From: tzarros@ccs.carleton.ca (Theodore Zarros) Subject: News (in ENGLISH)- Thu, 28 Apr 1994 (Greek Press Office BBS, Ottawa). Athens News Agency Bulletin, April 28, 1994 Bank of Greece governor calls for 'drastic' reduction of public deficits ----------------------------------------------------------------- Athens, 28/4/1994 (ANA): Bank of Greece Governor John Boutos yesterday called for a drastic reduction of public deficits and an increase in state revenue. In a report on the Greek economy, the central bank governor underlined that if the public deficits are not considerably reduced, stabilisation of the economy will not be possible. According to Mr. Boutos, the measures taken by the government and its target of reducing public sector borrowing requirements during the current year are simply "a first step". Expenditure for wages and pensions, Mr. Boutos noted in the report, should not exceed those provided in the state budget, while subsidies and grants should be considerably reduced and approved through "procedures of transparency". The main target of monetary policy for 1994, Mr. Boutos said, is the further slowing down of inflation, which he described as a fundamental prerequisite for strengthening investment and economic activity. Mr. Boutos stressed that real interest rates should be at levels which are consistent with the attainment of monetary and credit targets. The reduction in real wages observed during the past three successive years should not be allowed to continue, Mr. Boutos said, "not only because it has created social injustices and inequalities, but also since it undermines efforts to raise productivity". Mr. Boutos noted that recent efforts to stabilise the Greek economy had "limited and temporary results", making the country's participation in the economic and monetary union of Europe more difficult. He attributed the country's deteriorating economy to the government's failure in 1993 to cut the soaring state debt and deficit. "The increase in loan requirements together with high borrowing rates and weak economic activity resulted in an accelerated public debt increase," said the report. "Under these conditions efforts to stabilise the public debt become more difficult and the conditions for pursuing the plan on the convergence of the Greek economy to those of its EU partners are overturned," it warned. There was also a "significant deviation" in charted goals to stem double-digit inflation in 1993. Mr. Boutos said failure to meet the 1993 fiscal policy goals strongly affected foreign investments, productivity, and had led to a stagnant economy. Federation of Greek Industries (SEB) President Jason Stratos said in his address to the Bank of Greece's General Assembly there was no doubt "the basic reason for difficulties faced by the Greek economy is high public deficits." Mr. Stratos agreed with Mr. Boutos that what is necessary is "the implementation of a new and reliable medium-term programme of fiscal restructuring." In an announcement referring to Mr. Boutos's report, the main opposition New Democracy party said: "A month-and-a -half before the Euroelections, PASOK, which years ago did not want us to join the EC, proves to us now that it cannot put us into the United Europe of the year 2000." "ND has repeatedly warned that as of April the economic scene will be unbearably heavy. Unfortunately, the report by the governor of the Bank of Greece fully confirms ND's forecasts...," the announcement added. In a similar statement, the Political Spring party said Mr. Boutos virtually proposes new tax measures, an increase in insurance and pensioning contribution levels, a stiff wage and pension freeze and a new economic programme to handle deviations in the economy's crucial indicators. The Communist Party of Greece (KKE) said in an announcement the report proposes a continuation and intensification of one-sided austerity at the expense of the popular sectors, adding that the report's obvious target are adjustments to the European Union's mandates to achieve the goals set by the Maastricht Treaty. In its announcement, the Coalition of the Left and Progress said the new stabilising effort proposed in the report does not rule out surprise moves or new measures, which wage earners and the other popular sectors will have to pay for although they have borne the burden of all stabilising policies to date. Mr. Boutos made the following statement later: "It does not appear at any point in the report or in my address to the Bank that I am proposing to the government to impose new taxes. All claims to the contrary are arbitrary." Greece UN delegate shows Albanian claims groundless --------------------------------------------------- United Nations, 28/4/1994 (ANA): A recent Tirana letter to the UN criticising Greece's handling of last month's deaths of two Albanian conscripts in Albania, was dismissed Tuesday by Greece's Deputy UN Permanent Representative to the United Nations Adamandios Vassilakis, in a letter to UN Security Council President Colin Keating. Greece expressed sympathy, communicated its readiness to investigate the matter and condemned the act as criminal, Mr. Vassilakis wrote. "In view of the above, the Greek government has difficulty to explain the real motives of the Albanian government to maintain the tension which they created," he added. Albanian officials allege that on April 10, Greek soldiers crossed the border into the Albanian village of Episkopi, near Girokastr and raided an Albanian recruit centre, killing two conscripts. The Greek government denied any knowledge of the attackers or involvement in the incident. Mr. Vassilakis's letter was written in response to the Albanian permanent representative's April 20 claim that the Greek government had failed to condemn the incident. However, Greece did respond, according to Mr. Vassilakis, by proposing that Albanian police authorities contact respective Greek authorities on the matter, culminating in a meeting of the Joint Police Commission in Ioannina on April 20. In addition, Greece's government proposed -- and Albania's government agreed -- that the foreign ministers of the countries meet on May 3 to discuss the matter on a political level. Finally, Greece proposed a meeting of a joint commission of police authorities to investigate all evidence related to Episkopi. Albanian response to this proposal was "non-committal," according to Mr. Vassilakis. Since the incident, the Albanian government has instead maintained tension. Regarding Albanian allegations about a Greek Navy vessel entering Albanian territorial waters, Mr. Vassilakis wrote: "... On April 15, a Greek fishing boat was arrested by the Albanian authorities for allegedly fishing in Albanian waters. During the diplomatic exchanges on the matter, it was ascertained by the Greek Embassy in Tirana that the Greek vessel patrolling in the area did not enter Albanian territorial waters." The Greek UN representative added that the "incident of Episkopi seems to have been the origin of extensive arrests and house searches of prominent members of the Greek Minority in Albania, without due observance of legal procedures and, in most cases , with the use of force." Mr. Vassilakis also added a hope the Security Council would urge the Albanian government "to refrain from measures of harassment against the Greek minority." European Court sets referral hearing June 14 -------------------------------------------- Brussels, 28/4/1994 (ANA/G. Daratos): The European Court of Justice (ECJ) yesterday set June 14 as the date for the hearing of the action brought by the European Commission against Greece for its retortion measures against the Former Yugoslav Republic of Macedonia (FYROM). This is 21 days away from May 24, the date set for Greece to submit its observations on the action brought by the Commission against it. Legal circles in Brussels consider that the setting of June 14 as the date for the hearing, shows that EU clearly wants to avoid issuing its ruling on the case before the EU Corfu summit meeting on June 24 and 25, or the expiry of the Greek presidency on June 30. It is anticipated that appointed ECJ prosecutor Francis Jacobs will submit his proposals at the end of June, while it would take another 10 to 15 days for the Court to issue its ruling. Premier to meet with UN Secretary-General today ----------------------------------------------- Athens, 28/4/1994 (ANA): Prime Minister Andreas Papandreou today will discuss the issues of the Former Yugoslav Republic of Macedonia, Cyprus, and the crisis in Bosnia with UN Secretary-General Boutros Boutros Ghali, government spokesman Evangelos Venizelos said yesterday. Concerning Cyprus, Mr Venizelos was particularly doubtful as to whether or not there might be discussions on the substance of the issue, given the ongoing mediation efforts and the inflexible stance displayed by the Turkish side. At his meeting with Mr. Ghali, Mr Papandreou will be accompanied by Foreign Minister Karolos Papoulias. Mr Papoulias was also due to address a special opening session of the Security Council on Bosnia at Foreign Ministers' level late last night Greek time, in his capacity as president of the European Union Foreign Ministers' Council. The meeting was requested by the Conference of Islamic Countries, of which eight foreign ministers were due to speak, beginning with those of Turkey, Pakistan and Saudi Arabia. Mr Papoulias also met with co-chairman of the conference on former Yugoslavia Lord Owen, in the context of his regular contacts in the search for a peace solution. Yugoslavia blames Albanian over shooting incident ------------------------------------------------- United Nations, 28/4/1994 (ANA/M. Georgiadou): The Yugoslav permanent delegation to the United Nations last night issued a statement "expressing concern over the continuous provocations of border incidents and the escalation of the anti-Yugoslav Albanian campaign, aiming at territorial claims against the Federal Republic of Yugoslavia". The statement says that Albania, without any reason, made accusations against Yugoslavia and allegations against Greece concerning its positions on the Yugoslav crisis. It refers to an Albanian Foreign Ministry statement, April 18, accusing Greece and Yugoslavia of "provoking co-ordinated border incidents", which it describes as "unfounded and cunning". The Albanian side, the statement says, is wholly responsible for the incidents, having repeatedly violated international regulations on the respect of borders. Papoulias, Vance have 'Very constructive' meeting ------------------------------------------------- Foreign Minister Karolos Papoulias last night met with UN Skopje Co-ordinator Cyrus Vance for 45 minutes. "The meeting was very useful and constructive, I hope we will meet again," Mr. Vance said. He told a questioner he was neither pessimistic nor optimistic on the outcome of the talks, and would not give up his UN Security Council mediating mission. Premier hosted by Archbishop Iakovos ------------------------------------ New York, 28/4/1994 (ANA/V. Mourtis, S. Liarellis, D. Dimas): Prime Minister Andreas Papandreou yesterday reiterated his optimism over Greek national issues, but added that on the issue of the Former Yugoslav Republic of Macedonia (FYROM) he felt "reserved optimism." Shortly before attending a lunch given by Archbishop of North and South America Iakovos, Mr. Papandreou said he ascertained a positive climate at the White House which has been consolidated, but stressed that details and actions cannot be foreseen, and what will happen in the future will also depend on us. The Archbishop officiated a service for former National Economy Minister George Yennimatas who died in Athens on Monday after a long struggle against lung cancer. Thanking the Archbishop, Mr. Papandreou said George Yennimatas was an unforgettable friend and fighter, adding that his death was a great loss to himself and the party but, primarily, it was a loss for the country. Archbishop Iakovos referred to the diocese's role in uniting Hellenism and Orthodoxy, adding that its purpose is to be on the prime minister's side in all struggles, since "every problem of Greece is also our own." Mr. Papandreou in turn said the diocese's task was great, stressing Archbishop Iakovos's contribution to the continuation of our culture and religion and his active support in the nation's struggles. US investors' interest in joint ventures with Greeks in Balkans --------------------------------------------------------------- New York, 28/4/1994 (ANA/V. Mourtis, S. Liarellis, D. Dimas): Alternate National Economy Minister Yiannos Papantoniou has had talks with US government and economic officials in New York who showed strong American interest in making investments in Greece. Mr. Papantoniou said the US international investment organisation OPIC has already decided to raise investment capital of US origin amounting to 50 million dollars to support joint Greek-American investment initiatives in Balkan and Black Sea countries. The capital will be used for insurance coverage and funding high risk investments with favourable conditions. US enterprises are also showing great interest in the sectors of tourism, construction, chemicals, foodstuffs and high technology (computers, hardware and software). Mr. Papantoniou's contacts included meetings with US Finance Under-secretary Larry Hammers and Foreign Under-secretary Jim Spero. Baker warns on dangers of war spreading to FYROM ------------------------------------------------- Washington, 28/4/1994 (ANA/D.Dimas): Former US Secretary of State James Baker warned against a spreading of hostilities from Bosnia to the Former Yugoslav Republic of Macedonia, saying it would drag into war almost all countries in the region. "If the conflict spreads to the Former Yugoslav Republic of Macedonia (FYROM) I believe Bulgaria, Albania, Greece and possibly Hungary and Turkey will also engage in war," Mr. Baker was quoted as saying in an interview with the US daily "USA TODAY". "If war takes place in Europe it will be extremely difficult for the US to avoid involvement," Mr. Baker added. He was further quoted as saying that: "If we want to stop the spreading of hostilities we should be prepared to adopt an attitude of principles. "We should make clear to any would-be adventurers prying in FYROM that they will be confronting the whole NATO forces." According to the newspaper, Mr. Baker did not give a clear answer as to whether US troops should remain in FYROM, in the framework of the United Nations Peace-keeping operation. G. Papandreou urges Ankara seek courage over Cyprus --------------------------------------------------- Istanbul, 28/4/1994 (ANA): Greek Foreign Under-secretary George Papandreou yesterday urged Ankara to "find enough courage" to try finding a solution to the Cyprus issue. "The issue here is whether or not (Turkish Cypriot leader Rauf) Mr. Denktash and Turkey are willing to make a real effort towards a solution," Mr. Papandreou was quoted as saying in an interview with Turkish newspaper "Cumhurriyet." He was further quoted as adding that: "(if they are willing) the way leading to a solution is known (to them.) It would have been better if Turkey found courage to proceed with a solution." Meanwhile, according to Turkish press reports, UN Secretary General Boutros Boutros Ghali's special representative Joe Clark was not received by Prime Minister Tancu Ciller and Foreign Minister Hikmet Cetin, as expected. The Turkish newspaper "Hurriyet" described as "impertinence" the refusal of the Turkish leadership to meet with Mr. Clark, stressing that the latter was confronted with a Turkish Parliament announcement granting full support to Mr. Denktash.