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Athens News Agency: Daily News Bulletin in English, 97-10-16

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

From: The Greek Press & Information Office, Ottawa Canada <grnewsca@sympatico.ca>

ATHENS NEWS AGENCY BULLETIN (No. 1316), October 16, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca


CONTENTS

  • [01] Simitis concludes successful visit to Albania, co-operation protocol signed
  • [02] Joint declaration
  • [03] Simitis-Nano press conference
  • [04] National Bank branch inaugurated
  • [05] Romeos
  • [06] Gov't stresses that threats come from Ankara, not Athens
  • [07] Karadayi remarks
  • [08] Violations
  • [09] French concern
  • [10] Greek, Romanian, Bulgarian FMs to meet
  • [11] Papandreou meets with Latvian officials
  • [12] Papandreou, Kranidiotis to attend Brussels meetings
  • [13] SE European parliament presidents meet in Athens
  • [14] Gligorov will attend Balkan leaders' summit on Crete
  • [15] Stephanopoulos visits Veria
  • [16] Fears of another quake recede
  • [17] ND withdraws deputies from Parliament committee in protest over 'Kapodistrias'
  • [18] KKE rules out high-level co-operation in municipal elections
  • [19] Campaign against drunk driving goes nationwide
  • [20] 10 insurance firms donate breathalyzer devices
  • [21] SEB reaction to Spraos report
  • [22] Pension funds need better management not Spraos, workers say
  • [23] Parliament discussion on Bank of Greece autonomy draft bill begins
  • [24] Construction date for Greek bridge link to be named end-November
  • [25] Greece opposes changes to EU rules on cabotage
  • [26] Greek stocks edge up in heavy trade
  • [27] US institutionals see more gains ahead on Greek bourse
  • [28] EU satisfied with improvements at Greek airports
  • [29] Greece releases funds for roadbuilding, flood prevention works
  • [30] Investigation into pharmaceutical-maker's practices ordered
  • [31] Intralot agreement in Serbia
  • [32] Turkey causes regional tension, Greek minister says
  • [33] President takes salute of parade

  • [01] Simitis concludes successful visit to Albania, co-operation protocol signed

    Tirana, 16/10/1997 (ANA/S. Liarellis)

    Prime Minister Costas Simitis summed up talks yesterday in Tirana with his Albanian counterpart Fatos Nano by stressing that "gone are the days when the Balkan peoples were unable to find solutions". "...we have now entered a new era in which all the peoples (of the region) will together try to resolve our problems," Mr. Simitis said after talks with Mr. Nano, which he described as "warm and friendly". Mr. Simitis' one-day trip to Tirana is the first official visit by a head of government in the neighbouring country since general elections in June.

    Meanwhile, an agreement was signed providing for the opening of three new border crossings and an economic co-operation protocol setting out Greek assistance to the neighbouring country at 20 billion drachmas.

    Both Mr. Simitis and Mr. Nano spoke about a new era in Greek-Albanian relations and stressed the need for the reconstruction and development of Albania. They also referred to the problem of illegal immigrants.

    "We must build our country so that neither Albanians nor members of the ethnic Greek minority will want to leave," Mr. Nano said.

    During talks between the two sides, "common views and common solutions" were ascertained on a range of issues, including the problem of Albanian illegal immigrants in Greece, matters relating to the ethnic Greek minority in Albania - particularly in the education sector, as well as co-operation on issues of public order, defense and the economy.

    Above all, Mr. Simitis told reporters after the talks, "we ascertained that the development of the entire Balkan region is of benefit to all the countries," while noting that Albania in particular "benefits from its better co-operation with Greece."

    Pointing out that the neighbouring country was suffering from the remnants of the past, in the form of poverty, migration and unemployment, Mr. Simitis said the conditions must be created to eliminate these phenomena.

    Mr. Nano assured that co-operation with Greece would continue and spoke of "a new quality" in relations between Tirana and Athens. He expressed the hope that this co-operation would be on a long-term basis.

    He also referred to Greece's contribution in helping Albania to overcome the recent crisis, stressing that "in the new Albania" people should be able to exercise religious and other basic human freedoms, in the way that Albanians are able to do in Greece and other EU countries. The development of Albania, Mr. Nano said, is a prerequisite in order for Albanians - including ethnic Greeks - who were forced to leave the country because of the crisis, to return home to their families.

    [02] Joint declaration

    Tirana, 16/10/1997 (ANA/S. Liarellis)

    Later in the day, Mr. Simitis and Mr. Nano signed a joint declaration confirming the desire of the two sides for broader bilateral co-operation. The declaration notes the intention of the Greek side to provide multi-faceted support, chiefly in the economic sector, whi-le expressing Albania's appreciation for this assistance.

    Two billion drachmas of economic aid was granted to Albanian Foreign Minister Paskal Milo when he visited Athens on Sept. 12.

    Under the terms of the protocol signed yesterday, a further three billion drachmas will be granted in the form of a loan by the Bank of Greece. The loan will be repaid over a period of 20 years at an interest rate of 3 per cent.

    Interest installments will be half-yearly and the principal will be repaid upon expiry of the loan duration.

    The remaining 15 billion drachmas will be granted for social infrastructure and housing works (10 billion) and for supporting Albanian, Greek or Greek-Albanian undertakings (five billion).

    In the joint statement, the Albanian government expressed its gratitude "for the decisive assistance" which has been and continues to be given by Greece.

    The Albanian side acknowledges the support for its economy provided by the remittances of Albanian nationals working in Greece, while the Greek side pledges to speed up procedures concerning the legislative framework which will pave the way for the legalization in Greece of the larger number of Albanian workers.

    Tirana also undertakes the commitment "at the urging of Greece" to intensify efforts to safeguard respect for the rights of the Greek minority throughout Albania, particularly in the education sector.

    Both sides view the statement signed yesterday as "the tangible consequence and evidence of respect for and implementation in practice of the spirit and substance of the Accord of Friendship, Co-operation, Good Neighbourly Relations and Security between Greece and Albania".

    [03] Simitis-Nano press conference

    Tirana, 16/10/1997 (ANA/S. Liarellis)

    At a joint press conference by the two prime ministers, Mr. Nano expressed his full satisfaction with the signing of the memorandum on the provision of 18 billion drachmas in economic aid to Albania, and described the terms of the loan as exceptional.

    He also said that issues concerning the broader region were also discussed and there was an identity of views. Mr. Simitis said that several of these issues were expected to be discussed at the summit of Balkan leaders in Crete early next month, while referring to matters concerning the ethnic Greek minority in Albania he said: "the more democratic the procedures in a country, the better the treatment of a minority".

    He described the visit as "a milestone, on the occasion of which we sent a message of friendship and solidarity in the struggle for the reconstruction of the country."

    Mr. Simitis also met in Tirana with Albanian President Rexhep Mejdani, the leader of the opposition Democratic Party Sali Berisha and Archbishop of Tirana and All Albania Anastasios.

    [04] National Bank branch inaugurated

    Tirana, 16/10/1997 (ANA/S. Liarellis)

    The Greek delegation also attended the inauguration of a new branch of the National Bank of Greece in Tirana, in the presence of Archbishop Anastasios.

    The branch was inaugurated by Mr. Simitis and Mr. Nano, while a large number of Greek businessmen and members of the Albanian government also attended.

    National Bank of Greece Governor Theodoros Karatzas said in his speech that the bank branch has developed the full range of banking services since its opening, and that a significant part of these are related to the transfer of funds from Albanian nationals working in Greece.

    Mr. Karatzas stressed that these activities would not be restricted to the large number of Greek businessmen who intend to become active in the neighbouring country, but would also aim at attracting local businessmen as clients.

    [05] Romeos

    Tirana, 16/10/1997 (ANA/S. Liarellis)

    On his part, Public Order Minister George Romeos, who is accompanying Mr. Simitis, held talks with Interior Minister Neritan Ceka, with whom he agreed on the need to further increase the already close co-operation between the security forces of the two countries.

    Mr. Romeos and Mr. Ceka agreed that one of the major problems to be tackled was that of narcotics trafficking. Mr. Romeos said he had asked for a list of the convicts who escaped from Albanian prisons during the height of the crisis in the neighbouring country in March.

    Mr. Ceka assured him that the list would be sent in the next few days, explaining that it had not been possible to do so up to now because of a lack of records, many of which were destroyed.

    Announcing specific measures, Mr. Romeos said a meeting of the police chiefs of areas on both sides of the common border would be held in Ioannina on Oct. 24-25.

    The aim of the meeting, he said, will be to examine ways of tackling the more general problems, while at the same time establishing closer co-operation between adjoining areas of police jurisdiction, such as Sarande and Corfu.

    The provision by the Greek police of the necessary material and technical support to their Albanian colleagues would also be realized at this level, Mr. Romeos said.

    In order to better tackle the problem of drug trafficking, Mr. Romeos continued, Greece will be supplied with specially trained dogs and vehicles from the United States, which it will place at the disposal of the Albanian authorities for use in border areas.

    Meanwhile, six Albanian police officials will visit Athens next week for briefing and training on narcotics-related issues. One of the officers, with detailed knowledge of Albanian criminals, will remain in Greece for a period of three months to assist Greek police.

    Towards the end of October, a Greek police officer will be stationed to the Albanian interior ministry to act as a liaison for the exchange of information.

    Within the framework of the restructuring of the Greek police forces on the border with Albania, steps will subsequently be taken to reorganize the Albanian border police in order to secure better co-operation and coordination.

    Mr. Romeos handed Mr. Ceka a list containing the full details of stolen boats and requested the assistance of the Albanian police in finding them.

    According to informed sources, Mr. Ceka requested the assistance of the Greek coastguard - even in Albanian territorial waters - to strengthen efforts directed against cigarette smugglers.

    [06] Gov't stresses that threats come from Ankara, not Athens

    Athens, 16/10/1997 (ANA)

    If there is a threat of war between Greece and Turkey, it comes from the neighbouring country, the government reiterated yesterday, responding to statements by Turkey's military chief Gen. Ismail Hakki Karadayi.

    In statements published in the Turkish dailies "Sabah" and "Hurriyet", Gen. Karadayi said Ankara's numerical military superiority would make the result of any conflict with Greece a foregone conclusion.

    Asked to comment on Gen. Karadagi's statements, acting government spokesman Nikos Athanassakis said Greece had not the slightest desire to cause tension or conflict in the region, while he added that Turkey should at long last realize that it could not destabilize the region.

    Replying to questions on statements in Athens on Tuesday by US State Department special coordinator for Cyprus, Thomas Miller, the Greek spokesman said the US envoys were in the first phase of examining the positions of Greece and Turkey.

    Mr. Miller met in Ankara on Monday with Turkish Premier Mesut Yilmaz, while accompanying special US presidential emissary for Cyprus Richard Holbrooke.

    Mr. Athanassakis said the US had shown is was concerned about the tension prevailing in the region and was trying to contribute to de-escalation and to finding a settlement of the Cyprus problem.

    The spokesman denied a press report claiming that 600 US troops would be stationed on Rhodes to monitor the implementation of a moratorium on military flights over the Aegean and Cyprus.

    "There is no such issue," he said.

    [07] Karadayi remarks

    Istanbul, (ANA/A. Kourkoulas/Reuter)

    On his part, Turkish military chief Gen. Karadayi said that the tension over the last few days during concurrent Greek and Cypriot military exercises should not give cause for concern.

    "One exercise doesn't mean anything and we are doing the same," he said in press statements, sending a warning to "hot-heads" in Ankara that the tension could be a (Greek) "trap".

    "We are dealing with the problem responsibly and in a cold-blooded manner. There is no cause for concern," the "Sabah" daily quoted Gen. Karadayi as saying.

    "Any soldier can see the reality of the balance of power. The Turkish army's overwhelming superiority is obvious. That's why I wouldn't even bother arm wrestling with them," he said. The rival daily "Hurriyet" carried the same quotes. The statements appear be aimed at defusing attempts to create tension over the prospect of the installation of Russian-made S-300 anti-air-craft missiles in Cyprus in conjunction with the exercises "Nikiforos" and "Toxotis".

    The Turkish chief of staff has avoided taking the extremist positions of some Turkish officials on both these issues, without belittling their significance or their potential repercussions regarding strategic interests in the region.

    However, Turkish State Minister for relations with Turkish Cypriots and the European Union, Sukru Gurel, said Tuesday that the tension between Greece and Turkey could provoke an armed conflict.

    "The other side is playing a very dangerous game, they are playing with fire," he said, although yesterday he said:

    "We do not intend to play war games ... I don't see any dangerous escalation."

    Finally, referring to Greek-Turkish relations, Turkish President Suleyman Demirel told an audience at a Turkish Historical Society ceremony about a personal account involving former Greek president of the republic Constantine Karamanlis.

    He claimed that Mr. Karamanlis had once told him "...that the Greeks are afraid of us," on which he commented out loud: "since you're afraid of us, why do you provoke us?"

    [08] Violations

    Athens, 16/10/1997 (ANA)

    Meanwhile, the Greek military exercise "Toxotis" and the concurrent Cypriot exercise "Nikiforos" ended yesterday with a parade of infantry and motorized units through Larnaca, as eight Hellenic Air Force F-16 fighters flew over the island republic.

    At the same time, six Turkish warplanes violated Cyprus' national airspace in the region of Paphos. The Turkish aircraft were identified and intercepted by the Hellenic Air Force F-16 jets taking part in the parade.

    Reports later in the day said there had been 12 infringement of the Nicosia Flight Information Region (FIR) and a total of 20 infringements of the Athens FIR by early afternoon. In all cases, Hellenic Air Force fighters identified and intercepted the intruders, frequently after mock dogfights in both FIRs.

    Turkish warplanes have repeatedly violated Greek and Cypriot airspace during the past few days as Athens and Nicosia conducted military exercises within the framework of their joint defense doctrine. (See also page 11)

    [09] French concern

    Paris, 16/10/1997 (ANA/AFP)

    The French government warned Turkey and Greece yesterday against whatever action capable of increasing tensions in the eastern Mediterranean region.

    The warning came two days before Turkish Prime Minister Yilmaz pays an official visit to France.

    He is expected in Paris tomorrow to meet French President Jacques Chirac.

    "We call persistently on Turkey and Greece to abstain from whatever is capable of increasing tension in the region and we express the wish to see Ankara and Athens pursuing calm again," French Foreign Ministry spokesman Jacques Rummelhardt told reporters.

    "Over the past few weeks we have ascertained a worsening of the climate in the eastern Mediterranean. The current or upcoming military exercises in Cyprus can only complicate the situation and senselessly create the danger of an uncontrollable development," he said.

    "We like to believe that the upcoming meeting expected to take place in Crete in early November between the Turkish and Greek premiers will allow for progress to be achieved in the direction of normalization in relations between Turkey and Greece, two of France's ally countries," he added.

    Mr. Rummelhardt said Paris supports Turkey's accession to the European Union.

    "We place great importance on the European consolidation of Turkey, a country which the EU's enlargement process concerns absolutely," he insisted.

    "On its part, Turkey must continue efforts which are necessary to enable it to adjust to political, economic and social criteria which apply to all candidate countries," Mr. Rummelhardt said, stressing that he referred in particular "to human rights and relations of good neighbourliness."

    [10] Greek, Romanian, Bulgarian FMs to meet

    Bucharest, 16/10/1997 (ANA/AFP)

    The foreign ministers of Greece, Romania and Bulgaria will meet on October 23 in Bucharest, the Romanian foreign ministry announced yesterday.

    The three ministers are expected to discuss joint co-operation in transport and joint action against organized crime, according to the announcement.

    For Romania, this tripartite meeting is a way to bolster security in the region, spokesman Victor Micula said.

    [11] Papandreou meets with Latvian officials

    Riga, 16/10/1997 (ANA)

    Alternate Foreign Minister George Papandreou and Latvian government officials expressed agreement yesterday that simultaneous negotiations should be held with the 11 countries that have applied for accession to the European Union.

    Mr. Papandreou met with Latvian Prime Minister Guntars Krasts and Foreign Minister Valdis Birkaus, who expressed the view that the EU should give clarifications regarding the course of its future relations with candidate countries.

    Latvia has signed a free trade agreement with the EU, while on June 12, 1995, a temporary association agreement was signed.

    It was the first Baltic state to submit a request to join the EU (on October 27, 1995) and has established a free trade zone with the other two Baltic states, Lithuania and Estonia.

    [12] Papandreou, Kranidiotis to attend Brussels meetings

    Brussels, 16/10/1997 (ANA/G. Daratos)

    Foreign Under-secretary Yiannos Kranidiotis left last night for Brussels to attend a meeting of the European Parliament's Turkey Watch committee, taking place here today.

    The committee monitors human rights violations in Turkey and includes socialist Eurodeputies, including Greece's Yiannis Roubatis. The meeting will be held behind closed doors.

    Mr. Kranidiotis is also expected to meet privately with Eurodeputy Pauline Green, the head of the Socialist Group at the Europarliament.

    Alternate Foreign Minister George Papandreou is expected to attend a meeting of the Socialist Group today on setting guidelines for various issues to be brought up at next week's plenary session of the European Parliament in Strasbourg.

    Mr. Papandreou is expected to arrive in Brussels today from Lithuania.

    [13] SE European parliament presidents meet in Athens

    Athens, 16/10/1997 (ANA)

    Parliament presidents of several southeastern European countries began a meeting in Athens yesterday, focusing on possibilities for further development and consolidation of cooperation between the region's national assemblies.

    Addressing the two-day meeting, Greek Parliament President Apostolos Kaklamanis set out the terms and prerequisites for establishing a more substantial dialogue and upgrading contacts between the parliaments of the region.

    He proposed putting co-operation on a more permanent basis within the framework of a "parliamentary advisory assembly", the first aim of which would be to organize meetings of parliament presidents on a regular, rotating basis, along the lines of similar meetings in the European Union.

    Yugoslav Parliament Speaker Milomir Minic urged the taking of "all possible measures to stop the exclusion of Yugoslavia from international political and economic organizations and the OSCE".

    Mr. Minic also proposed Belgrade as the venue for the first meeting of the advisory assembly of the countries of southeastern Europe in June next year.

    Romania's parliament president, Petr Roman, expressed the hope that the image of southeastern Europe could be enhanced through greater contact between the parliaments of the region.

    "We must show to all that we are in a position to stabilize the region and join European institutions. This however presupposes common values and the assumption of responsibilities - democracy and a market-oriented economy," Mr. Roman said.

    Moldovan parliament president Timitru Motpan expressed concern about the way in which countries were dealing with problems, which arose following the collapse of the eastern bloc.

    He said it was wrong "to continue to rely solely on our own strength, since the problems are getting worse and we have not come to terms with the fact that there must be an overall effort".

    According to Mr. Motpan, particular emphasis should be placed on efforts to combat arms smuggling and narcotics trafficking, while specific initiatives should be undertaken against terrorism and national isolationism.

    Co-operation should also be advanced on ecological matters and the protection of the environment, he added.

    The meeting is being attended by the parliament presidents of Albania, Bosnia, Bulgaria, Yugoslavia, FYROM, Romania, Croatia and Slovenia. The president of the Turkish national assembly had been invited, but was unable to attend.

    [14] Gligorov will attend Balkan leaders' summit on Crete

    Skopje, 16/10/1997 (ANA/M. Vihou)

    The president of the Former Yugoslav Republic of Macedonia (FYROM), Kiro Gligorov, will attend a summit of state and government leaders of southeastern Europe, taking place on Crete in early November.

    Mr. Gligorov notified Ambassador Alexandros Mallias, the head of Greece's liaison office in Skopje, following a meeting he had with the FYROM president yesterday.

    His office also made an official announcement about the summit trip.

    Today, Mr. Gligorov is expecting German Foreign Minister Klaus Kinkel to arrive in Skopje, following an official visit to Sofia.

    Mr. Kinkel will also meet with FYROM's prime minister, foreign minister and the leader of the Democratic Welfare Albanian minority party, before a press conference.

    [15] Stephanopoulos visits Veria

    Athens, 16/10/1997 (ANA)

    The borders of the Greek state are final, and our only demand is that they and national pride are respected by our neighbours, President of the Republic Kostis Stephanopoulos said yesterday.

    During an extraordinary meeting of the city council of Veria, where the president is visiting, Mr. Stephanopoulos said that if Greece's neighbours do not respect its borders and national pride, it is their side that will be degraded, not Greece.

    The president is expected to attend today's celebrations over the city's 85th anniversary since the liberation from Ottoman rule.

    Prior to visiting Veria, Mr. Stephanopoulos ended a three-day tour of Mount Athos yesterday with a visit to the monasteries of Dionysios and Xiropotamos.

    [16] Fears of another quake recede

    Athens, 16/10/1997 (ANA)

    Seismologists believe that the danger of another major earthquake occurring in Messinia has passed, since no serious tremors have occurred in the 48 hours since Monday's 5.8 Richter quake that shook buildings in Messinia and Laconia, causing slight damage to older buildings.

    Professor Ioannis Drakopoulos, reassuring local residents, said yesterday: "I don't want to say that we are definitely in the phase of post-seismic activity".

    However, he noted that the epicentre of this week's quake was situated in the sea bed far from populated areas, and therefore people should not be too concerned.

    [17] ND withdraws deputies from Parliament committee in protest over 'Kapodistrias'

    Athens, 16/10/1997 (ANA)

    Main opposition New Democracy Parliamentary spokesman Demetris Sioufas yesterday announced in a press conference the withdrawal of his party's deputies from the Parliamentary Committee for Public Administration, in protest against the non-submission of a draft bill on compulsory mergers of municipalities and communities to the committee.

    The bill, named "Kapodistrias", after modern Greece's first executive head of state, was tabled in Parliament by Interior Minister Alekos Papadopoulos last week.

    Also speaking at yesterday's press conference, ND Parliamentary group secretary, Stavros Dimas, accused the government of trying to impose the plan in an authoritarian and undemocratic way, and without dialogue.

    The party's head of the public administration sector, Prokopis Pavlopoulos, described the bill as "hypocritical", because the ruling party referred to planned and not compulsory mergers in its election manifesto. He also called it ineffective and unconstitutional.

    He added that mergers could be effective if promoted on the basis of incentives, specific plans and local referendums, and declared that when his party comes to power it will change the law in the direction of voluntary mergers.

    [18] KKE rules out high-level co-operation in municipal elections

    Athens, 16/10/1997 (ANA)

    The Communist Party of Greece (KKE) yesterday ruled out the possibility of high-level co-operation with other political parties for next year's municipal elections, according to its Parliamentary spokesman Orestis Kolozov.

    However, Mr. Kolozov said KKE officials were holding meetings with officials from other parties over the elections, and that the party was likely to support electoral tickets in which other parties' candidates may also participate.

    During a press conference yesterday, KKE's Parliamentary group leveled strong criticism at the government's overall performance, while analyzing the party's proposals on all major issues.

    Mr. Kolozov charged that the government had implemented a series of measures which aimed at hastily incorporating the country into European Union and NATO structures. He added that the government's policy on most sectors included tough, anti-popular and austerity measures, which mainly encouraged what he called the growth of "big capital."

    [19] Campaign against drunk driving goes nationwide

    Athens, 16/10/1997 (ANA)

    Breathalyzer testing for drunk driving is being extended to toll posts along the national highways as traffic police step up efforts to reduce alcohol-related road accidents.

    Public Order Minister George Romeos told reporters on Monday that 21 new breathalyzer devices donated by the Association of Insurance Companies of Greece were being set up at toll stations. "With this donation, the Greek Police now have a total of 101 breathalyzer kits, enabling alcohol testing throughout the entire country," Mr. Romeos said.

    Breathalyzer testing and impounding of cars of repeat offenders would continue, he added.

    He said 3,325 breathalyzer tests between October 6 and 13 had revealed 234 cases of drunken driving.

    George Skourtis, a spokesman for the association and chairman of its accidents committee, said traffic accidents in the wider Athens region had fallen by 25-27 percent since breathalyzer testing was introduced. Of the 23 road deaths this past weekend, only one fatality occurred in a traffic accident in Athens, he said.

    Mr. Skourtis said that if road accidents continued to decline at the present rate, the next step would be a reduction in car insurance premiums.

    [20] 10 insurance firms donate breathalyzer devices

    Athens, 16/10/1997 (ANA)

    Ten insurance companies and the Union of Insurance Companies of Greece (EAEE) have donated 21 breathalyzer devices to the public order ministry, as a contribution to its efforts to reduce traffic accidents in Greece.

    [21] SEB reaction to Spraos report

    Athens, 16/10/1997 (ANA)

    The president of the Federation of Greek Industries (SEB) Iason Stratos yesterday said the recently unveiled "Spraos report" should be regarded as exactly what it is, namely, "a contribution to social dialogue".

    Mr. Stratos said the report clearly described problems and recommended feasible alternatives. He added that the report is rather tentative on changes in the structure of the current social security system, while it does not recommend any changes in the system's administration.

    According to SEB, social partners (employers-employees) should actively participate in the administration of insurance funds, taking part in decision-making on crucial issues.

    SEB believes that the following recommendations in the Spraos report can contribute to the implementation of socially acceptable reforms: - a solution cannot be based on increasing social security contributions, which being already high, if further raised would harm competitiveness and development.

    - the need to rationalize pensions, accompanied by a re-assessment of the lowest levels, invalid pensions, etc.

    - expansion of employees' work years duration, where necessary, mainly by eliminating counter-motives for staying on the job.

    SEB also expressed its opposition to the decrease of working hours to 35 per week, since it believes that such a measure will lower competitiveness.

    [22] Pension funds need better management not Spraos, workers say

    Athens, 16/10/1997 (ANA)

    Greece's social security system can be reformed by focusing attention on mismanagement and not by adopting the Spraos report's fiscally-oriented proposals, workers at the National Federation of Social Policy Organizations said yesterday.

    The federation represents workers in non-IKA pension funds.

    Representatives said that the failure of employers to pay contributions to pension funds apart from IKA left a bill of 300 billion drachmas annually. Another five trillion drachmas was lost through bad management of reserves, they said.

    They also claimed that there were 1,700 positions that needed to be filled and that computerization of services had not progressed. They stressed that the government would be better off dealing with these factors in any attempts to resolve the problems.

    Federation president George Koutroumanis said the Spraos report had already caused anxiety amongst workers and that there was a marked trend for those who were eligible for pensions to take them.

    Mr. Koutroumanis said bad organization was the prevailing characteristic of most pension funds, saying processing applications for new pensions took an average of eight months and, at one fund, up to five years.

    [23] Parliament discussion on Bank of Greece autonomy draft bill begins

    Athens, 16/10/1997 (ANA)

    A Parliamentary committee has opened discussion on a draft bill providing for autonomy of the Bank of Greece on monetary policy issues. According to National Economy and Finance Minister Yiannos Papantoniou, the draft bill will also harmonize the central bank's operation with provisions of the European Union Treaty.

    Mr. Papantoniou stressed that the central bank's primary target was steady prices, namely, a low inflation rate, as well as supporting economic development.

    Decisions relating to monetary policy, according to the minister, will be taken by a six-member council, comprising the central bank's governor, two deputy governors and three board members. The council will be of a six-year term.

    The draft bill also stipulates that when necessary, the Bank of Greece board will be accountable to a relevant Parliamentary committee.

    In reaction to the draft bill, main opposition New Democracy (ND) shadow minister for economic issues Georgios Alogoskoufis said the draft bill secured neither the central bank's autonomy nor democratic oversight. He said what is sought by the current d raft bill is to simply secure another six-year term for the current board.

    Opposition to the draftbill also came from the Coalition of the Left and Progress (Synaspismos), with the party's Parliamentary spokesman, Yiannis Dragasakis, saying that no procedures of essential audit over the bank was provided for by the draft bill.

    [24] Construction date for Greek bridge link to be named end-November

    Athens, 16/10/1997 (ANA)

    The starting date for construction of a bridge linking mainland Greece to the Peloponnese in the west will be announced at the end of November, Public Works Minister Costas Laliotis told state radio yesterday.

    The bridge linking Rio and Antirrio will act an as alternative to sea or road transport, slashing traveling time.

    The project is to be built according to original specifications and contracts have been signed, Mr. Laliotis told ERA radio in the nearby port of Patras.

    National and European Union funds have been earmarked for the project and a loan secured from the European Investment Bank, he said.

    The bridge, which is a part of the European Union's transport networks, is due for completion by 2004, Mr. Laliotis said.

    [25] Greece opposes changes to EU rules on cabotage

    Athens, 16/10/1997 (ANA)

    Merchant Marine Minister Stavros Soumakis said the government opposed any changes in a European Union directive on the abolition of cabotage, and a further extension after the year 2004.

    Speaking to reporters after a meeting on Tuesday with Greek Eurodeputies and seamen's union representatives, Mr. Soumakis urged Greek shipowners to modernize and renew their fleet in order to better compete with their European counterparts.

    The minister said that both sides agreed that a unified policy was in the interests of the Greek shipping industry.

    [26] Greek stocks edge up in heavy trade

    Athens, 16/10/1997 (ANA)

    Greek equities resumed their upward trend on the Athens Stock Exchange to end higher after a short-lived correction in the previous session.

    The general index broke the 1,800 mark during the session once again but failed to hold the level. Traders said the market was uncertain whether or not to allow the Athens general share index to go higher.

    The index closed 0.63 percent higher at 1,791.97 points. Most sector indices scored gains. Turnover was 27.8 billion drachmas.

    Banks rose 0.58 percent, Insurance was 0.20 percent higher, Leasing fell 0.10 percent, Investment increased 0.27 percent, Construction dropped 0.80 percent, Industrials rose 0.93 percent, Miscellaneous was 1.60 percent up and Holding rose 0.20 percent.

    The parallel market index for small cap companies fell by 0.63 percent.

    Broadly, advancers led decliners by 118 to 104 with another 23 issues unchanged.

    Halyps Cement, Keranis, Bank of Attica, Sanyo, Vis and Katselis scored the biggest percentage gains, while Dane, Ideal, Sato and Macedonian Plastics suffered the heaviest losses.

    National Bank of Greece ended at 31,690 drachmas, Ergobank at 19,250, Alpha Credit Bank at 21,320, Delta Dairy at 4,110, Titan Cement at 16,285, Intracom at 17,095 and Hellenic Telecommunications Organization at 6,700.

    [27] US institutionals see more gains ahead on Greek bourse

    Athens, 16/10/1997 (ANA)

    US institutional investors believe that the Greek stock market has potential for further gains this year despite a 70 percent rise in dollar terms since January. Stefan Alb, an executive at Sierra Global Management said that the fundamentals of the Greek market remained strong, corporate profitability had improved and the valuation of stocks remained attractive.

    He said there are a number of medium and small-sized stocks with great growth potential in Athens.

    Mr. Alb was speaking at a presentation of investment opportunities on the Greek bourse held by the Athens Stock Exchange chairman Manolis Xanthakis in New York to mark the introduction of a second index for the bourse, the FTSE/ASE-20 index.

    Mr. Xanthakis said that the Greek market's total value had shot up from 4.49 billion dollars in 1987 to 12.5 billion in 1993 and 40.2 billion in September 1997. The development reflected political stability, a positive trend in macro-economic figures, high corporate profitability and great growth prospects as Athens will stage the 2004 Olympic Games in Athens.

    Mr. Xanthakis said that foreign investors accounted for 25-30 percent of total trading, up from a 15 percent five years ago.

    Referring to the new index, the Athens bourse chairman said that it aimed to attract foreign interest and to facilitate a future Greek derivatives market.

    The FTSE/ASE index is a joint project with FTSE International, a company owned by the Financial Times Group and the London Stock Exchange.

    [28] EU satisfied with improvements at Greek airports

    Athens, 16/10/1997 (ANA)

    The European Union has dropped infringement procedures against Greece following complaints by international airlines that Olympic Airways, which has a monopoly on ground handling services at Athens airport, offered poor services and charged ill-defined tariffs.

    The EU's executive Commission said that the situation had resulted from an abuse of OA's monopoly, which ends in 1998, and opened an infringement procedure.

    As a result, the Greek authorities carried out works to improve the eastern terminal at Athens airport which houses foreign airlines.

    The authorities also recently amended a law on temporary work which prevented OA from easily recruiting seasonal personnel to cope with the peaks of traffic during the tourist season. A new operator, chosen by tender, will provide from January 1, 1998 ground handling services in competition with OA. A second operator will offer ramp services on January 1,1999.

    OA has put in place a system of quality control and minimum standards which it has committed itself to respecting at airports in Athens, Iraklion, Hania, Rhodes, Corfu and Thessaloniki.

    OA has also established a new tariff structure better linked to the actual cost of the service.

    In order to increase transparency, these tariffs will be published and any amendment will have to be announced and explained.

    In addition, projects are or will soon be undertaken in other Greek tourist airports.

    [29] Greece releases funds for roadbuilding, flood prevention works

    Athens, 16/10/1997 (ANA)

    Greece's public works ministry endorsed the release of funds for regional roadbuilding and flood prevention works.

    The projects are as follows:

    * Construction of an overpass in the prefecture of Messinia, budgeted at 330 million drachmas

    * Additional work on a highway in the prefecture of Preveza, budgeted at 56 million drachmas

    * Flood prevention works in the island of Rhodes and the prefecture of Ioannina, budgeted at 84.5 million drachmas.

    [30] Investigation into pharmaceutical-maker's practices ordered

    Athens, 16/10/1997 (ANA)

    An Athens prosecutor yesterday ordered a preliminary investigation into whether the Boehringer Pharmaceuticals firm is liable to prosecution on a number of charges, following its decision to withdraw a number of medicines from the market and whether it has been overpricing its products.

    The prosecutor has also called for the president of the National Pharmaceuticals Organization (EOF) and the organization's competent officials to be summoned as witnesses in the investigation.

    Meanwhile, the president of the Athens Pharmacists' Association, Eleni Besbea, has filed a lawsuit against anyone responsible for shortages of certain medicines in the market, which, she says, holds dangers for public health.

    She also pointed out instances of profiteering and unfair competition, mentioning as a likely cause the abolition of the set price for pharmaceuticals, which she said applies worldwide.

    [31] Intralot agreement in Serbia

    Belgrade, 16/10/1997 (ANA/M. Mouratidis)

    The Greek company Intralot signed an agreement here on Tuesday for co-operation with Serbia's state-run lottery organization Loutria, an investment amounting to US$18 million.

    The agreement anticipates creation of a modern computer network for Lotto and other scratch-off games, as well as the modernization of Yugoslavia's lottery agencies.

    Intralot not only undertakes to install equipment, but also becomes an equal partner with Loutria, and is committed that the establishment of the first machines will take place in Belgrade in the next six months and gradually in the other Yugoslav cities.

    The Serb partner is committed to depreciating the investment in 12.5 years, paying 8.5 per cent of profits to Intralot, while the latter will also undertake to advertise. The agreement also anticipates the introduction of new games on the Serb market.

    [32] Turkey causes regional tension, Greek minister says

    Nicosia, 16/10/1997 (ANA/CNA)

    Greek Minister of Defense Akis Tsohatzopoulos stressed here yesterday that Greece wants "peace and stability in the region" and confirmed that Greece and Cyprus' co-operation in defense continues "against any external threat".

    Speaking at a joint press conference in Nicosia with his Cypriot counterpart Costas Eliades, Mr. Tsohatzopoulos described his three-day visit to Cyprus as "creative" and said the island is ready should war break out, and the National Guard is effective and modernized.

    He also congratulated National Guard Commander Nicolaos Vorvolakos and the Greek Armed Forces for their excellent performance in the five-day "Nikiforos" military exercise which ended yesterday.

    Mr. Tsohatzopoulos stressed this period "imposes a spirit of co-operation and stability" and expressed his satisfaction because "through our effective defense, we contribute with determination" to the respect of Greek and Cypriot rights.

    Responding to questions, Mr. Tsohatzopoulos said the fact that "Greece and Cyprus have agreements on defense matters to face external threats together" does not create any tension in the area, which is caused exclusively by Turkish moves.

    He reiterated that Greece wants peace, "but not at the cost of its own survival and rights".

    Mr. Tsohatzopoulos said if the United States or any other country is "interested in reducing tension, then they must turn to the sole source of that tension, which is none other than Turkey" and persuade this country to "stop being a destabilizing factor in the region and terminate its occupation of Cyprus".

    He confirmed that Greece will participate in the same exercise next year.

    On his part , Mr. Eliades said Cyprus' defense program and its co-operation with Greece are irreversible, "unless the demilitarization of the island is agreed upon or the Cyprus problem is solved".

    [33] President takes salute of parade

    Larnaca, 16/10/1997 (ANA/CNA)

    President Glafcos Clerides said yesterday's military parade was the "most impressive" and that more such parades will follow.

    He was speaking after the parade that marked the end of the five-day National Guard annual military exercise code-named "Nikiforos '97".

    "We are proud of our armed forces", President Clerides said.

    Asked to comment on violation of the Nicosia FIR by Turkish warplanes, President Clerides said "this provided an opportunity to see whether our joint defense pact with Greece is effective".

    On his part, Greek National Defense Minister Akis Tsohatzopoulos congratulated all who took part in the military exercises.

    President Clerides and Mr. Tsohatzopoulos visited Greek warships here for the manoeuvres at Larnaca port.

    President Clerides was also briefed yesterday by the Defense Ministers of Cyprus Costas Eliades and Greece Mr. Tsohatzopoulos on the process of co-operation in defense matters between the two countries.

    End of English language section.


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