A.N.A. Bulletin, 30/04/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 874), April 30, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: [email protected]

CONTENTS

[1] Bank of Greece governor urges anti-inflation vigor

Bank of Greece Governor Lucas Papademos blamed public utility rate hikes for halting inflation's downward trend during his presentation yesterday of the central bank's annual report on the Greek economy.

Mr. Papademos urged for containment of operational costs of the public sector enterprises and adoption of what he called a firm and rational rates policy.

He said utility rates should not be automatically adjusted, since they would cover the cost and deficits of those enterprises not operating efficiently, which in turn would have adverse repercussions on the inflation rate and real income of consumers.

Mr. Papademos recalled that significant progress toward reducing inflation had been achieved last year, although it had overshot the 7 per cent target foreseen in the Convergence Programme, running at 8.1 per cent.

He said that in order for Greece to take part in the EU monetary union, inflation must not exceed the average of the three member states with the lowest inflation by more than 1.5 percentage points.

It should be noted that Finland, Belgium and France were the three countries with the lowest inflation rates last year, with an average of 1.4 per cent. This implies that for a member-state to be eligible for participation in monetary union, its inflation rate would have to not exceed 3 per cent.

Mr. Papademos also said positive achievements in the Greek economy in the last two years should not lead to laxity, since the ultimate goal was the country's participation in Economic and Monetary Union (EMU).

He said continuation of economic growth should be ensured in conjunction with a real and lasting rise in the standard of living.

Given that the first stage of EMU was slated for 1999, the prospect of Greece being among the first group of countries to join EMU appeared "unfeasible," Mr. Papademos added.

He called for the assumption of initiatives to reduce expenditures, increase revenues through privatizations and utilization of state property in order to reduce the borrowing requirements of the public sector.

Mr. Papademos said the public sector borrowing needs were still at exceptionally high levels.

Despite a reduction in the borrowing requirement of the wider government sector, the public sector debt reached 111.7 per cent of GDP at the end of 1995 from 110.4 per cent at end-1994, he said, warning that the ratio of the public sector debt to GDP was double than the targets established in the Maastricht Treaty, which made the need for reduction of the debt imperative.

Mr. Papademos further said that financing the public sector deficits had become difficult in the last two months of 1995, due to increased borrowing requirements as collection of tax revenues fell short of budget provisions.

For 1996, he said, further reduction of the net borrowing requirement of the wider governmental sector as a proportion of GDP is being sought. Turning to 1996 monetary policy, Mr. Papademos said the primary target was a further reduction of inflation. Another target was to maintain the average drachma parity against the ECU steady throughout the year, as stipulated in the Convergence Programme.

He noted, however, that parity could present minor fluctuations during the rest of the year, depending on the conditions prevailing in the domestic and international money and foreign exchange markets.

Mr. Papademos also said overall credit expansion should be contained at 5-7 per cent this year against 7.9 per cent in 1995, which was barely inside the 6-8 per cent forecast.

Turning to the prospects for the Greek economy, Mr. Papademos said the time required for stabilization cannot be precisely determined because it is dependent on unable to be foreseen factors, but also on the persistence and efficiency with which existing imbalances will be tackled.

He said the Convergence Programme predicted that inflation and the deficit of the wider government sector will have fallen to 3.5 and 2.4 percentage points of GDP, respectively, in 1998, while the public sector debts will have fallen to approximately 1 09 per cent of the GDP. Gradual acceleration of economic growth to 3 per cent is predicted, as well as containment of unemployment to about 9 per cent of the work-force.

If the targets on inflation and the deficit are achieved, Mr. Papademos said two fundamental conditions for stability of the economy will have been attained.

But, he added, because the ratio of public debt to GDP will continue to be high it will be necessary to maintain large primary surpluses in the state budget for a number of years, so as to put the ratio on a steady and satisfactory downward course.

As for how long will be required to reduce the public debt ratio to levels more consistent with ensuring stability, Mr. Papademos said this depended on the size and continuity of fiscal adaptation and the ability of the economy to grow at faster rates.

He said the reduction of real interest and inflation would have a positive influence on reducing the public debt.

[2] Reactions

The main opposition New Democracy party said in a statement that the annual report confirms in a "categorical manner the failure of the government's economic policy, which is also depicted in the stock exchange."

Political Spring party spokesman Notis Martakis said:

"The official admission by the Governor of the Bank of Greece, both of the inability of achieving the target of reducing inflation and the increase in unemployment, certify the absolute failure of the stabilizing program applied by PASOK and ND in the past decade.

In addition, an announcement by the Coalition of the Left and Progress party on the same issue stated:

"The policy of one-sided austerity, without structural changes and development potential, is leading the economy to a real divergence and is creating a serious social price."

[3] Evert opens EPP Athens conference

Main opposition New Democracy party leader Miltiades Evert yesterday opened the European Peoples' Party's (EPP) seminar here, which will be completed Friday.

In addressing the seminar, Mr. Evert raised the issue of Turkish provocations against Greece and the rise of Islamic fundamentalism.

"Turkey should conform with international law and international agreements, as well as help in efforts to find a just and viable solution to the Cyprus problem," he said.

The ND president noted that "the danger to the east of Greece exists and is progressing," adding that "Greece will support the secular state in the neighboring country".

"I hope Greece should not be called in to play the role of the European Union's bastion," he added.

Underlining the rise of the Moslem religious fundamentalism in Algeria, Egypt and Turkey, he said "...we should not transform our desires to certainties and rely on them... Turkey's role will be more useful for itself and the European Union if Ankara turns to the east and the former Soviet Turkophone republics," Mr. Evert said, noting that "Turkey's effort for an offensive penetration in the Balkan countries and for exporting its problems toward Greece are unproductive, dangerous and destabilizing policies."

"The goals of a common foreign and defense policy should be more clearly defined with the ensuring of the EU's external borders, respect and guarantees for international law and treaties as well as mutual assistance," Mr. Evert said referring to the EU.

He further noted that ensurance of the EU member-states' integrity should precede the abolition of the consensus principle, adding that mutual assistance should be allocated, in the first stage, in the form of material necessary for the defense of a member-state whose territorial integrity is threatened."

In addition, Mr. Evert opposed the abolition of the veto in the Council of Ministers meetings, especially in sectors requiring ratification of a decision by national parliaments.

The ND president stressed the importance of social cohesion and social solidarity in a unified Europe, adding that economic convergence should not be an end in itself.

In his address, EPP President and former Belgian premier Wilfred Martens reiterated that Greece's borders constituted EU borders.

In reference to Mr. Evert's address, Mr. Martens praised his European orientation, "a fact showing ND's dedication to European values."

"We await your commitments on the level of government responsibilities within the next few months," Mr. Martens told Mr. Evert, adding that "we hope you will come to the next European council in this capacity."

Mr. Martens referred to his meeting with Ecumenical Patriarch Vartholomeos over the weekend in Istanbul, saying that "without the Orthodox world we would have not achieved the European Union in the right way."

Mr. Martens said his meeting with President of the Republic Kostis Stephanopoulos yesterday morning focused on security issues in the region.

Referring to his Sarajevo meeting, he spoke of the city's systematic destruction, noting that "he sought and found political interlocutors in Bosnia."

Mr. Martens also expressed his satisfaction at the results of the three Italian parties, which are EPP members, in recent elections.

[4] Turkish daily attacks Ecumenical Patriarch

The Islamic/nationalist-leaning "Turkiye" newspaper carried banner headlines yesterday criticizing Ecumenical Patriarch Vartholomeos for meeting a 16-member delegation of Eurodeputies belonging to the European Peoples' Party (EPP) at his Fanar headquarters over the weekend.

According to the daily, Vartholomeos referred to human rights in Turkey, allegedly stating: "Unfortunately, they do not give guarantees for political equality and democratic administration."

The newspaper also published a photo of the Patriarch with a caption reading: "He spewed hatred," saying that while speaking at a "secret meeting," as it termed the talks, the Patriarch allegedly said "human rights in Turkey is a separate important issue."

The newspaper claimed the Eurodeputies called on the Patriarch to exercise his influence to persuade Athens not to obstruct application of a customs union between Turkey and the EU.

The delegation, headed by former Belgian Prime Minister Wilfred Martens, held an "organized dialogue" with high-ranking Ecumenical Patriarchate officials on issues "concerning human values and human rights," environmental protection, social policy and t he role of the Orthodox Church in greater Europe.

[5] Stephanopoulos greets former Belgian PM Martens

President of the Republic Kostis Stephanopoulos held a meeting yesterday with the President of the European People's Party (EPP), and former Belgian Prime Minister Wilfred Martens.

Mr. Martens is currently in Greece at the head of an EPP delegation.

[6] Pangalos briefs Simitis on his meeting with Turkish foreign minister

Foreign Minister Theodoros Pangalos yesterday briefed Prime Minister Costas Simitis on his Saturday meeting with his Turkish counterpart Emre Gonensay, which was held in Bucharest on the sidelines of the Black Sea Economic Co-operation Conference.

Government spokesman Dimitris Reppas described the Pangalos-Gonensay talks and an agreed upon meeting between Greek and Turkish experts in Switzerland as "contacts without commitments, and not organized dialogue."

Dialogue, he added, would have been if the two sides were "entering into talks with a comprehensive set of issues for the purpose of taking decisions."

Mr. Reppas said Athens' no-strings-attached contacts policy "helps Greece set out its positions and secure international support, at the same time proving that it has good faith."

He also said the Pangalos-Gonensay meeting was for Greece, one of "sounding out" Turkey's intentions.

However, he said Ankara was aiming at "gray" co-operation and agreement, whereas Greece advocated steady steps of rapprochement between the two countries on the basis of respect of international law.

"If Turkey rids its policy from claims on our territorial integrity, Greece will respond affirmatively," Mr. Reppas said, adding that the new Turkish foreign minister refrained from using the phrase "casus belli" in relation to Greece's right, under the International Law of the Sea Convention, to extend its territorial waters to 12 nautical miles from the current six.

[7] Yilmaz statement

Meanwhile, Turkish Prime Minister Mesut Yilmaz yesterday expressed satisfaction at the meeting between the Greek and Turkish foreign ministers on Saturday.

"The fact that Greece was positive toward Ankara's appeals for dialogue between the two countries is an important development," Mr. Yilmaz said.

[8] Gov't criticizes ND statements over Pangalos-Gonensay meeting

Government spokesman Dimitris Reppas yesterday forecast what he called a bleak future for the main opposition New Democracy party "if it exercises its policy the way it exercises its criticism."

He was referring to an ND statement regarding the Saturday meeting between the Greek and Turkish foreign ministers, on the sidelines of a four-day Black Sea Co-operation Conference in Bucharest.

Mr. Reppas said the main opposition party made assumptions concerning a Greek-Turkish dialogue "which does not exist," attributing responsibilities to the government "emanating from this issue."

In a statement Sunday, New Democracy warned the government "not to be trapped in a dialogue with Turkey without first having ensured respect for our sovereign rights..."

In such a case "either the talks will be stopped or the government will become involved in a negotiation which will have important consequences in our sovereign rights in the Aegean," the ND statement read.

Turning to other issues, Mr. Reppas described as "unfounded" certain political parties' concern over a US Congress debate on western Thrace, saying this was an opportunity to present Greece's positions on the issue.

"Parties should judge according to specific government action and not in accordance with their opposition task," he added.

In another development, Political Spring party spokesman Notis Martakis said yesterday that the government had not realized the costs from US and Turkish involvement in the western Thrace affair.

[9] Simitis meets with Luxembourg Premier Juncker

Prime Minister Costas Simitis yesterday held talks with the prime minister of Luxembourg, Jean-Claude Juncker, on issues concerning the European Union, its institutions and the course toward economic and monetary union, as well as Greek-Turkish relations.

The two premiers told reporters after the meeting that they were in agreement regarding the direction of EU issues, while Mr. Juncker added that there should be a mechanism for protection of relations between the member-countries taking part in the sing le currency and those nations outside the single currency.

Mr. Simitis briefed Mr. Juncker on Greek-Turkish relations following the meeting between the two countries' foreign ministers on Saturday on the sidelines of the Black Sea Economic Co-operation meeting in Bucharest.

He said Mr. Juncker believed that if claims existed, recourse should be taken to the International Court of Justice at The Hague.

He also said there should be a "public statement" on a peaceful settlement of differences, implementation of the rules of international law and on not using the threats of violence.

Mr. Simitis met earlier with visiting European Commissioner for Economic and Monetary Affairs Yves-Thibault de Silguy.

[10] Gov't: Simitis hasn't decided if he will seek PASOK vice-presidency

Government spokesman Dimitris Reppas said yesterday that Prime Minister Costas Simitis had not yet decided whether he would be a candidate for the vice-presidency of the ruling PASOK party, adding that when he does decide, he will do so on the "basis of the needs and interests of the country and society."

Commenting on press interviews by prominent party cadres, he said there was no danger of a "Bosniazation" of the party, as PASOK was not comprised of disparate forces. He noted that the prime minister was not ignoring different positions among members, which provided the context of debate in a course toward the party congress in June, but said that "summit agreements" were not needed.

"What is needed," he added, "is members' sincere commitment to PASOK's political and ideological principles".

Meanwhile, PASOK Secretary Costas Skandalidis described as "fruitful and substantial" a meeting with Premier Simitis yesterday.

Questioned about the "summit" meeting requested by high-ranking PASOK members, he said many cadres had spoken about a "broader agreement," which he supported, as it was anxiously hoped for by the party's rank and file and which would be ratified at the party congress in June, through what he called "a process of fruitful dialogue."

In reference to Mr. Reppas' position that "summit agreements" were unacceptable before the congress, Mr. Skandalidis said he, too, was opposed to the "super-imposition" of agreements on the congress, but discussions concerning the prerequisites of a common course were acceptable.

He added that he had already undertaken initiatives for such meetings.

In a related matter, Transport and Communication Minister Haris Kastanidis stated in Thessaloniki yesterday that PASOK did not need to elect any vice-presidents and that he hoped Mr. Simitis would not express in advance his intentions about what exactly he would do at the congress.

He added that he refused to participate in a debate that "was introverted, did not aid the political climate and dissolved the potential for initiatives by the government and party."

Referring to the party congress, he said "it must be transformed into a fertile tribune of co-operation, dialogue and assessment of the country's needs. If we don't do it, we shall have failed and history will denounce us."

[11] Calls for dual leadership

In separate interviews yesterday, Parliament President Apostolos Kaklamanis, Education Minister George Papandreou, who is also son of PASOK founder and President Andreas Papandreou, as well as former press minister Telemahos Hytiris, supported the idea of a dual leadership, and recommended that the prime minister not contest the post of Vice-President or alternate president of the party.

In an interview with the Eleftherotypia newspaper, Mr. Kaklamanis proposed Interior Minister Akis Tsohatzopoulos for the post, adding that the election of a Vice-President did not mean the election of a successor for Andreas Papandreou. This, he said, c an take place at a congress after the elections.

"After the elections, we shall all have the convenience to develop our ambitions," he said.

George Papandreou told the newspaper Ethnos that he had informed the prime minister of his view that he considered his possible assumption of the post of Vice-President as "contradictory.".

He said he was in favor of a "gentlemen's agreement" concerning the party's further course, as proposed by Mr. Kaklamanis, so that those who wish to be candidates for the party's leading positions at the present moment do not become responsible for divisive moves and practices."

He asked all the members of the party to approach the issue of succession with special care and in a humane way."

In his interview with the paper Ta Nea, Mr. Hytiris rejected proposals that Andreas Papandreou be given the post of honorary president.

"Andreas Papandreou is the founder and president of PASOK, and, of course, never honorary. There can be no demobilization for Andreas Papandreou," he said.

He added he was in favor of an immediate agreement among prominent members, and of the dual leadership, with "distinct roles in the government and party."

[12] Further Gov't statement

Following the spate of statements by members of the government and party concerning the issue of dual leadership in PASOK, the government issued a further statement late in the afternoon, saying that it "does not comment or assume a stand on matters concerning the course and prospects of PASOK."

"The government respects the expression of views by members, honors all members and does not intervene in their public pre-congress dialogue between them."

[13] Labor groups issue statements in light of May Day

Events scheduled to take place over three days to mark the May 1 labor day began yesterday with work stoppages and speeches at several work sites.

Events will climax with a rally and concert on Wednesday at the gate of the Pedion Areos Park by the General Confederation of Workers of Greece (GSEE), the Civil Servants' Supreme Administrative Council (ADEDY) and the Athens Labor Center (EKA).

The GSEE administration called on the country's workers to strengthen their fight for a solution to be found to their problems.

GSEE demanded an end to austerity policies; an improvement in workers' income; measures to be taken against rising prices and profiteering; policies for the protection of the unemployed; measures for the long-term unemployed and for unemployed senior citizens; work inspection upgrading; an emphasis on development and a correct utilization of funds from the Delors II structural aid package.

In its announcement, ADEDY stated the position of workers regarding income is being downgraded, while 1.85 million citizens live under the poverty line. The announcement also said that policies implemented until now have not been capable of dealing with the current problems.

ADEDY spoke of the need for a new restructuring of the country, the need for peace and co-operation in the Balkans and worldwide. It also referred to a workers' Europe, which is not a Europe of multinational corporations.

In an announcement issued by EKA, the labor center called on all workers to participate in the events "so reinforcing the positions of unions for the protection and the broadening of workers' pension and social rights."

[14] New EBO rifle to be unveiled

The Hellenic Arms Industry (EBO) is due to present a new rifle at a military base in Thebes, expected to cover the range between the infantry's light and heavy weapons needs.

The "Nemesis" has been designed by EBO in co-operation with the American company Barrett, and describes the weapon as an Browning-type assault rifle.

[15] Premier to tour eastern Macedonia-Thrace on May 2-4

Prime Minister Costas Simitis will be visiting the eastern Macedonia and Thracian region later this week as the head of a high-ranking government delegation.

During his visit, the premier is expected to announce a series of government policies for the region's development.

Mr. Simitis will visit the prefectures of Kavala, Drama, Xanthi, Rodoppi and Evros.

According to eastern Macedonia-Thrace Regional Director Haris Tsiokas, Mr. Simitis was expected to present a 10-year development and infrastructure program during his visit to Komotini on Thursday evening. These measures will include measures for the sectors of tourism, energy, trade, natural gas, and the Egnatia Highway.

Mr. Tsiokas said the premier is expected to define the goals and paces "which will lead this border region out the of impasse."

Mr. Simitis and Mr. Tsiokas had two meetings in Athens to discuss the problems and measures to be taken in the region. On Friday, Mr. Simitis will visit the Fourth Army Corps in Xanthi, as well as visit the Egnatia route through Kavala.

On Saturday, Mr. Simitis will visit Evros, the last stop of his tour, and will be briefed on the progress of infrastructure works under construction.

The prime minister will be accompanied in his tour by Development Minister Vasso Papandreou; National Defense Minister Gerassimos Arsenis; Environment, Town Planning and Public Works Minister Costas Laliotis; Public Order Minister Costas Geitonas; Health

Minister Anastasios Peponis; Macedonia-Thrace Minister Filippos Petsalnikos and other officials.

[16] Papantoniou outlines goals Greece must take to join EMU by the year 2000

National Economy Minister Yiannos Papantoniou said yesterday that Greece can join the "hard core" of Economic and Monetary Union (EMU) before the year 2000, without having to wait for years.

Mr. Papantoniou spoke at a meeting organized by the Economic and Industrial Research Institute (IOBE) and the Union of Greek Banks at a downtown hotel last night on Greek enterprises and banks preparing themselves in light of the new "Euro" currency slated for application by several major EU nations.

"The time has come for radical changes," he said, clarifying the government's intention to proceed with "more drastic structural intercessions in connection with those attempted to date, primarily in the public sector."

He said privatizations should be speeded up and new methods and conceptions should be initiated to combat waste in the public sector, reduce operational cost and improve the quality of services provided by public agencies.

Should this fail to take place, he warned, expectations for an effective social state would be frustrated once again, and the "bet" on Greece participating in a unified Europe would be lost.

Mr. Papantoniou said it was difficult for Greece to participate in the third phase of EMU together with first-cycle ("hard-core") countries, adding that the country could "achieve" Maastricht criteria in 1998, with only a one-year delay, and assured his audience that this challenge was a steadfast and important target for the government.

He referred to the development potential observed lately as well as high investment rates in both the private and public sectors and modernizing initiatives by the working sector, predicting that the attainment of growth rates near 4 per cent was feasible in the near future.

Mr. Papantoniou reiterated the Greek government's position that there should not be very strict consideration of convergence criteria at the Community level and, on the contrary, there should be more flexible consideration not to render the course of certain member-states toward EMU difficult.

He said that despite difficulties experienced recently, due to unusual economic conjunctures, progress would be visible and feasible this year. He added that inflation would stand on average at about 7.5 per cent (slightly higher than the target initially set), the fiscal deficit would decrease to 7.4 per cent (compared to 9.2 per cent in 1995), GDP would increase by 2.5 per cent (a rate exceeding that of the other Community members) and the bulk of investments would increase by 10 per cent.

Mr. Papantoniou said 1996 would be, even marginally, the first year of real convergence for the Greek economy, while at the nominal convergence level, the country's distance from Maastricht criteria would be met two-thirds of the way.

He expressed support for strengthening competition in the local fiscal system, increasing participation of private capital in the share capital of large state banks and attracting more foreign banks to Greece, otherwise he warned, there would be negative consequences for Greek banks.

[17] De Silguy: Euro currency won't establish a Europe of "two speeds"

A message by European Union Commissioner Yves-Thibault de Silguy on Greece's participation in the third phase of Economic and Monetary Union (EMU) and the single currency was both encouraging and "painful" for the country.

Mr. de Silguy, who had been invited to address leading Greek business and banking officials yesterday evening at an event organized by the Economic and Industrial Research Institute (IOBE) and the Union of Greek Banks on preparation in light of application of the new Euro currency, expressed support for a rigid interpretation and implementation of Maastricht Treaty criteria, when the time came in early 1998 to select countries to apply the unified currency.

Mr. de Silguy said starting a discussion now on how "flexibly" criteria should be interpreted was meaningless, since such a procedure would question the credibility of the undertaking. However, he expressed the hope that lagging member-states would take supplementary measures to meet the criteria in time.

He also offered assurances that the introduction of the Euro currency would in no way divide Europe in two, or between countries of "two speeds," namely between those inside and outside the "hard core."

Referring to Greece, he said the country had made substantive efforts to decrease inflation, a sector in which it had achieved considerable progress, as he said, but vigilance was always required by the government.

He also said this policy must continue to have interest rates further reduced, adding that a decrease in the state deficit from 12 per cent three years ago to 8 per cent at present was also encouraging. Mr. de Silguy further said a target of 3 per cent was indeed realistic for Greece in a reasonable period of time from now, if the present policy was continued.

[18] Investigations continue over Kolonaki bomb blasts

Police authorities claimed yesterday that the suspects who placed two explosive devices in a Kolonaki district shopping mall Sunday evening aimed to injure bystanders, and particularly police.

Authorities estimated that as two anonymous phone calls to a radio station and the "Eleftherotypia" newspaper warned of only one bomb, the intention was for police to arrive at the scene of the first explosion in order for a second bomb to injure them.

The anonymous call has led police to believe the incident was a terrorist attack connected to a recent bomb blast outside the apartment of Supreme Court Deputy Prosecutor Avraam Stathopoulos. The anonymous calls also claimed the organization responsible for the two attacks is called the until now unknown group "minimalist faction."

According to police officials, no remains of a timing devise were found at the scene. Both bombs were ignited by a mosquito repellent coil, while a large amount of explosive material was used, which police suspect as TNT.

However, police investigations into the incident have not produced any further results. The anti-terrorist service and other police officials held meetings yesterday, while the Public Order Minister Costas Geitonas visited Athens' police headquarters in order to be briefed on the attack.

Senior officials accompanying Mr. Geitonas said investigations are continuing into the two anonymous telephone calls made almost simultaneously with the first explosion, to the radio station "Flash" and the newspaper.

According to unofficial statements made by anti-terrorist members, investigations are also being carried out into the possibility that Sunday night's attack was caused by underworld figures.

[19] Plan foresees foreign ministry's reorganization

Foreign Minister Theodoros Pangalos told Parliament last night that he would release a plan for his ministry's reorganization within the next six months.

He also announced that the Greece will soon buy 45 buildings around the world to house its diplomatic missions abroad, which now use rented premises.

A relevant bill now under discussion by Parliament provides for the opening of embassies in Bosnia, Belarus and the Ukraine. New consulates, such as in Constanta, are planned as well as a permanent diplomatic delegation to the Western European Union, based in Brussels.

[20] State Department calls Pangalos-Gonensay talks a 'positive step'

US State Department officials yesterday described as a positive step in the normalization of relations between Greece and Turkey, Saturday's meeting in Bucharest of the two countries' foreign ministers, Theodoros Pangalos and Emre Gonensay.

Commenting on Assistant Secretary of State John Kornblum's recent visit to Ankara, Athens and Nicosia, the same officials stressed that although it was of an exploratory character, it proved very useful and will contribute to a better understanding of the problems of the region by the United States.

[21] Tansu Ciller declined to answer Bill Clinton's calls during the height of the Imia crisis

According to Turkey's top circulation newspaper dailies, former Turkish prime minister Tansu Ciller refused to answer US President Bill Clinton's telephone calls on the crucial night of the Imia crisis last Jan. 31, knowing he would ask her to withdraw the Turkish naval forces from the area.

"She even tried to persuade President (Suleyman) Demirel to do the same. But the Turkish President managed to dissuade her," the Hurriyet and Millyet dailies reported yesterday.

Both papers claim the incident constitutes "an indication of the arbitrariness of Tansu Ciller in the exercise of foreign policy," and note that on another occasion, she gave orders for bombing raids against bases of the Kurdish Workers' Party (PKK) on Iranian soil.

On that occasion, too, President Demirel's intervention was decisive in averting incidents, the papers claim.

[22] Technical directors from Balkan nations' news agencies meet in Thessaloniki

Transport and Communications Minister Haris Kastanidis declared the opening of a conference for the technical directors of Balkan countries' news agencies at Helexpo's "Nikolaos Germanos" convention center in Thessaloniki yesterday.

Mr. Kastanidis stressed the government's decision to support the effort underway for the creation of a Balkan News Bank, headquartered in Thessaloniki and satellite linkage between news agencies through the "Diavlos" program.

He said he was certain the European Union would entirely support these efforts, adding that the creation of an office of the Union of Balkan News Agencies in Brussels to feed the Balkan News Bank with information from the EU was very useful.

The meeting was attended by the technical directors of Albania's ATA news agency, Bulgaria's BTA and BIP, TANJUG from the Federal Republic of Yugoslavia, the Athens News Agency (ANA), the Macedonian Press Agency, MPB from the Former Yugoslav Republic of Macedonia (FYROM), Romania's Rompress and Turkey's Anadolu.

Also present were the general directors of the Bulgarian BIP agency and FYROM's MPB.

ANA was represented by the head of the telecommunications department Takis Mantis.

The Bulletin will not be published on Wednesday, May 1 due to

Labor Day. It will appear regularly on Thursday, May 2.

End of English language section.