Athens News Agency: Daily News Bulletin in English, 02-05-10

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

CONTENTS

[01] PM begins official two-day visit to Yugoslavia

[02] Gov't again denies plans to shelter Church of Nativity Palestinians

[03] Cyprus offers Bethlehem militants transit stopover

[04] Gov't spokesman: Athens views proposal for EU border force positively

[05] Cyprus issue, Cyprus' EU accession and EU army not linked, gov't says

[06] Defense minister meets British counterpart in London

[07] Europe Day celebrated at Zappeion Hall in Athens

[08] Gov't spokesman says no Greek involvement in Srebrenica case

[09] Bulgarian PM meets minister of Macedonia and Thrace

[10] Interior ministry seminar on reforming public administration

[11] Stability Pact coordinator calls attention to FYROM's name issue

[12] Adriatic Initiative to hold meeting in Corfu on Friday

[13] Gov�t presents 2003 budget spending targets

[14] Greece, Turkey back steady rise in business ties

[15] Labor minister receives trade and industry representatives

[16] Burgas-Alexandroupolis oil pipeline memo-randum to be signed

[17] EU experts to inspect food safety conditions in Greece

[18] Construction of 2004 Olympics press center awarded

[19] Contract signed for Olympics beach volleyball facility

[20] Wholesale prices rise 1.2 percent in March

[21] Athens taxi business seen declining in next two decades

[22] Credit expansion slows in February

[23] Greek stocks' rally continues on Thursday

[24] Prince Charles expected to leave Mount Athos by Saturday

[25] Pat Cox: there is a compelling political deadline this year

[26] Peace talks meeting ends

[01] PM begins official two-day visit to Yugoslavia

BELGRADE, 10/05/2002 (ANA - V. Mourtis)

Simitis kicked off the two-day visit by penning his signature on a series of agreements between Greece and Yugoslavia for bilateral economic and technical cooperation in road and air transport, along with his Yugoslav counterpart Dragisa Pesic.

The Greek prime minister later described his meeting with Pesic as warm and friendly and stressed that the two countries shared a common goal in desiring cooperation, peace and development in the Balkans. He underlined that this goal could not be achieved without Yugoslavia's participation.

Yugoslavia hopes for a rapid release of funds from the Balkan stability plan, in which the Greek contribution amounts to 500 million dollars. Half of these funds are destined for Yugoslavia, while the first money is expected to begin being paid out in July.

On Thursday, Simitis presented his Yugoslav counterpart with a draft agreement outlining the infrastructure works to be funded in the framework of the Stability Pact, which Yugoslavia will be expected to sign.

Apart from this, Yugoslavia also hopes for more financial support from Greece and the development of trade relations so as to equalize the balance of trade between the two countries, which currently favors Greece.

During the meeting, Simitis reiterated Athens' support for Yugoslavia's bid to join the Council of Europe and NATO. He said that Greece was also in favor of Yugoslavia's entry into the Partnership of Peace program, the establishment of closer ties between Belgrade and the European Union and eventually the country's accession to the Community.

Finally, Simitis said that Greece was in favor of redefining relations between Serbia and Montenegro and the agreement signed by the two republics.

Foreign Minister George Papandreou, Deputy Press Minister Telemachos Chytiris and a large delegation of Greek business people that have business interests in Yugoslavia accompany Simitis on his visit.

Apart from his meeting with Pesic, the Greek prime minister is also scheduled to meet the Yugoslav federal Parliament speaker, Serb President Zoran Djindjic, and to attend a Greek-Yugoslav business forum.

Greek and Serb PMs discuss border road corridor and Olympics: Prime Minister Costas Simitis and his Serb counterpart Zoran Djindjic discussed the Corridor 10 road linking the borders of the Former Yugoslav Republic of Macedonia (FYROM) with Belgrade and the 2004 Athens Olympic Games during their talks on Thursday.

Corridor 10 is a continuation of the road leading from Greece to Yugoslavia.

Djindjic said in a statement that it was agreed that a common fund will be created to manage the reserve funds to be provided to construct the corridor, with the purpose of attracting interest from private companies to participate in the project's construction.

Referring to the issue, Simitis said it is of great importance and that it had top priority among the issues discussed.

The second issue discussed was the holding of the 2004 Olympiad, while it appeared from Djindjic's statements that the Serbs are greatly interested in cooperation.

Simitis, who accepted the proposal, said the possibility of this cooperation will be examined from the aspect that Greece, being a European Union member-state, is subject to certain restrictions and such cooperation can only take place when it is not contrary to rules set by the EU in such cases.

He referred to the need for stability in the region and expressed concern over a possible new cycle of unrest unless the agreement signed between FYROM and the region's Albanian-speaking people is implemented and respected by both sides.

Speaking after his meeting with Djindjic on the interest of Greek banks to activate themselves in Yugoslavia, he said there is interest by a specific Greek bank, which he did not name, to buy out a Yugoslav bank.

According to reports, it is the Bank of Piraeus, which is interested in buying 36 percent of Univerzal Bank.

Simitis also met with Montenegrin President Milo Djuganovic. On Friday he is due to meet Yugoslav Federal President Vojislav Kostunica and the Patriarch of Serbia Pavle.

PM addresses Yugoslav business forum: Prime Minister Costas Simitis, closing the forum of Greek and Yugoslav businessmen here on Thursday, in the presence of Yugoslav Federal Prime Minister Dragisa Pesic, pointed out that Greeks and Serbs have a great deal in common.

''We Greeks and Serbs have a great deal in common, both in our historic course and in our civilization, and we would like to share a common future. European integration is our common target and our common strength in the political, economic and social policy of southeastern Europe.

''We believe in the value of our common policy and in a security policy in our region. We believe in stability in the region and the prosperity of southeastern Europe. In our effort to promote peace and stability in the area, the creation of healthy economies has a vital significance,'' he said.

Simitis said that Greece, being a member of the EU and the World Trade Organization will help the Federal Republic of Yugoslavia in its efforts to join both the EU and the WTO in which it participated recently as an observer.

''Greece wants to have neighbors who are economically strong in the Balkan peninsula. For this reason, it has undertaken an initiative for the Reconstruction Plan, which anticipates the amount of about 280 million euros for all of Yugoslavia, including Kosovo. This amount is about half of what is anticipated by the Reconstruction Plan. Economic exchanges between the two countries have not yet reached the level desired,'' he added.

[02] Gov't again denies plans to shelter Church of Nativity Palestinians

Athens, 09/05/2002 (ANA)

Responding to questions, Protopapas pointed to statements on the subject made on Wednesday by the foreign ministry.

Regarding the Greek-Turkish initiative for an end to the siege, the spokesman said that the two sides had been on the verge of a deal which had finally been scrupled by the latest suicide bombing in Tel Aviv late on Tuesday.

Asked to comment on the results of Greek-Turkish cooperation on the Mideast crisis, Protopapas said that Greek activity related to current affairs increased the country's prestige internationally and the benefits of this would become apparent in due course.

Arafat thanks Greek Archbishop: Palestinian President Yasser Arafat sent a letter to Archbishop of Athens and All Greece Christodoulos expressing his "gratitude and respect for the true feelings and the solidarity" the Archbishop expressed in his letter to the Palestinian leader, a press release of the Church of Greece said on Thursday.

''Also allow us to express our thanks for your recent efforts and the economic and spiritual support you offered, with the aid of the Hellenic Republic, to the Palestinian people,'' Arafat said in his letter.

[03] Cyprus offers Bethlehem militants transit stopover

NICOSIA, 10/05/2002 (ANA-G. Leonidas/CNA)

In a late-night news conference in Nicosia, Cyprus Foreign Minister Ioannis Kasoulides said a British aircraft was to leave the Akrotiri British Base on Cyprus' southern coast for Israel to pick up the 13 militants and land on its return at Larnaca International Airport.

The militants will be handed over to Cyprus authorities, even late Thursday night, until other European destinations were decided.

''The Cyprus government has accepted to keep for a few days in transit the 13 Palestinians whose expulsion the government of Israel has demanded,'' Kasoulides said.

Kasoulides said Cyprus accepted to temporarily host the 13 Palestinians after consultations with Spanish Foreign Minister Josep Pique, European Union foreign policy chief Javier Solana, Greek Foreign Minister George Papandreou and with the contribution of the governments of the U.S. and Britain and through contacts with the Israeli government and the Palestinian Authority.

''Mr. Pique assured me that some EU countries will undertake to forward the thirteen persons to final destinations, early next week,'' Kasoulides said, adding that on this issue as well as on the role Cyprus played in the affair, a Spanish EU presidency statement will be issued.

''Cyprus expresses its satisfaction because it contributes in this way to the positive outcome of the standoff at the Church of the Nativity, thus playing, as a future EU member state, the concrete role which it wishes to promote through the European space's expansion in the Eastern Mediterranean with its EU accession,'' Kasoulides concluded.

[04] Gov't spokesman: Athens views proposal for EU border force positively

Athens, 10/05/2002 (ANA)

The joint border guard force had been proposed by the Commission to solve problems not create them, the spokesman added, while he said that Athens was not opposed to the idea, which moved in the direction of a federal Europe.

''Europe knows how to accept refugees but also wants societies to operate according to rules. It does not accept the political model of open borders but wants rules and conditions that will prevent the formation of uncontrollable waves of immigrants, and will not allow these immigrants to enter the 'gray zones' of society,'' he said.

He also pointed out that Greek policies leaned toward integrating immigrants and giving them permanent residence.

Apart from this, Europe's borders were changing due to enlargement and some degree of predictability was required in view of this prospect, Protopapas noted.

[05] Cyprus issue, Cyprus' EU accession and EU army not linked, gov't says

Athens, 10/05/2002 (ANA)

Protopapas said that little progress had been made in relations between the EU and NATO with reference to the European rapid reaction force. The use of NATO planning infrastructure by the European force, whose members are also members of NATO, have so far been blocked by non-EU NATO-member Turkey, which wants to be given a role in decision-making for the EU army.

Regarding the Cyprus problem, the spokesman noted that this was now undergoing a particularly sensitive period - as shown by the planned visit to Nicosia by United Nations Secretary General Kofi Annan.

The Greek government felt restrained optimism and wanted to believe that Annan's presence on Cyprus would bring positive results, he added.

Cyprus' accession prospects were a third issue referred to by the prime minister on Symi, where he had warned that there might reactions as the time for the island republic's to join the EU drew near. The premier's message was that Greece was determined to act in order to bring Cyprus' accession to completion, perhaps within the term of the Greek presidency.

[06] Defense minister meets British counterpart in London

LONDON, 10/05/2002 (ANA - L. Tsirigotakis)

The meeting lasted for three hours and Papantoniou said afterwards ''we achieved total agreement between Greece and Britain on a series of international issues which were of concern to us and especially Cyprus. On the Cyprus issue I realized that we are at the same wavelength with Britain, which supports Greece's efforts for a political solution to the problem and also Britain realizes absolutely that the Republic of Cyprus will enter Europe irrespective of whether or not a political solution will be found''.

''Of course we hope that a political solution will be found to end the Cyprus tragedy,'' he said.

''We also agreed with Britain on our positions concerning developments in the Balkans and the Middle East,'' Papantoniou said.

Speaking on the Euroforce issue, he said ''what we achieved was to make it absolutely understood by the British side that Greece will not accept the Ankara text in any event. This was understood and I believe that on this understanding we can build a solution which will serve everyone involved in this process''.

''The British Defense Secretary Hoon said that it is difficult to change the Ankara text, but he did not say that it will remain as it is,'' Papantoniou concluded.

[07] Europe Day celebrated at Zappeion Hall in Athens

Athens, 10/05/2002 (ANA)

Many EU candidate countries also participated in the Athens events, each with its own pavilion providing printed brochures and with displays of traditional costumes and products.

Malta, Lithuania, Latvia, Cyprus, Estonia, Bulgaria, Hungary, Poland, Slovakia, Slovenia, the Czech Republic, Turkey and Romania have set up pavilions.

Among the officials that visited the Zappeion Hall events were Alternate Foreign Minister Tassos Giannitsis and main opposition New Democracy leader Costas Karamanlis, as well as Athens mayoral candidate Christos Papoutsis.

May 9 is the anniversary of the day in 1950 when France first proposed to Germany the idea of creating a European authority to control the production of coal and steel, in which all European countries could participate.

The European Community of Coal and Steel, the European court and other bodies thus formed proved to be the seeds of an idea that would eventually evolve into the European Economic Community (EEC) and finally the European Union that exists today.

Main opposition leader visits Zappeion exhibition of Europe: Main opposition New Democracy (ND) party leader Costas Karamanlis on Thursday visited the stands of the 13 European Union candidate member-states, set up in the Zappeion Hall in the framework of European Union Day, and organized by the European Commission representation in Athens and the European Parliament's office.

In statements to the press, Karamanlis said that ND was the party with the authentic pro-European orientation, adding that it did not only succeed in taking the country into the EU, but it also supported European options always.

He stressed that Europe ''should at last, with more decisive steps, move toward political unification,'' since it should confront the citizens' problems.

As for Greece, Karamanlis said that today's challenges are great, and those include Cyprus' accession to the EU - regardless of the resolution of the political problem - the achievement of real economic and social convergence with the other European peoples and the establishment of a Europe having its own common foreign and security policy and jointly protected borders.

Giannitsis addresses event on Europe's Day: Alternate Foreign Minister Tassos Giannitsis on Thursday evening addressed an event on Europe's Day organized at the Zappeion Hall by the European Commission representation in Athens.

The minister's address focused on Greece's twenty-year presence in the European process as a full member of the European Union saying that the country has gained a great deal. The expected enlargement of the EU, through which Cyprus will become a EU member, demands tremendous reforms on an institutional level but mostly on a European citizen's level, he said.

[08] Gov't spokesman says no Greek involvement in Srebrenica case

Athens, 10/05/2002 (ANA)

He further said that there was no involvement of Greek state authorities in the case of Srebrenica.

On the question of reports on the Balkan reconstruction plan and Greece's contribution, Protopapas said the plan has already become law in Greece and its implementation is being promoted. When Yugoslav authorities requested information on its content some time ago, the Greek authorities responded, he added.

[09] Bulgarian PM meets minister of Macedonia and Thrace

Athens, 10/05/2002 (ANA)

The two officials discussed issues concerning bilateral relations between the two countries, as a continuation of a meeting they had two months ago when Paschalidis visited the Bulgarian prime minister in Sofia.

Paschalidis said afterwards that the two countries are cooperating in the framework of the stability pact and the Greek plan on Balkan reconstruction, adding that after the relevant law is ratified by the Greek Parliament, in 2002, the signing of the bilateral agreement between Greece and Bulgaria on a group of projects to be agreed between the two countries will also go ahead.

The Bulgarian prime minister, who is on private visit to Greece, announced that he will visit his Greek counterpart Costas Simitis in the near future, as a continuation of meetings he had with Paschalidis on finding a common path to Europe and said that Greece and Bulgaria should cooperate as good neighboring countries as they have many common interests.

Gotha expressed his conviction that with the dialogue and the good relations they have developed, Greece and Bulgaria will succeed in achieving the targets they have set.

[10] Interior ministry seminar on reforming public administration

Athens, 10/05/2002 (ANA)

Papaspyrou was addressing a two-day seminar on reforming public administration organized by the interior ministry in Vouliagmeni, where Interior Minister Costas Skandalidis had earlier presented the government's overall strategy for the public sector and civil service.

ADEDY's president also called for changes to the structure of government, with the merging of certain ministries and the creation of offices to handle issues that involved several ministries, such as traffic problems, drugs, environment or youth affairs.

Deputy Interior Minister Loukas Papadimas, who stressed the importance of modernizing the structure of local government, also addressed the seminar.

[11] Stability Pact coordinator calls attention to FYROM's name issue

SKOPJE, 10/05/2002 (ANA - N. Frangopoulos)

According to the FYROM's news agency, Busek, a former Austrian Vice-Chancellor, said in Ljubljana that any postponement of a settlement on the name issue is illogical and cannot be supported.

[12] Adriatic Initiative to hold meeting in Corfu on Friday

Athens, 10/05/2002 (ANA)

Ministers from Italy, Albania, Croatia, Slovenia, Bosnia-Herzegovina and the Federal Republic of Yugoslavia will be participating in the meeting.

The ministers will have to ratify a joint announcement condemning terrorism and terrorist acts in general and cooperation on exchanging information on combatting terrorism will be stressed.

[13] Gov�t presents 2003 budget spending targets

Athens, 10/05/2002 (ANA)

Mr. Floridis said the ministry has sent a circular for drafting next year's budget to all government ministries. Referring to spending on civil servants' extra pay (overtime work, transfer expenses), Mr. Floridis said these spending were showing the largest annual increase and deviations each year and noted that under the new regulations, all government ministries and public agencies should regularly report all spending to the General Accounting Office.

He said that EU rules limiting the number of hirings in the public sector, existing before Greece's entry in EMU, were no longer valid and noted that new hirings would be decided according to needs.

Mr. Floridis also announced that the government would soon present a new regulatory framework on drafting state budgets.

He said that budget revenues rose 4.5 percent in the first four months of 2002, up from 2.2 percent in the first quarter, primary spending increased by 5.0 percent in the January-March period, compared with a budget target of a 5.4 percent annual increase, while borrowing needs rose 16.7 percent over the same period, compared with a budget target for a drop of 425 percent.

[14] Greece, Turkey back steady rise in business ties

ANKARA, 10/05/2002 (ANA - A. Kourkoulas)

Visiting Ankara, Greek Finance Minister Nikos Christodoulakis told a joint news conference with his Turkish counterpart, Kemal Dervis, that a move had been made with the European Investment Bank to back economic cooperation between Greece, Italy and Turkey.

''The southeast Mediterranean's three strongest economies can attract foreign capital and carry out joint projects,'' Christodoulakis said.

He noted that energy, transport and communications were sectors that boded well for cooperation with Turkey.

The minister also underlined that the private sector was a key vehicle for closer ties between the two countries.

Dervis stressed that stable economic ties with Greece were important for the broader region.

On Friday, the Greek minister is expected to meet Turkish Foreign Minister Ismail Cem and Ecumenical Patriarch Vartholomeos for separate meetings in Istanbul.

Greek economy minister addresses professors in Ankara's Bilkent University: Greece sought to consolidate its democratic institutions from within its relations with the European Union, Greek National Economy Minister Nikos Christodoulakis said on Thursday here.

The minister's comments were made while he addressed an audience of professors at the Bilkent University in Ankara.

Earlier in the day Christodoulakis had a working lunch with Turkish Minister of State Kemal Dervis, during which the two men discussed the possibilities of bilateral economic cooperation.

The Greek minister's visit was coinciding with the recovery of the Turkish economy, event that facilitates the cooperation with Greece, Dervis said, following his meeting with the Greek minister.

[15] Labor minister receives trade and industry representatives

Athens, 10/05/2002 (ANA)

Fountoukakos proposed changes in the pension age limits, mergers of pension funds and also proposed ways to invest the pension fund moneys for higher yields.

Reppas reiterated the government's proposals for the reform of the social security system.

EBEA presidium members stressed that any and all solutions to the problem should take into account the long-term survival of the system and the decrease of employer's payments to the system.

[16] Burgas-Alexandroupolis oil pipeline memo-randum to be signed

SOFIA, 10/05/2002 (ANA - B. Borisov)

He said Greece, Bulgaria and Russia have agreed to a 33 percent stake each in the capital of the ''Inter-Balkan oil pipeline'' construction company.

[17] EU experts to inspect food safety conditions in Greece

Athens, 10/05/2002 (ANA)

The results of the inspection are expected to be published late June in Brussels.

The EU's delegation will inspect hygiene conditions in restaurants, supermarkets, bakeries, pastry shops while particular attention will be given to the use of cooking oil quality.

Another EU group of experts is expected to arrive in Greece on July 17 to inspect works of modernizing Athens' meat market at Rendi. Greece's development ministry has announced a program to improve the quality of facilities at Rendi, expected to be completed by the end of June, but the program has not yet started, according to sources.

[18] Construction of 2004 Olympics press center awarded

Athens, 10/05/2002 (ANA)

The developer said in a statement on Thursday that it will use designs produced by the public works ministry and local authorities in the northern suburb of Marousi, the venue for the press center.

The press village, one of the Athens Olympics' few self-financing projects, will house 1,600 journalists during the games.

[19] Contract signed for Olympics beach volleyball facility

Athens, 10/05/2002 (ANA)

Budgeted at 86.2 million euros, the project will also include the construction of other buildings, infrastructure works, and a facelift for the coastline along the Phaliro Gulf, south of the capital.

The two firms have undertaken other projects for the Games - the Olympic Village, a new horseracing track, an Olympics equestrian center, and a tram linking southern suburbs of Athens to the city center.

After the Olympics, the beach volleyball facility will be used as a leisure and sports park.

[20] Wholesale prices rise 1.2 percent in March

Athens, 10/05/2002 (ANA)

NSS attributed the monthly increase to a 1.2 percent rise in domestic product prices and to a 1.3 percent rise in exporting manufacturing product prices over the month.

[21] Athens taxi business seen declining in next two decades

Athens, 10/05/2002 (ANA)

Commissioned by a taxi owners' trade group and conducted by the University of Piraeus, the study forecast that demand for taxis would drop by half from the current level by 2020.

Currently, each of the city's taxis is on the road for 19 hours a day and covers 350 kilometers daily, with the search for passengers taking up about 28 percent of the mileage total, the survey said.

At present, about 50 percent of movement in Athens is in private vehicles, 28 percent by public transport, 11 percent in taxis and the remaining 11 percent on foot, the survey showed.

By 2020, the percentage for taxi demand will have dropped to 4.7 percent, it predicted.

[22] Credit expansion slows in February

Athens, 10/05/2002 (ANA)

Contributing to the minor deceleration was a decline in loans to the public sector, which rose by 9.9 percent from 10.5 percent in January.

At the same time, credit to companies and households accelerated slightly to 23.8 percent from 23.5 percent a month earlier, the central bank said.

[23] Greek stocks' rally continues on Thursday

Athens, 10/05/2002 (ANA)

The general index rose 1.04 percent to end at 2,298.29 points, with turnover an improved 126.4 million euros.

The Construction, Holding and Retail sectors scored the biggest percentage gains of the day (3.07 percent, 2.89 percent and 2.03 percent, respectively), while only the Textile sector suffered losses (-0.01 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 1.14 percent higher, the FTSE/ASE MID 40 index rose 1.17 percent and the FTSE/ASE SmallCap 80 index rose 1.30 percent.

Broadly, advancers led decliners by 229 to 80 with another 53 issues unchanged.

The most heavily traded shares in value were Hellenic Telecoms, National Bank of Greece, Coca Cola HBC, Alpha Bank and Commercial Bank of Greece.

Equity index futures mixed: Equity index futures on the Athens Derivatives Exchange finished mixed in brisk trade on Thursday, despite a major rise on the main market fuelled by banks.

Turnover was 81.7 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips gained 1.14 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks rose 1.16 percent.

Bond prices slip in heavy trade: Bond prices in the domestic secondary market on Thursday finished slightly lower in heavy trade focusing on five-year paper.

The Greek benchmark 10-year bond showed a yield of 5.54 percent, and the spread over the corresponding German bund was 30 basis points.

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

Sell orders accounted for just over half of trade.

[24] Prince Charles expected to leave Mount Athos by Saturday

Athens, 10/05/2002 (ANA)

Prince Charles, who is staying at the Vatopedion Holy Monastery, arrived in the sea region of Mount Athos on board shipowner Yiannis Latsis' yacht and from there left for the Vatopedion Monastery with a speedboat. His friend Camilla Parker Bowles is also on the yacht.

[25] Pat Cox: there is a compelling political deadline this year

NICOSIA, 10/05/2002 (CNA/ANA)

He said that the optimum successful outcome would be a Cyprus with a comprehensive settlement joining the European Union, and commended President Glafcos Clerides for his ''consistent commitment'' to make headway towards this goal.

President Clerides, who received Thursday Cox, on a working visit here, assured him that he would continue to work for a solution to enable all Cypriots to enjoy the political and economic benefits of accession as from 2004.

The president expressed the conviction that the Accession Treaty would be ratified during Cox's term in office and said he briefed the president of the European Parliament about the ongoing UN-led direct talks and the accession course.

Thanking most sincerely President Clerides for his warm hospitality, he said at the meeting they reviewed progress both on accession to the EU and current state of talks, aimed at finding a comprehensive settlement.

In his remarks after the meeting, President Clerides thanked Cox for the ''continuous and undivided support the European Parliament is giving to Cyprus' accession course and to the efforts to solve the Cyprus problem.''

''We are seeking a solution that would be based on the UN resolutions and the EU principles,'' he said.

''We are convinced that the European Parliament will continue to support Cyprus' accession to the EU and that under the presidency of Mr. Cox it will ratify in good time the Accession Treaty so that Cyprus will take its rightful place in the European family as from the beginning of 2004,'' he added.

The president briefed Cox about Cyprus' efforts to harmonies its legislation with the acquis communautaire, create the administrative infrastructure and strengthen its capacity for the effective implementation of the acquis.

President Clerides informed the European Parliament president about his sincere efforts in good faith to find a settlement, based on UN resolutions and the principles on which united Europe has been built.

''I have assured him that despite difficulties we shall continue our efforts to solve the Cyprus problem so that the whole people of Cyprus may enjoy the political and economic benefits of accession as from 2004,'' the president added.

Cox was due to meet later in the day Turkish Cypriot leader Rauf Denktash, who has been engaged in direct talks with President Clerides since mid January this year. Cox concludes his working visit Friday.

[26] Peace talks meeting ends

NICOSIA, 10/05/2002 (CNA/ANA)

Clerides and Dentkash are to meet again on Tuesday morning.

The meeting, attended by their aides and UN Secretary General's

Special Adviser on Cyprus Alvaro de Soto, took place in anticipation of next week's visit to the island by Kofi Annan.

This was the second encounter between Clerides and Denktash since the resumption of the direct talks on Tuesday, after the Easter break.

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