A.N.A. Bulletin, 23/03/96

From: "Greek Press & Information Office, Ottawa Canada" <[email protected]>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 845), March 23, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: [email protected]

CONTENTS

[1] Simitis stresses need to forge ahead with economic policies, any divergence will threaten 'delicate economic balance'

Prime Minister Costas Simitis yesterday appeared determined not to give in to increasing calls for a relaxation of the government's austere economic policy and said the Greek people would vindicate the ruling party by giving it a new four-year mandate at the next general elections.

Speaking during a parliamentary debate on the economy, Mr. Simitis accused the main opposition New Democracy party and other opposition parties of being "patriots in word only" and "two-faced," saying they were only too ready to adopt social demands which posed a threat to the balance of the economy.

"The government will do everything in its power to maintain the existing delicate balances in the economy", he said, adding that the government would speak "the language of truth" regardless of the political cost.

"The Greek people know that we must not give in to demagogic demands," Mr. Simitis said.

On the demands currently being put forward by farmers, Mr. Simitis said that the government was safeguarding farmers' incomes, which had risen by 5.2 per cent in the last two years, compared with an increase of 0.7 per cent in the 1990-93 period.

Mr. Simitis reminded farmers that the government was unable to act as it pleased, since its actions were necessarily part of the broader Common Agricultural Policy of the European Union.

He promised tough bargaining by the government at the forthcoming inter-governmental conference (IGC) in Turin but stressed that it must be understood that emphasis from now on should be placed on structural change in order for Greece to offer internationally competitive products of a qualitatively higher standard.

He listed Greece's biggest economic problems as the sizable budget deficit, the high public debt, the "stubborn" inflation rate and, above all, unemployment.

He forecast improvements on all these fronts by the end of the current year, provided "the current course is not diverted".

The premier warned that if Greece did not have a strong economy, there would be negative repercussions not only on the international competitiveness of Greek undertakings and products but also on national issues, particularly the country's position in t he Balkans and its relations with Turkey.

On economic and monetary union (EMU), Mr. Simitis expressed the view that Greece would not participate from the outset in the "hard core" of the single currency, adding that what was important was to be "close to the front-runners."

Outlining the main targets of the government's economic policy, Mr. Simitis placed emphasis on accelerating economic development, completing the rehabilitation of public finances, cutting back on public spending, bringing down inflation and unemployment , and upgrading education and the country's international position.

Mr. Simitis forecast that public investments would increase by an average of 11 per cent annually in the period 1995-99, while the corresponding figure for private investments would be 6 per cent.

Main opposition New Democracy (ND) party leader Miltiades Evert accused the government of "incompetence", saying it was a mere observer of events and put "false dilemmas" to the Greek people concerning problems which it itself had created.

Mr. Evert described the situation in the country's economy as one of "vagueness, confusion, uncertainty and delusion."

He said recent mobilizations by workers, pensioners, farmers and stockbreeders were not aimed at acquiring additional income.

"They are concerned about how they will manage to survive. Their endurance and tolerance has been exhausted," Mr. Evert said.

"A government which merely administers cannot extricate the country from the political, economic and social impasses. What is needed are far-reaching reforms in society and the economy. And the present government is incapable of performing simple administration," the ND leader said.

He further criticized the government of non-credibility in all fields and issues, including foreign policy, public administration and the industry.

Political Spring leader Antonis Samaras predicted a "social explosion."

"A social explosion is on the way of such ferocity and such intensity that it will perhaps be the first time the country experiences (such a phenomenon)," Mr. Samaras said. He said the government was following an economic austerity policy which required eleven consecutive years of sacrifices on the part of the Greek people "without any indication that it is approaching any of its targets."

Mr. Samaras said there was already a shortfall of 200 billion drachmas in state revenues as compared with the government's budget forecasts, while public sector borrowing requirements had risen to 11 per cent of GDP, compared with 7.1 per cent in 1992 and the public debt had increased to 121.5 per cent of GDP, against 85.3 per cent in 1993.

He also claimed that the public debt was one trillion drachmas higher than the figure contained in the state budget.

Mr. Samaras said that in the first three years of implementation of the EU convergence program "we had a significant divergence in actual terms of our GNP in comparison to the European Union, which is forecast to continue also in 1996."

He added that "our course towards Maastricht is so disappointing until now that it makes almost impossible our smooth accession to the economic and monetary union even after 1999..."

He further criticized the government's hard drachma policy calling for greater flexibility to increase the competitiveness of Greek products, and a radical and direct change in economic and social policies.

Communist Party of Greece (KKE) Secretary- General Aleka Papariga said the problem was not economic but political.

"Without a political solution," she said, "no program, no matter how popular, radical, realistic and ambitious it may be, has a hope of success."

Ms Papariga said that there was a crisis in industry, commerce and the agricultural economy.

"Production has entered a dislocation phase with grave negative consequences for the country's development and the people's standard of living,' she said.

She added that "this shrinking takes place in parallel to the promotion of buy-outs and merging procedures."

Criticizing ruling PASOK and main opposition New Democracy for always having adopted policies that were unfavorable to the working class, while "serving the interests of the shipowners, big trading companies, bankers and multinationals," she said the KKE supported the policy of subsidies for the re-structuring of agricultural production.

[2] 'Painful but necessary' cutbacks in public sector in the pipeline, Papantoniou says

National Economy Minister Yiannos Papantoniou told Parliament yesterday that the only answer to the problem of financing the social state - apart from creating a social dividend through speedier economic growth - was to cut back on waste in the public sector

He said that the government would announce "painful but absolutely necessary" decisions in May and June, which would include the abolition of organizations and services considered useless.

Mr. Papantoniou said he expected resistance to the government's efforts to proceed to radical restructuring of the public sector.

Referring to low pension earners, Mr. Papantoniou offered assurances that as soon as the relevant committee's discussions were completed, the government would take its decisions "in the framework of what the economy can afford."

Mr. Papantoniou said the government's first priority was finding socially acceptable solutions for all major problems.

On the question of major projects, Mr. Papantoniou said opposition claims of delays were mistaken, adding that the Hellenic Telecommunications Organization's (OTE) flotation on the stock exchange was of great importance and an indication that a "taboo that public utilities (DEKO) cannot be partially privatized in Greece was broken."

Mr. Papantoniou predicted inflation would fall to 7.5 per cent this year and GDP growth would reach 2.5 per cent, higher than the 2 per cent forecast for the European Union. He said that even if there was deviation from these figures, the basic positive development would not be canceled out.

Echoing statements by Prime Minister Costas Simitis, Mr. Papantoniou expressed the conviction that despite the strict economic policy, voters would renew PASOK's mandate at the next elections.

[3] Coalition

Coalition of the Left and Progress leader Nikos Constantopoulos yesterday said there was serious cause for concern in society and a need for radical reforms in the taxation system, public administration, firms and public utilities.

"Greek society is fast becoming a society of two-thirds, as inequalities of every form are being enlarged, and the phenomenon of social exclusion is steadily being established in the morphology of our economic and social map," he said.

"The exclusive pursuit of nominal indicators, according to the specifications of the Treaty of Maastricht, and the insistence on the policy of one-sided austerity, in no way secure the convergence of the Greek economy, and much less of our society, to t he European norm. On the contrary, the gap separating us from our European partners is widening," he added.

[4] Greece rejects US claims of security problems at Athens airport

Greece yesterday rejected US claims that security at Athens international airport at Hellenikon fell short of international standards.

"The security conditions at Athens international airport are good," government spokesman Dimitris Reppas said, while Transport and Communications Minister Haris Kastanidis said there was no question of danger to flights to and from the airport. The transport ministry, in co-operation with the foreign ministry, would reply to the US government, Mr. Kastanidis said.

According to a Reuters dispatch from Washington, the United States said Thursday night it had determined that Athens' Hellenikon International Airport does not fully meet internationally established security standards.

Chiefly at issue, according to Reuters, are checkpoint screening procedures. Standards are set by the International Civil Aviation Organization.

Mr. Reppas said problems at the airport were being dealt with and categorically rejected the claim that it was among the three worst in the world with respect to security standards.

The spokesman noted that the report acknowledged the efforts being made to improve conditions at the airport and stressed to reporters that the report did not constitute a travel advisory.

Reuters quoted US Transportation Secretary Federico Pena saying that experts from Greece and the United States were working closely to correct the problem.

"The department is confident that these combined efforts will resolve the security problem at Athens," Mr. Pena said. He added that Olympic Airways, the only foreign air carrier offering direct service to the United States from Athens, and US carriers f lying direct, had beefed up security checks "that counter the deficiencies identified at the Athens airport."

Mr. Kastanidis told a press conference later that Mr. Pena's observations related to the land-based control systems which were being replaced by the controls of private airline companies and the national carrier, Olympic.

The minister stressed that Mr. Pena's observations would have no repercussions on Greek tourism since it was merely an announcement "which will soon be revoked."

He expressed puzzlement, however, over the announcement which, he said, "could quite easily not have been made."

He wondered whether the announcement was connected with "Turkey's serious tourist problems due to Kurdish activities" and whether airports of other allied and friendly nations were being scrutinized in the same manner as the Greek airport.

He also wondered whether this US statement had anything to do with Prime Minister Costas Simitis' visit to the US in April.

Mr. Kastanidis presented a number of letters from Lufthansa, Swissair and other airline companies announcing that they were abolishing their own controls and would henceforth rely on the full controls carried out at Hellenikon airport.

The Greek government recently set up a national security committee for all the airports of the country. In co-operation with international organizations, it also established a personnel training department.

Mr. Kastanidis said that the government wished to maintain its co-operation with all international organizations and further improve its airport security systems "in order to remove any pretexts". He underlined that acts of terrorism had been carried out at most airports in the world, while in Greece there had been no such incident for many years.

[5] US statement

Commenting on the Greek government's reaction, a US State Department spokesman said on Thursday that "there are no political motives behind Mr. Pena's statement," which, he said, was the result of checks demanded by US legislation since 1985.

The spokesman reiterated that Greece and the US enjoy very good relations and will closely co-operate in order to improve the level of safety in Athens Airport.

According to reports, a delegation of specialists from the US transport ministry is to arrive in Athens on Tuesday for this reason, while US officials stressed that Washington does not intend to issue a travel advisory for Greece.

[6] Turkey must abandon territorial claims or risk losing EU funds, Pangalos says

Foreign Minister Theodoros Pangalos warned yesterday from Tirana that the course of Turkey's relations with the European Union would depend on Ankara's abandoning its territorial claims against Greece.

"The outcome of the (EU-Turkey) Association Council will not be in the interests of either Turkey or the European Union," Mr. Pangalos told reporters after talks with his Albanian counterpart Alfred Serreqi. "We do not want this Association Council meeting to take place because, in view of the recent events in the Aegean, the time is not ripe. With the Imia incident, Turkey for the first time put forward a territorial claim against Greece," Mr. Pangalos said.

The foreign minister stressed that Greece had every right to ask its EU partners to ask Turkey to abandon this territorial claim.

"That is, to force Ankara to say that it accepts the 1932 treaty between Turkey and Italy on the Dodecanese and the 1946 Peace Treaty ceding the Dodecanese to Greece. We did not do this because we wanted to be accommodating and well-intentioned and we proposed that Turkey be asked to make a statement that it is not threatening Greece with war and that it will respect international law. And that when they have demands - new demands - which did not exist before the customs union, that they will present them to the International Court," Mr. Pangalos said.

Instead of this, he continued, "Turkey sent us a proposal, this time setting out in writing and theoretically supporting its territorial claim.

"We remain firm in the position I outlined previously. We do not have much hope that logic will eventually prevail in Ankara, but after the end of the Association Council, which clearly will not be in the interests of either Turkey or the European Union, we shall revert to the position which we are entitled to have, namely, that from now on a condition for any advancement of relations between Turkey and the European Union will be (Ankara's) explicit abandonment of its territorial claims on the Dodecanese and the express recognition of the validity of the 1932 Treaty and the 1947 Peace Treaty," Mr. Pangalos said.

[7] No consensus at COREPER meeting

Probabilities for a common position among all 15 European Union member-states at next Tuesday's EU-Turkey Association Council meeting appear slim, after yesterday's Council of Representatives of Permanent Member-States (COREPER).

No commitment has been finalized for support of Greek positions on Turkish provocations, something Athens has requested. Conversely, no solution has as yet been worked out to smooth over Greece's objections to Community funding for Turkey within the framework of last year's EU-Turkey customs union.

The Italian EU presidency, however, is continuing efforts to find a diplomatic formula that will satisfy all sides. Italian delegates at the COREPER meeting proposed a joint statement by all 15 EU members that resembles a position Britain refused to app rove during the last EU foreign ministers' council on February 26.

That proposal is expected to be discussed among EU members, and barring any serious objections, it will be tabled by the Italian presidency at the EU-Turkey Association Council as its position. Based on such a tenuous scenario, the presidency would be satisfied to state that under present circumstances it is not possible "to release the funding." Thus, the EU-Turkey Association Council meeting on Tuesday is expected to have very limited significance.

According to diplomatic circles at the EU headquarters, member-states are supposedly unwilling to openly oppose Greece on this issue at present.

The same unnamed sources said the situation remains "fluid," as contacts by the Italian presidency and other large EU member-states will continue into the weekend, with the possibility that a new proposal will be unveiled at an EU foreign ministers' meeting on Monday.

In a related matter, the presidency's representative on the Cyprus issue, Italian ambassador Federico di Roberto, will present results of an interim report on his contacts in Athens, Ankara and Nicosia.

In Athens, government spokesman Dimitris Reppas clarified that Greece was seeking a joint statement from the European Union on the crisis in Greek-Turkish relations.

The spokesman added that Greece would not veto EU customs union funding for Turkey if Ankara satisfied the three conditions set by Athens.

Prime Minister Costas Simitis said in Rome Thursday that Greece's stance depended on whether its EU partners signed a joint statement and whether Turkey reacted positively to this statement.

The three conditions were that Ankara renounced the use of force, respected international law and treaties and referred any differences with Greece to the International Court at the Hague.

Mr. Reppas said that the status quo in the region of the eastern Aegean was "clear and a given fact."

Replying to questions, he said no permission had been given to Turkish "ecologists" to visit the rocky islet of Imia.

"Such an issue does not exist and is merely within the framework of Turkish ploys," the spokesman said.

Meanwhile, commenting on an incident at Istanbul airport yesterday morning, when Turkish airport officials insisted on searching the luggage of the wife of the Greek consul general in the city, Mr. Reppas said:

"Such actions are contrary to the rules of diplomacy."

He added that Greece would lodge a protest with the Turkish government over the incident.

Diplomatic sources said the insistence of Turkish officials searching the luggage of Elena Lykidi constituted "unbecoming behavior" which was not consistent with the etiquette required by diplomatic relations.

An ANA dispatch from Istanbul later said that Turkish authorities were looking into the incident.

Back in Athens, opposition Political Spring party spokesman Notis Martakis said Turkey was trying to up the ante in relations with Greece.

Describing the incident as "unprecedented" he added that it "reveals Turkey's true intentions."

[8] Greece takes precautionary steps

Greece is taking precautionary steps to avert Turkish provocations during the March 25 anniversary celebrations of the country's liberation from Ottoman rule, reliable sources said yesterday.

The same sources noted that in recent years Turkish provocations, mainly violations of Greek airspace by Turkish warplanes, have been occurring during the independence day anniversary.

The Defense Council met Thursday to assess the situation and "has taken all the indicated steps by air and by sea," the sources added.

[9] Greece refuses to attend Balkan security meeting that does not include Serbia, Romania, Pangalos says

Greece said yesterday that it would not be attending a Balkans defense ministers summit, slated for later this month in Tirana, because key nations, such as Serbia and Romania, had not been invited.

"We cannot discuss security issues in the Balkans without the presence of such countries as Serbia and Romania, when the United States has been invited to participate," Greek Foreign Minister Theodoros Pangalos told his Albanian counterpart Alfred Serreqi when asked why Greece would not be participating in the two-day Balkan Defense Ministers meeting on security in the region.

Albanian Defense Minister Safet Zhulali told a press conference on Wednesday that he expected US Defense Secretary William Perry and representatives from the Organization for the Security and Co-operation in Europe (OSCE) and defense ministers from Bulgaria, the Former Yugoslav Republic of Macedonia, Turkey, Italy and Greece to attend.

Mr. Pangalos, who is accompanying Greek President Kostis Stephanopoulos on his official visit to Albania - the first ever by a Greek head of state - told reporters that his meeting with Mr. Serreqi focused on Greece's intention to establish a Greek consulate in Korce as well as the Greek government's pledge to accept a certain number of Albanian immigrants as seasonal workers.

In later statements, Mr. Pangalos said that Greece would always support Albania in dealing with its particular problems.

"This is why we sent 35 million drachmas in wheat and gave the Albanian government the amount of 200 million drachma for the purchase of grain, in order to solve this pressing problem," he said.

Greek Finance Minister Alekos Papadopoulos, who is also accompanying the president on his visit, met his Albanian counterpart Dylber Vrioni on a wide range of issues including customs co-operation, construction of new routes linking the two countries and the granting of licenses to Greek banks in Tirana.

Specifically, they discussed contraband and the need for training in Greece of Albanian customs officials, the opening of two new border points, the undertaking by Greece of major Community PHARE-INTERREG projects to construct a highway linking Avlona to Igoumenitsa and the extension of the road from the Albanian region of Konispoli to the Greek borders.

Greek External Trade Under-secretary Manolis Beteniotis also met with Albanian Industry, Commerce and Transport Minister Suzanna Panariti, focusing on economic and trade transactions between the two countries.

The two agreed to the establishment of "an open line" of co-operation between Albanian and Greek economy ministry officials for the quick solution of administrative problems and the promotion of Community programs.

Talks also centered on the development of the Albanian agriculture sector through Greek investments and the organization of a "Greek Week" in Tirana with the participation of Greek businessmen was also agreed.

Mr. Beteniotis also pledged to promote a Greek language learning program for Albanian businessmen or nationals wishing to work in Greece.

[10] President meets with representatives of all political parties

President of the Republic Kostis Stephanopoulos said that Greece would not intervene in Albania's political affairs, after a meeting with the vice-president of the Socialist Party earlier yesterday.

The president met with representatives of all political parties.

"Our wishes do not refer to any particular party, but to Albania's democratic course," he said.

"Greece does not intervene with the neighboring country's internal affairs, and especially not in your political life," he said.

The president later inaugurated a Greek-language library in the Albanian capital, as he continued his historic visit in the neighboring country.

The library will be housed within the University of Tirana's main library, and will open with several hundred volumes and modern equipment. The university already includes a Hellenic studies and Greek language department.

In a speech at the dedication ceremony, Mr. Stephanopoulos emphasized the significance of culture in strengthening bilateral ties between the Balkan neighbors.

The only full-time Greek academic in Albania at present, University of Ioannina professor Costas Mizis, also spoke about the new library's significance.

"The operation of such institutions is of utmost importance for both peoples," Professor Mizis, a lecturer at University of Tirana's Hellenic studies department said.

Following talks with Greek minority organization "Omonia" representatives, Mr. Stephanopoulos said that both the Greek and Albanian governments supported the work of Omonia.

According to the organization's representatives "Omonia's' exclusive work is "to promote the rights of the ethnic Greek minority."

Albania and Greece began a new chapter in bilateral relations when they signed a friendship, co-operation and security agreement on Thursday.

The agreement was signed by Greek Foreign Minister Theodoros Pangalos and his Albanian counterpart Alfred Serreqi in the presence of Mr. Stephanopoulos and Albanian President Sali Berisha.

Both heads of state later called the agreement "historic," offering assurances that the latest co-operation would continue. During preceding talks, Mr. Berisha announced that Tirana had made commitments to safeguard the rights of the Greek minority living in Albania, while Athens had stated its intention to legalize those Albanian nationals in Greece who meet necessary conditions and to accept a certain number of seasonal workers.

The Greek president's visit ended yesterday.

[11] Greece, FYROM discuss defense co-operation possibilities

The possibilities for defense co-operation between Greece and FYROM were discussed yesterday by the head of the Greek diplomatic liaison office in Skopje Alexandros Mallias and FYROM Defense Minister Blagoj Handzinski.

Mr. Hadzinski issued an invitation to his Greek counterpart Gerassimos Arsenis to participate in military exercises due to take place in FYROM in October, with the participation of other countries.

Meanwhile, on his return from Prague, FYROM Foreign Minister Ljubomir Frckovski said he had suggested to US Secretary of State Warren Christopher that NATO expands to southern Europe so as to include FYROM and Albania.

[12] 19 ND deputies oppose recognition of FYROM as 'Macedonia'

A group of 19 main opposition New Democracy party deputies signed a written statement yesterday declaring their opposition to the prospect of Greece recognizing the neighboring Former Yugoslav Republic of Macedonia under a name containing the word "Mace do-nia' or its derivative.

The deputies said they were following "with great concern" the government's "unac-ceptable actions for acceptance of a composite name containing the term 'Macedonia'," adding that they "will fight so that Greece avoids this fatal mistake".

The 19 underlined that "the name 'New Macedonia' (which is being promoted) will not only not solve the problem in relations between the two countries but will become the starting point for greater sufferings."

Referring to the letter, New Democracy party spokesman Vassilis Manginas said the party's position on the FYROM name issue was covered by the 1992 political leaders' council decision under former president Constantine Karamanlis ruling out the use of the term 'Macedonia' and its derivatives, and that the party was in favor of a 'single package negotiation' in the framework of the United Nations.

Mr. Manginas added that any other statement was "premature and harmful to Greece's negotiating potential".

"When Skopje are staying put on their position and not making statements or adopting any positions, all talk on the subject causes harm, and the government is responsible for giving untimely publicity to it," he concluded.

[13] Macedonian mayors seek meeting with premier on FYROM name issue

The Macedonia-Thrace Mayors' Coordinating Committee will seek a meeting with Prime Minister Costas Simitis in order to be briefed on the government's positions on the FYROM name issue, committee president and Thessaloniki Mayor Constantinos Kosmopoulos said yesterday.

He added that the "committee does not understand the haste for solving the issue under dilemmas of doubtful seriousness, and reaffirms its previous positions, and those of all mayors, as regards the non-negotiability of the name".

He said they would also seek meetings with party leaders, and would determine their further course of action after their meeting with Mr. Simitis.

[14] Yugoslav PM sends message to Simitis

Yugoslav Prime Minister Radoje Kontic addressed a letter yesterday to Premier Costas Simitis on the occasion of Greece's Independence Day celebrations on Monday.

In his message, Mr. Kontic called for further development of traditionally friendly and close bilateral relations as well as co-operation in all sectors between Athens and Belgrade towards furthering peace, security and development in the Balkans.

A similar telegram was sent by Yugoslav Foreign Minister Milan Milutinovic to his Greek counterpart Theodoros Pangalos.

[15] Kaklamanis to attend Greek Independence Day celebrations in US

Parliament President Apostolos Kaklamanis will leave for the US tomorrow, at the invitation of the Federation of Greek Associations of New York to attend festivities organized by the Greek community on the anniversary of the March 25 national holiday.

During his stay in Washington and New York, Mr. Kaklamanis will meet US officials, including US President Bill Clinton.

An ANA dispatch from Washington said the established annual special ceremony at the White House to celebrate the anniversary of Greek Independence Day will take place on March 28 this year, with the participation of US President Bill Clinton who is expected to sign a relevant proclamation.

Among others, the event is expected to include Mr. Kaklamanis (who will also attend the parade organized for the March 25 holiday in New York next Sunday), Greece's Ambassador to the US Loukas Tsilas, Archbishop Iakovos, World Hellenism Council (SAE) President Andrew Athens and other distinguished Greek-Americans. On the same day, the representatives of Greece and leading Greek expatriates are expected to meet leaders of the two parties in Congress.

On March 27, Mr. Tsilas will host a reception for Mr. Kaklamanis who will leave for New York afterwards to attend events celebrating the anniversary which will end on Sunday with the parade on Fifth Avenue.

Main opposition New Democracy party deputy Sotiris Kouvelas will also leave for the US today to attend March 25 celebrations.

Mr. Kouvelas has been officially invited by expatriate organizations in the US and Canada. He will pay a three-day visit to Toronto, Canada, while in the US he will pay a three-day visit to San Francisco and a four-day visit to New York.

His program includes speeches and contacts with politicians in the US and Canada.

[16] Speakers stress the need for a Mediterranean of co-operation, peace and development

The international four-day conference on "Mediterranean co-operation and development" ended in Kalamata, southern Greece, yesterday afternoon with all speakers addressing the conference stressing the need to achieve a Mediterranean of co-operation, peace and development.

Greece had an important role to play as the only European Union member state that was at the crossroads of Europe, Asia and Africa, and due to its cultural ties with the other Mediterranean countries, former finance under-secretary Ioannis Anthopoulos said yesterday.

Mr. Anthopoulos, a deputy of the ruling PASOK party, said the Mediterranean basin was an important trade region.

An estimated 34.4 per cent of total imports by Greece in 1994 were from Mediterranean countries, while 32 per cent of its total exports were to those countries, Mr. Anthopoulos said.

Of Greece's overall Mediterranean exports, Italy was the main recipient with 43.2 per cent, followed by France with 16.7, Spain with 7, and Egypt with 3.5, Mr. Anthopoulos said, noting that the main volume of Greek exports to the Mediterranean were absorbed by the region's European Union member countries. But Mr. Anthopoulos said there was a problem of deficient development of the Mediterranean trade and economic relations, which was attributed on the one hand to the low level of contacts and "suspicion" that frequently exists between countries and economic and trade units, and on the other to a lack of business communication networks.

He said the tariff regime of a number of countries was also an inhibitive factor.

"We must seek improvement of the Mediterranean economies so that conditions of peace and stability will prevail in the Mediterranean and the populations of the region's countries will be at a satisfactory level of economic prosperity," Mr. Anthopoulos said.

Chairman of the Calabria Chamber of Commerce and Industry and representative of the Association of Chambers of Italy, Napoleone Guido, proposed the establishment of registers of companies of the Mediterranean states.

Cairo Chamber of Commerce and Industry chairman el Mahmoud el Arabi called for the lifting of the various obstacles existing in trade transactions between the Arab countries and European states, and stressed the particular ties between Egypt and Greece.

Mohammed Salem al Qudwa, chairman of the Palestine Chamber of Commerce and Industry, spoke on the prospects being created following the Palestinian-Israeli peace agreement.

Kaled Ben Mubarak, advisor to the Association of Trade and Industry of Tunisia, called economic development the only road to solving the problems in the region of the Mediterranean and Middle East, adding that the cultural particularities of the cooperating countries needed to be preserved.

At the close of the conference, Kalamata mayor Christos Malapanis said it had not been a conference for heads of state but a conference for institutes and chambers trying to find ways of contact, acquaintance, promotion and trade exchanges at local or national level for the consolidation of peace.

Two Greek companies started contacts with commercial companies in Tunis, Morocco, and Palestine for the export of olives and olive oil, while the Karelia tobacco industry reached an agreement with an Egyptian cigarette factory for cigarettes of the Karelia tobacco industry to be produced there, he said.

An Italian company started contacts with the Serres prefecture aimed at the city being supplied by the Italian factory for special electric buses while the Bank of Greece also reached an agreement with the Bank of Palestine on its organization by the former.

The twinning of the city of Kalamata with Bizerta, Algeria, and Ismailia, Egypt, home of the biggest Greek community in Egypt, took place on the sidelines of the conference.

[17] Simitis to visit Papandreou at home

Government spokesman Dimitris Reppas said yesterday that Prime Minister Costas Simitis would visit PASOK president Andreas Papandreou at his home in Ekali soon.

[18] Thessaloniki's potential as regional transit center confirmed at conference

The first international conference on combined transport and transit in southeastern Europe ended in Thessaloniki yesterday, with the conclusion that competition between ports in the southeastern Mediterranean was expected to heighten in the future with the transit of containers spearheading the development.

Competition will ultimately lead to one or two ports where containers will be reloaded while the remaining ones will handle containers in transit to their hinterland. Consequently, ports benefiting will be those meeting transit and in particular those which, such as Thessaloniki, constitute an exit to the sea for a continuously widening hinterland.

Macedonia airport could be another "trump card" for Thessaloniki in the race for combined transport as it already operates as a center for collecting cargoes of ready-made clothes by Greek firms and by firms of neighboring Balkan countries destined for markets in the US and Canada.

Other Greek ports such as Piraeus, Volos and Alexandroupolis also have an important role to play.

Thessaloniki, however, is becoming a nucleus for the future of combined transport since the conference is being established as an institution with the announcement of the second session in May 1998 and with Thessaloniki being the first venue chosen.

Among the conference's main proposals is the adoption and adjustment to the requirements of the UN's international accord on combined transport as well as of the other international accords, with emphasis placed on the transport of dangerous materials such as chemicals and gunpowder.

The European Commission will reach a decision soon on awarding the study of a strategic survey of the Greek merchandise center network, financed entirely by the Cohesion Fund and which the Greek Transport Chamber Federation hopes to undertake.

[19] British beef banned since 1994, ministry says

In connection with the latest reports concerning the outbreak of mad cow disease in Britain, Agriculture Under-secretary Apostolos Fotiadis yesterday officially notified Health Minister Anastasios Peponis that the importation of beef from Britain has been banned since 1994.

Meanwhile, the EKPOIZO consumers' organization said there was no particular cause for anxiety, but called on consumers to demand the obligatory labeling of meat products and to gradually reduce their meat consumption.

[20] Joint efforts underway to establish Greek, Bulgarian free trade zones

The Evros prefecture and the Bulgarian region of Haskovo are jointly implementing a program of cross-border co-operation, aiming at the creation of free industrial zones of economic transactions.

A protocol signed by Evros prefect Giorgos Dolios and Haskovo regional director Angel Daidenov in Bulgaria yesterday envisages the creation of an industrial development zone in Haskovo, to be financed through the INTERREG 2 and PHARE programs of the European Union.

The Bulgarian zone will be complemented by a free industrial zone for economic transactions at Ormenion, Evros.

In yesterday's meeting, the Greek side presented proposals for Haskovo's participation in a 'Zone for the Development of Entrepreneurial Activities' plan, financed through the ECOS-OUVERTURE program.

End of English language section.