Athens News Agency: Daily News Bulletin in English, 02-09-05

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

CONTENTS

[01] FM meets UN chief, discusses Cyprus, Iraq

[02] PM briefs President on domestic and foreign policy issues, economy

[03] PM chairs meeting on TIF; Laliotis on Athens flooding

[04] Gov't grapples for answers as Athens hit by 3rd major flood in 45 days

[05] 'No issue' regarding religious education classes, gov't says

[06] Authorities in N17 probe report questioning of unidentified woman

[07] Former minister sues Karatzaferis for alleging he had links with N17

[08] Minister on Greece's negotiations on future of EU agriculture

[09] Interior minister addresses conference on immigration policy

[10] SEB says tax reform plan moving in the right direction

[11] Commerce, industry say tax reform package inadequate

[12] Greek mutual funds market remain under pressure in August

[13] OTE seeks to gain majority holding in Romtelecom

[14] Sounding out business links between Greece and France

[15] ASE follows international markets lower on Wednesday

[16] ATHOC president says September 5 a day of celebration and sorrow

[17] Drive for Thessaloniki to host EU summit

[18] Conference on human rights, terrorism to be held at Ancient Olympia

[19] Three illegal migrants drown in Kyparissia, 31 intercepted

[20] La Patrouille de France to perform at the 67th Int'l Thessaloniki Fair

[21] President Clerides arrives in Paris for meeting with UN Chief

[22] Political parties hope core issues will be discussed in Paris

[23] US envoy sees great opportunity to solve Cyprus problem

[01] FM meets UN chief, discusses Cyprus, Iraq

JOHANNESBURG 05/09/2002 (ANA)

The meeting focused mainly on the Cyprus problem, in view of Annan's meeting with Cyprus President Glafcos Clerides and Turkish-Cypriot leader Rauf Denktash in Paris on Friday.

According to sources, Annan said that the main goal of Friday's meeting was to preserve the momentum of direct talks between the two communities on the island and give the process a new thrust.

The same sources said that the UN chief did not intend to present an overall solution for the Cyprus issue in Paris because of the delicate pre-election phase in Turkey that precluded any substantial progress and also because he wanted to first assess the conclusions of the Paris meeting.

On his part, Papandreou pointed out the constructive stance of the Greek-Cypriot side and stressed the need for substantial steps from the Turkish-Cypriot and Turkish side.

Both Papandreou and Annan agreed, however, that particular care was needed to avoid making the Cyprus problem a major issue in the Turkish pre-electoral race since this would encourage extreme positions and further reinforce nationalist tendencies.

The Greek minister informed Annan that Cyprus was still progressing normally toward joining the European Union, probably during the EU summit in Copenhagen. He also reiterated that Greece genuinely supported Turkey�s European prospects and believed that the issue of starting accession negotiations should be left open.

The two men then discussed Iraq, where the UN secretary-general underlined that UN decisions had to be respected. Papandreou said that Greece wanted all avenues for finding a political solution that ensured respect for UN decisions explored.

Annan told Papandreou that he had contacted Iraqi Deputy Prime Minister Tareq Aziz, who said that Iraq was willing to accept an inspectorate but continued to have reservations about whether it would be objective or whether it would act on instructions from the United States.

Finally, the two men discussed the situation in the Middle East and Papandreou briefed Annan regarding the talks on the issue held by the informal EU foreign ministers council a few days before.

Regarding relations between the US and the EU, the noted the need to overcome the current negative climate. Regarding EU relations with the UN, Papandreou said that the Greek EU presidency aimed to promote and enhance cooperation between them.

[02] PM briefs President on domestic and foreign policy issues, economy

Athens, 05/09/2002 (ANA)

Much of the meeting was taken up with Tuesday's market boycott by consumers, which Simitis said was unprecedented for Greece. He also said that the government supported the consumer movement and noted that fighting inflation was linked with people's psychology and that consumers had to learn to control prices.

Stephanopoulos said that the boycott should perhaps be limited to the more expensive products, noting that the public did not seem to fully appreciate the value of the euro and was too ready to part with it.

The meeting also discussed the overall state of the economy, in view of the Thessaloniki International Fair and the prime minister's annual economic speech.

Simitis said the government intended to carry out two reforms - one for social insurance and the other in taxation. Regarding the measures announced on Tuesday, he said these would make the tax system more equitable and help redistribute incomes.

Regarding inflation, Simitis said that this did not cast a shadow on the overall picture of the Greek economy, which was making dynamic progress and showed rapid growth.

[03] PM chairs meeting on TIF; Laliotis on Athens flooding

Athens, 05/09/2002 (ANA)

Afterwards, ruling PASOK Secretary Costas Laliotis, who also attended the meeting, commented on state services� reaction on Tuesday to the third straight instance of flooding on the Kifissos River in Athens over the past month and a half.

Laliotis, the former town planning and public works minister, agreed with widespread criticism that state services� response was problematic, �that�s why responsibilities exist�, he noted.

Other participants at the meeting included Culture Minister Evangelos Venizelos, Deputy FM Yiannis Magriotis and Deputy Education Minister Nikos Gesoulis, all of who are elected from northern Greece election districts.

[04] Gov't grapples for answers as Athens hit by 3rd major flood in 45 days

Athens, 05/09/2002 (ANA)

At the same time, Environment and Public Works Minister Vasso Papandreou was in an emergency meeting at her ministry in order to analyze the reasons for Tuesday's embarrassing debacle and the total failure of anti-flooding measures instituted after the river had flooded in August.

By the river, meanwhile, traffic was restored on Kifissos road and Pireos street, while workmen from the Moschato and Rendi municipalities were out cleaning the roads that ran alongside the flooded river. Army troops and fire fighters also remained on call nearby, as the weather service warned of more rain to come on Wednesday afternoon.

The fire department said it had responded to all 331 calls for help and only a small number of homes and shops were still under water by early on Wednesday morning. It said that water had been pumped from 101 houses and basements in the Moschato area alone and 15 in Neo Faliro, while 27 calls had been made from areas on the west side of the river, such as Rendi, Keratsini, Kaminia and Korydallos.

Emerging from the environment ministry meeting on Wednesday morning, Deputy Environment Minister Yiannis Tsaklidis expressed his sorrow for the third-time flood victims, saying that "words were too poor" for what had happened.

He announced that additional measures would be taken to contain the river water, such as the installation of permanent metal doors on bridges across the Kifissos that could close within two minutes, bolstered by sandbags so that the force of the water would not break them. It was also decided that the bridge at Lambros Kotsonis Street that links Moschato and Neo Faliro would be knocked down immediately.

A further measure decided was to replace railings on bridges where problems occurred with new ones that could be quickly removed and replaced.

Also present at the meeting were the three firms of contractors in charge of works for widening the Kifissos, who were instructed to have staff and machinery on call on a 24-hour basis to deal with any emergency problems that might arise.

Tsaklidis exonerated the contractors completely for Tuesday's flood, blaming the Civil Protection Agency for not placing sandbags on the two bridges where the floods occurred on time.

He said the measures decided after the floods of August 18 had been adequate and had all been taken, apart from the placing of sandbags on the two bridges, which was the job of the Civil Protection agency.

Tsaklidis said he had contacted the Civil Protection Agency personally at 18:45 on Tuesday and was told that they had scaled down emergency measures after being told by the weather service that the conditions expected were not extreme.

He said that the environment minister had warned contractors that "heads would roll" if any responsibility on their part or any construction defects were discovered.

Main opposition New Democracy was not slow to make the most of the government's discomfiture, with ND spokesman Theodoros Roussopoulos noting that this was the third time that the river had flooded in 45 days and that the state under PASOK, ''only worked when it was sunny.'' He also accused the government of ''criminal actions and omissions that could not be washed away by any amount of rain''.

Roussopoulos was strongly critical of Interior Minister Costas Skandalidis, saying that he could not duck his responsibilities by asking for the resignation of the chief of the Civil Protection agency, especially when the former police chief chosen to replace him was burdened with the Niovis street fiasco (when a hostage died through a bungled police rescue) and the escape of Costas Passaris.

Finally, he called for an integrated flood protection system for Attica, saying that Greek citizens could no longer tolerate a situation where one third of Attica was inundated by muddy water every time it rained.

Three flood-stricken districts to stage road protest on Thurs.: The mayors of three flood-stricken Piraeus municipalities announced on Wednesday that they will block a main thoroughfare running through their districts in protest over what they charge is deficient anti-flooding protection along the Kifissos River, the greater Athens area�s primary floodway.

The usually dry Kifissos overflowed its stone and concrete-line banks three times over the past month and a half following an equal number of summer rainstorms, with the latest instance on Tuesday. Hundreds of residences and businesses have been flooded on all three occasions.

The mayors of Piraeus, Greece�s largest port city, as well as the working-class districts of Rendi and Moschato again warned that they will block Kifissias avenue, major north-south traffic artery that runs along the sides of the river.

(Statements following top government meeting on the flooding pending)

[05] 'No issue' regarding religious education classes, gov't says

Athens, 05/09/2002 (ANA)

''Religious education is taught as usual and the exemptions to students of other religions and dogmas are in force,'' the spokesman said and referred reporters to the announcements made by Education Minister Petros Efthymiou.

He was responding to questions regarding the personal data protection authority's call to abolish the record of a student's religion on high school diplomas and to alter the form by which parent sought to have their child exempted from religious education classes so that they did not have to state their religious beliefs.

Protopapas said the authority's initiative was an attempt to interpret laws on the protection of individual rights.

''Politically, the issue is closed. Constitutionally and legally it is being examined,'' he said.

Main opposition New Democracy expressed its disagreement with the authority's recommendations earlier on Wednesday, however, saying that educational policy was a matter for the government to decide.

''If the government wants to make changes it should have the courage to bring them to Parliament and not hide behind Mr. Dafermos (the head of the personal data protection authority),'' ND spokesman Theodoros Roussopoulos told reporters.

[06] Authorities in N17 probe report questioning of unidentified woman

Athens, 05/09/2002 (ANA)

No arrests were announced, however, as authorities warned that acquaintance with one or more N17 suspects does not qualify as a crime. Moreover, no incriminating evidence has so far turned up against the woman, reports state.

Additionally, checks of two personal computers and disks �belonging to Alexandros Giotopoulos and Patroklos Tselentis, respectively � reportedly failed to yield any N17-linked evidence. Both men are charged with numerous felony counts, with the former denying any connection to N17 and the latter confessing to a series of crimes.

Finally, authorities again stressed that they believe Dimitris Koufodinas, N17�s reputed �operations chief� and a top assassin, remains in hiding somewhere in Greece.

[07] Former minister sues Karatzaferis for alleging he had links with N17

Athens, 05/09/2002 (ANA)

Tsouras said Karatzaferis made the claims on television and in interviews with the Athens dailies ''Apogevmatini'' and ''Chora''.

Tsouras is also suing for defamation over Karatzaferis' allegations that he was harboring terrorists and that his fingerprints were found in a house owned by suspected "November 17" leader Alexandros Giotopoulos.

Another claim made by the independent MP was that wanted terrorist Dimitris Koufodinas had been caught by police on the night that Savvas Xiros was injured but was "spirited away" by a special intelligence service branch run by Tsouras and a former intelligence service chief.

Tsouras has also asked that Karatzaferis be forbidden from making any defamatory reference to his person, while a hearing for the case was set for January 2004.

The former minister said that he would donate any compensation he was awarded to UNICEF.

[08] Minister on Greece's negotiations on future of EU agriculture

Athens, 05/09/2002 (ANA)

Speaking in Larissa, central Greece, Papantoniou conveyed Prime Minister Costas Simitis' assurance that he would personally assume the political burden of Greece's negotiations with the competent European bodies. At the same time he stressed that the government will exhaust all means at its disposal.

Following a meeting he had with deputies and members of the Prefectural Committee of ruling PASOK, the minister said that although Greece's battle is tough within the framework of enlargement, he was optimistic of a positive outcome. He observed that Greece would also have allies the countries of the south.

[09] Interior minister addresses conference on immigration policy

Athens, 05/09/2002 (ANA)

Speaking at a conference on immigration policy held at a central Athens hotel, Skandalidis said that residence visas would be also extended beyond 1 January 2003, however, applicants should timely submit the required documents two months prior.

From now on all legal immigrants in Greece will be granted residence permits in a uniform format, resembling stickers affixed to their traveling documents, in compliance with the new EU regulation, the minister said. Ex-officio removal from the �undesirables� list is also foreseen for cases that exclusively pertained to administrative deportation, provided that expulsion was based on events that took place at a time preceding the issuing of the residence permit, he added.

Furthermore, the action plan developed for immigration in Greece by the Ministry of Internal Affairs Public Administration and Decentralization (YPESDA), for the period 2002-2006 foresees the establishment of information centers for Greeks to combat racism, the establishment of information centers for immigrants at border stations, the establishment of an advisory information service on issues pertaining to labor health and training, as well as the establishment of immigrants-reception offices at a municipality level for issues such as family unification and labor market, the minister concluded.

[10] SEB says tax reform plan moving in the right direction

Athens, 05/09/2002 (ANA)

Speaking to reporters, after a meeting with Development Minister Akis Tsohatzopoulos to discuss domestic prices, Mr. Kyriakopoulos noted that were still monopolies in the market that led price higher, while he said that services were having the biggest impact on an increased inflation rate in the country.

"It is a mistake to call for the government to contain prices. State interventions should be focusing on moves to facilitate competition in the market and to constantly inform consumers," the Greek industrialist said.

Kyriakopoulos said that were cases of profiteering in the market that should be combated, although he noted that Greek companies' gross profit shrunk by 1.2 percent along with a reduction of their operating profit margins, figures that showed that the higher cost did not translate into higher prices in the market.

Development Minister Akis Tsohatzopoulos said that a third tax reform package would help in the reduction of cost for small- and medium-sized companies and urged for "joint actions to help markets operate within a competitive environment."

[11] Commerce, industry say tax reform package inadequate

Athens, 05/09/2002 (ANA)

Speaking to reporters, during a new conference, EBEA's chairman Drakoulis Fountoukakos, said that the measures for businesses were moving more towards the simplification of tax system and less towards reducing taxes.

Mr. Fountoukakos noted that a negative point in the government's latest package of tax reform measures was that it did not include a reduction of the top tax factor for businesses.

He welcomed, however, a decision to raising the tax-free level for families with three children or more to 20,000 euros as a move that could boost the country's demographic condition.

[12] Greek mutual funds market remain under pressure in August

Athens, 05/09/2002 (ANA)

A monthly report by the Union of Greek Institutional Investors said that the average return of domestic equity mutual funds was -14.01 percent in the January-August period, foreign equity funds' returns was -22.24 percent and international equity funds' returns -25.54 percent.

The average return of domestic combined mutual funds was -7.11 percent, foreign combined funds returned -14.78 percent and international combined funds' return was -8.68 percent.

Money market mutual funds and bond mutual funds, however, showed positive returns in the first eight months of 2002. Domestic money market funds returned an average 1.60 percent for far this year, foreign money funds returned 1.83 percent, while international money funds returned -1.83 percent.

Domestic bond mutual funds showed an average return of 2.83 percent, foreign bond funds yielded 0.56 percent and international bond funds returned -0.24 percent.

Greece's mutual funds total assets fell to 22.82 billion euros in August, from 22.86 billion euros in July.

Money market mutual funds recorded inflows of 241.76 million euros in August, counterbalancing outflows in the bond, equity and combined mutual funds categories over the same period.

Domestic equity mutual funds recorded outflows of 151.06 million euros in August, domestic combined funds' outflows totalled 65.66 million euros and domestic bond funds outflows totalled 40.87 million euros.

Bond and money market mutual funds showed their market shares rise by 0.05 percent and 0.26 percent in August, while equity and combined funds' market shares fell by 0.07 percent and 0.26 percent, respectively.

[13] OTE seeks to gain majority holding in Romtelecom

Athens, 05/09/2002 (ANA)

The Romanian side has appointed Salomon Brothers to provide a valuation of Romtelecom, Antonakopoulos told a news conference in Thessaloniki.

[14] Sounding out business links between Greece and France

Athens, 05/09/2002 (ANA)

Due to launch the meeting in the northern port city of Thessaloniki are Development Minister Akis Tsohatzopoulos and France's ambassador to Greece.

The event is part of the two-week Thessaloniki International Trade Fair, which begins on September 7. France is this year's featured country.

[15] ASE follows international markets lower on Wednesday

Athens, 05/09/2002 (ANA)

The general index broke the 2,100-point support level to end at 2,086.90 points, off 0.84 percent, with turnover a low 76 million euros.

The Investment index was the only one to move higher (0.66 percent), with the Food-Beverage, Cement and Textile indices suffering the heaviest percentage losses of the day (1.91 percent, 1.61 percent and 1.36 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.93 percent, the FTSE/ASE MID 40 index ended 0.86 percent down and the FTSE/ASE SmallCap 80 index eased 0.37 percent.

Broadly, decliners led advancers by 207 to 90 with another 52 issues unchanged.

The most heavily traded stocks in value were Hellenic Telecommunications Organization, Football Pools Organization, Hitech, Public Power Corporation, and Axon.

Derivatives Market Close: Turnover at 79.9 mln euros Weds

Equity Index Futures: