The ongoing process of dialogue between Greece and Turkey on issues of common interest has made satisfactory progress, while the two sides have decided to expand it, Foreign Minister George Papandreou said in New York yesterday after a working breakfast with his Turkish counterpart Ismail Cem.

"Some months ago we began a process of discussions on issues of common interest between Greece and Turkey. It is a tedious and systematic process which has a long-term goal and is proceeding step-by-step.

"Today, we confirmed this process and had the opportunity to assess the steps made so far. We consider that these are initially positive and that the two rounds have made satisfactory progress," he said.

"We have decided that within this framework we shall expand the goals of this dialogue in the following sectors: First, cooperation in issues of energy, and more specifically, the transfer of energy from one country to the otherISecond, in scientific co operation in anti-seismic protection, followed by the joint Greek-Turkish proposal which we have announced at the UN.

Questioned on the Cyprus issue, he said, "what we are asking is substantive discussion, at last".

"Yesterday's statement by the foreign ministers of the five permanent members of the Security Council, describing the current situation unacceptable, was particularly satisfactory," he added.

Asked whaat Greece would do if Turkey persisted with its intransigent stand over Cyprus, Mr. Papandreou said: "First, we stand by our positions and hope that the recent improvement in relations P without this meaning that problems have been overcome P a llows us to proceed to a step-by-step process which will lead to further improvement and the solution to the Cyprus problem, as well as, of course, to substance in Turkey's European orientation."

Earlier, Papandreou stated in response to remarks by New Democracy party spokesman Akis Spiliotopoulos on Thursday, regarding an interview with the Turkish daily 'Milliyet', that Greek land, sea, and air borders are fully respected and indisputable.

"The concern expressed by Mr. Spiliotopoulos, in his statement, is curious indeed. Mr. Spiliotopoulos knows full well that Greek positions are permanent. May I remind that a few days ago I briefed New Democracy president Costas Karamanlis, who did not e xpress any disagreement regarding our approach on the issue of European Union relations with Turkey. I would like to repeat that the land, sea and air borders are fully respected and indisputable," he said.

"The Greek government does not aim at eliciting symbolic gestures but at achieving substantive progress on all issues, including the Cyprus issue," he added.

The ND spokesman has charged that Mr. Papandreou's statement in the interview, namely, that Athens in the framework of the European Union had made "a unilateral gesture and did not expect anything in return" was astounding. He also charged that the stat ement citing that "differences between Greece and Turkey over borders and the sea are not so significant" was provocative.

German wins Spartathlon

Exhausted but equally elated, Germany's Jens Lukas glowed in disbelief after winning this year's Spartathlon, a gruelling 246 km running race from Athens to the southern Peloponnesian town of Sparta on Saturday morning.

"I dare not believe I have won the race. When I started from Athens, my only aim was to finish. It is a very difficult race, an overwhelming experience," he said.

"Several times I feld aching all over and believed I would abandon. But people encouraged me and I lasted till the end," he added.

Lukas, who covered the distance in 25 hours, 38 minutes and three seconds, took the lead at the 172nd kilometre and arrived in Sparta at 8.30 am. France's Jean Pierre Guillomars came second with 27:8:27, and Yun Onoki of Japan third with 27:16:36.

Participants in this year's Spartathlon, which has been held for 17 consecutive years, were adversely affected by relatively high temperature and humidity levels. Blind French runner Jean Claude Peronet abandoned the race at the 192nd kilometre.

Papantoniou to US to speak on Greece

National Economy Minister Yiannos Papantoniou is to speak at the Woodrow Wilson Center in Washington on Greece's role in the Balkans and SE Europe, on the sidelines of the upcoming annual session of the International Monetary Fund and the World Bank, reports say.

He is also to address US business leaders in New York on the Greek economy and investment opportunities in the country.

Papantoniou is leaving for Washington on Sunday.

Tsohatzopoulos interview with CNN

Greece was not obstructing Turkey's candidacy for EU membership but, on the contrary, was open to the prospect of Turkey joining the list of candidate- countries, Defence Minister Akis Tsohatzopoulos on Thursday stated during an interview on CNN.

Asked whether Greece, following a recent thaw in Greek-Turkish relations after the two countries rushed to each other's assistance when deadly earthquakes struck both recently, would obstruct Turkey's EU prospects, Mr. Tsohatzopoulos replied:

"I wouldn't say that Greece is the force that is obstructing Turkey's candidacy for membership in the European Union. Quite the opposite, I would say, Greece is open to Turkey's prospect for inclusion among the candidates for EU membership, which it see s as a positive prospect. We can say that with certainty."

"Of course, together with the other EU member-states, we follow some crystal-clear conditions, which must be the same for all countries. In other words, respect for international law, human rights, etc. And this is something that must be respected by al l the members of the EU," he added.

Questioned on whether the "new, noteworthy atmosphere of solidarity" could help in resolving the Cyprus problem, Mr. Tsohatzopoulos replied that he hoped so, "because now is the appropriate moment to take advantage of the climate that has been created b etween the two countries".

He expressed a hope that Turkish Cypriot leader Rauf Denktash "will be ready to respond" to UN Secretary General Kofi Annan's invitation for negotiations between Cyprus President Glafcos Clerides and Mr. Denktash and that the talks could commence in the immediate future.

"The time is right, because the climate in the relations between the two countries (Greece and Turkey) is positive, the disposition of the international community is positive, and the US have made it clear that President Clinton is reinvigorating his ef forts for finding a solution as quickly as possible, perhaps even by the end of the year," Mr. Tsohatzopoulos said.

"For that reason, it is necessary that we try again now," he added. Asked whether Greece no longer saw Turkey as an "enemy", Mr. Tsohatzopoulos said "we are not enemies. We have some antagonism, without doubt".

"Turkey sometimes has claims against Greece, which we do not recognise. We propose that the issue be taken before the International Court of Justice at The Hague for resolution," he stressed.

"At any rate, I believe that if the climate is possible and if the principles of international law are respected by all countries, then we can open up a road of rapprochement," Mr. Tsohatzopoulos said.

Picasso-related exhibition in Athens

Spanish Prime Minister Jose Maria Aznar's wife, Anna, along with Madrid's Culture Minister Miguel Angelo Cortez and a host of other dignitaries attended the opening of the exhibition "Pablo Picasso P Studies on Guernica" at the Museum of Cycladic Art in c entral Athens yesterday evening.

The exhibition comprises a number of pencil drawings made by Picasso in a space of a few weeks between May and June 1937 that led to the creation of his best-known masterpiece, Guernica.

On April 27, 1937, the small Basque town of Guernica was razed to the ground by German aircraft in fierce bombing, and Picasso's drawings, as well as the painting itself, reflect the horror and pain suffered by the people, and the futility of warfare.

The exhibition is on loan from the collection of the Queen Sophia National Art Centre Museum in Madrid, and includes a replica painting of Guernica 10 per cent smaller than the original in size, eight photographs from the various stages of the project, and works by surrealist photographer Dora Maar, Picasso's companion during the war years.

The exhibition will run through Dec. 31.

At the opening, Greek Culture Minister Elizabeth Papazoi called the work 'unique' in terms of 20th century art and a distinct anti-war symbol.

Archbishop of Athens and All Greece Christodoulos along with Spanish ambassador to Athens, Javier Jimenez Ugarte, were also in attendance. In a related development, it was announced that an exhibition featuring the works of 'El Greco' will open at the N ational Art Gallery in Athens on Oct. 18.

Earlier in the day, Mrs. Aznar visited the Acropolis accompanied by Daphne Simitis, the wife of the Greek premier.

Greek fisheries cite expanded business role

Greek fisheries constitute one of the most dynamic sectors in the country's economy, while about 250 Greek fishery firms are among the best organised firms in the sector throughout Europe.

These businesses employ 10,000 people and their total production exceeds 400,000 tons annually. The sector's annual exports yield exchange amounting to over 50 billion drachmas for the economy.

The data was disclosed at a conference jointly organised yesterday by the administration of the Federation of Greek Fisheries and the Thessaloniki International Fair's (TIF) conference department in the framework of the 7th ALIIA.

It was stressed that technological development is rapidly transforming fishing activities in the country. As a result sea products of commercial interest are passing one after the other from traditional collective fishing to fisheries.

Gov't confident of meeting economic targets

Prime Minister Costas Simitis said yesterday he was confident the economy's performance would show further improvement, building on progress already made.

Mr. Simitis chaired a cabinet meeting that agreed the budget for 2000 should be submitted to parliament by the end of October, leaving a long stretch for debate before a vote at the end of December.

The constitutional deadline for the budget's dispatch to parliament is November 30.

Speaking after the three-hour meeting, National Economy and Finance Minister Yiannos Papantoniou said the chance of meeting economic targets by the end of the year was "certain or at least extremely likely." As planned, Greece would apply to the Euro pean Union for entry into the euro zone in the first ten days of March 2000 with a decision expected early in June, Mr. Papantoniou said.

He also announced that the government would devise a package of measures to assist small and medium-sized enterprises.

In addition, the minister said the September 7 earthquake that hit Athens had caused damage of 200 to 250 billion drachmas.

Paying for reconstruction was feasible as the cost would be spread over two or three years.

Turning to EU funds, Mr. Papantoniou estimated that Greece would have absorbed some 80 percent of financing under the Second Community Support Framework by the end of 1999, when the programme ends.

The remaining 20 percent would be absorbed in 2000 during the first phase of the Third Community Support Framework.

The minister said the rate of absorption would serve to silence critics who claimed that EU monies were going to waste.

"Not even one euro is being lost," he said.

Referring to a 470 billion drachma package of tax cuts introduced to aid lower income earners, the minister said it was the first time a government had provided such a large sum for more vulnerable social groups.

He added that it was proportionally the largest in Europe for several years.

"We were able to give what we owe to the public due to the great effort it has made (Cont. page 6) (Continued from page 5) all those years," Mr. Papantoniou said.

He pledged that the ruling PASOK party would provide further tax breaks and social spending for lower income groups in future budgets.

The economy was growing at a rate of 3.5 percent this year, among the highest rates in the European Union, Mr. Papantoniou said.

The rate would have been higher if interest rates had not been kept by necessity at relatively high levels as part of counter-inflationary policy.

Growth would be bolstered by a decline in interest rates over the next few months, he added.

The public deficit this year would total 1.6 percent of gross domestic product due to a major increase in tax revenue combined with a lower rate of public spending.

Inflation, currently at 2.0 percent, would fall further over the next few months, matching the criterion for euro zone entry by the end of the year, Mr. Papantoniou forecast.

Stocks slump again in sell-off

Equities finished sharply down yesterday but off the days lows in gloom linked to uncertainty over the workings of the Athens bourse, exacerbated by declines on Wall Street and in European markets.

The general index ended 5.41 percent lower on the heels of a 3.90 percent drop in the previous session to finish at 5,503.47 points.

Turnover was around 362 billion drachmas from 406.410 billion drachmas a day earlier on 37,605,000 shares traded.

The index had dived 7.44 percent in a mass sell-off only to recoup some of its losses in the last 30 minutes on bank-led buying.

Sector indices ended as follows: Banking (-4.38 pct), Construction (-7.58 pct), Insurance (-7.32 pct), Miscellaneous (-6.02 pct), Leasing (-8.00 pct), Investment (-6.86 pct), Industrials (-5.73 pct) and Holding (-5.34 pct).

The parallel market index for smaller capitalisation stocks plunged 7.07 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks eased 4.65 percent to finish at 2,883.57 points.

Of 305 stocks traded, declines outpaced advances at 292 to 13 with no shares remaining unchanged.

A total of three shares ended at the daily 8.0 percent upper volatility limit and another 192 ended at the daily limit down, which is also 8.0 percent.

The day's most heavily traded stocks were Atermon, Avax and Ergo Invest.

National Bank of Greece ended at 24,180 drachmas, Commercial Bank at 27,100, Alpha Credit Bank at 24,795, Minoan Lines at 7,500, Intracom (common) at 26, 000, Titan Cement (common) at 34,750, Hellenic Petroleum at 5,796, Hellenic Telecommunications Organ isation at 6,750 and Panafon at 8,470 drachmas.

Electronic trade totalled 39 billion drachmas from 17 billion drachmas in the previous session and 4.0 billion drachmas on Wednesday.

The benchmark 10-year bond, which was still trading below par, showed a yield of around 6.59 percent, the same as a day earlier, from 6.65 percent on Wednesday. The 10-year paper's yield spread over German bunds ranged between 151 and 152 basis points a gainst 152 basis points in the previous session and 158 basis points on Wednesday.

In the foreign exchange market, the drachma came under minor attack from speculators trying to take advantage of the Athens bourse's decline.

In the last three sessions of the week, the central bank sold around 300 million euros to curb attacks on the national currency by investors at home and abroad.

At the central bank's daily fix, the euro rose against the drachma. The euro was set at 327.600 drachmas from 327.250 drachmas in the previous session and 327.030 drachmas on Wednesday.

The dollar dropped versus the drachma.

At the fix, it was set at 312.350 drachmas from 313.250 drachmas a day earlier and 310.910 drachmas on Wednesday.

EIB donates 1 million euros in quake aid

The European Investment Bank (EIB) is donating one million euros as an emergency grant for reconstruction in the greater Athens areas following the killer quake that struck on September 7, it said in a statement yesterday.

The funds are to be allocated to rebuilding schools damaged in the temblor to coincide with the start of the academic year.

The number of the account is 0504036456.

In addition, Citibank has set up collection boxes at its branches.

Lambrakis forges Internet alliances

The Lambrakis Press Organisation yesterday announced alliances it has made with information technology companies.

The alliances aimed at the electronic trade of informatics technology were made with Altec, InfoQuest, Pouliadis and Plesio Computers.

Under the terms of the separate deals, four independent companies will be set up with Lambrakis holding a 50 percent stake in each.

Weather

Sunny weather throughout Greece on Monday, turning cloudy later in the day in the north and west of the country. Limited visibility early in the morning with fog in some areas. Winds light to moderate. Athens will be sunny with temperatures ranging from 21C to 34C. Thessaloniki will start sunny, later becoming overcast. Temperatures between 17C and 31C.

Athens Foreign Exchange

Bank of Greece closing rates of Sept. 24,1999

(C.S.)

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