NEWS IN DETAIL

Inflation breaks the 8.0% barrier for the first time in 25 years

According to figures released by the National Statistics Service of Greece (ESYE), inflation at the end of November was running at an annual 7.7 per cent, down from 8.3 per cent in October.

Last November, inflation was running at 8.2 per cent, compared to 10.6 per cent in the same month of 1994.

ESYE said that the drop from 8.3 per cent (correcting item-2) in October to 7.7 per cent in November this year was due mainly to the reduction in the prices of fuel, fruit and hotel rates.

These reductions, ESYE added, resulted in a 0.3 per cent reduction in the Consumer Price Index in November, compared to a 0.2 per cent increase in the same month of 1995.

Farmers blockade is blackmail, Simitis tells parliament

''We must all understand that the blocking of national roads is a form of blackmail which is being perpetrated against the Greek people. It endangers the employment and income of other workers and if it continues it will cause a chain reaction with repercussions for all,'' Simitis said, replying to questions tabled by the leaders of the four opposition parties.

The opposition strongly criticised the government and the prime minister personally over the handling of farmers' protests which have severely disrupted road and rail traffic throughout the country for the past nine days.

The opposition parties in particular accused the government of refusing to hold a dialogue with the farmers which, they said, had resulted in serious problems for the entire Greek people.

In a related development, the public prosecutor's office in Larissa yesterday took legal steps against the farmers, initiating proceedings against ''all persons responsible for obstructing communications''.

Transportation standstill

Heated exchanges between stranded truck drivers, unable to go forwards or backwards, and protesting farmers in several instances threatened to develop into violence, which was averted with the intervention of the police.

In a related development, three major industrial units in the Larisa prefecture have been forced to shut down temporarily due to shortages of fuel or raw materials caused by the blockades.

At the same time, a further seven industrial firms which operate on a 24- hour basis are on the verge of shutting down because they have enough fuel for only two more days.

An announcement signed by the presidents of the country's largest industrial groupings, including the Federation of Greek Industries (SEB) president Jason Stratos, condemned the farmers' protests, saying it was "unacceptable for the Greek economy" to be ''used as a hostage by groups which decide to exert pressure on the state, breaking laws and preventing citizens from carrying on their activities unimpeded".

The announcement called on the government and farmers to enter into a "substantial" dialogue, which would give long-term solutions to problems in the agricultural sector.

Port workers suspend nationwide strike

After a five-hour meeting, the workers decided to call off the strike until Feb. 1, 1997.

US displeased over early release of convicted terrorist

According to an ANA dispatch from Washington, State Department spokesman Nicholas Burns told a press briefing that Rashid ''is a terrorist who deserves to be behind bars'', adding ''it is inexplicable to us why he would have been allowed to leave Greece before serving his just sentence...This is an incomprehensible move''.

Rashid left Greece on Thursday after being freed from prison early for good behaviour after serving 8 1/2 years of a 15-year sentence.

''We understand that the Council (of Piraeus) based its decision on the fact that Mr. Rashid was a model prisoner. This is an extraordinary assessment, given that Mr. Rashid led a prision uprising, while prohibited goods and weapons were found in his cell,'' Burns said.

He said the U.S. government had conveyed its positions to the Greek government in Athens and the Greek Embassy in Washington.

Rashid, 46, was convicted to 18 years imprisonment by a Greek court in 1992 for premeditated murder in the 1982 midair bombing of a Pan American airliner in which a Japanese teenager was killed. In 1993 his sentence was reduced to 15 years, while a parole court recently ruled that he could be freed after serving 8 1'2 years, but must be expelled immediately.

He was taken to Athens airport after his release where he boarded a flight to Cairo, from where he was to transit to Tunis.

No decision on Cyprus flyovers, Reppas says

Government spokesman Dimitris Reppas said that ''in the present circumstances there can be no agreement concerning a moratorium on overflights over Cyprus'', citing inter alia recent statements by Turkish President Suleiman Demirel.

The United States proposed a moratorium on overflights as a measure aimed at reducing tension and the potential for violence on the divided island.

Papandreou reiterates Athens' interest in Bosnia's reconstruction

"I gladly saw that my positions found positive response, and the Bulgarian representative supported the same elements," Mr. Papandreou said after the meeting at Lancaster House.

In terms of regional cooperation, he dismissed fears that such a development spells a return to a status resembling the former Yugoslavia.

Athens disputes US State Dept position on national airspace

In a written reply to a US-based Greek reporter, spokesman Nicholas Burns said the State Department's position on the extent of Greek airspace was identical to that of the US Pentagon, which recognises only six miles.

"Greek airspace has since 1931 been fixed at 10 miles, "government spokesman Dimitris Reppas said, adding that "Greece protects its sovereign rights within this airspace."

"The Greek position on the issue of airspace remains unchanged,he stressed.

Papantoniou warns of a 'difficult year'

Next year, Mr. Papantoniou said, will be difficult not only for the affluent - targetted by the government to bear the brunt of its new economic measures - but for all social groups.

Mr. Papantoniou said the targets so far had been attained "100 percent in the containment of deficits, in inflation by 80 percent and in growth by 140 percent."

The new budget, he added, " is one of growth, European convergence and social cohesion".

He stressed that the budget is freezing indirect taxation which affects mainly those on low incomes, and that the fight against tax evasion continues.

Boy suffocates in wooden chest

Nikos Vernikos was nowhere to be found when a servant at the shipowner's home in Filothei, Athens went to his room to get him ready for school this morning.

After a thorough search of the house, the boy was found trapped in the trunk given to him by his grandmother. He was rushed to the Aghia Sofia children's hospital where doctors pronounced him dead from suffocation.

Police believe the top of the trunk closed after the boy had climbed in while playing.

30 illegal immigrants found in truck

Of the 30 Iraqis discovered yesterday, 22 had legitimate residence permits for Greece and were released, while the other eight had no travel documents and are being detained at police headquarters in Patras.

Citibank donates aid to flood victims

The money was originally to be given as Christmas gifts to the bank's customers and collaborators.

WEATHER

FOREIGN EXCHANGE

(M.P.)

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