Athens News Agency: Daily News Bulletin in English, 07-10-17

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

CONTENTS

[01] Cabinet discusses foreign policy issues, EU Reform Treaty

[02] Gov't on foreign policy issues

[03] KKE on developments in the Balkans

[04] Alavanos calls for EU-wide referenda on EU Reform Treaty

[05] Alavanos on FYROM name issue, heating subsidies

[06] Creation of European Protection Policy Apparatus

[07] Presentation of report on immigration legislation in EU

[08] International Day against Poverty

[09] Greek, Cypriot justice ministers discuss issue of foreign prison inmates

[10] FinMin addresses Greek Industries Federation General Council

[11] SEB president on economy, growth

[12] Deputy FinMin Antonis Bezas on tax evasion

[13] FM Bakoyannis addresses 2007 Euro-Mediterranean Summit of ESCs

[14] Greek FDI soared to 5.363 bln US dollars in 2006, UNCTAD report

[15] Greek inflation up to 2.9 pct in September, Eurostat

[16] Union again demands state funding pledge as condition for 'dialogue' on social security

[17] PASOK spokesman on heating fuel

[18] Marfin Popular Bank eyes acquisition in Russia

[19] Helexpo jewellery exhibition in Athens in 2008; 'Kosmima' starts on Oct. 19

[20] Creta Plastics to issue 13 million euros bond loan

[21] Jumbo reports 18 pct increase in Q1

[22] ASE seeks to strengthen exposure in foreign markets

[23] Greek stocks end 1.57 pct lower

[24] Greek bond market closing report

[25] ADEX closing report

[26] Foreign Exchange Rates - Wednesday

[27] 'El Greco' exhibition opens in Athens

[28] Free ANA-MPA news items on webpage

[29] Theological Dialogue meeting ends in Ravenna, Italy

[30] Former U.S. president Bush telephones Archbishop Christodoulos

[31] French Ambassador to visit Kalamata

[32] Bomb hoax at Civil Protection service headquarters

[33] Thessaloniki Mayor to visit Melbourne

[34] Fair on Wednesday

[35] Cypriot President makes new proposal for implementation of UN-brokered agreement

[36] Cypriot FM refers to negative recent developments on Cyprus issue Politics

[01] Cabinet discusses foreign policy issues, EU Reform Treaty

After the meeting, Foreign Minister Dora Bakoyannis said that she had briefed the cabinet in detail on the progress made on the Reform Treaty and said that this was an issue "heading for a happy ending".

She predicted that the many months of work leading to the Reform Treaty would be approved by EU leaders at the upcoming informal summit in Lisbon, saying that it would allow Europe to turn a new page with the treaty in force.

"We hope that this will happen before the end of the year, so that 2008 will be the year for the ratification of the new European Reform Treaty and the start of this new page, which will essentially be completed with the European elections of 2009," the minister said.

Another issue addressed during the meeting was Greece's dispute with the Former Yugoslav Republic of Macedonia (FYROM) over the latter's name and the results of her talks with EU foreign policy chief Javier Solana regarding FYROM on Monday, Bakoyannis reported.

"Apart from this, our positions on the FYROM issue are known and we have no new developments," she added.

The foreign minister also clarified that convening a council of political party leaders had not been discussed by the cabinet:

"The Greek side has made clear that what it wants is to find a jointly acceptable solution, a mutually acceptable name, one that will allow both countries to set their relations on a new path and enter a better period," Bakoyannis stressed.

Apart from the above, she added, the meeting on Tuesday focused on Kosovo and other issues of regional interest, in addition to a series of issue concerning Greek foreign policy whose support required close cooperation with the rest of the government.

[02] Gov't on foreign policy issues

Responding to a question on any new developments concerning the likelihood of a meeting of political leaders, Roussopoulos stated that nothing has changed, adding that it is self-evident that both the prime minister and the foreign minister are at the disposal of political party leaders wishing to receive a further briefing.

[03] KKE on developments in the Balkans

"The developments which also determine the future role of the Former Yugoslav Republic of Macedonia (FYROM), are not related with its name, but with the independence of Kosovo which is jointly being promoted by the U.S. and the European Union, as well as with NATO's expansion," the KKE said and called on the government "to stop its support and to withdraw its signature from the EU's decisions which promote this dangerous for the peoples of the Balkans plan."

The KKE underlined that "the government, also backed by the other political parties, attempts to hide the dangerous developments in the Balkans, restricting the matter only to the name of FYROM. This constitutes a disorientation of the people and offers good services to the plans of the forces of imperialism, which through their antagonism create protectorate states in our region."

The KKE stressed that "the people must not allow the repeat of the mass disorientation, which, with the responsibility of the New Democracy (ND), (main opposition) PASOK, Coalition of the Left (Synaspismos) leaderships and of other forces, went through in 1992, when the dissolution of Yugoslavia and the war against it were being planned ."

[04] Alavanos calls for EU-wide referenda on EU Reform Treaty

Alavanos made it clear that SYRIZA is opposed to the new treaty, which is expected to be ratified by the informal EU summit in Lisbon next Thursday, while he accused the government of failing to inform the public or Parliament on this issue.

According to SYRIZA's leader, the prime minister "has no moral right to sign a joint communique of the 27 [EU member-states] because there has been no discussion, no briefing, neither of the people nor, even more importantly, of the Greek Parliament regarding the new text of the EU Constitution."

According to Alavanos, the entire process took place behind closed doors between legal experts and representatives of governments, in conditions of absolute untransparency that were far from citizens and national Parliaments.

Regarding the contents of the Reform Treaty, Alavanos pointed out that this was actually merely a summary of the earlier European Constitutional Treaty that had already been rejected by French and Dutch voters in separate referenda.

He stressed that no change and no new European Treaty, Constitution or 'mini-Constitution' could be formulated and approved without the participation of national Parliaments, the European Parliament and the citizens of the EU.

[05] Alavanos on FYROM name issue, heating subsidies

This name should contain the term 'Macedonia' and be mutually acceptable to the two sides, he added, while noting that the issue of FYROM's name was not a central foreign policy issue for Greece.

On domestic issues, meanwhile, he expressed his party's support for subsidised heating for those that would have trouble covering high heating costs, such residents in many areas of northern Greece or in poor districts of large cities.

Regarding pension system reform, Alavanos said the central issue was to get the state and private sector to pay outstanding debts to social insurance funds, after which the system would present a much less worrying picture than it did at present.

[06] Creation of European Protection Policy Apparatus

The promotion of the idea by former Commissioner Michel Barnier on the creation of a "European Protection Policy Apparatus" in cases of natural disasters constitutes one of the main priorities of the European Economic and Social Committee, as was stressed by its president, Dimitris Dimitriadis, during a press conference here on Tuesday.

Dimitriadis said that, following the recent disastrous wildfires in Greece, the need for the creation of a European Protection Policy Apparatus that will coordinate existing European forces with the aim of tackling emergency situations and natural disasters immediately has been highlighted even more.

He added that the creation of such an Apparatus is agreed upon by the Commissioner responsible for regions, Danuta Hubner, however, certain member-states appear to have doubts.

[07] Presentation of report on immigration legislation in EU

In Greece, the results of the report were presented at the British Council by the director of the foundation and the director of the "Greek Watch on Racism and Xenophobia", Miltos Pavlou.

This year's indicator, concerning 28 countries and including 130 political fields and practices affecting the lives of immigrants, focused on the legislation and immigrant integration policies. The indicator was produced by the participation of 21 scientific centres and 56 experts from the countries.

Greece is at the average of EU countries with regard to legislation against discrimination. In addition, Greece is again at the average concerning the rights of immigrants resulting from the prolonged residence status.

On the question of public speech at the European Parliament for immigrants, Greece has the third best position after Sweden and Denmark.

[08] International Day against Poverty

A characteristic effect of the "new economy" in Greece is the transfer of major corporations' factories to former communist countries having a low labour cost.

Today, the richest 1 percent of the world's population (inhabitants of Europe and the United States) control more than 40 percent of the world's wealth and the richest 10 percent has 85 percent of the world's wealth. At the same time, the poorest 50 percent has almost 1 percent of the world's wealth.

[09] Greek, Cypriot justice ministers discuss issue of foreign prison inmates

According to the announcement, foreign prison inmates in Greece have reached 42 percent of the total number of inmates all over the country, while in Cyprus this figure is about 40 percent.

Also noted during the meeting was the unwillingness of certain countries in the Balkans and central Europe to receive their fellow countrymen in their own prisons to enable them to serve their prison terms there.

The two ministers agreed to assume joint initiatives with specific proposals to the European Union and the Council of Europe. The creation of a joint work group between the two ministries was also decided for joint pressure and solution policies for the problem to be shaped at European level.

Speaking after the meeting, Hatzigakis said that "we had an extensive discussion with the justice and public order minister of Cyprus. The discussion was extended to cooperation issues of the two countries. An issue that constitutes a longstanding steadfast policy of both governments."

Financial News

[10] FinMin addresses Greek Industries Federation General Council

The minister added that in this context, the government is also aiming at the further strengthening of development, particularly in the countryside, with the effective completion of the 3rd Community Support Framework (CSF) and the effective utilisation of the 4th CSF (National Strategic Reference Framework for 2007-2023).

He reminded that the implementation of the reformist programme permits the continuation of fiscal restructuring with the simultaneous preservation of high growth rates, adding that the growth rate for 2008 as well is expected to be 4 percent, also in accordance with the predictions of the Stability and Development Programme.

Government policy, Alogoskoufis said, is responding in an effective way to the challenges facing the country's economy, while at the same time opportunities to strengthen the country's role as the business and economic centre of southeastern Europe are being utilised.

Alogoskoufis stressed that the performances and prospects of the real economy are positive since over the past three and a half years development has reached 4 percent, the unemployment rate is decreasing, thousands of new jobs are being created and capital is flowing in, resulting in investments opportunities created being utilised.

"This good course is expected to be continued in the coming years as well," the minister said.

Alogoskoufis also referred to tax reform and the decrease in tax rates for private individuals and legal entities of public law and to the achievements regarding the decrease in the deficit and in the public debt.

SEB President Dimitris Daskalopoulos said on his part that "SEB has supported and will continue to support the reforms. It views them as a one-way road leading to a better tomorrow for all of us."

[11] SEB president on economy, growth

"The business community looks forward to the effective promotion of those changes that will lead to social progress and to growth and will bring a better future for all. We cannot remain complacent at a time when the world is changing and forging ahead. I believe that our society is beginning to realise that reforms are necessary because they are in the interests of all of us," Daskalopoulos said.

[12] Deputy FinMin Antonis Bezas on tax evasion

Bezas made his statement during the initial discussion on the draft law on combatting tax evasion at the Parliamentary Economic Committee.

The deputy minister further said that no government inconsistency exists regarding announcements on the taxing of heating and diesel oil, adding that the government did not present details of the new system since it must be preceded by dialogue.

"Arrangements will take effect as of 1/1/2008 and will provide security valves for cracking down on smuggling and for safeguarding public interest," he said.

[13] FM Bakoyannis addresses 2007 Euro-Mediterranean Summit of ESCs

"We must make efforts so that the growth and the enlargement of our economies to be translated also into an increase of our citizens' standard of living, the promotion of employment, to secure a future of greater prosperity for as many people as possible," Bakoyannis said.

"To reduce the asymmetries between the two sides of the Mediterranean and to promote the Barcelona spirit, it is now necessary to give emphasis to the strengthening of social cohesion in the region's states, something which has not particularly developed until today," she added.

The foreign minister called on the delegates, whom she called "authentic expressers of the society of citizens in the European Union but also in the southern Mediterranean," to continue "the fruitful dialogue for the effective handling of the common challenges which the region of the Mediterranean faces."

Bakoyannis also described as "a great challenge," the matter of immigration between the two sides of the Mediterranean and said that "the only effective handling is the collective and coordinated action," giving emphasis on the combating of the causes.

She also referred to the need for the common confrontation of the phenomenon of climate change, the consequences of which "we very recently lived in Greece in an intense and tragic way."

[14] Greek FDI soared to 5.363 bln US dollars in 2006, UNCTAD report

The report also said that Greek enterprises directly invested 4.167 billion US dollars abroad in 2006, up from 1.451 billion in 2005 and 1.029 billion in 2004, ranking the country 12th in the EU-25.

Overall, Greece improved its position, ranking 114th in the global ranking of 141 countries last year, up from 126 in 2005 and 123 in 2004, in the Inward FDI Performance Index. Greece also improved its positions in the Outward FDI Performance Index, ranking 42nd in 2006, from 57th in 2005 and 52 in 2004.

A total of 28 foreign direct investments (greenfield) were made in Greece last year, exactly the number of 2005, while Greek enterprises initiated 50 new investment projects abroad, up from 39 in 2005. Multinational parents based in Greece totaled 240 in 2005, while foreign subsidiaries based in Greece totaled 790.

Total stock of foreign investments in Greece totaled 37.009 billion US dollars in 2006, up from 14.113 billion in 2000 and 5.681 billion dollars in 1990, while the total stock of Greek enterprises abroad totaled 17.521 billion US dollars in 2006, up from 6.094 billion in 2000 and 2.882 billion in 1990.

Foreign direct investments inflow accounted for 9.0 percent, while foreign investments outflow for 7.0 percent of fixed gross capital investment in the country (up from 1.1 pct and 2.7 pct, respectively, in 2005). The value of total foreign investment stock in Greece accounted for 15.1 pct of GDP in 2006, up from 12.2 pct in 2000 and 6.6 pct in 19990.

The World Investment Report said a jump in foreign investments, both incoming and outgoing, reflected a boom in cross-border merger and acquisitions in 2006, an international trend which affected an increasingly globalised Greek economy.

Foreign Direct Investments flows totaled 1.3 trillion US dollars last year, up 38 percent from 2005, the report said.

[15] Greek inflation up to 2.9 pct in September, Eurostat

Malta (0.9 pct), Denmark (1.2 pct) and Holland (1.3 pct) recorded the lowest inflation rates in September, while Latvia (11.5 pct), Bulgaria (11.0 pct) and Estonia (7.5 pct) recorded the highest inflation rates.

The inflation rate rose in 24 EU member-states, it fell in Hungary and was unchanged in Italy. There were no figures for the United Kingdom.

[16] Union again demands state funding pledge as condition for 'dialogue' on social security

"If we agree to this, then, and only then, can we proceed," GSEE president Yiannis Panagopoulos said on the sidelines a political party event organised by five union presidents under their capacity as members of main opposition PASOK party's national council.

[17] PASOK spokesman on heating fuel

"The government's first month should not surprise any one. The government is really consistent with itself. What it promised it will do, for example, the combating of tax evasion in heating fuel, it attempts not to do, it continuously postpones it."

[18] Marfin Popular Bank eyes acquisition in Russia

In an announcement to the Athens Stock Exchange, Marfin Popular Bank said it would inform investors over its moves in the Russian market in a timely fashion.

[19] Helexpo jewellery exhibition in Athens in 2008; 'Kosmima' starts on Oct. 19

From October 19-22, it will host in Thessaloniki, central Macedonia, the 22nd international exhibition "Kosmima".

Helexpo's new exhibition in Athens, titled "Kosmima Exclusive", will be hosted at the installations of Helexpo Palace in Maroussi, with the participation of creators and businesses from Greece and abroad.

Taking part in the 22nd Kosmima in Thessaloniki will be 214 exhibitors from Greece and another nine countries, confirming its strong international character.

[20] Creta Plastics to issue 13 million euros bond loan

[21] Jumbo reports 18 pct increase in Q1

Jumbo said it expected its first shop in the Balkans to begin operations by Christmas in Sofia, Bulgaria, paving the way for the opening of two more shops in the neighbouring country.

The board will ask a general shareholders' meeting to approve a plan to pay a 0.32 euros per share dividend to shareholders, up 39 percent from last year.

[22] ASE seeks to strengthen exposure in foreign markets

The congress, bringing together 50 of the 54 members of the Federation, voted in favour of extending the term of its current board for another year. The congress also approved the applications by the Stock Markets of Amman, Jordan and Jasdaq, Japan to become full members of the Federation.

[23] Greek stocks end 1.57 pct lower

All sectors ended lower with the Utilities (2.74 pct), Technology (1.94 pct) and Banks (1.86 pct) suffering the heaviest percentage losses of the day. The Big Cap index fell 1.73 pct, the Mid Cap index ended 0.95 percent lower and the Small Cap index dropped 1.11 percent.

Everest (7.80 pct), Microsystems (4.60 pct) and Tria Alpha (4.11 pct) were top gainers, while Hatzikraniotis (6.42 pct), Pairis (6.16 pct) and Klonatex (6.06 pct) were top losers.

Broadly, decliners led advancers by 206 to 48 with another 40 issues unchanged.

Sector indices ended as follows:

Insurance: -0.40%

Industrials: -0.46%

Commercial: -0.61%

Construction: -1.54%

Media: -1.09%

Oil & Gas: -1.77%

Personal & Household: -0.84%

Raw Materials: -1.23%

Travel & Leisure: -0.62%

Technology: -1.94%

Telecoms: -1.40%

Banks: -1.86%

Food & Beverages: -1.78%

Health: -1.53%

Utilities: -2.74%

Chemicals: -0.92%

Financial Services: -0.61%

The stocks with the highest turnover were Bank of Cyprus, National Bank, OTE and DEH.

Selected shares from the FTSE/ASE-20 index closed in euros as follows:

Alpha Bank: 24.92

ATEbank: 4.02

Public Power Corp (PPC): 27.44

HBC Coca Cola: 40.02

Hellenic Petroleum: 11.34

Emporiki Bank: 20.28

National Bank of Greece: 44.60

EFG Eurobank Ergasias: 26.00

Intralot: 29.60

Cosmote: 23.82

OPAP: 28.02

OTE: 25.82

Titan Cement Company: 34.32

[24] Greek bond market closing report

In the domestic interbank market, interest rates moved higher. National Bank's overnight rate rose to 4.05 percent from 4.02 pct on Monday, the two-day rate was 4.05 percent, the one-month rate was 4.20 percent and the 12-month rate 4.70 percent.

[25] ADEX closing report

Volume in futures contracts on the FTSE 20 index totaled 7,830 contracts, worth 107.223 million euros, with 34,076 open positions in the market, while on the FTSE 40 index volume was 488 contracts worth 16.392 million euros, with 1,756 open positions.

Volume in futures contracts on equities totaled 11,671 contracts worth 21.663 million euros, with investment interest focusing on Marfin Popular Bank's contracts (1,567), followed by Marfin Investment Bank (898), OTE (1,376), PPC (1,310), National Bank (940), Intracom (1,019) and ATEbank (417).

[26] Foreign Exchange Rates - Wednesday

U.S. dollar 1.426

Pound sterling 0.702

Danish kroner 7.512

Swedish kroner 9.227

Japanese yen 166.49

Swiss franc 1.688

Norwegian kroner 7.727

Cyprus pound 0.588

Canadian dollar 1.398

Australian dollar 1.605

General News

[27] 'El Greco' exhibition opens in Athens

"Culture is the bridge linking people in space and time in a common course. It is the strongest instrument which we dispose in the continuous struggle for the final and definite substitution of conflict by cooperation, of intolerance by solidarity, of suspicion by mutual trust between men and nations," Karamanlis said in an address.

"Domenicos Theotocopoulos is a great bridge-builder. . .His work is yet another strong historical and cultural bond between the peoples of Spain and Greece," the premier added.

"We live in a period in which humanity in its entirety is striving for values and ideals which will allow it not only to survive on the planet but to also unite forces for a better future for all. The duty of countries like Greece and Spain is crystal clear: to capitalise on our culture's tremendous legacy as a source for giving sense and inspiration to our common action," Karamanlis said.

The exhibition, which is organised under the auspices of President of the Hellenic Republic Karolos Papoulias, is entitled "El Greco and his workshop" and will be open for the public until Jan. 6, 2008. It includes paintings by two of his disciples, his son Jorge Manuel Theotocopuli (1578-1631) and Luis Tristán (ca. 1585-1624), as well as works attributed to lesser-known artists who had studied under the Toledo master.

A total of 56 paintings from Spain's famed Prado Museum and other major museums have been assembled for the exhibition. Eight of the paintings are signed by El Greco himself, while among the exhibits are also documents signed by the artist, such as his house lease, a will, etc.

The exhibition is held at the initiative of Spain's ambassador to Greece Juan Ramon Martinez Salazar.

In another development, the official premier of the ambitious Greek-Spanish film "El Greco", focusing on the life and times of Domenicos Theotocopoulos, was screened in Athens on Monday evening before an audience that included visiting Queen Sophia, Greek President Karolos Papoulias and Prime Minister Costas Karamanlis.

The event comes after a "sneak preview" in Irakleio, Crete earlier in the month in honour of the artist's Cretan lineage, according to director Iannis Smaragdis.

The title role is played by British actor Nick Ashdon, with music by Vangelis.

[28] Free ANA-MPA news items on webpage

Just click on the field "Special English Service 2h Delayed" on the left-hand side of the ANA-MPA's English-language webpage to view the free news items. Moreover, a selected number of the Agency's French-language news items can be viewed by clicking on the headlines at the bottom of the ANA-MPA's French-language webpage.

[29] Theological Dialogue meeting ends in Ravenna, Italy

The Ecumenical Patriarchate delegation on Tuesday expressed satisfaction over the progress made in the Theological Dialogue between Orthodox and Catholics held in Ravenna, Italy on October 8-14.

The 10th plenary assembly meeting of the Joint International Commission for Theological Dialogue between Catholics and Orthodox was co-chaired by Metropolitan John of Pergamon and Cardinal Walter Kasper, head of the Pontifical Council for Promoting Christian Unity.

A joint statement issued after the Ravenna meeting underlines that the ecumenical dialogue between Orthodox and Catholics was characterized by a spirit of friendship and sincere cooperation.

The joint statement also mentions that the commission prepared and approved a joint document that will constitute a concrete basis for future commission sessions.

Commission members said that the decision by Bishop Hilarion of Vienna, representing the Patriarchate of Moscow, to leave the meeting as soon as he was informed of the presence of Metropolitan Stephanos of Estonia did not hamper the dialogue's progress. The Patriarchate of Moscow does not recognize the autonomous status of the Church of Estonia.

[30] Former U.S. president Bush telephones Archbishop Christodoulos

Former U.S. president George Bush had a telephone conversation with Archbishop of Athens and All Greece Christodoulos on Tuesday wishing him a speedy recovery.

The former president also conveyed U.S. President George W. Bush's wishes to the Archbishop who is currently at Miami, after a liver transplant operation he was to undergo at Jackson Memorial Hospital failed earlier this month.

The Archbishop was also visited on Tuesday by Armenian Patriarch Karekin II.

[31] French Ambassador to visit Kalamata

The following day, the French ambassador will meet with Messinia Prefect Dimitris Drakos and visit a secondary school in Kalamata where he will speak on the promotion of the teaching of the French language.

On the same day on Friday, he will visit Yialova where he will attend the inauguration of a column dedicated to the memory of the fallen of the French expeditionary force in the Morea during 1828-1832, and to Philhellene General Joseph Maison.

[32] Bomb hoax at Civil Protection service headquarters

The building was evacuated after an anonymous caller phoned the switchboard at 11:05 on Tuesday and said that a bomb would go off at 11:30.

Police then searched the building but found nothing and allowed staff to return to their offices.

[33] Thessaloniki Mayor to visit Melbourne

Thessaloniki Mayor Vasilis Papageorgopoulos will attend the annual Greek festival scheduled to take place at Melbourne's Federation Square on November 11 within the framework of the Melbourne-Thessaloniki town twinning events.

Papageorgopoulos will receive the Melbourne Gold Key by city Mayor John So.

Beginning this year, the Greek community in Melbourne will hold two annual festivals in March and November at the initiative of Melbourne Municipality and the local Greek association.

Melee in west Athens district between foreign nationals results in one death

A melee between two opposing groups of young Albanian nationals left one 22-year-old man dead on Monday evening in a working-class west Athens district.

Police said a pre-arranged "rumble" between two students of a vocational high school in the Peristeri township subsequently involved friends and relatives of the two in an open square located in the nearby Kolonos district.

The victim was identified as Gazment Bega. He reportedly died of stab wounds.

Another four Albanians, ranging in ages from 18 to 21, were arrested in relation to the incident, while three suspects involved in the actual stabbing are wanted.

Weather Forecast

[34] Fair on Wednesday

Cyprus Affairs

[35] Cypriot President makes new proposal for implementation of UN-brokered agreement

Cyprus President Tassos Papadopoulos has sent a letter to UN Secretary-General Ban Ki-Moon, with eight points for the immediate implementation of the July 8 Agreement and other issues that concern the Cyprus problem, announced here Wednesday Government Spokesman Vasilis Palmas.

In a statement, the spokesman said that during his meeting with the Secretary General on 23 September 2007 in New York, Ban Ki-Moon appealed to the President for the immediate implementation of the July 8 agreement.

"In response to the SG's appeal, and in view of the meeting of the Turkish Cypriot leader (Mehmet Ali Talat) with the SG in New York today (Tuesday), the President sent a letter yesterday (Monday) to the UN SG, submitting a proposal with eight points for the immediate implementation of the July 8 Agreed Procedure and other issues that concern the Cyprus problem", Palmas said.

The president, said Palmas, "expresses the wish that this initiative will be dealt in a positive manner by the Turkish side and that the Turkish Cypriot leadership will cooperate to implement, without any delay, the Agreed Procedure so we can soon be led, after negotiations, to an overall settlement of the Cyprus problem".

When invited to say which are the eight points, the spokesman did not want to elaborate, adding the president will make statements on his proposal on Wednesday before his departure to Lisbon to attend the EU informal summit.

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

President Papadopoulos and Turkish Cypriot leader Mehmet Ali Talat agreed on 8 July 2006, during a meeting in Nicosia in the presence of UN official Ibrahim Gambari, to begin a process of bicommunal discussions on issues that affect the day-to-day life of the people and concurrently those that concern substantive issues, both contributing to a comprehensive settlement of the Cyprus problem.

[36] Cypriot FM refers to negative recent developments on Cyprus issue

Cypriot Minister of Foreign Affairs Erato Kozakou Markoullis on Monday termed recent developments over the protracted Cyprus problem as "negative", as she pointed to "a toughening of Turkey's policy" as expressed during Turkish President Abdullah Gul's recent visit to the occupied northern part of the island republic, where he advocated a solution "based on two states".

In exclusive statements to ANA-MPA, Kozakou Markoullis also said:

"These positions, of course, are not presented for the first time, they are positions promoted by Turkey all these past years, but it is the first time ever that Turkey takes such a clear position and in such an official manner, in favour of a "two states" solution."

"This comes at a moment when the Turkish Cypriot leadership makes every effort to annul or eliminate the Agreement reached in July last year and the process agreed upon with Mr. (United Nations official Ibrahim) Gambari for the preparation of a new round of talks," Kozakou Markoullis noted.

She added that it was important the fact that the UN and particularly the UN Security Council "steadfastly support the July 8, 2006 Agreement nad the Gambari process."

"I must, however, underline my concerns on these potential developments regarding the Turkish stance, developments which are not completely independent from other international developments which Turkey follows very closely of course," the Cypriot foreign minister concluded.

Cypriot President Tassos Papadopoulos and Turkish Cypriot leader Mehmet Ali Talat agreed on July 8, 2006, during a meeting in the presence of then UN Undersecretary General for political affairs Ibrahim Gambari, to begin a process of bicommunal discussions on issues that affect the day to day life of the people and concurrently those that concern substantive issues, both contributing to a comprehensive settlement to the Cyprus problem.

Kozakou Markoullis was due to meet here on Tuesday with her Austrian counterpart, Ursula Plassnik, for talks current issues, including the Cyprus problem, the situation in Kosovo and the Middle East peace process.

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