US presidential adviser George Stephanopoulos said yesterday that the US government was insistent on the view that Greece and Turkey could settle their differences through dialogue.
Mr. Stephanopoulos, who last night met with the premier, said he believed that Athens and Ankara could have a "whole range of contacts" on military issues, NATO matters and the Cyprus problem, expressing optimism that there would be "further contact" between the two countries.
"Turkey would welcome a dialogue on these issues," Mr. Stephanopoulos told a press conference organized by the Athens dailies Ethnos and Imerisia. He acknowledged that Greece's lifting of a long-standing veto blocking a customs union between Ankara and the European Union was an important goodwill gesture.
Mr. Stephanopoulos arrived in Athens Monday on the third and final leg of a fact-finding tour of the region which also took him to Ankara and Nicosia.
In a speech Monday night, Mr. Stephanopoulos reiterated the US considered direct dialogue between Athens and Ankara as the most appropriate procedure for the resolution of Greek-Turkish differences.
At yesterday's press conference, he was critical of Greek MPs who visited a Kurdish Workers' Party (PKK) camp in Syria in June, and called on the Greek government not to have any dealings with "terrorists". Replying to a Kurdish journalist's question, however, he said the American government insisted on the safeguarding of all minority rights.
On the Cyprus problem, he said that "we can't dictate a solution and it wouldn't work if we did". "What we can do," he continued, "is to use our good offices and relations throughout the region and whatever leverage we have...".
Mr. Stephanopoulos confirmed that he would be reporting back to President Bill Clinton on the results of his talks in the region.
Replying to a question on Cyprus' accession to the European Union, Mr. Stephanopoulos said that the "clear preference" of the US would be for such accession "to come in the wake of a political solution" to the Cyprus problem.
Mr. Stephanopoulos also expressed optimism over the outcome of efforts to resolve the dispute between Greece and the Former Yugoslav Republic of Macedonia (FYROM). "We believe we are making a great deal of progress on the underlying issues," Mr. Stephanopoulos said.
Despite "great pressure" from both within and outside the US, he added, Washington would not establish full diplomatic relations with FYROM until differences between Athens and Skopje had been resolved.
Mr. Stephanopoulos said that the lifting of the Greek embargo against Skopje was in Athens' interests also and could have a "ripple effect" which might help reduce possible tension in the southern Balkans.
Commenting on ongoing efforts for a peaceful solution to the Bosnian crisis, Mr. Stephanopoulos said the US peace plan was "the last best chance we have to put an end to the fighting".
"We don't want to lose this chance," he said, and stressed the need "to get the conflict off the battlefield and on to the negotiating table." Mr. Stephanopoulos said that the US would continue to press all sides in former Yugoslavia "to reach an agreement now".
Asked for the US reaction to Monday's bloody artillery attack on Sarajevo, Mr. Stephanopoulos replied that it was the same reaction to all violence, "that it must stop". There were only two paths, he said, war or peace. "And the US is working right now trying to put forward a peaceful diplomatic solution... which is the only solution for all the peoples in area," he stressed.
Replying to questions on President Clinton's veto of a recent vote by the US Congress to lift the embargo on arms to Bosnia, Mr. Stephanopoulos said that if Washington unilaterally lifted the embargo it would lose its credibility with other nations. "We continue to hope that we can sustain that veto in the US Congress," he added.
Mr. Stephanopoulos thanked Greece for its support for the US initiative for a peaceful settlement in Bosnia and underlined the importance of Greece's role in efforts towards peace.
Earlier in the day, Mr. Stephanopoulos met with National Defense Minister Gerassimos Arsenis for talks that focused on the Cyprus issue, Greek-Turkish relations and developments in the Balkans. Mr. Arsenis said after the one-hour talks that Mr. Stephanopoulos outlined his views and the initiatives taken by President Clinton.
President Clinton's senior aide also had talks earlier with Foreign Minister Karolos Papoulias, main opposition New Democracy party leader Miltiades Evert and Archbishop Iakovos of North and South America.
The US official was scheduled to have talks later yesterday with Education Minister George Papandreou before attending an informal dinner to be given in his honor by Prime Minister Andreas Papandreou at the premier's residence.
In response to press questions, government spokesman Evangelos Venizelos said that since Mr. Stephanopoulos was of Greek descent, had close relations with the Greeks-American community, was an American citizen and a senior adviser to President Clinton, his statements should be interpreted in this context.
An inter-ministerial committee yesterday gave the go-ahead to look into selling the Skaramangas Shipyards - the largest yards in the Mediterranean - to an international consortium for eight billion drachmas.
The group, represented by Nafsi S.A. owned by Kalogeridis Bros. which will hold 51 per cent and control management, is comprised of Jurong Shipyards Ltd. (Singapore), Kvaerner Kimek A.S. (Norway), I.H.I.S.A. (Japan), Tanger Pacific Management (Singapore) and Ofer Brothers Ltd (Israel).
The offer of eight billion drachmas, to be paid with interest in eight years and fully covered by letters of guarantee from banks, anticipates compulsory investments totaling 10 billion drachmas (five billion in the first two years of operation), a capital inflow of 50 million dollars and guarantees for 2,200 jobs, Alternate Industry Minister Christos Rokofyllos said. This means possible dismissal, or voluntary departure, for 825 of the 3,025 people currently employed at the shipyards, he added.
Industry Minister Costas Simitis said the details of the Nafsi offer that tilted the balance in its favor involved the securing of co-operation and links with international shipbuilding and repairs firms as well as shipping companies, guarantees for the operation of the yards now and in the future and guarantees and commitments securing the observations of contractual obligations. International firms will provide similar guarantees.
Mr. Simitis stressed that the decision was to examine details of the proposal and if there was ultimately an agreement, only then would the government have the agreement signed and ratified with a law in Parliament. Mr. Simitis thanked the employees' union for co-operation offered to date and its proposal for the shipyards' salvation which he called "extremely responsible."
The government committee - enlarged on the orders of the prime minister - authorized Mr. Rokofyllos and Finance Under-secretary Nikos Kyriazidis to further negotiate with the group for the co-operation with the National Defense Ministry on safeguarding the programme for building naval frigates and for the planning of social security measures for employees to be dismissed, in co-operation with the Labor Ministry and the Organization for the Employment of Human Resources.
The committee was comprised of National Economy Minister Yiannos Papantoniou, Finance Minister Alekos Papadopoulos, National Defense Minister Gerassimos Arsenis, Labor Minister Yiannis Skoularikis, Merchant Marine Minister George Katsifaras, Commerce and Industry Minister Costas Simitis, Alternate Industry Minister Christos Rokofyllos, Finance Under-secretary Nikos Kyriazidis and Antonis Livanis, Under-secretary to the Prime Minister.
Mr. Rokofyllos said the development "confirmed the confidence of the international business community in the stability and auspicious future of the Greek economy, even in the very difficult shipbuilding and repairs sector, despite talk of disaster and pessimism in general." Mr. Rokofyllos further said the offer was submitted to the Industry Ministry at the last moment, last Friday afternoon.
Mr. Rokofyllos has called a meeting at the Industry Ministry this afternoon for representatives of the General Confederation of Workers of Greece (GSEE) and the Skaramangas Shipyards' employees' union to give them an analytical briefing on the content of the offer and prospects in sight.
Opposition parties reacted strongly yesterday to the government's intention to sell the Skaramangas Shipyards. Main opposition New Democracy party spokesman Vassilis Manginas said the price was far smaller than the sale price of the Elefsina Shipyards, and that the Skaramangas Shipyards had almost double the capacity of the Elefsina yards.
He said no responsible mention was made in the announcement of what the fate of the employees would be, and primarily those to be dismissed and who would ultimately shoulder the cost of dismissals.
Mr. Manginas called on the government to make the offer public immediately. He said the way with which the announcement was made public by Mr. Simitis proved the "incompetence and dissolution of the dangerous government".
Political Spring party representative Notis Martakis said the government's announcements on the future of the Skaramangas Shipyards were governed by inconsistency, un-transparency and a lack of social sensitivity.
"Inconsistency because the government is going ahead with a direct award (of the project), while until now it was setting September 6 as the final date for international tendering to be proclaimed. "Un-transparency because this solution was presented today without anyone knowing details of the new offer and for whose award relevant ministers had even committed themselves.
"Lastly, a lack of social sensitivity because those who once claimed they were struggling for underprivileged Greeks do not appear to be bothered today even by the new armies of unemployed being created by their counter-developmental policy," Mr. Martakis said.
An announcement by the Communist Party of Greece (KKE) said announcements by Industry Minister Costas Simitis and Alternate Industry Minister Christos Rokofyllos on the Skaramangas Shipyards showed the government had only one intention: to lead the ship yards and the sector of the shipbuilding and repairs industry in Greece to the gallows.
The KKE said the development meant absolute compliance and consensus with the mandates of the European Union and big monopolizing interests which aimed at supporting their expansionist policy in the Mediterranean region with the sellout of the country's shipyards.
Coalition of the Left and Progress leader Nikos Constantopoulos recalled ruling party PASOK's pre-electoral commitments. "As was the case with other problems as well, PASOK was saying one thing up to the last moment and is now doing another. This is PASOK. This is its policy," he said.
GSEE President Christos Protopappas told the press that he had been taken "by surprise" at the government's stance on the shipyards. "The GSEE will study the proposal and will then state its positions," he said. "In either case, we will stand by the workers of the Skaramangas Shipyards and support their decisions," he said.
Greece yesterday strongly condemned the artillery attack on Sarajevo that killed at least 37 people on Monday and expressed the hope that such "cowardly" actions would not obstruct efforts for a peaceful solution to the Bosnian crisis.
"The government condemns with abhorrence the criminal action that cost the lives of a large number of civilians," government spokesman Evangelos Venizelos said. Mr. Venizelos expressed the hope that similar "cowardly and suspicious acts will not hinder efforts for a peaceful settlement of the Bosnian crisis."
Representatives of local government and residents of the Mesogia area yesterday blocked the Lavriou and Marathonos avenues with garbage trucks and private cars to protest the construction of the Spata airport in the region. The protesters warned that they would be blocking the avenues for no less than three days, the duration of a parliamentary debate to ratify the international Spata airport agreement.
Police forces remained in the area, while earlier in the day prosecutor Georgia Adilini failed to convince the protesters to clear the avenues, declaring the occupation of the roads as illegal.
The protest was organized by the municipalities of Spata, Markopoulo and Paiania with the support of local residents, while main opposition New Democracy and Communist Party of Greece deputies rushed to the area to support those in the protest.
Spata Mayor Lucas Lingos requested that the parliamentary debate be transferred to the plenary of the parliament instead of being held at the Parliament's third summer session.
Local government officials and residents protest the construction of the airport in Spata for environmental reasons, claiming that the decision for the construction has not been based on a serious feasibility study. The protest took place in light of the debate yesterday in Parliament to ratify the Spata airport contract.
Political Spring parliamentary spokesman Andreas Lentakis said the construction of the Spata airport constituted a necessity but criticized the "non-transparent" handling of the agreement. Mr. Lentakis said Political Spring MPs would vote down the agreement, unless the government gave specific answers on its handling during the debate.
PASOK's Executive Bureau, meeting yesterday under the chairmanship of Central Committee Secretary Akis Tsohatzopoulos, discussed the party's action plan until the end of the year. Sources said the plan mainly includes initiatives for the promotion of dialogue between the party leadership and social organizations and public bodies.
After yesterday's meeting with the General Confederation of Workers of Greece, meetings are planned with the Greek Industries Federation tomorrow, agricultural cooperatives, and the Civil Servants' Supreme Administrative Council.
Visits are planned to provincial urban centers and areas seriously affected by unemployment after the end of the Thessaloniki International Trade Fair next month.
Internal party reactions to the hint made during the weekend by former New Democracy prime minister Constantine Mitsotakis that he would like to regain his party's leadership and the country's premiership, continued yesterday, but with more subdued tones.
Asked to comment, former ND foreign minister Michalis Papaconstantinou said, "in politics you never say never". Others, including ND Vice-President Ioannis Varvitsiotis, and the former premier's daughter Dora Bakoyanni, refused to comment, or downplayed the significance of the statement, but sources close to party headquarters considered that his move had a negative effect. Other sources said that Mr. Mitsotakis does not wish to pursue the matter further.
Three people were killed and at least 13 others injured when a powerful explosion rocked a state-owned arms factory west of Athens, police said yesterday.
They said the blast occurred at the national Gunpowder and Cartridge factory, PYRKAL, at Elefsina, near Piraeus. An engineer and two female employees were blown to pieces by the explosion, authorities said. They said dozens of other employees were rushed to a local hospital. Three of them were reportedly in critical condition.
Plant worker Aphrodite Tsakmalopoulou said the explosion occurred at a unit priming mortars. "Someone shouted to the mechanic to do something because the machine was about to explode. The mechanic came, tried to re-operate the press... and then the explosion was heard," she said.
National Defense Minister Gerassimos Arsenis expressed the government's regret to the families of the victims after visiting the factory. He said a special committee had been set up to investigate the causes of the deadly blast. "The accident took place at a production unit that has been tested and operating for several years. We do not know the causes of the accident," Mr. Arsenis said.
Unconfirmed reports said the explosion was sparked by a short-circuit. At least 30 people were working in the section at the time of the blast.
Finance Minister Alekos Papadopoulos yesterday released the draft bill concerning the establishment of a number of new bodies designed to fight tax evasion and financial crime.
The bill envisages the setting up of a Financial Inspectorate and a team of financial inspectors to carry out financial controls in public enterprises (except state-owned banks), local government organizations and non-profit making concerns (foundations, social, cultural, and sports clubs), and other bodies receiving grants from the government, the European Union and other international organizations. Financial inspectors will have access to all information and data that is not subject to rules of confidentiality, but will themselves have to maintain confidentiality and act on written orders from a public prosecutor.
They will be obliged to submit regular statements as to the origins of their wealth. Those refusing to co-operate, providing false data, or obstructing financial inspectors in the exercise of their duties will be liable to penal proceedings and fines of up to 500,000 drachmas.
The bill also provides for the establishment of a national and regional Tax Control Centers, empowered to carry out regular and preventive tax controls. According to its provisions, local tax offices will have competence to control concerns with a turnover of up to 350 million drachmas, Regional Centers those with turnover up to two billion drachmas, and the National Centre those with turnover exceeding two billion.
A Financial Crime Squad is also to be set up, to fight tax evasion and smuggling in general. Its competencies will include the protection of the currency, the coastline and public lands from encroachments, countering the illegal trade in drugs, firearms , explosives, and antiquities, and preventing money laundering.
They will wear special uniforms and be empowered to carry out firearms. Finally, a treasury service is to be set up, assigned with the task of planning the financial needs of government departments, and managing state reserves and the public debt.
The owners of Greece's 5,200 tourist coaches yesterday threatened to blockade airports, ports and roads and bring widespread disruption to transport, tourism and the Thessaloniki International Fair if their demands are not met.
Representatives of the Panhellenic Federation of Tourist Coaches and the Federation of Tourist Enterprises told a press conference that if their demands were not met, they would call a nationwide strike for September 8, the day Prime Minister Andreas Papandreou is scheduled to address the annual Thessaloniki International Fair. They said that their action would include the blockading of airports, ports and roads.
The coach owners accused the Transport Ministry of failing to initial an amendment to Law 711/1977 "on special tourist coaches", in accordance with a draft bill drawn up by the Greek National Tourist Organization which clearly distinguishes the professional activity of tourist coaches from that of the approximately 3,400 inter-city coaches and school buses.
The owners claim that the inter-city and school buses are taking work from them, particularly in the provinces, with the tacit approval of the Transport Ministry.