A.N.A. Bulletin, 28/09/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 1001), September 28, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: [email protected]

CONTENTS

[1] Pangalos reiterates Greece's hope for better relations with Ankara

Foreign Minister Theodoros Pangalos yesterday declared Greece's wish to establish good-neighborly relations with Turkey based on international law and respect for international treaties, which he charged Ankara is ignoring.

In addressing the 51st annual United Nations General Assembly, Mr. Pangalos said:

"The Greek government sincerely desires the establishment of normal good-neighborly relations, based on the principles of international law and respect for international treaties which, however, Turkey seems determined to ignore.

"The Turkish Parliament, for example, unanimously adopted a resolution on the 8th of June 1995, which empowers the government to use military force in case Greece exercises its legal right to extend its territorial waters in accordance with the UN Convention on the Law of the Sea. Moreover, the Turkish government adopted the contents of this resolution in direct violation of the United Nations Charter, which forbids the use of force or the threat of the use of force in international relations.

"Even worse, in contravention of the Treaty of Lausanne and the Treaty of Paris, at the beginning of this year, Turkey laid claim on the Imia islets in the Aegean, which are Greek sovereign territory, and even supported this claim by military means.

"This sets a very dangerous precedent for the entire region. Turkey is attempting to subvert the territorial status quo established more than 70 years ago and backs her claims with the use of armed force. Furthermore, Foreign Minister Ms Ciller in February, in her capacity as prime minister, claimed that 1,000 Greek islands and islets in the Aegean are Turkish and that if Greece attempted to contest this 'fact', Turkey would consider it a casus belli. A few days later she raised the number to 3,000.

"Greece has repeatedly called on Turkey to have recourse to the International Court of Justice concerning the Imia islets. Turkey, on the contrary, has lately challenged Greek sovereignty, even over the inhabited island of Gavdos, southwest of Crete, in the Libyan Sea, and despite the outrageous nature of this claim, it has not withdrawn it unequivocally.

"We see that Turkey willfully violates the most basic principles of the international legal order and, far from exhibiting self-restraint, puts forth even more provocative claims against Greece. My country, on the other hand, not only scrupulously respects international law and treaties, but also demonstrates great self-restraint in her relations with Turkey. There is no better example of this than the fact that Greece has chosen not to react forcibly to the massive violations of Greek airspace and the constant over-flying of Greek territory on the part of Turkish warplanes. This responsible stance should not, however, be misinterpreted in any way. On the contrary, and despite the absence of any real will on the part of international community to uphold the principles enshrined in the United Nations Charter, Greece is absolutely determined to protect her sovereign rights by all legitimate means and the threat of force will not dissuade it from doing so.

"As to the Cyprus issue, it is widely admitted that the status quo is unacceptable. Nevertheless, no progress has been unfortunately achieved in the course over the last 22 years. Turkey, provocatively defying consecutive resolutions of the UN Security Council, is still occupying by force a considerable part of the island. At the same time it is flagrantly violating basic human rights and freedoms of the Cypriot people while proceeding to a systematic plundering of the island's cultural and religious heritage. Moreover, it continues to systematically promote the illegal and condemned practice of establishing settlers on the island.

"Time has come to reach a just and viable solution to the Cyprus problem based on the relevant UN resolutions and providing for a bi-communal, bi-zonal federation with a single sovereignty and international personality and a single citizenship, while safeguarding the independence and territorial integrity of the Republic of Cyprus.

The prospect of Cyprus joining the EU is indeed a new important development which creates conditions that should facilitate a comprehensive settlement of the issue. The period until the start of the accession talks should in no way be left unexploited.

"At the same time, the Greek government welcomes any new idea and initiative, whatever its origin may be, which would contribute to a solution within the framework of the UN resolutions. A basic factor for achieving a breakthrough is, in our opinion, the coordination of all initiatives by the UN Secretary-General and his special representative.

"Meanwhile, the tension lingering on the island involves serious risks and creates additional complications, which render the efforts for a settlement more arduous. Turkey and the pseudo-state, taking advantage of a peaceful demonstration by Greek Cypriots have proceeded a few weeks ago, with the active involvement of the extremist-terrorist Turkish group 'Grey Wolves', to the implementation of a meticulously prepared plan which was crowned by the murder in cold blood of two young Cypriots and the injuries sustained by many others, UN peace-keepers included."

"The aim was undoubtedly to demonstrate the existence of an alleged international boundary on the island. It was also to support the Turkish claim that the two communities cannot live peacefully side by side and that the presence of the Turkish occupation forces is therefore necessary for the protection of the Turkish Cypriot community. But the truth is that both communities can indeed co-exist peacefully. So, it was felt necessary to call in extremist elements from mainland Turkey in order to implement this scenario and to try to create mistrust between the communities.

"In the wake of those recent tragic developments we steadfastly believe that the adoption of President (Glafcos) Clerides' proposal for the demilitarization of Cyprus, a proposal whose importance has already been widely acknowledged, will decisively con tribute to the diffusion of tension and at the same time meet the security requirements of all communities living on the island.

"On a broader context, the search for a just and viable solution to this complex international problem requires decisiveness and perseverance. If the bi-communal dialogue is to have any chance of success, a minimum common ground is indispensable, based on the relevant UN resolutions. But if the other party does not show the necessary political will, the international community should at last live up to its political and moral responsibilities. It should take action without delay and try to convince Turkey to abide by international law and withdraw its troops from the island.

In referring to Athens' relations with its other neighbors, the Greek foreign minister stressed co-operation in establishing stability in the wider region.

"With regard to the Balkans, Greece's policy in the area is guided by the principles of maintenance of stability, peace and security, the inviolability of the internationally recognized borders and the full respect of human rights, including those relating to national minorities, in accordance with the relevant UN and OSCE principles.

"Greece supports also the establishment of good-neighborly relations and the development of close economic ties with and among all Balkan countries.

"At the same time, our systematic co-operation with the countries of the Balkan peninsula contributes to the achievement of their long-term goals of economic and political rapprochement with the European Union and its institutions. We fully support and actively promote the European orientation of these countries.

"Moreover, Greece has supported all international initiatives aiming at further promoting Balkan regional co-operation, such as the Conference of Ministers of Southeastern Europe, which convened this year in Sofia, and which will meet again in Thessaloniki, in June next year, the European "Royaumont" and the American "Southeast European Cooperative Initiative". We believe that these efforts in their complementarity contribute to the stability, security and prosperity of the area.

"In the context of regional co-operation I should also mention the Greek initiative for the trilateral meetings of the foreign ministers of Greece, Bulgaria and Romania, which took place at Ioannina, Greece on August 26, 1995 and after that in Varna, Bulgaria on March 16-17, 1996. The aim of these meetings is to bolster sub-regional co-operation mainly in the fields of transport, telecommunications and energy as well as the development of infrastructure.

"Greece has been one of the founding members of the Black Sea Economic Co-operation (BSEC). Recently it became member of the BSEC Parliamentarian Assembly (PABSEC). It participates actively in this initiative that encompasses countries from both the Balkans and the Black Sea area, which can make an important contribution to the development and stability of the wider region. An important achievement is, among others, the establishment in Thessaloniki of the BSEC Bank of Trade and Development which is expected to start functioning soon and contribute to the implementation of specific projects of great interest for the region."

Referring to Greece's relations with its Balkan neighbors, Mr. Pangalos said that with Albania, Greece "pursues actively the development of relations of good-neighborliness and co-operation in all fields, based on the respect of sovereignty and territorial integrity, as well as the full respect of human rights, including those relating to national minorities, in accordance with the UN and OSCE principles.

"The Greek minority in Albania constitutes a bridge of friendship and co-operation between the two countries. To this end, encouraging steps are undertaken by the Albanian government."

Turning to the countries of the former Yugoslavia, the Greek foreign minister said that "with regard to Bosnia-Herzegovina, Greece has fully supported the Dayton Peace Agreement and has actively participated in the efforts to fully implement it. Timely and full respect of this agreement is the best guarantee for the preservation of the integrity, sovereignty and multi-ethnic character of this Republic. The efforts of the international community to achieve peace in Bosnia must succeed. What comes first is the constitution and proper functioning of the joint organs of the republic in order to expedite the return to full normalization of life in Bosnia-Herzegovina. Greece established diplomatic relations with Bosnia-Herzegovina on 10/11/1995 on the occasion of a visit of the Greek foreign minister in Sarajevo and participates to the reconstruction plan of Bosnia-Herzegovina with $7 million.

"Greece expresses the wish that negotiations with FYROM under Mr. Vance's auspices on the issue of the name of that republic be finally met with success so as to open the way for a full normalization and a dynamic development of the relations of our two countries."

Moving on to the Middle East peace process, Mr. Pangalos said that "it is with shock that my government is following the latest dramatic developments in the West Bank and Gaza. We express our deepest sorrow for the deaths that have occurred and our grave concern about the future of the peace process.

"Greece urges all parties to demonstrate the utmost restraint and to refrain from any action which might lead to further escalation of violence in the occupied territories. In particular, they must step back from any action that is bound to rekindle deep-rooted sentiments of mistrust and enmity in both sides.

"There is no alternative for the peoples in the region other than a peace based on the principle - 'Land for Peace'. There is no alternative to the peace process. If this process stagnates, there is danger that it will unravel.

"There is an urgency for both parties to resume efforts to earnestly fulfill their agreed obligations. Greece calls on the parties to resume negotiations immediately, on the basis of the principles already accepted by them in the Madrid and Oslo Agreements. We consider of the utmost importance that the Israeli-Palestinian Interim Agreement is fully implemented, that the talks on the final status in the Palestinian territories including Jerusalem are speedily concluded, together with the solution of the two outstanding problems, namely security for all and social and economic development."

Touching on other issues, Mr. Pangalos spoke of the economic problems being faced by the organization, saying that Greece recognizes the need for the organization "to improve its capacities and grant greater functions, as well as the necessary means" because the need for the world organization is growing, not shrinking."

The Greek foreign minister said that "year by year, we move closer to threatening demographic, socio-economic and ecological thresholds. The only chance we have in dealing with trans-national problems is to work out trans-national responses. We need to co-operate constructively towards common ends."

Mr. Pangalos noted that Greece has "responded positively to the Secretary-General's appeal and decided to increase its annual contribution to the peace-keeping operations' budget". As a result, our contribution will increase by 500 per cent by the year 20 00, when the process of gradual relocation will have been completed."

The Greek foreign minister illustrated the difficulties surrounding UN peace-keeping operations through the Cyprus issue.

"The case of Cyprus is a striking example of the inability of the international community to ensure implementation of clear-cut United Nations resolutions and to tackle the problem of the on-going occupation of a member-state by another, following an ac t of military aggression," he said.

"To mention just another example, Greece is threatened with war in case it applies the provisions of the Convention of the Law of the Sea, which has been signed by all member-states, except for the one that made it clear that it would not hesitate to us e force for 'the maintenance and defense of its vital interests'."

Turning back to the Middle East region, Mr. Pangalos urged "the implementation of Security Council Resolution 425 on Lebanon.

"Greece, who has actively participated in the Middle East Peace Process since the latter's beginning in Madrid, will continue to offer every possible support and assistance to the bilateral and multilateral negotiations towards a comprehensive, final an d just peace."

Concluding his speech, Mr. Pangalos said that "on the eve of the third millennium, an affirmation of peace and cohesion among peoples must, more than ever before, constitute the prime legacy to bequeath to future generations."

[2] Evert rejects idea of interim ND president; Souflias agrees to co-operation with Manos

Recently resigned main opposition New Democracy party leader Miltiades Evert yesterday rejected the idea of an interim leader, saying the proposal not only conflicted with the party's charter but also created problems in its democratic institutions given that the leader of the party is also leader of the main opposition.

"No solution for the election of a party president can have a provisional character ... Nor is it possible for any solution implying the abolition of elected party organs to be accepted ... Any effort for finding a commonly acceptable solution is to the party's interest and the country, and we must support it. What has priority is the unity of the party," he said.

While Mr. Evert rejected the interim leader idea, other political developments within ND over accession to the party's helm accelerated yesterday as ND deputy and former minister George Souflias replied favorably to a proposal for "common co-operation" by another top ND cadre and deputy, Stephanos Manos. Both men, along with former minister and ND deputy Dora Bakoyianni, the daughter of honorary ND president Constantine Mitsotakis, have declared their candidacy for the main opposition's leadership, following the party's election defeat last Sunday and the same-day resignation by Mr. Evert.

Mr. Souflias, a former education minister, added that he has no essential differences with the proposal for the party's operation, and expressed his belief that changes allowing the party to operate effectively are needed.

He said he will meet with Mr. Manos, a former national economy minister, today in order to discuss the proposal, stressing that "it is necessary for the election scene to be clarified and Mr. Evert must clarify his intentions as quickly as possible," in reference to reports that the latter may vie again for ND presidency.

Additionally, ND Vice-President Ioannis Varvitsiotis also met with Mr. Mitsotakis yesterday evening, although he declined to comment on the content of his meeting with the former premier.

Following the one-and-a-half-hour meeting, Mr. Mitsotakis called on reporters "not to fabricate scenarios concerning me," adding that reports about his intentions concerning ND's leadership are untrue.

Concerning his proposal for co-operation with Mr. Souflias, Mr. Manos, who was the first to announce his candidacy, called for the two top ND cadres to unite their forces based, however, on three conditions. He requested introduction of the institution o f a shadow cabinet; for a party president's term to be limited to three years and to proceed with reforms within the party so that it may function on the basis of merit.

Mr. Manos added that he will ask Mr. Souflias to decide on who will head their joint effort for the leadership.

In addition, the former national economy minister criticized Mr. Evert.

"Over the past few days, despite the recent popular mandate, signatures are being collected under pressure, so that Mr. Evert can be re-elected to the party presidency. I believe that the contention of the presidency by the two sides which have starred in the civil war of the past six-and-a-half years is leading convincingly to a further shrinking or even a split of the party," Mr. Manos said.

In a related development, ND deputy Yiannis Lambropoulos sent a letter to Mr. Evert requesting him not to run for the party leadership.

"Your candidacy or that of Mr. Mitsotakis will be catastrophic for the party today, and it would be an untrustworthy and laughable act," the deputy said.

In his letter, Mr. Lambropoulos suggested that the best possible solution to the issue would be the temporary unanimous election of a leader who would not be a candidate at the party congress, which would elect the permanent leader.

On another front, Mr. Varvitsiotis continued his exploratory contacts aimed at gaining approval for his election as a "mutually acceptable" interim president to lead the party at an upcoming party congress.

According to reports, Mr. Varvitsiotis aims at smoothing relations between Mr. Evert and Mr. Mitsotakis over the issue of who will lead the party.

The ND Vice-President apparently received Mr. Evert's approval yesterday morning and later had a meeting with senior member Tzannis Tzannetakis and was expected to have telephone conversations with the three candidates who have so far declared they will contest the leadership.

Associates of Mr. Evert said that in the case that there is no agreement on Mr. Varvitsiotis, then Mr. Evert would review his decision and announce that he is a candidate for the leadership of the party.

According to party sources, some 72 signatures calling for Mr. Evert's re-election as president have already been collected.

The eventuality of an Evert candidacy, however, has brought sharp reaction from the three candidates.

Ms. Bakoyianni's supporters said that Mr. Evert had "no right" to proceed with "his unacceptable behavior" and re-contest the leadership.

Mr. Manos, according to his associates, stressed that the Greek people had given the verdict recently and that he would continue his efforts to prevent the break up of the party, a position Mr. Souflias agreed with.

Supporters of Mr. Evert, though, stressed that there was no danger of the party splitting, which Mr. Mitsotakis also agreed with.

Asked if he feared a break-up of ND, Mr. Mitsotakis said: "I have told you that when I have something to say, I will say it. The only thing I want to stress is that I should not be implicated in scenarios created by the same people who write them. From the first night of the elections, I made a statement and - since then - I have not spoken. When I believe it is necessary, I will speak and, as you know, I have the courage of my opinion to speak bluntly".

[3] Greek general staff chief of five-day official US visit next week

National Defense General Staff Chief Athanasios Tzoganis will pay a courtesy visit to the United States from Sept. 30 to Oct. 5, at the invitation of US Joint Chiefs of Staff head Gen. John Shalikashvili.

During his visit, Gen. Tzoganis will meet with the US Pentagon's top military and political leadership, with whom he will discuss issues of mutual military concern.

He will be received by Gen. Shalikashvili during a ceremony at the Pentagon on Tuesday. A working lunch and official dinner will also be given in his honor the same day. Gen. Tzoganis is also scheduled to lay a wreath at the Tomb of the Unknown Soldier in Arlington, Va., as well as meeting with several other top US military commanders and touring three military installations in the eastern US.

On Wednesday, Athens' ambassador to Washington Loukas Tsilas will host a reception at the embassy in honor of the visiting Greek military leader. In addition, Gen. Tzoganis will meet senior members of the expatriate Greek community.

Meanwhile, government spokesman Dimitris Reppas yesterday described Gen. Tzoganis' forthcoming visit and meeting with his US counterpart as a "courtesy call".

Asked whether the Greek general staff chief would discuss possible US initiatives concerning Greek-Turkish relations and the Cyprus problem, Mr. Reppas replied:

"From time to time, reports have been published concerning various initiatives, but the government is not aware of anything specific. Therefore, Athens will wait and see," he said.

[4] Pangalos reject prospect of 'package solution' for Greek-Turkish differences, Cyprus issue

Foreign Minister Theodoros Pangalos yesterday flatly rejected the notion that Greek-Turkish differences and the Cyprus problem could be the subject of a package solution akin to the Dayton peace accord, as referred t o by US President Bill Clinton's national security adviser on Thursday.

"I cannot comment on statements which I have neither read or listened to," he said in reference to statements by National Security Adviser, adding:

"The Dayton-type process came to complete a process of armistice between warring parties. It had been preceded by a war, and there were faits accomplis. It therefore bears no relation to the existence of problems which Turkey creates in the Aegean and t he continued occupation of Cypriot territory by Turkey. They are completely different cases, and anyone who has elementary knowledge of the history of relations between states, of diplomatic history and international behavior understands this," he said.

"Therefore, there can be no joint negotiation on Cyprus and Greek-Turkish relations. "Cyprus must discuss its problem with Turkey, while the Aegean is an issue between Greece and Turkey, because Ankara raises its known claims. How can we, for instance, imagine the role of Cyprus in a discussion on the Aegean?," he continued.

"Neither Mr. (US Secretary of State Warren) Christopher nor any of the other American officials I met during my stay here said anything in that direction. I don't know if someone expressed it or someone imagined it, it is a tragicomic thought, not a serious idea.

"And I say this because during the pre-election period a particular opposition party, which was severely punished by the Greek people, had made a basic theme of its pre-election campaign the idea that the government had accepted such a process regarding which, you are now hearing the position I am unequivocally taking, without any pre-election considerations in mind."

[5] Ciller statements

Meanwhile, Turkish Foreign Minister Tansu Ciller yesterday expressed a view that resolution of Greek-Turkish differences would become possible after the renewal of PASOK's four-year term in Greece.

"There are many hopes that after elections in Greece, we shall finally meet in order to solve our problems," she told reporters at the National Press Club in Washington late Thursday night.

Ms. Ciller reiterated the position expressed before the UN general assembly, that referral of Ankara's dispute with Greece regarding the latter's sovereignty over the Imia islets in the eastern Aegean to the International Court at the Hague should be accompanied by the issue of the demilitarization of the Greek islands in the eastern Aegean, claiming Greece was violating international treaties.

"As regards Kardak (Imia), the reason we are opposed is not because we don't want to refer the issue to the International Court, but what we are saying is that there are other international agreements which are being violated. All these islands and rocks in the Aegean are militarized by Greece contrary to international treaties. What we are saying is that we must refer all these issues to the International Court at the Hague, as they are issues which, to a large extent, are inter-connected," she said.

She divulged that she had discussed with US officials the "need" to solve all Greek-Turkish differences and Cyprus as a package.

"I have discussed this issue with many government officials in the United States and outside it. It is now time for a move. The peace process between Turkey and Greece must proceed," she said.

[6] Emergency aid approved to deal with latest Middle East unrest

Alternate Foreign Minister George Papandreou approved the allocation of $30,000 to Palestinian self-rule area authorities to help tackle pressing needs stemming from the latest unrest in the West Bank, Gaza Strip and Jerusalem.

Greece will also send medical and pharmaceutical supplies to the area in the next few days.

[7] Milutinovic sends congratulations to Pangalos

Foreign Minister Theodoros Pangalos received a message of congratulations from his Yugoslav counterpart Milan Milutinovic on the occasion of his re-appointment as foreign minister.

"I am certain that our future talks in Belgrade will constitute a force for the further strengthening of our traditionally friendly relations and to promoting fertile co-operation between the Federal Republic of Yugoslavia and the Hellenic Republic, to benefit our peoples and in the interests of peace and stability in the region," Mr. Milutinovic's message read.

[8] Simitis says dialogue with centre-left necessary for Greece

Prime Minister Costas Simitis announced yesterday that dialogue with centre-left forces would be pursued "because it was necessary for Greek society and for the left".

The premier made the statement at a press conference following his chairing of a ruling PASOK Executive Bureau meeting.

Dialogue, he noted, would take place between citizens within society, and that no party could check or impose it.

Mr. Simitis said last Sunday's election win was "a great victory for PASOK" but that at the same time, he and his associates were not celebrating because a significant number of traditional PASOK voters opted for other parties, adding that he was confident the ruling party could win these voters back.

The new government will present its policy statement in Parliament on Oct. 10, with a vote of confidence scheduled two days later.

Earlier, the PASOK president and the executive bureau issued a message stating that a "new page in the country's political life opened on Sept. 22," in reference to the election victory.

"The vote of the people provides Greece and Hellenism with a historic opportunity to fulfill their historic role, and to PASOK, the possibility of contributing to the hegemonization of progressive concepts again", adding that the party ratified a progressive turn in Europe "for the second time."

Mr. Simitis noted that PASOK should be close to the people so as to address their "immediate, pressing and daily problems, conceding that "a considerable section of our political and social wave" was led to "a critical position and to a vote of protest or refusal against us."

He added that PASOK's focal political target should be "a radical restructuring of all our forces, without exception, into a modern, renewed and strong PASOK."

Mr. Simitis concluded: "The government must have close contact with the daily problems of the Greek people and its policies should more markedly bear the stamp of PASOK's social sensitivity and serve the values and ambitions of a socialist movement."

[9] European news agencies conclude meeting

The general assembly of the European Alliance of News Agencies, which concluded its meeting here yesterday, adopted a series of decisions governing the obligations and rights of news agencies.

The decisions relate to directives of the Europarliament and the European Union Council of Ministers on these rights, and take into account European law and the acquis communautaire.

The directives provide general guidelines for the operation of news agencies but impose no censorship.

The meeting calls on European news agencies and their respective countries to adjust to the directives, in view of next year's discussions among EU member-states for Union enlargement and the future of the 15-member group.

According to reports, ad hoc committees will monitor the moves news agencies make in their bid to comply with the letter and the spirit of the general assembly directives. Furthermore, special reports will be prepared and submitted to the assembly on the progress made by news agencies, and states themselves in promoting these directives.

The general manager and editor-in-chief of the Norwegian News Agency, Thor Viksveen, has been appointed as special ombudsman to oversee adjustments news agencies may have to make to comply with the directives.

The next assembly meeting will take place in Geneva in September 1997 and European news agencies are expected to outline their efforts to uphold the agreed directives.

The Athens News Agency was represented by ANA General Director Andreas Christodoulides, while the Cyprus New Agency was represented at the meeting by its director, Andreas Christophides.

[10] Reppas defends Greek human rights record

"In Greece there is a democratic system of government and no restrictions whatsoever are imposed," government spokesman Dimitris Reppas said yesterday commenting on a European Court of Human Rights ruling on the religious rights of Jehovah's Witnesses.

"It would be a good thing if the freedom existing in Greece existed also in all countries," Mr. Reppas said, adding that the government was not considering any legislative changes.

The court Thursday ordered Greece to pay four million drachmas in legal costs to four Jehovah's Witnesses on the grounds that the state's restrictions on opening places of worship violated their freedom of religion.

[11] Clothing exhibit set for Brussels next March

The first European sub-contractorship exhibition on textiles and the clothing industry will take place in Brussels from March 20-22, 1997.

The exhibition is the result of initiatives undertaken primarily by three European Union countries - Italy, France and Greece.

More than 250 exhibitors from 20 EU, eastern European and Mediterranean countries are expected to participate with the basic aim of attracting buyers from central Europe.

Visitors invited to attend the exhibition include department stores, producers of clothing from central and southern Europe, which are in search of associates, representatives of the media and EU representatives.

Greece will be represented by clothing manufacturers and industrialists able to participate in the sub-contractorships sector and possess a modern conception and strategy of international markets.

[12] 1997 budget 'difficult', Papantoniou says

National Economy and Finance Minister Yiannos Papantoniou yesterday described the preparation of the 1997 state budget as "difficult".

Mr. Papantoniou was speaking to reporters after the first meeting at the finance ministry on the preparation of the new budget.

"The meeting was of a purely briefing nature concerning the course of legislative tasks and the preparation of the 1997 budget which is a difficult one," Mr. Papantoniou said. He declined to make any comment on "the substance" of the issue in view of the new government's policy statements next week and "the procedure for the preparation of the budget which, by its very nature, is confidential".

Asked to comment on reports that multinational BP had evaded taxes and would be sanctioned by the tax department, Mr. Papantoniou said the matter was in the hands of the court.

[13] Current account deficit rises in Jan.-May period

Greece's current account deficit recorded a marked increase in the first five months of the year, due to an increase in the trade deficit, and a fall in the invisibles' surplus, increasing to 2.7 billion dollars in the January to May period this year, up from 1.98 billion in the same period last year.

During this year's first five-month period, the trade deficit rose by 416 million dollars, while the invisibles surplus decreased by 292 million dollars.

By contrast, the net private capital inflow from abroad increased from 1.75 billion to 3.06 billion dollars.

In the same period, net public borrowing appears negative, as the servicing of older debts exceeded new borrowing from abroad.

As a result of these developments, the country's exchange reserves stood at 12.89 billion dollars at the end of May, rising to 16.45 billion at the end of August.

End of English language section.