Athens News Agency: Daily News Bulletin in English, 08-05-06

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

CONTENTS

[01] PM Karamanlis, President Papoulias address international conference on climatic change

[02] PM to be briefed on defence issues on Tues.

[03] Karamanlis briefed on justice ministry initiatives

[04] Gov't dismisses reshuffle press claims

[05] PASOK leader Papandreou to chair meeting of party's Parliamentary Group

[06] PASOK spokesman on feeling of insecurity

[07] Former Siemens executives deny charges in bribery probe

[08] Ecumenical Patriarch Vartholomeos on Athens Archbishop Ieronymos' visit

[09] Memorial service for late statesman Constantine Karamanlis

[10] Folias: no strain in Greek, U.S. ties over South Stream

[11] Top US embassy official on South Stream project

[12] PASOK rapporteur Chrysohoidis on energy policy

[13] MIG says transaction with DT to be completed in next two weeks

[14] Current week crucial for OTE talks, minister says

[15] PASOK spokesman Papaconstantinou on OTE issue

[16] Minister points to landfills as generating numerous wildfires

[17] Minister miffed over wildcat strikes

[18] DEH power cuts inquiry should be dropped, prosecutor finds

[19] Greek stocks end 0.57 pct lower

[20] ADEX closing report

[21] Greek bond market closing report

[22] Foreign Exchange Rates - Tuesday

[23] Firemen on alert at Ano Liosia landfill

[24] Trafficker, illegal immigrants arrested in Samos

[25] Authorities catch 28 illegal immigrants on Evia

[26] Rehhagel signs new contract until 2010

[27] Libel suits emerge in Greek football

[28] Iacovou, weightlifting coaches submit testimony in doping case

[29] Cloud, scattered showers on Tuesday

[30] New UNSG's Special Representative in Cyprus next week

[31] Spokesman says good atmosphere in working groups and technical committees Politics

[01] PM Karamanlis, President Papoulias address international conference on climatic change

The prime minister said that the challenge for each country is a double one. On the one hand, ensuring energy security and, on the other, decreasing the contribution to the greenhouse phenomenon.

Karamanlis referred to the policy on energy security that is being applied by Greece, stressing that this is an "open horizons energy diplomacy which is promoting the country to an international energy hub."

He further referred, in this framework, to the agreements on the construction of the Burgas-Alexandroupoli oil pipeline, the Turkey-Greece-Italy natural gas pipeline, the recent agreement on the South Stream natural gas pipeline, the signing for the establishment of the energy community of southeastern Europe and the leading role played by Greek shipping in the international hydrocarbons market.

The prime minister pointed out that with these actions Greece "is achieving its substantive geopolitical upgrading as an intersection between producer countries in the east and the south and the consumer countries of Europe. It also achieves securing adequate energy for the years to come and the security of its energy supply, as well as the consolidation of its role as a reliable transit centre."

Karamanlis said that the path towards facing environmental problems passes through the gradual distancing of economies from costly and polluting oil, adding that it also passes through the curbing of energy extravagance and the decrease of greenhouse gas emissions, by taking specific measures through the implementation of strict specifications with the utilization of the potential of new technology and with the training of all, and of the younger generation in particular, on environmental issues.

The prime minister added that it also passes through the increasing coverage of energy needs by renewable energy sources, as well as securing the energy security of each country.

As regards policies followed by the country, the prime minister underlined the importance of the special planning framework for renewable energy sources, with which every citizen, every firm and every local administration organization will be aware of what it can do, where and how.

President Papoulias

Addressing the conference earlier, President of the Republic Karolos Papoulias stressed that "the environment is not a priority. It is the top priority."

The president added that "the worsening of environmental problems is such that it requires the need for coordinated efforts to be assumed at a global level" and noted that "since we have reached the edge of the cliff we must take action to reverse the situation and that institutional difficulties exist at international level because timid steps are not enough."

President Papoulias said, however, that steps have also been taken in the right direction.

"Kyoto is a positive initiative and so is the European Union's commitment for a decrease in carbon dioxide emissions by 20 percent by the year 2020 and an increase in renewable energy sources," he said.

The president made special reference to last year's disastrous wildfires, stressing that "last year's ecological disaster was tremendous," adding that "the prevention apparatus has a great responsibility for it not to be repeated. There are no more excuses, we must be prepared and make every effort so that last summer will not be repeated, last year's victims will be the last."

Development minister addresses conference

Development Minister Christos Folias on Monday addressed an international conference on climate change and energy security.

He referred to Greece's energy policy "which secures the energy security and the diversity of supplies of energy."

"The government responded to the need to re-determine Greece's role in the energy chess board and had three great successes," Folias said.

He clarified that these were the Turkey-Greece-Italy (TGI) natural gas pipeline, the Burgas-Alexandroupolis oil pipeline and the "South Stream" natural gas pipeline which was recently signed in Russia.

Folias described the signing of the "South Steam" as a "peak" of Greece's energy policy and the three together that they "signal" the country's new dynamism in southeastern Europe.

He emphasized that the three agreements render Greece "an energy corridor."

[02] PM to be briefed on defence issues on Tues.

In the afternoon, Karamanlis will participate in a Parliament debate on Constitiutional articles under revision.

Meanwhile, government spokesman Theodoros Roussopoulos on Monday, and in response to press questions, merely noted that DM Meimarakis has repeatedly reiterated the government's position on changing the mandatory military conscription rule for able-bodied males to 18 years of age.

Meimarakis has been previously quoted as saying that eliminating most exemptions (usually for tertiary academic studies) was amongst many measures being considered by the ministry, although any final proposal would be derived via a wide-ranging dialogue between the government, political parties and society.

[03] Karamanlis briefed on justice ministry initiatives

Hatzigakis afterwards responded to a question on the ongoing Siemens case investigation, saying procedures in all major cases will be sped up.

The justice minister also briefed the prime minister on draft laws he will present to Parliament concerning domestic relations and a cohabitation agreement, as well as other reform that will take up the form of draft laws in due time.

[04] Gov't dismisses reshuffle press claims

Roussopoulos reminded that ruling New Democracy party, in its second consecutive term in power, has made structural changes by merging two government ministries.

Referring to criticism targeting Environment, Town Planning and Public Works Minister George Souflias over Greece's recent temporary suspension from Kyoto-mandated UN carbon trading regime, Roussopoulos said the government is fully satisfied with the responses provided by the ministry.

[05] PASOK leader Papandreou to chair meeting of party's Parliamentary Group

Papandreou, whose health is improving following a bicycle accident he had two weeks ago, met on Monday afternoon at Athens' northern suburb of Kastri with the Movement's Secretary of the National Council, Yiannis Ragoussis.

[06] PASOK spokesman on feeling of insecurity

Papaconstantinou extended the party's condolences to the driver's family and said that "police have inadequate training to a great degree, their salaries are pinned down and they are obliged to have a second job, while the distribution of shifts has big gaps."

He also cited certain data, according to which over the 2004-2007 four-year period "a 38 percent increase occurred in thefts and burglaries, 29 percent in vehicle thefts and 71 percent in bank robberies."

Papaconstantinou accused the government of "creating a state of partisanship in the police and of dissolving crucial serrvices" and stressed that PASOK "had delivered a competent police force that had begun to regain a relationship of trust with citizens."

[07] Former Siemens executives deny charges in bribery probe

One of the two refused to provide explanations as a witness that also had the capacity of a suspect, saying that the procedure was similar to submitting a plea but without being informed of the specific acts of which he stands accused.

So far, Athanassiou has asked 14 people to provide testimony in the capacity of a suspect in the case, most of them being former executives of Siemens or Hellenic Telecommunications Organization (OTE) involved in setting up a lucrative contract for setting OTE's digital network that was awarded to Siemens.

The prosecutor has also received the records of a company bank account at a Monaco bank linked to a person involved in the affair, from which 24 money orders were wired to foreign companies and two individuals.

[08] Ecumenical Patriarch Vartholomeos on Athens Archbishop Ieronymos' visit

Ecumenical Patriarch Vartholomeos, addressing a group of pilgrims from the Greek city of Kozani, referred on Monday to the upcoming visit by Archbishop of Athens and All Greece Ieronymos this week, saying that "we are living with the joy of expecting the visit by the new Archbishop of Athens and All Greece, brother Ieronymos."

He added that "it will be three fruitful days for joint prayers and discussions on our common issues and it will be, definitely, an opportunity to further strengthen fraternal ties between the Ecumenical Patriarchate and the Church of Greece."

Vartholomeos also said that "our desire and our effort is to have the institution of the Ecumenical Patriarchate survive, regardless of external conditions, situations and circumstances, as it has survived with the grace of God for 17 centuries and is continuing its history."

He concluded his address by saying "I am extending through you the blessing of the Mother Church to Kozani, Macedonia and to all of Greece."

[09] Memorial service for late statesman Constantine Karamanlis

Also in attendance were former education minister Marietta Yannakou, in her first public appearance following her release from a lengthy hospitalisation after a leg amputation and complications, interior minister Prokopis Pavlopoulos, economy and finance minister George Alogoskoufis, culture minister Michalis Liapis, and several ND deputies.

Financial News

[10] Folias: no strain in Greek, U.S. ties over South Stream

"There are no differences, nor have our relations been strained. We agree absolutely with the United States that the aim is the non-creation of monopoly or single-supplier situations. If you depend on one [source], then you are doomed from the start," Folias underlined.

The minister also addressed the concerns expressed in Washington that the South Stream would in some way delay or sideline the Turkey-Greece-Italy (TGI) pipeline bringing natural gas from Azerbaijan, which the U.S. favours on the grounds that it will reduce Europe's dependency on Russia for energy.

He pointed out that the TGI would begin operating in 2012, while the South Stream would at best begin operation in 2015, and said that the two were not in competition.

"The two pipelines are complementary, the one does not depend on or negate the other. We need them both," he stressed.

According to Folias, Greece currently covered 77 percent of its needs with natural gas from Russia, while in 2012-2013 the dependency on Russia gas will have been reduced to less than 50 percent.

The development minister noted that the plans for the South Stream's route had not yet been finalised, adding that the likeliest route would pass through Greece directly to Italy via an underwater pipeline but not ruling out the possibility that it might pass through Albania as well.

Meanwhile, he noted that negotiations were underway with Turkey to ensure the passage of one billion cubic metres of natural gas a year from Azerbaijan via the Greek-Turkish pipeline, with a meeting scheduled to take place shortly in Athens between the four countries involved - Greece, Italy, Turkey and the supplier Azerbaijan.

In statements last Thursday, US Deputy Assistant Secretary of State for European and Eurasian Affairs Matthew Bryza stressed that priority must go to the construction of the TGI pipeline and said that the supply of 80 percent of natural gas consumed by Greece by one company, Russia's Gazprom, laid the country open to the dangers of depending on a monopoly.

Bryza warned against allowing completion of the TGI to languish in favour of South Stream, expressing doubts whether "all sides" in Greece appreciated the importance of the TGI arriving in the market first and adding that, otherwise, Greece might end up with only the South Stream.

[11] Top US embassy official on South Stream project

Top US diplomat Thomas Countryman made the statement at a conference on the issue of "Climatic Change and Energy Security", which began on Monday in Athens.

"We respect Greece's decisions on its energy policy," Countryman noted, adding that Washington was not annoyed by a Greek-Russian agreement for the construction of the South Stream natural gas pipeline.

Greek Prime Minister Costas Karamanlis and outgoing Russian President Vladimir Putin signed the agreement for the construction of the pipeline in Moscow last Tuesday. It is designed to transport Russian natural gas from Russia to Bulgaria, via an underwater pipeline on the Black Sea floor, and beyond to Greece and Italy.

Addressing the conference and more specifically the chapter on "Greece's role as an important transport hub on the East-West axis for hydro-carbons," the US official referred to a monopolistic role by Russian energy giant Gazprom and the negative effects it may have on consumers.

The possibility of choosing among a greater number of suppliers "is in the benefit of consumers," Countryman insisted, adding: "You will find out in the future that our worries over the pipelines concern economic and political criteria."

He added that Gazprom is not ominous because it is a Russian company, but because it is a monopoly.

Russian diplomat Mikhail Savva added, in response to the statements, that the United States itself had a "more restricted diversification" of energy supplies "since, as regards natural gas supplies, it depends for more than 85 per cent of its supplies on Canada."

The Russian official said his country, in its energy cooperation, "and particularly with Greece, steadfastly adheres to the principle of 'equal cooperation'."

[12] PASOK rapporteur Chrysohoidis on energy policy

Chrysohoidis accused the government of "complete stagnation regarding natural gas infiltration," pointing out that its infiltration of the urban sector, eight years after the establishment of the Gas Supply Companies (EPA) in Attica, Thessaloniki and Thessaly, "is in the region of 25 percent, while relevant studies had anticipated that it would be completed in 11 years, something that appears to be almost an utopia today."

The rapporteur spoke of "the absence of longterm energy planning, resulting in circumstantial energy policy being exercised without any provision for the international commitments that the country has assumed towards the UN and the European Union and fragmental solutions being provided for serious and longstanding issues of the energy sector."

In another development, PASOK party spokesman George Papaconstantinou said that the acceptance by Finance and Economy Minister George Alogoskoufis of one out of the five proposals made by party leader George Papandreou regarding people receiving loans was positive.

However, he added that the problem cannot be solved with fragmental acceptances and stressed that PASOK will be submitting a relevant draft law and there, as he noted, "all shall be judged by their actions".

[13] MIG says transaction with DT to be completed in next two weeks

The German telecoms giant is in the last stages of negotiations with the Greek government over the purchase of around 30 percent in the state-run telecoms group, in which MIG holds a minority equity stake of around 20 percent.

Gov't on OTE

Meanwhile, government spokesman Theodoros Roussopoulos said the government's search for a "strategic partner with the appropriate management" was in ruling New Democracy party's programme, and unveiled some five years ago when the party was still in the opposition.

[14] Current week crucial for OTE talks, minister says

Replying to reporters' questions, Hatzidakis said the negotiations had so far yielded a balanced agreement where the Greek State retained important rights to control significant issues of national importance, OTE's interests, as well as those of its workforce and Greek consumers.

Regarding the status of OTE's workforce in particular, and whether their labor rights would be affected, Hatzidakis replied that "the Greek laws will apply and, for the workers, there will always be close consultation between the government and OTE's management, which will also be one acceptable to us as well."

[15] PASOK spokesman Papaconstantinou on OTE issue

Referring to an interview by Finance and Economy Minister George Alogoskoufis on Sunday, Papaconstantinou said that "it is deduced from it that joint management was a myth since, according to the finance minister, the state will ultimately possess only 5 percent of the shares and the management will be exercised exclusively by Deutsche Telekom."

On the issue of exercising a veto, the spokesman said that "this will only be exercised for national security reasons and God forbid if the government did not even secure this."

He further said that "a veto does not ensure that appropriate decisions will be taken" and wondered what "decisions will be taken when OTE's interests in the Balkans or elsewhere will conflict with the interests of Deutsche Telekom."

Papaconstantinou also predicted, in relation to the minister's interview, that "there will also be a concession in the price of the sale of the Organization's shares".

Lastly, the spokesman claimed that OTE's sale had not been included in the New Democracy party's programme, "in which mention had been made of a strategic partner and not of a sale." And a strategic partner, as he said, "means an exchange of shares and not a buyout".

[16] Minister points to landfills as generating numerous wildfires

Addressing the conference, Pavlopoulos underlined that closing and restoring illegal landfills in the country -- one of Greece's worst environmental blights -- is necessary both for fire prevention and environmental reasons, pointing out that dump sites are amongst the most frequent starting points for catastrophic wildfires, particularly in the summer heat.

[17] Minister miffed over wildcat strikes

"We are willing to talk with the workforce but the government is not prepared to give in to blackmail," he stressed, underlining that unauthorized strike action that had greatly inconvenienced passengers and disrupted OA's flight schedules was completely unacceptable.

[18] DEH power cuts inquiry should be dropped, prosecutor finds

First-instance court public prosecutor Panagiotis Panagiotopoulos found that both the management of the PPC and the staff had acted within the dictates of the law in terms of the skeleton staff provided to meet requirements during a strike and the amount of power made available to the public.

The prosecutor found that the workforce had exercised their established Constitutional right to go on strike.

The case has now been referred to an Appeals Court prosecutor, who will make the final decision.

The inquiry was initiated after the PPC's management and the PPC union made contradicting claims about the lengthy rotating power cuts imposed during the course of a strike lasting several weeks, both in terms of their necessity and about whether the union had fulfilled its obligation to provide a minimum number of skeleton staff.

[19] Greek stocks end 0.57 pct lower

Most sectors moved lower with the Travel (1.16 pct), Technology (1.12 pct), Banks (1.05 pct) and Media (0.81 pct) suffering the heaviest percentage losses of the day, while Raw Materials (1.20 pct), Financial Services (1.06 pct), Telecommunications (0.62 pct) and Food/Beverage (0.58 pct) scored gains. The FTSE 20 index eased 0.65 pct, the FTSE 40 index ended 0.01 pct down and the FTSE 80 index rose 0.61 pct.

Quality (19.12 pct), Kreka (15.44 pct) and Vivere (12.0 pct) were top gainers, while Mesohoritis (7.41 pct), Saos (6.0 pct) and Livanis Publications (5.88 pct) were top losers. Broadly, decliners led advancers by 120 to 118 with another 55 issues unchanged.

Sector indices ended as follows:

Insurance: -0.49%

Industrials: -0.07%

Commercial: -0.26%

Construction: +0.06%

Media: -0.81%

Oil & Gas: -0.16%

Personal & Household: -0.31%

Raw Materials: +1.20%

Travel & Leisure: -1.16%

Technology: -1.12%

Telecoms: +0.62%

Banks: -1.05%

Food & Beverages: +0.58%

Health: -0.27%

Utilities: -0.05%

Chemicals: -0.05%

Financial Services: -0.08%

The stocks with the highest turnover were National Bank, OTE, Bank of Cyprus and Marfin Investment Group.

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

Alpha Bank: 22.22

ATEbank: 2.85

Public Power Corp (PPC): 27.22

HBC Coca Cola: 28.30

Hellenic Petroleum: 9.78

National Bank of Greece: 37.14

EFG Eurobank Ergasias: 20.20

Intralot: 13.00

OPAP: 24.86

OTE: 19.52

Titan Cement Company: 30.20

Bank of Cyprus: 9.20

Marfin Popular Bank: 5.84

Marfin Investment Group: 5.86

[20] ADEX closing report

Volume in futures contract on the Big Cap index totaled 3,420 contracts worth 38.011 million euros, with 29,332 open positions in the market, while on the Mid Cap index volume was 44 contracts worth 1.110 million euros, with 227 open positions.

Volume in futures contract on equities totaled 10,053 contracts worth 11.652 million euros, with investment interest focusing on OTE's contracts (1,960), followed by Marfin Investment Group (603), National Bank (1,001), Intracom (260), Marfin Popular Bank (438), Viohalco (1,695) and ATEbank (1,589).

[21] Greek bond market closing report

In the domestic interbank market, interest rates moved higher. National Bank's one-month rate was 4.38 pct, the three-month rate was 4.87 pct and the 12-month rate 4.95 pct.

[22] Foreign Exchange Rates - Tuesday

U.S. dollar 1.558

Pound sterling 0.791

Danish kroner 7.522

Swedish kroner 9.423

Japanese yen 164.03

Swiss franc 1.643

Norwegian kroner 7.978

Canadian dollar 1.584

Australian dollar 1.655

General News

[23] Firemen on alert at Ano Liosia landfill

The fire broke out at 11:30 pm on Sunday and was placed under control by 3:15 Monday morning.

Taking part in the firefighting effort were 30 firemen with 10 fire engines, a 10-member-strong EMAK emergency operations and rescue team, and local administration teams.

[24] Trafficker, illegal immigrants arrested in Samos

All the immigrants were transferred to Samos General Hospital for medical tests and later they were led to the Reception Centre. The Turkish trafficker was referred to justice.

[25] Authorities catch 28 illegal immigrants on Evia

The yacht was intercepted in waters near Vassilika by a coast-guard patrol boat after it had left the illegals on the shore and the three were arrested because they were sailing with their navigation lights turned off. During a search of the yacht, coast guard officers also found that it lacked all shipping documents and also noted remnants of food, children's clothing and a very unpleasant smell.

This caused them to initiate a search on the coast, where police officers later discovered seven men, 12 women and nine children that lacked valid travel documents. Shortly afterward, police also arrested another two foreign nationals in the Kastela region, who admitted under questioning that they were acting as lookouts to facilitate the movement of the 28 immigrants into the interior of the country.

Investigating officers additionally ascertained that the yacht, which was confiscated, had set sail from the Turkish coast with the immigrants on board.

Late last week, Merchant Marine and Island Policy Minister George Voulgarakis had asked the coast guard to increase the frequency of patrols in the Aegean, in response to a surge in the numbers of immigrants attempting the crossing into Greece from the Turkish coast.

Soccer

[26] Rehhagel signs new contract until 2010

A laconic statement issued by the federation merely cited the contract extension with Rehhagel -- who will turn 70 in August -- by far the most successful coach in the national team's history.

Greece beat Portugal 1-0 in July 2004 to win its first-ever European Championship with Rehhagel on the bench.

[27] Libel suits emerge in Greek football

The unprecedented court action was threatened by Olympiakos' owner, high-profile local IT tycoon Socrates Kokkalis, during an interview a day earlier.

AEK's management and Rivaldo have publicly lambasted the Greek Football Federation (EPO) in recent weeks following an earlier decision by the federation to overturn the result of a match played between now relegated Apollon Kalamaria and Olympiakos in early February, which was won by Apollon 1-0 at home.

Following an immediate legal challenge by Olympiakos against Apollon over a player's eligibility, EPO awarded the game and three points to Olympiakos and deducted four points (3+1) from Apollon Kalamaria.

With the judgement, Olympiakos finished two points ahead of AEK.

Apollon Kalamaria's request for an injunction by the Lausanne-based Court of Arbitration for Sport (CAS) was subsequently turned down by the tribunal, leading to celebrations by the Olympiakos side and poisonous remarks by AEK supporters and management.

Sports

[28] Iacovou, weightlifting coaches submit testimony in doping case

Apart from Iacovou, Karaflos had also summoned Valerios Leonidis, Serafeim Grammatikopoulos, Alexandros Polytidis and Kyriaki Galani to provide explanations regarding the affair.

Iacovou and Leonidis presented their testimony in the form of a memorandum submitted to the prosecutor on their behalf by the lawyer that is representing them, Haralambos Lykoudis.

In this, they deny administering banned substances to the athletes in their care and insist that a mistake had been made by the Chinese company supplying legal supplements to the team. They also point out that the company itself admitted to making the mistake in an e-mail and asked that the prosecutor take statements from the representatives of the Chinese firm.

The scandal erupted last month when eleven out of 14 athletes on the Greek national weightlifting team supplied samples that tested positive for banned substances in an anti-doping test.

Weather forecast

[29] Cloud, scattered showers on Tuesday

Cyprus Affairs

[30] New UNSG's Special Representative in Cyprus next week

Taye-Brook Zerihoun of Ethiopia, who has been appointed UN Secretary General's Special Representative in Cyprus and Head of UNFICYP, will be arriving on the island next week.

Zerihoun is currently the Secretary General's Principal Deputy Special Representative in the UN Mission in Sudan (UNMIS). He has also been serving as Chief UN Mediator for the Darfur Peace Talks since October 2007, in support of the efforts of Special Envoy Jan Eliasson. Zerihoun will replace Michael Moller.

The new UN envoy arrives as joint bicommunal working groups and technical committees, comprising experts from the Greek Cypriot and the Turkish Cypriot communities, continue their discussions to help prepare the ground for substantive negotiations between the leaders of the two communities.

The teams of experts will be meeting twice a week to discuss core issues of the Cyprus problem as well as day to day concerns.

The bicommunal teams are meeting at the now defunct UN-controlled Nicosia airport.

Six working groups and seven technical committees, set up in the context of the March 21 agreement between President of the Republic Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat, began work about a week ago.

The two community leaders also decided to meet again in three months to review the work of the committees dealing with various aspects of the Cyprus problem, the results of which will be used to start negotiations under UN auspices leading to a settlement that will reunite Cyprus, divided since the 1974 Turkish invasion.

[31] Spokesman says good atmosphere in working groups and technical committees

Government Spokesman Stephanos Stephanou said on Monday that a good atmosphere was determined in the working groups and technical committees, which were set up to discuss various aspects of the Cyprus problem.

He noted, however, that this was not enough, since the working groups and technical committees had to produce results, especially the working groups, which are discussing matters of substance.

Replying to questions, Stephanou said the working groups and technical committees would now be commencing intensive work and ''we will see how far we can go.''

Stephanou assured that the Greek Cypriot side was participating in this process ''with good will, ready for hard work and is well prepared.''

Asked if a working group would be set up to discuss the issue of Turkish settlers in the areas of Cyprus under Turkish occupation, Stephanou said ''this is an issue we had raised'' and noted that the Greek Cypriot side wanted to discuss it.

''We have begun a process with six working groups and seven technical committees. You realise that these working groups and technical committees do not exhaust all the issues before them,'' he added.

Stephanou said that the Greek Cypriot side's principle was ''a solution that will terminate settling, lead to the withdrawal of the settlers,'' adding that ''we have accepted the reasoning that a number, to be determined through negotiations, will remain for humanitarian reasons.''

Replying to questions, Stephanou said he could not elaborate on the work being carried out. ''What I can say though is that there is a good climate in the discussions, in the ongoing dialogue,'' he said.

''The good climate is the necessary basis on which to carry out a dialogue, but the good climate is not enough. There needs to be a single understanding regarding the basis on which we are discussing. But we are still at the beginning,'' he added.

Asked where the good climate was determined, Stephanou said ''there is a good climate in all the working groups and technical committees, and a mood for discussion, as well as good interpersonal relations.''

''However, this is not enough, because you are starting from the good climate but they need to produce results, especially the working groups which are discussing issues of substance of the Cyprus problem. The results should be tangible and at the end of this phase of the process should be able to support comprehensive negotiations on the Cyprus problem between the leaders of the two communities, as provided for in the March 21 agreement,'' he noted.

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

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