Athens News Agency: Daily News Bulletin in English, 99-07-02

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] OA unions and government still locked in dialogue over future of airline

[02] Stephanopoulos touts economic cooperation in talks with Lithuanian leadership

[03] Athens calls latest Greek-Turkish contacts a `first step`

[04] "Common demarche by Greek-Amer ican to US government this year

[05] Contract signed with Ericsson for early warning systems

[06] Greek, European attitudes over recent Kosovo crisis examined

[07] Greece, Cyprus sign customs agreement

[08] Greece sent to Eurocourt over EU citizens' access to public sector posts

[09] Exporters welcome choice of HQ for Balkan reconstruction group

[10] Stocks rise following markets abroad

[11] New airline takes to the skies

[12] ANEK launches new passenger ship

[13] Unifon to hold share offer for bourse entry

[14] Marfin announces results

[15] Athens Foreign Exchange

[01] OA unions and government still locked in dialogue over future of airline

Athens, 02/07/1999 (ANA)

Later yesterday, Mr. Lynch appeared before the Parliament's committee on Public Utilities and Enterprises (DEKO), which approved his appointment.

At a meeting with Transport minister Tasos Mandelis, workers' representatives called for legislative arrangements securing present labour regulations and jobs in the ailing national carrier.

According to reports, the minister insisted the government had no intention to let the airline shrink, while pointing out that it was competitors who might want to see such a development.

He urged unions to support efforts to take OA out of the present impasse, providing assurances, in line with provisions in the contract assigning management to British Airways' subsidiary Speedwing for 30 months, that wages would be determined according to collective labour agreements, and that the new managers would have to respect Greek legislation.

Union representatives, who announced a new 24-hour strike on Wednesday, will be again meeting Mantelis and National Economy Minister Yiannos Papantoniou on Monday.

The government has repeatedly said the assignment of management to Speedwing is the carrier's "last chance," but apparently without much success in convincing the unions, who describe the agreement as "colonial- type and the product of intransparent and suspect negotiations". Reports say they are preparing to take the issue to the courts.

According to company officials, OA last week was losing 5,000 passengers daily due to a go-slow by ground technical staff that had delayed the repair of seven aircraft. Speaking to the parliamentary committee, Mr. Lynch said that during the first phase of his work in OA, which will last 13 weeks, he will evaluate the existing restructuring plan and only then will he present the new plan.

During that time, he said, the value of the company would be assessed, along with the possibility for BA to purchase stock in OA, as per contract option.

Furthermore, Mr. Lynch said that the dire state of the airline's fiscal problems can be reversed, stressing that the company has greater possibilities to recover if it forms a partnership with a larger airline.

He added that the future of the employees of the company is secure when a company expands and develops, and that the numbers of existing personel "is about right."

In statements earlier this week, the airline's new managing director, Rod Lynch, stated he viewd the new post as a "challenge".

"I am looking forward to offer my services to OA, in order, together with my colleagues, to turn into one of the best airlines," he said.

Athens News Agency

[02] Stephanopoulos touts economic cooperation in talks with Lithuanian leadership

VILNIUS, 02/07/1999 (ANA - N. Megadoukas)

The Lithuanian president called on Greek business people to invest in his country, saying the institutional framework which will facilitate these investments is improving continuously, underlining his country's desire to join Euroatlantic structures which he said will strengthen its security and, consequently, every business activity.

Mr. Stephanopoulos said his three-day visit is very important for strengthening relations between Greece and Lithuania in the economic sector, and underlined Greece's economic achievements. He also expressed certainty that Greece will succeed in entering Economic and Monetary Union (EMU).

Addressing the Lithuanian Parliament earlier, Mr. Stephanopoulos criticised what he called the "powerful of the earth" of sidestepping the supreme principles which must govern relations between states for their own interests.

The Greek president said one can easily ascertain that interests and major principles do not always coincide and that, what is worse, when they clash economic or other interests do not back down before principles as they should but, unfortunately, these principles and ideas back down before the interests.

Other topics of discussion between the two presidents were international issues, with an emphasis on the situation prevailing in the Balkans, and on the Baltic country's relations with its neighbouring countries, especially Russia and Belarus.

In a statement, Mr. Stephanopoulos said Athens and Vilnius face no political problems in relations between them, adding that the presence of a Greek business group (aacompanying him on his visit) in Vilnius will allow for the further strengthening of bilateral relations in the economic sector. He reiterated that Greece supports Lithuania's bid to join the European Union and NATO.

Agreements : In a related development, following the meeting between the two presidents, Deputy Foreign Minister Grigoris Niotis signed a bilateral agreement with Lithuanian Foreign Minister Saudargas on the return of illegal immigrants to their original country of en try.

Referring to the prospects of European Union accession, Mr. Stephanopoulos said it should not merely limit itself to common economic policy and monetary union but should undertake a wider role which suits it in international affairs.

He also focused on the situation prevailing in the Balkans, underlining Greece's role which, as he noted, hopes to contribute substantively to the reconstruction of Yugoslavia in the framework of the EU, as well as with its own initiatives.

Later in the evening, the Lithuanian president hosted an official dinner in honour of his Greek counterpart. In a brief speech, Mr. Stephanopoulos criticised Turkey over the position it is observing regarding problems in the Aegean and Cyprus.

Finally, Mr. Niotis and other Greek officials met with several Greek expatriates living in Vilnius.

Today, President Stephanopoulos will receive Lithuanian Prime Minister Rolandas Paksas, meet with representatives of the ethnic Greek community in the country and will give a joint press conference with President Adamkus before leaving for Athens.

Athens News Agency

[03] Athens calls latest Greek-Turkish contacts a `first step`

Athens, 02/07/1999 (ANA)

"There should not be either great optimism or great pessimism," acting government spokesman Yiannis Nikolaou told reporters.

Athens and Ankara on Wednesday agreed to hold talks on a foreign ministry senior officials level regarding issues relating to the economy, trade, environment, tourism, as well as combatting organised crime, illegal immigration, drugs and on law and order issues.

FM George Papandreou made the announcement after two-hour talks with his Turkish counterpart Ismail Cem, on the sidelines of a UN-sponsored meeting on Kosovo.

Mr. Papandreou said Greece and Turkey had also agreed on greater cooperation - with the cooperation of their business communities - at a multipartite level, particularly in the Balkans and the Black Sea.

The issue of terrorism was not discussed but briefly referred to during the meeting.

Greece has said that it will approach the issue of terrorism in the framework of existing treaties, multipartite cooperation and its commitments at the Council of Europe for human rights and democratic processes.

Mr. Papandreou said in New York that this did not rule out a discussion beginning on the issues related to organised crime, drug trafficking, illegal immigration and the issue of terrorism.

"There's a difference of opinion between Greece and Turkey over this issue and the framework in which our country can discuss the issue is well-known, " Mr. Nikolaou reiterated yesterday.

Speaking about the general state of bilateral relations, he said Greece's position had not changed. "Greece continues to believe in a step-by-step rapprochement in relations between the two countries," he said. "If Turkey believes there are issues which are unsettled it can at any time seek recourse to the International Court of Justice."

Reactions : A statement from main opposition New Democracy party yesterday said ND favoured the normalisation of Greek-Turkish relations, but said dialogue between Athens and Ankara had to take place "under certain conditions".

"Ankara must cease to make territorial claims, abandon the tactic of threatening force and show respect for international law and existing treaties," a statement from ND spokesman Aris Spiliotopoulos said.

"These conditions are not being met," he added. "Combined with the ineffectiveness and concessions of the government, there is concern that we are slipping into complications that bode dangers for national interests."

He said an improvement in bilateral relations would be seen when Ankara changed its stance on the Cyprus issue and contributed to a final settlement that would use UN resolutions as its basis, as recommended recently by the G8.

Former ND prime minister Constantine Mitsotakis said the government was right to begin dialogue with Turkey but stressed the need to clarify some "basic issues." "For dialogue to be effective, it must be conducted in a specific framework," he said.

He referred to a 1992 meeting of political party leaders in which all decided that dialogue should proceed on the basis of mutual respect, territorial integrity, and of respect of bilateral agreements signed and the principles of international law.

Turkey then accepted those principles and it is on this basis that the then- government discussed the signing of a good-neighbourliness agreement, he said.

Mr. Mitsotakis added that the present conjuncture favoured a clarification on Ankara's part of its continued claims of "grey zones" in the Aegean and disputing of Greek sovereignty of a number of rocky outcrops.

"The government cannot ignore these principles and the discussion on these can not be undertaken at the level of secretaries-general but of that of ministers and prime ministers," he said.

The Coalition for the Left and Progress (Synaspismos) in a press release supported what it called a defusion of tension and the start of dialogue between Greece and Turkey.

Synaspismos also noted that it has always been in favour of a Greek-Turkish dialogue.

On his part, Democratic Social Movement (DHKKI) leader Dimitris Tsovolas referred to the slipping into an "unacceptable and unconditional dialogue with Turkey under the pressure of Washington and other major western powers.

Athens News Agency

[04] "Common demarche by Greek-Amer ican to US government this year

NEW YORK, 02/07/1999 (ANA - M. Georgiadou)

He was speaking after a meeting here with Foreign Minister George Papandreou.

"We, here in America, are doing everything possible to advance the Cyprus issue and the other (Greek) national issues," Spyridon said.

He said the Archdiocese was gathering together the Greek-American forces, via the HALO organisation set up by the Archdiocese a year ago, "and for the first time this year, all the Greek-American organisations, with the coordinating assistance of the Archdiocese, will lodge a joint demarche with the US president on the Cyprus issue".

Spyridon said following the normalisation of the Kosovo issue, the Cyprus problem must "regain its rightful priority" and the importance placed by the international community on its resolution must become manifest.

The Archbishop stressed the US Archdiocese's full support for the Greek government in its "major effort for reconstruction of the Balkans", while he briefed Mr. Papandreou on the Archdiocese's financial support to the Serbian Church - totalling some US$ 135,000 to date.

Spyridon further congratulated Mr. Papandreou for his personal contribution to seeking a solution of the Kosovo problem, and stressed the Greek- American community's feelings of pride and satisfaction over the Greek government's stance throughout the dur ation of the Kosovo crisis.

Mr. Papandreou, in New York for a UN-sponsored meeting on Kosovo, briefed the Archbishop on the UN meeting and on his talks on the sidelines with Turkish Foreign Minister Ismail Cem.

Athens News Agency

[05] Contract signed with Ericsson for early warning systems

Athens, 02/07/1999 (ANA)

The first Erieye/EB145H will be delivered in 52 months' time. The final Erieye is scheduled to be delivered in 58 months' time.

In the intervening period, the air force will be provided with two Erieye/Saab340H early warning systems belonging to the Swedish armed forces.

These will be delivered in 12 and 18 months' time from the signing of the contract.

The cost of the programme totals 174 billion drachmas. Total offset benefits amount to 149.4 per cent, while the nominal value of the joint production, taking into account offset benefits, comes to US$123 million, or 21 per cent of the total value of the programme.

Eight Greek companies will be involved in the manufacture of the systems and will receive the benefit of technological know-how.

The Erieye radar system will be fitted on the Brazilian-made twin-propeller Embraer 145 aircraft. Also involved in the manufacture of the radar systems is the French multinational Thomson.

Defence Minister Akis Tsohatzopoulos, speaking at the signing ceremony, said the new system was an important technological development that would provide the Greek armed forces with unlimited abilities.

Greece chose Ericsson in late 1998 to provide it with the four airborne radars, part of the multi-million-dollar armaments programme currently in progress.

Athens News Agency

[06] Greek, European attitudes over recent Kosovo crisis examined

Athens, 02/07/1999 (ANA)

"One is based on the reformist logic and has its roots in the Enlightenment, and the other is based on the logic containing elements of the Balkan Ottoman period, Orthodox tradition and on a strong preference for the prevalence of state power. It is a introvert mentality, one of a society under siege...identifying with social groups or peoples understood as the underdog in history, a logic with a clearly anti-western colour.

"From this point of view, it is understood why the overwhelming majority of the Greek people identify with the Serbs while also endorsing a government policy which, walking on a tightrope, aimed to maintain its presence in the EU and NATO," he said during a discussion entitled "Kosovo, human rights and European intellectuals," organised by the Greek Association for the Rights of Man.

Dimitris Christopoulos, secretary-general of the association disagreed with the idea that Greece has always been on the side of the underdog.

"Those now on the offensive also believe themselves to be on the side of the underdogIThe underdog is not always the same, it changes according to the point of view from which we approach a conflict in which lives and rights are at stake. We are credible only in so far as we always defend different underdogs with the same strength. Otherwise, we are either biased in favour of our friends, or give account to our leaders, or are simply manipulated by the media," he said.

Pierre Vidal-Naquet, a noted historian of antiquity and a human rights proponent, pointed at a "hardline" Yugoslav President Slobodan Milosevic and a "corrupted" Croatian President Franjo Tudjman as the two individuals primarily responsible for the dissolution of Yugoslavia.

Referring to his own opposition to the bombing of Yugoslavia, Mr. Naquet said the NATO attack failed to protect Kosovar Albanians and even worsened their situation.

"Beyong demonisations, the only way out of the problem is the achievement of peace in order to create a new Yugoslavia," he said.

One-time revolutionary Regis Debray stated that he was neither against or in favour of the Serbs, but against nationalism, adding that he had opposed this war because the United States had underrated Europe and because the United Nations had been relega ted to the sidelines, something he called "degrading".

Athens News Agency

[07] Greece, Cyprus sign customs agreement

NICOSIA, 02/07/1999 (CNA/ANA)

The agreement was signed by Cyprus' Finance Minister Takis Klerides and Deputy Finance Minister George Drys, who arrived here yesterday for a three- day visit.

Speaking to the press, Mr. Klerides said the agreement will define a clear legal framework for the implementation of cooperation between customs of the two countries to fight illegal activities, such as tax evasion and smuggling.

The agreement will also facilitate the movement of passengers and goods between the two countries, he added.

Under the agreement, Greece will assist Cyprus in its process to harmonise with the acquis communautaire, Mr. Klerides said, adding it also includes cooperation in customs training.

On his part, Mr. Drys said the agreement "will strengthen economic relations between the two countries" and stressed Greece's willingness to support Cyprus in its European Union course.

Earlier yesterday the Greek deputy minister was received by President of the Republic Glafcos Clerides.

Mr. Drys said trade between the two countries rose by 10 per cent in 1998 and expressed hopes for a higher increase this year.

"More and more Cypriot businesses expand in Greece, particularly in banking, the services sector and hotels," he noted. Cyprus, along with Estonia, Poland, Hungary, Slovenia and the Czech Republic began substantive accession negotiations with the EU in November 1998.

Athens News Agency

[08] Greece sent to Eurocourt over EU citizens' access to public sector posts

BRUSSELS, 02/07/1999 (ANA - M. Spinthourakis)

With its recourse, the Commission requests a daily fine of 57,400 euros imposed on Greece for as long as it fails to harmonise its legislation with the rest of the EU.

The European Court had convicted Greece three years ago for not permitting access to certain posts in the public sector for citizens from other member- states, such as at universities.

Athens News Agency

[09] Exporters welcome choice of HQ for Balkan reconstruction group

Athens, 02/07/1999 (ANA)

The group said in a statement that choice of the venue was a success for the government.

The northern port city would profit from the arrival of capital, products, services and human resources from the European Union and NATO member countries en route for the Balkan countries destined to receive aid, the statement said.

In addition, basing the organisation in Thessaloniki would attract international media reporting the reconstruction drive.

Finally, Greek businesses would have easy access to information on the projects.

Infrastructure that was needed to handle the influx either was in place or being built. Outstanding projects should be accelerated, the statement said.

Athens News Agency

[10] Stocks rise following markets abroad

Athens, 02/07/1999 (ANA)

Traders said a significant decline in the inflation rate in June was also a boosting factor.

The general index ended 2.31 percent higher at 4,124.79 points. It stands now only 82 points below its record close of 4,206.76 on May 21.

Turnover was 153.893 billion drachmas with 25,948,236 shares changing hands.

The banks and construction sectors outperformed the market ending 2.67 and 6.63 percent higher.

Other sector indices ended as follows: Leasing (+2.07 pct), Insurance (+0.67 pct), Investment (+4.53 pct), Industrials (+1.18 pct), Miscellaneous (+2.21 pct) and Holding (+2.92 pct).

The parallel market index for smaller capitalisation stocks rose 0.55 percent while the FTSE/ASE 20 index for heavily traded stocks and blue chips ended 2.72 percent higher at 2,433.26 points.

Broadly, advancers led decliners by 213 to 78 with another seven issues unchanged.

Ergo Invest, Piraeus Bank and Hellenic Telecoms were the most heavily traded stocks.

Ergobank, Piraeus Bank, Hellenic Telecoms and National Bank led the day's turnover.

A total of 33 issues ended at the day's 8.0 percent limit up, while Aeoliki ended at the day's limit down.

National Bank ended at 21,010 drachmas, Alpha Credit Bank at 21,250, Ergobank at 33,800, Ionian Bank at 16,255, Titan Cement at 29,430, Hellenic Petroleum at 2,900, Intracom at 18,980, Minoan Lines at 5,970, Panafon at 7, 780 and Hellenic Telecoms at 6,8 50.

Bond prices end flat after rally : Bond prices in the secondary market gained around 100 basis points in early trade yesterday on a 0.25 point US interest rate cut, but later slumped to the previous day's levels on fears that inflationary pressures have yet to abate in the US.

Electronic trade totalled 100 billion drachmas from 19 billion drachmas a day earlier and 36 billion drachmas on Tuesday.

More sellers appeared after the close of electronic trade at 5 p.m., taking prices down further.

The ten-year bond showed a yield of 6.13 percent from 6.10 percent in the previous session and 6.15 percent on Tuesday.

The yield spread over German bunds was 158 basis points from 160 points a day earlier and 164 basis points on Tuesday.

At the central bank's daily fix, the central intervened to support the drachma/euro parity, selling around 40 million euros.

The euro was set at 324.950 drachmas from 324,720 drachmas in the previous session.

Athens News Agency

[11] New airline takes to the skies

Athens, 02/07/1999 (ANA)

The new airline, which is based in Athens, is owned by publisher and entrepreneur Thomas Liakounakos, whose publications include the Kerdos financial daily.

Axon has already signed cooperation and technical support agreements with Olympic Airways and Hellenic Aerospace Industry.

Its fleet includes two new Boeing 737-700 jets with 149 seats each, named George Seferis and Maria Nefeli after a poem by Odysseas Elytis.

Axon Airlines plans to raise its share capital by 30 million US dollars by the end of 1999. It intends to purchase one more Boeing 737-700 jet and three Boeing 717-200s by May next year.

In-flight services will include a library of Greek literature and poetry in Greek and foreign languages for passengers to browse through during the flight.

Athens News Agency

[12] ANEK launches new passenger ship

Athens, 02/07/1999 (ANA)

The 14 billion drachma passenger and car ferry, named the Sofocles Venizelos, was built in Japan's Mitsubishi yards in 1990 and refurbished in Greece's Perama shipyard for 3.5 billion drachmas.

The vessel carries 1,600 passengers and 1,100 cars or 120 trucks, has 650 beds and a speed of more than 25 knots.

Among officials attending a presentation of the ship was Merchant Marine Minister Stavros Soumakis.

Athens News Agency

[13] Unifon to hold share offer for bourse entry

Athens, 02/07/1999 (ANA)

The company is issuing four million new shares at 6,500 drachmas each.

After the share offer, 25 percent of the company's stock will be publicly owned.

The offer's main underwriters are National Bank of Greece and Alpha Credit Bank. Its adviser is Alpha Finance, a member of the Alpha Credit Bank Group.

Unifon is the main commercial associate of listed Panafon, one of the country's three mobile phone operators.

It hopes to tap the market for 26 billion drachmas in order to finance its expansion plans.

The company's largest single project is to develop its e-motion chain of retail stores and acquire other retail chains, budgetted at nine billion drachmas.

Unifon's turnover in 1998 was 114 billion drachmas and pre-tax profits totalled almost three billion drachmas.

The company's main shareholders are Panafon, Info-Quest, Marinopoulos Bros. and two individual shareholders. Corinth Pipeworks gets okay for share capital rise Corinth Pipeworks S.A. yesterday secured shareholder approval for a share capital rise of 8.85 billion drachmas.

The new funds will help to fund an investment plan budgeted at 33.7 billion drachmas that already is underway.

Under the plan, new production units will be built in the Thebes industrial zone.

The company is also opening three offices in Europe, the US and Middle East to aid distribution of its exports.

Athens News Agency

[14] Marfin announces results

Athens, 02/07/1999 (ANA)

The internal value of the company's share totals 2,684 drachmas, trading at a premium of 11.76 percent in the market.

Marfin said it had maintained its low risk investment strategy, keeping liquidity at 41 percent, or around 16 billion drachmas.

Athens News Agency

[15] Athens Foreign Exchange

Athens, 02/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             311.716 318.943
Can.Dollar            212.883 217.819
Australian Dlr        208.766 213.607
Pound Sterling        493.064 504.496
Irish Punt            409.300 418.790
Pound Cyprus          558.893 571.851
Pound Malta           733.242 763.794
Turkish pound (100)     0.068   0.071
French franc           49.142  50.281
Swiss franc           201.108 205.771
Belgian franc           7.991   8.176
German Mark           164.815 168.636
Finnish Mark           54.216  55.473
Dutch Guilder         146.276 149.668
Danish Kr.             43.380  44.386
Swedish Kr.            36.952  37.809
Norwegian Kr.          39.878  40.803
Austrian Sh.           23.426  23.969
Italian lira (100)     16.648  17.034
Yen (100)             258.168 264.154
Spanish Peseta          1.937   1.982
Port. Escudo            1.608   1.645

Foreign Exchange      Buying  Selling
New York              311.716 318.943
Montreal              212.883 217.819
Sydney                208.766 213.607
London                493.064 504.496
Dublin                409.300 418.790
Nicosia               558.893 571.851
Paris                  49.142  50.281
Zurich                201.108 205.771
Brussels                7.991   8.176
Frankfurt             164.815 168.636
Helsinki               54.216  55.473
Amsterdam             146.276 149.668
Copenhagen             43.380  44.386
Stockholm              36.952  37.809
Oslo                   39.878  40.803
Vienna                 23.426  23.969
Milan                  16.648  17.034
Tokyo                 258.168 264.154
Madrid                  1.937   1.982
Lisbon                  1.608   1.645

Athens News Agency

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