NEWS IN DETAIL

Greece to wait and see Iranian mediation proposal

"If a delegation from Iran wants to visit Athens, Greece will listen to its views because there is no reason to reject any effort before the fact," government spokesman Dimitris Reppas said.

Reppas was responding to questions regarding reports that Iranian Foreign Minister Ali Akbar Velayati would send a delegation to Athens in the near future to mediate in disputes with Turkey.

The reports, carried by the official Iranian newws agency IRNA on Sunday, said Turkey had welcomed the mediation proposal.

"On the basis of our positions we are open to seeing what each initiative is," Reppas added.

Inquiry into gunboat sinking released

Four Kostakos crewmen lost their lives in the accident.

The report, which was released today, was compiled by a Hellenic Navy committee of experts,

The Kostakos was taking part in the all-service "Parmenion" military exercise when it was rammed by the "Samaina" off the coast of Samos in the northeastern Aegean.

According to the report, ensign Mihalis Damoulkas left his post on the bridge of the missile boat, thus losing visual contact with the Samaina. The report says Damoulkas acted on the conviction that the Samaina was sailing at a "safe distance."

Having left his post, Damoulkas was not in a position to realise that Samaina had changed its course, and therefore did not take the necessary steps in order to prevent the accident.

The report also blamed the Samaina for ineffective use of the radar system and captain Matheos Pnevmatikakis the ineffective use of navigational instruments and excessive speed.

Reppas: government committed to solving farmers' problems

"The government is satified because a sense of realism, prudence and responsibility has prevailed," Reppas said.

Commenting on Prime Minister Costas Simitis's meeting, earlier in the day with the leadership of the three main agricultural groups, Reppas said a new round of systematic dialogue will officially commence on 10 January when the prime minister will announce the government's agricultural policy at the Agricultural Policy Council meeting.

Stressing the need for understanding, Reppas said the government has and continues to show good intentions for the finding of a "common language" based on the axis of the existing policy.

Greece started moving again on Sunday as the last of the road blocks on the nation's highways and rail links were lifted by farmers, ending a 24-day protest that had brought the country to a virtual standstill and dealt a crippling blow the economy.

Parliament approves 1997 budget

The budget was passed with 160 votes in favour and 136 against. Four deputies were absent from the vote.

Main opposition New Democracy party and Democratic Social Movement (DHKKI) party deputies, however, voted in favour of the national defence ministry's budget. Closing a five-day parliamentary debate on the government's economic plans for 1997, Prime Minister Costas Simitis said that the government's budget was the "only conclusive proposition" to the economic problems of the country.

"Participation in Economic and Monetary Union is a matter of national survival, development and security," the premier said stressing that Greece is last on the list of EU member-states to qualify for EMU membership.

"The dilemma is clear," he said. "Either Greece will play the ostrich, raising protective walls to international competition, a road amounting to national catastrophe ... or it will get on the road for international competition."

Stressing that the proposals put forward by the opposition parties would lead nowhere but, rather, would worsen problems, the premier reiterated that "all Greeks should contribute accordingly to the national effort... in order to strengthen those weaker financially."

"Greece is one of the very few EU countries to give real increases in incomes while also increasing social policy funds," the premier said.

Accusing the opposition of being overwhelmed by "an atmosphere of misery and barren reaction," the prime minister said that since ruling PASOK took office, inflation has fallen to 7.7 per cent from 12.3 per cent while the deficit came down to 7.6 per cent from 14.2 per cent. He admitted, however, that problems do exist, but expressing the conviction that a huge step towards resolving them will be made in 1997.

Main opposition New Democracy party leader, Miltiades Evert, described the budget as "a document of political deceit" and a "monument of non- credibility" and "inconsistency."

Mr. Evert said the government's economic measures were "cruel" and "unfair, " adding that "the low inflation target forecast by the budget is to deceive employees regarding the government's income policy and limit pay increases and pensions."

"This," Mr. Evert said,"is political deceit."

New Democracy extraordinary congress for February-March

The Committee rejected two proposals by leadership contender George Souflias for discussion and agreement in the party's Political Council on enlarging the representation at the congress from the party base.

Christmas wishes to expatriate Greeks

"Your compatriots, relatives and all Greeks are proudly mindful of your achievements, because, indeed, with your spiritual and material progress, you do justice to the name of Greece everywhere," he said.

Tsovolas predicts New Democracy split

Speaking in Thessaloniki on the first anniversary of his party's founding yesterday, he said DHKKI must form a broad social-developmental front with the forces of labour and production, which would have to be activated in the framework of a new Europea n progressive movement.

Council of State hears environmental case

Karamanov said such permit was incompatible with the need to protect a region of natural beauty, at the same time stressing the need to protect the bay that is teeming with fish.

The case was referred to the Council of State - Greece's highest administrative court - by an ecological group and a Lesvos community and requests that an environment, town planning and public works ministry approval of the environmental study for the installation of the fuel tank be revoked.

The case is still pending.

Prosecutor calls for deportation of four Iraqis wanted by Interpol

The four - identified as Aziz Mohamed, 28, Hussein Simpik, 33, Hamid Siad, 28 and Rashid Halil, 34 - were arrested by customs officials at the Greek- Bulgarian border after being found in possession of stolen passports.

The four are wanted by Interpol for allegedly stealing 100-150 passports from public services and travel agents in Belgium in 1993.

WEATHER

SPORTS

Xanthi - Panathinaikos 1 - 3
Edessa - OFI           1 - 2
AEK - Veria            3 - 1
Kavala - Ionikos       2 - 0
Panahaiki - Heraklis   0 - 0
Aris - Kastoria        2 - 0
Athinaikos - Kalamata  1 - 1
Olympiakos - PAOK      1 - 0

Standings (points)

Olympiakos    32
Panathinaikos 29
OFI           29
AEK           26
Kavala        22
Pyrgos        21
Panahaiki     20
Veria         19
Kalamata      18
PAOK          15
Ionikos       15
Xanthi        13
Aris          13

FOREIGN EXCHANGE

(M.P.)

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