Athens News Agency: Daily News Bulletin in English, 01-12-19

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

CONTENTS

[01] Greek premier to meet with U.S. President in Washington in January

[02] Premier briefs President on EU summit

[03] Greece to participate in NATO's Afghanistan peacekeeping force

[04] Gov't on 'Euro-force' issue

[05] ND critical of gov't handling of 'Euro-force' issue

[06] Deputy FM meets with U.S. ambassador to Athens

[07] Increased measures to be taken for the legalization of immigrants

[08] Former MP wants case for 1992 attempt on his life by 'Nov. 17' re-opened

[09] Parliament committee approves defense ministry bill

[10] European Bar Association president to meet justice minister

[11] Non-governmental organizations discuss volunteerism

[12] Finance minister addresses state budget debate

[13] Council of Fishery Ministers discusses fishing fleets

[14] Court asked to declare garbage worker strike illegal

[15] Construction of Athens tram to begin end-January

[16] Gov't, Piraeus Bank sign ETBAbank privatization deal

[17] Gov't takes measures to cut costs for ailing airline market

[18] Intracom chief voted top Greek businessman

[19] Athens Journalists Union calls for action in firings in mass media

[20] Stocks rise, fuelled by institutionals

[21] Athens 2004 Olympic Games school education program unveiled

[22] Thessaloniki airport reopened but problems due to weather continue

[23] Dialogue among religions begins on Wednesday

[24] Archbishop of Athens visits schools, children's hospital in light of Christmas

[25] Publishers note problems plaguing school library program

[26] British envoy says Cyprus solution and EU accession feasible

[27] Vassiliou: still much work to do for EU harmonization

[01] Greek premier to meet with U.S. President in Washington in January

Athens, 19/12/2001 (ANA)

"They will exchange views on very critical issues over international problems and bilateral affairs. The program of the visit will be finalized over the next few days," Protopappas said, adding, "It is a very important visit and it is logical to give it special importance".

White House announcement: �President Bush will welcome Greek Prime Minister Costas Simitis in Washington on January 10, 2002. This visit provides an opportunity to deepen cooperation between the United States and Greece, key NATO allies, on stability in the Balkans, Cyprus, NATO and the European Union, counterterrorism, and preparations for the upcoming Olympics in Salt Lake City and Athens. The visit will also serve as a reminder of the great and enduring contributions that Greek Americans have made to the United States and to American society."

[02] Premier briefs President on EU summit

Athens, 19/12/2001 (ANA)

Before entering into their meeting, a part of regular updating contacts between the two men, Simitis noted that the Laeken summit had positive aspects, such as the decision to advance some unification ideas, but also negative aspects, such as the EU leaders' inability to agree on the distribution of seats in the European institutions.

Simitis also said that the summit had further shown that the need for formulating an autonomous European defense policy had not yet ripened in the European Council, to which Stephanopoulos added that the EU did not appear disposed to becoming autonomous in that area.

After the one-hour meeting, Simitis told reporters that he and the President had reviewed foreign and domestic policy issues, the latest EU summit, matters concerning EU-NATO cooperation, and economic development, as well as the introduction of the euro currency in Greece beginning January 1, 2002.

Simitis noted that the first samples of the euro had been distributed in Greece and the rest of the EU on Monday, and that citizens' interest in the new currency had been substantial.

"The people are preparing (for the euro), but also some quarters are not adhering to the rules. The citizens must be cautious," Simitis said.

He stressed that the success of the venture depended on everyone -- on the responsibility displayed by the citizens but also their desire to adapt quickly and thus overcome the initial difficulties.

It was certain that the advent of the euro era "will bring many more financial opportunities, more growth, and more jobs", the premier added.

[03] Greece to participate in NATO's Afghanistan peacekeeping force

BRUSSELS, 19/12/2001 (ANA - Y. Zitouniati)

He noted that Greece will participate with a medical team, a company of engineers, two C-130 cargo aircraft and a small number of Special Forces troops, which will be charged with the protection of the Greek mission.

Papantoniou said that according to U.S. Secretary of Defense Donald Rumsfeld the war operations in Afghanistan have almost concluded, but there still are some active elements of al Qaida in the country.

The Greek minister said that ministers also dealt with the relations of NATO member-states that are not European Union members-states regarding defense issues, reaffirming, in the spirit of the EU summit of Laeken, that a "solution of common acceptance", which will allow the use of NATO infrastructures by the Euro-force, was in the works.

The ministers also discussed conditions in the Balkans, where NATO maintains a force of about 60,000 men. The alliance, during the meeting reiterated its commitment to secure stability, peace, democracy and respect for human rights in the region, while NATO Secretary General Lord Robertson left open the possibility of a gradual decrease of NATO forces in Balkans, something that Greece disagrees with.

"The international community should not withdraw from the Balkans, if we want peace, prosperity and security in the wider region," Papantoniou said, adding that the Balkans are one of the hot spots of international crisis, which is fed by organized crime and thus terrorism.

He also underlined that the international community should abandon the last minute "interventions in the Balkans" and should promote the normalization of conditions on a national level, stressing the importance stability and reconstruction of that region has for Greece.

Papantoniou will depart on Wednesday for Antalya, Turkey to participate in NATO's southeastern European ministers' meeting, while he will visit the United States at the invitation of his American counterpart.

[04] Gov't on 'Euro-force' issue

Athens, 19/12/2001 (ANA)

Government spokesman Christos Protopappas made the statement during his regular press briefing in Athens, while adding that a British formula to overcome NATO member Turkey's objections to the "Euro-force" did not serve the European Union as a whole, "as it would have allowed a third country to intervene with a right to veto the Euro-force's activity.

"Nor would Europe have anything to gain from giving such a capability to a third country," he stressed.

[05] ND critical of gov't handling of 'Euro-force' issue

Athens, 19/12/2001 (ANA)

Greece on Friday rejected a British-US compromise deal with non-EU member Turkey that would have secured access to plentiful and operational NATO resources for the Union's nascent rapid deployment force.

According to ND leader Costas Karamanlis, the Simitis government failed to adequately promote Greek interests and viewpoints on the critical matter over the past year, but only acted spasmodically at the "last minute", as he said.

Speaking at a meeting of ND's high-ranking political council, Karamanlis also charged that the government is merely celebrating a "postponement" of the compromise deal, without however, "learning from its mistakes, and ignoring its own responsibilities that create an impasse for the country."

Finally, he said Greece now faced the ominous possibility of returning to a level of security before 1980, the year when the country acceded to the European Union.

On his part, ND honorary president and former premier Constantine Mitsotakis sharply criticized the government's foreign policy as "non-existent", while also reserving the same treatment for PM Simitis' handling of foreign affairs.

Athens' primary concerns over the deal center on the issue of non-EU members possibly being invited to join future "Euro-force" missions on a case-by-case basis. Additionally, Greek leadership is weary of the fact that non-EU members would also be consulted on missions affecting their own national security.

Turkey, a non-EU member and "dark horse" in the race to join the bloc in the medium-term, has vociferously lobbied to join the 15-member Union's security operations.

FM responds to ND's criticism over Euro-force: Foreign Minister George Papandreou on Tuesday rejected main opposition New Democracy (ND) criticism over Greece's stance on the Euro-force issue, during the Laeken EU summit.

Greece on Friday rejected a British-US compromise deal with non-EU member Turkey that would have secured access to plentiful and operational NATO resources for the Union's nascent rapid deployment force.

Papandreou stressed that "with the same negotiating force we will continue to wage battles in the framework of European Union, in defense of our interests, while in the meantime strengthening the deterrent force of Greece, which is the only guarantee in present conditions, for the defense and the security of the country".

He stated that he did not understand "the continued efforts of (ND leader) Karamanlis and those of other ND cadres to negate a significant negotiating effort the government expended all this previous period and culminated in positive results in the European Summit of Laeken, both for our national interests and for the wider European Union interests".

He stressed that he had briefed the main opposition party in Parliament, adding that Karamanlis may not agree with the way the government is handling foreign affairs but he cannot overlook important issues that concern the development of a European policy of security and defense.

Gov't spokesman: In response to Karamanlis' statements, a government spokesman later referred to what he called the ND leader's "well-known irresponsible and dangerous stance".

During his regular press briefing in Athens, spokesman Christos Protopappas said the main opposition leader has continued this same rhetoric for "three straight days".

"The government battled, is battling and will battle for the promotion of national interests. Mr. Karamanlis apparently doesn't understand that on this issue the 'opponent' cannot be the government of his own country," Protopappas said.

[06] Deputy FM meets with U.S. ambassador to Athens

Athens, 19/12/2001 (ANA)

Responding to a question, on Tuesday, on whether the U.S. believes that Greece was blocking the creation of the European army, Miller said that "this is an issue that our government believes should be cleared up and it would be better if we allowed this issue to be discussed behind closed doors".

Asked whether the issue will be on the agenda of U.S President George Bush and Greek Prime Minister Costas Simitis during the latter's official visit to the U.S. in January, Miller said "I do not believe that it would be useful to comment on such kind of personal issues, it would be better if the two sides decide on this issue between themselves."

The bilateral issues discussed also included economic cooperation, and the Greek deputy minister noted that the two men discussed the possibility of Greek-U.S. cooperation in the Balkans with the undertaking of joint ventures.

Giannitsis receives US ambassador: Alternate Foreign Minister Tassos Giannitsis received US ambassador Thomas Miller, as the latter continued his courtesy meetings with Greek cabinet members.

One topic given particular attention during their talks was Prime Minister Costas Simitis' upcoming visit to the United States in early January.

Cyprus and the island republic's EU accession course were also discussed, according to reports.

Miller later met with Deputy FM Yiannis Magriotis.

FM to receive US ambassador on Wednesday: Foreign Minister George Papandreou will receive US ambassador to Athens Thomas Miller on Wednesday, the foreign ministry announced.

[07] Increased measures to be taken for the legalization of immigrants

Athens, 19/12/2001 (ANA)

Addressing a meeting organized by the ministry at a central Athens hotel, Skandalidis said a program for the social incorporation of immigrants is being processed and that a draft law will be submitted in Parliament to supplement the existing law on immigration, thus overcoming current problems.

He announced the establishment of an Institute for Immigration Policy, which will study the phenomenon of immigration and accordingly brief the ministry to take the appropriate measures. He further announced that an "Immigrants Guide" will be published which will brief the interested parties on their rights and obligations.

Speaking at the event were representatives of immigrant communities in Greece who voiced their demands and the problems faced by immigrants during the procedure for their legalization.

The Coordinating Committee of the Immigrant Communities of Greece referred to the various problems faced by immigrants during the second phase of the procedure for their legalization.

The committee noted that despite the new law, which the government passed, most immigrants remained illegally in the country. It said that although there were about one million immigrants, only 465,000 submitted applications for legalization either because they did not know the procedures or were not able to gather the required documents or even pay the 150,000 drachmas fee.

Furthermore, many immigrants cannot find employment and those who do are paid lower daily wages than those provided under the collective labor agreement.

[08] Former MP wants case for 1992 attempt on his life by 'Nov. 17' re-opened

Athens, 19/12/2001 (ANA)

Papadimitriou said that recent revelations and statements by general Nikos Gryllakis and the results of his own investigations had unearthed new evidence in the case.

[09] Parliament committee approves defense ministry bill

Athens, 19/12/2001 (ANA)

[10] European Bar Association president to meet justice minister

Athens, 19/12/2001 (ANA)

The institution of legal aid secures to people less well off the right of legal protection, provided by Article 20 of the Constitution.

The European Union has issued a "Green Bible" concerning legal aid in EU countries in civil, penal and administrative cases.

For Greece, however, legal aid is restricted only in penal cases.

The CCBE - according to an announcement of its Greek section - is of the opinion that the sum allotted last year to Greece for legal aid, that is, the sum of 9,472,952 drachmas (27.880 euro) was totally inadequate.

[11] Non-governmental organizations discuss volunteerism

Athens, 19/12/2001 (ANA)

Non-governmental volunteer organizations, as well as individual volunteers, and party leader Nikos Constantopoulos participated in the discussion on the occasion of the end of international volunteers year.

"At a time when polarization is increasing in political life and the participation of citizens is decreasing, the active citizen should be the 'target' of parties as well as of the state since the country's political and social life can only be widened with this," Constantopoulos said.

He further said that the more the citizen withdraws from volunteerism the public space he leaves empty is taken over by interests and for this reason the state and agencies should rid citizens from their distrust regarding parties and organizations.

[12] Finance minister addresses state budget debate

Athens, 19/12/2001 (ANA)

In the presence of Prime Minister Costas Simitis, Christodoulakis said the budget is shaping a framework serving, at the same time, growth, employment and social convergence which, combined with the Greek economy's restructuring, "can create even better preconditions for increasing the income per capita and for real convergence."

Christodoulakis said that the battle to prevent bankruptcy was won over the 1994-1996 period and the battle for accession to Economic and Monetary Union (EMU) was won over the 1997-2000 period, while the battle for growth and employment in the euro era will be won in 2001-2002.

Comparing the position of various groups among the Greek people in 1994 with 2001, he said that for a working couple with two children their net available income increased from four to eight million drachmas, of pensioners from 1.6 to 3.6 million and of a couple of farmers from 580,000 to 1.43 million.

Christodoulakis said the 2002 budget now opens the country's participation in the eurozone and makes it an authoritative, reliable and equal partner in Europe's strong economic union.

[13] Council of Fishery Ministers discusses fishing fleets

BRUSSELS, 19/12/2001 (ANA - M. Spinthourakis)

Agriculture Minister George Drys, who represented Greece at the meeting, held private meetings with his Spanish, Italian, French, Portuguese and Irish counterparts before the session got underway to enable countries in agreement in the sector of fishing activity management to determine a common stance.

Drys said the objective of the informal cycle of meetings is to determine a single strategy in light of the Common Fishery Policy's revision.

On the question of determining quotas, the Greek delegation voted against the relevant proposal since the European Commission did not accept the differentiation of the relative stability principle which would have given Greece the possibility of increasing red tuna fishing.

Drys said during his address that the determination of a small quota (330 tones) for the specific species is loss-making and unfair for Greek fishing businesses since it is based on production statistics related to 1994 which do not take all production parameters into consideration.

The Greek delegation insisted to the end on the doubling of the relevant quota to fundamentally satisfy the demands of Greek fishermen.

[14] Court asked to declare garbage worker strike illegal

Athens, 19/12/2001 (ANA)

The court will then make a decision within the next few days.

Representatives of the government told the court on Tuesday that the 2.5 per cent pay rise and 10,000-drachma bonus demanded by local authorities labor union POP-OTA were well above the ministry's pay rise policy of 2.1 per cent.

Union representatives countered by saying that they could not accept a 2.1-per-cent pay rise when inflation was running at 3.0-3.8 per cent.

POP-OTA said the strike would continue until the court reached its decision, while about 60 workers turned out to collect garbage around the Athens central meat market, where it posed a public health hazard.

[15] Construction of Athens tram to begin end-January

Athens, 19/12/2001 (ANA)

Terna SA with Impregilo were declared the winners of a tender for construction of two tram lines worth a total of 76.3 billion drachmas in a project classed as necessary infrastructure for the 2004 Olympics to be hosted by the Greek capital.

For construction are 24 kilometers of track and three kilometers of ancillary lines leading to tram depots and maintenance yards. The deadline for construction is early 2004.

One tram line will link the Zappeion Hall in central Athens to the southern suburbs of Neos Kosmos, Paleo Phaliro and Neo Phaliro; and the other will run between Neo Phaliro, Paleo Phaliro, Aghios Kosmas and Glyfada.

The project, which is be part-funded under the European Union's Third Community Support Framework, is due for completion within 820 calendar days of signature of a contract.

[16] Gov't, Piraeus Bank sign ETBAbank privatization deal

Athens, 19/12/2001 (ANA)

Under the terms of the deal, Athens-quoted Piraeus Bank acquires a 57.8 percent stake in the investment bank after winning a privatization tender, the buyer said in a statement.

The purchase will take Piraeus' stake in the banking market to 10 percent, the statement said.

[17] Gov't takes measures to cut costs for ailing airline market

Athens, 19/12/2001 (ANA)

Transport and Communications Minister Christos Verelis said that charges at Athens international airport for airlines would be reduced from January in a joint decision with Hochtief of Germany, the facility's operator.

In addition, the Eleftherios Venizelos airport would be given 15 percent of a government tax on the airport, a move that also comes into force in January, Verelis told a news conference.

The measures would help to keep down the price of fares for passengers, spurring travel, he added.

[18] Intracom chief voted top Greek businessman

Athens, 19/12/2001 (ANA)

Kokkalis was voted top in a domestic survey of Greek businesses, followed by the chairman of Alpha Bank, Yiannis Kostopoulos; the president of the Latsis Group, Spyros Latsis; the chairman of Delta Holding, Dimitris Daskalopoulos; and the president of Chipita International, Spyridon Theodoropoulos.

Intracom was voted the country's top business by domestic respondents, followed by Titan Cement Co., Alpha Bank, Hellenic Bottling HBC, Delta Holding, Folli Follie, Cosmote and EFG Eurobank Ergasias.

The findings of the poll were released on Tuesday.

[19] Athens Journalists Union calls for action in firings in mass media

Athens, 19/12/2001 (ANA)

The announcement came in the wake of massive job cuts in the Lambrakis Press Organization (DOL), a television station and a radio station.

According to the press release the decision to stage action against such moves was reaffirmed during a rally of journalists in the offices of ESHEA on Tuesday.

The trade union decided to call for a three-hour work stoppage on Thursday.

Journalists' work stoppage Thursday: The Athens Union of Journalists (ESHEA) has called a three-hour work stoppage for all journalists on Thursday from 1:00 to 4:00 p.m.

As such, the stoppage, which includes ANA journalists, will prevent the dispatch of news from the Athens News Agency, for the duration, and we ask for your understanding.

The ANA news services will be dispatched as normal before and after and the work stoppage.

[20] Stocks rise, fuelled by institutionals

Athens, 19/12/2001 (ANA)

The general share index gained 0.59 percent to end at 2,578.06 points. Turnover was 153.5 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 0.94 percent up; the FTSE/ASE-40 for medium capitalization paper 0.09 percent lower; and the FTSE/ASE-80 for small cap equities 0.04 percent higher.

Of stocks traded, declines led advances at 168 to 149 with 40 issues remaining unchanged.

The most heavily traded shares were Hellenic Bottling HBC, Alpha Bank, Piraeus Bank, Hellenic Telecommunications Organization, and Cosmote.

Equity futures raise premium: Equity futures on the Athens Derivatives Exchange on Tuesday boosted their premium to 1.0-1.8 percent, tracking a rise on the main market, traders said.

Changing hands were 4,352 contracts.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips rose 0.94 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks fell 0.09 percent.

Bond prices mixed in heavy trade: Bond prices in the domestic secondary market on Tuesday finished mixed in heavy trade again focusing on ten-year paper.

The Greek benchmark 10-year bond showed a yield of 5.18 percent, and the yield spread over German bunds was 35 basis points.

Turnover through the central bank's electronic system totalled 2.4 billion euros.

Sell orders accounted for just over half of turnover.

[21] Athens 2004 Olympic Games school education program unveiled

Athens, 19/12/2001 (ANA)

In a press conference, Education Minister Petros Efthimiou, Deputy Education Minister Eleni Kourkoula and Athens 2004 Olympic Games Organizing Committee Managing Director Yiannis Spanoudakis announced the program that already begun to be implemented.

They noted that pilot programs are already in place in three different schools, which have hired teachers for sports and they presented the books, which will be used to teach relevant classes, which will be in addition to the regular school program.

Efthimiou stressed that the program aims to familiarize children with the Games and also to build a spirit of collective action.

[22] Thessaloniki airport reopened but problems due to weather continue

Athens, 19/12/2001 (ANA)

Airport authorities said that the ILS landing systems and visual aids on runway 10/28 were operating normally.

Commenting on the wave of bad weather that still has most of Greece in its grip, the general secretary of the civilian protection service Dimitris Papanikolaou reported on Tuesday that 400-500 villages, the exact number being difficult to establish because it was constantly changing, remained cut off throughout the country.

He said that Interior Minister Costas Skandalidis had signed orders allowing the release of emergency funds totalling 700 million drachmas to 28 prefectural authorities worst hit by the bad weather, to pay for the hire of snow-clearing machinery.

Papanikolaou also reported heavy snowfall in Malakasa and Kapandriti on Tuesday afternoon, with up to 50 cm of snow falling the area, and warned drivers that roads throughout the country were being kept open with difficulty and that snow chains were often necessary.

Regarding 116 people trapped on board a railway train stuck in the snow in the northern Greek prefecture of Evros on Monday night, Papanikolaou said that efforts by his agency, the army and local residents to reach and rescue the passengers had been successful and that most of them were now on their way to their destinations.

Reports from Ioannina, meanwhile, said the weather was clear but still very cold, while many roads in the prefecture were still impassable without snow chains, while national roads to Trikala and Kozani passing over the mountains had been blocked by trucks that had fallen over.

Hundreds of vehicles were reported trapped in the highland village of Metsovo, unable to continue their journey on to Trikala, while the same applied in Konitsa with vehicles heading for west Macedonia.

Morning flights to Ioannina airport were cancelled, with flights expected to resume after snow was cleared in the afternoon, while schools will remain closed throughout Tuesday and Wednesday.

Ioannina traffic police issued warnings on Tuesday to long-distance trucks alighting from the ferries in Patras, many of which drive up western Greece toward northern Greek prefectures and Greece's northern neighbors, that snow chains were needed to negotiate large tracts of the road network.

The worst of the weather is expected to abate between Tuesday night and Wednesday morning, but possibly make a comeback by the weekend.

[23] Dialogue among religions begins on Wednesday

BRUSSELS, 19/12/2001 (ANA - M. Spinthourakis)

Belgian Foreign Minister Louis Michel, European Parliament Deputy President Alejo Vidal Cuantras Roca, Prince Hassan of Jordan and European Union Commissioner Anna Diamantopoulou will address the opening ceremony on Wednesday.

European Commission President Romano Prodi will address the meeting on Thursday and give a press conference afterwards, together with Ecumenical Patriarch Vartholomeos who will be chairing the meeting.

Important representatives of the three monoitheistic religions, Christianity, Islam and Judaism, will be participating and have already arrived in the Belgian capital.

Experts on religion said here on Tuesday that the acceptance of the initiative in the Jewish world was impressive since it succeeded in overcoming acute political issues causing the conflict in the Middle East and the Palestinian question.

Acceptance of the initiative was also great among other Christian denominations.

Meanwhile, Vartholomeos held a meeting with European Parliament President Nicole Fontain here on Tuesday for talks on issues concerning the role-played by churches and religions for the prevalence of peace among peoples.

[24] Archbishop of Athens visits schools, children's hospital in light of Christmas

Athens, 19/12/2001 (ANA)

The Archbishop spoke to them of the message of Christmas and the value of human life and struggle for good against evil.

He also visited the "Agia Sophia" Children's Hospital in Athens where children welcomed him with Christmas carols.

[25] Publishers note problems plaguing school library program

Athens, 19/12/2001 (ANA)

According to the speakers, most of the 500 school libraries planned under the 2nd Community Support Framework were operating below par, while 100 had failed to open at all because tenders for acquiring books had delayed or because of a lack of staff. Others had opened and the closed again, they said, when the contract of the librarians running them had ended.

The publishers also criticized the bureaucratic methods and extremely slow pace of acquiring collections for the 500 libraries and the fact that no funds were provided for updating or augmenting these collections.

Regarding a second series of 500 new libraries to be set up under the 3rd CSF, publishers were against assigning this work to the country's 13 regional authorities. Only nine of these, they noted, had included libraries in their regional operational programs while the other four seemed unaware of the program's existence and the entire affair seemed doomed to snag on multiple bureaucratic obstacles.

[26] British envoy says Cyprus solution and EU accession feasible

NICOSIA, 19/12/2001 (CNA/ANA)

He said he was encouraged by the clear concentration by both sides on the core issues of substance, by the welcomed absence of tactical maneuvering and the sense of urgency that exists which makes people working to a timetable, that of Cyprus' anticipated accession to the EU.

Lord Hannay said UN resolutions would not be set aside in the forthcoming UN-led direct talks between the Greek and Turkish Cypriot sides, noted that what the Turkish Cypriots call "an economic embargo" is the result of a ruling by the Court of Justice in Luxembourg and said Turkey must comply with a European Court of Human Rights judgment on a human rights case (Titina Loizidou).

He did not think the acquis communautaire will be bypassed in a UN settlement, said the EU would accommodate such a settlement in the terms of accession and stressed there would be derogations or transition periods or special arrangements for Cyprus when it joins the EU, just as there were for all other EU members.

"I believe there is a much better prospect than there has ever been in the past of achieving these twin objectives, a settlement and accession by the whole island," Hannay said at a press conference on Tuesday, after two days of talks here, reiterating that the EU remains committed to its decision that a settlement is not a precondition for accession.

In his opening remarks, Lord Hannay said he was encouraged because he believes that now both sides have a "clear concentration on the core issues of substance, that there is a welcomed absence of tactical maneuvers and there is a sense of urgency and everyone is working to a timetable. "This timetable, he said, is not an ultimatum and not a threat but both sides understand it can be put to good use.

He said he brought messages from Britain that it applauds the initiative on a face-to-face meeting between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash and their decision to begin direct negotiations in mid January until they reach a successful conclusion.

London, he said, believes a settlement can be reached which respects the vital interests of both sides, Greece and Turkey, which will have to be approved by a referendum in each of the two communities.

"We believe it is feasible to see a reunited island joining the EU following a settlement on the timetable laid down by the EU in Laeken (December 2002) and we are ready to accommodate a UN settlement in the terms of accession," Hannay said, adding that he also conveyed to his interlocutors the message that Britain's part in the peace effort is "subsidiary and supporting" of the UN efforts and that of the parties.

"These negotiations are in the hands of the Cypriots on both sides and they are going to find the solutions," he said.

Hannay refrained from giving his assessment on the apparent change of heart of the Turkish side with regard to the peace effort and avoided any comment on remarks by Turkish government officials that there should be two separate states in Cyprus, restricting himself in saying that what matters is what is said at the negotiating table.

Asked if an agreed settlement could bypass the EU rules and regulations, Hannay said the EU has stated its "intention and will to accommodate a UN settlement", noting that all countries joining the EU have had special arrangements.

"This is the optimum outcome, it is not the only outcome and Britain like every other EU member stands by the commitment we entered into at Helsinki and nothing has changed on that," he said.

The eventuality foreseen in Helsinki (that a solution can precede accession) now looks less sure than it was, Hannay explained.

The British envoy was due to leave Cyprus on Tuesday night.

Clerides-Hanney meeting: Cyprus President Glafcos Clerides had a working breakfast in Nicosia on Tuesday with Lord David Hannay.

The one-hour meeting at the Presidential Palace was also attended by Undersecretary to the President Pantelis Kouros and Britain's High Commissioner in Nicosia Lyn Parker.

Replying to a comment by a journalist that on Monday he talked about a new partnership in Cyprus, the British envoy clarified that he was quoting the UN Secretary-General.

After the Presidential meeting, the British diplomat crossed into the Turkish-occupied northern part of the island to meet Turkish Cypriot leader Rauf Denktash.

[27] Vassiliou: still much work to do for EU harmonization

NICOSIA, 19/12/2001 (CNA/ ANA)

In his remarks to the press before the meeting, Vassiliou underlined the great amount of work that needs to be accomplished in the forthcoming year with regard to the five chapters still under negotiation as well as to the commitments concerning the chapters that have already been closed.

"There is still much work to be done" Vassiliou said, adding that in order to conclude negotiations by the summer of 2002 "all we need is systematic work".

The remaining chapters are competition policy, agriculture, taxation, regional policy and budgetary provisions.

Cyprus opened accession negotiations with the EU in 1998 and has so far provisionally closed 24 out of 29 chapters under negotiation.

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