From: zarros@turing.scs.carleton.ca (Theodoros Sp. Zarros) Subject: News (in ENGLISH)- Fri, 3 Dec 1993 (Greek Press Office BBS, Ottawa). Athens News Agency Bulletin, Dec. 3, 1993 Athens, 3/12/1993 (ANA): Prime Minister Andreas Papandreou yesterday appealed to political parties, the mass media and all Greek citizens to help the government in its efforts to achieve economic recovery. "We must decide whether to get the country out of debt or (to allow) the debt to destroy our nation", Mr. Papandreou said chairing a joint meeting of the Inner Cabinet and the Economic Committee yesterday. "The enormous public debt", he said, "has brought the budget and the Greek economy to its knees, while high interest rates are strangling investments". Strongly criticising what he described as "the atrocious handling of public finances" by the previous New Democracy government, Mr. Papandreou said that the last three years of conservative rule had resulted in the public debt's rising from 9 trillion drachmas under the PASOK government in 1989, to about 20 trillion drachmas in 1993. Announcing expansion of the taxation basis, Mr. Papandreou said there should be social justice in the share of fiscal burden. "It is not only wage-earning workers who should pay", he said. "Although the crisis has not been caused by the present government, it is responsible for handling it, and it has succeeded in this, thanks to the tireless work of the ministers concerned and other government members. Resources necessary to close 1993 smoothly have been found, and so a situation which was very dangerous for the country's economy has been overcome without impact on markets or upsetting the country's economic life", Mr. Papandreou said. Mr. Papandreou said the deeper causes responsible for the crisis remained, and he criticised the New Democracy government for its very bad fiscal management over the last three years. Over these years, he said, resources had been lavishly granted to the rich and, in the final year, to which it gave a pre-electoral character, "extravagance and lavishment" took on proportions of an orgy. He said the result was that the initial 1993 budget deficit assessment had been exceeded by one trillion dr. Referring to the 20 trillion drachmas public debt left behind by ND government, Mr. Papandreou said more than four trillion dr. will have to be paid for interest and instalments in 1993, and about 5.3 trillion dr. in 1994, namely over 70 per cent of the budget's total revenues will be spent for that purpose. "Public debt has brought the state budget to its knees, high interest rates choke investments, businesses shrink, employees lose their jobs, the economy becomes impoverished in its entirety, and only a certain number of major bond-owners become rich", Mr. Papandreou said. Mr. Papandreou said this situation was no longer acceptable, adding the sole way of ridding the country of the public debt burden is quicker economic development providing the state with higher revenue, while lower interest rates would alleviate the public sector's liabilities considerably in the current handling of its loans. "The government attaches prime importance to the development drive, and the decision taken is to pursue this in every way. In this decision, we will converge with other European peoples", he said. The great increase in the public debt, he said, is also due, to a large extent, to state institutions and the taxation system not following the economic modernisation carried out in the country during the 20-year period from 1950 through 1970. Referring to the taxation machinery, Mr. Papandreou said it had proved incapable of including professionals who had emerged as a result of economic development were not included among those who paid tax. Mr. Papandreou acknowledged that previous PASOK governments are also responsible for "not supporting this policy in practice with equal vigour" despite stressing the need for a development policy. "A change in this situation does not only require a change in government attitude, which is necessary, but also a change in the attitude of all society. The government is determined to do what is necessary. And it is determined' to turn a new leaf in the country's life, supported by the confidence of the majority of the people, yet attending to the interests of all Greeks", Mr. Papandreou said. Referring to government taxation policy, Mr. Papandreou said the constitutional principle of citizens' equal participation in public burdens would be imposed, and the state of legal or illegal taxation evasion by large categories of the population brought to an end. "We will restore justice, consolidate the feeling of justice among the people to enable them support the development drive unimpeded", Mr. Papandreou said. Mr. Papandreou said the key to success of development policy were investments, and an increase in productivity, adding that employees and businessmen can win the productivity battle. Athens, 3/12/1993 (ANA): National Economy and Finance Minister George Yennimatas will release the working texts of taxation and development bills today, government spokesman Evangelos Venizelos said yesterday after the two-and-a-half hour meeting. "The government aim is to speed up the dialogue process and, if possible, complete it by mid-January. There is a time limitation to also facilitate discussion on the course of the economy", Mr. Venizelos said. Mr. Venizelos said the time limitation to the dialogue's duration was not tight, adding the government aims at having the discussion concluded by mid-January. But should a need arise to lengthen dialogue the government did not rule out extending it. Mr. Venizelos said that at yesterday's meeting unanimity had been reached on government aims, after serious and prolonged discussion. "The government also aims to find solutions to the economy's problems which will gain broad acceptance. The two working texts will be discussed simultaneously, and the government will listen to all proposals. But it will make final decisions alone", he said. Mr. Venizelos said it was not possible for mutually acceptable solutions to be found to all problems, adding that the taxation bill would be fair with the government remaining steadfast in its policy of development, stability and social care. Athens, 3/12/1993 (ANA): Greece yesterday called on the Former Yugoslav Republic of Macedonia (FYROM) to show respect for international law and abandon its "intransigent, provocative and indirectly threatening positions". Replying to press questions on the contents of a letter sent by FYROM Foreign minister Stevo Crvenkovski to U.N. Secretary General Boutros Boutros Ghali as reported by Skopje state radio, government spokesman Evangelos Venizelos said: "It is clear that the Skopje government does not wish to understand the contents of the letter sent by Foreign Minister Karolos Papoulias to the U.N. Secretary General. "Greece's position is firm. The Skopje government must show respect for international law and contribute to the maintenance of stability and security in the region. This means that it must abandon its intransigent, provocative and indirectly threatening positions, which the diplomatic style of Mr. Crvenkovski's letter fails to conceal. Greece is certain that the U.N. Secretary General will evaluate Skopje's true stance and draw the necessary conclusions". In a related development, Political Spring leader Antonis Samaras yesterday reiterated his proposal to convene a meeting of political party leaders under the chairmanship of president Constantine Karamanlis to discuss the Skopje issue. Mr. Samaras also urged the government to raise the issue at the forthcoming E.C. summit in Brussels. Athens, 3/12/1993 (ANA): Greece yesterday expressed regret over France's intention to establish diplomatic relations with the Former Yugoslav Republic of Macedonia (FYROM). "The Foreign Ministry expresses regret over the French Foreign Ministry's intention to proceed with the establishment of diplomatic relations with FYROM", Foreign Ministry spokesman Constantinos Bikas said. French Foreign Ministry spokeswoman Catherine Colonna had said earlier in Paris yesterday: "Taking into consideration FYROM's admission to the United Nations, the decision taken in principle by the French government is to establish diplomatic relations between Paris and Skopje. Its a decision taken by France on its own". Mr. Bikas added that France's "intention does not coincide with Community solidarity, and does not contribute to the efforts of finding a solution to the Skopjan issue". Ms. Colonna said France intends to grant diplomatic recognition to Skopje before the end of 1993 under the name "Former Yugoslav Republic of Macedonia". She said the issue to grant diplomatic recognition to Skopje had been "dealt with" in talks between French Foreign Minister Alain Juppe and German Foreign Minister Klaus Kinkel at the Franco-German Summit in Bonn on Wednesday. "Nevertheless", Ms Colonna added, "it is a decision (to establish diplomatic relations with FYROM) taken by France, because it concerns diplomatic relations between France, which is a state, and another state". Earlier, Government spokesman Evangelos Venizelos reiterated that the issue of recognition of FYROM should be dealt with on the basis of Community solidarity and the principles of joint (European) foreign policy. "It is clear", the spokesman said, "that all countries wishing to formulate responsible and long-term foreign policy, should take the position of the Greek government into serious consideration". "France expressed a wish for a quick settlement of the issue last June. Now it is December, and there have still been no developments", Ms. Colonna explained. France has been keeping a general representation in Skopje for a year now. Athens, 3/12/1993 (ANA): The United States will officially open today a Liaison Office in Skopje, the U.S. Embassy in Athens announced yesterday. The establishment of a Liaison Office does not change the U.S. Government's position on recognition, the announcement added. According to the announcement, the office will be called the "U.S. Liaison Office in Skopje" and will be headed by a Principal officer. "The opening of a U.S. Liaison office in the Former Yugoslav Republic of Macedonia is not a totally new departure but, rather, an evolution of the United States Government presence that has been maintained in Skopje for the past twenty years through the office of the US Information Service. "Expanding US representation offers, among other things, additional support to U.S. troops deployed in the Former Yugoslav Republic of Macedonia. "The Principal Officer will serve as Liaison Officer with the U.S. military unit stationed in the country. "An increased US presence will also enhance U.S. ability to support the sanctions monitoring activities of the CSCE, as well as facilitate bilateral communication on sanctions issues", the announcement said. Skopje, 3/12/1993 (ANA - M. Vihou): "Nova Macedonia", a Skopje newspaper, yesterday quoted US Liaison Officer Robert Norman as saying that "according to American protocol, the United States will have to grant Skopje recognition at diplomatic level, before it establishes an Embassy". "Until today, the United States has not granted such recognition, even though it supports the country's territorial integrity, as is evident from U.S. military presence here", the newspaper quoted Mr. Norman as saying. The establishment of a Liaison Office in Skopje, the U.S. Liaison Officer pointed out in the interview, will ease contacts between Washington and Skopje, and help the two countries develop economic and political relations. Brussels, 3/12/1993 (ANA - K. Verros / P. Pantelis): Foreign Minister Karolos Papoulias supported Greek positions at yesterday's meeting of NATO foreign ministers. He also had private talks with NATO Secretary-General Manfred Woerner and French Foreign Minister Alain Juppe on diplomatic relations with the Former Yugoslav Republic of Macedonia (FYROM), as also an acquaintance meeting with U.S. Secretary of State Warren Christopher. Mr. Papoulias spoke on the role Greece could play in the Balkans, as part of Nato's new relations with central and east European countries. "Tomorrow we will have lengthy discussions with the foreign ministers of central and east European countries on co-operation with them". "I believe that the new American proposal for partnership for peace will contribute decisively to developing co-operation with countries of central and east Europe, and considerably strengthen security and peace on our continent", Mr. Papoulias said. Mr. Papoulias said ministers attached particular importance to developments in former Yugoslavia. Referring to his meeting with Mr. Juppe, Mr. Papoulias said he had briefed him on the Greek view that establishment of diplomatic relations with FYROM would be tantamount to action lying beyond Community solidarity, adding the Greek people would react with great scepticism to it. Mr. Juppe said he understood Greek positions, but could not anticipate the French government's decision on the FYROM issue. In Mr. Papoulias' view, no organised plan existed for establishing diplomatic relations with FYROM but judging from Mr. Juppe's in particular, he felt there was a trend in that direction. Mr. Papoulias opined the FYROM issue had not been lost. "We are battling to win it", he said. He may meet with his Turkish counterpart Hikmet Cetin today.