NEWS IN DETAIL

EU draft communique reconfirms July declaration

According to a draft communique, the despatch said, the 15 EU leaders call on the presidency ''to continue its efforts, following the declaration of the EU council (of foreign ministers) of 15 July aimed at promoting an acceptable solution to the situation in the region of the Aegean which is in line with international practice and to continue its contacts with the Turkish government for the purpose of convening, at the earliest, the (EU- Turkey) association council''.

The 15 July declaration inter alia calls on Turkey to refrain from using or threatening the use of force and to have recourse to the International Court at the Hague with regard to its territorial claims against Greece.

The draft communique also contains a call by EU leaders on Turkey to use all its influence to contribute to finding a solution to the Cyprus problem in line with UN Security Council decisions, the despatch said.

Although the draft communique reconfirms the importance attached by the EU to the further development of relations between the Community and Turkey, it notes that ''regrettably... certain important issues pertaining to this relationship remain unresolved''.

It also welcomes Ankara's declared intention to take measures to improve the human rights situation in Turkey.

EU Stability, Development Pact compromise satisfactory for Greece

Ecofin accepted Greece's proposal for sanctions not to be imposed when the swelling of the fiscal deficit is due to unforeseen factors, such as natural disasters or a sudden need to increase defence expenditure, and the proposal was a part of the final compromise.

The possibility of an unforeseen factor and the serious economic recession constitute the two main exceptions to the rule of imposing sanctions against fiscally deviating member-states belonging to the "Euro" zone.

Mr. Papantoniou also expressed satisfaction over the fact that on "Euro" banknotes, the name "Euro" will be written both in Greek and in Latin characters.

Mr. Papantoniou said the main characteristic of the compromise achieved at the Council yesterday is a substantive weakening of arithmetical references in relation to the imposition of sanctions.

The Greek representative, Eurodeputy Yiannos Kranindiotis, presented a brief account of discussions to date on the Intergovernmental conference.

He said the 15 leaders had an open exchange of views based on the revision of the Maastricht Treaty presented this week by the Irish EU presidency and on the letter by French President Jacques Chirac and German Chancellor Helmut Khol.

Mr Kranindiotis said he considered some of the ideas in the Chirac-Khol letter to be positive, such as the issue of the solidarity clause and the relations between the EU and the WEU.

However, he added the Greek side disagrees with certain sections, such as the reduction in the number of commissioners and the abolition of unanimity in procedures for the taking of Community decisions.

EU needs effective foreign, defence policy, Pangalos tells Irish Times

The Union's institutions should be focused on "institutional equality and unity without discriminations or diversifications," Mr. Pangalos was quoted as telling the newspaper.

Branding the Cyprus-EU accession as "the primary issue of Greek foreign policy," he went on to say that "it should be made clear" to Ankara that Turkey does not have the right to veto a Cyprus accession to the Union.

"The European Union and Cyprus should not be made hostage to Turkey," he added.

"Greece wants to have good relations with its neighbour, Turkey," Mr. Pangalos said, accusing it of "endangering stability and safety in the region."

The foreign minister said Turkey continued to violate the terms of the EU- Turkey Customs Union and to dispute Greece's territorial integrity at Imia and "in an unlimited number of isles and islets in the Aegean."

Mr. Pangalos said Athens did not wish to prevent Turkey's relations with the European Union in any way, providing Turkey conforms to the principles of international law and respect of human rights.

"It is inconceivable to me that the Europeans could have a different view," he was quoted as telling the Irish Times.

Papariga attacks government over its handling of farmers' protests

Speaking at a press conference in Larissa during a tour of Thessaly, Papariga said there was no such thing as an ''impasse'' to the problems facing the country in the agricultural sector and described the farmers' demands as ''specific, realistic and just''.

Rather than taking a tough stand against the farmers, the KKE leader said, the government should stand up against the European Union.

Meanwhile, the situation caused by farmers' blockades in Thessaly remained unchanged today, but farmers in northern Greece reportedly lifted 15 roadblocks.

According to sources, farmers in northern Greece are considering de- escalating their protests, in contrast with their colleagues in Thessaly, central Greece.

A meeting between Agriculture Minister Stephanos Tzoumakas and farmers' representatives in Thessaloniki yesterday ended in full disagreement between the two sides.

Farmers began setting up roadblocks with their tractors throughout the country on November 28, demanding cheaper fertilizers and fuel for agricultural use, higher produce prices, increased subsidies and favourable debt settlements.

Yesterday afternoon, farmers parked their trucks across the Athens- Thessaloniki railway, thus blockading the only route to Northern Greece which had remained open. However, the rail line to Larissa and Volos remained open.

Gov't to lodge demarch over US official's statement on national airspace

Replying to a question tabled by main opposition New Democracy (ND) party Vice President Yiannis Varvitsiotis, Mr. Rozakis said Greece may not yet have extended its territorial waters to 12 nautical miles, "but the 10 nautical miles which it uses are satisfactorily covered by the more general potential which the country has to extend its territorial waters to 12 miles."

Mr. Rozakis added that Greece "insists on its argument concerning the 10 nautical miles, on the basis also of the fact that common law and conventional law provisions exist which enable us to extend our territorial waters to 12 miles."

SEBE says customs officials strike 'untimely'

In an open letter to the finance ministry and the Federation of Customs Employees, SEBE said the strike "will give the coup de grace to export enterprises which have sustained incalculable losses due to the farmers' mobilisations."

The Federation appealed for an immediate solution to be found to avert a worsening of the situation.

George Papandreou to attend SAE meeting

Also taking part in the two-day SAE meeting will be the Parliamentary inter- party committee for issues concerning overseas Greeks, the President of the World Interparliamentary Union of Hellenism, Victoria (Australia) State deputy Dimitris Dollis and Swedish deputy Nikos Papadopoulos, both of whom are of Greek origin.

SAE President Andrew Athens is scheduled to arrive in Thessaloniki tomorrow. In the evening he will be guest of honour at a dinner given by Thessaloniki Prefect Costas Papadopoulos.

Macedonia-Thrace Minister Philippos Petsalnikos is also expected to attend the Council's sessions.

WEATHER

FOREIGN EXCHANGE

(S.S.)

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