From: than...@athena.mit.edu (Thanos Tsekouras) Subject: Greek news from Athens News Agency for June 8, 1993 Date: 9 Jun 1993 04:25:14 GMT Athens News Agency Bulletin, June 8, 1993 Luxembourg, 8/6/1993 (ANA - K. Verros): At a time when most of the European Community's member-states are faced with ever-growing recession, Greece constitutes one of the "very few positive examples". National Economy and Finance Minister Stephanos Manos said here yesterday after the ECOFIN meeting of EC finance ministers. It has been ascertained by all sides that Greece's economy "is on the right path", Mr. Manos said. Referring to both the ECOFIN meeting and the Organisation for Economic Cooperation and Development (OECD) report, which the organisation will discuss at the end of the month. Mr. Manos said that the report said the Greek economy was on the right path "to overcoming the structural and macroeconomic imbalance of the 80s" when the country's economy sustained its greatest damage. Mr. Manos underlined "paragraph 99 in the OECD report, which notes that during the 80s the drachma was devalued much more than was necessary, without this helping Greece's export yields, but on the contrary, reducing pressure on business to increase their competitiveness". "I also point out that this speedy depreciation created inflationary pressures which, in the long run, worsened our productivity and export yields", he said, adding that the policy of speedy depreciation, supported by some, will not lead to positive results. Mr. Manos said Greece was one of the "few very positive examples" - ascertained by the EC and the OECD - at a time when the recession was hitting the European Community much harder than had been expected late last year. He also expressed the hope that the International Monetary Fund's (IMF) report on the Greek economy would also be positive. The IMF Council discussed Greece last Friday. Mr. Manos added that he will release the IMF report as soon as he receives it. The OECD report stresses that, since the end of the 70s, the Greek economy's performance has been "particularly disappointing", with low GDP development rates and high inflation. "Structural obstacles, unproductive mechanism and unsuitable policies led to significant reductions in industrial production and exports" while the "intolerably high public deficits played an important role in the worsening of long-term trends". Summing up, the OECD report says that "backed by the restrictive macroeconomic policy and the structural reforms, the Greek economy entered 1991 in a period of adjustment after at least 10 years of very low development rates and great and increasing imbalances". The report says that progress achieved "is considerable" as shown by the "great reduction of the public sector's borrowing requirements between 1990 and 1992 (from 18.5 per cent to 10.5 per cent of GDP) of inflation (from 20.5 per cent to 15.5 per cent) and the current accounts deficit (from 5.5 per cent to 2.5 per cent of GDP)". However, the OECD notes in its report that "despite these achievements, the Greek economy is still in a difficult position, since with the public sector's borrowing requirements at about 10 per cent of GDP, the public debt at 116 per cent of GDP and inflation probably at 12 per cent at the end of the year, Greece is far from satisfying Maastricht criteria", while most of the recent gains can "easily be reversed" if there is deviation from current policies. Luxembourg, 8/6/1993 (ANA - K. Verros): Transport Minister Theodoros Anagnostopoulos yesterday asked the Community to take action to facilitate transport through third countries to offset transport problems Greece is facing due to the conflict in former Yugoslavia. Speaking at a meeting of EC transport ministers here, the Greek representation presented a communique detailing the prevailing situation, its concequences and the aims of the Greek side. "Further effort from the Community and the member-states is required to avert isolation of the Southeast end of the EC from the rest of the Community body", the communique said. During the discussion, Mr. Anagnostopoulos suggested that the EC and member-states take action to restore Community "free-transit to and from Greece". The communique stressed the importance of the Community-Greece axis and the fact that 81.6 per cent of Greek products exported by land reach destinations in central and western Europe. Perishable goods such as fruit, vegetables and other foodstuffs represent 65 per cent of all products exported by land, while fresh fruits and vegetables reaching destinations in the Community and the EFTA member-countries represent 43 per cent of Greece's total exports. In addition, the majority of the farming products which reach the Community from and via Greece have a low price per volume unit therefore their transportation costs play a decisive role in the formation of the market price of products in the Community markets. Athens, 8/6/1993 (ANA) President Constantine Karamanlis yesterday called on Skopje's leadership to act in the best interests of their republic. "The issue is simple and easy as long as Skopje understands what is in its best interests", Mr. Karamanlis said when asked to comment on developments in the Skopje issue. Paris, 8/6/1993 (ANA - A. Podimata) The Vance-Owen Skopje mediation report is a just compromise between Greece and the former Yugoslav republic, worthy of extensive and in-depth examination, international mediator Lord Owen said in Paris yesterday. He said that neither he nor Mr. Vance "intend to reopen the matter at our own initiative", underlining that "if the Greek prime minister and the Skopje president want to talk directly and consider that our presence is of assistance to them, then we will participate gladly". He was replying to a question by the ANA on whether there will be any new proposal for a solution to the Skopje problem after both sides had rejected the plan he and Mr. Vance submitted. Lord Owen was in Paris to meet with French Foreign Minister Alain Juppe yesterday. Tirana, 8/6/1993 (Macedonian Press Agency) Albania will block an attempt by Skopje to accede to the Conference for Security and Cooperation in Europe (CSCE) as a full member, unless the former Yugoslav republic begins showing respect for the rights of its Albanian citizens, Albanian Foreign Minister Alfred Serraqi told Albanian television after meeting with his Italian counterpart Beniamino Andreatta in Rome yesterday. "Albania recognised the republic, convinced that this action would help bring stability to the region. But, on the other hand, the Albanian government seeks recognition and respect for the rights of the Albanians without discrimination. As long as these demands are not satisfied", he said, Albania will block Skopje's accession to the CSCE. Mr. Serraqi described as "very serious" the situation in Kosovo, warning that it could spiral out of control. The insecurity that prevails in the region, the lack of progress in Bosnia where the war continues, the increase of violence and terrorism, the Serbian military presence and the ethnic cleansing operations are some of the causes which have made the situation in Kosovo tenser, he said. He reiterated the demand of the Albanian gevernment for more CSCE observers in Kosovo and the deployment there of NATO and UN forces. "These measures will help resolve the Kosovo issue with political means", Mr. Serraqi said. Athens, 8/6/1993 (ANA) On her return from a seven-day tour of former Soviet Union nations, Foreign Undersecretary Virginia Tsouderou said that Greece fully intended to develop cultural, political and economic relations with the fledgling republics. Ms. Tsouderou visited southern Russia, Armenia, Azerbaijan and Georgia and held contacts with authorities and representatives of local Greek communities there. She met with Georgian Prime Minister Tengiz Sigua to whom she delivered a letter for Georgian President Eduard Shevardnadza from Prime Minister Constantine Mitsotakis. Greeks living in the republic of Georgia are estimated to number 120.000. On the occasion of her visit to Armenia and Azerbaijan, Ms. Tsouderou announced the opening of Greek embassies in these countries in the next few days. She said Greek embassies would also soon open in Kiev, Ukraine, and Tbilisi, Georgia. Ms. Tsouderou said these countries expected Greece's support during the period of its EC presidency as it would be in a position to promote their positions all over Europe. She said they were faced with major economic and political crises and required help in all sectors. Referring to national issues, Ms. Tsouderou said the Greek government was handling them with prudence and realism, saying that she had been reassured at the end of her long tour that Greece specially appreciated for the way in which it handled both national and European issues. Athens, 8/6/1993 (ANA) The European Community's foreign ministers will meet their US counterpart Warren Christopher to discuss NATO policies in the light of the collapse of the Warsaw Pact today in Luxembourg. Foreign Minister Michalis Papaconstantinou will represent Greece at the meeting. The meeting will focus on the situation in Yugoslavia and also discuss relations between the EC and former Eastern bloc nations. In a statement before his departure yesterday, Mr. Papaconstantinou said the Skopje issue would not be discussed at the meeting. Mr. Papaconstantinou also refuted press reports that France would establish a diplomatic mission in Skopje. France will not establish diplomatic relations with Skopje, unless the "12" agree on diplomatic recognition and an agreement is also reached between the two parties involved, he said. Mr. Papaconstantinou said that Skopje was pursuing NATO accession, but "had yet a long way to go". Meanwhile, Athens was preparing to play host to a meeting of NATO foreign ministers on Thursday and Friday in Vouliagmeni. Sixteen NATO foreign ministers from member-states will participate in the meeting on Thursday while, on Friday, foreign ministers of former member-states of the Warsaw Pact will also join the meeting. Mr. Papaconstantinou will return to Greece tomorrow to host the NATO meeting at which he will hold a series of bilateral meetings with Mr. Christopher, his Russian counterpart Andrei Kozyrev and his Turkish counterpart Hikmet Cetin. Athens, 8/6/1993 (ANA) Twenty-one illegal migrants spotted in the sea region between the Greek island of Kos and the Turkish coast at dawn Saturday have returned to Turkey following a demarche lodged by the Greek ministry. Foreign Minister Michalis Papaconstantinou said the matter was over, adding that cooperation was necessary between Greece and Turkey in controlling gangs of Turkish criminals who transported illegal migrants. Athens, 8/6/1993 (ANA) National Defense Minister Ioannis Varvitsiotis, currently on a two-day official visit to Vienna held a series of meetings with Austrian Federal Vice Chancellor Erhardt Bauen, Foreign Minister Alols Mock and his Austrian counterpart Werner Fasslabend. The meetings focused on the situation in former Yugoslavia and the war in Bosnia-Herzegovina as well as matters related to illegal immigration in Europe. On Sunday Mr. Varvitsiotis was received by Archbishop Michael. He is due in Athens today. Athens, 8/6/1993 (ANA) Chairman of NATO's military committee Field Marshal Sir Richard Vincent arrived in Athens yesterday to attend a meeting of NATO foreign ministers due to take place at the Asteres Hotel in Vouliagmeni on Thursday and Friday. During his stay in Greece Field Marshal Vincent is expected to meet with the national defense ministry's political and military leadership. [Copied by Thanos Tsekouras]