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Government launches effort to deal with Halkidiki gold processing plant controversy

The proposal is considered a lastditch goodwill effort by the government to break the deadlock created by strong reaction from local inhabitants who fear damage could be caused to the local tourism industry, the environment, cultural heritage and archeologicals sites.

The inhabitants of Olympiada and Varvara, both located in the Halkidiki prefecture, and their community leaders have formed a handcore nucleus of people preventing the operation of the plant over the past 10 months.

Tension in the area heightened at noon on Thursday when scuffling broke out between riot police and local citizens who prevented a truck belonging to the company from driving through with an excavating drill necessary for its work. Three people were injured and 15 were arrested but later released.

The proposal is contained in an announcement issued yesterday by a government representation at the end of a four-hour meeting attended by five members of the government, deputies from the Thessaloniki and Halkidiki prefectures and representatives from local administration and other bodies.

The government members were Macedonia-Thrace Minister Philippos Petsalnikos, National Economy Undersecretary Christos Pachtas, Development Undersecretary Anna Diamantopoulou, Agriculture Undersecretary Vassilis Geranidis and Labour Undersecretary Christos Protopapas.

Also present were Halkidiki Prefect Vassilis Vassilakis, Thessaloniki Lbour Centre President Ilias Kontopoulos and the President of the Federation of Industries of Northern Greece Nicos Efthymiadis.

According to the announcement and to statements made by the members of the government, the government is determined to go ahead with the investment which was almost unanimously ratified (with the exception of the Communist Party of Greece) in Parliament last June.

Local inhabitans were briefed on the importance of the investment, the biggest one made in northern Greece and one of the biggest ever made in Greece (amounting to 65 billion dr), as well as on repercussions stemming from its non-implementation regarding the country's credibility in the eyes of foreign investors. At the same time, assurances were provided for the inhabitants that the natural environment will be protected in the area with the implementation of environmental studies and continuous control to ensure they are applied appropriately.

Further assurances were given that all necessary conditions will be created for the parallel utilisation of natural resources in the region, with particular attention being paid to tourist development and the protection and utilisation of cultural heritage and archeological monuments.

Reactions from the inhabitants of certain communities, such as Stavros in Thessaloniki, are not focused on the gold processing plant's operation, but on its delineation limits to ensure tourist development is not hindered as well as the promotion of antiquities in the region, including Ancient Stageira, the birthplace of Aristotle.

On the other hand, the inhabitants and community leaders of Olympiada and Varvara, together with those of other villages, do not want the plant to operate at all and have played a leading role in blockagding roads leading to the plant over the past 10 months.

Replying to a questioner on what will happen if local inhabitants reject the government's proposals, Mr. Petsalnikos said the government's announcement is clear. The government's intention is clearly described to find solutions without tensions. From them on, responsibility lies with every individual."

The community leaders of Varvara, Ano Stavros and Stavros, as well as officials from other communities objecting to the operation of the gold processing plant, left for their villages after the meeting to discuss the government's positions with other community leaders.

Meanwhile, the demonstrators from the communities of Olympiada and Varvara were forced to disperse by heavy rain at dawn yesterday. Riot police keeping them under surveillance departed soon afterwards.

Meantime, in a letter to Development Minister Vasso Papandreou yesterday, Association of Greek Industries (SEB) president Iason Stratos, stressed the need "to support the TVX investment, and our efforts regarding the general climate of productive investment in the country for the benefit of the national economy."

Pangalos ends tour of former Yugoslavia countries with signing of inter-state agreements in Zagreb

In Zagreb, Mr. Pangalos held a meeting with his Coratian counterpart Mate Granic focusing on bilateral relations and the course of the peace agreement.

Mr. Pangalos and Mr. Granic signed three inter-state agreements on international transport, mutual investment protection, and avoidance of double taxation.

Both ministers agreed that the agreements will boost economic relations between the two countries.

Stressing that bilateral relations between Greece and Croatia are "excellent," Mr. Pangalos called on Greek businessmen to take advantage of the agreements, "which create a safe environment for investment."

He further said that Greece will assist Croatia its course towards the European Union "so that this course will be shorter and more usefull to the country's economy."

Mr. Granic stressed Greece's positive role regarding Croatia's accession to the Council of Europe as well as the peace agreement in the region.

Expressing hope that bilateral economic relations will furhter develop, he cited the example of an agreement signed between Greece's Public Power Corporation (DEH) and the Croatian company "Rade Kocar" for the purchase of hydroelectric plant equipment.

Mr. Pangalos also met with Croatia's Prime Minister Zlatco Matesa regarding cooperation between the two countries in tourism and the general economic sector and with Croatian President Franjo Tudzman regarding bilateral relations and developments in the broader region.

Mr. Tudjman accepted an invitation by Mr. Pangalos to visit Greece sometime during the beginning of next year.

Mr. Pangalos later told reporters that his interlocutors in Bosnia Yugoslavia and Croatia appreciated Greece's efforts in the direction of consolidation of peace and cooperation in the region.

"Greece," he said,"has traditionally good relations with all peoples of Yugoslavia independently of religious or cultural differences."

"These relations should be restored," he said, adding that this will result "in peace and stability in the Balkans."

Speaking exclusively to the ANA, Mr. Granic said that "Croatia and Greece are two friendly countries whose bilateral relations have developed significantly in the past two years.

"Greece," he said, "played a very important role regarding Croatia's accession to the Council of Europe."

"Its role has also been positive regarding the peace process in former Yugoslavia," he said.

Mr. Granic said bilateral economic relations would be further developed following the signing of the three inter-state agreements, adding that the country was ready to develop economic relations with Greece.

Ecumenical Patriarch Vartholomeos in Sofia

The Patriarch and representatives of eight Orthodox Churches participated in a churce service at the Church of Saint John of Rila in Sofia yesterday morning, officiated by the Metropolitan of Vracha Ignatios.

In the afternoon, the guests of Bulgarian Patriarch Maximos were due to attende evening service at the Aleskandr Nevski Cathedral in Sofia.

At noon, Patriarch Vartholomeos visited the building of the Holy Synod where he was welcomed by Patriarch Maximos.

Vartholomeos' acceptance of Maximos' invitations comes at a difficult time for the Bulgarian Church which is suffering from a rift attempted by the Metropolitanof Nevrokopi Pimen, with the creation of a parallel Holy Synod.

Replying to questions put to him by reporters, Patriarch Vartholomeos said that the Patriarchate "will continue dialogue with the Roman Catholic Church as the sole means of communication and solving differences appearing in relations between the two Churches."

Greece plans elite rapid deployment force, defence minister says

"The establishment of a strong rapid intervention force, made up of well- trained men, and with fully-equipped firepower is the priority in the national defence ministry's planning," Tsohatzopoulos said in an interview with the Athens afternoon daily 'Ta Nea'.

He said that the men in the 1,000-3,000-strong force would be volunteers on a five-year tour of duty but would also include conscripts after a planned restructuring of the armed forces, aimed at making better use of manpower.

Additional needs would be covered by veterans of multi-national forces outside Greece, he said.

Other defence ministry plans include the increase the operational effectiveness and pre-emptive capability of the armed forces, the completion of the second phase of the Greece-Cyprus joint defence doctrine ensuring fully coordinated weapon system planning, and the establishment of two peacekeeping units made up of between 100-200 men to take part in European Union and United Nations missions.

Referring to the five-year (1996-2000) weapons system programme, Tsohatzopoulos said the programme introducing new technologies and weapons systems would exceed the three trillion drachma mark.

He said the country's military defence diplomacy would be strengthened not only within the framework of NATO and the Western European Union (WEU) but through bilateral defence agreements.

Mr. Tsohatzopoulos said that Greece's national strategy "is exclusively of a defensive nature".

Kazakhstan seeks stronger ties with Greece

Vladimir Koutovoi, who is visiting Greece at the invitation of MTI, one of a consortium of Greek companies organising the national lottery of Kazakhstan, said he expected his visit to be an opportunity for further cultural contacts between the two countries.

"There is a Greek community and a Greek Cultural Centre in Alma Ata, the capital of Kazakhstan and its members are very active," he said.

"Now, with the cultural fund that will be financed by the lottery the consortium of Greek companies has organised, we will proceed to carry out several cultural projects including excavations, restoration of antiquities and expansion of our cultural relations with other countries," he added.

Kazakhstan, one of the largest republics of the former Soviet Union, is siutated north of Afghanistan and Pakistan.

Although there are no ancient Greek cities in the area, Mr. Koutovoi said, the archaeological museum has many ancient Greek vases.

"We don't know how they came, but it seems that our relations with Greece go very far back," Koutovoi said.

Mr. Koutovoi, who is scheduled to return to Kazakhstan next week, expects to meet and discuss promotion of Greek-Kazakhstani relations with Greek officials.

Georgios Papandreou Foundation inaugurated

"The activity of prominent political men must remain indelible in the memory of succeeding generations," and it is "a national need that all documents referring to their personalities are collected," said Mr. Stephanopoulos, praising the "passionate patriot" for his "dedication to democratic institutions."

The prime minister praised the "political moderniser" and his efforts for "a multi-oriented foreign policy," linking his work with that of his son, PASOK founder Andreas Papandreou.

Call for "drachma zone" in the Balkans

Speaking at a conference on the Albanian market in Thessaloniki yesterday, he said opportunities in the particular market would be further pursued in the framwork of the 4th interBalkan conference in March next year.

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