Athens News Agency: Daily News Bulletin in English, 99-10-09

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

CONTENTS

[01] Simitis: Gov't will meet quake victims' needs; ND disputes damage estimates

[02] Chrysohoidis: Athens' efforts to combat terrorism acknowledged in US

[03] 'November 17' and 'ELA' on State Dept. list of threatening US interests

[04] Tsohatzopoulos on Turkey's EU prospects

[05] Major Patriarchate donation for damaged Turkish schools

[06] G. Papandreou, van der Stoel discuss Balkan minority issues

[07] Greek firms bid for Heracles' Italian owner

[08] Inflation holds steady at 2.0 pct in September

[09] Stocks edge up in jittery trade

[10] Bonds creep up in flaccid trade

[11] Drachma volatile against euro

[12] OA launches special offers for domestic flights

[13] Infosystem '99 opens in Thessaloniki

[14] Pantechniki to boost share capital

[15] Athens Foreign Exchange

[16] Greek-American leaders decry lack of progress on Cyprus issue

[01] Simitis: Gov't will meet quake victims' needs; ND disputes damage estimates

Mr. Simitis opened an off-the-agenda debate in Parliament on the 5.9 Richter earthquake, after the session was called by main opposition New Democracy (ND) leader Costas Karamanlis.

The session began with a minute's silence for the 143 victims of the earthquake, the majority crushed under tonnes of concrete when factories and apartment buildings collapsed.

The prime minister said his government was committed to apportioning blame to any persons found responsible for the collapse of buildings during the quake.

"It is our pledge that plenty of light will fall on this matter and that there will be no cover-up, so that such actions do not recur in the future, " he said.

He also noted that the majority of the buildings that collapsed were built between 1965 and 1980. Only two buildings built after 1990, when stricter building regulations came into force, collapsed. The government, he said, was determined to introduce stricter guidelines and regulations for private projects.

The state budget in 1999 will provide some 50 billion drachmas to restore some of the damage caused by the quake but the total bill will come to some hundreds of billions of drachmas, Mr. Simitis said.

Detailing what he called the prompt and courageous rescue efforts undertaken, Mr. Simitis said "the humanity in our country came through during this tragedy."

Problems in the entire procedure, he added, appeared at some levels of local government, namely, in coordinating with central administration and in terms of bureaucratic 'red tape'.

He also had harsh words for what he called "indescribable" instances of "profiteering and indifference to the health of the quake-stricken", an apparent reference to the distribution of spoiled food by some catering firms.

The PM reiterated that the homeless would not be living in tents for very long and that, along with rent subsidies, the government would ensure more permanent housing for the homeless with some 6,000 prefabricated houses.

Turning to the weeks of speculation and public concern over a possible new major quake in the Athens area, fuelled by the supposed ability of some seismology researchers to predict tremors, the prime minister counselled calm.

"The prediction of earthquakes is not possible," Mr. Simitis said, asking scientists to take into consideration "their social responsibilities".

-- New Democracy-- On his part, Mr. Karamanlis charged that the government was trying to redirect responsibility for problems in relief efforts onto local government, saying members of the Cabinet had "attempted to underestimate the extent of the damage". This latter factor had undermined the country's negotiating le-verage at the European Union, when it asked for support to restore the damages, he said.

He also said that existing emergency contingency plans - 'Xeno-crates' - were outdated and untried, while he criticised the state apparatus for lacking national planning during disasters or crises.

"The situation was exacerbated by the rumours of coming quakes," Mr. Karamanlis said, charging that this situation was also fuelled by statements from government officials.

He added that there was "unprecedented" delays in the distribution of tents for the homeless, a "tragic" situation in the hospitals, and delays in the documentation of damage, with 9,000 requests for inspections of buildings yet to be completed.

Mr. Karamanlis noted that the state was responsible for legalising illegally built dwellings and businesses, done, as he said, for "petty party or political reasons".

He called for the establishment of an inter-party watch committee to oversee the restoration of damage, rehabilitation programmes for those who lost their jobs because of the quake until their businesses begin again, the creation of 'safe havens' within urban areas in cases of quakes, compulsory insurance for all new buildings and exhaustive inspections of schools and hospitals, among others.

Mr. Karamanlis said the majority of citizens were "ashamed" at the current state apparatus, which was salvaged only by the efforts of the rescue teams.

In response, Mr. Simitis said Mr. Karamanlis' charge of a "state of shame" was unjustified and unjust, while the opposition was not giving credit due to the tens of thousands of people comprising the state and the hundreds of thousands working harmoniou sly to restore the damage.

"There were delays, but it is a mistake to dwell on these," he said.

-- Other parties -- Communist Party of Greece (KKE) Secretary General Aleka Papariga said both the prime minister and ND leader were dealing with the issue of the earthquake as a "hot potato" of secondary importance.

She called the claim that the state apparatus promptly shifted into gear "propaganda", and said that files on buildings that collapsed had been deliberately concealed to avoid the long arm of the law.

The KKE leader called government measures in favour of the quake-stricken nothing more than "crumbs" and proposed more financial support for municipalities and increases in rent and home rebuilding subsidies as well as emergency grants.

Coalition of the Left (Synaspismos) leader Nikos Constantopoulos said Greece was the most seismically active country in Europe and the sixth in the world, but that Greek governments had effectively been indifferent to this fact.

"There are documented statements before the quake from the World Seismological Congress in Thessaloniki in August 1997 in which the conclusions contain serious indications about the possibility of medium-term projections of earthquakes, as well as deman ds for a contemporary anti-seismic protection, " he said.

He said money should be moved from ministries "wasting it to advertise the government's work" to finance temporary hospital units serving the needs of the quake-stricken.

He criticised the government for failing to provide open areas from building activities, citing relevant decisions to allow construction on former military bases and proposed measures to provide full reorganisation of seismic research and protection.

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said that earthquakes were not for "petty party exploitation".

He, too, criticised the government for its criticism against local government bodies, saying it had attempted to fan public fears by the news of an impending quake.

He questioned government advertising campaigns under the slogan 'we made it' and whether this money would have been better spent with support for the quake-stricken.

-- Interior minister -- Interior Minister Vasso Papandreou wound up the debate, saying that the quake had put the state machine through its paces "and it had passed".

She thanked the civil servants involved in the relief effort and criticised the opposition for its proposals, saying the public wanted the implementation of the government's measures, which those affected by the quake found satisfactory.

The census to be undertaken on the quake-stricken this weekend, she said, would also provide a better basis for dealing with their problems, as would the second round of inspections being carried out on damaged buildings by early November.

Local government, she added, had shaken itself from the initial shock of the quake and moved quickly and efficiently - barring a few exceptions - with central administration.

She said the public support in the wake of the quake had prompted plans to introduce legislation on volunteerism. Athens News Agency

[02] Chrysohoidis: Athens' efforts to combat terrorism acknowledged in US

Mr. Chrysohoidis held talks on combatting organised crime and terrorism with CIA Director George Tenet, US Attorney General Janet Reno, and Undersecretary of State for Political Affairs Thomas Pickering.

"The general outcome of the meetings is that we were given the opportunity to hear first-hand the American officials' views on the issue of terrorism and of crime, in general. They were very useful because we were also given the opportunity to outline o ur views on these issues," Mr. Chrysohoidis told reporters.

"We set out in detail the steps being taken to solve this problem, the sincere and good disposition there exists for institutional cooperation with them (the US), which has existed for years, and how that cooperation can become more efficient within the institutional frameworks," he said.

He said there continued to be weaknesses, but currently "substan-tial steps and actions are being taken and policies applied to solve this problem".

"Cooperation with the Americans and anyone is welcome, within the framework of the function of the Greek state," Mr. Chrysohoidis said, adding that US officials told him that any actions taken were Athens' prerogative, "and that they are at our disposal if we desired their collaboration".

The minister said he expressed interest in continuation of the occasional training of Greek police in the US, noting that 50 police officers had recently visited the United States for training in crisis management.

He said the talks also touched on combatting crime in the Balkans, where a discussion is taking place on introducing a police force to take on the task of ensuring order and security in the Kosovo region and the wider Balkans.

Greece, he said, would submit a note containing its views "because for us bringing order to the region is a crucial issue".

"Together with Italy we shall submit a joint proposal to the EU summit in Tampere (Finland) regarding Albania, while for the Balkans we are also proposing a plan to combat crime," he said.

"Kosovo is at the core of the problem, because arms and drug trafficking starts out from there. The military forces are unable to impose police order and security in the region," he added.

Later, the State Department's coordinator of the counterterrorism department, Michael Sheehan, said after a meeting with Mr. Chrysohoidis that "we have confidencenein Mr. Chrysohoidiss who described to us what he does in order to mobilise his ministry n ot only against terrrorism buyt also against criminal elements active in Greece".

Athens News Agency

[03] 'November 17' and 'ELA' on State Dept. list of threatening US interests

The list, which is updated every two years, also included the two shadowy urban terrorist groups in 1997.

The Kurdish Workers' Party (PKK) and "Dev Sol", active in Turkey for many years, are also included on this year's list. Athens News Agency

[04] Tsohatzopoulos on Turkey's EU prospects

He added that this development, if Turkey also met all the guidelines set by the last two EU summits, could cover the prospect of Cyprus' accession to the EU.

The defence minister, who was speaking in Thessaloniki during a graduation ceremony for military cadets, said there was "a climate of consciously choosing to reduce tension in the stance and behaviour of the two countries". Athens News Agency

[05] Major Patriarchate donation for damaged Turkish schools

The Patriarch also met with the Turkish ministers of culture, Istemihan Talay, and tourism, Erkan Mumcu, and discussed issues related to events marking the new millennium in Christian monuments throughout the country.

Athens News Agency

[06] G. Papandreou, van der Stoel discuss Balkan minority issues

The OSCE commissioner is in Greece to give a lecture on minorities in SE Europe.

Both men agreed on the need for protection of minorities in the Balkans along with respect for existing borders.

Mr. Papandreou said he brought to Mr. van der Stoel's attention issues related to the Greek minority in Turkey - such as the continuing closure of the Halki School of Theology and the dwindling ethnic Greek populations on the islands of Imvros and Tened os - as well as in Albania.

He also briefed Mr. van der Stoel on the situation vis-a-vis the Moslem minority in Thrace.

"There was reference to many minority problems in southeast Europe, as well as the dialogue on minorities under way in Greece," Mr. van der Stoel said.

Afterwards, he met with main opposition New Democracy cadres Vassilis Magginas and Yiannis Balinakis.

According to a ND press release, the party officials discussed Athens' stance regarding religious minorities in Greece. Athens News Agency

[07] Greek firms bid for Heracles' Italian owner

The boards of Calcemento and Compart SpA, its parent, met on Friday to debate the offer and an announcement would be made today, a Calcemento spokesman told the Athens News Agency.

In the first bid, Technodomiki of Greece announced yesterday that a consortium of domestic firms had submitted an offer in Milan.

The consortium comprises Technodomiki, Aktor, TEB, AEGEK, GEK, Intracom Construction, Greek Energy and Bank of Piraeus.

In the second bid, Mechaniki, a Greek listed engineering contractor, submitted a separate offer for Calcemento.

Its managing director, Marina Emfietzoglou, said in a statement that the company had secured a letter of guarantee from Alpha Credit Bank, the country's largest private sector credit institution.

News of bidding for the consortium propelled Calcemento's share on the Milan bourse 4.50 percent higher from 1.0 percent down.

Meanwhile, the Blue Circle Group of the United Kingdom had signed a preliminary agreement in May to acquire Calcemento for 400 million pounds sterling. The agreement expired in September.

Some of Greece's most influential businessmen - Sallas, Bobolas, Kokkalis and Kallitsantsis - are among shareowners of companies in the bidding consortium.

According to market sources, the group has offered 230 billion drachmas for the controlling stake in Calcemento, and therefore AGET Heracles.

The Greek bid would return Heracles to Greek control ahead of major construction projects for funding under the European Union's Third Community Support Framework.

A spate of building works is beginning for the 2004 Olympic Games to be hosted by Athens.

Concretum owns 54 percent of AGET Heracles and 72.65 percent of Halkis Cement (21.65 pct directly and 51 pct through AGET).

Bank of Tokyo Mitsubishi and Piraeus Prime Bank are acting as consultants in the bid by the Greek consortium. Athens News Agency

[08] Inflation holds steady at 2.0 pct in September

Price rises in fruit and vegetables of up to 30 percent and a 5.5 percent increase in private healthcare halted the consumer price index's decline in previous months.

The CPI increased by 1.9 percent in September from the previous month.

Year on year inflation was running at 5.2 and 4.9 percent respectively in September 1997 and 1998.

NSS secretary general Nikos Karavitis was optimistic about the outlook for inflation due to more stable prices in international oil markets.

Athens News Agency

[09] Stocks edge up in jittery trade

The general index ended 0.25 percent higher at 5,926.08 points from 5, 911.47 at the previous close.

The market started the day cautiously higher to fall as much as 1.80 percent by midday.

It recovered in the last half hour of the session helped by selective buying in banks and leasing stocks. Turnover was 430 billion drachmas.

Sector indices ended as follows: Banks (+1.04 pct), Leasing (+2.31 pct), Insurance (+0.84 pct), Investment (+0.26 pct), Construction (+0.26 pct), Industrials (-1.11 pct), Miscellaneous (+1.18 pct) and Holding (-0.01 pct).

The parallel market index for smaller capitalisation stocks fell 0.31 percent while the FTSE/ASE 20 index for blue chip and heavily traded stocks rose 0.52 percent to 2,994.01 points.

Decliners led advancers by 166 to 126 with another 13 issues unchanged.

A total of 32 shares ended at the day's 8.0 percent limit up, while another five ended at the day's limit down.

Danailides Clinic's share price soared 99 percent.

Macedonian Spinning Mills and Olympiaki Techniki were the most heavily traded stocks.

National Bank of Greece ended at 24,350 drachmas, Alpha Credit Bank at 24, 300, Commercial Bank at 28,200, Titan Cement at 39,000, Hellenic Petroleum at 5,300, Intracom at 31,600, Minoan Lines at 9,800, Panafon at 8,090 and Hellenic Telecoms at 7,200. Athens News Agency

[10] Bonds creep up in flaccid trade

Electronic trade dropped to 11 billion drachmas from around 24 billion drachmas in the previous two sessions and 12 billion drachmas on Tuesday.

Of yesterday's turnover, buy orders accounted for much of the total.

The benchmark 10-year bond, which was still trading below par around 96.30- 96.95, showed a yield of 6.83 percent from 6.85 percent a day earlier and 6.80 percent in the previous four trading days.

The 10-year paper's yield spread over German bunds was 167 basis points from around 168 basis points in the previous session and 169 to 170 basis points on Wednesday. Athens News Agency

[11] Drachma volatile against euro

At the central bank's daily fix, the euro ended slightly lower versus the drachma.

The European currency was set at 328.400 drachmas from 328.600 drachmas in the previous session and 328.370 drachmas on Wednesday.

The Bank of Greece stepped into the market, selling eight million euros in order to stabilise trade, which was shallow.

The dollar finished higher against the drachma.

At the fix, the US currency was set at 307.790 drachmas from 306.650 drachmas a day earlier and 305.170 drachmas on Wednesday. Athens News Agency

[12] OA launches special offers for domestic flights

OA, the national carrier, is offering fares at 10,000 drachmas return for the period 11-26 October from Athens to Rhodes, Iraklio, Hania, Thessaloniki and Corfu.

The fares apply to the day's first and last flights. Athens News Agency

[13] Infosystem '99 opens in Thessaloniki

Leonidas Tzanis, Undersecretary for the Interior, Public Administration and Decentralisation, inaugurated this year's conference.

In his speech he underlined the significance of the conference to the ministry, and said he expected the conference's findings to be useful.

Anastasios Tzikas, chairman of the Union of Information Technology Enterprises (SEPBE), said he hoped that the convention "will be a laboratory to produce proposals ahead of the Third Community Support Framework".

"It is the last chance given to support the regional information technology industry in Greece," he said.

SEPBE secretary Vyron Riginos said "the country is not spending as much as it should on information technology".

Last year's spending represented 0.9 percent of the country's gross domestic product (GDP) against 2.45 and 5.0 percent in the European Union and the United States respectively.

Macedonia-Thrace Minister Yiannis Magriotis acknowledged that spending lagged the EU average but noted that spending on information technology had increased steadily in the last five years and predicted a brighter future for the sector with the support of funds from the Third Community Support Framework. Athens News Agency

[14] Pantechniki to boost share capital

The two plans are expected to be discussed at an extraordinary general shareholders' meeting due October 20.

The share capital increase envisages the capitalisation of taxed reserves and a rights issue.

The new money will be used to finance increased commitments stemming from Pantechniki's holding in a group building the Athens ringroad.

Pantechniki has a 10 percent stake in the Attiki Odos consortium. The proceeds will also finance a renewal of equipment and participation in new consortiums.

In addition, Pantechniki plans to expand into the real estate market in the future.

The company expects its turnover to exceed 10 billion drachmas this year with pre-tax profits at 1.2 billion drachmas. Athens News Agency

[15] Athens Foreign Exchange

Banknotes

Buying Selling US Dollar 305.328 312.407 Can.Dollar 207.288 212.094 Australian Dlr 200.667 205.319 Pound Sterling 503.976 515.661 Irish Punt 413.646 423.237 Pound Cyprus 563.952 577.027 Pound Malta 718.805 748.755 Turkish pound (100) 0.060 0.063 French franc 49.663 50.815 Swiss franc 204.357 209.095 Belgian franc 8.076 8.263 German Mark 166.565 170.427 Finnish Mark 54.791 56.061 Dutch Guilder 147.829 151.256 Danish Kr. 43.829 44.845 Swedish Kr. 37.426 38.294 Norwegian Kr. 39.188 40.097 Austrian Sh. 23.675 24.224 Italian lira (100) 16.824 17.214 Yen (100) 284.228 290.818 Spanish Peseta 1.958 2.004 Port. Escudo 1.625 1.663

Foreign Exchange Buying Selling New York 305.328 312.407 Montreal 207.288 212.094 Sydney 200.667 205.319 London 503.976 515.661 Dublin 413.646 423.237 Nicosia 563.952 577.027 Paris 49.663 50.815 Zurich 204.357 209.095 Brussels 8.076 8.263 Frankfurt 166.565 170.427 Helsinki 54.791 56.061 Amsterdam 147.829 151.256 Copenhagen 43.829 44.845 Stockholm 37.426 38.294 Oslo 39.188 40.097 Vienna 23.675 24.224 Milan 16.824 17.214 Tokyo 284.228 290.818 Madrid 1.958 2.004 Lisbon 1.625 1.663 Athens News Agency

[16] Greek-American leaders decry lack of progress on Cyprus issue

The three-day meeting in Washington brought together more than 45 of the United States' top policy-makers in the Clinton administration and Congress, more than 100 Greek-American leaders from across the countries and Greek personalities from around the world.

A statement adopted by the conference delegates noted that participants were "extraordinarily disappointed by the lack of progress on the Cyprus issueI"

The participants also said they were "pleased by the continuing commitment of leaders in the US Congress to press, through the use of incentives and disincentives, for a Cyprus settlement". Athens News Agency/END

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