Athens News Agency: Daily News Bulletin in English, 01-06-06

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

CONTENTS

[01] PM Simitis says no government reshuffle in foreseeable future

[02] EU accession prospects dominate Athens talks between Simitis, Kucan

[03] Gov't, eco-groups held events for Int'l Environment Day

[04] Minister announces 1.5 trillion drachmas for environmental projects

[05] Greek defense minister to visit Turkey in September

[06] No connection of Turkish research vessel with regional veto on EU force

[07] SE European defense ministers ready for Thessaloniki meeting

[08] Navy General Staff chief to pay official visit to U.S. on June 10

[09] Greek Parliament committee approves Greek-Turkish cultural agreement

[10] EU health ministers discuss public health and alcohol policy

[11] Public order minister confers with Scotland Yard officers

[12] Greek police officers visit Europol for briefing on organized crime

[13] Industrialist, Church benefactor Angelopoulos dies in Athens

[14] PASOK secretary begins wide-ranging contacts in Romania

[15] Athens mayor departs for New York to participate in UN conference

[16] Greece supports federal model for EU and 'economic government' for eurozone

[17] Hellenic Telecommunications concludes two successful years in Romania

[18] Greek stocks plunge on foreign selling

[19] Cyprus government satisfied with UN chief's report

[01] PM Simitis says no government reshuffle in foreseeable future

Athens, 06/06/2001 (ANA)

Simitis said government policy in all sectors will move on the same principles as it is doing at present, adding that he will lead the PASOK party in the next elections, letting it be clearly understood however that it will be the last time he will be seeking the premiership.

He further said he has no objection to meeting Archbishop of Athens and All Greece Christodoulos, but for a meeting which will not focus on the issue of identity cards, and the listing of religion in them, which he considers closed.

Simitis also insisted on the difference in views between the government and the Federation of Greek Industries (SEB), terming the opinion of the industrialists' administration neo-liberal.

He rejected the view that the government is slackening and recognized that a problem exists concerning the speed of decision-making, which he will attend to personally.

Simitis also disagreed that a certain party list exists which he follows in forming a government. He said there are people who have been with PASOK from the beginning and who have great political experience and effectiveness. He went on to say that what is necessary and what the people want is effectiveness.

"And what I am trying for is a government which will produce work. You do not change 'players' with experience, capabilities and contribution," he said.

Simitis said there are no magical moves but did not rule out any changes in the government's composition, adding that "if it will happen I will do it when it is necessary."

What he did rule out, at least for the time being, is the creation of an Olympiad ministry.

The premier said such a move would lead to delays "and we shall not do our work properly."

Again, however, he did not rule out the possibility of certain changes in this sector, which he did not determine.

Questioned on the candidate for the Athens mayorship in next year's municipal elections, Simitis let it be understood that he has in mind a political personality of broader acceptance. He said the municipality of Athens needs a political personality with a political view, which does not mean that he has to belong to PASOK.

Referring to the government's economic policy, Simitis conceded that there were some unsuccessful moves and some others, which lacked the element of sensitivity, while others revealed a lack of coordination.

However, he observed that indications on the economy are good and no concern is justified. He attributed criticism being made to a "miserable logic" and to "opposition propaganda".

On the issue of the situation prevailing at the Stock Exchange, he said the present period is a transitional one, which is characterized by moves from investors placed on either mature or emerging markets.

Simitis said controls will continue and he did not rule out the possibility of more people involved in cases of stock exchange fraud going to prison.

Commenting on the social security issue, he said the issue should be resolved by the present government.

"We shall see that the issue will be resolved by our government," Simitis said.

[02] EU accession prospects dominate Athens talks between Simitis, Kucan

Athens, 06/06/2001 (ANA)

Simitis also expressed a conviction that relative accession treaties will be signed during Greece's six-month EU presidency in the first half of 2003, something that would allow new EU members to participate in the 2004 Euro-elections.

On his part, Kucan thanked Greek leadership for Athens' support towards Ljubljana's efforts at vying for membership in Euro-Atlantic institutions, emphasizing that Slovenia has proven itself a "reliable partner".

"We respect both your country and your prime minister," Kucan said in remarks to reporters, and in praising Greece's "euro-zone" accession.

The Slovenia president added that his country has completed 20 out of 29 chapters dealing with harmonizing legislation and state institutions to the Union's acquis communautaire, whereas the one-time Yugoslav republic's candidacy for NATO membership should also be taken seriously.

In terms of bilateral relations, an agreement on the avoidance of double taxation was signed, expected to be followed by the completion of pacts involving maritime and air transport cooperation.

Simitis is scheduled to visit Slovenia in November.

Both men stressed that there is extensive room from improvement in bilateral trade and economic relations - especially in the tourism sector -- something Kucan attributed to a lack of knowledge in each country about the other.

FYROM situation: Referring to the latest disturbing developments to Greece's north, in the Former Yugoslav Republic of Macedonia (FYROM), Kucan told reporters that "the crisis in FYROM shows that the process of dissolution of the former Yugoslavia has not been completed".

Furthermore, he pointed to Ljubljana's devotion to the principles of International Law, adding "there are possibilities for finding solutions within the framework of FYROM's current constitution, with political dialogue, and without the use of weapons."

Earlier, Kucan was received by his Greek counterpart Kostis Stephanopoulos, with discussions focusing on SE Europe, the implementation of International Law and prospects for wider economic cooperation in the region.

Stephanopoulos says problems in Balkans cannot be solved by force: President of the Republic Kostis Stephanopoulos, addressing an official dinner on Tuesday evening in honor of visiting Slovenian President Milan Kucan, said Greece steadfastly believes that a solution to the problems of ethnic groups in the Balkans cannot be achieved by resorting to force or with a change in borders.

"This would gravely harm the real interests and the prospects of those directly involved, as well as of the entire region," Stephanopoulos said.

He said the European Union has accepted the accession of Cyprus "a mature and prospering democracy which is proceeding at a speedy pace towards the completion of accession negotiations."

Stephanopoulos went on to say that this would happen, as the EU has committed itself, regardless of whether the island's political problem has been solved by then.

He said that in efforts to find a solution to the political problem the Greek Cypriot and Greek side are contributing with everything in their power.

"It would be inconceivable for a European country, Cyprus, to become a hostage of the arbitrariness and military occupation of another country, Turkey, and the representatives of the Turkish Cypriot community," he said.

Stephanopoulos added that the accession of Cyprus, regardless of a solution to the political problem, will constitute a development which is absolutely consistent with the European values and principles which are currently being infringed by the Turkish and Turkish Cypriot side in the occupied part of Cyprus, as has been confirmed by a recent and very important ruling by the European Court of Human Rights.

Greek, Slovenian foreign ministers discuss regional, bilateral affairs: Greek Foreign Minister George Papandreou on Tuesday received his visiting Slovenian counterpart Dimitrij Rupel and discussed conditions in the Former Yugoslav Republic of Macedonia (FYROM) and Slovenia's accession to the European Union and NATO.

The two men discussed conditions in FYROM and agreed that there was a "window of opportunity" in resolving the crisis in that country in such a manner that its territorial integrity and the rights of all its citizens are respected.

Papandreou congratulated Rupel on his country's performance in its course toward the European Union and NATO.

He added that among the issues discussed was Greece's 2003 EU presidency, which will coincide with the Union's enlargement, saying that Athens' aim is that the signing of the accession protocols of all countries of the first EU enlargement wave may happen during that time.

The Greek minister also spoke of further development in bilateral economic relations.

ND leader and Kucan discuss Slovenia's European perspective: Main opposition New Democracy party leader Costas Karamanlis met visiting Slovenian President Milan Kucan on Tues-day and speaking to the press later said they discussed Slovenia's European perspective.

Karamanlis said ND supports this perspective, adding that his party supports enlargement in general, with the accession of Cyprus to the European Union being a basic priority.

Commenting on the situation prevailing in the Balkans, Karamanlis said ND's steadfast positions are the avoidance of the use of force, stability, no change in borders and respect for human and minority rights.

[03] Gov't, eco-groups held events for Int'l Environment Day

Athens, 06/06/2001 (ANA)

Three events were organized by the environment ministry in the northern upscale district of Kifissia, beginning with a ceremony at midday where Deputy Environment Minister Ilias Efthymiopoulos - the former head of the Greenpeace Hellas bureau -- honored 10 businesses for adopting environmentally friendly production methods.

A seminar focusing on environmental issues with the participation of several Balkan non-governmental organizations followed, whereas the day's events in Kifissia ended with a concert in the evening featuring bands from Greece, Bulgaria and Albania.

Meanwhile, in a press release, Foreign Minister George Papandreou noted that "the environment affects us all, both on a local and international level ... In the future, the lack of water and other natural resources may cause tension in relations between nations and in the movement of entire populations.

"... Universality and the nature of these problems make them into issues of civilization and democracy," he added.

Parliament speaker opens Santorini conference on environment: Parliament Speaker Apostolos Kaklamanis on Tuesday condemned the stance taken by the US government under President George Bush on the Kyoto Agreement for the environment, as he opened a conference on "Quality of Life in the new Millennium" on Santorini.

The conference was organized by the Greek Parliament in cooperation with the Environment and Agriculture Committee of the Council of Europe's Parliamentary Assembly and was attended by 120 MPs, academics and experts from Greece and abroad.

[04] Minister announces 1.5 trillion drachmas for environmental projects

Athens, 06/06/2001 (ANA)

Laliotis said his ministry has the duty not to remember the environment once a year but 365 days a year and called on citizens to do the same.

Inaugurating the National Environment Center, which will operate in the Athens northern suburb of Kifissia, he said the problems of the environment concern each citizen separately, they are interactive problems and their solutions are also interactive.

[05] Greek defense minister to visit Turkey in September

Athens, 06/06/2001 (ANA)

The two men met on the sidelines of a meeting of defense ministers from southeastern European countries.

Tsohatzopoulos later said the holding of joint military exercises was agreed in the framework of Partnership for Peace, in the middle of the Ionian Sea and the Adriatic coast with Greece's responsibility, and in the Black Sea with Turkey playing a leading role.

The two ministers also agreed to have direct personal communication every time issues appear which they consider to be important.

Tsohatzopoulos said he pointed out to his Turkish counterpart the interest of Athens in the avoidance of tension being created in military movements.

On his part, Cakmakoglu referred to the Turkish oceanographic vessel Piri Reis, saying the issue was not raised for discussion and reiterating that research it will conduct in the Aegean is of "a purely scientific content".

Tsohatzopoulos also met his Romanian counterpart Mircea Pascu. The two ministers signed an agreement for the participation of a Romanian army officer in the nuclear operations center in Kilkis within the framework of the Partnership for Peace.

[06] No connection of Turkish research vessel with regional veto on EU force

Athens, 06/06/2001 (ANA)

"I categorically deny something like that," Tsohatzopoulos said, adding "the Piri Reis case has nothing to do with the European Union's common defense issues or with other developments of security issues in the region."

"It was cleared up (the Piri Reis case) after clarification made by Turkey that it was clearly a scientific research of Izmir University, which aimed at taking measurements. It had nothing to do with research for petroleum deposits. This was made clear," he said.

He also said that Turkey was not to be included in the European military forces, as its request to be so was not accepted.

[07] SE European defense ministers ready for Thessaloniki meeting

Athens, 06/06/2001 (ANA)

One of the issues up for discussion this week will reportedly focus on the so-called SE European "multinational brigade".

Meanwhile, Greek Defense Minister Akis Tsohatzopoulos on Tuesday stressed that "specific measures" to promote cooperation and security in the region, particularly in relation to the ongoing crisis in the Former Yugoslav Republic of Macedonia (FYROM), will be decided on Wednesday.

Additionally, the Greek minister will meet new US Defense Secretary Donald Rumsfeld on Wednesday morning, where, according to reports, he will outline Athens' opposition to any unilateral anti-missile system being designed - as favored by Washington - but instead, to a collective anti-ballistic missile defense where all interested countries may participate.

The conference will get underway at 9.30 a.m. on Wednesday with an opening speech by Tsohatzopoulos. Representatives from NATO, the OSCE, the European Union and the special representative for the Stability Pact in SE Europe, Bodo Hombach, will also address the session.

[08] Navy General Staff chief to pay official visit to U.S. on June 10

Athens, 06/06/2001 (ANA)

The two chiefs will discuss issues concerning cooperation between the two navies, while Theodoroulakis will visit installations and units of the U.S. Navy.

Theodoroulakis will also visit the Naval Postgraduate School where a number of Greek Navy officers are receiving additional training. His visit will be concluded on June 19.

[09] Greek Parliament committee approves Greek-Turkish cultural agreement

Athens, 06/06/2001 (ANA)

Article three of the agreement, which aims "at promoting active and friendly cooperation and mutual support in the sectors of culture, science and education in the framework of UNESCO, OSCE, the Council of Europe and other international organizations and to avoid and action, which might be against the interests of the other party", caused the reaction of former foreign and culture minister Theodoros Pangalos.

"It is a colossal issue. I wonder, who such an agreement was signed by a Greek minister," the ruling PASOK deputy said.

Culture Minister Evangelos Venizelos defended the agreement, calling on the government's decision to sign a series of agreements with Turkey on the so called "low policy issues", which are not directly connected with issues of sovereignty.

During his address to the committee, Venizelos announced that the sports federations of Greece and Turkey undertook to promote Turkey's application to host the European soccer championship in Istanbul in 2008 or the Olympic Games for that same year.

[10] EU health ministers discuss public health and alcohol policy

LUXEMBOURG, 06/06/2001 (ANA - Y. Zitouniati)

On the question of alcohol policy, the council adopted a recommendation to member-states on the consumption of alcohol by children and teenagers, focusing on education, information and the promotion of health.

Addressing the council, Greek Health Minister Minister Alekos Papadopoulos stressed the need for an EU strategy to be developed, adding that the effectiveness of national measures will increase considerably if accompanied by measures at EU level.

He further said a delicate analysis is necessary of sociological characteristics of consumption, as well as the collection and development of comparable data and research methods at EU level.

Interventions in the health sector, he added, and alcohol policy in particular, should be based on a steadfast effort to inform the public with accurate data and with support for citizens, underlining the fundamental role non-governmental organizations can play in this sector.

The council was also briefed by the European Commission on the results of the second round of negotiations concerning the World Health Organization�s framework agreement on combatting smoking.

[11] Public order minister confers with Scotland Yard officers

Athens, 06/06/2001 (ANA)

Britain's ambassador to Athens David Madden was also present at the meeting in which the minister was briefed by the Greek and British officers on the investigations being carried on.

Brig. Saunders was shot and fatally injured last June by two gunmen riding atop a motorcycle as he was driving alone in morning rush hour traffic from his home in northern Athens to the British embassy in the Greek capital's center. The notorious "November 17" terrorist group later claimed responsibility for the attack in a proclamation sent to a local newspaper.

Memorial service to mark 1-year anniversary of British diplomat's slaying: A memorial service will take place on Friday in memory of Brig. Stephen Saunders, held on the one-year anniversary of the British defense attach�s assassination by urban terrorists.

The service is set for 11 a.m. at the Athens Metropolitan Cathedral in downtown Athens. Bishop Manktelow of the Anglican Diocese of Europe will conduct the service, whereas Archbishop of Athens and All Greece Christodoulos will also be present, according to a press release by the British embassy in Athens.

The British officer's widow, Heather Saunders, as well as Greek Deputy Defense Minister Dimitris Apostolakis are scheduled to deliver tributes.

The British embassy will also be closed from 10:30 a.m. until 1 p.m. on June 8 as a mark of respect to the memory of Saunders.

[12] Greek police officers visit Europol for briefing on organized crime

Athens, 06/06/2001 (ANA)

The visit was held at the invitation of PASOK Eurodeputy Anna Karamanou who organized the mission.

Europol's alternate director Willi Brugeman made a revelation regarding dangers linked to the circulation of the euro and the withdrawal of national currencies.

He said that, according to information by the Belgian police, a group of Albanian mobsters are planning to deal a blow at the transactions system, distributing counterfeit euros in the market and laundering money obtained in this way through banks in Greece and other European countries.

In order to deal with the threat, Europol has made a special agreement with Interpol, as well as with the Russian, Romanian, Bulgarian and Slovenian authorities on an exchange of information and close cooperation.

Interpol does not rule out the possibility of Italian mobsters joining the counterfeit euro scam, who were specialized in trafficking counterfeit dollars in the past.

[13] Industrialist, Church benefactor Angelopoulos dies in Athens

Athens, 06/06/2001 (ANA)

Angelopoulos was born in Gortynia in 1909 and his family moved to Athens in 1922. In 1932, Angelopoulos, his father and his brothers founded a cable manufacturing company and in 1948 they founded 'Halyvourgiki'. This was moved to Elefsina in 1953 and became the first heavy industry in Greece. In later years, Angelopoulos also became involved in shipping.

Angelopoulos was named a major benefactor of the Orthodox Church by Ecumenical Patriarch Dimitrios for paying to rebuild the Ecumenical Patriarchate's main building at Phanar, which had been razed during a fire in 1941, as well as helping restore the Patriarchate's library, the church of St. George and other church buildings.

Angelopoulos was survived by his wife Eleni, his two sons Theodoros and Constantine and four grandchildren.

He was the last to survive of his four brothers. His brother Yiannis died in 1974, while Dimitris was killed by the terrorist group 'November 17' in 1986 and the academic and economic Angelos died in 1995.

PM says Angelopoulos a noble with incalculable social contribution: Prime Minister Costas Simitis, referring to the death of industrialist and Orthodox Church benefactor Panagiotis Angelopoulos, said on Tuesday "Panagiotis Angelopoulos was not only a distinguished personality of the business world. He was a noble with an incalculable social contribution and work. His contribution and the unselfish support he provided for the Ecumenical Patriarchate was also incalculable. I extend warm condolences to his family."

Ecumenical Patriarch Vartholomeos to attend funeral: Ecumenical Patriarch Vartholomeos will attend the funeral of Ecumenical Patriarchate benefactor Panagiotis Angelopoulos in Athens on Thursday.

The decision was taken at an extraordinary session of the Ecumenical Patriarchate's Holy Synod when the death of Angelopoulos was announced. The Holy Synod also decided that flags at patriarchal offices will fly at half-mast.

The Holy Synod further decided the establishment of a scholarship fund "in memory of Panagiotis Angelopoulos."

Vartholomeos expressed his profound sorrow over Angelopoulos' death, while a memorial service was held at Saint George's Cathedral at the Phanar in his memory.

[14] PASOK secretary begins wide-ranging contacts in Romania

BUCHAREST, 06/06/2001 (ANA - P. Dimitropoulos)

Afterwards, Skandalidis noted that both Romania and Greece are factors of stability in the region, while improvement of bilateral political and economic ties is a necessity.

According to Nastase, trade between the two countries has reached the US $700-million mark, whereas Greek investments in Romania - not counting the $674 million invested by the Greek telephone utility OTE in Romtelcom - stand at $500 million.

On his part, Skandalidis conveyed a message by Greek Prime Minister Costas Simitis emphasizing that accession of all Balkan countries into the European Union is one of Athens' standing political positions.

Afterwards, Skandalidis met with the president of the Federation of Greek Entrepreneurs of Romania, Yiannis Aliferis, and representatives of groups representing Greek students. He is also scheduled to meet with Romanian Patriarch Theoktistos, a deputy from the "Greek Union of Romania" as well as with representatives of other Romanian parties.

On Wednesday, Romanian President Ion Iliescu will receive Skandalidis.

[15] Athens mayor departs for New York to participate in UN conference

Athens, 06/06/2001 (ANA)

Avramopoulos will conduct a five-day visit, which will include a one-day stopover in Washington where he will participate in an expatriate Greeks' conference on the Cyprus problem.

On Thursday he will be returning to New York where he will meet UN Secretary General Kofi Annan.

Avramopoulos denies reports claiming he will vie for re-election: Athens Mayor Dimitris Avramopoulos reiterated on Tuesday that he is not interested in seeking another term at Town Hall, even if the Greek capital's administration is transformed into an expanded "metropolitan model" along the lines of London or Paris.

Avramopoulos announced a few months ago that he was formally leaving the main opposition New Democracy party and establishing a new political party -- the Free Citizens Movement (KEP) -- which he said will field candidates in both the upcoming municipal and general elections.

He also said reports claiming his party's pre-election cooperation with ND is inopportune.

[16] Greece supports federal model for EU and 'economic government' for eurozone

LUXEMBOURG, 06/06/2001 (ANA - G. Zitouniati)

Speaking to journalists after the conclusion of the European Union's finance and economy ministers meeting here, Papantoniou said that the establishment of a second European parliament playing the role of the Senate was necessary.

He also spoke of the necessity for the establishment of an "economic government" for the eurozone in the spirit of the proposals tabled by French President Lionel Jospin.

Papantoniou, commenting on discussions that took place in the meeting, said that the European Union should depend on its own abilities to recover economically, as external conditions, such as the economy of the USA and the increase in petrol prices, are not favorable.

"The dynamism shown in (the) Lisbon (summit) seems to have been lost in (the) Stockholm (summit)," he said, proposing that the upcoming Goteburg summit should give a new impetus to the structural changes and to discussions of the general economic orientations of the Union.

Papantoniou stressed that Greece would record a 4.5 per cent increase of its GDP for 2001 as it is not as directly affected by international developments as the rest of the Union.

He said that the ministers discussed the issue of a uniform taxation system for the Union, but no decisions were taken at this time, in light of elections in Britain, which reacted against this prospect.

He added that discussions on a taxation system would conclude by the end of 2002, while discussions during Tuesday's meeting focused mainly on bank account privacy in non-EU countries considered tax heavens.

Papantoniou also commented on Monday's discussions among the twelve ministers of the eurozone, saying that "last Spring's forecasts would not be changed".

He said the ministers decided that during the changeover of national currencies to the euro all prices should be rounded off downward, a decision that should be enforced in every country to avoid profiteering.

[17] Hellenic Telecommunications concludes two successful years in Romania

BUCHAREST, 06/06/2001 (ANA - G. Tzortzakis)

"2001 Peace Odyssey" is the title of the only performance to be given at Bucharest's central square on Wednesday under the directorship of Yugoslav filmmaker Emir Kusturica and Angelos Hadziandreou.

The event will be watched by a Greek delegation headed by Transport and Communications Minister Christos Verelis, who will be meeting the Romanian prime minister on Wednesday, as well as the transport and communications ministers.

In a brief statement, Verelis said OTE's activation in Romania will continue and referred to confidence and cooperation existing between the two countries.

[18] Greek stocks plunge on foreign selling

Athens, 06/06/2001 (ANA)

Traders said banks and telecommunications were particularly hit as emerging markets' funds continued exiting the Greek bourse.

They said that trading in banks and telecoms accounted for 62.32 percent of the day's total turnover.

The general index index ended 3.31 percent lower at 2,910.55 points, off its day's lows of 2,894.47 points, its lowest level this year, extending its decline for the sixth consecutive session.

Analysts said the index would find support at the 2,900 level in the short-term.

Turnover was an improved 265.94 million euros, or 90.62 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 1,699.07 points, down 3.34 percent, and the FTSE/ASE 40 index dropped 3.05 percent to 328.83 points.

The parallel market index for smaller capitalization stocks ended at 280.70 points, off 2.92 percent.

Broadly, decliners led advancers by 334 to 19 with another eight issues unchanged.

AS Company, Korfil, Petzetakis, Aspis Life, Ideal, ATEMKE, Fanco, Danielidis, Silver & Varyte and Atermon scored the biggest percentage points, while ETMA, Nestos, Intersat, Multirama, Vardas, Crete Building, Eskimo and Fieratex suffered the heaviest losses.

National Bank, Alpha Bank, Hellenic Telecoms, Commercial Bank and Interamerican Insurance were the most heavily traded stocks.

Bond prices rise in brisk trade: Bond prices in the domestic secondary market on Tuesday finished higher in heavy trade with players focusing on 10-year paper.

The Greek benchmark 10-year bond showed a yield of 5.48 percent from 5.57 percent a day earlier.

The yield spread over German bunds was 45 basis points same as in the previews session.

Turnover through the central bank's electronic system totaled 1.39 billion euros (473 billion drachmas) from 1.4 billion euros (506 billion drachmas) a trading day earlier.

Buy orders accounted for the bulk of turnover.

Equity futures end sharply lower: Equity futures traded on the Athens Derivatives Exchange slumped on Tuesday, tracking a sell-off on the Athens bourse and under performing their underlying indices.

The underlying FTSE/ASE 20 index closed 3.34 percent down, and the FTSE/ASE 40 ended 3.05 percent lower.

Traded were 11,805 contracts on turnover of 88.7 million euros.

[19] Cyprus government satisfied with UN chief's report

NICOSIA, 06/06/2001 (CNA/ANA)

Government spokesman Michalis Papapetrou said on Tuesday UN Secretary General Kofi Annan notes in his six-monthly report that he invited President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash to attend proximity talks in late January, the latter requested no date to be fixed for the talks and "it has not proved possible to resume talks" in the reporting period.

Asked to clarify his position that Annan points the finger at Denktash, the spokesman replied "I think this is crystal clear and the report indicates why talks did not take place."

"The report makes an indirect, albeit clear, reference as to who is responsible for the non resumption of the talks," Papapetrou said.

The report, he added, is being submitted at a time when diplomatic effort continues and is at a delicate point, noting that a Security Council resolution is set to be issued in the next several days.

Replying to questions, he said Annan's report is compiled on the basis of resolution 186 of 1964, which counteracts Turkish demands for a separate agreement for the operation of UNFICYP in the northern Turkish occupied part of the Republic.

He said the report restores the correct terminology and has a clear reference to the government of Cyprus and notes that on either side of the ceasefire line lie the National Guard and the Turkish army.

Papapetrou noted the clear reference to the situation in Strovilia, on the southeast, where the military status quo was violated a year ago by the advancement of the Turkish forces.

The report underlines the additional difficulties the occupation regime is imposing on Greek Cypriots residing in the occupied areas and on bicommunal contacts as well as on the movement of UNFICYP.

The spokesman welcomed the UN description of the maritime security lines as the seaward extensions of the median line of the buffer zone, which vessels of either side are advised not to cross for their own safety.

"The report essentially accepts our point of view that there is an extension at sea of the buffer zone, which is not the same as the buffer zone on land," Papapetrou said.

Annan's report recommends the renewal of UNFICYP's mandate for another six months.

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