US President Bill Clinton's senior adviser George Stephanopoulos said last night that he had a vision for a peace agreement involving the leaders of Greece, Cyprus and Turkey, along the lines of the Israeli-Palestinian accord.
In a wide-ranging speech on 'US policy for Greece, the Balkans and Europe' at the Athens College last night, Mr. Stephanopoulos said the US considered direct dialogue between Athens and Ankara as the most appropriate procedure for the resolution of Greek-Turkish differences and that Greece had a leading role to play in the Balkans, praising its role in the search for a peaceful solution to the war in the former Yugoslavia.
Mr. Stephanopoulos arrived in Athens earlier yesterday for talks with the Greek government on the third and final leg of a fact-finding tour of the region. He is scheduled to have talks today with Prime Minister Andreas Papandreou, Foreign Minister Karolos Papoulias, National Defense Minister Gerassimos Arsenis and main opposition New Democracy party leader Miltiades Evert.
Mr. Stephanopoulos told his audience last night that Greece should support the European orientation of Turkey, which "felt threatened by Islamic fundamentalism, PKK terrorism, and its neighboring countries".
He acknowledged that Greece had contributed in that direction by lifting the veto on Turkey's customs union with the EU, adding that a "European Turkey", in combination with Cyprus' accession, can provide the key to a solution of the Cyprus problem, which was to the interest of both countries and the North Atlantic Alliance. The United States aims at a Cyprus which is unitary, federal, and a member of the European Union, he added.
Referring to his visit to the Orthodox Ecumenical Patriarchate in Istanbul, Mr. Stephanopoulos said he had felt moved by his meeting with Patriarch Vartholomeos and confirmed US interest in the seat of Orthodox Christianity and the Greek community in Istanbul.
Mr. Stephanopoulos said the United States encouraged Greece to play a leading role in the Balkans, and praised Greece's role in the search for a peaceful solution to the war in the former Yugoslavia, stressing its special relationship with Serbia which is valuable in that direction.
Referring to a relevant statement by US Defense Secretary William Perry, he acknowledged that the US role in the Yugoslav crisis was not the most appropriate from the start, and that the recognition of Croatia in 1991-92 was "premature".
Referring to Greece's protracted dispute with the Former Yugoslav Republic of Macedonia, he called on Athens to lift the economic retorsion measures against its neighbor, so that "a new era would open in the two countries' relations, to the benefit of both". He expressed optimism for a quick solution to the problem.
Before his speech last night, Mr. Stephanopoulos told reporters the US supported "the accession of Cyprus to the European Union, and we would wish it to join with the Cyprus issue resolved".
Speaking after receiving the city's golden medallion at a function at the Town Hall, he said he learnt a great deal from his visit to Cyprus, adding that he reiterated President Clinton's message and policy on the Cyprus issue, namely that the division and the present status quo were unacceptable. "Ever since assuming his duties, President Clinton has worked to find a solution to the problem ... in all his meetings with (Turkish Prime Minister Tansu) Ciller and Turkish officials he places emphasis on the fact that the Cyprus problem should be resolved," Mr. Stephanopoulos said.
In statements at Nicosia airport as Mr. Stephanopoulos left earlier yesterday, Cyprus Parliament President Alexis Galanos said it was "sad" that a US government official did not feel it necessary to refer to the violation of international law and the violation of Cyprus' territorial integrity by Turkey.
"Nobody doubts Mr. Stephanopoulos' good intentions and we shall await his report on Cyprus which he will submit to President Clinton," Mr. Galanos said. "On the other hand," he added, "the fact that he failed to refer to the issue of the continuing Turkish illegality, the Turkish invasion and occupation of Cyprus is a matter which should cause us some concern".
Prime Minister Andreas Papandreou yesterday received Archbishop Iakovos of North and South America at his residence in Ekali. "I have the joy and honor to receive the Honorable Iakovos, who has contributed and continues to contribute his authority and influence to our major national issues," the premier said. "I consider it my honor and privilege to come to your residence and meet an old and dear friend and associate in our national issues," the archbishop said.
Prime Minister Andreas Papandreou met with Environment, Town Planning and Public Works Minister Costas Laliotis and other ministers at his residence in Ekali yesterday.
Sources said the meeting with Mr. Laliotis focused on the issue of the Spata airport, which will be debated today in Parliament.
The premier also held a meeting with Culture Minister Thanos Mikroutsikos and Macedonian-Thrace Minister Constantine Triarides, who briefed him on issues related to Thessaloniki's role as Europe's Cultural Capital for 1997.
Main opposition New Democracy party leader Miltiades Evert urged Archbishop Iakovos of North and South America Iakovos not to resign for the sake of Orthodoxy and major problems to be faced in the next two years, when the two men met last night.
"In no way do I wish to accept that you will not continue to offer your services. This is necessitated not only by Orthodoxy but also by the major problems we are going to face in the next two years. Therefore, the request of the Greek people and the en tire nation is that you remain in your position," Mr. Evert said.
"I hesitate in saying I performed my duty in full because, as you know, duty never ends," Archbishop Iakovos said in reply. He expressed the hope that God will solve the country's problems and will protect Greece.
"Up until my last breath, I will be happy to be able to offer whatever services, regardless of how limited and small that they may be, to this great issue called the nation and Orthodoxy," Archbishop Iakovos said.
President Kostis Stephanopoulos ended his tour of islands in the northeastern Aegean yesterday, saying that the heart of Greece beat in the vigilant border islands. President Stephanopoulos, who started his tour on Friday, visited the islands of Ayios Efstratios and Lemnos yesterday.
In a speech in Myrina, he said that, through his visit, the state had paid tribute to the border guards of the Aegean. "Oblivion is not worthy of the Aegean. The centre of Greece is here," he said and, addressing the people of the islands of Imvros and Tenedos, said "I feel the need to apologize because Greece has not offered them adequate solidarity."
The Aegean islands of Imvros and Tenedos were ceded to Turkey under the 1923 Treaty of Lausanne; since then, the bustling Greek populations on both islands have fallen to a fraction of what they were.
Referring to relations between Greece and Turkey in the Aegean region, President Stephanopoulos said "nobody can support his views with arbitrary arguments and distortions." He visited the remote island of Ayios Efstratios at 9 am and laid a wreath in honor of the men who were exiled there during the Greek civil war.
President Stephanopoulos flew over Cape Sialmas in a helicopter, paying tribute to the pilot downed three years ago during an interception with Turkish aircraft and also visited the Zavalaki checkpoint and the 130 combat squadron where he watched a display by warplanes.
President Stephanopoulos was accompanied by Tourism Minister Nikos Sifounakis, Minister to the Aegean Antonis Kotsakas and Northern Aegean regional governor Athanassios Yiakalis.
Main opposition leader Miltiades Evert yesterday broke his silence on comments on Saturday by his predecessor Constantine Mitsotakis that he coveted a return to the leadership of New Democracy. "Each politician can have his ambitions but the things preoccupying the Greek people are the great problems they face," Mr. Evert said.
"The farmer is concerned with his problems, small and medium-size businessmen are facing a crisis and closure of stores, the unemployed, unemployment. If we show our concern for (those issues), the country can go forward," Mr. Evert said.
Government spokesman Evangelos Venizelos, asked by the press to comment on Mr. Mitsotakis' statements, said that "such statements only concern Mr. Evert and the internal opposition in ND."
Referring to Mr. Mitsotakis' wish to return to the prime ministerial seat, he said: "The Greek people should not fear such an eventuality."
The government yesterday attributed press reports about a supposed difference of opinion between President of the Republic Kostis Stephanopoulos and official Greek foreign policy on the issue of relations between Turkey and the European Union to a "misinterpretation".
Mr. Stephanopoulos said Saturday that Turkey's successful integration with the European Union and the achievement of the customs union would necessitate its compliance with international rules and abandoning its bellicose attitudes and that he would welcome such an eventuality.
Stressing that he was not competent to interpret the president's statements, government spokesman Evangelos Venizelos said that Mr. Stephanopoulos had remarked that he would be "pleased if Turkey satisfied the prerequisites for its accession to the EU".
Replying to other questions, Mr. Venizelos said that the president was a symbol of unity, the international representative of the country, "and expresses in the best way the foreign policy formulated by the government which is widely accepted by the broader political spectrum".
Greece suggested yesterday that the restrictions placed by the Spanish presidency on the participation of EU member-state officials in the informal summit in Mallorca were excessive. Government spokesman Evangelos Venizelos said that the restrictions placed by the Spanish presidency in effect meant that even foreign ministers would be excluded from the talks.
Greece's objections, he added, were political rather than organisational in nature. "When prime ministers are called on to make specific commitments on crucial issues, this must be the result of preparation and the people responsible for handling the corresponding issues should not be excluded from the relevant talks," Mr. Venizelos said.
The spokesman said that Greece's positions had been set out in the reply of Prime Minister Andreas Papandreou to a letter from his Spanish counterpart, Felipe Gonzalez, informing the EU heads of states and governments of the conditions under which the Spanish presidency wishes the informal summit to be held.
Solutions to the future of the "Plastika Kavalas" and "Rokas S.A." companies, both of which have been closed down, will be found in the next few weeks, Alternate Industry Minister Christos Rokofyllos said after consecutive meetings yesterday with staff unions of the two companies.
General Confederation of Workers of Greece (GSEE) President Christos Protopappas and deputies from Kavala and Larissa were also present at the meetings. Mr. Rokofyllos stressed the government's intention to intervene substantively and drastically despite great difficulties and legal problems created in both cases.
Referring to "Plastika Kavalas" in particular, Mr. Rokofyllos said it was a private enterprise having fulfilled all its contractual obligations which excluded intervention by the state. However, he promised the government would make every effort to have a new private investor found to purchase the enterprise and reopen it.
National Economy Minister Yiannos Papantoniou said yesterday that he foresaw a further fall in interest rates, after meeting with governors of commercial banks. Mr. Papantoniou cited the rapid drop in inflation, the central bank's recent activity and the drop in rates across Europe as three reasons making it likely that rates would fall further.
He said the target of 7 per cent inflation by the end of the current year was attainable. Steps taken by the central bank which reduced the interest rates on loans to banks and the drop in interest rates in Europe, beginning with the cuts announced by the German central bank, also assisted, he noted.
Replying to questions, Mr. Papantoniou said that when and how much interest rates would be reduced was a matter for bank administrations to decide. Concerning the level of interest rates borne by state securities, the Finance Ministry is forecasting a 14 per cent rate for yearly bonds by the end of November, and hoping for 13 per cent by the end of January 1996, depending on the course of the inflation.
Government spokesman Evangelos Venizelos yesterday reiterated that the government's proposal that the Elefsina shipyards be liquidated while remaining in operation aimed at saving workers' jobs.
Industry Minister Costas Simitis' recommendation for the shipyards is due to be discussed by economic ministers today at the office of Under-secretary to the Prime Minister's Office, Antonis Livanis.
In a statement yesterday, the union of workers at the Skaramangas shipyards, whose future is also under discussion, warned that it is not prepared to accept the solution of liquidation in operation, which they consider that the finance minister favors. They also reject the prospect of a rumored 1,000 lay-offs, which, they estimate, will cost 11 billion drachmas.
The statement also reiterated the resolve of the workers to work hard for the salvation of the shipyard in its present form, and under government control, but also to fight hard if their proposals for recovery are not accepted.
It is clear, the statement concluded, that today's ministerial meeting is crucial for the future of the shipbuilding industry, and the climate of truce which the government has achieved in its relations with the unions.