's new computerized system, 9.82 percent, meaning 45,313 people, are not seeking work and, consequently, those seeking employment amounts to 461,073 people.

[20] Tourism ministry explores possibility of religious tourism

Athens, 16/6/2005 (ANA)

The minister and the church representatives agreed to create a joint committee charged with examining the potential of capitalizing on the country's religious elements.

[21] Flexopack reports higher earnings

Athens, 16/6/2005 (ANA)

Earnings after tax and minorities totalled 465,000 euros, showing a 14.3% increase on the first quarter of 2003, the company said in a statement.

Consolidated sales were 7,145,000 euros, up 21.2%, the statement said.

The parent company reported first-quarter earnings of 6,505,000 euros, marking a 23.7% increase, it added.

[22] Euroconsultants to set up financial services firm in Romania

Athens, 16/6/2005 (ANA)

Also due for creation in Romania will be an "incubator" for about 15 high technology companies. The firm should be launched in September, the executives said.

The consultancy and technology ventures are part of an alliance between Euroconsultants and Demco SA.

[23] Court rules against creditor bank over forced property sale in penalty rate case

Athens, 16/6/2005 (ANA)

In a landmark ruling, the Athens Court of First Instance said the bank was not legally entitled to arrange a forced sale by public auction as it had charged penalty rates on the debt, which stemmed from a joint bank account held by the company that was later closed.

Amended recently following years of complaints by debtors was a harsh law on the terms of overdue penalty rates in debt cases that routinely involved the sale of foreclosed property at public auction.

[24] Athens airport wins award for 2004 Olympics operation

Athens, 16/6/2005 (ANA)

The recently built airport was cited under in the infrastructure & environment category for demonstrating operational excellence during the 2004 Olympic and Paralympic Games in operational planning, infrastructure, passenger & airline services, and environmental protection against increased airline activity.

Also acknowledged was the facility's operational and business environment, with long-term benefits for airlines and other users.

[25] Greek business school students win international award

Athens, 16/6/2005 (ANA)

The MBA students won first prize for a business plan on the creation of a new company, Nanochem SA, which would employ nanotechnology to manufacture a device for placement on surfaces that would automatically keep them clean and clear.

The award was made by the Stockholm School of Entrepreneurship.

[26] Qatar Airways launches first Athens flight

Athens, 16/6/2005 (ANA)

Employed for the route will be an Airbus A320 in a two-class configuration of 12 seats in business and 132 in economy, the airline said in a statement.

"We expect to see excellent traffic from the Middle East, Indian sub-continent, Asia and Africa feeding into our flights to Athens via Doha. And similarly, we look forward to welcoming passengers out of Greece to connect onto our extensive network of flights from Doha," said Qatar Airways' chief executive officer, Akbar Al Baker."

[27] International biotechnology conference in Athens next month

Athens, 16/6/2005 (ANA)

The country's activity in the sector has so far been slight in comparison with other European Union countries in terms of investment capital and technology transfer.

On the sidelines of the conference, major European companies in the sector will display their products and services.

[28] Stocks rise in late buying spree

Athens, 16/6/2005 (ANA)

The Athens general share index closed at 3,081.33 points, marking a rise of 1.21%. Turnover was 167.7 million euros.

The FTSE/ASE-20 index for high capitalization shares ended 1.45% up; the FTSE/ASE-40 for medium cap stocks closed 1.05% higher; and the FTSE/ASE-80 for small cap shares finished 0.08% down.

Of stocks traded, advances led declines at 149 to 102 with 82 remaining unchanged.

[29] Upper gallery to re-open at National Archaeological Museum on Wednesday

Athens, 16/6/2005 (ANA)

The upper galleries in the museum, built during WWII, had been shut down for renovation and repair after suffering extensive damage in the earthquake that devastated Athens in 1999.

According to Deputy Culture Minister Petros Tatoulis, the new section is the "showpiece" of the museum, as well as having been repaired in a phenomenally short space of time by the standards of international museums.

"By contrast, repairs to a much smaller space in New York's Metropolitan Museum will take a total of six years," he noted.

The cost of repairing and redesigning the gallery space came to 9,950,845 euros, while the cost of re-exhibiting the museum's collection was 5,700,000 euros, he said.

The museum has also received an additional three million euros to complete renovation and repair work on its storage space in the basement and to redesign other important exhibitions, such as the Vlastos collection, which will be put on the display in the unused areas of the Numismatic Museum.

The museum's collection of bronzes numbers 1,670 items, its pottery and minor arts collection numbers 2,400 items and the sculpture collection 1,000 items.

Among the museum's future plans is a major temporary exhibition on "Clothing and Cosmetics in Antiquity", envisaged for 2006.

The National Archaeological Museum in Athens boasts one of the richest collections of original ancient artifacts in bronze in the world, including the statues of Poseidon of Artemisia, the Youth of Antikythera and the Boy from Marathon. Also considered important worldwide is the pottery and minor arts collection, with its huge selection of vases.

The Thera gallery is unique, with its huge frescoes dating from the 16th century B.C. found at Akrotiri on Santorini, with their stunning colors perfectly preserved by the ash produced by a massive volcanic explosion that destroyed the flourishing civilization that lived on the island at the time.

[30] Greek seismologists reassure Chile quake will not influence seismic activity in Greece

Athens, 16/6/2005 (ANA)

George Stavrakakis, director of the Athens Observatory's Geodynamic Institute, noted that naturally earthquakes of that magnitude influenced neighboring areas, "but in no instance can we say that an earthquake in Chile can influence the seismic activity in Greece".

"As we have stressed many times, Greece is a seismically active country," Stavrakakis said, and as such the State was always prepared to confront not only an earthquake, but any natural phenomenon, and stressed again that there was no need for alarm or concern due to the Chile quake.

[31] Army helicopter makes emergency landing for precautionary reasons, crew well

Athens, 16/6/2005 (ANA)

The AB-206 army helicopter made the emergency landing shortly after 10:00 a.m. after its instrument panel gave indications of a possible engine malfunction.

The helicopter was carrying out a test flight following the completion of a regular 100-hour inspection.

The three-member crew was well and safe, and an Aviation Unit mobile unit was en route to the area to inspect the helicopter.

[32] Greek state broadcaster ERT signs memorandum with Turkey's TRT

Athens, 16/6/2005 (ANA)

The agreement was signed in Ankara by ERT's president and managing director Christos Panagopoulos and TRT general director Senol Demiroz, following negotiations between delegations of the two broadcasting organizations in Athens.

The memorandum provides for the co-production, sale and exchange of television programs, exchange of technical equipment, and participation in broadcasting festivals and cultural events and staff training programs.

It was preceded by the co-production of a television spot against soccer violence that coincided with a world cup qualifying match between Greece and Turkey, which was made as a gesture of the will to cooperate and was broadcast simultaneously in the radio and TV networks of both countries.

Among the proposed co-productions by ERT and TRT are programs on Greek and Turkish cooking, on olives and olive oil, issues promoting trade and economic cooperation and joint productions for the coverage of natural disasters like earthquakes, etc.

[33] SYN president comments on issues concerning those with disabilities

Athens, 16/6/2005 (ANA)

His comments were made after meeting with the President of the Greek Confederation of Individuals with Disabilities, Mr. Vardakastanis.

Alavanos said that part of the problem is due to an antiquated legislative framework and the fact that Greece lags significantly behind its European peers when it comes to matters of social cohesion.

Additionally, he said that another major issue is education and special education for those with disabilities. Alavanos also noted that in Greece a significantly higher percentage of those with disabilities are unemployed compared with their peers in other countries.

[34] New faster train service on Thessaloniki-Istanbul route from July 15

Athens, 16/6/2005 (ANA)

The FILIA -TOSTLUK EXPRESS Thessaloniki-Istanbul route will take about 11 hours and 30 minutes, that is, three hours faster than at present, and will make stops at Kilkis, Rodopi, Serres, Drama, Xanthi, Komotini and Alexandroupoli.

As announced by OSE on Wednesday, the passengers who will travel on the air-conditioned and comfortable train will depart daily from Thessaloniki and Istanbul at 8 p.m. and arrive the next morning in Istanbul/Thessaloniki, respectively.

[35] Sprinter Kenteris released after answering doping charges

Athens, 16/6/2005 (ANA)

Kenteris, a gold medalist in the 200m at the Sydney Olympics, told the magistrate that he was innocent of the charges against him, which include avoiding three doping tests and faking a motorbike accident to avoid being tested. He had received two extensions to prepare his testimony in past weeks.

Kenteris and his training partner Katerina Thanou, an Olympic silver medalist in Sydney and one of the top female sprinters in Greece, are both accused of obstructing a doping test and the moral instigation of others to commit breach of duty and provide false attestations.

The charges relate to their failure to appear for scheduled doping tests in Tel Aviv, Chicago and Athens, as well the events linked to an alleged motorbike accident in Glyfada that sent the two athletes to hospital on the eve of the Athens Olympics.

Both athletes pulled out of the Athens Games at the last minute to avoid further embarrassment for Greece and are currently banned from competing by the International Association of Athletics Federations (IAAF), pending the outcome of an appeal against a ruling that cleared the two athletes of wrongdoing in March.

According to a Greek athletics commission they were the victims of incorrect notification procedures. The IAAF disagrees and has lodged an appeal with the Court of Arbitration of Sport (CAS). If the Greek commission's ruling is overturned, the athletes face a two-year ban.

Also accused in the case is the former coach of the two athletes Christos Tzekos, who faces the same charges as well as outstanding charges of violating the law on controlled substances.

[36] UN Security Council to adopt resolution on UNFICYP

UNITED NATIONS, 16/6/2005 (CNA/ANA)

The adoption of the report through a resolution is expected to be unanimous. Nevertheless some members may take the floor to explain their vote.

In the final draft resolution to be tabled for adoption by the Council and agreed on Tuesday, the Council reaffirms all its relevant resolutions on Cyprus, in particular resolution 1251 and subsequent resolutions.

Diplomatic sources said that there is a more extended reference to ''the two sides'' in this draft resolution than in the previous ones, while the tendency for further decrease of the force and its amendment to an observers force is obvious.

The draft resolution calls on the Turkish Cypriot side and Turkish forces to restore in Strovilia the military status quo which existed there prior to June 30, 2000.

After welcoming the report of the Secretary General of June 6, 2005 on the UN operation in Cyprus, the Council takes note with satisfaction of the lifting of restrictions of movement of UNFICYP by the Turkish Cypriot side and the Turkish forces and takes note in this connection that UNFICYP enjoys good cooperation from both sides.

It welcomes the fact that over seven million crossings by Greek Cypriots to the north and Turkish Cypriots to the south have taken place, and encourages the opening of additional crossing points.

The Council expresses concern at the increase in crime across the cease-fire line and urges both sides to increase cooperation in order to address this issue.

Furthermore it welcomes all efforts to promote bicommunal contacts and events, including, inter alia, on the part of the UN, and urges the two sides to promote further bicommunal contacts and to remove any obstacles to such contacts.

The Council notes that the government of Cyprus is agreed that in view of the prevailing conditions in the island it is necessary to keep UNFICYP beyond 15 June 2005 and takes note of the assessment of the SG that the security situation on the island continues to be stable and the situation along the Green Line remains calm, and, nonetheless, that there were problems in a few sensitive areas, and welcomes in this context the further decrease in the overall number of incidents involving the two sides.

It reiterates its call to the parties to assess and address the humanitarian issues of missing persons with due urgency and seriousness, and welcomes in this regard the resumption of the

activities of the Committee on Missing Persons since August 2004.

The draft resolution welcomes the Secretary-General's intention to keep operations of UNFICYP under close review, continuing to take into account developments on the ground and the views of the parties and to revert to the Council with recommendations for further adjustments as appropriate to UNFICYP' mandate, force levels and concept of the operation once he judges that sufficient time has passed since the implementation of UNFICYP's new concept of operation to make this assessment.

It echoes the Secretary-General's gratitude to the Government of Cyprus and the Government of Greece for their voluntary contributions to the funding of UNFICYP and his request for further voluntary contributions from other countries and organizations.

[37] Congresspersons warn colleagues about direct flights

Co-chairpersons of the Hellenic Caucus at the US Congress Michael Bilirakis and Carolyn Maloney have sent a letter to Congress members, warning them that direct flights to the Turkish occupied areas of Cyprus are illegal.

In their letter, the two congresspersons note that direct flights to the Turkish occupied areas of Cyprus by members of the Congress and others violate UN Security Council resolutions and the Chicago Convention.

''The Republic of Cyprus' sovereignty is well established under both international law and convention. Cyprus' sovereignty is confirmed by a number of UN resolutions, including UN Security Council resolutions 541 (1983) and 550 (1984). These Security Council resolutions remain in effect,'' they point out.

Bilirakis and Maloney furthermore note that the Republic of Cyprus has not authorized flights into the occupied airports and that ''international law mandates that flights cannot enter a country's airspace without the consent of the sovereign government.''

The Congress members are warned that ''flights to the occupied airports also raise serious human rights and property rights issues,'' since the airports in occupied Cyprus ''are located on property that was expropriated from its lawful owners during the Turkish invasion.''

Flights into the occupied airports are not necessary. The Republic of Cyprus encourages visits to the occupied areas in a manner that does not create insurmountable legal issues,'' Bilirakis and Maloney add.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third.

[38] Political parties note need for dialogue on Cyprus problem

NICOSIA, 16/6/2005 (CNA/ANA)

in order to reach a comprehensive settlement of the Cyprus problem.

The two delegations, led by DIKO's Deputy President Nicos Kleanthous and DP President Serdar Denktash, agreed to disagree on certain aspects of the Cyprus problem but affirmed that they would continue the dialogue.

They also exchanged views on the possibility of resuming talks that could contribute towards this direction.

In statements after the meeting, Kleanthous said this was the first because ''we just managed to cross the Green Line without any formalities or showing any documents.''

He added that it was a return visit, which he described as ''very fruitful,'' noting that ''we exchanged views regarding the possibility of starting the dialogue and exchanged views about mechanism and procedures that might contribute to this direction.''

We will continue this dialogue because we believe that we can contribute to not only to the solution'' of the Cyprus problem but can also ''create the proper political climate we need if we want to be successful,'' Kleanthous said.

Denktash said they had a ''fruitful and constructive discussion,'' noting that they ''both used our right to agree not to agree on certain issues.''

''What matters is the dialogue. To promote the dialogue we raised all formalities. We believe that through this dialogue we will be able to understand the needs and fears of the other which will help us to find ways of settling our daily problems first and that will lead us to a comprehensive settlement,'' he added.

Denktash noted that Greek Cypriot political parties ''can come to our side without any formality at all and this is for all political parties in the Greek side.''

Replying to questions about the Cyprus problem, Denktash said ''it is very important to have no international interference, it is us who will be solving the problem, us who will be living together side by side after the settlement we should understand our needs and fears.''

Referring to the presence of Turkish troops on the island, Denktash said that as long as there is no Cyprus settlement, the troops would remain for the security of the Turkish Cypriots.

A DP delegation had visited the offices of DIKO in Nicosia about a year ago.

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