Athens News Agency: Daily News Bulletin in English, 02-01-16

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

CONTENTS

[01] Efforts continue to save Greek mega-bank merger

[02] President meets Archbishop Dimitrios, hosts dinner in his honor

[03] PM briefs President on US visit, selection of new Army and Air Force chiefs

[04] New Army, Air Force chiefs named by KYSEA

[05] KYSEA ratifies dispatch of Greek peacekeeping contingent to Afghanistan

[06] New European Parliament president hopes for Cyprus settlement

[07] Trio of ministers to meet on Wednesday

[08] Greek-led group wins Hellenic Railway supply tender

[09] European Commission calls for partnership dialogue

[10] Discussion on sustainable development in Athens Jan 18

[11] ASE flat awaiting mega-bank merger news

[12] Olympics budget to stay at 1.5 trillion drachmas, government decides

[13] Athens comments on latest Parthenon Marbles development

[14] Ancient Macedonian grave uncovered in NW Greece

[15] New int'l campaign for Halki School's re-opening

[16] Photo exhibition in Athens to assist UNICEF fund raising to aid Afghanistan

[17] Face-to-face peace talks between Clerides, Denktash begin on Wednesday

[01] Efforts continue to save Greek mega-bank merger

Athens, 16/01/2002 (ANA)

"As in any big venture a merger between two equal large banks face difficulties in various fields. We are trying to deal with these difficulties with a spirit of understanding and good faith. Our aim continues to be to create a strong Greek bank with a European structure that will operate under the financial criteria of a modern banking market. This is for the interests of the national economy, our shareholders and employees in both banks," the statement said.

The merger plan between the two banks was in the brink of collapse Monday evening because of wrangling between executives over the distribution of responsibilities under the single form.

National Bank of Greece governor, Theodore Karatzas, met with Alpha Bank's chairman, Yiannis Costopoulos, Tuesday morning in an effort to save the plan.

The two banks announced a merger plan in November 1 last year to create a powerful Greek bank that would become a leader in the region's banking market.

Spokesman: Gov't not intervening in bank merger talks: Government spokesman Christos Protopapas on Tuesday said the government was keeping its distance from ongoing developments in a planned merger between National Bank and Alpha Bank.

Protopapas said the government was informed of recent developments while it hopes for a positive conclusion. However, he repeated that the government was not intervening nor does it plan to intervene in negotiations between the two banks.

The spokesman added that Prime Minister Costas Simitis has had telephone contacts with the two banks' heads.

Protopapas said the premier was briefed over developments from the two banks' governors, who asked to speak with him.

Government officials, however, said they would prefer, in the current phase, to leave the matter in the hands of National Bank's Theodore Karatzas, and Alpha Bank chairman Yiannis Costopoulos, hoping that the two could come up with better solutions.

ND: On its part, main opposition New Democracy issued a statement later in the day on the bank merger.

"ND's standing and consistent position is that a primary pre-condition for the country's development lies in the economy's deregulation; in the support of healthy competition; structural changes and Greece's robust presence in the European Union," a party spokesman said.

ND's Theodoros Roussopoulos noted that the highly touted bank merger will be successful only if competition in the sector and the national economy improves; if a reduction in the cost of banking is passed on to consumers, retail investors and employees; and, if a final agreement avoids an increase in the percentage of the sector falling under state control.

Coalition of Left fears National, Alpha Bank merger will end in fiasco: The Coalition of the Left and Progress said on Tuesday that it feared a planned merger between National Bank of Greece and Alpha Bank, the country's two largest banks, would end in a debacle.

"The merger, which was presented as a major government success, risks turning into a major fiasco through extended complications," the party said in a statement.

"It is obvious that the problems that have appeared in the allocation of powers among executives of the two banks should have been fully agreed before the merger was announced," the statement said.

The merger and its complications would have a major impact on the Athens Stock Exchange due to the high capitalization of the two companies, it added.

The party charged the government with seeking fleeting political gains from announcement of the merger after a reshuffle in the autumn last year.

State-run National and private Alpha are blue chips on the Athens bourse.

Bank employees federation to hold meeting on bank merger: The Federation of Bank Employee Unions (OTOE) said on Tuesday the agreement on the continuation of negotiations for the merger between the National Bank and the Alpha Bank is vague and announced it will hold a general council on Wednesday to examine the merger issue.

"The smooth course of the merger necessitates a clear strategy, a spirit of cooperation and, above all, observance of what has been agreed. The merger venture will be undermined continuously through extortionate acts and backtracking," OTOE said.

Meanwhile, trade unionists from both banks continued their confrontation on Tuesday with interviews with radio stations in which they set out their arguments.

The President of the National Bank's employees union Ioannis Koukos insisted that the old agreement on the allocation of duties in the new group has been broken, adding that such a tactic creates understandable concern among employees over the future.On the other hand, the President of the Alpha Bank's employees union Costas Giatis spoke of the danger of Alpha Bank being nationalized and appeared to support an "orientation vision" for the bank in the market.

[02] President meets Archbishop Dimitrios, hosts dinner in his honor

Athens, 16/01/2002 (ANA)

During his meeting with the Archbishop, Stephanopoulos said that the Greek-American community was a source of pride for Greece and referred to past talks he had had with Greek-Americans such as Andrew Athens (who was present at the meeting) and other notable expatriates.

The president also reiterated the Greek people and state's absolute condemnation of the terrorist attacks of September 11.

Also present at the meeting were Archbishop of Athens and All Greece Christodoulos, Foreign Minister George Papandreou, Chicago Metropolitan Iakovos, Detroit Bishop Nikolaos and other Greek expatriates from the US.

There followed a dinner given by President Stephanopoulos in honor of Archbishop Dimitrios, which also attended by Education and Religious Affairs Minister Petros Efthymiou, Deputy Foreign Minister Yiannis Magriotis and Pergamum Metropolitan Ioannis who is representing the Ecumenical Patriarchate in Athens.

Archbishop Dimitrios addresses parlia-mentary committees: Archbishop of America Dimitrios on Tuesday expressed thanks for the 300,000 euros donated by the Greek Parliament to the families of Greek-American victims of the Sept. 11 terrorist strikes in New York, while addressing members of parliamentary committees for overseas Greeks and religious affairs.

"Their contribution is historically significant, as it is the first in the common European currency," Dimitrios said.

Earlier on, the Archbishop of America and Parliament Speaker Apostolos Kaklamanis had praised the contribution of Greek-Americans in promoting important issues for Greece, particularly the Cyprus problem, which Archbishop Dimitrios said had involved huge amounts of time, toil and money.

Event held in honor of Archbishop of America Dimitrios: An event was held at Athens University on Tuesday in honor of Archbishop of America Dimitrios who was presented with an honorary volume dedicated to his life and work.

In his address, Archbishop Dimitrios made particular mention to the terrorist attacks in the United States on September 11 and referred to a comment made by a Greek-American six year-old girl whose father was killed in the attack. Dimitrios quoted the child as saying "I know that my father is with Christ," and noted that she gave a lesson to all on the meaning of dignity.

Prior to the Archbishop's address, a message by Ecumenical Patriarch Vartholomeos was read out as well as a greeting by Athens University Rector George Babiniotis.

Present at the event, among others, were Archbishop of Athens and All Greece Christodoulos, Alternate Foreign Minister Tasos Giannitsis, former Prime Minister Ioannis Grivas, metropolitans, academics and deputies.

[03] PM briefs President on US visit, selection of new Army and Air Force chiefs

Athens, 16/01/2002 (ANA)

After the meeting, Simitis told reporters that he had pointed out to the President, vis-a-vis his US visit last week, that the "foundations of cooperation are better today than before", that there was "mutual understanding", and "analytical briefing on Greece's positions".

Simitis further said that with Greece's entry into the euro-zone "the chapter on the country's economic stability has closed, since the Greek economy now operates with the rules of the rest of the countries of the European Union".

The premier also said that from here on Greece would undertake initiatives on matters of foreign policy, and reminded that "we are at the final stage of Cyprus' accession to the EU".

"This development, like the forthcoming Clerides-Denktash meeting, are due to our policy," Simitis said, noting also the leading role Greece was following in the Balkans for peace and cooperation.

[04] New Army, Air Force chiefs named by KYSEA

Athens, 16/01/2002 (ANA)

The new chief of the Army General Staff (GES) is Lt. Gen. Panayotis Harvalas, up to now commander of the NATO sub-headquarters in Larissa.

The new chief of the Air Force General Staff (GEA) is Lt. Gen. (air) Panayotis Papanikolaou, up to now commander of the Tactical Air Force (ATA) in Larissa.

In statements after the KYSEA meeting, national defense minister Yannos Papantoniou expressed certainty that the new Armed Forces leadership would totally meet the nation's demands whenever necessary and would proceed to the armed forces' biggest restructuring and reorganization in the last 50 years.

[05] KYSEA ratifies dispatch of Greek peacekeeping contingent to Afghanistan

Athens, 16/01/2002 (ANA)

During a meeting chaired by premier Costas Simitis, the KYSEA ratified the government's decision to send the Greek contingent -- fully comprised of volunteers -- to the international peacekeeping force taking shape in Afghanistan.

National defense minister Yannos Papantoniou said after the KYSEA meeting that the situation in Afghanistan had "stabilized to a degree, but great caution is still required'.

He explained that the Greek soldiers were not going to Afghanistan to fight, but to "help in that country's reconstruction".

The contingent would be involved in the economic reconstruction of Afghanistan and the reconstruction of roads, bridges and other infrastructures damaged by the bombings.

Papantoniou reiterated that participation in the contingent was on a completely voluntary basis, adding that the number of volunteers that came forward far exceeded the 130 positions in the mission.

He said the Greek contingent would depart for Afghanistan in the next 2-3 weeks, and the details would be arranged with the British command of the multinational force to be deployed in that country.

Greece will further send two C-130 transport planes for the for the transport of materials and foods, the minister said.

[06] New European Parliament president hopes for Cyprus settlement

STRASBOURG, 16/01/2002 (ANA - O. Tsipira)

Responding to a relevant question, Cox said that the European Parliament "placed great expectations on the (Cyprus President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash) face-to-face meetings because the time has come for a reconciliation in Cyprus."

Face-to-face talks between the leaders of the two communities on the island, President Clerides and Turkish Cypriot leader Denktash, aimed to reach a comprehensive settlement of the protracted Cyprus problem, begin on Wednesday morning, near the defunct Nicosia airport situated in the UN-controlled buffer zone.

"We hope that the two political leaders will be able to offer to Cyprus a renaissance based on the European ideals," Cox said.

He said that Cyprus's EU accession talks could contribute towards changing the present situation as relations between Ireland and the United Kingdom have improved since both countries' EU accession.

Cox, an Irish Liberal, was on Tuesday elected as new European Parliament President.

[07] Trio of ministers to meet on Wednesday

Athens, 16/01/2002 (ANA)

[08] Greek-led group wins Hellenic Railway supply tender

Athens, 16/01/2002 (ANA)

SYPRO has a 90 percent stake in the group, and Dywidag GmbH of Germany 10 percent, the Greek firm said in a statement on Tuesday.

Dywidag is to provide SYPRO with the know-how for construction of the parts, which will then be manufactured at SYPRO's plant in Larissa within 14 months, the statement said.

[09] European Commission calls for partnership dialogue

BRUSSELS, 16/01/2002 (ANA - M. Spinthourakis)

An announcement by the Commission says that community partners are called on to express their views on the need for new "principles" at EU level, which will govern "socially clever" restructurings.

The initiative will constitute a basic part of the European Commission's strategy on "managing changes", to be submitted to the Barcelona summit in March.

Community partners have a period of at least six weeks to respond to the European Commission's decision calling for their views on the EU's action in this sector.

"Restructuring constitutes a vital part of business life and fuels innovation and growth. However, businesses do not function in a political vacuum. The EU needs principles which shall govern the social aspects of partnership restructuring. The community partners are the most suitable to determine them. It is healthy for companies to adjust themselves swiftly to the demands of competitive markets," Diamantopoulou said.

[10] Discussion on sustainable development in Athens Jan 18

Athens, 16/01/2002 (ANA)

Among speakers at the event are Culture Minister Evangelos Venizelos, European Union officials and academics.

[11] ASE flat awaiting mega-bank merger news

Athens, 16/01/2002 (ANA)

The general index ended 0.09 percent lower at 2,521.63 points, with turnover a low Dr 32.3 billion, or 94.9 million euros.

National Bank's share price eased 0.08 percent, reversing an early advance of 1.88 percent, while Alpha Bank's share price ended 0.43 percent higher, off the day's highs of 3.34 percent.

The Industrials and Investment sectors scored the biggest percentage gains (0.59 percent and 0.58 percent, respectively), while the IT Solutions and Retail sectors suffered the heaviest losses (1.10 percent and 0.61 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.07 percent lower, the FTSE/ASE MID 40 index eased 0.01 percent and the FTSE/ASE SmallCap 80 index fell 0.04 percent.

Broadly, advancers led decliners by 152 to 140 with another 62 issues unchanged.

The most heavily traded shares were Alpha Bank, National Bank of Greece, Hellenic Telecommunications Organization, Sexform and Kreka.

Equity futures jittery in heavy trade: Equity futures on the Athens Derivatives Exchange on Tuesday started down but made up lost ground in volatile trade, tracking their underlying indices on the Athens bourse, traders said.

Changing hands were 7,774 contracts on turnover of 53.2 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips shed 0.07 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks also lost 0.07 percent.

Bond prices mixed in moderate trade: Bond prices in the domestic secondary market on Tuesday finished mixed in moderate trade focusing on five-year paper.

The Greek benchmark 10-year bond showed a yield of 5.16 percent, and the spread over German bunds was 35 basis points.

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

Buy orders accounted for around half of turnover.

[12] Olympics budget to stay at 1.5 trillion drachmas, government decides

Athens, 16/01/2002 (ANA)

Apart from the finance ministry team, also present at the meeting were Culture Minister Evangelos Venizelos and Public Works Minister Vasso Papandreou.

Deputy Press Minister Telemachos Chytiris afterward told reporters that 906 billion drachmas would be spent on Olympic works and 587 billion drachmas would be spent on programs such as 'Greece 2004' that involved projects throughout Greece.

Certain members of the government, however, say that it is too soon to finalize the budget for the Olympics, since final plans and estimates for Olympics projects in Faliro, the old Hellenikon airport site and Goudi have not yet been completed.

Venizelos, in response to questions, said that Greece had to meet the deadlines and meet its obligations to the international sporting community. He also pointed out that, apart from Olympics projects, there were also works to improve infrastructure and modernize the country.

According to sources, meanwhile, Tuesday's meeting also touched on the increasingly turbulent planned merger between National Bank of Greece and Alpha Bank.

Asked about the issue as he emerged from the meeting, Finance Minister Nikos Christodoulakis appeared troubled and said only that the two banks had made an announcement.

[13] Athens comments on latest Parthenon Marbles development

Athens, 16/01/2002 (ANA)

Culture Minister Evangelos Venizelos made the comments only after the director of London's British Museum dashed hopes that the museum's administration would consent to loaning the Parthenon Marbles - well-known in Britain as the Elgin Marbles - to Athens during the holding of the 2004 Olympics.

In a letter to the London-based "Times" newspaper, director Robert Anderson said the British Museum's trustees had no legal right to dispose of any exhibits even if they wanted to, while he also disparaged Greek officials for failing to adequately maintain and display other parts of the Parthenon not hacked off by British diplomat Lord Elgin in the early 19th century and transported to England - during a period prior to Greek independence from Ottoman rule.

"We're not interested in the procedural/legal portion (of the issue) involved with deeds of ownership, but in the real and substantive portion related to the Marbles' return to their natural setting, the Acropolis museum," Venizelos said in Athens.

He added that Greece's long-standing demand for a return of the exquisite 2,500-year-old friezes that once adorned the Parthenon's exterior has been distinctly aided of late by widespread support in Great Britain, and especially within British society, amongst policy-makers, the scientific community and the media.

"I would say that there is a feeling of responsibility ... because we must protect the unity and integrity of a standing monument, the most significant and symbolic monument of our civilization," he said.

Finally, the culture minister emphasized that a new Acropolis museum would be ready before the 2004 Games.

Writing in the "Times", Anderson referred to speculation that the British Museum might agree to lend the sculptures to Athens for the duration of the Games.

"It is normal courtesy that such requests are addressed first to the museum director, but so far no such request has been reached," he said.

Anderson also scoffed at the idea of a symbolic return of the Marbles for the Olympics, saying Greece would be better off if it ensured the display of other sculptures from the Parthenon he said had "lumbered in store-rooms".

"Meanwhile, the British Museum's sculptures are where they will remain, in the museum's purpose-built gallery, where they are displayed free for all," he countered.

The matter attracted increased international attention a few years when British historian William St. Clair revealed that the Marbles suffered "significant and irrevocable" damage in the late 1930s after untrained museum workers tried to restore the friezes to what was mistakenly thought to be their original color, scrapping off the patina on their surface in the process.

The revelation is made in St. Clair's book, "Lord Elgin and the Marbles", and was for years "a strictly internal matter".

St. Clair discovered the damage while doing research in the museum's archives. News of the damage was considered a strong rebuff to the standing refusal by the British museum's officials vis-a-vis a return of the Marbles to Greece.

The British Museum has long claimed the Marbles are better off in London, away from the ravages of pollution in Athens.

[14] Ancient Macedonian grave uncovered in NW Greece

Athens, 16/01/2002 (ANA)

Archaeologists said the 2.28mX2.35m burial site features a five-meter stone roadway leading up to the grave, while a partially demolished - believed damaged by grave robbers -- archway is also apparent.

Excavation work at the Palioklisi site near the village of Aghios Demetrios, Ioannina prefecture, commenced after authorities observed signs that antiquities smugglers were active in the specific area.

[15] New int'l campaign for Halki School's re-opening

Athens, 16/01/2002 (ANA)

A resolution by the Hellenic Electronic Center (HEC) strongly protests what it calls the illegal closing of the Ecumenical Patriarchate-affiliated academy by Turkish authorities in 1971. The group calls for the Halki school immediate reopening, stressing that it comprises a vital condition for the Ecumenical Patriarchate of Constantinople's future - itself an invaluable part of the world's international cultural heritage and the Orthodox faith.

Echoing three decades of protests by the Patriarchate, the Greek government and various international ecclesiastical circles, HEC reiterated that Halki's closure is a distinct violation of the Treaty of Lausanne's Article 40 as well as the Turkish constitution's Article 24 guaranteeing religious freedom and education.

The group maintains that the aforementioned liberties are also eminently protected under the European Treaty's Article IX and Article I of the United Nation's charter.

All those interested in viewing the relevant petition should visit the electronic site www.greeceorg/themis/halki

[16] Photo exhibition in Athens to assist UNICEF fund raising to aid Afghanistan

Athens, 16/01/2002 (ANA)

Entitled 'Afghanistan 2001', the exhibition features pictures taken by photographer Yiannis Behrakis, who also had the idea for the exhibition, and is backed by Reuters and UNICEF, which hopes it will sensitize public opinion and help raise money for the children of Afghanistan, who are the chief victims of the war.

The exhibition is to be inaugurated on Wednesday at 19:00 p.m. by President of the Republic Kostis Stephanopoulos and will run until January 27. It will open daily from 11:00 in the morning to 21:00 at night, free of charge.

Visitors are invited to purchase a poster for eight euros, which covers the cost of saving the lives of three Afghan children

According to figures presented by UNICEF, over one million children in Afghanistan are orphans, one if four dies before its fifth birthday, over 400,000 have fallen victim to land mines and over nine million have no access to education, while 77 per cent of Afghanistan's total population has no access to clean water.

The director of the Greek branch of UNICEF, Lambros Kanellopoulos, said the organization immediately welcomed the idea put forward by Behrakis in response to UNICEF's general plea for humanitarian aid for Afghanistan, believing it would be an honest and direct way to highlight all aspects of the drama being played out in the war-torn country.

According to Kanellopoulos, UNICEF maintained its presence in Afghanistan throughout the recent crisis and the bombings, during which time it handed out thousands of tones of humanitarian aid, organized more than 70 convoys of aid from neighboring countries, inoculated 5.4 million children against polio and distributed five million doses of Vitamin A.

The organization is seeking to step up its efforts to prevent the deaths of children during the winter months and wants to continue delivering humanitarian aid such as clothing, blankets and shelter until March 2002, as well as medical supplies and food.

It has also started a major campaign to inoculate nine million children in Afghanistan against measles, in cooperation with the World Health Organization and other bodies that will cost eight million dollars.

Measles account for 40 per cent of deaths among children due to diseases preventable through vaccination, while the vaccination campaign could save 35,000 children just this year.

For the above reasons, UNICEF is trying to raise 108.86 million dollars for its programs in Afghanistan until the end of March this year and has so far raised half this amount.

[17] Face-to-face peace talks between Clerides, Denktash begin on Wednesday

NICOSIA, 16/01/2002 (CNA/ANA)

Cyprus government spokesman Michalis Papapetrou announced that President Clerides will be accompanied to the talks scheduled to start at 1000 local time (0800 GMT) by Attorney General Alecos Markides, the government spokesman and Under-Secretary to the President Pantelis Kouros.

Speaking after a working breakfast given on Tuesday morning at the Presidential Palace by President Clerides for UN Secretary General's Special Adviser on Cyprus Alvaro de Soto, the spokesman said there would be no other meetings between President Clerides and the UN envoy prior to Wednesday's talks.

Alvaro de Soto was expected to meet Denktash later on Tuesday. The UN envoy met separately the two leaders on Monday.

Answering to a question, the spokesman said "substantive procedural issues will be addressed tomorrow."

Replying to a question on who will be accompanying Alvaro de Soto to the talks, Papapetrou said "whoever he deems necessary" to attend as his aides, adding that the same applies for Rauf Denktash.

The Cypriot official clarified that "the talks take place within the framework of the Secretary General's good offices mission and they begin after an invitation by the Secretary General. Consequently, this is the usual role the UN claim and exercise and will play this role in the way they deem best and productive."

Invited to comment on recent statements by Denktash, the spokesman said "the objective is for Denktash to be constructive and positive at the talks. If this is the case, then we will be satisfied," he added.

Clerides and Denktash have agreed to begin, under UN aegis, direct talks on the island on January 16 after nearly a year of not negotiating at all, after Denktash withdrew from the process in November 2000.

Cyprus has been divided since 1974 when Turkish troops invaded and occupied its northern third.

FM Kasoulides: Greek Cypriot side goes to talks with an open mind: As the Greek and Turkish Cypriot sides prepare for Wednesday's start of direct talks, under UN auspices, hardly anybody on either side of the divide is willing to make any predictions as to the outcome of this effort.

This latest attempt to find a negotiated settlement of the protracted Cyprus question is set to be a long and arduous task, involving Clerides, Denktash, their respective advisers and de Soto, who arrived here from New York with a view to facilitate the negotiations and intervene as necessary.

The Greek Cypriot side appears somewhat restraint in its expectations, in spite of what political observers call "the prevailing good climate" following the recent social encounters between Clerides and Denktash.

Public statements from Ankara and Denktash over the past few weeks seem to leave little room for hope that the Turkish side has had a change of heart with regard to its long standing position for two separate states on the island, something the Greek Cypriot side has repeatedly said it rejects.

"We are neither optimistic nor pessimistic. If Denktash has the green light from Ankara, and Ankara is a lot of things including the military, then Denktash can get a settlement. If he hasn't got it, his move is only tactical and this will show at the negotiating table," Foreign Minister Ioannis Kasoulides said here on Tuesday in statements to the press.

The minister said the Greek Cypriot side goes to the direct talks with an open mind, adding that "both sides have to acknowledge the concerns of the other and we are ready to address the concerns of the Turkish Cypriot side."

"Our main concern is to ensure that in the agreed overall solution there are no elements that would allow the legal partition of the country," Kasoulides said, replying to questions, stressing that the Greek Cypriots "says no to two sovereign states, and yes to one state, one country for Turkish Cypriots and Greek Cypriots."

On the role of de Soto at the talks, Kasoulides said he believed that initially the UN top envoy on Cyprus would leave the two leaders "to unfold their thinking and try by themselves to see areas where one can reach the other," and that he would try to intervene in the debate later on.

As for the "chemistry" between Clerides and Denktash and how this might affect the talks, Kasoulides said the two veteran politicians know each other and can deliver and pass it on to the people of Cyprus.

This time round, we should aim at a comprehensive settlement that will leave nothing to be decided at a later stage, the minister said, and pointed out that "we should agree on everything even if today we agree on certain things for tomorrow."

Commenting on entry into the European Union, without prior solution, he said the Cyprus question is a European problem, whether Cyprus is a member of the EU or not.

"The Cyprus problem will remain in the UN domain, even if Cyprus joins the EU without a solution, and efforts to find a settlement will continue through the UN so the problem will not be a topic of discussion within EU institutions," Kasoulides said.

"I cannot see what additional problems an unresolved Cyprus problem would bring into the EU," he added.

He expressed the conviction that should EU membership take place before a settlement it will have a catalytic effect to the Cyprus question and the division of the island will not last for too long after accession.

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

The island has been divided since 1974 when Turkish troops invaded and occupied 37 per cent of its territory.

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