Athens News Agency: Daily News Bulletin in English, 01-09-20

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

CONTENTS

[01] 'Not a trace of understanding or tolerance for terrorists," PM says

[02] Greece will cooperate with NATO allies, Greek FM says

[03] FM and ND leader discuss latest world developments

[04] FM briefs parliament committee on aftermath of attacks on US

[05] Gov't comments on NATO action, bank deposit claims

[06] PM, Justice minister discuss confrontation of terrorism

[07] FYROM's Georgievski to meet with Papandreou

[08] Arafat invites SYN party leader to visit Palestinian territories

[09] Greece's Muslim leaders condemn terrorist attack in the U.S.

[10] Athens mayor bestows city's medal to president of Iceland

[11] Stathopoulos: Public Securities prosecutor not to be disciplined

[12] Defense minister to attend European Socialist Party meeting

[13] Simitis meets Youth Parliament representatives

[14] Prime Minister, finance minister discuss budget

[15] Gov�t presents Social Security Fund reform bill

[16] Structural reforms will continue, gov�t says

[17] Greek-Turkish committee to focus on commercial fishing issues

[18] President of Iceland meets Greek entrepreneurs

[19] British embassy organizes security equipment, services exhibition in Athens

[20] Negative returns on deposit accounts after new rate cuts

[21] Gov't to promote Greek cuisine as tourism resource

[22] EU port officials meet in Greece

[23] Stocks rise in bid to consolidat

[24] Culture minister on security measures for 2004 Olympic Games

[25] Health minister announces new clinic for Olympic Village

[26] NAZI victim relatives in northern Greece file class action suit against Germany

[27] Prosecutor asks for conviction of 9 in trial for 'Dystos' maritime accident

[28] Archbishop of Albania awarded 'Pro Humanitate' award

[29] New research presented on pre-revolutionary visionary Feraios

[30] FM makes demarches over press allegations regarding

[31] Cyprus gov't surprised and concerned over former CIA chief's allegations

[01] 'Not a trace of understanding or tolerance for terrorists," PM says

Athens 20/09/2001 (ANA)

"There is not an ounce of understanding or tolerance for terrorists, and any compromise or discussion with them is inconceivable," the premier said in statements to the press after talks with visiting Icelandic President Olafur Ragnar Grimsson.

Reiterating the Greek people's solidarity with the American people, he added that Greece would "cooperate with its allies to stamp out the phenomenon" of terrorism.

"Our policy vis-a-vis terrorism must be uncompromising...The planet is living under the weight of the consequences of the recent terrorist attack. It is an abhorrent act that disputes the values that form the foundation of our societies," Simitis said.

He said that the handling of the issue by the governments "the day after" must be "responsible and prudent", adding that the European Union should undertake an active political role and advance a policy for the creation of a global security system, while the causes of the phenomenon should be tackled through coordinated development policies.

Simitis noted that the 15 EU member states would jointly decide on Friday, at an emergency summit, how to side with the US government in confronting terrorism.

Greece, he said, was "neither alone, nor isolated".

"It is a safe and stable country in the heart of the European Union, a member of NATO and all the international organizations. It is a pole of peace and stability in the region," the premier said.

He assured that "all that Greece has achieved in recent years will not collapse", as the government had "a program and plan, and the responsibility for, a strong Greece".

Replying to press questions on whether Greece would participate in prospective operations, Simitis said the country "will definitely take part, in the framework to be determined by the Alliance and on the basis of the decisions that will be taken".

Greece's participation "arises from the country's membership in the Alliance and is self-evident".

Referring to the operations the US plans to undertake with its Allies, Simitis said last week's terrorist attacks in New York and Washington were "an act that cannot possibly remain unanswered", but added that "the developments are controlled" and Friday's summit aimed at "better preparation of the allied operations".

[02] Greece will cooperate with NATO allies, Greek FM says

Athens 20/09/2001 (ANA)

The minister was responding to questions on whether Athens would participate in a NATO military operation against the terrorists behind last week's strikes in the United States.

A military response was not necessarily the most powerful or the most effective measure against such organizations, Papandreou added.

"One could say, that if the problem were military it would already have been solved," he concluded.

Papandreou also confirmed having spoken with his Turkish counterpart Ismail Cem on the phone in the past few days concerning recent world developments and said there had been reports that wanted terrorist Osama bin Laden had passed through the region.

Asked about rumors that two of the hijackers who carried out last week's strikes in the US had been trained at an Albanian army camp, Papandreou said that this only demonstrated the complexity of dealing with terrorism.

It was a battle between countries that promote international law, democratic principles and freedom and the view that problems could be solved through violence, fanaticism and religious extremism, he said.

He said he was sure that Albania would be among the former, while he urged Balkan countries to isolate extremists.

Papandreou also confirmed that Palestinian leader Yasser Arafat had been positive regarding his proposal for a meeting with the Israeli side. He said it would be an honor if this meeting were held in Athens but this was not yet certain.

[03] FM and ND leader discuss latest world developments

Athens 20/09/2001 (ANA)

Papandreou said he would get to work on a draft bill for creating such a council, for which there are provisions under the Constitution, and would send a copy to ND headquarters.

At the same time, he disagreed with ND requests for a meeting of party leaders to discuss international events and the terrorist strikes on the United States.

Both men agreed that terrorism should be condemned and solidarity shown toward the US.

In statements afterward, Papandreou stressed that Greece needed to present a good image abroad at this time, something that would be achieved by ensuring a common stance by as many political parties as possible.

He said Greece's role in the European Union and the surrounding region would be stabilizing and would support democratic institutions.

According to statements by ND spokesman Theodoros Roussopoulos, however, ND would not give up pressing for a party-leader meeting under the President of the Republic.

The times were crucial, Roussopoulos said, and above all required national deliberation to decide the country's strategy in the newly emerging world scene.

He said that Karamanlis had stressed the need to reinforce cooperation within the EU for dealing with long-term regional crises that created tension.

[04] FM briefs parliament committee on aftermath of attacks on US

Athens 20/09/2001 (ANA)

NATO in the aftermath of the terrorist attacks on the US last week.

The committee dealt with the issue of the wave of refugees and illegal immigrants from Afghanistan, which is already being manifested, and is expected to increase due to the tension in central Asia.

Referring to Greece's stance toward the developments, Papandreou said that "if we do not have an active and substantial participation, there will be consequences for our interests."

He added that "our country's role will be upgraded only if we submit serious and sober proposals for the confrontation of the situation."

[05] Gov't comments on NATO action, bank deposit claims

Athens 20/09/2001 (ANA)

In referring to the latest statements by former CIA chief R. James Woolsey, government spokesman Dimitris Reppas said, �... it�s the first time that this monomaniacal element again touches on issues that have been answered on numerous occasions. Of course, if he is not suffering from something then it could be said that something else is happening, namely, that he�s working for the interests of third parties attempting to hamper Cyprus� European Union course�.

Reppas added that Athens has previously requested from Woolsey to provide information to a local prosecutor over his high-profile allegations regarding a revolutionary urban terrorist cell in Greece, to no effect, however.

Although roughly one-third of Cyprus -- an island republic in the east Mediterranean -- is occupied by the Turkish military to this day, economically and socially robust Cyprus is nevertheless one of the frontrunners for the next round of EU accession.

On its part, the Cypriot government charged this week that if Woolsey had any real knowledge about secret bin Laden deposits in offshore banks he should have urgently contacted authorities.

Greece on NATO action: Meanwhile, in an unrelated matter, Reppas cautioned that it is still premature to discuss any potential NATO military strike until a decision is taken by the alliance�s military committee.

�If NATO takes a decision to act, then it can act. But that�s not something that has been decided. It�s premature, unconsidered and damaging to discuss something that hasn�t been tabled by anyone as yet,� he said.

The spokesman said it�s too early to speak of action before Friday�s EU summit meeting.

Reppas also said, in response to a question during a regular press briefing that Athens' agreement within NATO's framework should not, of course, qualify as a "blank check" authorization for whatever action.

Finally, he noted that government has not considered to what extent Taliban backers have activated themselves in Greece.

[06] PM, Justice minister discuss confrontation of terrorism

Athens 20/09/2001 (ANA)

Following his meeting with the prime minister at the Maximos Mansion, Stathopoulos said he briefed him on the contacts he already had with certain EU counterparts.

Stathopoulos said "we must find ways to confront and eliminate these new forms of terrorism, but at the same time we must achieve this without compromising the principles of the state of law and the protection of human rights."

Asked by journalists whether he was in favor of stricter measures, Stathopoulos said "some measures may be needed but they will be such measures which will not endanger human rights and the principles of the state of law."

[07] FYROM's Georgievski to meet with Papandreou

Athens 20/09/2001 (ANA)

Earlier, Papandreou will receive Israeli ambassador to Athens David Sasson in the morning.

The Greek FM will meet with a delegation of ambassadors from Arab countries in the afternoon.

[08] Arafat invites SYN party leader to visit Palestinian territories

Athens 20/09/2001 (ANA)

The date of the visit has not yet been set.

[09] Greece's Muslim leaders condemn terrorist attack in the U.S.

Athens 20/09/2001 (ANA)

The three muftis, religious leaders to Greece's Islamic community of Thrace, expressed their sorrow to U.S. President George Bush and the American people over the terrorist attacks in the US.

In their telegrams to the embassy, Xanthi prefecture Mufti Emin Memet Sinikoglou, Rodopi prefecture Mufti Metso Cemali, and Evros prefecture Mufti Serif Memet Damatoglou noted that terrorism is outside the logic of religion and it is flatly condemned by all of humanity.

They stated that they were "shaken by the events in New York, before which all the world regardless of religion, ideology or world-view remains speechless".

They added that they pray along "with all the religious leaders and the common people, for the souls of those that unduly perished by an act of irrationality and extremism".

[10] Athens mayor bestows city's medal to president of Iceland

Athens 20/09/2001 (ANA)

In receiving the honor, Grimsson referred to the peoples of Greece and Iceland, saying that "they offered to Europe and the world a great democratic heritage, inspiring people for centuries to have new visions and courage."

Speaking about present day Athens, Grimsson said that "it continues to offer us inspiration and encouragement. The strong spirit of the people, as is revealed in the streets, coffee shops, homes and work places is living proof that modernization can at the same time be rooted in old traditions and inspire new visions with daring innovations."

In his address, Avramopoulos said that Greece and Iceland, with their great culture and history, "have a long democratic tradition given that 1,500 years after Athens (1,000 years ago), the Parliament of Iceland constituted an example of democratic governing in an era when Europe lived under despotism."

The president of Iceland is currently on a three-day official visit to Greece.

[11] Stathopoulos: Public Securities prosecutor not to be disciplined

Athens 20/09/2001 (ANA)

Stathopoulos stressed that neither he nor the government were considering such a course of action.

He noted, however, that there could not be state functionaries that were exempt from criticism and from being held liable for their actions.

"We must not confuse criticism with intervening in the course of justice, which is independent," he added.

In a document sent to Parliament Speaker Apostolos Kaklamanis last week, the prosecutor said that a preliminary inquiry into DEKA's activities had revealed evidence of stock market fraud, in that share prices were disrupted by non-market factors unrelated to supply and demand, misleading the market and resulting in long-term losses for retail investors.

He also claimed the evidence pointed to a breach of duty and trust by three government ministers, who were responsible for approving the decisions of DEKA's board before general elections on April 9, 2000.

The government members named were National Economy and Finance Minister Yiannos Papantoniou, former deputy finance minister Nikos Christodoulakis (now development minister), and Deputy Finance Minister George Drys.

The prosecutor said the evidence also supported charges of breach of duty and breach of faith involving members of DEKA's board and of the Capital Markets Commission.

The investigation focused on DEKA's activities from March 21 to April 10, 2000, before Greek general elections on April 9 that year, during which the company bought stock in Hellenic Telecommunications Organization, Hellenic Petroleum, National Bank of Greece and Commercial Bank, representing an outlay of 250 billion drachmas in state funds.

The investigation was ordered following charges filed by main opposition New Democracy deputy Miltiades Evert last year, who had accused the state-owned investment agency of bulling up the market through bulk buying in state-owned firms before the elections, and being responsible for losses suffered by retail investors in the subsequent artificial slide.

[12] Defense minister to attend European Socialist Party meeting

Athens 20/09/2001 (ANA)

The presidium of the European Socialist Party will meet in view of the European Union summit on Friday which will deal exclusively on the repercussions of the multiple terrorist attacks on the US and on the magnitude of the reaction which will follow.

[13] Simitis meets Youth Parliament representatives

Athens 20/09/2001 (ANA)

During the meeting, Simitis said that the Youth Parliament had given him an opportunity to hear about things he had not previously known, such as the issue of study aids written by the authors commissioned for writing schoolbooks.

He said he had already instructed Deputy Education Minister Philippos Petsalnikos to look into this issue.

[14] Prime Minister, finance minister discuss budget

Athens 20/09/2001 (ANA)

Issues concerning the budget were discussed at the meeting, attended also by Deputy Finance Minister George Drys.

Papantoniou said that "what concerns us is the likelihood of an extension of the international recession." In any event, he added, "we will have secure data in October on the final numbers of the budget."

He added that the budget would be tabled in Parliament on time, that is the beginning of November.

Papantoniou stressed that a prolongation of the recession of the international economy could create shocks, adding, however, that the Greek economy is protected, because it timely entered the Eurozone.

Current situation "fluid", Papantoniou says: National Economy and Finance Minister Yiannos Papantoniou on Wednesday said he saw no reason for changes in next year's draft budget for the time being.

Speaking to reporters during a press conference with Education Minister Petros Efthimiou for the euro currency, Papantoniou said the 2002 draft budget was based on assumptions existed before a terrorist attack on the US and said that the current situation was "fluid".

He noted, however, that there would be not cutbacks in a social package of measures promoted by the government.

Efthimiou said that education spending was non-negotiable.

[15] Gov�t presents Social Security Fund reform bill

Athens 20/09/2001 (ANA)

Giannitsis presented the draft bill to representatives from employers' and workers' unions.

The new bill envisages: -the abolition of revenue stamp and a collection system based on sheet registrations to be replaced by an electronic system, -pensioners will be eligible to receive minimum pension payment (around 125,000 drachmas) two months after they have filed pension applications and the difference after final settlement of their cases, currently around 8-10 months, -lowering all surcharges in fines imposed by the Social Security Fund and the time needed for lapse of debts to five years for Greek businesses entering the new electronic system.

The new bill does not envisage measures for a favorable rescheduling of existing debts, as many had hoped. "We examined this possibility but rejected it," Giannitsis said.

Employers' and workers' unions reacted positively to the bill. GSEE, Greece's largest trade union umbrella, said the draft bill was a very good intervention that will solve problems. The Greek Industries Union said the bill was a step forward, while Social Security Fund workers said it would have favorable impact on insured people, workers and employers.

[16] Structural reforms will continue, gov�t says

Athens 20/09/2001 (ANA)

Addressing a conference on "Quality in Greek cuisine", Christodoulakis noted that structural changes would not only freeze in the current situation, but they would continue. "The Greek government's strategy is not to exit intact but strengthened from the current crisis, by implementing policies that would lead us forward and not backwards," he said.

Christodoulakis said that Greece would have many more to achieve besides entering the eurozone and said its efforts would focus in passing a threatening global economic recession and not avoiding it.

[17] Greek-Turkish committee to focus on commercial fishing issues

Athens 20/09/2001 (ANA)

Along those lines, a joint Greek-Turkish committee of experts will be established to focus on the issues, the agriculture ministry announced on Wednesday.

Conversely, Agriculture Minister George Anomeritis clarified that matters revolving around the International Law of the Sea will be not be discussed, in view of the diametrically different views held by Athens and Ankara.

[18] President of Iceland meets Greek entrepreneurs

Athens 20/09/2001 (ANA)

During the meeting, Grimsson called on the entrepreneurs to increase the export of Greek products to Iceland and to contribute in general toward strengthening bilateral trade relations.

There are no Greek companies active in Iceland. On the other hand, there are two companies in Greece importing fish products from Iceland.

The two companies are Dimitris Vassiliou SA and Sif Hellas, a subsidiary of the Icelandic group Sif Ltd. Both companies import frozen fish from Iceland.

[19] British embassy organizes security equipment, services exhibition in Athens

Athens 20/09/2001 (ANA)

An embassy press release, noted that the one-day affair will take place in the central Athens hotel Plaza and will showcase electronic surveillance and communication systems, electronic counter-measures equipment, computer software for the security and surveillance markets, under-vehicle surveillance systems and body protection equipment among other products and services.

Interested parties should call the British embassy for more information.

[20] Negative returns on deposit accounts after new rate cuts

Athens 20/09/2001 (ANA)

[21] Gov't to promote Greek cuisine as tourism resource

Athens 20/09/2001 (ANA)

The plan will be carried out by the ministry, the Greek National Tourism Organization (GNTO), the state's Unified Foodstuffs Control Authority, and other organizations, Christodoulakis told a news conference.

"Beyond contact with monuments of all eras and with nature, modern tourists want to get to know the contemporary way of life of countries they are visiting. A major part of this is food and wine," he said.

The method of promoting the national cuisine will be through a quality assurance symbol that hospitality and entertainment businesses will have the opportunity to seek.

The quality symbol will be issued by the GNTO to companies that meet specifications, Christodoulakis said.

[22] EU port officials meet in Greece

Athens 20/09/2001 (ANA)

The committee's chairman, Stavros Hatzakos, said that further meetings would be held to forge a policy on deregulation that would then be submitted to the European Union's executive Commission for use in drafting legislation.

[23] Stocks rise in bid to consolidate

Athens 20/09/2001 (ANA)

The general share index gained 1.87 percent to end at 2,247.57 points. Turnover was 178.14 million euros.

For the second straight session, blue chips showed gains, helping to pull up the rest of the market. The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 1.58 percent higher; the FTSE/ASE-40 for medium capitalization paper 1.09 percent up; and the FTSE/ASE-80 for small cap equities gained 1.52 percent.

Advancers led decliners at 274 to 56 with 35 issues remaining unchanged.

The most heavily traded shares were Hellenic Telecommunications Organization, National Bank of Greece, Alpha Bank, Sex Form and Panafon-Vodafone.

Equity futures up, tracking main market: Equity futures on the Athens Derivatives Exchange on Wednesday finished at a discount, tracking the main market in brisk trade.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips gained 1.58 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks ended 1.09 percent up.

Changing hands were 8,488 contracts on turnover of 49.2 million euros, traders said.

Bond prices end mixed in heavy trade: Bond prices in the domestic secondary market on Wednesday finished mixed in heavy trade focusing on 10-year paper.

The Greek benchmark 10-year bond showed a yield of 5.33 percent, and the yield spread over German bunds was 48 basis points.

Turnover through the central bank's electronic system totalled 1.0 billion euros.

Sell orders accounted for around half of turnover.

[24] Culture minister on security measures for 2004 Olympic Games

Athens 20/09/2001 (ANA)

In reference to the existing concern following the terrorist attacks on the US and in view of the Athens 2004 Olympic Games, Venizelos told a private radio station that "there is a climate of concern and emotional stress throughout the world and particularly in the US. It is logical that this climate is transmitted also to Greece and be linked with a major event such as the Olympic Games."

He noted, however, that Greece has established a special service and a well-constructed plan and that the country "is cooperating with all the countries which have experience, know-how and which can provide help."

He said the Americans will apparently take special security measures at the Winter Olympic Games in February 2002 and that Greece will derive experience from these measures.

[25] Health minister announces new clinic for Olympic Village

Athens 20/09/2001 (ANA)

The same facilities, he continued, would also be used by 6,000 athletes and accompanying staff participating in the Paralympics the same year.

The minister said the clinic would be built on a 0.75-hectare site, with a total area of 5,000 square meters and include out-patient surgeries, ER, laboratories, scanning labs and an anti-doping control center - all fitted out with the latest in medical equipment.

Construction costs are budgeted at 2.5 billion drachmas and the clinic is due for completion in the second half of 2003.

After the Olympics, the clinic will be converted to a suburban health center for people assigned flats in the Olympic Village by the Labor Housing Organization, while some of its state-of-the-art equipment might be transferred to larger hospitals that need them.

[26] NAZI victim relatives in northern Greece file class action suit against Germany

Athens 20/09/2001 (ANA)

They filed the lawsuit with the Thessaloniki first instance court and their case will be heard on Dec. 18, 2001, while the lawyers of the plaintiffs will meet with lawyers representing Berlin on Nov. 9 in an attempt to settle the case out of court.

The association that filed the class action lawsuit represents relatives of 93 people executed by the NAZI forces in Greece, very near the end of the occupation of Greece.

A very similar case regarding victims of NAZI atrocities in Greece has been in the center of attention lately as relatives of victims executed by the NAZIs in Distomo village, south-central Greece filed a class action lawsuit and won, in lower courts, the right to confiscate and auction German state owned buildings in Athens.

That case reached the High Special Court (AED), a special judicial body composed of justices of Arios Pagos - Greece's supreme court - and by justices of the Council of State - Greece's highest administrative court. AED is called to session when the two judicial bodies issue conflicting decisions over the same case, as it happened in this instance.

This was one of the very rare instances that AED has been called upon to decide a case.

At stake, in this complex legal battle, are the buildings housing the Goethe Institute and the German Archaeological Society in Athens.

Supreme court postpones appeal hearing in WWII reparations case: Greece's High Special Court (AED) postponed its Wednesday session for Nov 21 to discuss the legality of the possible confiscation and auctioning of two German state properties in Athens as compensation to relatives of hundreds of civilians summarily executed in 1943 by Nazi occupation forces.

AED postponed the session as the draft report on the issue was not completed and more time is needed as the case involves complicated nuances of Greek and international law.

AED is a special judicial body composed of justices of Arios Pagos - Greece's supreme court - and by justices of the Council of State - Greece highest administrative court. AED is called to session when the two judicial bodies issue conflicting decision over the same case, as it happened in this instance.

This was one of the very rare instances that AED has been called upon to decide a case.

At stake, in this complex legal battle, are the buildings housing the Goethe Institut and the German Archaeological Society in Athens.

One of the points raised in the German side�s appeal cites a pending ruling by a special high court over the issue of extraterritoriality, i.e. whether Greek lower courts retain jurisdiction to hear cases involving foreign states.

The Livadia ruling had initially found in favor of the relatives of 214 Distomo villagers shot by German occupation forces, ordering Germany to pay 9.4 billion drachmas in compensation.

Berlin has consistently refused to entertain the possibility of more compensation payments, saying that no private citizen can sue a state and that Germany has already paid blanket compensation under post-war reparations to Greece.

In 1960, then West Germany paid a total of 115 million German marks to Greek victims of Nazi oppression. The relevant treaty signed between Germany and Greece did not, however, exclude other Greek citizens with claims from coming forward and seeking compensation.

[27] Prosecutor asks for conviction of 9 in trial for 'Dystos' maritime accident

Athens 20/09/2001 (ANA)

The prosecutor based his argument on a report drafted by the Maritime Accidents High Council, which found a series of problems that hampered the operations of the vessel and existed before the capsizing.

Among those on trial are six members of the company's board that owned the ship and three officials of the Greek shipping registry.

The prosecutor justified his argument saying that the company's management chose not to conduct necessary repairs on the ship, due to high cost, ordering only superficial repairs, ignoring the wish of the company's president to immediately commence repairs in 1992.

[28] Archbishop of Albania awarded 'Pro Humanitate' award

Athens 20/09/2001 (ANA)

Anastasios was bestowed the award at an international conference in Sarajevo, entitled �Christians and Muslims in Europe�.

On his part, the Orthodox Archbishop of Albania spoke on the theme of �Religion�s Contribution to the Development of Mutually Acceptable European Values�.

[29] New research presented on pre-revolutionary visionary Feraios

VIENNA 20/09/2001 (ANA - D. Dimitrakoudis)

A study by Vienna University Prof. Polychronis Enepekidis brings to light information on Feraios' contacts with European philhellenes, as found in the archives and memoirs of noted Vienna physician Johann Peter Franc (1745-1821).

Franc, a sympathizer of the Greek cause, organized meetings at his home that eventually turned the residence into an informal "Greek society" and a meeting place for Feraios and other noted ethnic Greeks in the Austro-Hungarian Empire.

The study's publication is pending, while Enepekidis said Austrian archives of the period retain a wealth of information on ethnic Greek communities' pre-revolutionary activities in Europe.

[30] FM makes demarches over press allegations regarding

NICOSIA 20/09/2001 (CNA/ANA)

The government, underlining its will to cooperate with efforts to combat international terrorism, officially requested from the ambassadors to hand over any information or evidence they may possess in connection with media claims, with a view to investigate these claims and inform the governments concerned about the outcome of the investigations.

"Foreign Minister Ioannis Kasoulides summoned urgently tonight to the Foreign Ministry the Ambassadors of the US, Britain, France, Germany, Italy, Spain, Greece, the European Union and Switzerland and made a collective demarche with regard to press reports in various countries relating to the alleged involvement of the name of Cyprus with Osama bin Laden's activities," an official statement said here Wednesday night.

The minister "underlined the political will of the government to cooperate with all the countries in the fight against international terrorism."

Kasoulides asked all the ambassadors to convey to their governments "the official request of the Republic of Cyprus to hand over to the government as soon as possible any information or evidence they may possess relating to allegations printed in the international press."

These will be investigated thoroughly in cooperation with foreign authorities and the governments of these countries will be duly informed about the results of the investigations, the statement said.

[31] Cyprus gov't surprised and concerned over former CIA chief's allegations

NICOSIA 20/09/2001 (CNA/ANA)

The government refuted categorically these allegations in the strongest possible way, pointing out that the Financial Action Task Force said in its report for 2000 that "Cyprus has a comprehensive anti-money laundering system" and was given a clean bill of health when it comes to measures to combat money laundering.

"Unfounded and unjustifiable attacks such as those by Mr. Woolsey are both disingenuous and seriously undermine the good faith efforts and commitment of the government of Cyprus to contribute to the international efforts to combat financial crimes and terrorism" a statement by the Ministry of Foreign Affairs, issued here Wednesday, reads.

The statement underlines that "Cyprus is committed to cooperating with the United States and other countries, both bilaterally as well as in international fora to fight terrorism and its sponsorship."

It notes that the government of Cyprus wishes to stress that it has been in constant contact and dialogue with the US government with a view to cooperating in combating money laundering, international terrorism and the proliferation of weapons of mass destruction etc, stressing that "at no time during this cooperation has the issue of funds belonging to the terrorist organization headed by Osama bin Laden been raised."

"Such serious allegations would have been fully investigated by the Cypriot authorities", had they been made, the statement said, adding that the government responded in the case of other requests for cooperation and investigation of information.

Regarding the allegations by Woolsey that Cyprus is a tax haven the Cyprus Government recalls that the US Department of State International Narcotics Control Strategy Report outlines the anti-money laundering regime in place in Cyprus and states that the "Central Bank of Cyprus has in place a strict regulatory framework aimed at preventing abuses within the offshore sector."

The report also notes the cooperation that exists between the two countries in fighting this growing international phenomenon. In 2001, the Financial Action Task Force, of which the US is member, conducted a review of Cyprus anti-money laundering regime against 24 specific criteria.

"Cyprus was not identified as a non-cooperative country in the fight against money laundering. The report states that Cyprus has a comprehensive anti-money laundering system", the foreign ministry statement points out.

It is also recalled that Cyprus was not included in the list of tax havens, which was published by the OECD Forum for Harmful Tax Practices in June 2000 and that most recently in July 2001, the IMF released its assessment of the banking supervision in respect of the offshore sector and commented positively.

The government of Cyprus reiterates that it fully recognizes the existence and the dimensions of this international problem, the statements reads and adds: "the fight against international crime, particularly terrorism, through international cooperation, has become one of the top priorities of the foreign policy of Cyprus."

The government also stresses that it will act "with the requisite speed and seriousness in response to any information and requests received from competent national authorities that point to the terrorist organization headed by Osama bin Laden or any other terrorists using the financial system of Cyprus."

If such information exists, the statement adds, it should be made available immediately to the authorities in order that the necessary investigations and measures are undertaken forthwith.

Woolsey told "La Republica" in Italy that Cyprus is the worst tax haven, in his comments on Osama bin Laden's finances. He said the US had told Brussels to tell Nicosia that it would not join the EU unless it hands over information about bin Laden's financial activities.

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