Athens News Agency: News in English (AM), 97-10-24

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

NEWS IN ENGLISH

Athens, Greece, 24/10/1997 (ANA)

MAIN HEADLINES

• Harassment of Greek minesweeper by Turkish vessel
• More Athens FIR infringements by Turkish warplanes
• Greece satisfied with US official's retraction
• Tsohatzopoulos concedes US exerting pressure
• European Court: Greek tax on used-car imports illegal
• Greek equities end sharply lower
• Merchant Marine ministry sets up procurement agency
• OTE-Price-Waterhouse agreements
• Fourth Greek-Turkish business forum opens
• Ethnic Greeks on Imvros 'hostages of poor Greek-Turkish climate'
• Al Gore praises Patriarch's environment protection efforts
• Cultural Olympiad idea raised at UNESCO
• Gov't promises 19 new sports facilities before 2004 Olympics
• Weather
• Foreign exchange

NEWS IN DETAIL

A Turkish naval vessel harassed a Hellenic Navy minesweeper in international waters in the Aegean on Wednesday, national defence ministry sources reported yesterday.

According to a statement by the Hellenic Navy General Staff yesterday, a Turkish patrol boat (P-133) at 10:45 a.m. Wednesday "dangerously approached, at a distance of five to 10 metres, and harassed the minesweeper 'Avra', which was sailing with a stead y course at six knots in international waters south of Lesvos, while additionally, it (the Turkish vessel) was not responding to calls by the minesweeper 'Avra' on the international call and communication frequency Channel 16 for its departure.

"Instead, the Turkish patrol boat approached the minesweeper Avra from the stern and passed with a greater speed at a short distance of about five metres from the right, causing - either due to mishandling or on purpose - it to touch its left stern with the minesweeper Avra's starboard right side, causing paint scraping."

The statement added that no Turkish submarine was in the area, "therefore, claims of attempts to ram a Turkish submarine is a distortion of the truth and the real incidents, as well as an attempt to cover-up the unacceptable act of harassment".

The semi-official Anadolu news agency quoting a Turkish foreign ministry statement said the two vessels collided when a Hellenic Navy minesweeper harassed a Turkish submarine that was attempting to emerge, while the Turkish vessel tried to protect the submarine.

More Athens FIR infringements by Turkish warplanes

Ten formations of Turkish F-16 and F-4 fighters infringed on Athens FIR regulations 11 times and violated Greek national airspace 12 times in the sea region between the islands of Hios and Lesvos between 4 and 6 p.m. yesterday.

In all cases the Turkish aircraft were intercepted by Hellenic Air Force planes, while in one case the interception procedure developed into an engagement.

Greece satisfied with US official's retraction

Government spokesman Dimitris Reppas yesterday expressed satisfaction over a statement of retraction by US State Department spokesman James Rubin, saying he had spoken "with a sense of responsibility and this does him honour". Mr. Rubin on Monday appeared to justify the harassment by Turkish warplanes of the aircraft carrying National Defence Minister Akis Tsohatzopoulos to, and from, Cyprus, claiming it had violated an agreed moratorium on flights over the island republic.

Athens responded sharply, describing Mr. Rubin's statement as "unacceptable and unprecedented". The next day, US special emissary for Cyprus, Richard Holbrooke, said the harassment was a "reality" and the US State Department was wrong in not outrightly admitting it.

Mr. Rubin on Wednesday retracted his earlier statement saying:

"On Monday I didn't do my job properly. The last 24 hours, top officials of the US administration have set the issue before the Turkish government...We have expressed directly to the Turkish government our position that we find the act of (their) flying near the aircraft of the Greek defence minister disturbing..."

Reppas also commented on an incident Wednesday during the briefing of NATO defence attaches at the national defence ministry. As the attaches were requesting clarifications about the mid-air harassment incidents, the Turkish defence attache said Ankara desired good relations with Greece and Cyprus and had proven this in 1974 when "although it could have seized the whole of Cyprus, it seized only half."

Mr. Reppas described the Turkish official's remarks as "a foolish provocation which shows that Turkey has very little self-confidence and great insecurity."

"Such statements are ridiculous and dangerous. Such boasts have no place in contacts between the officials of various countries," Mr. Reppas added.

Tsohatzopoulos concedes US exerting pressure

National Defence Minister Akis Tsohatzopoulos acknowledged yesterday that Washington was exerting pressure on Greece and Turkey with the aim of defusing the crisis between the two countries and settling issues which cause tension, according to informed so urces.

Briefing the parliamentary committee for defence and foreign affairs behind closed doors, Mr. Tsohatzopoulos also did not rule out the possibility of a major incident in the Aegean involving Greece and Turkey.

According to the same sources, Mr. Tsohatzopoulos was speaking about the provocative stance of Turkey and the continuous Athens FIR infringements and Greek airspace violations by Turkish warplanes.

Mr. Tsohatzopoulos assured the committee that the government was taking all the necessary steps internationally while strengthening its diplomatic position and defence.

During the briefing session, Mr. Tsohatzopoulos spoke out about the new structure of NATO, while the committee also discussed matters pertaining to the country's security and defence.

European Court: Greek tax on used-car imports illegal

The European Court of Justice said yesterday that Greece's special consumer tax on imported used-cars was illegal under Community tax rules.

Greece imposes a special consumer tax rate on private cars imported into Greece. The flat-rate tax is payable the first time a car is registered in Greece - whether it is new or used - and used cars are taxed as though they were new, according to court documents.

Although Greece lowered taxes on cars with anti-pollution devices, imported used cars were not eligible for those reduced rates.

The Court agreed with the Commission that Greece's tax system was a violation of single market rules prohibiting taxes on goods imported from other member states.

"It is common ground that imported used cars and those bought locally constitute similar or competing products and article 95 therefore applies to the special consumer tax charged on the importation of used cars," the court said.

Greece's finance ministry in a statement released in Athens shortly afterwards said that a new system under proposal would not lead to any fundamental changes in the domestic car market.

The government's intention is to seek a modernisation of the car fleet with the promotion of advanced low-pollution technology.

Greek equities end sharply lower

Greek equities came under renewed pressure yesterday to end sharply lower on the Athens Stock Exchange.

Traders said the market resumed its short-term correction trend following a shortlived rebound on Wednesday. Investors remained on the sidelines ahead of the presentation of next year's budget by the government in mid- November.

The general index closed 1.46 percent lower at 1,710.66 points. Sector indices lost ground. Banks fell 1.13 percent, Insurance eased 1.89 percent, Leasing dropped 2.40 percent, Investment fell 0.97 percent, Construction plunged 2.84 percent, Industrials eased 1.70 percent, Miscellaneous was 2.77 percent off and Holding dropped 1.55 percent.

The parallel market index for small cap companies was 2.18 percent down.

Turnover was moderate at 19.1 billion drachmas.

Broadly, decliners led advancers by 187 to 35 with another 18 issues unchanged.

Keranis, Cambas and 3A scored the biggest percentage gains, while Nirefs, Radio Athina, Chalyps Cement and Katselis suffered the heaviest losses.

National Bank of Greece ended at 31,200 drachmas, Ergobank at 18,600, Alpha Credit Bank at 20,300, Delta Dairy at 3,995, Titan Cement at 15,740, Intracom at 15,590 and Hellenic Telecommunications Organisation at 6, 500.

In the domestic foreign exchange market the US dollar fell by 0.09 percent against the drachma.

Merchant Marine ministry sets up procurement agency

Greece's merchant marine ministry has set up a new company to undertake all types of capital and operational equipment procurements of the ministry.

The company, Capital Equipment SA, has a capital of 50 million drachmas and an initial duration of twenty years.

The Greek state is the sole owner of the company.

OTE-Price-Waterhouse agreements

The board of the Hellenic Telecommunications Organisation (OTE) has accepted a proposal by the brokering firm Price-Waterhouse for two agreement plans amounting to about 360 billion drachmas at an initial phase. According to reports, the agreements will be of a three- or five- year duration and one concerns digitalisation material and the other conventional equipment.

A market assessment and monitoring committee is also anticipated.

In the event another proposal is made by third parties with better prices, the contractors will be called immediately and an improvement in price will be requested. If they do not agree, the contract is dissolved and they will resort to arbitration.

Fourth Greek-Turkish business forum opens

Greek-Turkish business relations have overcome past reservations and were developing in a climate of mutual trust, while specific action was being taken to promote joint business plans, Thanassis Lavidas, chairman of the Union of Greek Businessmen told a Greek-Turkish business forum yesterday.

Speaking during the opening session of the fourth annual forum in Athens, Sarik Tara, vice-chairman of Turkey's business council, told businessmen that the Balkan summit in Crete early next month provided a great opportunity to improve bilateral relations.

He confirmed that Turkish Prime Minister Mesut Yilmaz would be attending the summit and underlined that Turkish businessmen were pressing both political and military leaders in the country in order to improve Greek- Turkish relations. Mr. Tara called on his Greek counterparts to do the same.

About 25 Greek and 30 Turkish businessmen are attending the fourth Greek- Turkish forum.

The agenda includes creation of joint ventures between construction companies, aimed at landing projects in the wider Balkan region and the development of cooperation in the tourism sector.

Other issues are the avoidance of double taxation and the possibilities of utilising European Union programmes concerning the Balkans which necessitate cooperation between Greece and non-EU countries.

Addressing the same forum, Greek Tourist Organisation (EOT) Secretary General Nikos Skoulas said Greece and Turkey constitute a common tourist market and appeal to the same tourists, particularly if whatever differences separating the two peoples are forgotten.

Mr. Skoulas said the development of cooperation between Greek and Turkish businesspeople is possible in the tourist sector, since the two countries resemble each other in many ways with regard to natural beauty, climate and hospitality.

Ethnic Greeks on Imvros 'hostages of poor Greek-Turkish climate'

Luxembourg Foreign Undersecretary and acting president of the Council of Ministers, Mr. Wolfart, has described the ethnic Greek residents of the Turkish-controlled island of Imvros as "hostages" of the poor climate between the two countries.

"The Council expresses its regret over the fact that the right to property of a non-Moslem minority, for which guarantees are provided by international treaties, is hostage due to the poor climate prevailing lately between Turkey and one member-state," he said.

His comment came in response to a question by Greek Euro-MP Mihalis Papayiannakis regarding Turkey's new land register, through which, the authorities, in violation of article 14 of the Treaty of Lausanne are trying to usurp the properties of the ethnic Greek residents.

Al Gore praises Patriarch's environment protection efforts

US Vice-President Al Gore stressed the importance of the visit by Ecumenical Patriarch Vartholomeos at a breakfast yesterday in the Patriarch's honour.

"Your words on the protection of the environment dispel the doubts of sceptics and strengthen our efforts," Mr. Gore said, adding that US President Bill Clinton had made extensive references to Vartholomeos' comments when presenting the first US plan for fighting the "greenhouse effect".

Vartholomeos left Washington yesterday for Baltiomore. His next stop is New York.

Cultural Olympiad idea raised at UNESCO

The idea of a cultural Olympiad and cultural Olympics were the main issues in a speech by Culture Minister Evangelos Venizelos at the 29th congress of the UNESCO general conference yesterday.

Mr. Venizelos linked the idea with the return of the Parthenon marbles from Britain and said this "is not a demand of the Greek government but of the monument itself that calls for the restoration of its aesthetic and architectural unity".

UNESCO Secretary General Federico Mayor, with whom Mr. Venizelos, met earlier and discussing the issue of the marbles' return, will be visiting Thessaloniki on Dec. 8, opening day for the international conference for environmental education.

Gov't promises 19 new sports facilities before 2004 Olympics

Sports Undersecretary Andreas Fouras said 19 new sports installations will be completed in the next few years, in accordance with a candidate file for the 2004 Olympics.

Speaking to reporters yesterday, Mr. Fouras said the projects planned are the following: an Olympic village; an electronic media centre (at the Athens Olympic Stadium), a written media centre; an Olympic tennis centre; a multi-purpose complex in Faliro; the Faliro baseball park; a Faliro softball park; a Faliro beach volley centre; Karaiskaki Stadium (amendments for field hockey), an indoor arena in Galatsi; a weightlifting arena in Nikea; an Olympic sailing centre at Agios Kosmas; modern Pentathlon ins tallations at Goudi; an Olympic riding centre at Tatoi; an Olympic archery ring at Tatoi; an Olympic shooting complex at Markopoulo; an Olympic canoeing centre at Schoinias; crew installations at Schinias and the Panthessalian Stadium at Nea Ionia, Volos.

Mr. Fouras added that, apart from the 19 new projects, considerable improvements will be made to existing installations, including at the Nikos Goumas Stadium in the Nea Philadelphia district (the home stadium of AEK), the Kaftantzoglio Stadium in Thess aloniki and the Patra National Stadium.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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