NEWS IN DETAIL

Main opposition New Democracy party leader Miltiades Evert said the premier's policy statements lacked radical proposals, bold initiatives and necessary reforms.

"The prime minister has not realised that any government attempting to face Greece's current problems through mere management is doomed to fail. The government's policy statement was revealing. We find before us the government we left behind. The govern mnent of social injustice and taxes, compromises and prevarications, (a government) of concealing the great challenges and problems," he charged.

Mr. Evert accused the PASOK governments of failing completely in its foreign policy, and wondered why the prime minister yesterday invited Turkey to seek international adjudication for any disputable issues, when the only difference Greece recognised was that of the continental shelf. "Following the Imia crisis, the government suggested Turkey also take that vclaim to The Hague. What is the prime minister implying? Is it simply a slip, or has he entered into commitments?," he asked.

Referring to Cyprus, he said that an announced US initiative could make a positive contribution if it really placed weight on the side that has broken the (international) law.

"Any attempt by the Turks to push south to the free areas of Cyprus is a casus belli for Greece," he added, accusing the government of repeated delays in implementing the country's armaments programme.

Regarding differences with the Former Yugoslav Republic of Macedonia (FYROM), Mr. Evert said a solution envisaging a triple name for different uses would be tragi-comic.

He said his party would maintain a responsible national attitude on external issues, and reiterated his belief in the need for formulating a single long-term national strategy, with the setting up of an appropriate council and the convening of a party l eaders' council.

Turning to the economy, Mr. Evert accused the prime miniser of saying the exact opposite from statements he made in the pre-election period, and of seeking "a new formula, pretext and excuse in order to break the commitments and promises he had given."

"One needs a great deal of suspicion, planning in order to discern his real intentions, and it has become apparent that the government will give local government the right to impose new taxes, as well as levies which are difficult to bear for the econo mically weaker farmers".

He accused the government of planning "a tax-robbing raid".

"Your only concern is how to take more. We didn't hear a word about what you are going to give, except vague promises and empty talk," he charged, calling on the government to deny reports about plans to impose new taxes.

He said his party would support "any reasonable endeavour by the government, " but warned that "there is no grace period, because the economy cannot wait, and national issues do not lend themselves for acrobatic movements".

KKE response

During her speech in Parliament last night, Communist Party of Greece (KKE) Secretary General Aleka Papariga said the government lacks the approval of the popular majority with the percentage it received in the elections, although it has a parliamentary majority thanks to the electoral law.

It is that same electoral law which KKE will struggle to change and have direct proportional representation established, Ms Papariga said.

Ms. Papariga predicted that as of next year hundreds of modern and productive businesses will close down, the most important sectors of the Greek economy will be up for sale and the demolition of the social insurance system and public education will be accelerated.

She expressed support for maintaining tax exemptions of a social character and called for the abolition of tax exemptions for large companies and businesses.

Referring to Greek-Turkish relations and the Cyprus issue, Ms Papariga said the government has slipped down the path of Greek-Turkish dialogue through the United States on its own accord, a dialogue including the Cyprus issue as a unified package, while at the same time seeking the intervention of the European Union.

She added that KKE will vote against the government's policy statements.

Other opposition parties

Coalition of the Left (Synaspismos) leader Nikos Constantopoulos said the government's policy statement fully squared with its past record, and accused the prime minister of not having the courage to assume the responsibilities due to him, and effectively saying nothing about national issues.

Democratic Social Movement (DHKKI) president Dimitris Tsovolas called on the prime minister to answer several crucial questions, such as what the "secret" agreement with the US during the Imia crisis with Turkey early this year was, why he is insisting on diplomatic dialogue on Cyprus, and what will happen to workers' and farmers' pensions.

Papantoniou

Addressing Parliament during last night's debate, National Economy Minister Yiannos Papantoniou called for a broad pact between social partners and the state on stability, development and employment.

He said such a pact was the only practical solution that could guarantee success in the course towards convergence with the other Europeans economies.

"Only PASOK can achieve such an agreement, being the only political force that has relations of trust with all social partners," he added.

He described as the basic aim of the proposed pact as holding of inflation at low levels, and thereafter the maintenance of real incomes and acceleration of development.

"The pact must include commitments for a stable drachma, no increases in indirect taxes, small hikes in public utility rates, and restraint in prices and incomes," he specified.

He forecast that the fiscal adjustment looming ahead would be "ambitious and difficult", explaining that the emphasis would not be on revenues and taxes, but on expenses.

He also referred to a "shake-up" in the structures of the economy so as to increase competition as the only solution for keeping inflation low.

He added that the government aspired to achieving convergence by the year 2000.

SEB

In reaction to the prime minister's speech, the Federation of Greek Industries (SEB) yesterday stressed the dangers threatening the country in the event that progress is not soon achieved in crucial economic sectors.

"The government's policy statements raise the serious problems of the Greek economy with clarity, and vividly describe the dangers threatening the country if no progress is achieved soon in the crucial sectors of stabilisation, development and convergen ce," a SEB announcement read.

SEB's announcement stressed that the target of Greece's equal participation in the European Union, set by the government, constitutes a paramount national priority which has a positive effect on the business climate.

However, SEB added that the positive impression is weakened by the fact that the policy statements do not provide clear replies on the methods, the means and the timetable for their implementation.

SEB announced that it will reserve judgement on the government's policy statements until after relevant discussions in Parliament are completed.

SBBE

Meanwhile, the Association of Industries of Northern Greece (SBBE) expressed tentative support yesterday for the economic aspects of the governmentYs policy statement, also reserving final judgement until after it has studied "the detailed positions of ec onomic ministers".

SBBE "considers that the clarity of the main aim of Greece's equitable participation in European unification provides the policy statement with the right orientation for government policy in the coming years," an announcement read yesterday.

"The bodies of the European Union must be careful in the transfer of funds to Turkey in case this fact flatters their behaviour," government spokesman Dimitris Reppas told reporters.

He was commenting on the European Parliament's budgetary committee's decision to not accept a freeze on Community funds towards Turkey, decided by the European Parliament last month.

The resolution, supported by nearly all political groups in the assembly, froze all funds to Ankara under the MEDA programme, "except those regarding the promotion of democray, human rights and social life."

The resolution was taken following Turkey's failure to meet its obligations to the European Union on improving its human rights record and its increasingly aggressive policies in Cyprus and the Aegean.

Mr. Reppas said that Athens desired good relations with Turkey as long as it respected the rules of international law, treaties and conventions", adding that Greece rejected the adoption of confidence-building measures (CBMs) with Turkey.

"There is no form of communication or dialogue with Turkey whatsoever on political questions," he said, stating that Greece must continue its weapons procurement programme.

Asked to comment on Turkish Cypriot leader Rauf Denktash's statement that if Cyprus became a member of the European Union, then the Turkish-occupied territories on the island republic would be annexed by Ankara, the government spokesman said Mr. Denktas h "rather than intensifying tension, might be better off doing something for the Turkish Cypriots, who live in conditions worse than ever before."

The Greek side was expected to call on EU representatives to oblige Turkey to inocculate all its animals along the Evros border against foot-and-mouth disease and cowpox, since animals on the Greek side are infected by them, as was the case with foot-an d-mouth disease in July, and cowpox this month.

In the event Turkey refuses, Greece will call on the EU and FAO to impose sanctions on the neighbouring country.

Additionally, the Greek side will call on Bulgaria to take measures in the south of that country, where cowpox is endemic over the past two years.

The results of the meeting, taking place for the first time at an international level, will be communicated to the Community, which is prepared to meet the largest part of costs required for the inocculation of affected animals in Turkey and Bulgaria.

Mr. Kaskarelis was replying to what had been said at the UN General Assembly by Turkish alternate permanent representative Tuluy Tans, namely that most of Turkey's problems with Greece concern the Aegean region. He also noted what he referred to as Turk ey's characteristic and systematic contempt for the principles and rules of international law, as well as Ankara's refusal to comply with international treaties which it has counter- signed.

"The continuing illegal occupation of part of Cyprus for more than 20 years is in direct contrast to relevant decisions taken by the UN's Security Council and General Assembly," Mr. Kaskarelis added.

In his address at the close of the UN's 51st General Assembly on Thursday, Mr. Tans replied to the address made by Foreign Minister Theodoros Pangalos.

Specifically, Mr. Tans claimed that Greece is the only country that has "different sea and air boundaries."

Sylvana Foa, a spokeswoman for UN Secretary General Boutros Boutros-Ghali, presented Mr. Melissanidis to foreign correspondents. She said it was a great opportunity for those who did not succeed in watching the Olympic Games in Atlanta close up to meet with one of the most celebrated athletes of this year's Olympics.

Many correspondents and UN officials took the opportunity to ask Mr. Melissanidis for autographs. He invited Ms. Foa to visit his hometown, Thessaloniki, and was photographed with her.

Mr. Melissanidis also visited Archbishop of America Spyridon on Thursday.

According to sources, Brousler Herschler was arrested on suspicion of being involved in terrorist activities in her homeland. An unnamed judicial official said the woman is being held at the Diavata prison in Thessaloniki, while declining to reveal the reasons for her incarceration and saying only that the arrest followed a request by German officials.

Press reports claim the German national is wanted for questioning in relation to a 1986 bomb attack on a Berlin discoteque, while Greek authorities are reportedly interested in her contacts in Greece as well as when she has previously visited the countr y.

The woman was arrested by police at her hotel in the Psakoudia region, where she had recently arrived with a group of compatriots.

The visit, part of efforts being made by EBEA to further promote economic relations between Greece and Israel, anticipates contacts between Greek businessmen with ministry and organisation officials, aimed at a mutual briefing over possibilities of coop eration in the commercial and industrial sectors.

Products having export potential toward Israel include building materials, clothing, textiles, foodstuffs, electrical appliances, furniture and toys, according to reports.

The conference, including participation by the European Reconstruction and Development Bank and the sole investment bank in Bulgaria, will analyse possibilities of Greek investments in Bulgaria, either through a privatisation programme being implemented by the Bulgarian government or through an autonomous business presence.

The tremor, registering 4.1 on the Richter scale, was recorded at 10:08 p.m. on Thursday night.

According to seismologists, the latest tremor is part of normal seismic activity noted in the region.

In a related development, noted seismologist Professor Vassilis Papazahos told the ANA the resurgence of earthquake activity in Messinia, Peloponnese, which has seen tremors of between 4.6 and 4.8 on the Richter scale, was of concern.

"In the normal course of developments after a quake, aftershocks differ in magnitude by at least one point and in this way one can say there was a main quake followed by smaller aftershocks. However, in the case of Pylos (in Messinia), there have been f our to five quakes of almost the same magnitude and subsequently we do not know if there was a main quake. For this reason, we should be cautious in case of a stronger quake," he said.

Regarding seismic activity near Cyprus following Wednesday's quake, he said that developments were normal and said there was absolutely no connection between the Cyprus quake and the seismic activity noted in Messinia.

However, a professor of geology at the University of Athens said that while on the surface there may seem to be no connection between the two, a link could not be ruled out as it was not yet clear if the two incidents were the sounding bells for a large r quake in the region.

WEATHER

(M.S.)

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