Athens News Agency: News in English (PM), 97-05-28

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From: The Athens News Agency at <http://www.ana.gr>

NEWS IN ENGLISH

Athens, Greece, 28/05/1997 (ANA)

MAIN HEADLINES

• Simitis asks Demirel to clarify recent statements
• Foreign undersecretary briefed on UN moves on Cyprus
• Cabinet to discuss Constitutional revision
• Funds allocated for new boats
• Bank of Greece action to stabilise drachma
• More joint Greek-Turkish business initiatives urged
• Athens bourse tops emerging markets' returns
• Greece to host 1999 weightlifting championships
• New tourist guide
• Weather
• Foreign Exchange

NEWS IN DETAIL

In a brief discussion on the sidelines of a ceremony in Paris, Prime Minister Costas Simitis asked Turkish President Suleiman Demirel for clarifications about recent statements made by himself and Foreign Undersecretary Onur Oymen, government spokesman Dimitris Reppas said today.

Reppas was referring to the discussion between Simitis and Demirel on the sidelines of a signing ceremony for the recently agreed Founding Act on Mutual Relations between NATO and Russia.

According to Reppas, Demirel asked Simitis to discuss any problems, to which the Greek premier replied that each dialogue had its own rules which first had to be agreed.

Replying to reporters' questions, Reppas said the procedure being followed by Greece concerning the committees of experts to examine Greek-Turkish differences was not affected by the statements of Turkish officials.

Concerning a proposal by Demirel that Greece should sign a non-aggression pact with Ankara, Reppas said ''there is no issue'' since the Turkish president had not elaborated on the proposal.

''If he does so, we shall evaluate it,'' he added.

Reppas however spoke of the proposal in a positive manner, saying that if it was a sincere one, it would mean that the Turkish side was retracting its threat of war.

Foreign undersecretary briefed on UN moves on Cyprus

Foreign Undersecretary Yiannos Kranidiotis was non-committal on developments in the Cyprus issue after his meeting yesterday with United Nations Secretary General Kofi Annan, saying much depended on the response to invitations from the Secretary General to Cypriot President Glafkos Clerides and Turkish Cypriot leader Rauf Denktash for direct talks.

Asked at a press conference later whether he was satisfied with the UN Secretary General's handling of developments, Krandiotis said:

"It is not a question of whether I am satisfied or not. I was briefed on what he planned to to. We discussed our positions... From what I understand, he is intending to invite the two sides to hold direct talks at the beginning of July... We will wait to see the invitation and we will see how things proceed from there."

The Foreign Undersecretary contended that all aspects of the Cypriot issue should be on the agenda, with emphasis on the main issues, such as security, refugees from the occupied north, Cypriots missing since the 1974 Turkish invasion of Cyprus and settlers from Turkey.

With regard to the role of Turkey, he observed that statements such as those made in Athens earlier this week by Turkish Foreign Undersecretary Onur Oymen did not contribute to an improved climate between Greece and Turkey.

He added that Turkish intransigence was obvious with regard to all issues, including the violation of human rights and immigrants to occupied northern Cyprus from Turkey.

"Until Turkey realises that it cannot remain in Cyprus forever, violating international law and resolutions, the prospects for a solution are limited, " he commented.

Asked his opinion as to why Turkey did not withdraw from Cyprus, Kranidiotis replied:

"Turkey is on the island not simply to protect, as it maintains, the Turkish Cypriot minority, but its goals are of a long-term strategic nature, since it aims to play a major role in the region, the role of a major regional power, and to control Cyprus politically."

"We see it is maintaining the same stance with regard to Greece. Turkey systematically violates international law... and will not cooperate with its neighbours in consolidating stability and peace in the region," he said.

Cabinet to discuss Constitutional revision

The cabinet will for the first time discuss the revision of the Constitution on Friday, government spokesman Dimitris Reppas said today, adding that the issue had not yet been discussed with any politicians or state officials.

The spokesman clarified however that the revision of the Constitution had been discussed within the ruling PASOK party and the government.

''The proposal which we shall formulate will constitute the basis for a discussion,'' Reppas said, expressing the hope that all sides would agree on the substantial provisions of the revision.

Reppas underlined that the government had not yet decided on issues such as the way in which the president of the republic is elected.

The cabinet will most probably also discuss the special accounts of ministries ''with emphasis on the objective allocation of credits'', Reppas said.

In a related development, the main opposition New Democracy (ND) party accused the government of attempting to weaken the office of the president of the republic and turning the head of state into ''a decorative party figure''.

The head of the ND committee on the revision of the Constitution, Yiannis Varvitsiotis, accused the government of trying to avoid ''the obstacle'' of the election of the president by reducing the number of deputies' votes required.

Press reports have claimed that the government wants to reduce the number of deputies' votes required to elect the president from the present 180 votes to 151, which in effect would mean that general elections would not have to be called if parliament was unable to elect a president.

Funds allocated for new boats

Prime Minister Costas Simitis ordered urgent financial aid worth 1.2 billion drachmas to be granted to the Merchant Marine Ministry for the purchase of boats and other vehicles needed by the Port Police in order to improve operations.

Merchant Marine Minister Stavros Soumakis, speaking during a news conference, said that the ministry will also receive financial support worth 18 billion drachmas through the Schengen Accord for a period of three years.

Bank of Greece action to stabilise drachma

The money market appeared nervous yesterday after increased demand was shown for the European Currency Unit (ECU). The Bank of Greece intervened, providing Ecu400 million to keep the ECU at desired levels against the Greek drachma.

The ECU's parity in the fixing rate closed at 311.90 drachmas, increasing by 0.17 per cent. According to reports, the uneasiness is linked to uncertainty prevailing in many European markets due to the results of general elections in France last Sunday.

More joint Greek-Turkish business initiatives urged

The third Greek-Turkish Forum ended in Istanbul yesterday with a joint statement urging businessmen from the two countries to launch more joint activities.

The sides decided to increase cooperation on issues such as large infrastructure projects and to evaluate opportunities for joint interests, the statement said.

The two sides decided during the forum to urge their governments to promote joint initiatives between Greece and Turkey, and to sign a double-taxation agreement.

It also stressed that more joint economic activities were required, "with the belief that the forum contributed to bilateral understanding," the statement read.

The primary fields for economic cooperation were determined as being tourism and maritime transportation, while the two sides said a committee will be formed to hold detailed discussions regarding cooperation in the tourism sector.

Another committee is to be set up to conduct studies for the viability of joint projects with the European Union.

The forum's next meeting is to be held in Athens in October.

Athens bourse tops emerging markets' returns

The Athens Stock Exchange is at the centre of domestic and international investment interest as the general index breaks new ground after setting an all-time high of 1,727.70 points last Friday.

Share prices have risen more than 85 percent since the start of the year and transactions made by stock broking firms exceed three trillion drachmas.

A rapid drop in inflation and interest rates, which have made equities more attractive compared with other traditional investments (bonds, bank deposits, etc), lies behind this upsurge in the market. Forecasts of higher corporate profits in 1997 - expe cted to total one trillion drachmas, up 20 percent from 1996 - also have had a positive impact on market sentiment. Market analysts also point out that political stability and the socialist government's determination to proceed with a European Union econo mic convergence programme have encouraged foreign investors in particular.

In the medium-term, investment interest is expected to remain strong as the market awaits the flotation of about 300 billion drachmas worth of shares from the government's privatisation programme through the sale of minority stakes in Hellenic Telecommu nications Organisation (OTE), Public Petroleum Corporation (DEP) etc.

Analysts stress that the Greek market looks healthy now in comparison with 1990 when it set its previous all-time high of 1,684.31 points.

Inflation currently stands at 5.9 percent from 20.4 percent in 1990 with T- bill interest rates falling to 9.6 percent from 24 percent in that year.

The market's P/E ratio stood at 24 in 1990, double the current figure, an indication that the the Greek market looks cheap and has potential for further advance.

The Athens bourse's performance is by far the best among emerging markets, both in drachma and in dollar terms.

According to a Financial Times survey, the Greek market's returns were 58.3 percent from the start of the year until mid-May followed by Brazil with 33.7 percent and Turkey with 33.1 percent in dollar terms.

Greece to host 1999 weightlifting championship

Greece will hold the 1999 World Weightlifting Championship following the decision today of the sport's international federation which is convening in Cape Town, South Africa.

The event was awarded to Greece without a vote, since Germany which had also expressed interest in staging the championship withdrew at the last moment when it became clear that the majority of federation members favoured Greece.

The championship has already been held twice in Greece, once in Thessaloniki in 1979 and more recently in Athens in 1989.

The 1999 championship is considered to be particularly important due to the fact that the next Olympic Games takes place the following year in Sydney, Australia.

New tourist guide

A new tourist guide "Holiday Greece" was presented to the public yesterday.

The guide gives information on all destinations in Greece as well as maps and useful information for holiday makers and is available in English and Russian.

WEATHER

FOREIGN EXCHANGE

(M.P.)

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