Under the law, objections to the outcome of the tender may be raised within a week.

The tender was called by Olympic Village SA, a subsidiary of the Organization for Labor Housing, which aims to complete the process by May 2 when Jacques Rogge, deputy president of the International Olympics Committee, visits Athens to check on progress in preparation for the Games.

[02] Papandreou leaves Tuesday for visit to Morocco

Athens, 24/04/2001 (ANA)

During his two-day stay, Papandreou will hold talks with his Moroccan counterpart Mohamed Benaissa and prime minister Abderrahmane Youssoufi, while it had yet to be confirmed whether he would also be received by King Mohammed VI.

Papandreou is due to discuss bilateral relations, EU-Morocco relations, and the relations being developed in the context of Mediterranean cooperation, as well as exchange views on the developments in the Middle East, Greek-Turkish affairs and the Cyprus issue with the Moroccan officials.

Sources said that talks would further include matters concerning the Arab Magreb countries, the Western Sahara, and a new fishing agreement currently being negotiated with the EU.

[03] Greek ruling PASOK party secretary meets Lebanese President

BEIRUT,24/04/2001 (ANA - P. Dimitropoulos)

He stressed that Greece should assume the role of the intermediary within the European Union, to enable the "15" nation bloc to play a more active political role in the Middle East.

Lahud also said that even though the civil war in his country ended in 1989 and the country has entered the fast track of economic reconstruction, many problems remain unresolved, such as conflicts between the political and religious groups, relations with Israel and the Arab countries and the Palestinian problem.

On his part, Skandalidis reassured Lahud that Greece would continue to undertake initiatives to promote "universal peace" in the Middle East, stressing that "any and all possible solutions for the Middle East should include the return of the refugees to their homes, while guarantees should be combined with the notion of stability and equitable development of all countries of the region".

Lebanon hosts 35,000 Palestinian refugees.

Skandalidis is in Lebanon as part of a tour of European, Asian, Middle East and N. African countries.

[04] Greece calls for 'averting faits accomplis' after pro-independence coalition's slim victory in Montenegro elections

Athens, 24/04/2001 (ANA)

"Greece is in favor of the avoidance of the creation of faits accomplis and violent changes to the borders of the Balkans," Greek foreign ministry spokesman Panos Beglitis told a press briefing Monday after analysts projected a slim victory by the ruling pro-independence government of President Milo Djukanovic in Montenegro in Sunday's parliamentary elections.

Beglitis said the partners, Serbia and Montenegro, should seek "constitutional arrangements within the framework of the Federal Republic of Yugoslavia".

"It is up to the leaderships of Montenegro and Serbia to proceed with a dialogue far removed from the rationale of faits accomplis," Beglitis said, warning that "such a rationale contributes to destabilizing situations".

[05] Greece-Turkey CBM talks resume Tuesday in Brussels

Athens, 24/04/2001 (ANA)

The talks will are headed by the Greek and Turkish permanent representatives to the Alliance, Ambassadors Vassilis Kaskarelis and Onur Oymen respectively.

Recently, Greece's foreign minister George Papandreou and his Turkish counterpart Ismail Cem reaffirmed the two countries' determination to forge on with the CBM talks.

The talks have an open agenda, which means that either side may bring up for discussion any issue it deems appropriate.

It is recalled that agreement has already been reached on mutual briefing by the two sides on matters concerning the time and place of strategic military exercises so as to avert problems arising.

[06] Turkish armed forces chief says armaments programs postponed and not cancelled

ANKARA,24/04/2001 (ANA - A. Ambatzis)

Speaking to reporters, Kivrikoglu said "we postponed these programs, we did not cancel them. It concerns a short-term, medium-term and long-term postponement."

He also commented on the issue of Confidence-Building Measures in the Aegean, saying "there are developments on this issue which will increase parallel to the development of bilateral relations."

The Turkish general staff announced several days ago that it is postponing a series of armaments programs amounting to 19.5 billion dollars.

[07] Ukraine's Yushchenko in Greece on Tuesday

Athens, 24/04/2001 (ANA)

Both men are expected to take press questions following a noontime meeting. A luncheon in honor of the Ukrainian premier is scheduled afterwards.

[08] Deputy foreign minister holds meetings with overseas Greeks

BRUSSELS,24/04/2001 (ANA - M. Spinthourakis)

Niotis also attended the 2nd Conference of Youth in Belgium, organized by the Federation of Greek Communities under the sponsorship of the Overseas Hellenism General Secretariat and Europe's Council of Hellenes Abroad.

Addressing the youth conference, Niotis said Greece is currently playing an important role, having secured equal accession and a leading role in the EU, while the stabilizing and peaceful role being played by the country in the wider Balkan region, being a member of the EU and NATO, is equally important.

Niotis also called for the young overseas Greeks' activation to help strengthen even further the volunteer movement for the 2004 Athens Olympic Games.

[09] Cyprus' reunification must be substantial and not only in name, EU Commissioner says

BERLIN,24/04/2001 (ANA - P. Stangos)

"The European Union's basic demands (regarding a solution of the Cyprus problem) is that a unified Cyprus must and can remain effective within the European mechanisms of decision making and in confronting difficult situations," he said.

"We do not need a nominally unified Cyprus, but a Cyprus which can really be effective in international affairs," he added.

Diplomatic sources noted that Verheugen's statements were in answer to a United Nations' plan to allow for a Turkish military presence on the island after an agreement is reached, in efforts to lure Turkish Cypriot community leader Rauf Denktash back to the negotiations table.

Verheugen, however, expressed doubts during the interview over the possibility for a resolution of the Cyprus problem before the conclusion of the country's Union accession negotiations.

"The UN is responsible for the peacemaking process and we are responsible to lead Cyprus to the European Union," the Commissioner said.

He stressed that the Commission's only concern, in regards to the UN talks on the different models and scenarios of a political solution to the Cyprus problem, is the compatibility of the solution with the Union's "system of basic principles" and the community's legal system.

"The time is pressing and none can predict with certainty the extent to which we can really achieve a solution of the Cyprus problem, before the first round of enlargement becomes current," Verheugen said, adding that this uncertainty is a "very serious problem".

[10] Greek National Defense General Staff Chief discusses defense doctrine with Cyprus DM

NICOSIA, 24/04/2001 (ANA)

"We are proceeding to achieve all targets and everything necessary has been done in the framework of all that has been agreed by staffs in Athens and Nicosia," he said.

Paragioudakis, who visited the National Guard's General Staff in the morning and held talks with Defense Minister Socratis Hasikos, said Greece is going ahead with the next steps in the joint defense doctrine and is doing everything it can to meet its requirements.

Hasikos said great efforts have been made in strengthening the defense of Cyprus and expressed certainty that the effort will continue.

National Guard Chief Evangelos Florakis briefed Paragioudakis on its operational capacity and the size of the Turkish occupation forces.

Florakis said the National Guard's operational capabilities are very great and that the strengthening and upgrading of defense is continuing.

[11] Albanian gov't committed to respect EU procedures, Beglitis says

Athens, 24/04/2001 (ANA)

Beglitis was commenting, during a press briefing, on the positions of the Greek minority with respect to the recent population census in the neighboring Balkan country.

Albania, Beglitis said, was in negotiations with the European Union aimed at drafting a Stabilization and Association Agreement, a basic condition of which, he stressed, was respect of the rights of the Greek minority.

He said this was stressed in a letter by foreign minister George Papandreou to EU External Relations Commissioner Chris Patten and also by ministry secretary general George Savvaidis during his recent visit to Tirana.

Albania and the EU agreed in November 2000 to set up a joint

High Level Steering Committee to work together on Albania's preparations for opening negotiations with the EU on a Stabilization and Association Agreement.

[12] Trade unions to hold conference on social security reform

Athens, 24/04/2001 (ANA)

General Confederation of Workers of Greece (GSEE) announced on Monday the holding of a conference for Tuesday of the presidiums of all major trade unions to discuss the reform package proposed by the government, while on Wednesday they will meet with Coalition for the Left and Progress (Synaspismos) leader Nikos Constantopoulos and Communist Party of Greece (KKE) leader Aleka Papariga.

GSEE also scheduled for May 8, a meeting of its General Council to discuss further action against the reform.

Meanwhile, the Supreme Civil Servants' Administrative Council (ADEDY) called on the government to withdraw items of the reform that limit pension rights and demanded that the ruling PASOK government abolish laws regarding the social security system that were enacted during the 1990-1993 period by the then government, now main opposition, New Democracy party.

Following the lead of GSEE, the Panhellenic Seamen's Federation announced that it will honor the call for a 24-hour strike on Thursday, thus all passenger ships will not sail for their destinations.

[13] Government reiterates call to social dialogue; Damanaki comments on retirement age for women

Athens, 24/04/2001 (ANA)

The spokesman said that Labor Minister Tassos Yiannitsis would be meeting with New Democracy leader Costas Karamanlis on Wednesday at noon and with Democratic Social Movement (DHKKI) leader Dimitris Tsovolas on the same day at 3:00 p.m.

Reppas also announced that a debate in Parliament on the Greek economy scheduled for Wednesday had been postponed because of prior commitments by ND.

Meanwhile, commenting on the planned social security reforms, Coalition of the Left deputy and former leader Maria Damanaki stressed that retirement at a minimum age of 65 for both men and women was a mistake and unfair.

According to Damanaki, it was a proven fact that the burden of caring for children and old people in Greek families fell exclusively on women and she stressed the need for positive measures in favor of women in insurance regulations.

She also dismissed the two-year bonus per child proposed by the Labor ministry, saying that this did not redress the inequality because it did not affect age of retirement but only the size of pensions.

She concluded by saying that the age of retirement for women should be at least five years less than that for men, while she also pressed for retaining pensions after 35 years of work.

[14] Finance ministry says gov�t to discuss new tax on high incomes

Athens, 24/04/2001 (ANA)

"It is a proposal to be discuss in the negotiating table," Fotiadis said. He clarified, however, that any decisions would be taken by National Economy and Finance Minister Yiannos Papantoniou.

Papantoniou last week categorically dismissed talk of imposing any new taxes.

Addressing a seminar on finance ministry's new electronic services, Fotiadies said electronic services have significantly improved to the benefit of taxpayers and at the same time lowering management costs, currently exceeding 800 billion drachmas annually.

[15] Six private power production permits approved

Athens, 24/04/2001 (ANA)

Some 20 requests had been submitted to the recently formed Energy Regulatory Authority, known by its Greek acronym of PAE, since Feb. 19. Three requests were rejected on grounds of failing to meet specifications (Tractebel-AEGEK, Titan and Edison) while the others will be re-evaluated, according to reports.

The six private units are projected to have a total production capacity of 2,156 megawatts.

The breakup of the state's power production monopoly in Greece emanates from a Community directive deregulating the sector throughout the Union.

All six successful applicants submitted permits for power production units outside Attica prefecture -- which encompasses the greater Athens and Piraeus areas, Greece's most densely populated and industrially saturated region.

Along those lines, 10 applications eyeing production within Attica prefecture have been initially blocked temporarily due to environmental concerns.

The first six permits were issued to: -- ENELCO, for a 440-megawatt unit at Chaeronea, in Viotia prefecture, north of Attica. -- ENELCO, for a 440-megawatt unit in Evros prefecture of extreme northeast Greece. -- AA Holdings, for a 390-megawatt unit in the Oinofyta industrial zone, also north of Attica. -- Terna-GEK, for a 250-megawatt unit either at the Agios Nektarios site or the industrial district of Larymna - both in Viotia prefecture. -- Mytilineos S.A. for a 246-megawatt unit in the central port city of Volos. -- Hellenic Petroleum, for a 390-megawatt unit at the Thessaloniki industrial zone.

According to government estimates, demand for electrical power in Greece is expected to rise 4 percent yearly for the next decade.

[16] Public works minister discusses land register and Olympic projects in Brussels

BRUSSELS,24/04/2001 (ANA - Y. Zitouniati)

On the question of the "quantitative divergence" from initial planning on the National Land Register, Laliotis impressed upon Barnier the great importance of the project for Greece, which is the only EU country lacking a land register, accepting whatever control on the transparency and appropriate management of funds to date and without the disbursement for the continuation of work being blocked.

About 50 billion drachmas have already been disbursed and another 84 billion drachmas remain until 2006.

"There is no questioning of the appropriate management, legality and transparency in the development of work so far and we request whatever relevant check to take place to certify this," he said.

Laliotis also stressed the need for the project to be continued and completed as soon as possible.

Laliotis discussed alternative solutions with the environment commissioner on shaping the Schinias region and creating an artificial lake to serve rowing events during the 2004 Olympic Games, which will not draw reactions neither from the European Commission nor environmentalist organizations.

[17] National economy minister says Turkey's funding by EU is in Greece's interest

Athens, 24/04/2001 (ANA)

Papantoniou made his statement on leaving the Maximos Mansion following a meeting of the Interministerial Committee on the Olympic Games.

"Economic and political stability go together. And for this reason we are with are European partners in supporting this effort," Papantoniou said on the decision for Turkey's funding by the EU with 10 billion dollars, to be obtained from the International Monetary Fund (IMF) and the World Bank, to help it to tackle its economic crisis.

Commenting on possible government concessions on the social security issue, Papantoniou said "what is important is for all agencies, all the parties involved and all organizations to put forward their views on social dialogue responsibly, just as the government has done."

[18] Greek mutual funds' returns remain negative

Athens, 24/04/2001 (ANA)

More analytically, domestic equity mutual funds return a maximum of -12.50 percent since the start of 2001, with the average return of this category of funds at -4.2 percent.

Domestic combined mutual funds' average return is -1.7 percent this year, with a maximum -4.5 percent in some cases.

Money market mutual funds, a product preferred by the most conservative investors seeking slightly higher returns than savings rates, return an average 1.2 percent in the first four months of 2001.

Mutual funds management analysts expressed guarded optimism over a recovery in the market ahead of a formal upgrade of the Greek stock market by MSCI to a mature market, a move likely to be followed by a wave of foreign capital inflows in Greek assets.

They noted, however, that the impact of the upgrade on the Athens bourse was still uncertain in the medium-term because of the small participation of a MSCI Greece index on a wider European and International stock market index, reflecting a low capitalization value of the Greek market.

Experts said that it would take three to four years for the impact of the upgrade to be clearly visible both to the market and to foreign institutional investors.

Small investors, however, seem to remain calm, avoiding any hasty moves to liquidate their positions both in mutual funds and the stock market awaiting better days ahead.

New products offered by Greek banks, pledging higher returns, does not seem to have convinced investors by now. A new series of mutual funds are recording losses and any positive returns are not much higher than savings rates.

[19] Hellenic Telecoms to participate in European Telecoms Forum

Athens, 24/04/2001 (ANA)

An OTE statement said that the organization was supportive of such initiatives as it acknowledged the significance of new fundamentals resulting from a full deregulation of the Greek telecoms market.

The forum is organized by the European Network of Communication and Information (ENCIP) and is aiming to help in the exchange of views and experiences in regulatory issues and telecommunications policy between EU institutions and Mediterranean countries.

OTE's support of the forum was in line with a recent decision of its board to open up to other telecoms firms, which now were seeing as possible customers.

[20] Salomon calls Greek social insurance reform 'half-measures'

Athens, 24/04/2001 (ANA)

Salomon's consultant, Miranda Xafa, said in market report for customers that more measures would be needed in the future if the current ones were implemented.

Xafa also doubted the government's ability to keep to its pledge of not raising taxes in order to meet a deficit in the social insurance system, which is expected to grow over the next decade.

[21] Hellenic Petroleum to build electricity plant in Thessaloniki

Athens, 24/04/2001 (ANA)

The 390-megawatt plant with an estimated annual turnover of 33 billion drachmas will cost 70 billion drachmas to build and create 40 new jobs, Tzellas said.

The plant should be ready in 32 months, he added.

[22] State boosts procurements spending in 2001

Athens, 24/04/2001 (ANA)

The main reason for the increase is implementation of the European Union's Third Community Framework, which is co-funding a wide range of projects with the government.

[23] Gov't extends OA sale tender until May 14

Athens, 24/04/2001 (ANA)

The latest extension was sought by the four bidders in the tender to give them time to forge alliances before submitting binding offers by the deadline.

The previous extension until April 30 was aimed at giving the bidders more time to study the airline's dossier and prepare their offers. The original deadline was on April 20.

The national economy ministry recently awarded the valuation of Olympic Airways to international auditors Deloitte & Touche Finance.

The valuation is due to be submitted on April 30.

Deloitte & Touche Finance has acted in the past as a consultant to the European Union on the Greek airline, and is familiar with the company's structure, finances and operations.

[24] Greek launches EU funds monitoring committee

Athens, 24/04/2001 (ANA)

The monitoring committee's task will also be to evaluate progress on government targets, to approve any alterations, to supervise the work of administrative authorities and to approve annual management reports.

[25] European Commission delegation in Greece discusses EU enlargement with ambassadors

Athens, 24/04/2001 (ANA)

The purpose of the meeting was to brief participants and exchange views on EU enlargement and the future strategy to be followed in Greece on the issue during the 2001-2006 period.

[26] European Broadcasting Union delegation satisfied with progress of Olympic Games preparation

Athens, 24/04/2001 (ANA)

Kapralos said "the EBU's delegation showed great interest in our preparation and was very satisfied with our progress. In any case, the European networks have a tradition in promoting Olympic Games with their live broadcasts. Contacts with the leadership of all European Broadcasting Networks will continue."

[27] Greek stocks end lower in thin trade

Athens, 24/04/2001 (ANA)

The general index ended 0.25 percent lower at 3,263.20 points, off the day's lows of 3,247.52 points. Turnover was a low 129.30 million euros, or 44.06 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.35 percent lower at 1,912.02 points, and the FTSE/ASE 40 index rose 0.24 percent to 381.15 points.

Sector indices ended as follows: Banks: 7,041.20 -0.70% Telecoms: 1,091.02 -0.68% Insurance: 1,455.01 -0.30% Investment: 1,161.58 -0.80% Construction: 1,549.33 +3.08% Industrials: 1,948.32 -0.13% Holding: 3,730.75 +0.72% Base metals: 1,001.24 -0.03% Minerals: 1,102.25 +1.08% Publishing: 1,002.33 -0.41% Textiles: 1,184.05 -0.39% Retailing: 1,158.92 +0.05% IT: 1,097.78 +0.50% IT solutions: 1,013.79 +0.05% Wholesale: 967.28 +0.26% Food & Beverages: 906.57 -0.33%

The parallel market index for smaller capitalization stocks ended at 328.61 points, up 0.18 percent.

Broadly, decliners led advancers by 182 to 138 with another 41 issues unchanged.

Vardas rose 22.81 percent on the first day of trading in the market. Lanacam, Notos Com, Druckfarben Hellas, Mihaniki, Technodomiki, Vioter, Atticat, Parnassos, Remek and Sigalas scored the biggest percentage gains, while Despec Hellas, Viosol, Sound & Vision, Daring, Xylemporia, Faliro Medical, Papafilis, Active, Elfico and Hadzikraniotis suffered the heaviest losses.

National Bank, Hellenic Telecoms, Panafon, Alpha Bank and Technodomiki were the most heavily traded stocks.

Leading shares' closing prices (in euros): National Bank: 43.86 Alpha Bank: 31.80 Commercial Bank: 54.22 Egnatia Bank: 5.60 Eurobank: 18.08 Piraeus Bank: 14.60 Lambrakis Press: 13.92 Altec: 7.04 Intrasoft: 11.68 Technodomiki: 7.74 Titan Cement: 43.00 Hellenic Telecoms: 16.40 Panafon: 7.20 Hellenic Petroleum: 9.58 Attica Enterprises: 8.78 Intracom: 21.34 Mytilineos: 8.38 Minoan Lines: 5.12 Viohalco: 11.14 Coca Cola HBC: 16.32

Derivatives show 5.65 pct volume rise in March vs. Feb: The Athens Derivatives Exchange in March posted a 5.65 percent increase against February in the number of contracts traded, authorities said in a statement on Monday.

Contracts in March totalled 354,690 contracts from 335,714 February, the statement said.

The rise stemmed mainly from the fact that there were more trading days in the month at 22 against 19 in February, it added.

Equity futures end down, roughly tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished lower on Monday, roughly in line with the bourse indices on which they are based, traders said.

The FTSE/ASE 20 index closed 0.35 percent down, and the FTSE/ASE 40 ended 0.24 percent higher.

Traded were 5,464 contracts on turnover of 43.9 million euros.

Bond prices rise in brisk trade: Bond prices in the domestic secondary market on Monday finished higher in heavy trade for the second straight session after three declines.

The Greek benchmark 10-year bond showed a yield of 5.43 percent from 5.16 percent a day earlier.

The yield spread over German bunds was 51 basis points, the same as in the session before.

Turnover through the central bank's electronic system totalled 1.08 billion euros (370 billion drachmas) from 1.37 billion euros (467 billion drachmas) a trading day earlier.

Buy orders accounted for the bulk of turnover.

[28] Ecumenical Orthodox Patriarch to visit Budapest on Tuesday

VIENNA, 24/04/2001 (ANA - D. Dimitrakoudis)

During his visit in the central European republic Vartholomeos will be granted the country's highest award, given usually only to state leaders.

Hungary's Prime Minister Viktor Orban will hand the award to Vartholomeos instead of the ailing Madl.

Vartholomeos will also inaugurate the Patriarchate's new office and chapel site, purchased by the Hungarian government and donated to the Patriarchate.

While in Budapest, Vartholomeos will announce the canonization of the first Christian king of Hungary Stephanos and Byzantine Bishop Ierotheos as they were responsible for the introduction of Christianity in the country.

[29] Late president Karamanlis lauded in two-day memorial conference in Thessaloniki

Athens, 24/04/2001 (ANA)

Karamanlis died three-years ago on April 23.

Main opposition New Democracy (ND) leader Costas Karamanlis, nephew of the founder of ND, and Culture Minister Evangelos Venizelos lauded the contribution of the late president to Greece and its democratic institutions.

"At a time (in 1974 right after the seven-year junta) when the country was hurt, Karamanlis laid, without any foreign aid, the foundations of first-ever seen projects, plans and visions," Karamanlis said.

"He had a huge asset and great advantage, he believed in simple and basic principles," Venizelos said.

[30] Greek-Turkish women's action group discusses disarmament

ISTANBUL, 24/04/2001 (ANA - A. Kourkoulas)

Former wife of late prime minister Andreas Papandreou, Margaret led the Greek delegation and participated in the press conference that followed the meetings.

"Disarmament is a means to awaken from the excessive militarism, while funds that stem from disarmament could be funneled to social and economic development programs," Papandreou said.

The Greek delegation will remain in Turkey until Thursday.

[31] Greek author wins award for novel in Germany

Athens, 24/04/2001 (ANA)

The committee, composed of German writers, critics and publishers, chose the book after convening in the city of Leipzig during the local book fair.

The novel refers to Greece in the '60s and the story of a captain, through the eyes of an elderly judge, who files a lawsuit at the Supreme Court for not being promoted.

The German edition of the book will be presented next October in the Frankfurt book fair.

[32] Greek, Cypriot nationals were among guests at besieged Istanbul hotel

ISTANBUL, 24/04/2001 (ANA - A. Abatzis)

The four individuals were reported safe and well.

One of the two Greek nationals, Anastasios Fountis, has apparently already left for Rome while the other, Lefteris Polemis, remained in Istanbul to attend a conference.

The two Cypriot nationals were identified as Andreas Haralambous and Anarita Hatzigavriil.

The gunmen, who took over the hotel on Sunday night, said they were protesting Russian action in Chechnya.

[33] Appeals court postpones Lesperoglou trial on forged documents charge

Athens, 24/04/2001 (ANA)

Lesperoglou had initially been sentenced to 3.5 years imprisonment for using forged travel documents, which were found on him when he was arrested at Athens airport on December 23, 1999 after 17 years on the run.

Lesperoglou, 45, had been earlier cleared of the attempted murder of a police officer in 1982 by an appeals court on March 27 but remained in custody to face other charges, linked to his alleged involvement in a left-wing terrorist group called Anti-State Struggle. He now faces trials in connection with the murder of public prosecutor George Theophanopoulos, the robbery of an armored van and other charges.

[34] Renewable energy day to be held on April 26

Athens, 24/04/2001 (ANA)

The event is being held by the state's Center for Renewable Energy, and is the first of its kind in the country.

The center�s staff will conduct guided tours of its installations in Pikermi and a multimedia presentation of applications.

[35] Cyprus issue, Mideast problem the focus of Kasoulides, Peres talks

NICOSIA, 24/04/2001 (CNA/ANA)

Speaking after talks at the foreign ministry, Peres said Israel and Cyprus share a vision "to democratize, pacify and Europise the Middle East" which would first bring about peace and freedom in the area and would help the region to follow the European model where "political conflicts are solved by economic framework," which he said is a very attractive prospect.

Noting that talks went over a "very long list of common interests", he said Israel is "very much encouraged by the closeness of Cyprus to accede to the European Union, which will enrich the EU and the Middle East."

Referring to the current Middle East crisis, Peres said everything of importance was achieved around the negotiating table and everything that is damaging took place in the battlefield but stressed his determination to act "ceaselessly to bring the parties together in a meeting of minds once the shooting and the bombing stops."

"My aim is to discover a new path to peace and shall act in this direction ceaselessly," he added.

Asked if Cyprus could play a role in the Middle East peace effort, Peres said Cyprus could bridge and contact "parties that it is hard to contact otherwise" expressing trust in the good will and any discussions Cyprus might have in this regard.

"We can trust each other, clearly we have the same vision," Peres pointed out, noting Cyprus' good relations with the Arab and Moslem countries.

Invited to comment on Turkish threats against Cyprus, if it joins the EU prior to a solution, Peres said Turkey wants to join the EU too and added "you will meet in Europe in an agreement, you will agree to be members of Europe and you will Europise your differences."

Replying to a question on Israeli moves that have hampered the peace effort, which Cyprus should avoid, the foreign minister said that it takes two parties to establish peace.

"It is like a tango, you have to be careful not to step on the shoes of the other party," he warned, noting that the Palestinians have missed an opportunity at Camp David and Taba when they rejected the Israeli proposals.

"Do not lose hope and patience even under the most difficult circumstances when you think every door is closed, there are still openings that you have to discover," he said, as an advice to the Cypriots in their search for a settlement to end the island's division as a result of the 1974 Turkish invasion and occupation of the northern areas of the Republic.

He said negotiation is the art of bargaining but of "creativity" when people come up with a third solution at a time when two other solutions are unacceptable to either party involved in negotiations.

Such a third option, he pointed out, should contain an element of surprise and should be confidential.

Responding to the same question, Kasoulides said in the case of Cyprus "we never had the opportunity to tango."

On plans to bring water to Israel from Turkey, the minister said all options are now out of consideration because "when you have fire, water does not flow."

Peres referred to plans either to buy water and transfer it by ships to Israel, to build a pipeline via Syria, Jordan to Israel and he also referred to plans for a gas pipeline from Egypt to Israel and then Turkey.

In his remarks to the press, Kasoulides said efforts to achieve lasting peace in the region was at the core of discussions, which also focused on Cyprus' European accession prospects.

"The prospect of Cyprus joining the EU creates many opportunities for the area of the Middle East," the minister said, adding that it would be preferable for Cyprus to join the Union as a reunited island but if the Turkish side blocks efforts for a settlement, Cyprus would join without a settlement, in compliance with EU decisions.

Kasoulides said he expressed Cyprus' readiness to make any small contribution towards establishing peace in the region and said his Israeli counterpart could also use his own efforts to help out Cyprus achieve its goals.

Meeting with President Clerides: Cyprus and Israel are working in the same direction and relations between the two countries are extremely good, Peres said, adding that Cyprus can host further peace meetings for the Middle East peace process.

Peres also said he had a "very good and very pleasant meeting" with President Glafcos Clerides Monday morning, adding that both countries wish to turn the Middle East into an area similar to Europe.

"Cyprus and Israel are interested in Europising the Middle East instead of terrorizing Europe," Peres told the press after a working breakfast the president hosted.

He said the two countries are working "in the same direction" and expressed the view that Cyprus eventually "may become a sort of Switzerland, a place where hostile forces can meet, where trade can be done, where gatherings can take place."

Asked if any peace meeting would take place on the island, Peres said some peace meetings have already taken place and added "in the future we shall use the hospitality of Cyprus for further meetings."

President Clerides said after the hour-long breakfast he had a "very good meeting" with Peres.

Peres was due to give a lecture on "Process to the Future: Challenges and Opportunities" Monday evening, organized by the Institute for Euro democracy.

Statements: Israel's Foreign Minister and Deputy Prime Minister Shimon Peres said that his country supports the union of Cyprus and does not recognize the illegal regime set up in the Republic's northern territory occupied by Turkish troops since 1974.

Speaking to local journalists Monday afternoon, Peres, who was due to leave on Monday night after a two-day official visit at the invitation of his Cypriot counterpart Ioannis Kasoulides, said the solution to the Cyprus problem "will come with the Europising of the parties involved."

He noted that "Cyprus is going very wisely in entering the European Union", adding that Turkey "will be a different country when it becomes a European country (EU member).

Turkey has so far refused to comply with numerous United Nations resolutions calling for the withdrawal of its troops from Cyprus and instead it fully backs Turkish Cypriot leader Rauf Denktash, who is refusing to take part in substantive negotiations under UN auspices.

The Israeli minister expressed the view that the whole Middle East, Asia Minor and the Balkans were going through a transitional period.

Asked whether the Cypriot government had asked his mediation towards Turkey to solve the Cyprus problem, Peres replied "not in this visit." The Israeli official visited Cyprus in the past under different capacities.

"We made our policy on Cyprus very clear. We are for the union of Cyprus, the welfare of Cyprus and we don't recognize the northern part of Cyprus," Peres said.

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