Athens News Agency: Daily News Bulletin in English, 01-10-05

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

CONTENTS

[01] FM's London visit aims at strengthening Greece's presence in post Sept. 11th era

[02] Greek FM meets UN chief in New York, discusses terrorism

[03] New US ambassador arrives in Greece

[04] Athens: US evidence points to bin Laden, 'al-Qaida'

[05] Greek FM to participate in NATO conference in Bulgaria

[06] NATO's SEDM deputy defense ministers meet in Rome

[07] CoE condemns terrorism during meeting in Moscow

[08] Greek, FYROM representatives discuss name issue under UN auspices

[09] Greek military creates section on nuclear, bio-chemical defense

[10] Parliament president receives CoE secretary general, focuses on Cyprus issue

[11] Council of Europe secretary on illegal immigration

[12] Latest poll provides mixed results

[13] Event held marking the founding of the New Democracy party

[14] Coalition party leader criticizes Turkish terrorism report

[15] Delors proposes federation of nations in Europe

[16] Finance minister says US � Greece cooperation exists in tackling terrorism

[17] Economic climate indicator holding steady, think tank says

[18] New round of rate cuts seen if ECB lowers intervention

[19] EU asks Greece to harmonize law on public contracts

[20] Gov't to hire private sector staff for EU funding management

[21] Greek, Turkish capital market commissions to sign pact

[22] Gov�t announces "Greek Silicon Valley" project

[23] Greek short-term bonds in demand in September

[24] Large chunk of Athens 2004 Olympics cash for goods, services

[25] FIFA official optimistic over state of soccer stadiums for Olympic Games

[26] Cyprus government permits US warplanes to use republic's air space and land for operations against terrorism

[27] Bush thanks Clerides for Cyprus' support in fighting the scourge of terrorism

[28] Members of US Congress express support for solution of Cyprus problem based on UN resolutions

[01] FM's London visit aims at strengthening Greece's presence in post Sept. 11th era

LONDON, 05/10/2001 (ANA - L. Tsirigotakis)

"I believe that historians will talk of the pre and the post Sept. 11th political history of the world. The post Sept. 11th era is being formulated right now and I think that the strength of our voice should be heard, the Greek voice should be heard, we should be part of the formulation of this new policy which is being born right now," Papandreou told journalists here after the meeting.

"The first impression that the reaction of the international community would be erratic has been overcome and now there is serious discussion for a focused reaction aiming to confront terrorism, which will be followed by an effort to widen as much as possible an alliance that would include the Arab and Muslim worlds. We are not waging a war of civilizations, our aim is a long-term level of basic principles, such as democracy, human rights and an open society," he added.

"Thus, we in Greece are at a geographical location where there are many civilizations, many religions and you must understand what the results of a war of civilizations or religions would be. It would be a tragic moment for our country," he said.

Commenting on the possibility that there may not be military action as a result of the terrorist attack, Papandreou said "It is my impression that a military intervention is not ruled out, but I believe that it will not be the only or main means of reaction. The re-action, as (U.S. Secretary of State Colin) Powell said to us, will have many facets, political, diplomatic and economic way and color".

"That means that we will have a network of reactions, which will have as its aim the formulation of a wider campaign, not a war, against terrorism and in support of some basic values of the open and free society," he added.

"In any case, I am under the impression, which I can not guarantee as Greece is not making the decisions, that the reaction of the international community will be focused.

This is my impression from discussions that I had in America and on an international level," Papandreou said.

Speaking on his meeting with his British counterpart, Papandreou said that they discussed regional problems, which, as he said, were now in the news and the international community recognizes that it is time they are resolved.

"In the talks I had at the Foreign Office, as well as in other contacts on an international level I found out that the international community recognizes that it is the right time for us to deal and resolve regional problems," Papandreou said.

"Now is really an opportunity for the international community, to deal with the regional problems, which many times create the reasons for crises, violence, even terrorist actions. Thus the Cyprus issue, the Balkans, the Middle Eastern issue, which are regions and issues close to our hearts, especially the Cyprus issue, are issues that I discussed with everyone," Papandreou added.

In concluding his comments, Papandreou noted that he is planning a diplomatic mission to countries of the Arab world in an effort, as he said, to achieve a strong presence for Greece in the developments of the post Sept. 11th era.

[02] Greek FM meets UN chief in New York, discusses terrorism

NEW YORK, 05/10/2001 (ANA - M. Georgiadou)

Papandreou met with Annan late on Wednesday night Greek time, after visiting the 'Ground Zero' site of the Twin Towers disaster with the Greek Orthodox Archbishop of America Demetrios and meeting with members of the Greek-American community in the city. Regarding his meeting with the UN chief, Papandreou said that he supported involving the UN in the fight against terrorism and the crisis that erupted after the Sept. 11 strikes against the United States.

"I think working with the United Nations will help achieve the widest possible consensus and alliance of all countries against the phenomenon of terrorism, and particularly against the specific organization that caused this event," Papandreou said.

He also stressed that the present crisis should not divert attention from regional crises, such as in the Balkans or the Middle East that often triggered violent or terrorist actions.

The Greek foreign minister said that he and Annan had also exchanged views on the Cyprus issue and that the UN Secretary-General had promised to continue his efforts for a resolution to that problem.

Another issue discussed was the situation in the Former Yugoslav Republic of Macedonia (FYROM) and ways in which the UN could help stabilize the region.

Papandreou said he had also conveyed to Annan the views expressed by his counterparts during his recent tour of Middle East countries.

"It was a very useful and constructive meeting. The role of the United Nations today is historic, at a very difficult time for humanity when the future of many generations is at stake," Papandreou concluded.

Statements to Turkish press: Responding to questions put by a correspondent of the Turkish newspaper "Hurriyet", Papandreou said there was now an opportunity for Greece and Turkey to work together in the fight against terrorism.

"I hope there is no 'war of statements' between us over these issues," he added, while denying recent allegations by certain Turkish officials that there 'camps' of Kurdish militants on Greek territory.

Asked if Greek-Turkish cooperation was a possibility if the US decided to start a military operation against Afghanistan, Papandreou said that there would be if necessary, but that nothing specific had been asked of Greece at this time.

"The US has asked Greece to use an important base in our country. If it is necessary we will work with Turkey and other allies. It is a possibility but not something we can predict."

The Greek minister also stressed that the recent close cooperation between Greece and Turkey and the new atmosphere this had created could also be brought to bear on the Cyprus problem.

"I think that the new element that must be taken into account is that both countries are working to make the two communities on Cyprus cooperate. I think Cyprus could become a model for cooperation," he said.

Papandreou had been asked to comment on a statement by his Turkish counterpart Ismail Cem, who met the UN Chief last Saturday, that 'certain elements' should be conceded to Turkish-Cypriot leader Rauf Denktash so that talks on the Cyprus problem could continue.

Papandreou comments on terrorism during CNN interview: Greece is strongly committed to the fight against terrorism, Greek Foreign Minister George Papandreou said in a televised interview broadcast by CNN International.

Papandreou gave the interview on Wednesday during a visit to New York, during which he had meetings with UN Secretary-General Kofi Annan, city officials, the Greek Orthodox Archbishop of America Demetrios and members of the Greek-American community.

The Greek minister also took the opportunity to visit 'Ground Zero', the site of the Twin Towers disaster of Sept. 11 and see the ruins of World Trade Center at first hand.

During the interview, Papandreou expressed the Greek government's deep sorrow at the events of Sept. 11, and noted that terrorism was a common problem that required complete cooperation to be dealt with.

"Greece is ready to cooperate with US authorities, the FBI and the CIA to combat terrorism," he added.

Parrying questions about last year's State Department report, which singled Greece out as Europe's 'weak link' in the fight against terrorism, Papandreou said that the report was relatively old and that these reports were rewritten each year.

He reiterated that Greek authorities are fully cooperating with US authorities, and that terrorism was a problem for the entire Balkan region, not just Greece.

Papandreou was also asked to comment on an opinion poll in Greece, in which 28 per cent of those responding said they felt great sympathy for the victims of the terrorist strikes but another 21 per cent believed that the US was paying for past mistakes. He replied that Greek people were deeply stricken by the attacks and felt a great degree of solidarity with the US. At the same time, he pointed out, Greeks looked for the underlying causes of the attacks, as did people all over the world.

"We must clearly differentiate between these two issues. On the one hand there are the unjustifiable and illegal terrorist actions and on the other hand the problems which led to them, without this meaning that we are trying to justify terrorist actions," he said.

Papandreou interview with PBS Channel 13 in New York: Greece hopes to use its good relations with Arab countries to contribute to the effort for an international alliance against terrorism, Greek Foreign Minister George Papandreou said in New York, during a televised interview broadcast by PBS Channel 13.

The Greek foreign minister gave the interview during his stay in the city on Wednesday, where he had successive meetings and also visited 'Ground Zero', the devastated site of the former World Trade Center, razed by the terrorist strikes of Sept. 11.

In more practical terms, Papandreou said that Greece was providing operational assistance to US airplanes from a base on Crete, helping to locate suspected terrorists and investigating in-stances of suspected money-laundering.

He also stressed the role of the United Nations in helping counteract the justifications and arguments used by terrorists in many countries, who presented the US as the sole superpower that imposed its will everywhere.

Asked if Greece was part of the alliance against terrorism, or whether its participation came with conditions, Papandreou said that "Greece is open to all forms of cooperation with the US, with which it is in constant contact."

He said that the US had informed Athens of the evidence against Osama bin Laden.

In any case, he added, "the political conclusion is that this was an attack on an ally, who enjoys Greece's absolute solidarity".

During the interview, Papandreou also referred to relations between Greece and Turkey, and said that there were still out-standing problems that might disrupt these, such as the Cyprus problem.

[03] New US ambassador arrives in Greece

Athens, 05/10/2001 (ANA)

Alighting from the plane, Miller said he was very happy to be in Greece for the third time and that he would do what he could to promote good cooperation between Greece and the US.

He stressed that Greece and the US are linked by a long friendship, share the same ideals, the same history and the same goals.

"Sometimes we disagree on tactics, but this happens in a mature relationship between two friends," he added.

Regarding the recent terrorist strikes against the US, Miller said that if this kind of threat was not eliminated, then everyone was in danger.

"We must all work very hard so that people do not feel afraid when they board a plane," he said.

Regarding cooperation between Greece and the US in the Balkans, the new ambassador said that many things had changed in the region in recent years and that Greece had special relations with Balkan countries.

"Our common goal is for there to be democratically elected regimes," he added.

Talking about his priorities during his term as ambassador, Miller said that these would be issues that he had also worked on in the past, apart from the situation created after the Sept.11 terrorist strikes against New York and Washington.

He said that these would include the Cyprus problem, Aegean issues, the promotion of US exports, terrorism and counter-terrorism, as well as new issues, such as the Olympic Games in Athens in 2004.

Miller was confirmed as the new ambassador in Athens by the US Senate on August 1, 2001, and sworn in on September 21, 2001.

He served as the US Ambassador to Bosnia and Herzegovina from 1999 until 2001 and before that was Special Coordinator for Cyprus from August 1997. From 1994 to 1997 he held the position of Deputy Chief of Mission at the US Embassy in Athens.

Ambassador Miller joined the State Department in 1976. During most of the 1980s and early 1990s, he concentrated on the Middle East, serving twice on the Israeli Desk, heading the Office of Maghreb (North African) Affairs, and acting as Director of an office on counter-terrorism. He served in the embassy's political section in Athens from 1985-1987.

Earlier in his career, Miller served as an analyst for Vietnam, Laos, and Cambodia (1976-77), as Special Assistant to the Undersecretary for Political Affairs (1977-79), and as Deputy Principal Officer at a US Consulate in Thailand (1979-81).

He was born in Chicago, Illinois in 1948 and received his B.A. in Political Science from the University of Michigan in 1969. He holds two Masters Degrees (in Asian Studies and Political Science) and a Ph.D. in Political Science from the University of Michigan. He speaks Greek, Spanish, Thai, Indonesian, and Japanese.

Ambassador Miller and his wife Bonnie have two children, Julie and Eric.

New US envoy to attend Thessaloniki event on Saturday: New US ambassador to Greece Thomas Miller is set to travel to the northern port city of Thessaloniki on Friday in order to attend a Saturday symposium organized by a local daily.

The theme of the event is entitled "Borders and Minorities in the Balkans", a highly topical subject that's expected to attract political personalities from throughout SE Europe.

Among the speakers set to address the symposium are former Albanian premier and current ruling Socialist Party leader Fatos Nano, Serbian government Deputy PM Nebojsa Covic, former Bulgarian president Zhelyu Zhelev, the ex-FM from the Former Yugoslav Republic of Macedonia (FYROM) Ljubomir Frckovski, Kosovo Orthodox Bishop Artemios, the leader of Turkey's moderate Islamic Party and former Istanbul mayor, Recep Erdogan, as well as representatives from the Albanian minority in FYROM.

On the Greek side, National Defense Minister Akis Tsohatzopoulos, other ministers and opposition deputies will address delegates.

Miller isn't scheduled to address the symposium, however, as he has not yet presented his credentials to President of the Republic Kostis Stephanopoulos.

The event is being organized by the Thessaloniki-based "Macedonia" newspaper to commemorate its 90th year of publication.

[04] Athens: US evidence points to bin Laden, 'al-Qaida'

Athens, 05/10/2001 (ANA)

"The evidence leads to a conclusion that responsibility for the attacks on the United States lies with the specific terrorist group al-Qaida, its leader and its cadres," government spokesman Dimitris Reppas told reporters a regular press briefing.

The spokesman said US Secretary of State Colin Powell conveyed the information to his Greek counterpart George Papandreou during their meeting in Washington on Wednesday.

Reppas also reiterated that Greece would offer all necessary assistance to rid the world of the "international terrorism" scourge.

Finally, in response to a press question, he said the foreign ministry is always willing to brief opposition parties over such issues.

State Dept.'s Jones: US viewing battle against terrorism as 'broad war': US Assistant Secretary of State Elizabeth Jones reiterated on Thursday that Washington is viewing a pending military campaign against international terrorism as a "broad war, one that includes ending the ability of these (terrorist) organizations" from being financed.

Jones briefed a group of Greek journalists via satellite link from her office at the US State Department, while US President George Bush was announcing from the State Department building emergency assistance for the Afghan people.

Jones, a former US ambassador to Kazakhstan (1995-98) and the deputy chief of mission in Islamabad (1988-92) who currently heads the State Department's European and Eurasian Affairs desk, emphasized that Washington is pleased with the level of support it is receiving from the international community, and especially the European Union, following the shocking Sept. 11 terrorist attacks in New York and Washington.

The high-ranking State Department official agreed that terrorism has emerged as the number one priority on numerous countries' agenda, while she forwarded an opinion that America's bilateral relationships with many nations, most notably Russia, improved in the wake of the unprecedented terrorist strikes.

She also echoed comments by US Secretary of State Colin Powell this week over Greece's role, statements the latter made following his meeting here Tuesday with Greek Foreign Minister George Papandreou.

Specifically, Jones said the US administration appreciated Athens' commitment to supporting the brewing international campaign against global terrorism.

She also noted that "we've had a quite a number of discussions over the past years with the Greek government over closing down terrorism ... There's more that Greece can do," paraphrasing Powell's statement of a few days ago, as she said.

Although one of the safest countries in the European Union, a small urban terrorist cell -- targeting mainly Greek business and political leaders as well as US interests -- continues to elude lo-cal authorities.

Turning to a regional issue dominating Greece's foreign policy agenda for almost three decades, Jones said the EU, and not the United States, will decide on whether Cyprus will attain membership in the 15-nation bloc, whereas she also commented on the stagnant UN-led proximity talks between the two sides on the divided east Mediterranean island.

The US diplomat said Washington hopes the United Nations continues its efforts to get the two sides back to the negotiating table, before mentioning that the Turkish side is the one that "hasn't come to the negotiating table".

[05] Greek FM to participate in NATO conference in Bulgaria

SOFIA, 05/10/2001 (ANA - B. Borisov)

Greek Foreign Minister George Papandreou will participate in the conference, which will include state leaders from 10 NATO candidate states and high-ranking NATO military officials.

The agenda will include discussions on the role and enlargement of NATO, in light of the new developments, following the terrorist attacks in the United States.

[06] NATO's SEDM deputy defense ministers meet in Rome

Athens, 05/10/2001 (ANA)

Greek Deputy Defense Minister Dimitris Apostolakis stressed, during his address to the body, that actions against terrorism should be directed exclusively against groups or individuals that tolerate or support terrorism.

The SEDM deputy ministers convened in Rome on Thursday in the framework of the annual meeting of the representatives of the 10 countries that are participating in the SEDM initiative.

Apostolakis also stressed that the war against terrorism should not be turned into a war between civilizations, while speaking on conditions in the Balkans, he ruled out any changes in the region's borders.

"Within this framework, we support the incorporation of the Albanian populations of the region within the boundaries of the countries of the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia (FYROM), where they live today, while at the same time these populations should retain their ethnic characteristics and their cultural heritage," Apostolakis said.

"The future belongs to multi-ethnic democracies and for that reason it is of prime importance that we be open to bi-ethnic entities," he added.

[07] CoE condemns terrorism during meeting in Moscow

Athens, 05/10/2001 (ANA)

Greek Justice Minister Michalis Stathopoulos represented Greece in the meeting, proposing in the off agenda discussions on terrorism that decisions of the CoE on ways to confront terrorism should include the need to research and confront the reasons behind terrorism, a proposal that was accepted.

A press release issued by the justice ministry noted that the CoE decided to condemn terrorism saying that "with its prestige, history and traditions unites its voice today with other international organizations to absolutely condemn the terrorist attacks of Sept. 11, as well as every other terrorist action in any part of the world."

The Greek justice minister stressed that the battle against terrorism should not be turned into a war of religions.

"The countries of Europe have lived in the past conditions of religious fanaticism and know very well that it can develop irrespective of country or religion, if more general elements allow it to do so," Stathopoulos said.

"We should all contribute, so as to create in all the world such conditions by which people would not be divided by religious faith, but remain an object of a basic human right, which demands mutual respect," Stathopoulos said.

[08] Greek, FYROM representatives discuss name issue under UN auspices

NEW YORK, 05/10/2001 (ANA-M. Georgiadou)

Greece was represented by its Permanent Representative to the United Nations Ambassador Elias Gounaris and FYROM by Ambassador Ivan Tosevsky, while the UN Secretary General was represented by his personal envoy Matthew Nimetz, a UN chief's spokesman said.

The two sides discussed issues surrounding FYROM's insistence of using the word "Macedonia" in its official name, in the face of Greece's refusal to accept the use of the term by the neighboring country, that has historical roots in Greek history and culture.

The talks were conducted on the basis of the Sept. 13, 1995 Interim Accord they signed, in efforts to resolve the problem.

They decided to meet again on a date to be agreed, the spokes-man added.

[09] Greek military creates section on nuclear, bio-chemical defense

Athens, 05/10/2001 (ANA)

Commenting on the decision of the Greek Army General Staff (GES), Tsohatzopoulos noted that the establishment of this special section will further the arsenal of the Greek military.

He said that the Armed Forces already have the necessary equipment, a fact proven during their missions in Kosovo and Bosnia at times that relevant problems arose.

The special section will be charged with responding in cases of severe environmental pollution for the benefit of the Armed Forces or the state. In the international scene, the chemical and biological threats are considered as the most likely, while the nuclear is considered as secondary threat, a GES press release noted.

The officers to staff the new section will be graduates of the United States armed forces Chemical School, while the NCOs will be trained in the Greek Armed Forces' Special Forces Academy.

The special section is expected to be fully operational soon.

Tsohatzopoulos also briefed members of the European Network of Greek Women Journalists on issues surrounding the policy of security and defense in confronting terrorism.

Chemicals threat discussed at health ministry: Necessary action to be taken at a preventive level and in the event of a threat posed by chemicals was discussed by officials at the health ministry on Thursday.

Measures to be implemented include readiness exercises for the eventuality of chemical, nuclear and biological warfare, which will be increased in Greece.

Hospital paramedics will be trained in systems of full isolation of victims from a possible chemical strike and vaccines should be protected to avoid infection, while their reserves should be increased.

Health Minister Alekos Papadopoulos said Greece is doing what is being done in the other European countries and is following measures taken there, but warned that citizens should not panic.

[10] Parliament president receives CoE secretary general, focuses on Cyprus issue

Athens, 05/10/2001 (ANA)

"As long as Europe and its organizations will confront with flexibility the outright violations of international law, as is the case of the military invasion and occupation of Cyprus and will indulge the human rights violations - while they (human rights) are the constitutional reason for their existence, as is the case with the CoE - they (organizations) will not only endanger their good name, but they will also be accessories to violent establishments and accessories to illegal actions," Kaklamanis said.

[11] Council of Europe secretary on illegal immigration

Athens, 05/10/2001 (ANA)

He said the three stages in which an integrated management strategy should be applied are the immigrants' countries of origin, transit countries for immigrants and countries receiving them.

"We should turn our words into deeds. Immigration should be separated from terrorism. Because in the first case it is necessary for us to protect human rights and dignity. Meaning we must adjust to the new challenges of the era of open societies," Schwimmer said.

Meanwhile, Schwimmer concluded his contacts in Greece, after visiting the country on the occasion of the conference held in Athens under the auspices of the Council and the Greek government.

Schwimmer met with President Kostis Stephanopoulos, Parliament President Apostolos Kaklamanis, Alternate Foreign Minister Elizabeth Papazoi and members of the Council of Europe's parliamentary delegation.

He also met with main opposition New Democracy party leader Costas Karamanlis and Coalition of the Left and Progress party leader Nikos Constantopoulos. He said he was unable to meet Communist Party of Greece (KKE) secretary general Aleka Papariga because a time suiting both of them was not found.

Schwimmer said the operation of all international organizations is taking on a new dimension following the terrorist attack in the United States on September 11.

He added that talks with Greek officials focused on the issue of tackling terrorism and the Council of Europe's contribution to this end.

He further said the body he heads has suitable apparatuses which, with the strengthening and improvement of its legal framework, will be able to contribute effectively in confronting terrorism.

Labor minister says presence of legal immigrants positive: Labor Minister Anastasios Giannitsis, addressing the World Conference on Illegal Immigration in the Mediterranean on Thursday, noted the positive aspect of the presence of legal immigrants in the country.

The conference is attended by representatives from 44 countries.

"The presence of legal immigrants in our country can even be considered positive since they support the sectors of tourism and agriculture. The curbing of the labor cost and strengthening the 'flexibility' of businesses which is due to the strong presence of foreign laborers in Greece can certainly not be listed among the positive repercussions of immigration. However, as a matter of fact, this evidence allows a considerable number of primarily small businesses, whose viability is marginal, to survive in the strongly competitive environment and in this way save jobs for the local labor force, which otherwise might have been lost," he said.

Giannitsis said one in seven children born in the country belong to immigrant families and as a result, according to evidence, the-re is a decrease in the low birth rate. Another positive aspect from the existence of legal immigrants is their contribution to social security payments, he added.

He further said that from 1997 until now about 750,000 immigrants have applied for and received a green residence card, who are contributing to Greece's economic progress.

[12] Latest poll provides mixed results

Athens, 05/10/2001 (ANA)

The Communist Party of Greece (KKE) came in a distant third with 5.4 percent - approximately the same percentage the party garnered in the April 2000 election - with the recently founded Free Citizens' Movement Party (KEP) dropping for the first time in any poll behind KKE to 5.1 percent.

Additionally, Prime Minister Costas Simitis is considered the most capable of holding the premier's seat by 33.1 percent of those asked, followed by ND leader Costas Karamanlis with 29.9 percent. KEP founder Dimitris Avramopoulos, who also doubles as the mayor of Athens, came in third with 9.8 percent, although he still leads all political leaders in terms of popularity with 60.5 percent.

Finally, when asked which party they preferred to govern the country, 35.3 percent of respondents picked PASOK, just slightly ahead of ND's 34 percent. However, when asked to predict which party will win the next elections, 45.8 percent forecast a ND victory, as opposed to 32.4 percent for PASOK.

The poll was conducted by the Metron Analysis firm and aired Wednesday evening by a local Athens television station.

[13] Event held marking the founding of the New Democracy party

Athens, 05/10/2001 (ANA)

In his address, ND leader Costas Karamanlis presented his party's ideology, underlining that all its fundamental political choices had been vindicated. He also stated that he insisted on making overtures to the voters of other parties.

Karamanlis went on to refer to ruling PASOK's contribution to the country. "It is apparent that the creation of PASOK helped in the stabilization of democracy. I respect its people and personally I do not at all underestimate the social reflexes of its founder. We are faced however by many of his government's serious mistakes, but it is not appropriate to talk about this issue at this moment," he said.

Karamanlis said the New Democracy was founded to serve democracy. The ND leader added that what was needed was cooperation and unity of forces to confront the new dangers and that his party was directed to all Greeks and believed in all the citizens, irrespective of ideological origin.

The ND leader further expressed the need for a new aggressive economic policy but also the necessity to confront social and daily problems.

[14] Coalition party leader criticizes Turkish terrorism report

Athens, 05/10/2001 (ANA)

Referring to the report in the newspaper "Sabah", Constantopoulos said they are underhand and provocative actions for which countries, governments and citizens should all be concerned.

He added that the "bell tolls for all because the lists of suspicious countries and undesirable politicians will be made in this way and the climate which will also lead to a witch hunt inside countries will prevail in this way".

Constantopoulos called on the government to react immediately and "even more so because it is aware that behind these reports lie apparatuses which are forging and engineering the scene of a widened political crisis in the region".

[15] Delors proposes federation of nations in Europe

Athens, 05/10/2001 (ANA)

Reviewing the landmarks of European unification and reaching Economic and Monetary Union (EMU) and the unified currency, Delors, who focused on the issue of "The EU between widening and deepening", underlined that the community method applied since the European Union was founded until EMU has exhausted its limits. He added that a qualitative leap is necessary which will lead to political unification.

Commenting on the accession of Cyprus, regardless of its political problem, he said "the political decision has already been taken when the 15 decided the start of Cyprus' accession negotiations with the EU, without raising a solution to its political problem as a precondition", adding that "when accession negotiations are completed we shall see what will be done."

[16] Finance minister says US � Greece cooperation exists in tackling terrorism

Athens, 05/10/2001 (ANA)

Commenting on whether there is a list at the Bank of Greece ac-cording to which there are indications of money-laundering, Papantoniou said it is a classified document.

Referring to the economy, Papantoniou said the Greek economy is resisting pressures following the terrorist attack in the U.S. and that if there are no more negative developments consequences for the Greek economy will be limited.

On the question of the course of the economy after next week's ruling PASOK party congress, he said the congress will be one of rallying and cooperation and economic policy will remain unchanged after it.

[17] Economic climate indicator holding steady, think tank says

Athens, 05/10/2001 (ANA)

According to a survey conducted by the think tank, the confidence of Greek companies and consumers has not been shaken by the attacks or their aftermath.

At the same time, the indicator has shown a steady decline in the past few months but at a slower rate that its equivalent for the whole of the European Union, the survey said.

[18] New round of rate cuts seen if ECB lowers intervention

Athens, 05/10/2001 (ANA)

The anticipated rate cut by the ECB to meet what may be an increasing economic slowdown in eurozone countries may come as early as next week, in what would be the fourth reduction this year, the analysts said.

After the latest domestic rate reductions that began in September, interest on savings deposits totals about minus 2.0-3.0 percent on lesser sums, taking into account a 15 percent tax on interest and an inflation rate of 3.4 percent to 3.5 percent, they said.

Returns are roughly the same in most credit institutions.

National Economy and Finance Minister Yiannos Papantoniou has said that he expects a further ECB rate decline following the repercussions of terrorist attacks in the US on September 11.

[19] EU asks Greece to harmonize law on public contracts

BRUSSELS, 05/10/2001 (ANA / M. Spinthourakis)

The request was triggered by an urban renewal program in the northern town of Serres whose tender the Commission says was not published in the EU's official gazette.

The government has two months to send a satisfactory reply, or risk being taken to the European Court, the Commission said in a statement.

[20] Gov't to hire private sector staff for EU funding management

Athens, 05/10/2001 (ANA)

[21] Greek, Turkish capital market commissions to sign pact

Athens, 05/10/2001 (ANA)

The agreement is expected to pave the way for cooperation pacts among other market authorities, the Greek commission said in a statement on Thursday.

Accompanying the head of the head of the Greek capital markets commission, Stavros Thomadakis, will be the president of the Athens Stock Exchange, Panayotis Alexakis; the managing director of the Central Share Depository, Loukas Zagas; and the head of the Association of Athens Stock Exchange Members, Panayotis Voillis.

Signing the cooperation deal for the Turkish capital market commission is Dogan Cansizlar, its president.

[22] Gov�t announces "Greek Silicon Valley" project

Athens, 05/10/2001 (ANA)

Christodoulakis signed a memorandum of cooperation with the Spata municipality and Akropolis SA to create a technological park for high technology companies.

The minister said the project was a "growth lung" for business activity in the IT sector and for employment in the wider region, while it would also lead to a new wave of investments in technology.

"Our aim is to create a modern technological center-hub because of Attica's geographical position to become the base for techno-logy companies' expansion drive in neighboring countries' markets," Christodoulakis said.

The project is also expected to attract domestic and foreign companies, creating beneficiary synergies and strengthening Greek enterprises' presence in international markets. It would also contribute to strengthening economic growth in Attica and the country.

The project, budgeted at 50 billion drachmas, is expected to be completed by July 31, 2004, ahead of the start of the Athens 2004 Olympic Games.

The development ministry will fund the first stage of the project with the sum of 5.0 billion drachmas.

The High Technology Park Akropolis AE company was founded in September 2000 on the initiative of the Hellenic Union of Informatics and Communication Enterprises with the participation of 100 companies from the sector.

[23] Greek short-term bonds in demand in September

Athens, 05/10/2001 (ANA)

The central bank said that an initial upward trend in the early days of September was reversed sharply following the 11th September tragic events, but that a recovery was underway.

Long-term bond prices fell between 21 (15-year) and 82 (20-year) basis points, in contrast with short-term bond prices which jumped between 56 and 83 basis points over the same period, respectively.

The 10-year bond ended September at 100.80 almost unchanged from the previous month.

The average yield spread between the three-year and the 20-year bond widened to 210 basis points in September from 165 the previous month, while the spread with the 10-year bond rose to 153 basis points from 116 over the same period.

The yield spread between the Greek and the German state bond prior to September 11th was 45 basis points and 50 basis points after the event, reflecting capital flows to central European markets, mainly Germany's.

However, the Greek/German bond spread fell to 48 basis points in September from 49 in August and was trading at 45 basis points on Wednesday, 3 October.

Turnover in the electronic bond market totalled 26.311 billion euros in September from 22.917 billion the previous month.

The terrorist attack in the US contributed in shifting investors towards the short-term of the yield curve, the central bank said.

The five-year bond yield fell to 4.10 percent from 4.34 percent in September 10.

The Bank of Greece said the bond market's outlook was positive, with slower growth rates around the world's largest economies combined with lower fuel prices setting conditions for contained inflation and lower interest rates.

Greek current accounts deficit drops in Jan-July: Greece's current accounts deficit fell by 314 million euros in the January-July period compared with the same period in 2000, the Bank of Greece said on Thursday.

The central bank said the country's current accounts deficit totalled 4.358 billion euros, reflecting an increase surplus in the services and transfer trade balance over the same period. The revenues balance, however, saw the deficit doubling due to higher payment for interest, dividends and profits.

The financial services balance recorded a decline in surplus to 3.063 billion euros in the January-July period, from 5.691 billion last year, reflecting a large outflow in "other investments" due to statistical change in the presentation of the country's foreign exchange reserves, totalling 6.6 billion US dollars at the end of July, in line with European Central Bank's new guidelines.

Direct investments totalled 747 million euros in the first seven months of 2001, almost triple compared with the same period last year, reflecting the purchase of Interamerican by Eureco BV, while portfolio investments totalled 2.244 billion euros (net inflow) slightly down from 2000 reflecting a narrowing spread between the Greek/eurozone bond yields.

Mutual fund assets slump 7.8 pct in Sept vs. Aug: Total assets of Greek mutual funds totalled 8.1 trillion drachmas at the end of September, down 7.8 percent from 8.79 trillion drachmas in the previous month, the Union of Institutional Investors said in a monthly report released on Thursday.

The union attributed the decline mainly to a slump in global markets after terrorist attacks in the US on September 11.

At the end of September, the assets of domestic equity mutual funds fell by 23.95 percent. The Athens Stock Exchange's general index declined by 19.41 percent in September.

Stocks rise, buoyed by world markets: The Athens bourse finished sharply higher on Thursday, fuelled by sentiment in world markets in the wake of a minor bout of domestic profit-taking in the previous session.

The general share index gained 2.18 percent to end at 2,272.14 points. Turnover was higher at 157.5 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 2.53 percent up; the FTSE/ASE-40 for medium capitalization paper 1.81 percent higher; and the FTSE/ASE-80 for small cap equities 2.18 percent up.

Advances led declines at 322 to 29 with 14 issues remaining unchanged.

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

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

The Greek benchmark 10-year bond showed a yield of 5.11 percent, and the yield spread over German bunds was 45 basis points.

Turnover through the central bank's electronic system totalled 1.7 billion euros.

Sell orders accounted for just over half of turnover.

Equity futures end at discount again: Equity futures on the Athens Derivatives Exchange on Thursday finished at discount, brushing off a sharp rise in the main market.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips gained 2.53 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks ended 1.81 percent up.

Changing hands were 7,489 contracts.

[24] Large chunk of Athens 2004 Olympics cash for goods, services

Athens, 05/10/2001 (ANA)

"It is obvious that spending of this level cannot but have a salutary effect, due both to its direct and indirect impact on Greece's production capacity," Spanoudakis told a seminar on Olympics supplies for the executives of domestic enterprises.

The organizing committee's procurements director, Panayotis Predicts, told the seminar that the transportation of one million sports goods worth 6.0 billion drachmas would be effected by sea in 2,000 containers and by land in 5,000 trucks; with another 1,000 tones to travel by air.

[25] FIFA official optimistic over state of soccer stadiums for Olympic Games

Athens, 05/10/2001 (ANA)

Accompanied by other FIFA officials, he held talks with members of the Athens 2004 Olympic Organizing Committee.

He said that based on the plans presented to him and on the briefing he was given, the stadiums would be ready by December 2003.

He added that there were matters that had to be settled such as at what stadium the soccer finals would be held but that the Greek side had assured him that a final answer would be given by the end of November.

[26] Cyprus government permits US warplanes to use republic's air space and land for operations against terrorism

NICOSIA, 05/10/2001 (CNA/ANA)

Speaking after Thursday's Council of Ministers meeting, Papapetrou said these facilities were offered as part of the world-wide effort against terrorism, noting that "every country has an obligation to contribute to the fight against terrorism."

"The US will inform us (about the use of the air space) through brief procedures and via signals determined by today's decision, without any further procedure. Cyprus does not believe that the cabinet decision makes the country a target for terrorist activity, Cyprus is not neutral in the fight against terrorism," Papapetrou said.

He said that US military jets will be able to land and take off from the air base "Andreas Papandreou" as well, on the island's western coast.

"The permission was granted for an indefinite period of time and this issue will be reviewed in the light of developments," he added.

Asked if the cabinet discussed allegations that Cyprus is involved in terrorism, Papapetrou referred to a series of statements, including one by State Department Spokesman Richard Boucher that give a response to those allegations.

During his briefing on Thursday, Boucher replying to a question on this matter, said the US "welcome the government of Cyprus' pledge to support fully the international community in the battle against terrorism."

Boucher also noted that "Cypriot authorities have taken steps to tighten up implementation of regulations aimed at identifying and stopping money laundering, including efforts to strengthen its banking laws and regulations to prepare for its bid to join the European Union."

He said the Financial Action Task Force, having investigated Cyprus, concluded that the "Cypriot anti-money laundering regime met all international standards."

Boucher also referred to the US annual report on efforts to combat money laundering and said this noted the "progress made by Cyprus in improving its legal regime and that effective enforcement of such laws is essential. "Ambassador Bandler said the decision taken by the Council of Ministers was "indeed impressive," adding that "Cyprus is really moving forward in a serious way in all parts of this agenda."

Speaking after a meeting with Foreign Minister Ioannis Kasoulides who briefed him on the cabinet decision, said he will at a later date convey to him a letter of appreciation from US Secretary of State Colin Powell.

Replying to a question, Bandler said the Cyprus problem and other issues that involve regional stability "remain very fixed and important part of the American prime policy agenda."

[27] Bush thanks Clerides for Cyprus' support in fighting the scourge of terrorism

NICOSIA, 05/10/2001 (CNA/ANA)

In his message of congratulations to Cyprus President Glafcos Clerides, on the anniversary of the independence of Cyprus on 1 October, President Bush thanked the president and "the Cypriot people for the touching words of support following the attacks against the US on September 11."

Underscoring the "strong bonds of friendship" between Cyprus and the US, Bush thanked President Clerides for his support and extended "best wishes" him and the people of Cyprus for the coming year.

[28] Members of US Congress express support for solution of Cyprus problem based on UN resolutions

WASHINGTON, 05/10/2001 (CNA/ANA)

Speaking before the Congress, on the occasion of the 41st anniversary of Cyprus Independence Day (October 1) Democratic Congressman of New York Joseph Crowley and Democratic Congresswoman of New York Carolyn Maloney noted Cyprus was one of the leading candidate nations to join the European Union "in the next round of expansion, in 3 to 4 years" and indicated that the people living in the government-controlled areas of the island "enjoy one of the world's highest standards of living" whereas "sadly, the people living in the occupied area continue to be mired in poverty."

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