Athens News Agency: Daily News Bulletin in English, 99-07-15

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

CONTENTS

[01] Cogen lauds Athens over Balkan reconstruction, bilateral cooperation

[02] Bus hijacking in northern Greece again grips nation

[03] Tripartite talks between FMs of Greece, FYROM, Albania

[04] Netherlands support for Thessaloniki as EU agency base

[05] Russian warships unload troops, material in Thessaloniki

[06] More discussions on Balkan reconstruction agency

[07] Gov't on Kranidiotis comments over EU-Turkey relations

[08] Measures on public procurement contracts

[09] Moody's gives Greece ratings upgrade

[10] EFG Eurobank ups the stakes in battle for Ergobank

[11] Gov't threatens oil firms with price ceiling

[12] Stocks end flat in directionless trade

[13] Athens Foreign Exchange

[01] Cogen lauds Athens over Balkan reconstruction, bilateral cooperation

Athens, 15/07/1999 (ANA)

Although troubled Kosovo and the search for increased stability throughout the Balkans was by far the focus of Mr. Cohen's talks with Greek leadership, other thorny issues the US official brought up included cooperation on combating terrorism and Greek- Turkish relations.

"We're also exploring new ways to improve relations with Turkey. The recent talks between the Greek and Turkish foreign ministers, I think, is a very important step. Based on the meetings yesterday (in Thessaloniki) and again here today, I must say that I leave with great confidence that Greece and the United States are entering an even stronger relationship and partnership for the future," he told reporters in Athens, adding however, that Washington does not intend to "pressure anyone".

Mr. Cohen arrived in Athens yesterday after first landing in Thessaloniki on Tuesday, where he held talks with his Greek counterpart Akis Tsohatzopoulos before visiting the USS h carrier "Kearsarge" - anchored off the northern city's port - to address its crew.

In Thessaloniki Mr. Cohen also announced US plans to set up a commercial bureau in the northern port city with a view to participating in the Yugoslavia reconstruction effort.

"What we do is to encourage Greece and Turkey to find a way to resolve disputes that have been pressing for some time. We would leave it up to the Greek government and the Turkish government to resolve their differences. The United States does not seek to become in any way an arbitrator or in any way to pressure either government. This is something that must be resolved by the two countries," he said.

Responding to a question over terrorism, the US official initially pointed the large-scale bomb attack on the World Trade Center in New York a few years ago as well as the leveling of the federal building in Oklahoma to cite what he called "horrific dam age" from terrorism.

He did emphasise that he was satisfied with Athens' commitment to combat terrorism, as he said.

"We are concerned with acts of terrorism directed at our citizens, and I would assume that Greek citizens are also concerned about any acts of terrorism because terrorists are totally 'antithetical' to our democratic values, which we share. And that is that terrorists seek, to instill terror, and to portray to the people that the government cannot protect them," Mr. Cohen said, adding:

"Greek citizens do not want that, American citizens do not want that, so to the extent there can be any kind of sharing of information of how we can combat terrorism, then we should do so..."

The US defence secretary also said solidarity among the NATO allies and the determination they displayed had served Yugoslav President Slobodan Milosevic a "very strong lesson".

In statements to the US embassy's staff and employees afterwards, Mr. Cohen, who was accompanied by US Pentagon spokesman Kenneth Bacon, among others, referred to his college days in Maine and his interest in the classical period, his lead-in to praising the embassy's efforts in operating in an allied country where a majority of the public opinion was against the NATO bombing of Yugoslavia.

He left for Ankara yesterday evening.

Papandreou : The US defense secretary had a brief exchange of views in the morning with FM George Papandreou.

The exchange took place at the Athens Airport's VIP lounge, where Mr. Papandreou was due to board a domestic flight for Prespes, and where Mr. Cohen had just arrived from Thessaloniki with Defence Minister Akis Tsohatzopoulos.

No statements were made after the Cohen-Papandreou discussions.

Gov't : Asked about the talks between Mr. Cohen and Greek government officials, government spokesman Dimitris Reppas stated the main issue was "the agreement and identity of views that exists regarding the reconstruction of the Balkans".

Mr. Reppas declined to comment on reports of a difference of views between Greece and the United States concerning the conditions set by Washington for the reconstruction of Yugoslavia.

The spokesman confined himself to saying that the international community had stated its position and underlined the need for supporting the Balkans economically.

"The implementation of the (reconstruction) plan in its details must certainly be discussed but the relevant procedures have not yet been completed for ascertaining any disagreement," Mr. Reppas said.

Generally speaking, he added, Greece's unchanging position is that SE Europe needs to enter the 21st century with better conditions. The needs are great and broad interest must be displayed if stability in the region is to be secured, he added.

Finally, he said Athens has not been the recipient of any formal document from the US concerning terrorism and its interdiction, but it accepts ideas, concerns, proposals and non-papers.

He was replying to questions prompted by a report on the Athens daily "To Vima" on the existence of a confidential eight-point US plan conveyed to Greek authorities in the form of a non-paper.

Mr. Reppas said the Greek crimefighting authorities were in constant contact with the FBI, adding that the reported plan had nothing to do with Mr. Cohen's visit.

However, he added, the matter could prospectively be included in the agenda of Public Order Minister Mihalis Chryssohoidis' talks during his visit to the United States in September.

Meeting with Karamanlis : Mr. Cohen also had a 30-minute meeting with main opposition New Democracy leader Costas Karamanlis that focused on developments in the Balkans, the Cyprus issue and Greek-Turkish relations.

ND spokesman Aris Spiliotopoulos said afterwards that the two men did not discuss the issue of terrorism.

He said the talks centred on the role that Greece could play in the reconstruction of the Balkans and in consolidating peace, security and democracy in the region.

Mr. Karamanlis referred particularly to the leading role that Thessaloniki could play in Balkan reconstruction and outlined an "integrated" ND proposal on Balkan reconstruction, Mr. Spiliotopoulos said.

On the Cyprus issue, the discussion focused on the prospect for a just and lasting solution represented by the G8 involvement and on the basis of the relevent UN resolutions, Mr. Spiliotopoulos said.

On Greek-Turkish relations, Mr. Karamanlis told the US defense secretary that any need of developing a Greek-Turkish dialogue should be conducted within a specific framework of Ankara's respecting Greece's territorial integrity, the existing internation al treaties governing the status quo in the region and abandoning its threats of using force, Mr. Spiliotopoulos said.

He added that so long as Turkey did not comply with these conditions, "it is crystal clear that Ankara will continue the escalation of its provocations".

KKE : Communist Party of Greece (KKE) Secretary General Aleka Papariga yesterday said that during his visit here the attitude and the statements of Mr. Cohen were "provocative".

"By congratulating the Greek government on its stance on the Yugoslav issue he wanted to embarrass it, while he was telling the truth, of course..." Ms Papariga said.

Commenting on Mr. Cohen's visit, the Coalition of Left and Progress stated that the US defence secretary's congratulations to the Greek government "in fact, reveal its complete alignment with US choices, (which are) in complete conflict to the widespread popular sentiment".

Athens News Agency

[02] Bus hijacking in northern Greece again grips nation

Athens, 15/07/1999 (ANA)

Seven hostages, including the bus driver, were being held at presstime by the suspect, reportedly armed with an undetermined number of hand grenades. Before midnight the bus was stopped at a distance of eight kilometres from the northwestern city of Florina.

Using a mobile phone throughout the evening, the masked suspect had several on-air conversations with television anchors, identifying himself on one occasion as "Alexandro Nana". He also claimed the motive behind the hijacking was the destruction his ID documents, which prevented him from retieving his bank savings, according to reports.

He repeatedly demanded 250 million drachmas and two automatic weapons from authorities during the afternoon and evening, requests which reportedly hadn't been met late into the night.

During an almost identical incident in late May, an Albanian armed with an assault rifle and a hand grenade led a KTEL bus around northern Greece before slipping into Albania through the Krystallopigi border crossing. A bloody conclusion was written by Albanian police a few hours later, with the hijacker and a passenger-hostage killed during a botched rescue attempt.

One of the decisions by the government yesterday after a series of high- level meetings was that this mobile hostage situation would not be allowed to be exported to this suspect's homeland.

The bus had set out with up to 50 passengers at noon from the town of Goumenissa, Kilkis prefecture, headed for Thessaloniki and with a stop at Polykastro, from where the suspect boarded the coach.

Most of the passengers were subsequently freed, while an elderly lotter ticket seller was also later set free.

Near the village of Limnotopo, the hijacker removed the safety pin from a hand grenade and ordered the driver to return to Polykastro.

On his part, Greek Police commander Spyros Doudopoulos, in several early morning remarks, commented:

"The negotiations with the Albanian suspect are continuing...A self-evident priority of ours is the protection of human life and the well-being of our fellow citizens. We were ready from the first moment to satisfy the Albanian suspect's demands, on the c ondition that he immediately free the Greek citizens. The process of negotiation demands patience and persistence. That's why we judge that the night will be long, and we hope that the coming day will dawn with positive results," he said.

Athens News Agency

[03] Tripartite talks between FMs of Greece, FYROM, Albania

Athens, 15/07/1999 (ANA)

The meeting, held on the Aghios Achilleios islet on the lake, focused mainly on drafting common programmes for trilateral cooperation in Balkan reconstruction, security of borders and tackling illegal immigration, as well as tripartite cooperation in ge neral in the fields of the economy, culture and environmental protection.

Mr. Papandreou said such programmes would include the creation of an "ecological park" in the Prespes district, the promotion of eco-tourism, and the creation of a "free-access zone" for the citizens of the three countries.

He also announced that Athens intended to submit at an informal European summit in Tampere, Finland, a proposal for the promotion of cooperation between the three countries within the framework of EU stabilisation plans for the western Balkans. The proposal will concern European funding for cross-border cooperation in dealing with crime.

Cooperation was also agreed within the framework of the Stability Pact for SE Europe, involving the submission of common proposals to the planned Sarajevo summit on July 30, on the sidelines of which the three countries' prime ministers will hold an informal session.

Mr. Papandreou also assured his counterparts of Athens' support for their countries' European vocation, stressing that Athens considered reconstruction plans should have a broader Balkan dimension, and include, apart from Kosovo, both Albania and FYROM, which were most affected by the crisis.

The three ministers agreed to meet next in the FYROM lakeside resort of Ochrid.

Joint communique : Afterwards, all three FMs ratified a joint communique underlining the significance Greece, Albania and FYROM attribute to newly established tripartite cooperation.

The joint communique stresses a common will to strengthen regional cooperation, as well as cooperation at European level, and underlines that the incorporation of Albania and FYROM in the European family, with support by Mr. Papandreou, will strengthen peace and stability in the region.

The joint communique added that Mr. Papandreou "reiterated Greek support for the speediest possible accession of the countries represented by Mr. Dimitrov and Milo to the European Union and NATO and the deepening of relations in the framework of the association and stabilisation agreements.

Athens News Agency

[04] Netherlands support for Thessaloniki as EU agency base

Athens, 15/07/1999 (ANA)

Mr. Benschop was speaking after talks in Athens with his Greek counterpart Yiannos Kranidiotis.

"The Rio decision for Thessaloniki as the seat for the Balkans reconstruction service must be implemented," he said.

"The port of Thessaloniki is not only a port of hope, but a port of reconstruction for the Balkans," he added.

Thessaloniki was chosen as the headquarters for the EU's Balkans reconstruction agency when EU leaders met in Rio de Janeiro on the sidelines of an EU summit with Latin American countries.

Certain reservations raised among European Commission members claimed Thessaloniki is not the best choice. Mr. Kranidiotis addressed these concerns in his meeting with EU Commissioner for external relations Hans van den Broek on Tuesday, underlining Ath ens' desire to see the decision implemented.

Mr. Benschop said that Dutch companies were interested in forming joint ventures with Greek companies on projects involved in reconstructing the Balkans. Dutch companies can provide know-how, telecoms and construction experience, he said.

He underlined Greece's "courageous and ambitious policies", indicated not only during the Kosovo crisis but also in the issue of reconstruction of the Balkans and improving relations with Turkey.

"I am very positive about the initiative of the foreign ministers of Greece and Turkey to resume dialogue," he said, referring to a recent meeting which decided talks between Greek and Turkish ministry officials on a number of issues.

"I hope this initiative also contributes to improved dialogue between the European Union and Turkey, which is really needed," he said.

Mr. Kranidiotis underlined that the conditions existing for other candidate countries to join the European Union, were also valid for Turkey, adding that decisions by the European Union at the Copenhagen and Luxembourg summits on Turkey's candidacy still held.

"Turkey is not an exception," he said. "For Greece, Turkey's European vocation means progress in Greek-Turkish relations and the Cyprus issue." The two men also discussed European issues, EU expansion, institutional changes, joint foreign and security policy and the Yugoslav crisis.

Athens News Agency

[05] Russian warships unload troops, material in Thessaloniki

Athens, 15/07/1999 (ANA)

The Russian vessels, carrying 450 soldiers, 130 vehicles and about 100 tonnes of supplies, will remain in port until the vehicles and supplies have been loaded into containers to be carried overland to Kosovo through the Former Yugoslav Republic of Mace donia (FYROM).

Meanwhile, the British warship "Centurion" was expected to arrive in Thessaloniki yesterday evening to collect about 700 British soldiers returning from Kosovo. The Italian ship "Megior" was also expected to arrive in the afternoon to unload 100 vehicles, 50 containers and an unspecified number of men.

The Spanish warship "Martin Posadillo" is also expected in Thessaloniki today, carrying a military force, while three US ships will collect 300 military vehicles and men returning from Kosovo as well.

In a related development, the Communist Party of Greece's (KKE) local organisation in Thessaloniki was due to organise a gathering outside the port's gate 11 in protest against the arrival of the Russian troops and their passage through Greek territory.

Athens News Agency

[06] More discussions on Balkan reconstruction agency

BRUSSELS, 15/07/1999 (ANA- M. Spinthourakis)

During the session, Commissioner Hans van den Broek did not clarify whether he would propose himself, or on behalf of the Commission, the Greek city or if he would insist on a previous proposal for Pristina.

Commissioner Christos Papoutsis expressed strong disagreement with Mr. Van den Broek's stand, saying "it is time we put things in their proper place in order to save the prestige of the European Union and its institutions. It is unacceptable for the agreement of the prime ministers of the member- states in Rio de Janeiro not to be respected and implemented due to the procrastination and dishonest stand of certain governments".

The issue was also discussed in the afternoon session of the Committee of Permanent Representatives, where the representative of the Commission asked for more time so that a solution that "will satisfy everyone" may be reached.

Greek ambassador Loukas Tsilas said Greece does not intend to consent to an adoption on Monday of the regulations for the reconstruction organisation if it does not clearly state that its headquarters and basic services will be based in Thessaloniki.

Athens News Agency

[07] Gov't on Kranidiotis comments over EU-Turkey relations

Athens, 15/07/1999 (ANA)

Government spokesman Dimitris Reppas made the statement as he expressed displeasure over the way in which statements by Alternate Foreign Minister Yiannos Kranidiotis to the Reuters news agency had been commented on, particularly in the Cypriot press.

Mr. Reppas said erroneous interpretations should not be given to the statements of government officials and reiterated that "progress on a settlement of the Cyprus problem and Cyprus' accession to the EU continue to be major issues for Greece".

Replying to questions on a possible change of stance on the part of the EU concerning the preconditions for Turkey's accession, Mr. Reppas said the EU's position as shaped at the summits of Cardiff and Luxembourg had not changed in the slightest, "just as Greece's position has not changed".

Athens News Agency

[08] Measures on public procurement contracts

Athens, 15/07/1999 (ANA)

The measures provide for an expansion of the responsibilities of the State Audit Council to goods contracts exceeding 500 million drachmas and public projects worth more than one billion drachmas, and the setting up of a Procurement Policy and Planning Committee to deal with contracts of large technological and financial value. The committe will include representatives of parties and at least one high judicial official.

The measures, to be tabled in Parliament soon, will also include the publication of contracts in a weekly special bulletin of the Government Gazette, and the introduction of "specification certification" that all public organisations will have to submit .

Athens News Agency

[09] Moody's gives Greece ratings upgrade

Athens, 15/07/1999 (ANA)

The credit rating agency said the decision was based on the "high likelihood" that Greece would soon qualify to join the euro zone.

Moody's said that following the decision the Baa1-rated foreign currency bonds issued by the Hellenic Republic and by the Bank of Greece were upgraded to A2, along with the foreign-currency issuer rating of Hellenic Telecommunications Organisation.

"Assuming continued price restraint and no divergence on other economic criteria, ECOFIN is likely in May 2000 to certify Greece's eligibility to join the currency union," the international debt ratings agency said in a statement.

"This would clear the way for Greece to enter the euro area as of January 2001, precisely in line with the Greek government's own schedule," the statement said.

Moody's added that it would maintain a positive outlook on Greece's country ceiling ratings due to its near-term prospects for joining the Aaa rated euro zone.

The agency said the outlook for the Hellenic Republic's debt ratings was now stable at the A2 rating, reflecting Greece's structural weaknesses versus the higher-rated countries in the European Union.

Athens News Agency

[10] EFG Eurobank ups the stakes in battle for Ergobank

Athens, 15/07/1999 (ANA)

The move came in response to an earlier stock swap proposal by the Bank of Piraeus Group, which Ergobank's management supported after urging shareholders to reject EFG Eurobank's initial surprise hostile bid.

Bank of Piraeus' direct offer to shareholders followed a merger plan it had proposed to Ergobank's management, which was accepted.

CEH, a member of the EFG Bank Group, yesterday offered 2.4 shares in EFG Eurobank plus 17,000 drachmas in cash for each Ergobank share, improving its first offer, Eurobank said in a statement.

Based on a five-day average of the two banks' closing prices (July 8 to July 14), the offer represented a value of 56,312 drachmas per share, the statement said.

A successful outcome to the Latsis Group's offer would lead to Ergobank's integration into the EFG Bank Group with the target bank maintaining its autonomy. It would cooperate and coordinate with EFG Eurobank, the statement said.

Both EFG Eurobank and Ergobank would have the status of separate subsidiaries within the Group. A possible future merger between the two banks would be examined within two years, the statement said.

EFG Eurobank and Deutsche Bank of Germany already are minority shareholders in Ergobank. Deutsche Bank is also a minority shareholder in EFG Eurobank.

The three banks involved in the acquisition bid are privately owned and listed on the Athens Stock Exchange.

Ergobank executive resigns due to Latsis family link : A vice president of Ergobank resigned from his position yesterday to forestall charges of a possible conflict of interest.

Ergobank's board of directors accepted the resignation of Panayotis Lambropoulos, who cited a family connection with Spyros Latsis.

One of the two bidders for Ergobank is the Latsis Group.

Athens News Agency

[11] Gov't threatens oil firms with price ceiling

Athens, 15/07/1999 (ANA)

The worst cases of overcharging were reported in border areas and the islands, where prices were up to 20 drachmas above the government's benchmark rates, Mr. Venizelos said.

The country is divided into price zones in order to take into account regional differences.

In the areas where the worst offences were found, the government was already subsidising transport costs for liquid fuel and lowered the Value Added Tax bracket, Mr. Venizelos said.

Prices were acceptable in the major urban centres of Athens, Thessaloniki and Piraeus, he added.

The minister also called on consumers to aid the drive for fair prices by picking and choosing among retailers, and reporting steep hikes to the ministry's market control authorities.

On Tuesday, prefects around the country were given the right to impose fines of up to 10 million drachmas on oil companies for violations of the law on petroleum product sales.

The measure is in addition to existing legal penalties imposed by other authorities.

The government's indicative retail sales prices in effect from today for a week include a rise of 1.90 drachmas per litre of super gasoline, taking the price per litre to 220.70 drachmas in Athens and Thessaloniki, and 230.60 drachmas in the Argosaronic islands.

Athens News Agency

[12] Stocks end flat in directionless trade

Athens, 15/07/1999 (ANA)

Traders said the market remained worried over the repercussions of rising oil prices on domestic inflation, and over a running battle by EFG Eurobank and Bank of Piraeus to acquire Ergobank.

All three banks are listed.

The general index ended 0.02 percent lower at 4,240.94 points. Turnover was 147.341 billion drachmas with 31,868,788 shares changing hands.

Sector indices ended as follows: Banks (+0.26 pct), Leasing (-2.16 pct), Insurance (+0.53 pct), Investment (+0.42 pct), Construction (-0.58 pct), Industrials (-0.49 pct), Miscellaneous (-0.46 pct) and Holding (-1.42 pct). The parallel market index for smaller capitalisation stocks rose 1.29 percent while the FTSE/ASE 20 index for heavily traded stocks and blue chips remained unchanged at 2,489.89 points.

Broadly, decliners led advancers by 171 to 120 with another eight issues unchanged.

Macedonian Textiles, Hellenic Telecoms, Baby Land and Intersat were the most heavily traded stocks.

A total of 31 shares ended at the day's 8.0 percent limit up.

National Bank of Greece ended at 20,500 drachmas, Alpha Credit Bank at 20, 950, Ergobank at 41,100, Piraeus Bank at 9,080, Titan Cement at 30,745, Hellenic Petroleum at 2,820, Intracom at 18,550, Minoan Lines at 5,800, Panafon at 8,410 and Hellenic Telecoms at 6,715.

Bond prices edge up in light trade : Bond prices in the secondary market yesterday gained an average of 40 basis points in light trade.

Electronic trade totalled 30 billion drachmas from 74 billion drachmas in the previous session and 13 billion drachmas on Monday.

The ten-year bond was trading above par at 100.20 from 100.0 on Tuesday to show a yield of 6.28 percent from 6.40 percent in the previous session and 6.41 percent on Monday.

The yield spread over German bunds was 164 basis points from 170 basis points a day earlier and 166 basis points on Monday.

At the central bank's daily fix, the euro nosed down against the drachma. It was set at 324.800 drachmas from 324.900 drachmas in the previous session.

Athens News Agency

[13] Athens Foreign Exchange

Athens, 15/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             316.587 323.927
Can.Dollar            213.419 218.367
Australian Dlr        208.885 213.729
Pound Sterling        493.004 504.435
Irish Punt            409.112 418.597
Pound Cyprus          559.131 572.095
Pound Malta           737.675 768.412
Turkish pound (100)     0.065   0.068
French franc           49.119  50.258
Swiss franc           200.751 207.406
Belgian franc           7.987   8.172
German Mark           164.739 168.559
Finnish Mark           54.190  55.446
Dutch Guilder         146.209 149.599
Danish Kr.             43.325  44.329
Swedish Kr.            36.825  37.679
Norwegian Kr.          39.577  40.494
Austrian Sh.           23.415  23.958
Italian lira (100)     16.641  17.027
Yen (100)             261.967 268.041
Spanish Peseta          1.936   1.981
Port. Escudo            1.607   1.644

Foreign Exchange      Buying  Selling
New York              316.587 323.927
Montreal              213.419 218.367
Sydney                208.885 213.729
London                493.004 504.435
Dublin                409.112 418.597
Nicosia               559.131 572.095
Paris                  49.119  50.258
Zurich                200.751 207.406
Brussels                7.987   8.172
Frankfurt             164.739 168.559
Helsinki               54.190  55.446
Amsterdam             146.209 149.599
Copenhagen             43.325  44.329
Stockholm              36.825  37.679
Oslo                   39.577  40.494
Vienna                 23.415  23.958
Milan                  16.641  17.027
Tokyo                 261.967 268.041
Madrid                  1.936   1.981
Lisbon                  1.607   1.644

Athens News Agency

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