Athens News Agency: Daily News Bulletin in English, 99-07-28

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

CONTENTS

[01] Simitis inspects Greek detachment stationed in Kosovo town of Urosevac

[02] Miller: G8 initiative will not replace UN in resolving Cyprus issue

[03] Second dispatch of Russian troops in Thessaloniki today

[04] Kranidiotis: Decision to base EU agency in Thessaloniki final

[05] First round of initial Greek-Turkish contacts completed

[06] Kranidiotis on Milosevic role in Yugoslavia

[07] Karamanlis calls crime, illegal immigration a modern-day scourge

[08] Gov't says new policy on immigration being formulated

[09] Stocks slump below 4,500 points

[10] OTE-KPN temporarily suspend negotiations to purchase BTK majority

[11] Bank of Piraeus to keep Ergobank bid in place

[12] National Bank of Greece posts 40 pct profit jump in H1

[13] Yield edges up in T-bill auction

[14] Gov't to issue savings bonds on July 29-August 2

[15] Bonds end flat in lacklustre trade

[16] Autohellas Hertz seeks Athens bourse entry

[17] Shipowners, seamen forge wage pact

[18] Athens Foreign Exchange

[01] Simitis inspects Greek detachment stationed in Kosovo town of Urosevac

UROSEVAC, Kosovo, 28/07/1999 (ANA - V. Mourtis)

Speaking to reporters after inspecting the Greek peacekeeping force in Kosovo during a four-hour visit, Mr. Simitis said:

"The presence of the Greek force entails a double message in that Greece desires peace and cooperation prevail in the region and wherever a problem exists it will offer its assistance to have it resolved".

The prime minister, accompanied by National Defense Minister Akis Tsohatzopoulos and Press Minister Dimitris Reppas, arrived in Urosevac aboard two helicopters which were escorted by two US Apache helicopters after entering the Former Yugoslav Republic of Macedonia (FYROM).

Mr. Simitis said the decision on the reconstruction of Yugoslavia is a decision by the European Union and does not depend on political developments in Yugoslavia.

Mr. Simitis appeared dissatisfied with the process of disarming the so- called "Kosovo Liberation Army" (UCK) rebel force and, replying to a relevant issue, said its disarming is not proceeding at the desired rates.

He said the Greek force will be reinforced with a mechanised company and a sanitation company.

Mr. Simitis discussed the issue of reinforcing the Greek force with the KFOR commander, British General Michael Jackson, at a dinner given by the Greek commander. Mr. Simitis said Gen. Jackson considers the reinforcement of the Greek battalion necessary .

The Greek force, currently housed in a disused oil and natural gas pipe producing factory, one of the biggest in the Balkans, as Mr. Simitis said, will be transferred to a camp with prefabricated houses which will probably start being built as of next week.

Mr. Simitis said his impressions concerning the presence of the Greek force is that good cooperation exists with the authorities, the international peacekeeping force's command, as well as with the US brigade, part of which is composed of the Greek batt alion. He congratulated all on what is being done in Urosevac.

Referring to the situation prevailing in the troubled Serbian province, Mr. Simitis said it is easy for one to ascertain the gloomy reality of war and its consequences.

"There are signs of neglect, unemployment, the non-existence of administration and of the state, the non-existence of an economy, while very often there are not even the rudimentary means in such sectors such as health and treatment. For these reasons the presence of the peacekeeping force is of great importance in the region of Yugoslavia, as well as that of the Greek force in the region of Urosevac," he said, adding that there is already a major difference between the present situation and the situati on found by the 501 battalion when it deployed itself there a month ago.

The commander of the 501 battalion said aid provided by the Greek force is primarily medical and humanitarian. Medical and pharmaceutical aid has been provided for 500 people so far, while 160 tonnes of humanitarian aid has been distributed to 31 villages.

On arrival in Kosovo, Mr. Simitis was welcomed by the Greek ambassador to Belgrade Stathopoulos and the commander of the 501 battalion.

Address to troops : Addressing earlier the Greek troops in Urosevac, Mr. Simitis said: "A great effort will be needed to reconstruct the region and deal with the outstanding problems of democracy and development, and in this effort too, Greece will be present".

"If peace smiles once again in the Balkans, it will smile thanks to our efforts also," Mr, Simitis said.

Commenting on Greece's role during the Kosovo crisis, the premier said the result had been that the country was today part of efforts to resolve the problem and not part of the problem itself.

He said however that despite the peace now prevailing in the region "it would be a dangerous illusion to believe that the problem has been dealt with, that the situation has been normalised, that the page has turned conclusively".

Mr. Simitis said the situation in the region would remain "fluid" for an indeterminate period of time which would be marked by tensions and instability as well as frictions and even "clashes" at a regional level.

The prime minister told the troops that their presence in Kosovo was a concrete example of Greece's interest in the region "and our people's solidarity with our neighbours".

Mr. Simitis also referred to the responsibility of the European Union for the Kosovo crisis, saying that if the EU had been "more perspicacious, bolder and had a specific courageous and comprehensive strategy for the Balkans, it would have been able to prevent the crisis and the conflict would have been averted". Mr. Simitis and Mr. Tsohatzopoulos returned to Athens last night. On Friday, the premier and the defence minister will fly to Sarajevo to attend a meeting of mostly European leaders on Balkan r econstruction and stability.

The Balkan Stability Pact summit in the Bosnian capital will be attended by leaders of the 15-member European Union, nine non-EU countries in the region, the US, Russia, Canada and Japan.

Athens News Agency

[02] Miller: G8 initiative will not replace UN in resolving Cyprus issue

Athens, 28/07/1999 (ANA)

Mr. Miller, on a farewell visit to Athens before taking up his new post as US ambassador to Bosnia, held talks here on Monday with Alternate Foreign Minister Yiannos Kranidiotis over the Cyprus issue, Greek-Turkish relations and the situation in the Balkans.

He told a press conference yesterday that Washington was "making every possible effort to make it useful" for the Greek and Turkish Cypriots to sit down at the negotiations table.

Mr. Miller noted that the communique adopted by the G8 group called on the leaders of the Greek and Turkish Cypriot communities to enter into talks "without terms and conditions", making it clear that "all issues are on the negotiating table".

Regarding the UN Security Council resolutions on the Cyprus issue, Mr. Miller said he did not see them as "conditions" but rather as a "catalyst which gives inspiration to the talks".

"The Security Council resolutions are part of the history of the Cyprus problem and linked with the present situation on the island," Mr. Miller said, adding in reply to questions that the US position in favour of a "bizonal, intercommunal federation, with a single sovereignty has not changed, and will not change".

Asked how the talks could be made "attractive" for the Turkish side, which has so far said it would not take part, Mr. Miller referred to three points:

First of all, he said, the Turkish side "may consider that the Cyprus issue is not a major problem, but the rest of the international community believes the opposite".

Second, he noted that "the two sides have legitimate interests and concerns" and a settlement of the problem was in their mutual interest, adding that "in a negotiation, no side can attain 100 per cent of its aspirations".

Third, he said that "if we all agree that we desire serious negotiations, we must try to create the appropriate environment and conditions for the negotiations to be successful", and noted as an example "the problems faced by the Turkish Cypriot busines smen from the embargo on Turkish Cypriot products".

Mr. Miller said it would be good if the embargo were lifted, but admitted that that would be "very difficult to happen before a commencement of negotiations".

The US official said he was "more optimistic today than in the past", and noted the "positive messages" being conveyed from the process of the Greek- Turkish dialogue at senior foreign ministry officials level that opened Monday in Ankara.

"It is not so much the issues that are being discussed as the fact that the will and disposition exist to begin solving the problems," Mr. Miller said.

On relations between the European Union and Turkey, Mr. Miller said that "after the negative, for Turkey, decisions" of the EU leaders at the Luxembourg summit, "there have been some encouraging elements" from the Cologne summit and afterwards.

He further said that top US diplomat Richard Holbrooke, the former US special presidential emissary for Cyprus whose appointment as the new US ambassador to the United Nations is pending Senate approval, continued to be "quite involved" in the Cyprus issue in the background, and reaffirmed US President Bill Clinton and Secretary of State Madleine Albright's "strong interest" for a solution of the Cyprus problem.

Athens News Agency

[03] Second dispatch of Russian troops in Thessaloniki today

Athens, 28/07/1999 (ANA)

The 400 soldiers, containers and military vehicles are due early in the afternoon, and are scheduled to depart overland late the same night for Kosovo via FYROM.

The first dispatch of 450 soldiers, 130 vehicles and some 100 tons of military supplies arrived in Thessaloniki on five Russian ships on July 14.

A ship from the United Arab Emirates is due also today in carrying military supplies for Kosovo. The 400 UAE soldiers are due to arrive in Thessaloniki by airplane, and from there will take up their vehicles and head overland to Kosovo.

Athens News Agency

[04] Kranidiotis: Decision to base EU agency in Thessaloniki final

Athens, 28/07/1999 (ANA)

Mr. Kranidiotis was speaking in Thessaloniki after talks in the port city in preparation for the procedure for the establishment of the organisation's headquarters.

The decision to base the agency in Thessaloniki was taken recently by European Union leaders on the sidelines of an EU-Latin American summit in Rio de Janeiro.

Mr. Kranidiotis said the European Parliament's negative opinion on the basing of the organisation in Thessaloniki has no effect on the final decision.

Commenting on the importance of the development, Mr. Kranidiotis said "headquarters means that the decision-making centre and central services of the organisation will be in Thessaloniki".

"In addition to the Balkans Reconstruction Organisation, the Stability Pact will also unfold in the region with Thessaloniki hosting part of its activities", Mr. Kranidiotis said.

"The Stability Pact is something different from the Reconstruction Organisation. It is a pact among countries worldwide aiming at assisting with the reconstruction of the region and it will include three axes, security, human rights and the economic de velopment of the region. All its activities will be coordinated by a single body, mainly meeting in Brussels, but also in Thessaloniki which will host its Secretariat", he said.

"The economic reconstruction process for Kosovo and the wider region will commence in September and 250 million euros will be allocated during the first phase", Mr. Kranidiotis said, stressing that "prospects will not be very promising in the absence of a generous financial assistance".

Macedonia-Thrace Minister Yiannis Magriotis, who participated earlier in the talks with Mr. Kranidiotis, said Thessaloniki already had a good infrastructure in place and had suitable buildings available for housing the agency's services.

The actual choice of the buildings to be used will be made by organisation officials, Mr. Magriotis said, adding that this would take place sometime in the next few days.

Athens News Agency

[05] First round of initial Greek-Turkish contacts completed

ANKARA, 28/07/1999 (ANA - A. Kourkoulas)

Turkish foreign ministry spokesman Sermet Atancali described the talks as positive and constructive. Discussions will continue in Athens tomorrow on issues of fighting crime and other activities that could be descrbied as "terrorism".

The two countries' foreign ministers, George Papandreou and Ismail Cem, will have the opportunity to evaluate progress on the sidelines of the Sarajevo summit on Friday.

Meanwhile, diplomatic sources expressed a view that the dialogue replaces the "rhetorical conflict" and the "continuous friction" which prevailed in Greek-Turkish relations, particularly after the capture of Kurdish Workers' Party (PKK) leader Abdullah Ocalan, in Kenya earlier this year.

The government noted that the Greek-Turkish dialogue had begun in a positive climate on issues concerning trade, the environment and tourism.

Acting government spokesman Nikos Athanassakis said the talks had been held in a positive climate but declined to make any other statement.

Athens News Agency

[06] Kranidiotis on Milosevic role in Yugoslavia

Athens, 28/07/1999 (ANA)

Athens News Agency

[07] Karamanlis calls crime, illegal immigration a modern-day scourge

Athens, 28/07/1999 (ANA)

Mr. Karamanlis, who presented ND's programme for combatting crime at a press conference, accused the PASOK government of trying to resolve an explosive situation in a timid and fragmental way, and of not tackling the essence of the problem but of only trying to keep appearances.

Analysing ND's proposals, Mr. Karamanlis said police should be radically reorganised and a police headquarters should be created according to national defence ministry models.

A second element, he added, is the need for meritocracy of police. Other points requiring attention are the salaries of officers, their training and constant re-training.

Terming illegal immigration a scourge, Mr. Karamanlis said measures should be taken in the border region as well as in rural areas, while a special unit should be created to guard borders. He further said that control is also required for issues concern ing the entry and residence of aliens in Greece and that "sweep" operations will not produce results.

Mr. Karamanlis said that when ND comes to power it will not allow crime to erode the foundations of Greek society and will safeguard social calm and the free development of each individual's personality.

Athens News Agency

[08] Gov't says new policy on immigration being formulated

Athens, 28/07/1999 (ANA)

Acting government spokesman Nikos Athanasakis said that after discussion of the issue during today's Cabinet meeting, the relevant bill would be given to the opposition parties and the procedure would then commence for a Parliamentary debate.

Mr. Athanasakis criticised the stance of main opposition New Democracy leader Costas Karamanlis over dialogue between the government and opposition leaders.

The government spokesman said issues related to the safety of citizens should be dealt with outside the arena of party confrontation.

Athens News Agency

[09] Stocks slump below 4,500 points

Athens, 28/07/1999 (ANA)

The general index ended 1.82 percent lower at 4,425.4 points from 4,507.76 points a day earlier.

Turnover was 217.5 billion drachmas from 199.676 billion drachmas in the previous session. Changing hands were 29,634,880 shares.

Profit-taking was seen in banks, which spread to other sectors.

Sector indices ended as follows: Banks (-2.28 pct), Leasing (+0.30 pct), Insurance (-5.01 pct), Investment (-2.47 pct), Construction (-3.55 pct), Industrials (-1.23 pct), Miscellaneous (-3.73 pct) and Holding (+1.65 pct).

The parallel market index for smaller capitalisation stocks ended 1.26 percent lower. The FTSE/ASE 20 index for heavily traded stocks and blue chips dropped 1.84 percent to finish at 2,573.31 points.

Of 298 shares traded, declines outpaced advances at 202 to 72 with 4 issues unchanged.

National Bank of Greece ended at 21,500 drachmas, Alpha Credit Bank at 21, 500, Bank of Piraeus at 8,950, Ergobank at 37,750, Titan Cement (common) at 30,405, Hellenic Petroleum at 2,920 and Intracom (common) at 20,950 drachmas.

Athens News Agency

[10] OTE-KPN temporarily suspend negotiations to purchase BTK majority

SOFIA, 28/07/1999 (ANA - B. Borisov)

According to reports, there was a difference of opinion between Bulgarian government officials and the OTE-KPN side over the monopoly status of BTK in the telecoms sector until 2002, something apparently agreed to in a July 9 protocol signed by the two sides.

The same reports noted that there were also differences over the amount of stock the OTE-KPN side was willing to purchase for 502 million US dollars.

According to the protocol, the Greek-Dutch joint venture agreed to purchase 51 per cent of BTK's stock for the above amount.

Athens News Agency

[11] Bank of Piraeus to keep Ergobank bid in place

Athens, 28/07/1999 (ANA)

On Monday, Ergobank's management came out in favour of a cash and share proposal by EFG Eurobank, through its parent, Consolidated Eurofinance Holdings.

Both banks are bidding for a 50.1 percent stake in Ergobank. All three banks are listed on the Athens Stock Exchange.

Bank of Piraeus said in a statement that it was surprised at management's backing for EFG Eurobank's offer, as Ergobank had approached Piraeus after EFG's initial hostile bid, the first in the country's history.

Bank of Piraeus said in a statement: "We do not know the reason for the timing of (Ergobank's) announcement of its preference, or its manner."

It added that written commitments were made by the two banks at the time of the approach. No detail was given.

Bank of Piraeus' "white knight" counter-bid, made after consultations with Ergobank's management, had rescued Ergobank's retail shareholders from a low offer, the statement said. EFG Eurobank later improved its original bid.

In another development, the EFG Eurobank Group welcomed the recommendation to shareholders in its favour made by Ergobank's management.

If the merger with Ergobank goes ahead, the group to emerge will have assets of more than 4.0 trillion drachmas, it said in a statement.

The result of the acquisition bid will be known by August 4. The banks have until July 29 to improve their offers and until July 30 to withdraw them.

Athens News Agency

[12] National Bank of Greece posts 40 pct profit jump in H1

Athens, 28/07/1999 (ANA)

It said in a statement that net pre-tax earnings were 111.3 billion drachmas from 79.7 billion drachmas in the same period of 1998, which includes the results of the former Mortgage Bank for reasons of comparison.

Mortgage Bank was a subsidiary of National Bank that has since been absorbed following a merger.

The National Bank of Greece Group reported consolidated net pre-tax profits in the first half of around 150 billion drachmas, up about 40 percent from 107.3 billion drachmas in the same period of 1998.

The profit jump shown by the parent company and the group was due to improved operational results and increased activity in financial markets, boosted by a reduction in operational expenses, National Bank said.

Athens News Agency

[13] Yield edges up in T-bill auction

Athens, 28/07/1999 (ANA)

Up for auction were 80 billion drachmas of paper through primary dealers, who received a commission of 0.45 percent.

Bids submitted totalled 135 billion drachmas, and the sale was about 1.7 times oversubscribed. Accepted were bids worth 91 billion drachmas.

The government's Public Debt Management Organisation said that the rise in yield reflected market conditions.

It welcomed the interest shown in the T-bill sale by primary dealers despite adverse conditions in secondary bond markets at home and abroad.

Athens News Agency

[14] Gov't to issue savings bonds on July 29-August 2

Athens, 28/07/1999 (ANA)

The paperless bonds, which are tax-free if held until maturity, carry an annual rate of 8.60 percent. The issue date is July 29.

The bonds are on sale at banks, the Post Office Savings Bank, the central bank and brokerages.

The denominations of the securities are multiples of 10,000, the lowest amount, rising to 15 million drachmas for each investor.

Athens News Agency

[15] Bonds end flat in lacklustre trade

Athens, 28/07/1999 (ANA)

Electronic trade totalled 17 billion drachmas from 22 billion drachmas in the previous session and 11 billion drachmas on Friday.

The benchmark 10 year bond showed a yield of 6.39 percent from 6.43 percent a day earlier and 6.40 percent on Friday.

The yield spread above German bunds fluctuated between 175 and 176 basis points in trading, to close at 173 basis points from 175 basis points a day earlier and 173 basis points on Friday.

At the central bank's daily fix, the euro nosed down against the drachma. It was set at 324.940 drachmas from 325.130 drachmas in the previous session.

The dollar staged a minor rally versus the drachma, reflecting its ascent against the euro in markets abroad. The greenback was set at 306.170 drachmas from 304.400 drachmas a day earlier.

On Monday, the US currency in the domestic market had lost more than 15 drachmas in a week.

Athens News Agency

[16] Autohellas Hertz seeks Athens bourse entry

Athens, 28/07/1999 (ANA)

The company is seeking to raise 11.7 billion drachmas. The share price is 2, 600 drachmas

The chief underwriter of the IPO is Alpha Credit Bank and its adviser, Telesis Securities.

The firm has a three-year investment plan for 1999-2001 worth 39 billion drachmas.

Of cash to be tapped from the market, 8.8 billion drachmas will be used to renew and expand Autohellas' fleet of motor vehicles.

Athens News Agency

[17] Shipowners, seamen forge wage pact

Athens, 28/07/1999 (ANA)

Under the terms of the pact, seamen will retroactively receive a pay increase of 3.5 percent from January 1 to June 30.

A second rise of 4.5 percent will be paid from July 1. Cruise ship workers will receive 4.0 percent from January to June, and 5.0 percent from July to December.

Athens News Agency

[18] Athens Foreign Exchange

Athens, 28/07/1999 (ANA)

Parities in Drachmas

Banknotes             Buying  Selling
US Dollar             303.721 310.763
Can.Dollar            201.019 205.680
Australian Dlr        195.265 199.793
Pound Sterling        482.707 493.899
Irish Punt            409.288 418.778
Pound Cyprus          557.484 570.410
Pound Malta           707.694 737.181
Turkish pound (100)     0.063   0.066
French franc           49.141  50.280
Swiss franc           201.361 206.030
Belgian franc           7.991   8.176
German Mark           164.810 168.631
Finnish Mark           54.214  55.471
Dutch Guilder         146.271 149.663
Danish Kr.             43.291  44.295
Swedish Kr.            36.613  37.462
Norwegian Kr.          38.636  39.532
Austrian Sh.           23.425  23.968
Italian lira (100)     16.648  17.034
Yen (100)             260.291 266.326
Spanish Peseta          1.937   1.982
Port. Escudo            1.608   1.645

Foreign Exchange      Buying  Selling
New York              303.721 310.763
Montreal              201.019 205.680
Sydney                195.265 199.793
London                482.707 493.899
Dublin                409.288 418.778
Nicosia               557.484 570.410
Paris                  49.141  50.280
Zurich                201.361 206.030
Brussels                7.991   8.176
Frankfurt             164.810 168.631
Helsinki               54.214  55.471
Amsterdam             146.271 149.663
Copenhagen             43.291  44.295
Stockholm              36.613  37.462
Oslo                   38.636  39.532
Vienna                 23.425  23.968
Milan                  16.648  17.034
Tokyo                 260.291 266.326
Madrid                  1.937   1.982
Lisbon                  1.608   1.645

Athens News Agency

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