Athens News Agency: Daily News Bulletin in English, 02-06-15

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

CONTENTS

[01] PM calls for party unity to pull PASOK out of the doldrums

[02] Finmin backs pensions overhaul before parliamentary committee

[03] Turkish warplanes violate Greek airspace

[04] Stephanopoulos receives Athens mayor

[05] ND meeting focuses on Karamanlis' recent US contacts

[06] Turkish deputy PM calls for 'new steps' in Cyprus

[07] Thessaloniki conference focuses on EU expansion

[08] DHKKI takes TV stations to court for not reporting party activities

[09] Greek financial aid to developing countries up 300 pct

[10] Gov't disqualifies new bid for Mount Parnes casino

[11] Hellenic Republic completes sale of 8.0 percent stake in OTE

[12] EU proposes rule to make feta cheese exclusively Greek

[13] National Bank of Greece completes buyout of NY bank

[14] Bank of Greece's new governors sworn in

[15] Improvements announced on bank social security

[16] Athens public transport workers to strike June 18

[17] Seamen to launch rolling strikes from June 19

[18] Greek stocks end 2.31 percent lower on Friday

[19] European Alliance of News Agencies ratifies new charter

[20] Two shipowner arrested in connection with major high seas drug bust

[21] 'Friends of Al Qarara' to support Palestinian agriculture

[22] Second stage of 49th Rally Acropolis scheduled for Saturday

[23] Government agrees with Hannay on some issues, disagrees on others

[24] Britain denies Turkish version of Lord Hannay's interview

[25] G8 calls for intensification of effort for agreement in Cyprus

[26] Government welcomes UNFICYP resolution

[01] PM calls for party unity to pull PASOK out of the doldrums

Athens, 15/06/2002 (ANA)

He said the party, which has been flagging in the latest opinion polls, was capable of leading the country with safety and stability into the future and could give substance to the vision of convergence with the European Union, which would bring palpable change to the lives of ordinary people once it had been achieved in all areas.

The prime minister stressed that the government ruled according to a plan and that the results of its work were not seen from one Sunday to the next nor from one opinion poll to the next but came at their own time as this plan was implemented.

Simitis then called for an end to the 'vicious circle' of internal bickering and jockeying for position within the ruling party, which presented an outward image of division and sent mixed messages to the public.

Stressing that the voters disliked a party that appeared divided and preoccupied with itself, Simitis underlined the need to highlight political problems as opposed to petty party-politics and to focus on issues that concerned society.

Turning to the upcoming local government polls, the prime minister said the crucial factors in the electoral race in each region would be the ideas, proposals and work of the candidates.

He then appealed to all 'progressive citizens' to rally around the party in the municipal and prefectural elections, so that local government could ''contribute to transparency, modernization, development and convergence.''

He slammed main opposition New Democracy for what he called its lack of policies for local government, which it covered by a storm of negative criticism, and said that local authorities with a right-wing leadership had failed to meet their responsibilities.

''All [ND] can offer is its thirst for power and an obsession with holding office,'' he said.

Simitis particularly stressed the need to clearly underline the differences between the Right and Left, saying that the distinction continued to be relevant in the present day and that it was the duty of a modern socialist party to make this clear.

The upcoming PASOK conference, he noted, should examine the major ideological issues of the era and not focus exclusively on organizational and political affairs.

The conference should be a major political event that reached outward and would bring the ruling party closer to society, he added.

The decision to elect the party president by all party members was in itself a big opening to the grassroots that would bring the party closer to society, he noted.

PASOK secretary: Speaking after the prime minister, PASOK Central Committee Secretary Costas Laliotis referred to the upcoming PASOK conference, saying that it would be a special political event that could help reverse the negative climate for PASOK and put an end to the vicious circle of introversion, grumbling and defeatism.

Referring to the party's poor results in opinion polls, he said it would be a mistake to submit to these fatalistically, stressing that PASOK had succeeded in pulling out of similar doldrums in the past.

''It's up to us to reverse the negative predictions and forecasts, provided we want it and believe in it ourselves,'' he said.

Polyzogopoulos, Pangalos: In taking the podium afterwards, General Confederation of Greek Workers� (GSEE) president Christos Polyzogopoulos criticized what he called the lack of support for social security reform by certain members of the government, although he did not mention specific ministers.

�I have some major reservations for decisions that will taken at the (PASOK) conference when members of the central committee don�t commit (themselves) and when cabinet ministers act and decide as no more than �lone riders�,� the GSEE president said.

He also charged that certain PASOK cadres are promoting personal agendas that often �reach the point of adventurism�.

Education Minister Petros Efthymiou, meanwhile, referred to a need for a �revision� of the ruling party�s agenda.

Additionally, high-profile deputy and former minister Theodoros Pangalos was also highly critical in his address, before saying that to ignore negative results for PASOK in recent opinion polls was a thoughtless act, �because a large and solid difference between the two major parties now exists, in fact, on questions that deal with the quality of life, citizens state that they are waiting for ND to better deal with these issues than PASOK.�

Regarding the recent shooting incident outside the premier�s residence, Pangalos said the affair reveals two major problems in Greece today, namely, drugs and security.

�While PASOK, of course, did not create the two problems, it also didn�t face these two issues as it should have during its tenure, resulting in them worsening,� the former foreign minister said.

[02] Finmin backs pensions overhaul before parliamentary committee

Athens, 15/06/2002 (ANA)

He said the cost of the reform package fell within the economy's limits, benefited workers, and created better terms for social cohesion.

Financing for the pensions system would be stable, aiming to create reserves for the Social Insurance Foundation, the country's main state pension fund, in the century's second decade. The reserves would cover payments in difficult financial periods, the minister added.

Main opposition walks out of debate on pensions bill: Main opposition New Democracy on Friday walked out of the debate on the pensions bill at Parliament's Social Affairs Committee after the government refused to withdraw a controversial article that had been criticized as flawed by the state's Auditing Council.

Announcing the party's departure, New Democracy rapporteur Gerasimos Giakoumatos said his party could not stand by and lend legitimacy to the bill, which he described as ''unconstitutional, slapdash and dangerous''.

He said the government's bill did not ensure the viability of the social security system but only the survival of the present government and ruling PASOK in power by postponing the problem.

ND's departure had been expected after Thursday's debate on the bill in principle, while its decision was based on a report by the state's Auditing Council, which said that the compatibility of article 1 with the Constitution could be challenged.

Article 1 contains a series of measures that differentiate conditions of retirement for those employed within 1992 who leave by the end of 2007 and those who retire from 2008 onward.

Asked about ND's departure, government spokesman Christos Protopapas said that it had been expected.

He said the main opposition had walked out because it ''lacked positions, a program and views on the issue'' and wanted the law crafted by Dimitris Sioufas to stay in place, regardless of the fact that it had been universally rejected by all other political camps and the entire trade union movement.

The left-wing Coalition of the Left and Progress party criticized ND's decision to walk out in its own address to the committee regarding the bill.

''ND's departure becomes PASOK's alibi, in the same way that PASOK's departure was ND's alibi in 1992-93,'' Coalition leader Nikos Constantopoulos said during the discussion.

''When parties walk out of the debates, it becomes harder to oppose the government's maneuvers or change negative elements in a bill,'' he added.

Among other amendments supported by the Coalition after consulting with trades unions and other bodies, the party had also requested a roll-call vote. The last demand has been denied because there were not enough MPs present to support it.

Constantopoulos called for three-way funding for the social security system, with the government providing one third of the funds. He said this was the only way to ensure that the social security system stayed in the red, since the proposals currently being presented by the government were based on ''indefinite figures and unjustified extrapolations''.

Communist Party of Greece (KKE) rapporteur Antonis Skyllakos also criticized the main opposition's departure, saying that it gave the appearance of a strong protest but actually concealed the fact that ND agreed with the basic directions of the bill and actually felt that it did not go far enough.

He predicted that the measures would once again introduce 'starvation pensions' as in the days of ND governments, despite the increases for certain categories of pensioners.

Majority of GSEE board cites opposition to social security reform bill: A majority of the labor group affiliations represented on the General Confederation of Greek Workers� (GSEE) board have outlined their disagreements with a social security reform bill unveiled by the government recently. The disagreements were included in a text tabled on Friday with a relevant Parliament committee.

In the submitted document, a majority of GSEE�s board said the largest labor umbrella organization in Greece examined and rejected the government�s measures, �because they do not ensure the viability of the system�. They added that GSEE insists on implementing the proposals included in a decision issued at its congress.

Meanwhile, GSEE and the civil servants� union (ADEDY) have called for a general strike on Tuesday, with a rally through downtown Athens planned as well.

[03] Turkish warplanes violate Greek airspace

Athens, 15/06/2002 (ANA)

According to reports, the Turkish warplanes were identified and intercepted in all cases by Greek aircraft and in three cases the interception process turned into an engagement.

[04] Stephanopoulos receives Athens mayor

Athens, 15/06/2002 (ANA)

Afterwards, Avramopoulos told reporters that he wanted to personally brief Stephanopoulos over his decision to downsize and transform his Movement of Free Citizens (KEP) into a political think tank, effectively meaning that it will not field candidates in October�s municipal and prefectural elections.

Despite repeated press questions, he also declined to reveal what his future political plans may entail.

In an unrelated development, the Athens mayor � who will step down from the post after two terms in office � also briefed Stephanopoulos on the upcoming �Summit of the World�s Mayors�, which is scheduled to take place in Athens next September under Avramopoulos� chairmanship.

One of the proposals expected to be discussed at the summit includes Athens� idea to create an �International Union of Olympic Cities�.

[05] ND meeting focuses on Karamanlis' recent US contacts

Athens, 15/06/2002 (ANA)

Karamanlis departs for a tour of the Ionian islands of Zakynthos and Lefkada on Saturday.

[06] Turkish deputy PM calls for 'new steps' in Cyprus

ISTANBUL 15/06/2002 (ANA - A. Kourkoulas)

''The present conditions are completely different from the conditions of 1960 and 1970. A new structure is being prepared in Europe and Cyprus is expected to take its position in this new structure,'' he said, adding that ''all should revise their views.''

Yilmaz, in an interview with the magazine 'ast', published in Brussels for Turks living in Europe, said there are steps which both the Turkish and Greek Cypriot sides can take on the Cyprus issue and the steps should be taken as soon as possible.

He said it is out of the question for Turkey to leave the Turkish Cypriots without a guarantee, ratify various formations permitting the reappearance of history in Cyprus or to back down from the structure it supports for Cyprus, which is political equality and a bizonal structure.

''I believe the Turkish side can formulate more proposals on other parameters for a solution such as, for example, parameters concerning basic freedoms and rights and parameters concerning the territorial issue,'' Yilmaz said.

''Moreover, these proposals will oblige the Greek Cypriot administration to take some steps and if it does not take steps the accession of the Greek Cypriot administration will be prevented,'' he added.

Yilmaz said he believes that the most rational policy for the Turkish side on the Cyprus issue is a more active and more condescending policy.

In another development, former Turkish Prime Minister Tansu Ciller called on the Turkish government to assume its responsibilities on the Cyprus issue.

Addressing her party's parliamentary group, she said ''Spain, which is presiding over the EU, is underlining that the Cyprus issue must be resolved by November 24.''

Ciller said that she has been stressing for days that the Cyprus issue is a paramount issue in Turkey's path to the EU.

''We have a historic responsibility in having the issue resolved by November 24. Prime Minister Ecevit, who is not seeing this and is not doing what is necessary, will be responsible before history. If Mr. Ecevit is attempting to separate the Cyprus issue from the case of the EU, I fear that he has distanced himself from international reality,'' Ciller added.

[07] Thessaloniki conference focuses on EU expansion

Athens, 15/06/2002 (ANA)

On his part, veteran PASOK deputy and Athens� representative at the Convention for Europe�s Future, Paraskevas Avgerinos, expressed his certainty that Cyprus will not face obstacles towards its EU course, before stressing that what is now necessary is the formulation of a common foreign and security policy by the 15 EU member-states.

Euro-Parliament vice-president George Dimitrakopoulos also appeared confident over the island republic�s EU accession course, saying Cyprus� standing political problem should not stand as an obstacle.

He emphasized that the east Mediterranean island republic is ready to join the EU tomorrow if necessary.

Roughly one-third of Cyprus� territory continues to be occupied by the Turkish military, with a self-styled pseudo-state set up in the occupied regions recognized only by Ankara.

High-ranking New Democracy deputy George Alogoskoufis stressed that the current EU expansion ranks as the most ambitious initiative undertaken by the Union since its inception, whereas the primary issue for candidate-states, even greater than expected financial assistance, is the implementation and adaptation of new EU-mandated institutions.

[08] DHKKI takes TV stations to court for not reporting party activities

Athens, 15/06/2002 (ANA)

More specifically, DHKKI filed a complaint against state television channel ERT and the private stations Mega, Antenna, Star and Alter for failure to report on the party's activities in its news and other informational programs.

In its complaint, which will be heard in court on June 21, DHKKI is calling for the broadcast of the party's activities on the basis of the principle of equal objective reporting and equal treatment of the political parties, and the principle of proportional equality.

In the event that the court upholds the complaint, DHKKI is seeking the imposition of a one million euros fine for each breach of the court's decision.

The Democratic Social Movement (DHKKI) failed to clear the three percent of the poll required for parliamentary representation in the last general elections in April 2000 and thus has no seats in parliament, but elected two out of Greece's 25 MEP's in the June 1999 Europarliament elections.

[09] Greek financial aid to developing countries up 300 pct

Athens, 15/06/2002 (ANA)

IFC is the funding arm of World Bank, which focuses on financing private sector investments in developing countries.

Economy and finance ministry was represented in the seminar by Nikos Symeonidis, director of the general secretariat for International Affairs.

In his message, Mr. Christodoulakis noted the importance given by Greece in offering developing aid to third countries and stressed that Greece was one of the most active members of an international donors' community.

He attributed a relatively small participation of Greek businesses in World Bank's activities to a lack of equal distribution of information over the international bank's mechanisms.

Mr. Christodoulakis said the government, in his effort to bridge this gap, has opted to set up a Business Interconnection Agency (DIPEK) in Thessaloniki, a Greek Special Fund in cooperation with World Bank's subsidiaries IBRD and IDA, to set up a Trust Fund with IFC and to participate in an Initiative for Business Development in Southeastern Europe (SEED).

DIPEK's chairman, Dimitris Bakatselos, addressing the seminar said that "successful promotion of business activities in other countries was more efficiently ensured through international organizations' activities, such as the World Bank."

[10] Gov't disqualifies new bid for Mount Parnes casino

Athens, 15/06/2002 (ANA)

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

The group has also said that it was originally chosen as interim winner of the state tender for the sale of 49 percent of stock in the casino and its management.

''Today or tomorrow there will be meetings of Hellenic Tourism Real Estate and the government, and a position will be taken on the issue. It's a question of time when a final decision will be taken,'' Tsohatzopoulos told reporters in Thessaloniki in reply to a question.

He added that the Club Loutraki-Piraeus bid fell outside the terms of the tender, and therefore illegitimate.

Officially declared interim winner of the tender was a consortium comprising a Greek operation belonging to Hyatt, 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 that is overseen by the development ministry.

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

Opposition blasts tender process: The main opposition New Democracy party on Friday sharply criticized the government for what it claimed was a tender rigged to favor one company.

''The formulation of the tender was unethical, conflicting and geared to produce a particular outcome. Out of 37 serious investors that expressed interest, 35 were banished from the tender,'' senior party officials said in a statement.

''The tragi-comic phenomena that emerged in preliminary work on the tender and how it was conducted show convincingly that despite the government's pronouncements on privatization, either it doesn't know how to do the job, or it is incapable of carrying it out, or, more likely, it aims to serve specific interests,'' the statement said.

Also on Friday, the president of Hyatt's operation in Greece, Yiorgos Galanakis, told a news conference that Club Loutraki-Piraeus Bank's bid was submitted 12 days after the tender deadline.

The president of Hellenic Technodomiki, Anastasios Kallitsantsis, said the tender was conducted legally and with transparency.

Hyatt - Hellenic Technodomiki proposed as buyer for Parnes casino: Hellenic Tourism Real Estate on Friday decided to recommend to the government a consortium comprising Hyatt Regency and Hellenic Technodomiki as winner of a tender to privatize the Mount Parnes casino near Athens.

The tender's improved bid of 110 million euros was about 15 million euros higher than an evaluation of the deal at 95.4 million euros by American Appraisal, an international house.

The privatization is for 49 percent of the casino's stock and its management.

[11] Hellenic Republic completes sale of 8.0 percent stake in OTE

Athens, 15/06/2002 (ANA)

The shares have been placed with more than 200 Greek and international institutional investors through an accelerated book building, the most common and successful international practice.

Foreign institutional investors bought around 85 percent of OTE's shares, with the remaining 15 percent bought by domestic investors.

Deutsche Bank and Morgan Stanley have acted as joint book runners for the placement and EFG Telesis Finance, the investment arm of EFG Eurobank Ergasias, has acted as joint lead manager.

Investors purchasing the shares in the placement will be entitled to the dividend to be approved in OTE's general shareholders' meeting, June 19, 2002. The Hellenic Republic has agreed to a lock-up of 180 days on subsequent sales of its remaining OTE shares.

[12] EU proposes rule to make feta cheese exclusively Greek

BRUSSELS 15/06/2002 (ANA/M.Spinthourakis)

The recommendation the Commission will make to EU ministers is that feta cheese should received geographical protection status, eliminating production elsewhere.

''Protection of geographical names is key to promoting quality produce and increasing transparency. Feta cheese should not be an exception,'' EU Farm Commissioner Franz Fischler told reporters.

Under the proposal, the production of feta will be limited to certain areas in Greece, and strict product specifications must be followed.

Greece has been trying for eight years to attain geographical name protection for its traditional cheese.

EU ministers have up to three months to issue a ruling. If no decision is made, the Commission's proposal automatically takes effect.

Manufacturers in other EU states, or Greek producers that fail to adhere to specifications, will have five years to halt production or change the name of the cheese they produce.

Feta cheese from other countries is usually made of cow's milk, using a different technology.

[13] National Bank of Greece completes buyout of NY bank

Athens, 15/06/2002 (ANA)

The purchase was effected through a subsidiary of National, Atlantic Bank of New York, whose assets now total 2.5 billion US dollars with a network 19 branches.

Yonkers specializes in consumer credit and financing for small and medium-sized enterprises.

[14] Bank of Greece's new governors sworn in

Athens, 15/06/2002 (ANA)

Economy and Finance Minister Nikos Christodoulakis also attended the ceremony.

Mr. Garganas was elected new governor at the central bank to replace Mr. Lucas Papademos who took over as vice-president at the European Central Bank last month.

[15] Improvements announced on bank social security

Athens, 15/06/2002 (ANA)

Labor Minister Dimitris Reppas and Deputy Social Insurance Minister Rovertos Spyropoulos announced to OTOE's representatives the second change in 48 hours to the clause on the operation of lump sum funds.

According to the new formulation of the clause, lump sum funds can be turned into legal entities of private law and change their charter with the agreement of their board and after an actuarial study is prepared by an authorized firm.

Acting on data contained in the study, the labor minister, who maintains control over the funds, will determine the total lump sum insured people will be receiving.

OTOE's stance will be determined during an Executive Secretariat meeting on Saturday.

[16] Athens public transport workers to strike June 18

Athens, 15/06/2002 (ANA)

The transport employees are joining a strike called by the General Confederation of Workers of Greece and the civil servants union against the government pensions bill, currently being debated in parliament.

On Wednesday, staff on the old Piraeus to Kifissia metro line will stage a walkout from 1300 to 1700.

Also taking part in Tuesday's strike are civil aviation workers. Disruption of flights is expected.

[17] Seamen to launch rolling strikes from June 19

Athens, 15/06/2002 (ANA)

The strike call is for seamen on all categories of ships to press for a signed agreement with Finance Minister Nikos Christodoulakis on social insurance coverage, and the creation of a sector unemployment fund.

[18] Greek stocks end 2.31 percent lower on Friday

Athens, 15/06/2002 (ANA)

The general index ended 2.31 percent lower at 2,225 points, with turnover a hefty 772 million euros, reflecting the transfer of a block trade in OTE's shares, worth 691.7 million euros.

OTE's share prices fell 2.83 percent to 16.50 euros equaling the price offer in the latest sale of an 8.0 percent equity stake to foreign and domestic institutional investors on Friday.

The Banks, Investment, Construction, IT and Telecommunications sector suffered the heaviest percentage losses of the day (2.78 percent, 2.75 percent, 2.65 percent, 2.09 percent and 2.04 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks dropped 2.40 percent, the FTSE/ASE MID 40 index ended 1.71 percent lower and the FTSE/ASE SmallCap 80 index ended 1.64 percent down.

Broadly, decliners led advancers by 296 to 40 with another 27 issues unchanged.

The general index ended the week with a net loss of 3.06 percent.

The most heavily traded shares in value were Hellenic Telecommunications Organization, TEB, Public Power Corporation, National Bank of Greece, and Alpha Bank.

Equity index futures drop: Equity index futures on the Athens Derivatives Exchange on Friday widened their discount, tracking a decline on the main market.

Turnover was 98.3 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips shed 2.40 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks lost 1.71 percent.

In individual stock futures, players focused on Intracom.

Bond prices up in brisk trade: Bond prices in the domestic secondary market on Friday finished higher in active trade focusing on five-year paper.

The Greek benchmark 10-year bond showed a yield of 5.30 percent, and the spread over the corresponding German bund was 29 basis points.

Turnover through the central bank's electronic system totalled 2.7 billion euros.

Buy orders accounted for just over half of trade.

[19] European Alliance of News Agencies ratifies new charter

STOCKHOLM 15/06/2002 (ANA)

The Alliance's name has changed and so its official name, after 56 years of operating, is now the European Alliance of News Agencies. In addition, it was decided that the Alliance will be registered in Berne, Switzerland, as a non-profit membership association.

The announcement said that alliance President Andreas Christodoulides, also general director of the Athens News Agency (ANA), said that the changes were necessary since for years news agencies have not only been serving newspapers but also many other media clients with multimedia services, telecommunications companies, banks, etc. He added that these changes will allow the Alliance to work more productively as a professional organization.

The Alliance's annual general assembly will be held in Geneva, Switzerland, on September 26-27, while a seminar will also be organized for views to be exchanged with the representatives of other media.

A total of 28 European news agencies are participating in the Alliance. They include the French AFP, the German DPA, the Spanish EFE, the Italian ANSA, the English PA, the Russian ITAR-TASS, the Turkish Anadolu, the Cypriot CNA and Greece's ANA.

[20] Two shipowner arrested in connection with major high seas drug bust

Athens, 15/06/2002 (ANA)

The shipowner were identified as Constantinos Seidis, 37, and Aristeidis Kotsores, 47, both hailing from the eastern Aegean island of Ikaria.

Greek authorities arrested the duo and raided a handful shipping agencies following the almost simultaneous operation by an international task force to stop and board the Cambodian-flagged �Winner�, formerly the �Amir�.

All 12 crewmembers, which reportedly include a Greek skipper and first engineer, aboard the vessel were detained. Meanwhile, according to wire reports, another Greek national, 57-year-old Anastasios Kagasidis and Spaniard Gonzalez Avelino, have been temporarily detained in Ecuador in connection with the case.

The US-based Drug Enforcement Administration (DEA), naval vessels from four countries � US, Britain, the Netherlands and France � as well as Greece�s coast guard and financial crimes unit (SDOE) participated in the multinational, 15-month-long operation. At press time, the �Winner� was being directed to the port of Brest by the two French warships that intercepted it in the eastern Caribbean.

[21] 'Friends of Al Qarara' to support Palestinian agriculture

Athens, 15/06/2002 (ANA)

The campaign is a ''Greek response'' to the ''Greener Palestine'' appeal and is taking place in cooperation with the Palestinian Welfare Association.

The ''Greener Palestine'' program was presented by members of the Palestinian Welfare Association. The implementation of the target of having 14,000 trees planted will take place with individual donations of 10 euros for each tree, while the program will be completed in one year.

The initiative includes Coalition of the Left and Progress party leader Nikos Constantopoulos, former deputy Manolis Glezos, economist Antonis Karras, economist Muhammad al Sayed, biologist George Mehrabian and economist and international law expert Panos Trigazis.

[22] Second stage of 49th Rally Acropolis scheduled for Saturday

Athens, 15/06/2002 (ANA)

Driving a Ford Focus RS WRC 02, the 27-year-old driver won three special courses (Pavliani I, Rengini and Inohori I) out of the six taking place on Friday. Freddy Loix came second with a Hyundai Accent WRC 3 and Colin McRae third with a Ford.

The second stage of the race is scheduled for Saturday with six special courses. They are Voxites I, Drosohori I, Elateia I, Menthenitsa I, Voxites II and Drosohori II.

[23] Government agrees with Hannay on some issues, disagrees on others

NICOSIA 15/06/2002 (CNA/ANA)

Government Spokesman Michalis Papapetrou said on Friday some of Lord David Hannay's comments are welcomed, such as the setting up of a central state with two component states, the responsibility he lays on the Turkish Cypriot side for the lack of progress at the peace talks and his adherence to the European Union decision that a political settlement is not a precondition for accession.

The spokesman said no representations will be made to Britain about the negative remarks but the government will repeat in a forceful manner its point of view on the issues Hannay raised in his interview to CNN Turk.

''Hannay's reference to a central state and two component state meets fully the provisions of UN resolutions and our objectives,'' Papapetrou said.

The spokesman welcomed the reference to signs of ''genuine flexibility'' by the Greek Cypriot side and said it was pleased with Hannay's expression of disappointment with the Turkish Cypriot side ''at various moments in recent weeks.''

Papapetrou also welcomed Hannay's firm stand on the validity of the EU Helsinki decision that a settlement is not a precondition for accession.

On the negative side, the spokesman said the government says yes to a new constitution but no to a new state.

Creating a new state, he explained, means that all relevant agreements of 1960 would be abolished. This would include the treaties relating to the establishment of two military bases Britain has retained since Cyprus gained its independence from colonial rule.

It would also relate to Cyprus' application to join the EU.

Commenting on Hannay's statement about limited responsibilities of the central government, the spokesman said ''it is necessary that these responsibilities are such that would secure the unity of the state and its proper functioning as a state within the EU.''

Hannay has told CNN Turk that a new state, quite different from the old one would be created. He said the central state would have ''rather limited responsibilities''.

[24] Britain denies Turkish version of Lord Hannay's interview

LONDON 15/06/2002 (CNA/ANA)

The spokesman said he would make available the full text of the interview and stressed that ''I have no difficulty to state right away that Lord Hannay did not speak of an independent, sovereign state in the north''.

[25] G8 calls for intensification of effort for agreement in Cyprus

NEW YORK 15/06/2002 (CNA/ANA)

Foreign Ministers also said, in their communique after a meeting in Whistler (Canada), the UN should play a full role in facilitating the effort for an agreement.

[26] Government welcomes UNFICYP resolution

NICOSIA 15/06/2002 (CNA/ANA)

Government Spokesman Michalis Papapetrou told CNA that ''the UNFICYP resolution reiterates the previous ones'' and noted that ''it is positive and important that it reaffirms the Security Council resolutions, especially 1251, despite efforts by Turkish Cypriot leader Rauf Denktash to be freed of them''.

He added that ''the reference to Strovilia and the need to restore the status quo ante is also something that should be noted''.

The UN Security Council unanimously adopted resolution 1416, by which it ''decides to extend the mandate of UNFICYP for a further period ending 15 December 2002''.

In its resolution, the Security Council ''urges the Turkish Cypriot side and Turkish forces to rescind the restrictions imposed on 30 June 2000 on the operations of UNFICYP and to restore the military status quo ante at Strovilia''.

The Turkish occupation forces illegally put up a checkpoint in the southeastern area of Strovilia as part of measures against UNFICYP in retaliation to the non-inclusion of an addendum in a report by UN chief Kofi Annan for an earlier renewal of the Force's mandate with a Turkish demand for separate discussions with UNFICYP.

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