Greece and the Former Yugoslav Republic of Macedonia (FYROM) yesterday signed an agreement aimed at normalizing bilateral relations.
The foreign ministers of the two countries, Karolos Papoulias and Stevo Crvenkovski, signed the agreement at the United Nations in the presence of Secretary-General Boutros Boutros-Ghali, UN special envoy Cyrus Vance and US presidential envoy Matthew Nimetz, after a day's delay and a flurry of last-minute talks.
In a statement released to the press, Mr. Vance said he welcomed the signing of the interim accord which "establishes a new relationship between them [Greece and FYROM] which will be based on concepts of international law and peaceful, friendly relations".
"The Accord provides that each party will respect the sovereignty, territorial integrity and political independence of the other and confirms their common existing frontier as an enduring and inviolable international border," the statement read.
"The Accord further provides for recognition by the Hellenic Republic of the former Yugoslav Republic of Macedonia as an independent and sovereign state, and that the two countries will establish liaison offices in each other's capital.
"The Accord also provides that the former Yugoslav Republic of Macedonia will cease to use in any manner the symbol [the ancient Hellenic Vergina Star] that is now on its national flag. It also provides specific and binding assurances that the constitution of the former Yugoslav Republic of Macedonia is consistent with the principles of international law and good neighborly relations mentioned earlier.
"The Accord provides for unimpeded movement of people and goods between the two countries. In this connection I can confirm that the Accord, by its terms, provides for terminating the measures that had been imposed by the Hellenic Republic on 16 February 1994, and provides for replacing these measures by an open and cooperative economic relationship.
"The necessary steps required to fully implement the Accord will commence upon signature and will take place over the next few weeks, with the effective date of its operative provisions 30 days from today.
"The Accord provides that the Parties will continue negotiations under the auspices of the Secretary-General of the United Nations with respect to the outstanding difference between them [the name] referred to in relevant Security Council resolutions.
"Finally, the Accord contains other important provisions relating to areas of co-operation between the parties, a commitment to settle disputes exclusively by peaceful means and the timing and terms of implementation.
"As the Special Envoy of the Secretary-General of the United Nations, under whose auspices this lengthy mediation effort has been conducted, I congratulate the parties on the important step they have taken to achieve a new relationship which will promote peace and security between them and in their entire region."
Mr. Boutros-Ghali hailed the accord in a congratulatory statement.
Speaking to reporters after the signing, Mr. Vance said negotiations on the "outstanding difference", the issue of the name of FYROM, would begin towards the end of October or the first 10 days of November.
Mr. Papoulias told reporters he was satisfied with the accord. "The Greek government has achieved its goals and its foreign policy has rid itself of 'a thorn'," he said. The lifting of trade sanctions on Skopje, he said, "will be implemented 30 days after the signing of the agreement, along with the other issues in the interim accord".
Referring to the issue of the name, he said the position of the Greek government remained "steadfast" and "tough negotiations" would begin, again 30 days after the implementation of the accord. He underlined the "significant role" played by the US factor, as well as the UN and the European Union.
The signing of the interim accord appeared to run into difficulties early yesterday morning Greek time, due to disagreements concerning the timing of the application of its particular provisions. Mr. Vance and Mr. Nimetz, and US Assistant Secretary of State Richard Holbrooke, engaged in last-minute diplomatic activity between the two delegations, trying to overcome the hitch created by FYROM Foreign Minister Stevo Crvenkovski's insistence that Greek trade retorsion measures be lifted before the signing.
Diplomatic circles stressed that the text of the agreement prepared by Mr. Vance clearly envisaged the simultaneous application of its provisions by both sides, namely that Greek retorsion measures be lifted upon the removal of ancient Macedonian symbols from FYROM's flag, a month after the signing of the agreement.
According to sources, Mr. Holbrooke was vexed with the FYROM delegation for spreading the claim on Tuesday that the latest hitch was due to the fact that he had hastened to announce that all pending differences between the two countries had been resolved.
The same sources referred to FYROM diplomats as claiming that during Mr. Holbrooke's recent visit to Skopje, President Kiro Gligorov told the US diplomat that the agreement would be signed if Greek retorsion measures were lifted shortly before the signing.
Other sources said that FYROM would accept, as a last concession, the lifting of retorsion measures immediately after the signing.
Skopje state television reported late last night that, according to a statement by President Kiro Gligorov's office, the United States and FYROM had initiated formal diplomatic relations at ambassadorial level.
The statement contained excerpts from US President Bill Clinton's letter to Mr. Gligorov, referring to the initiation of diplomatic relations between Washington and Skopje, and meticulously avoiding the use of the terms 'Republic of Macedonia' or FYROM.
Earlier, at 21:00 Greek time, Skopje radio and television stations reported that the FYROM government had authorized, in an extraordinary session, Foreign Minister Stevo Crvenkovski to sign the text of the agreement with Greece.
The European Commission has granted Greece a one-week extension to the deadline for the privatization of the Skaramangas shipyards, it was announced yesterday.
The future of the biggest shipbuilding and ship repair yard in the Mediterranean is expected to be determined on Monday, in Brussels, in what an EU commissioner branded as Greece's "last chance" to settle the shipyards privatization issue.
Greece's final solution to the issue will be presented by National Economy Minister Yiannos Papantoniou during a meeting with European competition commissioner Karel van Miert.
Greece's proposed solution should fall in line with Community legislation and should be submitted together with two letters of guarantee.
In the event that a solution has not been found by Monday, or the solution is not in line with EU law, the Commission will automatically implement a July 26 decision that the shipyards must return 44 billion drachmas of state subsidies and interest of approximately 38 billion drachmas. The total amount would have to be paid within two months.
If Greece does not comply with the measures, the Commission will refer the country to the European Court.
Mr. van Miert told a news conference in Brussels yesterday the Commission would no longer tolerate Greece's foot-dragging on the sell-or-close option for Skaramangas. "The continued postponement of deadlines issued by the Commission to Greece constitutes an exception to conditions applied to other member states," Mr. van Miert said.
He said Athens had assured the Commission since March 1993 that it would privatize Skaramangas but solutions presented appeared to "vanish". "We will no longer play this game," he said.
He said he would meet with Mr. Papantoniou in Brussels on Monday to demand a final decision on Skaramangas or initiate procedures in the European Court.
On Tuesday, Mr. van Miert turned down Greece's appeal for a week's extension to the deadline, which expired on the same day, saying that the Commission would not accept any postponement of the deadline for the privatization of the shipyards.
"The Greek government has exhausted all margins of elasticity on the part of the European Commission and now has to face its responsibilities," the commissioner told the ANA correspondent in Brussels, adding that he would recommend Greece's referral to the European Court during yesterday's session of the European Commission.
At yesterday's session, Leon Brittan, commissioner for foreign trade, and Martin Bangemann, commissioner for industrial affairs, questioned Greece's credibility on the issue and asked for the immediate implementation of the July 26 decision.
The two commissioners have been quoted by well-placed sources as warning the Commission of the dangers of being accused of the "selective application" of competition regulations.
In contrast, Commission President Jacques Santer was positive towards Greece's request for an extension.
Greek European Commissioner Christos Papoutsis told the ANA in Brussels that he was hoping the Greek government would be able to submit a specific solution by Monday, one that will be in line with Community legislation.
"If there is no decision, the July 26 decision will be implemented and all relative consequences will follow," he said.
Mr. Papoutsis said the Greek Industry Ministry had done its best to find a solution to the issue and added that nobody can be certain of the huge problems and the crisis facing the ship-repairing industry.
Mr. Papantoniou chaired a meeting at noon yesterday on the future of the shipyards, attended by Alternate Industry Minister Christos Rokofyllos, Finance Under-secretary Nikos Kyriazidis and the governors of the National Bank, the Commercial Bank and the Hellenic Industrial Development Bank (ETBA). It was the second such meeting in as many days.
The governors were invited in order to convey any expressions of interest in the purchase of the yards, but informed sources said that the proposals which have been submitted were deemed to be unrealistic.
Today, two meetings will be held by Under-secretary to the Prime Minister's Office Antonis Livanis and Mr. Papantoniou to consider the issue.
The meeting will include Finance Minister Alecos Papadopoulos, Mr. Rokofyllos and Mr. Kyriazidis and bankers. According to reports, National Defense Minister Gerassimos Arsenis will also attend the meeting.
Changes in the government will be announced either today or tomorrow, government spokesman Evangelos Venizelos said yesterday.
Mr. Venizelos denied press reports claiming that the government intended to change the electoral law. Sources say that ruling party PASOK Secretary Akis Tsohatzopoulos will be included in the reshuffle, with Interior Minister Costas Skandalides taking his place in the party.
The name of former EU commissioner Vasso Papandreou has been touted as a possible candidate for the agriculture ministry although Ms Papandreou herself has said that she has not been approached.
Other reports claimed Press Under-secretary Telemahos Hytiris would take over as minister and current Press Minister Evangelos Venizelos would move to another ministerial post.
Reports said there would be no changes to the foreign, national defense, national economy, finance, culture, tourism and Macedonia-Thrace ministers.
Meanwhile, the Council of State yesterday announced the merger of the Ministry to the Prime Minister's Office and the Ministry of the Interior.
Under a draft presidential decree submitted to the Council, the responsibilities of the merged ministries will be undertaken by a new ministry, to be known as the Ministry of Public Administration and Decentralization.
With another presidential decree, the General Secretariat of Social Security is transferred from the Health Ministry to the Labor Ministry, which will be renamed Ministry of Labor and Social Security.
The first draft presidential decree for the merger of the two ministries is signed by Prime Minister Andreas Papandreou, while the second decree for the transfer of the Social Security general secretariat is signed by the prime minister and the minister s to the prime minister's office, finance, labor and health.
Speaking to the press yesterday, Coalition of the Left and Progress president Nikos Constantopoulos said "(Prime Minister) Andreas Papandreou is searching for ministers (while) the people are seeking for policies."
"The question is how do we get out of the vicious circle (triggered by) the merciless internal war which has broke out in PASOK," he said.
Asked to comment on the eventuality of early elections, Mr. Constantopoulos said his party will participate in elections independently, saying however that the real issue related to the framework of elections.
Main opposition New Democracy party leader Miltiades Evert arrived in Thessaloniki yesterday on a five-day visit that will take in the 60th Thessaloniki International Fair (TIF) and talks with local party officials and social partner representatives.
Mr. Evert said he wanted to believe that the TIF would continue to upgrade the role of both Thessaloniki and Macedonia.
Referring to the upcoming government reshuffle, Mr. Evert said it was ascertained for the first time that ministries were unwanted.
Mr. Evert will present his party's positions at noon today at a special meeting on the development of Macedonia and Thrace and in the evening he will speak at a dinner given in honor of social partners.
He will set out his party's proposals on small and medium-size enterprises at another meeting at noon tomorrow. On Sunday morning he will visit the TIF and give a press conference afterwards, while late in the afternoon he will give a reception in honor of party cadres in northern Greece.
Parliament ratified an amendment introduced by Interior Minister Costas Skandalides last night, increasing state subsidization for parties from 0.001 per cent to 0.013 per cent of the state budget.
The increase, reached with inter-party consensus, means in practice that subsidization will increase by 2.2 billion drachmas which will be provided for parties as of January 1, 1996.
The total amount of subsidization to be given to parties will total about nine billion drachmas. Subsidization is granted in accordance with the percentage polled by parties in national elections and are represented in Parliament or the European Parliament.
Parties entitled to subsidization on this condition are PASOK, New Democracy, Political Spring, the Communist Party of Greece (KKE) and the Coalition of the Left and Progress.
Four illegal Pakistani immigrants were killed and two injured yesterday when they entered a minefield while trying to avoid a military patrol. The incident took place in the area of Kastanea, Evros near the border with Turkey.
Rescuers said that the two injured would also have died if they had not frozen on the spot after the first explosions, since another mine was just half a meter away.
The two injured have been taken to Didymoticho hospital where doctors said they were out of danger while the bodies of the four dead will be handed over to the Pakistani Embassy and flown to Pakistan.
The two injured Pakistanis told police that they mistook the barbed wire surrounding the minefield for the Greek-Turkish border.
The Corfu Coast Guard yesterday opened fire on an Albanian speedboat carrying illegal immigrants after it repeatedly tried to ram the coast guard vessel and refused to obey orders to stop.
The coast guard vessel was waiting in ambush in the Pontikonissi region after a tip-off, and started chasing the Albanian speedboat at dawn.
According to harbor officials, the skipper of the Albanian boat, accelerated and tried to ram the coast guard vessel at least four times when it was spotted. The Albanian boat opened fire, hitting the speedboat's outboard engine.
Police arrested six illegal immigrants and three other Albanians known to the local authorities for a series of thefts of speedboats and outboard engines over the past three months.
The Corfu Harbor Authorities have so far confiscated eight stolen speedboats, and referred 10 Albanians to court, breaking up three Albanian gangs.
The good bilateral defense relations between Greece and Albania were mentioned during yesterday's meeting between US Defense Secretary William Perry and visiting Albanian President Sali Berisha.
The hour-long meeting, sources said, underlined the high degree of co-operation between Athens and Tirana in the military sector, noting in particular the participation of Albanian troops in a multinational exercise in the Peloponnese earlier this year.
According to the sources, Mr. Berisha expressed his "complete satisfaction with the continually improving bilateral relations".
The US side stressed the necessity for a further strengthening of military ties.
Meanwhile, US Secretary of State Warren Christopher has discussed the issue of the status of the ethnic Greek minority in Albania with Mr. Berisha, a State Department official told the ANA. "Mr. Christopher stressed to President Berisha the significance of maintaining constructive relations with Greece and the (need for) sensitivity regarding the needs of the ethnic Greek population of Albania," he said.
Boston University abruptly canceled plans yesterday to award an honorary degree to Albanian President Sali Berisha, citing Albania's failure to provide proper education to its Greek minority, the university president said.
"Boston University will resolve this doubt (over the education issue) before conferring an honorary degree," John Silber told Reuters just hours before Mr. Berisha was to receive the degree and deliver a speech.
Mr. Silber said the Albanian Greek minority issue was brought to his attention by Nicholas Gage, a best-selling author who is of Greek descent.
Mr. Berisha is on a tour of the United States aimed at improving relations between the two countries, which resumed diplomatic ties in 1991 after a 52-year hiatus.
In comments to the Boston Herald newspaper published yesterday, Mr. Silber said the university should have investigated Mr. Berisha's background before offering the degree.
Mr. Silber said in a September 12 letter to Mr. Berisha he would visit Albania with human rights activist Eli Weisel to ascertain the seriousness of the Greek minority question before deciding whether Mr. Berisha will get a future honorary degree.
Political Spring party leader Antonis Samaras yesterday said the government's economic policy had been a failure.
"(Prime Minister Andreas Papandreou) has learned nothing from the failures of its economic policy," Mr. Samaras told a press conference in Thessaloniki.
"He continues the unjust policy of unilateral austerity measures, the hard drachma and the efforts to simply balance the books which kills every effort for recovery," Mr. Samaras said.
He reiterated his party positions on pay increases to pensioners, low salaried-workers and farmers and presented the party's positions on social security funds.
Turning to PASOK internal problems, Mr. Samaras said the confrontation among the successors in PASOK was now being transformed into conflict with the prime minister.
Mr. Samaras also lashed out against the main opposition New Democracy party saying that "Greece is in the tragic position of lacking both government and credible main opposition."
Mr. Samaras said they both shared "the same anti-development and insensitive" economic policy.
Referring to the Skopje issue, Mr. Samaras accused the government of accepting the solution of the composite name for Skopje which the former New Democracy government had been promoting, ignoring the decision agreed to at a previous Political Leader's Council. He further accused ND leader Miltiades Evert of changing the party's position on Skopje 16 times.
"Our position on the Skopje issue is far from the government's policy and we certainly don't agree with the presence of (Foreign Minister Karolos) Papoulias in New York," Mr. Samaras said.
"If we lift the embargo and recognize Skopje, what means will we have left by which to pressure them on the name issue?" he said, adding that the use of the name 'Macedonia' by the Skopjans will constitute a factor of instability in the region.
Asked to comment on the possibility of early elections, Mr. Samaras said the party was all prepared for elections.
On the shipyards issue, Mr. Samaras said the only possible solution to the issue would be its partial privatization and the granting of 49 per cent of the shares to the shipyards' employees.
Tourism Minister Nikos Sifounakis has addressed a letter to the mass-circulation tourist magazine "Travel Trade Gazette Europa" yesterday, categorically denying a "distortive" report published on September 7 which claimed that a new "self-destructive" tax would be initiated for tourism. Mr. Sifounakis said that in no way was the financing of an advertising campaign through new taxation proposed and that the possibility of finding a permanent fund from existing resources for the country's international pro motion was merely discussed during a special interministerial meeting.
The letter also denies the content of another report in the same magazine alleging that the Greek National Tourist Organization (EOT) was withdrawing its funding of the Filoxenia hotel trade exhibition and stressed that, on the contrary, EOT Secretary-General Apostolos Kossonas has said that this year's Filoxenia would receive more financial backing than previously. Mention is made in the letter of "unknown circles with known targets" that disseminate "news" such as the above.
Mr. Sifounakis said that "as a first step towards shaping closer and more productive ties with companies promoting Greek tourism in Europe" he has invited leading tour operators in Europe to visit Athens for consultations. The meeting is expected to take place at the end of September.
Greece's merchant fleet has grown steadily during the last two years and is now ranked third in the world, accounting for 6.5 per cent of world tonnage, and first in the European Union with half of all vessels under EU flags, Merchant Marine Minister George Katsifaras said yesterday.
Mr. Katsifaras said that the growth of the merchant fleet reflected the confidence of Greek shipowners in the Greek flag.
The number of vessels under the Greek flag, he said, had risen by 70 over the last three years to reach 2,165 (over 100 GRT), while total capacity now stood at 31,717,636 GRT, marking an increase of 21.7 per cent during the period in question.
Mr. Katsifaras said that inflows of shipping exchange in the first five months of the year had risen by 25.8 per cent compared to the same period last year.
In May this year, shipping inflows increased by 45.5 per cent compared with the same month of 1994 (198 million dollars against 132.6 million dollars).
Greek-owned merchant vessels now numbered 3,142 and represented a total capacity of 126,138,352 DWT, Mr. Katsifaras said, currently accounting for 16.2 per cent of world capacity.
The Panhellenic Federation of Exporters (PSE) yesterday announced that the National Economy Ministry has issued a leaflet detailing instructions on completing a new application form for the approval of an export permit.
The application, which is available at trade and industry chambers, will be used for the submission and granting of an export permit, in all the events where a permit is needed by the ministry.
The form was implemented on September 1 and will be compulsory as of September 18.
The VAT-inclusive price of fuel and diesel will increase by 0.90 and 1.20 drachmas per liter respectively.
Federation of Greek Industries (SEB) President Jason Stratos yesterday branded as "encouraging" last week's statements by Prime Minister Andreas Papandreou that he did not plan changes in the basic directions of the government's economic policy.
Mr. Stratos added that Mr. Papandreou's statements reaffirmed the government's political will to continue its stabilization policies and implement the convergence programme.
Mr. Stratos said he agreed with the prime minister's positions on the basic directions of the economy, but emphasized that greater efforts for a fiscal adjustment without tax increases were needed, and this would "bear visible and positive results, only if addressed towards the main cause of deficits, namely the size of the state".
The government's resolve to continue fighting inflation was another positive element, he said, noting that the combination of fiscal, monetary and exchange policy being applied should be more oriented towards growth.
He also welcomed the prime minister's assurance that any negative effects on employment would be dealt with through "a strong mesh of social support measures", and not through a retardation of the process of industrial restructuring.
Referring to the Skaramangas shipyard issue, he said privatizations were of priority and ought to be speeded up.
Questioned on the possible effects of Trade and Industry Minister Costas Simitis' resignation Monday, Mr. Stratos said the government's policy line was of greater importance on the economy than the pre-sence of individual ministers.
Finally, he referred to the need for greater deregulation of the labor market that would permit more lay-offs.