Athens News Agency: News in English (AM), 98-12-30

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

ATH 3 02244 NEWS IN ENGLISH

Athens, Greece, 30/12/1998 (ANA)

MAIN HEADLINES

• Cyprus decides non-deployment of S-300 missiles, Greece agrees
• Greek political party reactions
• US State Department comments
• Aid on the way for Kurdish refugees
• Tsohatzopoulos to visit Tirana today
• Greek long-term rates seen converging in 1999
• Profit-taking halts rally of prices
• Hellenic Petroleum launches new petroleum products unit
• Plastic pipes sector shows upward trend
• Weather
• Foreign exchange

NEWS IN DETAIL

Cyprus President Glafcos Clerides announced last night a decision for the non-deployment of the Russian-made S-300 surface-to-air missiles on Cyprus.

He said in a two-page written statement after consultations with the Greek government in Athens in the morning and a three-hour session of the island's National Council that he would negotiate with the Russian government a possible alternative deployment of the missiles on the island of Crete.

President Clerides said that in reaching this decision, he took seriously into account the positions of the Greek government and of the majority of the National Council which supported the need for a joint decision between the governments of Greece and Cyprus.

"I assume responsibility for this decision and I feel the obligation to underline that the sole and exclusive criterion in taking this decision was the interests of the Cypriot people and the broader interests of Hellenism.

President Clerides said that Cyprus now awaited implementation of Security Council resolutions and the fulfillment of international commitments undertaken at the highest level. He added that with its decision, Cyprus is providing the international commu nity with the opportunity of paving the way for the demilitarisation of Cyprus and the resolution of the Cypriot problem, and expects results in a reasonable period of time.

Prime Minister Costas Simitis expressed his support for President Clerides' decision not to install the S-300 surface-to-air missiles on the divided island.

"It is a decision which the Greek government fully backs", the premier said.

He added that "the question was and still is that progress is achieved in the efforts to resolve the Cyprus problem and the consolidation of a feeling of security to Cypriot Hellenism".

He explained that the cultivation of conditions of tension is the Turkish side's fixed target, while on the contrary, Greece has an interest in persevering with diplomatic efforts, respect for international legality, and utilisation of all possibilities for a comprehensive and peaceful solution of the Cyprus problem.

"The recent Security Council resolutions on Cyprus and the statements by foreign leaders that followed, can be an important positive development to reduce tensions", Mr. Simitis underlined.

The two UN resolutions Mr. Simitis referred to renewed for six months the mandate of the Peacekeeping Force on the island and called on both communities to respond positively to the organisation's efforts to secure agreement on measures to reduce tensi on and build confidence between them.

Mr. Simitis further placed emphasis on the fact that increasing international awareness for Cyprus, which is now taking the form of concrete proposals and commitments by international bodies, give rise to solid hopes for a new coordinated effort to establish peace and pave the way for negotiations to resolve the long-running problem.

"The responsible decision just taken by President Clerides must then be assessed in the context of a new effort to raise the substance of the issue through new procedures. The joint Greek-Cypriot effort will now focus on fully exploiting the dymanics cr eated by these developments", the Greek premier said. According to Mr. Simitis, military cooperation between Greece and Cyprus will continue within the context of two states' joint defence doctrine, with its continuing develop-ment being a perma nent and clear political decision.

Reffering to the decision to install the missiles on Crete -following the necessary deliberations with Russia- Mr. Simitis said that it was part of the joint defence doctrine planning, which will boost Cyprus' defence and protection.

"Greece guaranteees the right of Greek Cypriots to live in security and will continue to defend that right by all means availble", Mr. Simitis stressed.

The Greek prime minister also pledged that Greece will promote Cyprus' EU accession as it has done up to now, believing that the island's admission into the union will safeguard unhindered and peaceful development and prosperity of the whole of Cyprus.

In a related development, the leader of Cyprus' Socialist party (EDEK), Vassos Lyssarides, said yesterday that Greece was advising Nicosia to change its decision to install the S-300 missiles, not because it might lead to war with Turkey but because it would negatively affect the prospects of full EU membership for Cyprus.

EDEK is a junior partner in the Cypriot coalition government and holds the defence ministry portfolio.

According to an ANA despatch from Nicosia, Mr. Lyssarides added that it would be naive to believe that Cyprus' accession prospects were so fragile that they would be destroyed by the deployment of a defensive weapons system.

Stressing that for his party the missile issue was a political rather than a military one, Mr. Lyssarides reiterated that EDEK would definitely withdraw from the government if the S-300 were eventually not deployed in Cyprus.

Greek political party reactions

Main opposition New Democracy party spokesman Aris Spiliotopoulos yesterday said that the government was responsible for the developments on the S-300 missile issue.

He claimed that Greece "cashed in the results" of the wrong choices made by the government in exercising foreign policy.

He added that "no one ever explained to the Greek people, how, why and with which aim and prospect the purchase and deployment of the S-300 on Cyprus was decided.

The Communist Party of Greece (KKE) in its press release said that the development of the issue proves that the partition of the island is kept secret, the process of the island republic's accession to the European Union "which is the leverage for the partition" is presented as salvation for the Cyrpus problem, it is not allowed by a small country to purchase defensive arms and the joint defence doctrine has gone "totally bankrupt."

US State Department comments

A State Department spokesman said yesterday that Cyprus' decision not to deploy the Russian-made S-300 defence missiles on the island republic was welcomed by the United States.

"We welcome and support President (Glafcos) Clerides' decision not to bring the S-300 missiles to Cyprus", said Mr. Lee McClenny of the State Department, adding that "we commend the government of Cyprus for taking this important step for easing tensions on the island".

"This action will give important new impetus to UN Secretary General AnnanYs 30 September initiative to reduce tensions and promote a just and lasting settlement of the Cyprus dispute" he said.

"The UN Security Council, in UNSC resolution 1218 adopted December 22, strongly endorsed the Secretary General's initiative and urged him to intensify his efforts.", Mr. McClenny said, adding that "As President Clinton said in his December 22 statement,the U.S. wholeheartedly supports this resolution and will take all necessary steps to support a sustained effort to implement it".

Aid on the way for Kurdish refugees

Labour and Social Insurances Minister Miltiades Papaioannou has ratified the provision of foodstuffs and pharmaceuticals in aid to Kurdish refugees in Greece in light of the current holiday period. Financial backing amounting to two million drachmas will be provided by credit from the Manpower Employment Organisation (OAED) for the purchase of foodstuffs and pharmaceuticals, which a three-member committee of OAED will obtain and provide for the Kurds' representative body in Greece.

Tsohatzopoulos to visit Tirana today

National Defence Minister Akis Tsohatzopoulos leaves today for a one-day visit to Tirana at the invitation of his Albanian counterpart Luan Hajdaraga.

Mr. Tsohatzopoulos is scheduled to meet with Prime Minister Pandeli Majko for talks centering on bilateral issues, while he will also visit the Greek military force stationed in Isberi.

Greek long-term rates seen converging in 1999

Greek long-term interest rates will accelerate their decline in 1999 to converge with eurozone rates, Finance Undersecretary Nikos Christodoulakis said.

He forecast that 10-year state bond yields will drop to 5.2 percent by the end of 1999 from 7.12 percent currently, achieving the long-term interest rate criterion to participate in European Economic and Monetary Union.

Announcing the government's state securities issuing pogramme for the first two months of 1999, Mr. Christodoulakis said that next Monday and Tuesday the finance ministry will offer to investors tax-free deposit bonds of two- year duration, yielding 10 percent from 10.3 percent in the previous issue.

Next year's programme included launching of 15-year bonds on January 5, five-year bonds on January 12, three-year bonds on January 19 and 10-year bonds on January 26.

The programme also includes issuing of 12-, six- and three-month bonds in February.

The finance ministry successfully auctioned its last issue of 12-month Treasury bills in 1998.

Participants in the domestic market of primary dealers submitted bids totalling 408 billion drachmas. The ministry finally accepted bids totalling 220 billion.

The average weighed yield fell to 10.3 percent from 10.5 percent in the previous auction.

Profit-taking halts rally of prices

Greek equities ended slightly lower yesterday as profit taking reversed a six-day advance of prices on the Athens Stock Exchange.

The general index ended 0.21 percent off to 2,665.12 points after gaining 7.6 percent in the previous six sessions. Traders said the market needed a correction to let some steam off the year-end rally. Turnover was heavy at 100.7 billion drachmas with turnover at 18,966,000 shares.

Sector indices were mixed. Banks fell 0.90 percent, Leasing were 0.63 percent down, Insurance eased 0.21 percent, Investment dropped 0.91 percent, Construction jumped 2.42 percent, Industrials fell 0.26 percent, Miscellaneous rose 1.19 percent and Holding gained 2.45 percent.

The parallel market index for small cap companies rose 0.41 percent. The FTSE/ASE 20 index fell 0.35 percent to 1,680.85 points.

Sysware, Heracles Cement, Mytilineos and Attica Enterprises were the most heavily traded stocks.

Broadly, decliners led advancers by 148 to 110 with another 17 issues unchanged.

Dimitriadis, Papoutsanis, Drukfarben, Aspis Bank, Korinth Spin Mills, Aegek, Bitros and Kyriakoulis Yachts hit the day's 8.0 percent limit up.

Technodomi, Sportsman, Elfico, Minerva, Sato, Bank of Athens, Benroubi, Macedonian Plastics and Nafpaktos Mills suffered the heaviest losses.

National Bank of Greece ended at 60,700 drachmas, Ergobank at 30,890, Alpha Credit Bank at 28,900, Ionian Bank at 15,000, Hellenic Telecoms at 7,200 Delta Dairy at 3,900, Intracom at 12,250, Titan Cement at 20,400, Hellenic Petroleum at 2,190 and Minoan Lines at 6,330.

Hellenic Petroleum launches new petroleum products unit

Greek Development Minister Vasso Papandreou yesterday inaugurated a new oil product unit in Hellenic Petroleum's refinery facilities in Aspropyrgos.

The Total Isomerism Unit, worth five billion drachmas, is the first of a series of projects promoted by Hellenic Petroleum to develop a new environment-friendly range of oil products in the framework of the Auto-oil I programme to be implemented in 1999 .

Plastic pipes sector shows upward trend

The plastic pipes sector is in a maturity phase, while a new potential is appearing from the increased use of the sector's products in new applications, displacing other traditional materials.

The above developments are referred to in the latest sector study by the Foundation for Economic and Industrial Research (IOBE) titled the "Plastic Pipes Sector" prepared by Mr. I. Yiannaros and Mr. G. Zaharakis.

IOBE said that the sector's market has an oligopolistic structure and is headed by the Petzetakis Group.

A continuous effort by enterprises in the sector is being observed to shrink their total cost, while at the same time an increase in sales with the creation of new products is being attempted.

The sector's upward trend has been apparent in the '90s and has resulted in the activation of more businesses in the sector, without the oligopolistic nature of the sector being altered.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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