Athens News Agency: Daily News Bulletin in English, 02-06-13

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

CONTENTS

[01] Greece blasts increase in Turkish occupation troops on Cyprus

[02] 'Euro Army' issue, int'l terrorism dominate Powell-Karamanlis talks

[03] ND leader Karamanlis meets UN Secretary General Annan

[04] Gov't, Mitsotakis reactions to Avramopoulos decision suspending party

[05] PASOK secretary attends Executive Bureau meeting

[06] Gov't on EU report for trans-Euro networks towards isles

[07] Greek econ, foreign ministers discuss Balkans program

[08] Deputy FM on overseas trade and cooperation

[09] Gov�t seeks ways to attract foreign capital, repatriation of Greek funds

[10] Greek tourism advertising needs new strategy; report says

[11] No decision on cotton prices for Greek producers

[12] State to sell fresh stake in OTE telecom

[13] Engineering group submits new bid for Mount Parnes casino

[14] Mutual fund returns in negative territory mid-year

[15] Gov't to adapt national consumer law to EU rules

[16] Greek Shipping Register increases by one ship in May

[17] Greek stocks end down in record-low turnover

[18] Government spokesman says Turks in a tight spot

[19] Clerides reassures Bush he is determined to reach settlement

[20] Cypriot MPs brief US Congressmen

[01] Greece blasts increase in Turkish occupation troops on Cyprus

Athens, 13/06/2002 (ANA)

Cyprus Defense Minister Socratis Hasikos revealed on Tuesday that Turkey had sent to Cyprus 5,500 soldiers over the past two weeks, bringing the number of its forces in the Turkish-occupied part of Cyprus to over 40,000, and appealed to those states involved in the peace effort to exert pressure on Turkey to withdraw its occupation troops from the areas it occupies since 1974. "The government believes that this move is a deliberate attempt on the part of Ankara to create tension in Cyprus. Turkey no longer restricts itself in words, it has actually moved on to deeds," he said.

In Athens on Wednesday, Greek foreign minister George Papandreou described the increase in the number of Turkish troops in the occupied sector of Cyprus as a "negative event".

"Occupation has no place on the modern international chessboard among the countries that wish to cooperate," Papandreou told reporters after a meeting with the visiting Cypriot DHKO party leader Tasos Papadopoulos, who also heads the Cyprus House of Representatives' European Affairs committee.

Papandreou and Papadopoulos, who are heading a delegation of the parliamentary committee, exchanged views on the course of the Cyprus problem.

Papadopoulos said that Cyprus was in the final stretch for its EU accession, and ascertained identity of views between Nicosia and Athens on the handling of the issue.

Greek government spokesman Christos Protopapas told a press briefing that it was obvious that Turkey was escalating its provocative moves with the aim of disorientation.

The Turkish side was citing current military exercises for the recent transfer of troops to the occupied sector of Cyprus, Protopapas said, but added that it was part of a chain of provocations being formulated by Turkey in order to turn its differences with the EU into Greek-Turkish differences.

"We, however, will carry on with our strategy, taking our measures and not focusing our attention on secondary issues," the spokesman added.

FM and State Department coordinator discuss Cyprus: The U.S. State Department's special coordinator for the Cyprus issue Thomas Weston, in a statement on Wednesday, indirectly condemned the transfer of an additional force of 5,000 troops from Turkey to the Turkish-occupied part of Cyprus.

Speaking after meeting Foreign Minister George Papandreou, Weston said the need to reduce military forces in Cyprus and the avoidance, by all sides, of actions and acts disturbing the existing situation, such as the strengthening of military forces and armaments, was and is a steadfast conception of the United States.

Referring to the same issue, Papandreou said Greece's target always remains a just solution to the problem of Cyprus, adding that ''no action will disorientate us from achieving this target. Coolness is necessary so as not to be distracted from our target'' and that such actions lead to a dead-end.

Papandreou said that he and Weston, who arrived in Athens from Ankara, exchanged views on efforts to resolve the political problem and on the prospect of Cyprus's accession to the European Union, thanking him for excellent cooperation existing between Greece and the United States on the issue of Cyprus.

Papandreou reiterated that Greece supports the efforts of the UN secretary general for a just and viable solution to the Cyprus issue, saying that such a solution should respect acquis communautaire.

On his part, Weston said cooperation between Greece and the U.S. on a solution to the Cyprus issue is very good and thanked Papandreou for his personal contribution for this objective.

Weston reiterated that the U.S., being a permanent member of the Security Council, is interested in a just and viable solution to the Cyprus issue being found ''in a short period of time.''

''This, of course, is also an issue of political will,'' Weston said, adding that ''time is running'' and that ''Cyprus is proceeding quickly towards it accession to the EU. The U.S. has always claimed that the accession course of Cyprus will be, and is, beneficial for a solution to the issue of Cyprus.''

Commenting on optimistic statements he made in Ankara on Tuesday on prospects for a solution to the Cyprus issue, Weston said ''it is not expedient to go into details on his discussions in Ankara'' and that he ascertained that there is a ''live discussion'' on the Cyprus issue in the Turkish press, the parties and society.

Weston said he is neither optimistic nor pessimistic, pointing out that it is a positive fact that this discussion is taking place in Turkey.

[02] 'Euro Army' issue, int'l terrorism dominate Powell-Karamanlis talks

WASHINGTON, 13/06/2002 (ANA - T. Ellis)

In statements to reporters afterwards, Karamanlis noted that he again outlined his party's objections to the so-called "Ankara Text" vis-a-vis the 'Euro Army's' future scope and operational capability, adding that while New Democracy supports NATO-EU cooperation, necessary alterations must be made for Athens to accept the compromise dangled before non-EU member Turkey.

Conversely, a US official earlier told the ANA that Washington considers the "Ankara Text" -- worked out jointly by US and British diplomacy to overcome Turkey's objections -- as part of a "very good" agreement.

[03] ND leader Karamanlis meets UN Secretary General Annan

NEW YORK, 13/06/2002 (ANA - M. Georgiadou)

Karamanlis told reporters after his meeting with Annan that Greece wanted a viable and just solution to the Cyprus issue based on UN resolutions.

The ND leader added that the Turkish side should understand that its continued intransigence was of no benefit to itself or to others.

Satisfied with contacts in U.S.: Karamanlis on Wednesday expressed satisfaction over his contacts with members of the U.S. Senate and House of Representatives with whom he primarily discussed the issue of Cyprus.

Karamanlis met with a positive response since most lawmakers are close to Greek positions. In any case, starting with the imposition of an embargo on the sale of weapons to Turkey and during the past three decades, Congress has repeatedly issued resolutions in favor of the withdrawal of Turkish forces from Cyprus and the achievement of a bicommunal bizonal federation solution.

Karamanlis met with the Senate's Foreign Affairs Committee President Joe Biden, Chairman of The Senate Foreign Relations Committee, the Minority Leader of the Senate, Trent Lott (R-MS), and Senators Paul Sarbanes (D-MD) and Olympia Snowe (R-ME) and the member of the House of Representatives Mike Bilirakis (R-FL).

The ND leader left for New York where he will be visiting UN secretary general Kofi Annan at the international organization�s headquarters and then he will be returning to Athens.

Fight against terrorism: In terms of the paramount issue of fighting international terrorism, the ND leader reportedly stressed to his US interlocutors that Greece is among the countries that has suffered dearly from such phenomena, with his own party, in fact, mourning victims of terrorism.

Karamanlis added that a future ND government's determination in the anti-terrorism campaign was a given.

Cyprus: Regarding the long-standing Cyprus problem, Karamanlis reiterated that Athens wants the issue solved on the basis of relevant United Nations resolutions and the EU's acquis communautaire, before echoing Greece's standing position of backing Cyprus' EU accession regardless of a prior political solution to its 28-year division.

Moreover, he said the main opposition party backs Turkey's European orientation, but also expects the neighboring country to respect and implement European principles.

Finally, Balkan developments were also briefly discussed in the half-hour meeting, with the ND leader stressing that stability in the often strife-ridden Balkans emanates from respect of human rights and the inviolability of borders, along with attainable prospects that countries in SE Europe will at some point join NATO and the European Union.

Karamanlis was accompanied to the State Department by Greece's ambassador to Washington, Alexander Philon, and ND deputy and foreign policy coordinator Dora Bakoyianni, among others.

Meeting with VP Cheney: Earlier, the ND delegation was received at the White House by US Vice President Dick Cheney, with talks centering on international terrorism, the safe hosting of the 2004 Athens Olympic Games, the "Euro Army" issue and efforts to solve the Cyprus problem. Karamanlis said the discussion, attended by Bush administration national security adviser Condoleezza Rice, was ''very useful'', while he described the level of bilateral relations as ''good.'' However, he added that relations could become even better.

According to a White House official, Cheney referred to America's experience with the winter Olympic Games in Salt Lake City and stressed the need for more to be done for the safe hosting of the 2004 Athens Games.

[04] Gov't, Mitsotakis reactions to Avramopoulos decision suspending party

Athens, 13/06/2002 (ANA)

Avramopoulos launched his party -- the Movement of Free Citizens (KEP) -- in March 2001 amid a crescendo of media coverage and fanfare, only to witness its first impressive showing in opinion polls sink to single-digit results more recently, a development also worsened by a confessed lack of funding.

During his regular press briefing on Wednesday, a day after Avramopoulos' announcement, the government spokesman me-rely noted that KEP "has closed out its circle".

"The lack of political speech creates impasses, which when heightened lead to decisions such as the one last evening," spokesman Christos Protopapas said.

In reply to a question over the latest poll results, apparently one of the factors that led the outgoing Athens mayor to suspend KEP's operations, Protopapas said ruling PASOK's moves aren't based on poll results.

Deputy Press Minister Telemachos Chytiris added that KEP "was a "non-existent party from the moment it was created ... I don't think there is any surprise here".

Meanwhile, honorary New Democracy president and former premier Constantine Mitsotakis said a possible rapprochement between Avramopoulos and ND would be beneficial for both sides.

Additionally, following his two-hour meeting with Prime Minister Costas Simitis on Wednesday, PASOK party secretary Costas Laliotis noted that KEP burned out, "just like all fleeting stars in politics".

Laliotis merely noted that Avramopoulos' announcement confirmed his party's demise.

The top PASOK cadre also claimed that KEP's suspension "essentially concludes a family affair within the right ..."

The two-term Athens mayor, supported by ND in both his candidacies, essentially dissolved his party as a potential election force some seven months after a founding congress in Thessaloniki.

''The party is suspending its operation, but our political proposal still remains autonomous and will continue its contribution to our political life, far away from behind-the-scenes procedures and haggling,'' Avramopoulos said during a hastily called press conference on Tuesday evening.

Finally, he cited what he called the polarization of Greece's political system and financial difficulties as the reasons behind his decision.

[05] PASOK secretary attends Executive Bureau meeting

Athens, 13/06/2002 (ANA)

Laliotis noted this while presenting his proposition to the Executive Bureau for ratification and which in turn will be presented to the party's Central Committee which will convene on Friday and Saturday to prepare the conference due to take place in early July.

He also said the conference can and should put an end, once and for all and irrevocably, to the vicious circle of introversion, complaining and defeatism.

Referring to opinion polls, Laliotis said one is experiencing the constellation of successive opinion polls and impressions, which are creating their results, adding that opinion polls cannot replace democracy, citizens or their verdict.

[06] Gov't on EU report for trans-Euro networks towards isles

Athens, 13/06/2002 (ANA)

The report, adopted by the Union's finance and social committee, was praised by Merchant Marine Minister George Anomeritis, who said the report takes into account Article 158 of the Treaty for developing island regions, as well as a provision of the Amsterdam Treaty and conclusions from the Nice Summit, all proposing initiatives for isolated areas in the 15-member Union.

Crete, the northern and southern Aegean, as well as the Ionian islands would benefit from their inclusion in various European transportation networks.

[07] Greek econ, foreign ministers discuss Balkans program

Athens, 13/06/2002 (ANA)

The meeting focused on promoting Greek banks' role and their better coordination in developing the Balkan region and their participation in a successful implementation of a Greek development aid program.

Mr. Christodoulakis said he discussed with Mr. Papandreou the prospect of highlighting and creating a business network in Balkan countries, the role of Greek banks in supporting small- and medium-sized enterprises and the transfer of know-how to neighboring countries.

Mr. Papandreou said that the two ministries were working closely with the aim to further boost Greek businesses' presence in the wider Balkan region.

[08] Deputy FM on overseas trade and cooperation

Athens, 13/06/2002 (ANA)

Loverdos also referred to the improvement of business missions, the creation of an economic cooperation office in Thessaloniki and a commercial attache bureau in Shanghai in the wake of the prime minister's visit to China.

The aims of development cooperation are economic diplomacy, cooperation between diplomats and the government and transparency in funding which will be secured through the monitoring committee.

Loverdos said Greece is waiting for a proposal from Yugoslavia to see the country's needs, adding that the DEKA road axis is a visionary project and that Greece, both institutionally and

economically, is ready to fund after, of course, the Yugoslav side delivers its studies, which have to be presented to the monitoring committee.

He further said that the Greek side does not desire the funding of many small projects but projects, which will have visibility, meaning that they will be visible to the Balkan friend.

Loverdos will be visiting Belgrade on June 19 to participate in inter-Balkan cooperation.

[09] Gov�t seeks ways to attract foreign capital, repatriation of Greek funds

Athens, 13/06/2002 (ANA)

George Zannias, secretary-general at the economy and finance ministry who also attended the meeting, told ANA that the committee's task would be the repatriation of Greek capital from abroad. The committee, to include economy ministry and Bank of Greece officials, is expected to submit its recommendations to Economy and Finance Minister Nikos Christodoulakis in a month's time.

Both ministry officials and bankers agreed there were great prospects to attracting foreign capital and to repatriate Greek funds from foreign markets.

Zannias told ANA that the measures would not lead to creation of a "tax heaven" but to a framework of incentives to attract capital. He dismissed talk that Greek banks that would offer financial support to small- and medium-sized enterprises would receive a 4.0 percent commission for their services.

[10] Greek tourism advertising needs new strategy; report says

Athens, 13/06/2002 (ANA)

In its report, ITEP said that total advertising spending, worth an average 26.8 million US dollars (or 18.7 percent of Greece's National Tourist Organization�s budget) in the 1990s, was not significantly lower compared with other countries, like Spain (75.8 million dollars), Portugal (30.8 million), Turkey (22.8 million) and Italy (13.2 million dollars).

ITEP said that Greek advertisement was relative more expensive (spending per arrival), while Greece generally lagged behind other tourist countries in tourist foreign exchange per advertising spending dollar.

The situation improved in the last three years (1998-2000) with spending per arrival falling to 1.7 US dollars, but only after a drastic reduction in Greece's advertising spending.

ITEP said that advertising spending has a positive effect on tourist arrivals in the country, but in a long-term (for a period between two and seven years) and not a direct one.

The report said that ad tourism spending should be an average 35 million US dollars annually to have any fundamental results and called for a restructuring in the way ad funds were distributed.

ITEP also recommended adopting a long-term marketing strategy with a steady slogan in foreign markets.

[11] No decision on cotton prices for Greek producers

BRUSSELS, 13/06/2002 (ANA - B. Demiris)

The two issues are to be referred to the committee's next meeting, due within two weeks.

The failure to arrive at a decision on Wednesday was due to new data on production given to the committee earlier in the day by the Greek agriculture ministry, according to sources.

[12] State to sell fresh stake in OTE telecom

Athens, 13/06/2002 (ANA)

The sale is to be effected outside the bourse from Thursday until July 13, OTE said in a letter to bourse authorities.

The stake to be sold by the state, which currently holds 41.76 percent of OTE, represents about 40.3 million shares, the letter said.

Traded on the bourse so far are 504,054,199 shares.

[13] Engineering group submits new bid for Mount Parnes casino

Athens, 13/06/2002 (ANA)

The Club Hotel Loutraki-Piraeus Bank consortium, which submitted the binding bid for 162 million euros, said recently that it would take legal action over the tender's second phase, in which it says it was ousted, and that its original financial bid was never opened.

Officially declared interim winner of the tender was a consortium comprising Hyatt in Greece of the world hotels chain and Athens quoted engineering contractor Hellenic Technodomiki, which had bid 92.1 million euros.

The tender was called by Hellenic Tourism Real Estate SA, a subsidiary of the state-owned Greek National Tourism Organization, which is overseen by the development ministry.

Development Minister Akis Tsohatzopoulos said recently that negotiations would be held with Club Hotel Loutraki and Piraeus Bank in order to improve their offer.

[14] Mutual fund returns in negative territory mid-year

Athens, 13/06/2002 (ANA)

More than 25 mutual funds out of the country total 74 posted negative returns of more than 10 percent, according to data from the Union of Institutional Investors.

Losses in international equity funds were up to 36 percent.

[15] Gov't to adapt national consumer law to EU rules

Athens, 13/06/2002 (ANA)

Among points covered in the presidential decree will be purchases of goods made in other EU countries, including distance sales, time sharing, package holidays, and misleading advertising, the ministry said in a statement.

[16] Greek Shipping Register increases by one ship in May

Athens, 13/06/2002 (ANA)

Sixteen ships, with an average age of 5.5 years, joined the Greek Register in May, while 15 ships, with an average age of 25.5 years, were withdrawn from the register in the same month.

Merchant Marine Minister George Anomeritis said that the fact that newly-built vessels were entering the Greek Register was proof of a renewal of the country's shipping fleet.

[17] Greek stocks end down in record-low turnover

Athens, 13/06/2002 (ANA)

The index fell 0.55 percent to end at 2,291.84 points, reflecting losses in blue chip stocks.

Turnover was 58.4 million euros, a record-low for the year.

The Cement, Metals and Investment sectors scored the biggest percentage gains of the day (0.26 percent, 0.14 percent and 0.10 percent, respectively), while the Publication, Insurance and Telecommunications sectors suffered the heaviest percentage losses (1.60 percent, 1.24 percent and 0.98 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.52 percent, the FTSE/ASE MID 40 index ended 0.52 percent lower and the FTSE/ASE SmallCap 80 index eased 0.15 percent.

Broadly, decliners led advancers by 212 to 84 with another 57 issues unchanged.

The most heavily traded shares in value were CocaCola HBC, Neorio Shipyards and Klonatex.

Equity index futures at discount: Equity index futures on the Athens Derivatives Exchange on Wednesday ended at a discount in flaccid trade.

Turnover was 48.3 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips shed 0.52 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks also lost 0.52 percent.

In individual stock futures, players focused on Intracom and Coca-Cola HBC.

Bond prices down in brisk trade: Bond prices in the domestic secondary market on Wednesday finished lower in moderate trade focusing on five-year paper.

The Greek benchmark 10-year bond showed a yield of 5.42 percent, and the spread over the corresponding German bund was 29 basis points.

Turnover through the central bank's electronic system totalled 1.8 billion euros.

Buy orders accounted for less than half of trade.

[18] Government spokesman says Turks in a tight spot

NICOSIA, 13/06/2002 (CNA/ANA)

Speaking after a cabinet meeting, Papapetrou noted that the governments of Cyprus and Greece agree that ''the possibility of a heated incident is far off'' and said the UN-led talks to solve the Cyprus problem have stumbled on the issue of security.

Replying to questions about the behavior of the Turks in general, Papapetrou said ''the Turkish side has many ways out'', and suggested that if the Turkish side were to accept solutions it proposed in the past, even if it did not actually mean it (bizonal, bicommunal federation) then the Turkish side is sure to come out of the tight spot.

He did not comment on information that the Turkish occupation troops seem to be getting ready for an attack, noting that ''the evaluation of the governments of Cyprus and Greece, that the possibility of a heated incident is far off, is still in effect''.

Asked if there were any difficulties at the Cyprus talks regarding the issue of security, Papapetrou said there were but did not go into any detail.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash launched UN-led direct talks in January, with a view to negotiate until a settlement is achieved.

[19] Clerides reassures Bush he is determined to reach settlement

NICOSIA, 13/06/2002 (CNA/ ANA)

Papapetrou said the written message also underscores Turkish threats and the irreversible accession course of Cyprus to the European Union.

''It is a message that aims at enhancing the central axes of our policy, underlines the determination of our side to show flexibility to reach an honorable and acceptable compromise on the basis of international community decisions, underscores Turkish threats and highlights the irreversibility of Cyprus' EU accession course'', Papapetrou said.

[20] Cypriot MPs brief US Congressmen

WASHINGTON, 13/06/2002 (CNA/ANA)

Senators and Congressmen who talked to the delegation said there is now a unique opportunity for a solution and stressed the need for negotiations in good faith.

They reiterated their support for Cyprus' bid to join the EU, saying that a political settlement is not a precondition for accession and pointed out that Turkey must keep close ties with Europe, as this would be to the benefit of both Greece and Cyprus.

The Cypriot deputies met with Dan Fried, President Bush's adviser and senior director of the National Security Council on European affairs, to whom they expressed the need for a more active intervention on the part of the US towards Turkey in order to overcome the current impasse.

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