Athens News Agency: Daily News Bulletin in English, 01-06-09

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

CONTENTS

[01] Europe's future the focus of Simitis-Schroeder discussions

[02] PM denies report he discussed 'Eurofighter' issue with Schroeder

[03] Greek PM and German chancellor hail Tony Blair's re-election

[04] Cultural agreement foresees return of Olympia artifacts to Greece

[05] Greek FM: Greece will veto proposals for Turkish role in EU army

[06] Tsohatzopoulos rejects Turkish claims over European defense issue

[07] Greek premier congratulates Tony Blair on his re-election

[08] Communist party criticizes government over proposal on FYROM

[09] Parliament president invites Cyprus counterpart to Athens

[10] Ankara reportedly peeved over latest UN report

[11] Greek Navy denies Turkish ship entered Greek territorial waters

[12] EU Commissioner notes dearth of skilled workers in job market

[13] Hellenic Postal Service to increase postage rates beginning Monday

[14] Hellenic Railways Organization alters services to Balkans, Europe

[15] Greek inflation rises to 3.6 percent in May, yr/yr

[16] ASE answers to reports over speculative moves in the market

[17] Greek stocks reverse course, end lower

[18] Culture minister inaugurates Greek pavilion at Venice Biennale

[19] Greek and British officials mark anniversary of Saunders' murder

[20] EPP and Orthodox Church commence 5th Dialogue Cycle on Crete

[21] Government renews call for resumption of UN-led peace talks

[22] New House president calls on President Clerides

[01] Europe's future the focus of Simitis-Schroeder discussions

BERLIN, 09/06/2001 (ANA - P. Stangos)

Speaking to journalists, Simitis said that his opinions and those of the German leader were identical, concerning the ramification of Tony Blair's reelection in the European unification process.

He added that both men agreed that Blair's victory "supported that process, but also agreed that more cooperation and a common orientation is needed to make Europe more competitive and consolidate its social model.

Simitis called his visit to Germany a total success, as issues regarding European prospects were discussed at depth.

"We found out that Germany, a strong and developed country, economically powerful, as well as Greece, which is a country of average size by EU and EMU standards, share a common interest to move forward, and in order to achieve this common interest we will work along with others as well," Simitis stressed.

He also said that during their lunch on Friday, the two men discussed details and the need to strengthen "the decision-making orientation of the economic course" of the Union.

He added that along with this necessity, a more intense effort should be exerted on confronting issues of social policy, with cutting edge issues being those of unemployment, limiting inequalities and poverty and combating social disenfranchising.

"Environment is another focal issue for Europe, which does not cause as much sensation as it should in our country, it is an issue, however, that we should focus on," Simitis said, regarding an issue that will be discussed between the leaders of the EU and US President George Bush in the Goteborg summit.

Speaking on the prospects of Cyprus' accession to the EU, Simitis said "in Helsinki it was decided that the resolution of the (island republic's) political problem is not a precondition (for accession), as it was tabled by same countries."

Simitis also discussed with Schroeder the issue of compensations to victims of the 1941-1944 Nazi occupation of Greece, saying that the Greek government decided to wait for the case to "clear the courts" and then to move on with a proposal to the German side "so as to overcome difficulties and give an end to this problem".

FYROM crisis discussed at first Schroeder-Simitis meeting: The violence in the Former Yugoslav Republic of Macedonia (FYROM) was as the center of talks on Thursday evening between German Chancellor Gerhard Schroeder and visiting Greek Premier Costas Simitis.

Simitis arrived in the German capital for a private visit on Thursday.

The Greek prime minister told reporters later in the evening that his talks with Schroeder would resume on Friday, as European Union affairs and especially Cyprus� EU accession course are expected to dominate the agenda.

Simitis added that Greek-Turkish relations and the sensitive issue of compensation for victims of the Nazi occupation in Greece (1941-44) were also discussed. Regarding the latter, the Greek PM said Athens is awaiting resolution of litigation by Greece�s judiciary prior to conveying its final positions to Berlin.

In terms of the troubling situation in FYROM, the Greek side briefed Berlin over an initiative to lay down a timeframe for negotiations by all sides in Skopje, aimed at finally defusing the crisis. The plan has already been submitted to the European Union and will probably be discussed during the upcoming summit in Goteborg.

Regarding the bloc�s expansion, Simitis said both sides agreed on adhering to timetables worked out at the Nice summit, as long as certain matters are first �worked out�, such as ensuring regional convergence.

[02] PM denies report he discussed 'Eurofighter' issue with Schroeder

BERLIN, 09/06/2001 (ANA - P. Stangos)

Speaking to Greek reporters after his second meeting with Schroeder on Friday, Simitis said "the Eurofighter issue was not discussed at all. The word Eurofighter and the word aircraft were not mentioned even once."

"All this information has absolutely no basis and I want to reiterate that we did not refer to this issue in all our discussions," he added.

Simitis also reminded that he had clarified to the German chancellor in the past that the decision to postpone the purchase of the fighter planes is a "domestic issue" related to the country's economic course, since the Greek government wants to promote other aspects of its policy which, as he said, Schroeder "accepted then without question."

The report in the newspaper "Kathimerini", invoking "German sources", claimed that during his meeting with Simitis on Thursday night, the German chancellor insisted that the agreement on the procurement of "Eurofighter" fighter aircraft should be finalized during Simitis' current period of office, promising accordingly Berlin's warm support for the issue of Cyprus's accession to the European Union, regardless of the solution to be given to the island's political problem.

[03] Greek PM and German chancellor hail Tony Blair's re-election

BERLIN, 09/06/2001 (ANA - P. Stangos)

Both men were due to hold telephone conversations with him from Berlin.

Speaking to Greek journalists after his second meeting with Schroeder at noon on Friday, Simitis said they jointly hailed the re-election of Tony Blair and the Labor Party, saying that this election will help the unification process in Europe a great deal.

"Of course, there are different views with Great Britain on quite a few points, but Mr. Blair is a steadfast European in the sense that he wants Great Britain's cooperation with Europe and he wants to go ahead on a European course," Simitis said.

[04] Cultural agreement foresees return of Olympia artifacts to Greece

BERLIN, 09/06/2001 (ANA � P. Stangos)

Greek PM Costas Simitis said an agreement by Berlin�s Archaeological Museum and Greece�s culture ministry will return portions of the �Philippeion� � one of the structures at the historic site of Olympia, the home of the Olympic Games during antiquity.

To reciprocate, a major exhibition of Classical-era antiquities and artifacts from Olympia will be organized in the German capital next year.

The foundations were legally shipped to Germany and the Pergamus Museum in 1892 as part of Greek-German agreement 17 years earlier that foresaw excavations in Olympia.

On his part, Simitis called the agreement a �model� for cultural exchanges between countries, while he thanked the German Archaeological Institute for its financial support in restoring the Philippeion � a structure built at Olympia during the Macedonian dynasty period.

�This project assumes even greater importance in light of the 2004 Olympic Games in Athens,� he said following a brief ceremony and after touring the Berlin museum.

The agreement also foresees the establishment of a permanent exhibition area at the Pergamus Museum in order to host various displays of antiquities from Greece and periodically housed at the museum.

�Greece always follows an open cultural policy that rejuvenates bilateral relations in this sector, leading � without impediments of the past � to normal and legal cultural exchanges that allow millions of people around the world to come in contact with various civilizations,� he said, adding:

�A new Europe, something we are all aiming for and working towards, isn�t just an area of a sole unified civilization, but an area where different cultures, ideas and norms of behavior can emerge�.

The museum�s curator, Prof. Wolf Dieter Heilmeyer, gave Simitis, his wife and the entire Greek delegation accompanying him.

Greek culture minister lauds Berlin museum decision to return Philippeion Marbles: Culture Minister Evangelos Venizelos on Friday lauded a decision of the Berlin Archaeology Museum to return to Greece architectural elements of Ancient Olympia's Philippeion, during statements on the sidelines of the 49th Biennale's inauguration in Venice, Italy.

"Today's announcement by the Germans at the Archaeological Museum in Berlin, in the presence of Greek Prime Minister Costas Simitis, to return the architectural members of Ancient Olympia's Philippeion, which they have possessed since 1892, is very important," he said.

"I am pleased because the German Archaeological Institute and the Archaeological Museum of Berlin took this decision despite the fact Germany owns these architectural members since 1892 legally. It owns them legally because the agreement between the two countries at the time, allowed the German side to transport to Germany 50 percent of finds at excavations it conducted at Ancient Olympia," he added.

Venizelos called on the importance of the decision, in light of the Athens 2004 Olympic Games as Ancient Olympia was the focal point and ancient capital of the Olympic Games.

"You do understand how much attitudes and practices have changed in regards to such issues and what they should do or how they should feel - those who have in their possession not legally, but illegally architectural members of monuments with international fame and importance - first among them of course the Parthenon," Venizelos said.

The Greek minister also announced a series of exhibitions of antiquities to be staged in Berlin beginning in 2002 and ending in 2004.

Philip the father of Alexander the Great of Macedonia built Philippeion during the 4th century BC, as a donation to the Greek gods and proof of his Greek lineage.

[05] Greek FM: Greece will veto proposals for Turkish role in EU army

Athens, 09/06/2001 (ANA)

ND minister of state Yiannis Varvitsiotis had asked whether Turkey would be allowed to participate in European defense decisions.

"We rule out any sort of revision of the Nice decisions," Papandreou stressed. He was referring to the EU Summit in Nice last December, where it was agreed that decisions for the activities of the European army would be taken only by EU member-states.

According to Papandreou, the Nice decisions clearly regulate the relations of EU member-states and their partners in NATO that are not also in the EU.

Going into the background of the current debate, Papandreou reminded Parliament that Greece had already rejected a similar proposal by a NATO member-state at Nice, but had not needed to use its veto because there had been no general agreement.

"If they come back with (the same proposal) and we stand alone, we will reject it on our own. We will use our veto. We have no qualms if it really runs counter to our interests and if it really refers to areas of the Aegean or Cyprus. We have said this to our EU partners and we have also said it in public."

Varvitsiotis claimed that a secret NATO document is being prepared that would prevent the use of Alliance forces by the European army if Ankara is not allowed to participate in both decision-making and preparation of military exercises for the EU army in the region around Turkey.

Papandreou responded by saying that "no document, no agreement - whether an internal document or one between the EU and NATO - will set conditions that put Greece at a disadvantage."

[06] Tsohatzopoulos rejects Turkish claims over European defense issue

BRUSSELS, 09/06/2001 (ANA - Y. Zitouniati)

He was speaking at the end of a two-day NATO defense ministers meeting here.

Commenting on a statement made the same day by Turkish Foreign Minister Ismail Cem, placing responsibility on Greece for the rejection, by Ankara as well, of the British compromise plan aimed at sidestepping Turkey's veto at NATO on European defense, Tsohatzopoulos said Greece insists on the framework set at the Nice summit, in December 2000, which anticipates that decisions on the actions of the European army will be taken by European Union member-states alone.

According to reports in the international press, the British proposal anticipates that Turkey, which has exercised a veto concerning the EU's access to NATO's infrastructures, claiming equality in the taking of decisions on European defense, could have a "strengthened" participation in the planning of European operations, when linked to Turkish interests and the alliance's infrastructures are used.

Tsohatzopoulos said the British proposal is not accepted by Greece either, or by all the remaining EU countries or by Turkey, which considered it "inadequate", and added that "at the moment only settlements which are common to all at the stage of completing negotiations between NATO and the EU can be discussed."

Referring to the ministerial session, Tsohatzopoulos said there was "a positive climate of confirmation of substantive cooperation between Russia and NATO which warmed relations between the two sides following the negative experience during the Kosovo war".

Russian Defense Minister Igor Ivanov, in a prolonged address, referred to conditions of cooperation between NATO and Russia for the promotion of security in various regions, such as the Balkans, as well as to the proposal by Russian President Vladimir Putin for anti-missile protection and the control and restriction of nuclear weapons in general.

Tsohatzopoulos said differences between the two sides on NATO's expansion eastwards, which Russia disagrees with, do not prevent the development of cooperation, which is also being promoted, with the establishment of a permanent delegation of the alliance in Moscow.

[07] Greek premier congratulates Tony Blair on his re-election

Athens, 09/06/2001 (ANA)

Simitis told Blair he is looking forward to the continuation of their close cooperation for the further strengthening of excellent bilateral relations between the two countries.

The Greek premier also sent a telegram to his British counterpart noting that "the great victory of the Labor Party, which you lead, as well as your personal victory for a second consecutive term in yesterday's general elections in Great Britain is the British people's great response to the efforts of the conservative forces to enforce social polarization, anti-European nationalism and an economic model which increases social and economic inequalities".

"Opinions over the European course may differ from country to country. Your great victory, however, strengthens the common European prospect. I wish for your success in your new term," Simitis said in the telegram.

Spokesman hails Blair victory in UK elections: Government spokesman Dimitris Reppas on Friday welcomed Labor�s election victory in the UK on behalf of the Greek government, in which Tony Blair was re-elected prime minister.

"We share the great joy of Labor and hope that the British premier's efforts are successful. This victory creates the best conditions for the future of Britain," he said.

[08] Communist party criticizes government over proposal on FYROM

Athens, 09/06/2001 (ANA)

KKE added that the proposal also admits the failure of the association and stabilization agreement between FYROM and the EU, as well as mediation efforts by EU High Commissioner Javier Solana and NATO Secretary General George Robertson.

KKE believes that by the Greek proposal the "terrorists of the UCK are being protected", adding that "not only a division is being promoted in this way but supervision of the government of FYROM by the EU and NATO is being intensified for the sake of NATO's new strategy and common foreign affairs and security policy".

KKE further says it is imperative that NATO forces leave and mediation in the region should stop, Greek troops should return from Kosovo and Bosnia and all foreign intervention should stop.

[09] Parliament president invites Cyprus counterpart to Athens

Athens, 09/06/2001 (ANA)

According to an announcement by the Parliament's press office, Kaklamanis had a telephone conversation with Christofias after his election, congratulated him and wished him every success in his lofty mission.

Kaklamanis also addressed a letter to his counterpart in Cyprus and said, among others, "I am certain that your contribution to the efforts of Cyprus will prove to be decisive during the crucial period for the course of the Cyprus issue and the future of the brotherly people of Cyprus in the European family."

"I wish to reassure you that the Greek Parliament, with all its strength, will continue to develop our already very close cooperation both on a bilateral level, through the joint Coordinating Committee, and a multipartite level on the occasion of multiple Parliamentary meetings," Kaklamanis said.

Main opposition New Democracy leader Costas Karamanlis, Coalition of the Left and Progress President Nikos Constantopoulos as well as other parties sent messages to Christofias.

Government spokesman Dimitris Reppas commented positively on the election of AKEL general secretary Demetris Christofias as speaker of the Cypriot House of Representatives on Friday, saying the choice reflected the will of the Cypriot people as expressed in the last general election.

He noted that the first priority of every Cypriot party was to ensure Cyprus' accession to the European Union.

[10] Ankara reportedly peeved over latest UN report

ISTANBUL, 09/06/2001 (ANA � A. Kourkoulas)

According to diplomatic sources, both Ankara and Turkish Cypriot leader Rauf Denktash criticized the fact that UN Secretary General Kofi Annan did not cite anywhere in his report a position regarding a �separate agreement� for renewal between the international organization and the Turkish-occupied part of Cyprus.

Roughly one-third of Cyprus� territory has been occupied by Turkish troops since an invasion in 1974.

[11] Greek Navy denies Turkish ship entered Greek territorial waters

Athens, 09/06/2001 (ANA)

The Navy General Staff noted that the distance between the two islands was 16 nautical miles, while it also denied reports that a Turkish ship had alighted in the area.

They said the Turkish torpedo boat "Kalkan" was moving in international waters at a steady speed and a course due south. The "Kalkan" is participating in the Turkish naval exercise "Seawolf 2001" in the Aegean's international waters.

[12] EU Commissioner notes dearth of skilled workers in job market

Athens, 09/06/2001 (ANA)

Employment Anna Diamantopoulou, speaking in Thessaloniki.

The Commissioner noted that despite a European-wide unemployment rate of 8 per cent there were still 1,700,000 jobs unfilled in Europe, especially in sectors such as new technology, construction and management, because of a lack of trained and skilled applicants.

She also noted that Greece was behind in the area of research, spending 0.5 per cent of GDP for this purpose when the EU average was 1.18 per cent and when the US spent 3 per cent.

The EU Commissioner was speaking at an event to mark the 45th year of operation of the Thessaloniki University Polytechnic that was also attended by Macedonia-Thrace Minister George Paschalidis.

[13] Hellenic Postal Service to increase postage rates beginning Monday

Athens, 09/06/2001 (ANA)

Specifically, the cost of domestic postage for a letter of 20 grams rose to 140 drachmas from 130 drachmas, while the cost of postage for 20 gram-letters to European destinations rose to 200 drachmas from 180 drachmas.

This increase is expected to yield an extra 11.7 billion drachmas for the state owned and operated agency.

[14] Hellenic Railways Organization alters services to Balkans, Europe

Athens, 09/06/2001 (ANA)

Specifically, Thessaloniki will be connected via rail with Skopje and passengers will continue on from there to central and western Europe.

Thessaloniki will also be connected with services to Belgrade via Skopje and Thessaloniki to Sofia.

[15] Greek inflation rises to 3.6 percent in May, yr/yr

Athens, 09/06/2001 (ANA)

The consumer price index rose by 0.4 percent in May from April. The NSS said the year-on-year CPI rise reflected price increases in transport, hotel, restaurants and services.

The annualized average harmonized consumer price index was 3.3 percent in April, year-on-year, the NSS said.

Greek inflation was 2.9 percent and 2.4 percent in May 2000 and May 1999, respectively.

The year-on-year increase in the consumer price index in May reflected increases of 5.7 percent in alcohol and tobacco prices, 4.6 percent in food and beverages and 4.4 percent in fuel and transport prices.

NSS also announced that the wholesale prices index rose 1.1 percent in April from the previous month for a year-on-year increase of 5.1 percent.

SSSB expects inflation to drop under 3 per cent by year's end: Greece's annual inflation rate is forecast to drop under 3 per cent by the fourth quarter of the year Schroder Salomon Smith Barney (SSSB) Greek branch officials said in Friday.

The same official criticized the lack of speed in privatizations in Greece and the unresolved problems of the social security system.

Inflation measured by the consumer price index, rose to 3.6 percent in May from 3.5 percent the previous month, the National Statistics Service said on the same day.

[16] ASE answers to reports over speculative moves in the market

Athens, 09/06/2001 (ANA)

An ASE statement said that there was not a case of "open-selling" orders aimed to push share prices lower because any capital gains from this kind of trading were not benefiting speculators but the ASE-members' supplementary fund and that trades in question accounted for just 0.6 percent of the day's turnover.

ASE authorities, however, said they have asked the country's Capital Markets' Commission to begin a survey on trading during the days in question.

The statement underlined that both ASE and the Capital Markets' Commission were persistently promoting transparency in securities' trading and urged for the need of a smooth operation of the market and to avoid any moves undermining both Greek and foreign investors' confidence in the market.

[17] Greek stocks reverse course, end lower

Athens, 09/06/2001 (ANA)

The general index ended 0.75 percent lower at 2,961.05 points, off the day's highs of 3,005.40 points, for a net loss of 1.64 percent in the week.

Turnover was a disappointing 121.80 million euros, or 41.5 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.74 percent lower at 1,733.99 points, the FTSE/ASE 40 index eased 0.71 percent to 330.79 points and the FTSE/ASE SMALLCAP fell 1.85 percent to 934.23 points.

The parallel market index for smaller capitalization stocks ended at 277.65 points, off 0.90 percent.

Broadly, decliners led advancers by 291 to 49 with another 22 issues unchanged.

AB Vassilopoulos, Lampsa, Duty Free Shops, Alte, Parnassos, Goody's Minerva, Boutaris, Athina and Iktinos scored the biggest percentage gains, while ETMA, Viosol, Ideal, Electra, Visio-Sound, AAA, Levenderis, Korfil and Nestos suffered the heaviest losses.

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

Equity futures end lower: Equity futures traded on the Athens Derivatives Exchange finished lower on Friday, in line with the indices on which they are based.

The underlying FTSE/ASE 20 index closed 0.74 percent up, and the FTSE/ASE 40 ended 0.71 percent up.

Traded were 10,106 contracts on turnover of 80 million euros.

Bond prices rise in moderate trade: Bond prices in the domestic secondary market on Friday finished higher in moderate trade with players focusing on 20-year paper.

The Greek benchmark 10-year bond showed a yield of 5.52 percent from 5.51 a day earlier.

The yield spread over German bunds was 45 basis points from 43.9 in the previews session.

Turnover through the central bank's electronic system totaled 1.16 billion euros (395.2 billion drachmas) from 1.37 billion euros (466.8 billion drachmas) a trading day earlier.

Buy orders accounted for the bulk of turnover.

[18] Culture minister inaugurates Greek pavilion at Venice Biennale

VENICE, 09/06/2001 (ANA - A. Makridis)

Three Greek artists are representing Greece in the first Biennale of the new millennium.

Nikos Navridis, born in 1958, presents his work "Looking for a place", a video installation on a 16-metre-long screen in a dark room.

In an adjacent room, the work of Ilias Papailiakis, born in 1970, is on display under the title of "The picture and its significance."

Outside, the six-meter-high metal creation of Ersi Hadziargyrou, born in 1951, bearing the name "Mitis", is being displayed.

"I hope this first Biennale in the 21st century will signal an era of cooperation in cultural matters, where we have the ambition of having the Cultural Olympiad play an important role," Venizelos concluded.

[19] Greek and British officials mark anniversary of Saunders' murder

Athens, 09/06/2001 (ANA)

A tragic figure was Heather Saunders, widow of the slain military attache killed last year while driving to work at the British Embassy. In an impassioned speech after a memorial service at Athens' Metropolitan Cathedral, she stressed that she was not alone in her suffering and that her husband had been the 23rd victim of the terrorist group.

"The dead are beyond the pain and suffering of this world. The real victims are those who are left behind, innocent women, children, parents and hundreds of other people. What cause could justify such misery?" she asked.

Among those attending the service, were two survivors of 'November 17' attacks, George Petsos and Lefteris Papadimitriou, while a speech was made by Deputy National Defense Minister Dimitris Apostolakis, who said the murder of the Brigadier had been a tragedy "for his family, for Britain and for Greece".

"One year after June 8, 2000, all of us in Greece continue to live with insurmountable grief the inconceivable cost of this terrorist act," he said.

Earlier on Friday, Heather Saunders, British Ambassador to Athens Sir David Madden and Public Order Minister Michalis Chrysohoidis attended a wreath laying ceremony and service near the spot on Kifissias Avenue where Saunders' had been killed.

Against this backdrop, Public Prosecutor George Gerakis on Friday pressed charges against Saunders' unapprehended and unknown assailants for intentional manslaughter with complicity, illegal possession and use of weapons, many counts of theft, forming a gang and illegal change of number plates.

Gerakis requested and studied the file put together by the anti-terrorism service at the request of Appeals Public Prosecutor Athanasios Kafiris, who has asked for a judicial inquiry.

Gerakis has also asked that the foreign ministry, after which he will assign the case to an examining magistrate, translate all file documents in English.

Also monitoring the progress of the investigation will be Public Prosecutor Ioannis Diotis, who supervises the anti-terrorism service.

[20] EPP and Orthodox Church commence 5th Dialogue Cycle on Crete

Athens, 09/06/2001 (ANA)

Expansion, it was noted, would help create a pluralist Christian movement within the European Union.

The EPP Parliamentary group hailed the Orthodox Church's efforts to promote Christian values within the European Union, while the Church stressed the importance of EPP support for enlargement and the reforms required of each candidate country.

It also pledged to promote dialogue with national parties in the candidate-countries that belonged to the EPP.

The two sides spoke at length on fundamental human rights and civil liberties within an enlarged EU and on defining the role of the Church and State, where they agreed the Church should be a key partner in creating a society of citizens on a spiritual and moral plane and to secure the legal standing of the Church on a European and national level.

Former premier Constantine Mitsotakis, honorary president of main opposition New Democracy, who stressed the need for peaceful relations between the Church and State, also addressed the meeting.

[21] Government renews call for resumption of UN-led peace talks

NICOSIA, 09/06/2001 (CNA/ANA)

"We believe that a reasonable period of time has elapsed and the Secretary General has to invite Turkish Cypriot leader Rauf Denktash to talks and if he does not respond, then responsibility for the absence of peace negotiations should be laid on Denktash's shoulders," government spokesman Michalis Papapetrou said here on Friday.

The spokesman said discussions about how to resume the talks continue in many decision-making bodies, such as the UN, the European Union and the UN Security Council.

Denktash, backed by Ankara, withdrew from the talks last November, declaring the proximity talks a waste of time. He now demands in no uncertain terms recognition of his self-styled regime in the Turkish occupied areas in Cyprus in order to participate in negotiations.

The latest round of UN-led proximity talks, that began in December 1999, aim at finding a comprehensive settlement in Cyprus, divided since Turkish troops invaded and occupied 37 percent of its territory in 1974.

All indications are that the international community is not prepared to meet the demands of the Turkish Cypriots, who had agreed to have talks without preconditions and negotiate until a comprehensive settlement of the Cyprus question is reached.

Turkey's Council of National Security gave last week its full backing to Denktash, saying that his demands must be met before talks can begin.

[22] New House president calls on President Clerides

NICOSIA, 09/06/2001 (CNA/ANA)

"I discussed with him various issues and sought his advice on the execution of my duties as Acting President of the Republic," said Christofias, who is also the General Secretary of the main opposition AKEL party, after his first meeting with President Clerides, a courtesy call at the Presidential Palace on Friday.

This is the first time since the establishment of the Republic that a left-wing AKEL official holds such a high-ranking post. According to the 1960 Constitution the House President replaces the President of the Republic in his absence or if he is incapacitated.

President Clerides leaves next week for Sweden for the European Union summit, to which candidate countries are also invited. Earlier Friday, Christofias met with Foreign Minister Ioannis Kasoulides to discuss pending matters relating to the work of the

House, including a proposed visit to the island by Dutch deputies.

Replying to questions, Kasoulides expressed confidence that Christofias will carry out his duties to the full.

Christofias' party has obtained 34.7 per cent of the vote and 20 seats in the 56-seat House and DISY got 34 per cent and 19 seats.

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