Athens News Agency: Daily News Bulletin in English, 03-04-05

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

CONTENTS

[01] DM Papantoniou-UN chief Annan discuss Iraq, Cyprus - Roundup of US visit

[02] Papantoniou to conclude U.S. visit with speech at Harvard University

[03] FM briefs PM on talks with Powell on Iraq crisis and transatlantic relations

[04] Government meeting on Cyprus issue, Iraq, April EU summit

[05] Parliament pledges support to 'Doctors of the Heart' in Iraq

[06] Jerusalem Patriarchate on reports of assassination attempt

[07] Bulgarian interior minister in Athens for talks this week

[08] EU Presidency welcomes Serbia & Montenegro to Council of Europe

[09] Finance minister refers to new geopolitical setting after outbreak of Iraq war

[10] Tsohatzopoulos addresses Economist conference in Athens

[11] Saddam can't be in charge of Iraq's oil, US envoy tells 'Economist' conference

[12] Greek weekly economic review

[13] Main opposition walks out of Parliament over Finmin's absence

[14] Greek stocks end week 1.53 percent higher

[15] Municipality of Athens to organize ''International Peace Garden'' in 2004

[16] State Dept. asks Congress for funds to protect US athletes at 2004 Games

[17] First American witness testifies at 'N17' trial

[18] Two arrested over explosion at 'Corinth Pipeworks SA'

[19] International meeting in Athens on 'Immigration and Human Rights'

[20] Deputy FM Magriotis on issues concerning Greece

[21] Exhibition on Parthenon Marbles inaugurated in Paris

[22] Cyprus Government not to begin negotiations through correspondence

[23] Nothing new in second Denktash letter, says spokesman

[24] Foreign minister says Denktash trying to eliminate UN role

[01] DM Papantoniou-UN chief Annan discuss Iraq, Cyprus - Roundup of US visit

NEW YORK 07/04/2003 (ANA - P. Panagiotou)

Summarizing the outcome of his talks with senior US government officials and the UN chief at a press conference later, Papantoniou, whose country currently holds the rotating EU presidency, said that UN involvement in post-war Iraq would pave the way for restoring the political relations between the EU and the US, adding that the United States agreed in principle to such UN involvement.

He also noted that Greece held the key to Turkey's accession to the EU, since it was ''clear to all'' that without a resolution of the Cyprus issue and the lifting of Turkey's unilateral claims in the Aegean, Greece could not possibly consent to Turkey's accession.

Papantoniou further said that the UN chief was in agreement with the view that Turkish Cypriot leader Rauf Denktash's latest proposals were ''outside every framework of international legality'' and could not comprise an object of substantive discussion between the two Cypriot sides.

On his meeting with Annan, Papantoniou said he had brought up the Iraq crisis, stressing to the UN chief ''the importance of the involvement and participation of the United Nations, which must have the primary say in the formulation of the conditions that will prevail in Iraq after the war ends''.

He set out three reasons why Greece, as an individual country but also as EU president, felt it necessary for the UN to assume a primary role.

First of all, he explained, legitimization of the regime that will arise after the war presupposed the participation and support of the UN, as that would be the only way the regime would have recognition and acceptance not only from the people of Iraq but also the countries with which it bordered.

Second, expansion of the circle of countries that will support the new regime was of critical importance for the flow and ensurance of adequate humanitarian aid, and economic aid more generally, as well as for the political support that would be required by the new regime in order for it to take root and be able to lead Iraq on the road of democracy and prosperity, Papantoniou continued.

Third, he said, UN involvement would ''open the door'' for restoration of the political relations between the EU and the US, which have been upset.

Papantoniou explained that the crux of the disagreement between Europe and the US in recent months was over the UN's role on issues of security, defense, stability and peace. This role was disputed, he said. Thus, he added, if Europe and the US agree to restore the UN's role in the formulation of the post-war regime in Iraq, then such agreement would pave the way for reconciliation and restoration of the political relations between the EU and the US.

He said the impression he had gotten from his bilateral talks with US administration representatives (US defense secretary Donald Rumsfeld, US president George Bush's national security advisor Condoleezza Rice, and others) is that ''the US agree, in principle, consent, to UN involvement in post-war Iraq''.

''It is important that the US agree to such a prospect. Naturally, it remains for the precise framework within which this participation will be ensured to be clarified and agreed with the European countries and other countries sitting on the UN Security Council,'' he said, and expressed optimism, although he conceded that ''there may be alternative views, approaches, and prospectively even some disagreements at the initial stage''.

Papantoniou said he believed that with the UN's ''return to the forefront, on an agreed basis between Europe and the US, the way will also be found for reconnection of the EU and the US in a common line for confronting such issues as terrorism and possession of weapons of mass destruction''.

Questioned on Annan's reaction, Papantoniou said ''it was affirmative, and he believes that in order for UN participation to be acceptable it must be of substance, and not simply a 'seal', that there be substantive UN participation in the formulation of the political and other conditions that will prevail in Iraq after the end of the war''.

On the Cyprus issue, Papantoniou said he thanked the UN chief on behalf of the Greek government and of all of Hellenes in general ''for the very substantial efforts he has been making for years for finding a just, viable and functional solution to the Cyprus problem''. As for the collapse of the Hague negotiations ''due to Denktash's rejection, with the backing of Ankara'', he said that ''a big opportunity was lost, at least for the present, but we must look ahead, and with the Secretary General we took the discussion one step forward''.

With regard to Annan's intentions, Papantoniou said he had gotten a clear impression of the UN Chief's desire ''that his plan remains on the negotiations table for finding a just, viable and functional solution, so that when the conditions are ripe -- soon, we hope -- the Annan plan will remain the basis for negotiation''.

On his meetings in Washington with Rumsfeld, Rice, Congressmen and other officials, Papantoniou pointed to the appropriate timing of the talks, given Greece's current presidency of the EU, but chiefly since they had come at a time when ''the country with which we have the most problems, Turkey, has lately behaved in an irresponsible way which highlights the dangers that attitude entails for the stability of the region that surrounds us, the region of SE Europe and the SE Mediterranean''.

With respect to Turkey's role, ''a type of attitude that we Greeks have known for many decades'', he said ''we witnessed it and are witnessing it in the Cyprus issue and the continuing occupation, we witness it daily in the Aegean and Turkey's persistence with one-sided claims at the expense of Greece's national sovereign rights, claims that are highlighted by tens of violations of our national airspace by the Turkish Airforce''.

''In general, Turkey does not manifest the required respect to internationally-accepted rules of behavior, which are the rules of international law and international legality,'' Papantoniou continued.

The defense minister said he told the US officials that: ''In no instance should Greece or any other country take advantage of this irresponsible attitude of Turkey to push that country aside. That is not our policy, and that should not be the policy of the international community. On the contrary Greece, particularly after 1999, after the Helsinki (EU summit) decision, but also before that, has been stretching out a hand of friendship and cooperation to Turkey, offering our support in its effort to join the EU, on condition that Turkey contributes substantively and positively to resolving the Cyprus issue, which it (Ankara) has yet to do, and that it lifts its unilateral claims at the expense of our sovereign rights in the Aegean''.

Turning to Greek-US relations, Papantoniou said he had found ''much greater understanding of our reasoning and positions'' than at any other time, which reflected on the fact that Greece today ''is supporting our national interests in a much more efficient manner in relation to any other time, at least in the recent past''.

Asked by reporters whether the US side had requested a possible dispatch of Greek troops to post-war Iraq for the consolidation of peace, he replied in the negative, and denied a press report claiming that an engineering battalion and a mobile medical unit were being prepared for dispatch to Iraq. "No, such a request was not made. Simply, we, as Greece, have stated that provided there is UN participation in post-war Iraq, our country would be willing to provide humanitarian assistance. This is the stated position of Greece, and I hope that the conditions for realizing such a mission will be examined soon," Papantoniou said.

[02] Papantoniou to conclude U.S. visit with speech at Harvard University

NEW YORK 05/04/2003 (ANA - P. Panagiotou)

He spoke on Thursday night at the Foreign Policy Association in Manhattan on the theme ''Common European Defense: Utopian Dream or Practical Possibility''.

At the end of his speech he replied to many questions, mainly on Iraq, Greece's role in the region, U.S.-European relations, the future of the Euro-army, NATO's mission, Turkey's course towards Europe and the Cyprus issue.

Among other things, he reiterated that ''the European Union seeks the assumption of a regulatory role on the part of the United Nations when the war is over in Iraq, both for the sending of humanitarian aid as well as for the reconstruction of the country.''

Referring to the national issues of Hellenism, Papantoniou reiterated that the Greek government supports Turkey's European course but called on the Turkish leadership to adjust its policy to the facts of international law and to the rules of international conduct.

Regarding the prospects for a settlement of the Cyprus issue, he appeared relatively pessimistic, stating that the only hope are the voices of the majority of the Turkish Cypriots who oppose the policy of Turkish Cypriot leader Rauf Denktash and desire the accession of the whole of Cyprus to the European Union, as well as the possibility of a change in Turkish policy in view of Ankara's effort for accession to the EU.

The Greek defense minister referred to the various assessments on the Iraqi crisis, at the same time expressing the hope that ''with a mutual understanding and cooperation, the American-European relations will again find their path, in a common line for the confrontation of problems, such as terrorism and the possession of weapons of mass destruction.''

Papantoniou later went to the Alexandros Onassis Foundation where he was given a tour of the exhibition on the New Museum of Acropolis. In a brief address to the hundreds of people present, he stressed that civilization and particularly Greek heritage constitute a shining hope for humanity.

The Greek defense minister will depart from New York on Saturday and return to Greece.

[03] FM briefs PM on talks with Powell on Iraq crisis and transatlantic relations

Prime Minister Costas Simitis was briefed by Foreign Minister George Papandreou on Friday on discussions between the European Union, NATO and U.S. Secretary of State Colin Powell on the Iraq crisis and transatlantic relations in which he participated.

Papandreou later said the European Union expressed its concern and skepticism to Powell regarding the managing of the crisis with Iraq ''with the specific targets being promoting the role of the UN and the need to resolve the Middle East issue. Namely, the peace process, or otherwise the road map anticipating the creation of a Palestinian state by 2005.''

The foreign minister said relations with the Arab world were also discussed with Powell, adding that the crisis with Iraq cannot be the cause for a clash between civilizations but, on the contrary, ''there should be a dialogue between civilizations and on this point Europe and the Greek presidency have undertaken initiatives in this direction.''

On the question of transatlantic relations, Papandreou ''we must now discuss in a clear way, in an open way with the United States and clarify as equal parties, with mutual respect, international reality, the role of the UN and the issues of weapons of mass destruction, as well as the major issues of humanity, such as poverty, inequality and the environment are.''

He added that in this context ''we must even examine special issues such as that of the doctrine of pre-emptive strikes, issues which have created great skepticism among Europeans.''

Papandreou said the Greek presidency will undertake to process these positions in the EU and at the EU-U.S. summit, at the summit with U.S. President George W. Bush and Simitis in Washington on June 25.

Asked to comment on what a refusal by the U.S. to accept a strengthened role by the UN will mean, Papandreou said ''it is still early for us to diagnose the specific situation which will result after the war. We do not know what the outcome of the war will be and how the situation will be shaped after the outcome'', adding that the U.S. secretary of state ''sees a considerable role for the UN.''

Responding to another question on whether there will be a flare-up in the wider region, Papandreou reiterated that no one knows what the outcome of the war will be.

Referring to reports on an assassination plan against Jerusalem Patriarch Eirinaios, Papandreou said ''I have no comment to make. We are also probing the issue on our part, or should I say we are being informed, but I have no specific comment on this issue because there are also some legal and judicial aspects which have not yet been clarified.''

Foreign ministry meeting focuses on coordinating aid effort for Iraq

A meeting to better coordinate humanitarian aid efforts for Iraq took place at the Greek foreign ministry on Friday between the ministry's leadership, local government officials and representatives of non-governmental organizations.

Greek Foreign Minister George Papandreou, currently head of the EU foreign ministers' council, and Deputy Foreign Minister for developmental and humanitarian aid issues Andreas Loverdos both stressed the importance of coordination in order to make best use of the donations offered by the Greek public and government.

Papandreou stressed that Greece had made every effort, both as EU presidency and as a government, to avert the war in Iraq, while noting that the Greek presidency would also be handling European humanitarian aid to Iraq and other areas.

The EU contribution in this direction totalled 100 million euros, with Greece contributing 4 million euros, Papandreou noted. This sum could be increased if necessary, while a sizeable and touching contribution had been made by the Greek public, the minister said.

He also stressed the need to involve the United Nations in Iraq so as it could assert the power of law and international legality, something also stressed by the Greek presidency.

While admitting that the EU was going through a critical phase, Papandreou pointed out that the resulting peace movement had highlighted two issues: international law and the power of the United Nations and the need for Europe to have a single voice.

Responding to questions regarding security during the distribution of humanitarian aid, he said that Greece was working with U.N. bodies on distribution issues for reasons of guarantee.

Loverdos said that Greece had also sent a cheque for one million euros to the United Nations for the humanitarian aid effort and the foreign ministry had approved the proposals of 10 NGOs for humanitarian aid to Iraq amounting to 3 million euros.

He urged NGOs to encourage the general public to make cash donations rather than donations in goods and kind, since storage and transportation costs were huge.

The food and medicines already in storage would take place in an organized fashion, with the first consignment due out on Saturday on a C-130 military transport plane. He said this would cost 40,000 euros.

If it was decided to bring refugees to Europe, then the EU would ensure that their hospitality would be equitably divided until they returned to their country, Papandreou said, while stressing that Europe's goals was to create refugee camps in the surrounding areas.

[04] Government meeting on Cyprus issue, Iraq, April EU summit

All the sides involved in the Cyprus issue should demonstrate their desire for a solution to the political problem that was not bilateral but within the framework of the United Nations, a government meeting chaired by Prime Minister Costas Simitis reaffirmed on Friday.

Apart from the Cyprus issue, the meeting also tackled other major international issues, such as developments in Iraq and the upcoming European Union summit on April 16 for the signature of acts of accession by new members of the Community, especially security issues and related concerns.

As he left the meeting, Greek Foreign Minister George Papandreou said the gathered ministers had reaffirmed Greece's desire, as a guarantor power, for a solution to the Cyprus problem, while he expressed support for the efforts of the U.N. and for the peace plan presented by U.N. Secretary General Kofi Annan as a basis for negotiations.

Asked about his recent meeting with United States Secretary of State Colin Powell and the latter's apparent refusal to accept a U.N. role in post-war Iraq, Papandreou said that Powell had in fact spoken about an important role for the U.N. but without going into details.

"We have to wait for the developments," he told reporters, without ruling out the possibility that Europeans and the U.S. would finally reach an agreement.

Regarding the EU summit, Papandreou said the signature of the EU enlargement treaty would be a historic moment and a strong message for peace at this time.

[05] Parliament pledges support to 'Doctors of the Heart' in Iraq

Parliament Speaker Apostolos Kaklamanis on Friday pledged Parliament's support for the 'Doctors of the Heart' aid organization, which has recently returned from a mission to deliver medical supplies to Baghdad.

Doctors that returned from the mission described their experiences in the war-battered city and the courage shown by ordinary Iraqis in a meeting with Kaklamanis, a Parliament press release said.

Parliament will be contributing to the next mission by the organization to bring medical supplies to the warzone and help the injured.

[06] Jerusalem Patriarchate on reports of assassination attempt

Jerusalem Patriarch Irineos on Friday denied reports that an attempt was made against his life, although a statement issued by the Patriarchate�s office here noted that a suspect in the West Bank has reportedly confessed to planning an assassination against the highest-ranking Orthodox ecclesiastical official in the Holy Land.

In a written statement, the Jerusalem Patriarchate�s Athens bureau noted that a Palestinian man reportedly told Palestinian security forces this week that he was planning to murder Irineos after being hired by an unnamed individual from within the Patriarchate.

The statement notes that an investigation is continuing, with Irineos �following developments with particular attention and absolute trust in both the Palestinian and Israeli authorities, as well as the Greek Orthodox clergymen that serve at the Jerusalem Patriarchate�.

[07] Bulgarian interior minister in Athens for talks this week

Greek Public Order Minister Mihalis Chrysohoidis is expected to meet with Bulgarian Interior Minister Georgi Petkanov during the latter�s visit here this week.

Topics up for discussion include Bulgaria�s harmonization with the Union�s acquis communautaire vis-a-vis the justice and internal affairs sectors; bilateral cooperation in cross-border issues; cooperation on issues of political asylum and migration, as well as cooperation in major sporting events, such as the Olympics.

[08] EU Presidency welcomes Serbia & Montenegro to Council of Europe

The European Union welcomes the admission of Serbia and Montenegro to the Council of Europe, believing it is a significant step towards the country�s approach to European institutions, the EU Presidency said in a statement on Friday.

The Presidency on behalf of the European Union stressed that the admission of Serbia and Montenegro to the CoE would enhance domestic and regional stability and cooperation.

It would further consolidate democracy, human rights and the state of justice in that country, contributing to its European prospects, as well as the prospects of the western Balkans region.

In addition, the EU Presidency noted in satisfaction the decisiveness exhibited by Serbia and Montenegro in fully observing all the responsibilities and commitments emanating from its participation in the Council of Europe to the benefit of its people.

[09] Finance minister refers to new geopolitical setting after outbreak of Iraq war

Finance and Economy Minister and Council President Nikos Christodoulakis, speaking at a press conference at the end of the first day of the informal ECOFIN Council on Friday, referred to the new geopolitical setting being created, after the outbreak of war in Iraq, saying in his opinion its result is difficult to predict, as well as to the prolonged undermining of investors and consumers confidence and continuing economic instability which is lasting longer than had been expected.

Referring to the fiscal deficits of the United States, he said Europe does not intend to intervene since it is a domestic issue, but it is concerned, of course, over this development.

European Economic and Monetary Affairs Commissioner Pedro Solbes spoke on his part of 1 per cent growth in the eurozone during the current year, as well as of a percentage nearing 2.25 next year, based on assessments by the European Commission.

[10] Tsohatzopoulos addresses Economist conference in Athens

Development Minister Akis Tsohatzopoulos on Friday addressed the Economist Group conference here in Athens, stressing that the new political reality brings to the surface the need for the adjustment of the relations between the European Union and the United States to the new conditions.

''No one can doubt the leading role of the United States of America in international politics, nor the need for close cooperation between the two shores of the Atlantic,'' Tsohatzopoulos said, adding ''Europe today, as much as never before, needs the strengthening of its parity in its relations with the U.S. This, however, means that the European Union should be in a position to undertake more burdens and to develop the autonomous ability to play an active role in the developments of the old world, as well as the world in general''.

''Historically parity is not given for free, it is established on the basis of the promotion of the European unification and has as a precondition the political will of most of the members of the EU to bond their institutional relations in a supra-national and federal direction,'' he said, adding that the ''European course demands the greatest possible political unification, on the basis of the function of equitant cycles of unified function on the level of the European Union."

Speaking of the war in Iraq, Tsohatzopoulos said that the ''war could have been avoided," underlining the ''mandatory obligation of the United Nations after the peace in the region,'' and stressing that ''the peoples of the region will suffer the effects of the changes in the region thus we have the right of say, for what will transpire after the wars are over."

The Greek minister also spoke of his meeting with Former Yugoslav Republic of Macedonia (FYROM) Prime Minister Branco Crvenkovski and their talks on cooperation between the to countries in the sectors of energy and water resources.

[11] Saddam can't be in charge of Iraq's oil, US envoy tells 'Economist' conference

Control of Iraq's energy resources had to be wrested from Saddam Hussein's regime, though they remained the property of the Iraqi people, United States Ambassador to Athens Thomas Miller on Friday told the 7th 'government roundtable' organized by the Economist magazine in the Athens.

The envoy's address to the conference was brief, lasting less than 10 minutes, after which he departed without taking questions.

Miller's speech focused mainly on U.S. energy policy in Asia and Eastern Europe, while he praised initiatives taken by the Greek government and the Greek EU presidency for dealing with Balkans energy issues in the long-term.

''I congratulate the Greek government and especially Development Minister Akis Tsohatzopoulos for his far-sighted vision to make Greece an energy hub,'' Miller said.

Miller came out in favor of finding alternative routes for transporting oil and natural gas and stressed that political stability in the countries that such pipelines passed through was vital.

He also underlined his government's particular emphasis on finding alternative, environment-friendly energy sources.

[12] Greek weekly economic review

The international and the Greek financial markets searched for directions in the week under review, following the news from an ongoing war in Iraq. News supporting a quick end to the war helped markets to end with significant gains in the week. At the same time, the European Central Bank did not surprise markets leaving its interest rates unchanged awaiting for more clear evidence of any impact on the world economy by the war in Iraq.

In other headline news, National Bank of Greece governor Theodore Karatzas said there was no concern over the condition of the domestic banking system. Speaking to reporters, after a meeting with Economy and Finance Minister Nikos Christodoulakis, Mr Karatzas stressed that there were not signs of delaying loan repayments or limiting demand for loans. The Greek banker noted that markets were suffering from a "condition of reverse exuberance" after the euphoria in 1999.

The majority of Greek mutual funds were reporting negative or very low returns for the first quarter of 2003, hit by a significant decline in bond mutual funds. Domestic equity funds are falling for three-and-a-half years inflicting heavy losses to investors in the category. Domestic bond funds' average return so far this year was 1.24 percent at the end of March, money management funds returned 0.57 percent, domestic equity funds returned -12.94 percent and domestic combined funds returned -5.06 percent. Greek tourism authorities reiterated that a promotion campaign in foreign markets would begin in May regardless of the outcome of the war in Iraq. Greece's National Tourism Organization�s chairman, Yiannis Patellis, stressed that Greek tourism could benefit from a wave of cancellations hitting Egypt and Turkey. Travel reservations from Britain and Germany (the two biggest markets of Greek tourism) were down so far this year, while reservations were up from France and Belgium.

The Bank of Piraeus plans to expand its branch network in Greece and abroad by maintaining an annual growth rate of 20 percent this year, its chairman, Mihalis Sallas said in the week. Mr Sallas sounded optimistic saying that uncertainties related with the economy and the war in Iraq would gradually recede and noted that the bank was planning to open 20 new branches in Attica, annually for the next three years, and to open at least 12 new branches in the Balkans in 2003.

Athens Water announced it was raising its consumer bills by 2.5 percent.

Greece's wholesale prices' index rose 2.6 percent in February, compared with the same month last year, down from 3.6 percent and 3.2 percent in February 2002 and February 2001, respectively, the National Statistics Service said in the week.

Greece's ordinary budget revenues rose 9.6 percent in the first two months of the year compared with the same period in 2002, while primary spending jumped 24.4 percent over the same period.

Greece's Purchasing Managers' Index (PMI), measuring activity in the manufacturing sector, fell to 47.5 points in March, below the 50 point reading separating growth and shrinkage in the sector.

EFG Eurobank Ergasias announced the purchase of a 68.06 percent equity stake in Serbian bank Postbanka AD. The Greek bank said it would seek a share capital increase plan, worth 10 million euros, in the Serbian bank.

[13] Main opposition walks out of Parliament over Finmin's absence

Main opposition New Democracy MPs on Friday walked out of Parliament in protest over the absence of Finance Minister Nikos Christodoulakis, who was not there to answer opposition questions regarding the economy.

ND accused Christodoulakis of avoiding confrontation and walked out before they had even put their question.

Deputy Economy Minister George Floridis, who was representing the government, criticized the main opposition's stance and said that Christodoulakis was unavoidably detained due to the presence in Athens of his European Union counterparts.

[14] Greek stocks end week 1.53 percent higher

Greek stocks ended the week with solid gains supported by the strengthening view that the war in Iraq was entering its last stages.

The general index jumped 1.52 percent to end at 1,541.12 points, with turnover a low 84.1 million euros. The index ended the week with a net gain of 1.53 percent.

The Bank, IT, Publication, Investment and Holding sectors scored the biggest percentage gains of the day (3.34 percent, 3.02 percent, 2.86 percent, 2.78 percent and 2.32 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 2.05 percent, the FTSE/ASE MID 40 index ended 1.16 percent higher, the FTSE/ASE SmallCap 80 index ended 1.47 percent up and the FTSE/ASE 140 index rose 1.83 percent.

Broadly, advancers led decliners by 248 to 62 with another 52 issues unchanged.

Derivatives Market Close: Turnover at 84.2 mln euros Friday

Equity Index Futures: