Cyprus Mail: News Articles in English, 98-03-07

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From: The Cyprus Mail at <http://www.cynews.com/>

Saturday, March 7, 1998

CONTENTS

[01] Government returns Denktash's letter

[02] American Cypriot missing since '74 confirmed dead

[03] 'Don't miss the EU train'

[04] Cabinet approves Vassiliou appointment

[05] Miller arrives tomorrow

[06] Minister moves into remove marina cranes

[07] Hellenic doubles profits in 1997

[08] 'No end to Diko absurdities'

[09] Police set to axe political bodyguards

[10] Bosses warn against complacency

[11] Central Bank happy with US report on money laundering

[12] Cup could distract title challengers

[01] Government returns Denktash's letter

THE GOVERNMENT yesterday returned as "unacceptable" a letter from Rauf Denktash to President Clerides.

The letter from the Turkish Cypriot leader, dated March 5, accuses the Greek Cypriot side of evading a UN-brokered formula for EU accession and of being uninterested in a federal solution.

Such a solution has been made untenable, Denktash said, by "the ever- deepening mistrust" between the two communities and by the Greek Cypriot side's intent to fulfil its "selfish designs" by "side-stepping" UN efforts on the issue of EU membership.

"Under the prevailing conditions, insistence on such a solution can even be dangerous," Denktash said.

In the three-page letter, written in English, Denktash also refers to the Greek Cypriot side's "obsession to accomplish your declared aim of completely Hellenising Cyprus and dominating the Turkish Cypriots".

He also refers to the Greek Cypriot side's "readiness to resort to the use of force to impose your will", criticising the government's defence programmes with Greece, the planned deployment of the Russian S-300 missiles and the commissioning of the Paphos air base.

But the letter was sent back after President Clerides refused to accept it because it was written on 'official' paper.

Government spokesman Christos Stylianides said the letter, delivered via the UN yesterday, was "unacceptable both in substance and ethics".

Its letterhead reads "Turkish Republic of Northern Cyprus, President's Office". It is signed "Rauf R Denktash, President".

"The letter... was sent back immediately," Stylianides told journalists after a meeting of the National Council, the government's top advisory body on the Cyprus issue, which fully backed the move.

"The fact it was written on the paper of the pseudo-state and signed by 'President' Denktash is unacceptable," Stylianides said.

The two leaders have communicated by letter in the past but have avoided using titles.

Denktash's letter is addressed to "His Excellency, Glafcos Clerides, Nicosia" and begins "Dear Glafcos", congratulating the President on his re- election last month for a second term.

While it opens and closes with a call for a working relationship, Denktash made it clear that efforts for such a relationship should be based on the "acknowledgment of the existence of equal status of our respective states".

"The time has come for both of us to show the necessary leadership so that the future generations do not go through the bitter experiences that both you and I have endured...," Denktash said. "Our primary aim must be the immediate achievement of a working relationship between our two states... and the danger of a new conflict is averted."

Stylianides said President Clerides and Foreign Minister Yiannakis Cassoulides would today decide what measures to take over the letter.

These are likely to include protests to the UN Security Council, Secretary- general Kofi Annan and EU governments.

[02] American Cypriot missing since '74 confirmed dead

ONE OF five Greek Cypriots with American citizenship listed as missing since 1974 has been officially declared dead, according to a New York-based newspaper.

State radio CyBC reported last night that the Greek-language newspaper Proini carries an article in its latest edition confirming the death of one of the 1,619 missing.

CyBC said the Andreas Kasapis who was 16 at the time of the Turkish invasion and who was believed to have been killed by the Turks has been positively identified through DNA testing on his exhumed body.

According to the newspaper, Thomas Miller, the US State department's special co-ordinator for Cyprus, informed the boy's father Costas Kasapis of his son's death on Thursday, CyBC said.

The paper also reportedly said the families of the other four missing Greek Cypriots with American citizenship are expected to be informed of their deaths inside the next two months.

The process of identifying the remainder of the missing got under way recently when the two sides exchanged information on the whereabouts of mass graves. The Turkish Cypriot side has 803 missing persons dating back to the intercommunal troubles of 1963.

Work has already begun on a DNA bank to help identify the bodies of missing persons if they are recovered.

Meetings on the issue are expected next week.

[03] 'Don't miss the EU train'

THE CYPRUS-EU train may start without the Turkish Cypriots, but there is time for them to hop on board before it reaches Brussels.

This was the hopeful message issued by EU External Affairs Commissioner Hans van den Broek at a press conference in Nicosia yesterday, which concluded his visit to the island.

Although he expressed disappointment at Turkish Cypriot leader Rauf Denktash's refusal to meet him, van den Broek urged both sides to be positive about EU membership.

"The Turkish Cypriots are asked to accept that a common future is better than one in relative isolation."

He added: "it is not difficult for us to imagine what benefits there will be for the Turkish Cypriots if everything goes as we wish."

The commissioner was also satisfied with the government's efforts to find a formula enabling the Turkish Cypriot side a chance to take part in accession talks.

"The government here is very much dedicated to seriously considering how Turkish Cypriot interests can be respected in negotiations, and that attitude encourages us."

Van den Broek said he hoped an offer would be made to the Turkish Cypriots before the start of negotiations, due at the end of this month.

"We are waiting for the government to take a decision and present a proposal. We are not here to impose anything, we are partners."

Van den Broek could not confirm whether such a proposal would be submitted by the government next week, as reported, but there were hints it may come when President Clerides meets British Prime Minister Tony Blair next Thursday.

However, the EU commissioner warned the Turkish Cypriots also had a responsibility to co-operate towards a common EU goal for the whole island.

Ankara and Denktash strongly oppose the island's bid for membership, especially since Turkey was eliminated from the first wave of enlargement.

Nevertheless van den Broek made it quite clear that the EU would "not recognise Turkish Cypriots as a separate state."

Although the EU was looking forward to a "fruitful start" to accession talks, the commissioner said it would not be side-tracked by doubts over Turkish Cypriot participation.

"We mustn't feel paralysed if the other side doesn't respond."

But the Euro diplomat was careful not to shut any doors or lay down any deadlines for the Turkish Cypriot side, saying the lengthy process gave them ample opportunity to reconsider.

He said this was not the time to make hasty judgements or concentrate on the past.

"Before us is the beginning of negotiations, not the end, it is not helpful to talk about conclusions."

[04] Cabinet approves Vassiliou appointment

His working title and job description was approved by the Council of Ministers as submitted by Attorney-general Alecos Markides.

The official appointment was announced by Government spokesman Christos Stylianides, who confirmed that Vassiliou would have no executive powers.

However, he did say that Vassiliou would play a significant role in helping to shape the government's proposal to encourage Turkish Cypriot participation in the accession process.

"He will act in accordance with government policy and be continually briefed by the cabinet; his will be an important role on the issue of Turkish Cypriot participation," Stylianides said.

[05] Miller arrives tomorrow

The US embassy said Miller would arrive on Sunday for a two-day visit during which he would meet both sides.

He is the latest in a long line of diplomats who have begun pushing in earnest finally to resolve the Cyprus question.

The flurry of diplomatic activity began last week with the arrival of Britain EU presidency envoy Sir David Hannay, who returned this week with EU external Affairs Commissioner Hans van den Broek.

Vane den Broek completed his contacts yesterday and officials will now await the arrival of Miller, which is expected to precede a visit from US presidential emissary Richard Holbrooke.

Meanwhile, the US has again expressed its opposition to the deployment of the S-300 missiles.

US Assistant Secretary of defence for Public Affairs Kenneth Bacon said the US had used its "strong bilateral relations with both Greece and Turkey to press for peaceful resolutions of disputes both on Cyprus and elsewhere."

Bacon also said the potential deployment of the S-300s could "ratchet up tensions on Cyprus".

[06] Minister moves into remove marina cranes

PROMPTED by a Cyprus Mail expos� on the crane dispute at Larnaca marina, new tourism minister Nicos Rolandis has moved swiftly to lift the deadlock.

With over 100 boats stranded on dry land and in the water because of a tender row over crane rights, normal operations at the marina ground to a halt for two months.

The minister said yesterday that after he had read the Mail's front-page article, he called for immediate action as soon as his appointment became official last Saturday.

Following orders from Rolandis, police entered the marina at around midnight on Thursday in a hush-hush operation to remove the cranes which were blocking access to and from the water.

Previously, police and the CTO had said they were powerless to act while legal action was being sought.

But newly appointed minister Rolandis told the Cyprus Mail he wasn't prepared to allow the island's reputation to be dragged through the mud over a petty squabble.

"I personally intervened because it was affecting our tourism. I gave instructions to the chief of police to remove the cranes and the Attorney- general agreed with me," Rolandis said yesterday.

"The old contractor and the new contractor had blocked access within the marina.

"I consider the marina a public place and obstructing movement a separate offence, which has no relation to the court action," explained Rolandis.

Ever since the stand-off began at the beginning of January, many boats coming up from the Red Sea were by-passing Cyprus - a traditional stopping off point for rest and repair.

The crane feud was costing the marina and local economy an estimated �20, 000 a day, but the damage done to the island's marine tourism is harder to evaluate, with boat owners caught up in the dispute vowing never to return.

"As long as nothing changes I'm delighted because everybody has suffered," one professional yacht owner docked in Larnaca said yesterday.

The Cyprus Mail also conveyed to Rolandis other complaints concerning the "poor facilities" and "bad management" of the marina, as well as fears that the same sorry business could come around again same time next year.

"I shall look into all these matters and put great emphasis on solving all the problems," the minister promised.

[07] Hellenic doubles profits in 1997

REINFORCING the feel-good factor behind the market's spectacular run this week, Hellenic Bank yesterday said it had more than doubled its pre-tax profits in 1997 and announced a 10-cent dividend over and above the six cents it had already paid shareholders.

In a statement by Chairman and Chief Executive Panos Ghalanos, the bank said 1997 pre-tax profits were �6.9 million, an increase of 103.2 per cent over the previous year. Operating profits also rose by 81.1 per cent in 1997 to �10.14 million.

"Our policy for the effective administration and containment of expenses played a pivotal role in the year's profitability," said Ghalanos, whose bank was established 12 years ago, acquired Barclays Bank Cyprus' on-shore operations in 1996 and presently has a 13 per cent market share.

The results by Hellenic, the island's third biggest bank, came one day after the larger Popular Bank announced an 18.2 per cent increase in 1997 pre-tax profits to �32.4 million. They also capped a dream week on the market and coincided with a much-publicised meeting in Nicosia of representatives from nearly two dozens European bourses.

The Cyprus Stock Exchange all-share index, continuing a seemingly unstoppable run, closed up 1.14 per cent yesterday at 85.09 points with all sectors making gains.

It was the fourth 1998 high in as many days and the highest ever since January 2, 1997. The market, which lists 47 companies and trades in over 100 securities, was closed on Monday because of the Green Monday holiday.

Volume yesterday was an impressive �2.03 million, but still less than Thursday's record �2.37 million.

CISCO, the Bank of Cyprus' fully-owned securities firm, said the market has already made up for all the lost ground of 1997, a disastrous year.

"We had a very interesting day, nearly as good as Thursday," said Costas Toumbouris of CLR, one of the island's top securities firms.

"There was widespread interest in all sectors and it seems that new money is coming to the market and we are seeing speculators coming back after an absence of nearly two years," he added.

"People are feeling comfortable and confident about the market."

Commercial companies fared the best, with their sub-index rising by as much as 4.97 per cent. Second to gain the most were industrials, which closed up 3.67 per cent.

In banks, by far the most active sector in the bourse, Hellenic gained 2.3 cents to close at �3.06-�3.07 with nearly 30,000 shares changing hands, while Popular Bank stocks crossed the �3.50 threshold to close at �3.50- �3.51 apiece. The Bank of Cyprus, the island's largest, closed up 1.4 cents at �3.46-�3.47.

Shares of the three banks accounted for more than 62 per cent of the market's capitalisation - �1.09 billion - at the end of last year.

The market's run provided an upbeat backdrop to yesterday's meeting of the Federation of European Stock Exchanges.

The meeting dealt with the issue of co-operation and alliances between bourses in Europe and touched on the likely impact of the Euro, the European Union monetary unit due to be introduced on January 1, 1999, on stock markets.

"With the forthcoming introduction of the Euro, time is running out and stock exchanges have to mobilise to tackle situations arising from it," said a statement issued at the end of the meeting.

The statement also spoke of the likely increase in investments linked to exchange indices after the introduction of the Euro "because they will be easier, of lower cost and less risky."

Underlining the meeting's theme of co-operation, Finance Minister Christodoulos Christodoulou told delegates: "The need to exchange experiences and the need to co-operate in co-ordinating our actions for the future development of our markets, has never been so important as now."

[08] 'No end to Diko absurdities'

EDEK leader Vassos Lyssarides yesterday blasted Diko for claiming the socialist party leader had been in favour of supporting Glafcos Clerides' re-election during a meeting between the two parties last year.

Earlier in the day, Diko general-secretary Stathis Kittis said Lyssarides had voiced a preference for Clerides' candidacy during a joint Diko-Edek meeting in May 1997. This came in the wake of claims made by Diko leader Spyros Kyprianou on Thursday that in a similar meeting before the second round of the 1993 presidential elections, Lyssarides had encouraged both parties to vote for Clerides instead of then-incumbent, George Vassiliou.

Lyssarides denied Kittis' statements yesterday, adding there seemed to be no end to the Democratic Party's decline, nor curbs to its "absurdities".

According to the Edek chief, the principal aim of the meeting had been to put an end to the Clerides government and set up a united social-democratic front, between the "Communist left and the right".

Such aims were made public immediately after the meeting, he added, in the presence of Diko representatives.

"If Mr. Kittis thinks the nation so stupid as to believe the reason for the Edek... visit to the Diko offices was to maintain the Clerides government, then I think it is insulting the public's intelligence," said Lyssarides.

Asked to comment on the 1993 meeting referred to by Kyprianou, Lyssarides said there had been a preference for maintaining a Diko-Edek front and the parties' then presidential candidate Paschalis Paschalides, had agreed to continue heading it.

"This had been my proposal," added Lyssarides, "but Kyprianou opposed it because he said Diko should participate in the (new) government."

Later yesterday, Paschalides himself pointed out that during the 1993 meeting, Lyssarides had said he would be proposing a "conscience-vote" for Edek members, after Kyprianou said Diko would support Clerides in the second round.

Meanwhile, Disy chief Nicos Anastassiades yesterday replied to Kyprianou's complaints that two ministries had been granted to Diko rebels recently expelled from the party for opposing the leadership's decision to back George Iacovou in last month's elections.

The Disy leader said Clerides had chosen two of the most successful ministers from the area of the democratic-centre, who had been supported by Diko for four years and nine months, until the demise of the Diko-Disy government coalition.

"If this displeases Mr. Kyprianou, let him make different choices when he becomes president," added Anastassiades.

[09] Police set to axe political bodyguards

Justice Minister Nicos Koshis said moves were under way to reduce the number of bodyguards currently protecting political figures.

It is now deemed unacceptable that some 150 policemen are engaged in protecting ministers and party leaders, over half of which are assigned to the latter alone.

House President and Diko leader Spyros Kyprianou tops the list with around 33 bodyguards, followed by Edek's Vassos Lyssarides with 18, and Akel's Demetris Christofias with 11.

Koshis said a special police committee was studying ways and means to cut down the number of guards, so as to deploy personnel more effectively in the fight against crime.

But he said the reductions were not just aimed at Kyprianou's vast ranks of guardians.

"When we talk about reductions we are talking across the board," Koshis said yesterday.

"A police committee is studying the issue," he added, "and will make a series of suggestions on reducing bodyguards by next week."

Once the recommendations are made the party leaders will be contacted to discuss the matter.

[10] Bosses warn against complacency

INDUSTRY bosses yesterday warned that the Gulf crisis and its effects on the Cyprus economy had not yet abated.

"I would like to remind people that the clouds on the horizon of the Gulf have not gone away and at any moment could change in a way that will affect us," said Employers and Industrialists Federation (Oev) chairman Andreas Pittas.

"We cannot rule this out," he added.

Pittas was speaking after a meeting with President Clerides along with Chambers of Commerce (Keve) chairman Vassilis Rologis to discuss the renewal of collective agreements in the industrial sector and the economy in general.

Keve submitted a hefty document to the President and the Finance Minister on the state of the economy and its recommendations for resolving issues such as confidence in the market, problems relating to different sectors and worker matters.

Employers, angling for a wage freeze or at least a minimal across-the-board increase, are pushing the uncertainty of the Gulf situation and developments in the Cyprus problem as reasons for restraint in demands.

Pittas said although the position of Oev was not "set in stone" on the issue of a wage freeze, adding he believed the entire issue could be reviewed in the light of developments.

"If there is a need to shift our positions, this will be decided when (Oev's) associations meet," Pittas said.

Rologis said Keve had not yet finalised its position on the collective agreements.

"We believe in the system of the social partners and the three-way co- operation between the unions, employers and the government, and we believe the economy will continue its upward trend," Rologis said. "We believe 1998 will be even better than 1997."

Labour Minister Andreas Moushiouttas, who met both employer organisations on Thursday, said the unions were obviously pushing for a pay rise and would not accept any demand for a freeze by employers.

The collective agreements in the industrial sector, which came up for renewal on December 31 1997, affect some 100,000 workers in sectors from building to clothing.

It is thought a compromise can be reached on an increase of 1.5 per cent, which will first be thrashed out in the building sector, the biggest employer in industry.

If agreement can be reached in this sector, others are likely to follow.

However, employers believe such an increase is not warranted in the clothing and footwear sector, where there have been a substantial number of redundancies.

[11] Central Bank happy with US report on money laundering

The commendation was in sharp contrast to a previous US State Department report which cited Cyprus as a possible centre for money laundering, particularly of illegal earnings by Russia's criminal underworld. That report also placed Cyprus among high-risk areas in regard to money laundering.

"The Central Bank of Cyprus has noted with satisfaction that the (US) report describes objectively that the Cyprus government's coordinated and continuous efforts in the last few years to combat the international problem of drug trafficking and money laundering," a bank statement said yesterday.

The bank also said that it had taken heart from a decision last month by the Financial Action Task Force, an OECD body set up to fight on money laundering, to drop the island from the list of countries which must be persuaded or pressured to adopt anti-money laundering measures.

"Needless the say, this development, which is the outcome of the systematic and serious work which has been done in the last few years, is expected to have a positive effect on Cyprus' efforts to join the European Union," the bank said in yesterday's statement.

Cyprus has in recent years been repeatedly accused by Western media reports of turning a blind eye to the laundering of money earned by the Russian mafia. These reports cited the island's offshore businesses and banking as conducive to such activity.

There are 33,000 companies registered as offshore companies in Cyprus, of which only 1,050 maintain full-fledged offices. Most of the rest conduct their business through local lawyers and maintain accounts in local banks.

[12] Cup could distract title challengers

EIGHT of the teams involved in first division action at the weekend, will have their minds on their midweek clashes in the quarter-finals of the cup.

But relegation-threatened sides like second from bottom Anagennisis, would not be too bothered about being knocked out of the cup if they manage to take three points from today's home clash with fellow strugglers Evagoras.

The Dherynia side are one point behind 11th-placed Evagoras and victory could lift them above their opponents, and possibly out of the relegation zone. Of course after last weekend's 10-1 drubbing by Omonia, Anagennisis' confidence must have taken a jolt.

It had been said that Anagennisis under-performed because they were preserving themselves for today's six-pointer, relegation clash. But conceding 10 goals is no way of preparing for a crucial tie. Ironically, Anagennisis had been showing signs of improvement before the Omonia debacle.

Evagoras did not fare much better last weekend against Aek who beat them 5- 1. This despite Evagoras taking the lead and playing against 10 men for most of the second half.

A record number of 38 goals was scored last weekend, averaging at more than five per game. Despite the goal feast, the number of people watching the games was the lowest of the season - a paltry 6,279 tickets were sold for seven fixtures.

League leaders Anorthosis, like the other three title challengers, are away from home today. They travel to Limassol to meet a resurgent Ael, who will be a different kettle of fish from the side the champions defeated 5-1 earlier in the season.

Ael, in seventh place, have improved considerably since the start of the season and could give the leaders a run for their money.

Anorthosis, who will be without suspended forward Krismarevic, could be thinking about Wednesday's cup clash at Apoel, whom they lead 1-0 from the first leg. In fact they will face Apoel twice in the space of five days as the two will also meet in the league a week on Sunday.

Apoel, whose only hope of salvaging their season is the cup, may prove easy prey for today's visitors to Makarios stadium, Paralimni, looking for their sixth away win of the season.

Paralimni are in eighth place in the table thanks to their impressive away record and could leave Nicosia today with the three points. It would be sweet revenge against the side who had ended their cup campaign.

Fifth-placed Aek are up against Paphos opposition for the second week in succession, but it is unlikely they will emulate last weekend's feat when they visit Apop. The two sides have produced four draws in their last four meetings.

Apop have suffered two successive defeats and will be looking to arrest the slide, even though they are still at a safe distance from the relegation zone.

In today's final game, third-placed Ethnikos Achna are away to Alki, for whom relegation appears a distinct possibility.

With the worst defence in the first division, Alki could easily fall victim to the predatory scoring instincts of Achna's Mousic who has got 15 goals this season. The home side's suspect defence will be seriously tested by the top counter-attacking side.

On Sunday a depleted Salamina side, missing six first-choice players, entertain second-placed Omonia at Ammochostos stadium. Ioannou, Nicoloau, Andreou and Louca are suspended, while foreigners Kovasevic and Michic, picked up injuries against Apollonas last weekend.

Omonia, without any cup distractions, are at full strength and with last Saturday's eight-goal hero Rauffman in top form, they should be good for the three points. Salamina have the cup clash against Apollonas in midweek to think about.

Apollonas will also field a weakened side at bottom club Ethnikos Ashia on Sunday, because of four injuries (Papavassiliou, Mladenovic, Georgiou, Charalambous) and three suspensions (Tsolakis, Vata, Kyriakou).

Ashia who have won only once at home, will be without their injured foreigners, Dzindzaradze and Tutic.

© Copyright Cyprus Mail 1998

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