NEWS IN DETAIL

He also asked whether the Union intended to financially reinforce Greece's forestry services for "the more effective protection of European forests from the threat they face due to the activities of criminal Turkish organisations."

"The allegation by Turkish deputy Sedat Bucak that Turkish agents torched Greek forests is extremely serious," government spokesman Dimitris Reppas said later.

"The government is carefully examining the entire issue," Mr. Reppas said, and " intendes to seek explanations from Ankara."

Skandalidis

He added: "Greece calls for the clarification of the case and the denunciation of Turkey as an official source of terrorist activity."

The main opposition New Democracy party also issued an announcement describing the Turkish deputy's statement as being "particularly serious" and said it must be examined.

Gov't insists on 'realistic policy', appeals for understanding

"The government is following a realistic policy while refraining from taking measures which would simply make it popular," Mr. Reppas said.

The government, Mr. Reppas continued, understands the reactions of workers and those who are affected by the measures, "but the policy being followed is the only one which will provide a solution to the country's problems."

The spokesman noted that participation in yesterday's strike and protest rallies had been small, "and this must be the basis for drawing any conclusions".

The government later issued an announcement appealing to workers and particularly the weaker social strata for understanding for its economic policy.

The announcement explains the government's new economic measures, stressing that the social state is being strengthened while the new taxes introduced in the 1997 budget burdened the higher income brackets exclusively.

The government said Greece was waging four major battles -participation in EMU, development, the fairer distribution of income and efforts to enhance the deterrent capacity of the armed forces.

It said that workers' real income (nominal remuneration less inflation) would continue to increase at a rate of 2 per cent.

Total expenditure on social protection would amount to 6.5 trillion drachmas in 1997, or 20.1 per cent of Gross Domestic Product (GDP), compared to 3.9 trillion drachmas or 18.5 per cent of GDP in 1993, the announcement said.

High participation rate, unionists claim

The index-linking of tax brackets to inflation and the raising of the limit of non-taxable income to two million drachmas were the workers' main demands.

Meeting to focus on adaptation of Greek legislation to EU laws

According to reports, the discussion will include issues concerning fertilizers, private vehicles and medicines.

Pangalos holds talks with Uzbekistan`s leadership

Apart from meeting President Karimov, Mr. Pangalos met Uzbekistan Foreign Minister A. Kamilov and Deputy Prime Minister and Petroleum Minister C. Hakulov.

President Karimov called for the opening of a Greek embassy in Tashkent and the speeding up of the appointment of a general consul of Uzbekistan in Athens.

President Karimov expressed his country's wish to cooperate with European organisations, saying that he considers Greece a natural channel and interpreter of the views of his country at the European union.

Mr. Pangalos said the Greek embassy in Tashkent will open in 1998.

Talks with Mr. Hakulov, who is responsible for energy issues, focused on issues of an economic nature and possibilities of cooperation between the two countries in the natural gas sector.

Duma president Zelezniev reiterates his parliament`s support for Greece

Mr. Seleznyov, who met President of the Republic Kostis Stephanopoulos, Prime Minister Costas Simitis and political party leaders, said Russia is categorically opposed to the use or the threat of the use of force on the international scene.

He stressed that the Duma has unanimously condemned the presence of a Turkish occupation army in northern Cyprus and has called for the demilitarisation of the island republic in the most categorical manner.

Referring to Russia's positions on the Cyprus problem, Mr. Seleznyov said a precondition for its solution, which he called a disgrace for Europe, is demilitarisation, adding that the UN should be the venue where the problem is resolved and a peaceful so lution found.

Mr. Seleznyov announced a beginning to common business activities and said that in January a natural gas pipeline linking Russia with Greece will be inaugurated. He further said that in his talks with Greek officials he was pleased to ascertain a willingness by Athens to have a proposed project for an alumina plant revived.

Onassis Foundation to donate funds for new library at Metropolitan Museum

"This donation ensures the creation of a library that will give scholars, researchers and the public, the possibility to refer to valuable historical archives and the amazing collections of Greek and Roman art, which the Metropolitan has," the museum's curator, Philippe de Montebello, said during a ceremony announcing the donation.

Internal dissention continues in New Democracy

In a written statement, Mr. Mitsotakis charged that Wednesday's attack against him during a political council session by Mr. Evert, who said he would not be invited to future sessions as his public statements undermined the authority and history of the party, aimed at two things:

"To cause a rift that could even lead to a break up of the party, and relegate to secondary place substantial discussion on terms under which an honest and representative congress would be held" next year.

Vartholomeos concludes tour of Far East

On his return, he praised what he called the "significant achievements in all sectors of the clearly ecclesiastical, educational, social and other activities of the Archbishopry," and noted the contribution of Archbishop Stylianos in the Orthodox Church's achievements in Australia.

In Canberra, Australian Prime Minister John Howard held an official dinner in honour of the Patriarch, who met with all prime ministers of the states he visited.

Patriarch Vartholomeos also visited New Zealand during a tour of the Far East, while he earlier visited Hong Kong, where he founded the new Orthodox Metropolis of Southeast Asia.

Archbishop Anastasios meets with premier

Anastasios said he has been in Albania for some five and a half years to restore the Autocephalus Orthodox Church of Albania and to promote friendship, cooperation and mutual understanding. Consequently, he added, the exchange of views and opinions in such a climate is always useful.

Greek-Yugoslav investment agreement readied

According to a Greek embassy official the agreements will be signed during Prime Minister Costas Simitis' visit to Belgrade, expected early next year.

He added that a committee of Greek experts will soon be established to consider details of granting Yugoslavia export credits to the tune of US$100 million.

Athens has also expressed a willingness to organise seminars for the briefing of Yugoslav businessmen on EU regulations, so as to make more effective its cooperation with European firms.

Survey reveals that one in 10 Austrians to spend 1997 vacation in Greece

Greece is second on a list of preferred holiday destinations for Austrians with 10 per cent, behind Italy with 11 per cent and followed by Spain with 8 per cent.

The survey's results, which were announced yesterday, revealed that 43 per cent of Austrians intend to spend their vacations in a European country, while 22 per cent will spend them within Austria itself. a Greek expatriate businessman.

Last year, roughly 500,000 Austrian tourists visited Greece.

National Bank lowers interests rates for deposits

At the same time lending rates will decrease by 0.25 per cent.

The Ionian Bank will also slash deposit interest rates by half a percentage point as of Monday, while similar moves by the Credit Bank are expected with interest.

The National Bank's working capital lending rate will be 17.50 per cent; for fixed assets 16.25 per cent, and for fluctuating housing loans 15.25 per cent.

Ionian's interest rates for deposits will be 11 per cent.

Motion tabled to confiscate Delta Brokerage's assets

The motion, to be discussed on Dec. 17, calls for confiscation of Delta's movable and immovable assets up to the amount of four billion drachmas for losses sustained.

The main lawsuit on the same issue will be examined in about four months' time.

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