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

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

CONTENTS

[01] Informal EU Council of Foreign Ministers examines Middle East and Iraq

[02] EU FMs meet in Rhodes Greece, discuss Mideast 'road map' to peace

[03] FM: Europe should develop external strategy as equal US partner

[04] Greek EU Presidency presents texts on Iraq and common EU defense policy

[05] EU presidency, executive make joint proposal for EU-Turkey dialogue

[06] EU-Japan summit concludes in Athens

[07] EU Commission welcomes Cyprus government measures for Turkish Cypriots

[08] Greek minister Venizelos on latest Cyprus developments

[09] Justice minister Petsalnikos meets Hungarian, Slovenian counterparts

[10] EU environment ministers to meet for talks on May 2-3

[11] Karamanlis to depart for Brussels for EPP meeting

[12] Minister of State sues 'Avriani', Kouris for slander

[13] Coalition leader says gov't has exhausted its momentum, has mind on elections

[14] Protest over environmental impact of war during EU ministers' meeting

[15] New public order deputy minister named

[16] Greek EU presidency: the promotion of a common EU tourist policy is key target

[17] Greek tourism to improve this year, Development minister

[18] Main opposition seeks off-the-agenda debate on economy

[19] Greece seeks EU financial support for natural disasters

[20] ASE breaks above 1,700 level on Friday

[21] Witnesses identify N17 suspects as culprits in bank robberies

[22] Palacio�s response touches on Greek road safety

[23] Greek-owned ship sinks in collision with Spanish freighter, crew safe

[24] Press minister issues statement in light of int'l press day

[25] ND leader Karamanlis tours Cephalonia, Ithaki

[26] Journalists Union says Iraq war, war on terrorism created new dangers

[27] Verelis speaks at information society conference

[28] PM to address 29th COSAC Conference in Athens on Monday

[29] European Day cultural events to be held in Athens on 8,9 May

[30] Greek warship replaces sister ship in NATO flotilla

[31] FM Iacovou says Europeans dismiss Denktash's positions

[32] Government says Turkish side following developments

[33] Government brands 'arrests' of Greek Cypriots in occupied areas 'illegal'

[34] Spokesman says Turkey's latest move merely machinations

[01] Informal EU Council of Foreign Ministers examines Middle East and Iraq

Athens, 03/05/2003 (ANA)

In a press conference jointly addressed by Foreign Minister and Council of Foreign Ministers President George Papandreou, European Union High Commissioner for Common Foreign and Defense Policy Javier Solana and Foreign Policy Com-missioner Chris Patten, the first meeting between the 25 foreign ministers was hailed and the Council's informal nature was stressed that does not allow for official decisions.

On the question of Iraq's reconstruction process, Papandreou spoke of two common positions in the EU's ranks concerning the next steps to be taken and the need for the UN to issue a mandate on the legalization of the transitional status in Baghdad.

''We gave Mr. Patten the green light to prepare the humanitarian aid issues and the role of the European Union in the effort for the reconstruction of Iraq,'' Papandreou said.

The foreign minister added that on the part of the ''25'' there is the intention of their charge d�Affaires' returning to Baghdad, while Solana has undertaken the processing and preparation of proposals on shaping European strategy in the region to enable them to be presented at the European summit in Thessaloniki.

Replying to a question on the political symbolism of the foreign ministers' visit to the city of Kas, on the Turkish coast, on Saturday, Papandreou referred to ''falling walls, just as we are seeing walls falling in Cyprus as well these days.''

''The Greek islands face Turkey. There was intense trade activity between the two sides once upon a time. This activity can start again. This symbolism will be promoted in particular with our visit tomorrow,'' he added.

Referring to the discussion on common European defense, Solana spoke of a ''very useful exercise'' that will help the EU which is not a military power.

''The moment is suitable for us to begin a process to enable us to ascertain how and what we can do in this sector and if we can also agree on a certain text,'' he said.

EU FMs examine return of diplomatic missions to Iraq: The European Union is examining the issue of the return of their diplomatic missions to Baghdad as one of the first steps the Union is considering following the war in Iraq.

Following the meetings of the European Union's foreign ministers' council in Rhodes on Friday, Greek Foreign Minister George Papandreou, who is presiding over the council, said, during a press conference, that the issue was tabled as an ''in principle relevant intention'' of the member-states.

British Foreign Minister Jack Straw spoke of ''consent within the European Union for the return of the European ambassadors to Baghdad as soon as possible''.

It was not clarified; however, whether for the return of the diplomats would require the precondition of a mandate by the United Nations recognizing the provisional administration of Iraq.

[02] EU FMs meet in Rhodes Greece, discuss Mideast 'road map' to peace

Athens, 03/05/2003 (ANA)

During the first day of their meetings in Rhodes, Greece, in the framework of the Greek EU presidency, the ministers discussed the issue and stressed the necessity for adherence to the ''road map'' to peace.

According to Greek EU presidency sources, Greek Foreign Minister George Papandreou, who is presiding over the meeting, called the ''map'' a ''historic moment'' for the European Union and noted that ''it proves the fact that the European Union does not only have deficits and failures in its foreign policy, but bright moments of success as well''.

Papandreou welcomed the appointment of Abu Mazen and that of his cabinet, while commenting on criticism over Yasser Arafat's meddling in the appointment process, he said that ''Arafat is a historic figure and a necessary player in the peace process. Any effort to downgrade him would damage the peace process itself''.

''The European Union is over and above dilemmas whether the Union should discuss with Arafat or not,'' Papandreou stressed.

On his part, European Union High Representative for Foreign and Defense Affairs Javier Solana said that ''Europe should now work to exploit the happy circumstance of the 'road map' and move on toward its implementation''.

''The European Union should exert pressure toward the Israelis, so as to accept the map without terms and conditions. The map is not subject to changes. At the same time the Palestinians, however, should work toward controlling the extremist groups,'' Solana said.

German Foreign Minister Joschka Fischer requested that all tools at the disposal of the European Union be used so as to take advantage of the opportunity of the road map and so that the effort will not be undermined, stressing that if this issue is tabled for another time it would mean a strategic defeat.

On his part, French Foreign Minister Dominique de Villepin noted the necessity for the economic support of the Palestinians in their effort to create infrastructure and asked that the new prime minister of the Palestinian Authority be supported.

The European Union's special envoy for the Middle East Miguel Moratinos, who is concluding his term in June, spoke of ''wrong impressions'' on the part of the Israelis concerning the European Union and its initiatives for the resolution of the Middle East problem and noted that the ''quartet is the only institution that can enforce the road map''.

[03] FM: Europe should develop external strategy as equal US partner

Athens, 03/05/2003 (ANA)

''25'' could serve as a starting point for reinforcing a single EU voice on foreign policy issues.

He also said it could mark the beginning of ''more effective EU intervention'' in international affairs.

''Our aim is to have in-depth discussions over issues that have become most crucial for the future of the European Union, such as security, defense and transatlantic relations, and not be exhausted in discussions over the wording of a text'', Papandreou said, adding that the Greek presidency was opening this difficult dialogue as take-off for higher level discussions at the Thessaloniki Council in June, as well as during the visit of Greek Prime Minister Costas Simitis in Washington in June in his capacity as the European Council President.

The Greek foreign minister acknowledged that some concerns had been expressed on the US side regarding the initiative taken by France, Germany, Belgium and Luxembourg on a common European defense, but said he did not share such concerns, thus responding indirectly to commentaries in the foreign press that viewed Gymnich as an anti-NATO meeting.

Referring to discussions on the reconstruction of Iraq, Papandreou said this was a ''major issue that had surfaced a number of other, very significant, deeper issues that the EU will eventually be called on to tackle''.

''The EU should start developing its own external relations strategy as an equal partner with the US'', he added.

[04] Greek EU Presidency presents texts on Iraq and common EU defense policy

Athens, 03/05/2003 (ANA)

The text relating to the EU�s participation in Iraq�s reconstruction, prepared jointly by the Presidency and the European Commission, reaffirms the Union�s intention to play a significant role in the political and economic reconstruction of Iraq.

It brings to the attention of the European Council some fundamental principles on maintaining that country�s territorial integrity and safeguarding a legal transitional government on the basis of international law.

The possible EU actions as recorded by the Presidency and the Commission include humanitarian aid, the day after lifting sanctions on Iraq, a likely dispatch of an EU delegation in the region to safeguard stability, dialogue with international financial institutions to settle Iraq�s debts and the return of EU member-states� diplomatic missions to Baghdad.

The text points to the extensive experience gained by the EU in dealing with similar crises in the past, such as in Kosovo, Afghanistan, etc., and underlines that the Union believes it can contribute significantly to a speedy restoration of stability in the Iraq region.

With regard to the wider region of the Middle East, the Commission and Presidency believe that the Union should utilize its ties to safeguard progress in the Israeli-Palestinian conflict by implementing the so-called ''Road Map'', as well as to help Syria and Iran strengthen their relations with Europe and promote dialogue with Turkey on common interest points in the Middle East � given the good relations existing between Ankara and Israel.

''Turkey could also assist in the peace process in Israel, as well as in safeguarding Iraq�s territorial integrity,'' says the text.

The second text presented by the EU Presidency is essentially a composition of the views held by EU member-states on the priorities of a security and external relations policy.

Such priorities relate to ''further developing a European Security and Defense Policy,'' safeguarding and making full use of EU-NATO cooperation, as well as EU foreign policy affairs in the Middle East, western Balkans, the Mediterranean, Russia, etc.

It also refers to the role of the United Nations and to the need to protect and further strengthen that role with regard to the efforts for international peace and stability and Euro-Atlantic relations, through developing dialogue and promoting a balanced relation based on common principles.

[05] EU presidency, executive make joint proposal for EU-Turkey dialogue

Athens, 03/05/2003 (ANA)

In an informal text presented at the EU foreign ministers' informal council, that on Friday launched its two-day meeting in Rhodes, the Commission and the Greek presidency proposed further ''development of the political dialogue with Turkey regarding common interests in the Middle East region, taking under consideration, among others, the good relations between Turkey and Israel, and involving Ankara in EU efforts toward an end to the Arab-Israeli dispute''.

The EU could also intensify dialogue with Turkey regarding the preservation of the Iraqi borders, the text said, which constitutes''food for thought'' for the meeting of the 25 European foreign ministers participating in the Rhodes meeting and a possible framework for the European Council in Thessaloniki in June.

[06] EU-Japan summit concludes in Athens

Athens, 03/05/2003 (ANA)

Koizumi arrived in Athens on Thursday and attended a working dinner hosted by Simitis, with whom he held a private meeting on Friday. He will also be received later in the day by President Costis Stephanopoulos.

A joint communique said that the EU-Japan ''strategic cooperation'' was discussed, as well as the situation in the Korean peninsula, which the statement said caused concern of wider repercussions in the spread of weapons of mass destruction.

The two sides further discussed developments in Iraq, on which the need for strengthening international solidarity was stressed in the communique, as well as the Middle East issue, on which the joint statement underlined that the Quartet's Roadmap needed to be implemented without delay.

Other topics discussed included the European prospect of the western Balkans, the need for a Cyprus solution via negotiations on the basis of UN secretary general Kofi Annan's plan, the reconstruction of Afghanistan, and the situations in Sri Lanka, Indonesia and China.

The two sides also discussed the content of a draft agreement for cooperation in non-competitive activities.

Replying to press questions, Koizumi referred to the recession in the Japanese economy following the 'Japanese miracle' of the 1980s, which he attributed partially to the repercussions of globalization but also to the need for modernization of the economic system in his country which dates back to the end of WWII.

Koizumi said that Japan had commenced structural reforms, introduced fiscal tools and put forward tax reforms, adding that he placed particular importance on privatizations. "But time is needed for improvement of our performance," he noted.

Prodi spoke of the "technological fatigue" in Japan, adding that the EU dialogue with that country aimed at reversing the "phenomenon of recession" as well as averting its spread to the EU.

In that direction, the EU was advancing the Lisbon strategy, Prodi added.

Responding to questions on the developments in North Korea, Simitis warned that the danger arising was not of a local nature. The prospective production of weapons of mass destruction was not the only problem, he explained, noting that acts incompatible with international law have been taking place in the region for the past 50 years.

"The EU does not want conflicts. It wants peace and respect of international law, and in that framework we shall seek a solution through a multilateral dialogue," Simitis said, adding that the "interests of the entire region" needed to be taken into consideration.

[07] EU Commission welcomes Cyprus government measures for Turkish Cypriots

BRUSSELS 03/05/2003 (ANA - V. Demiris)

Speaking to reporters at the regular press briefing, a spokesman for Enlargement Commissioner G�nter Ferhaugen said the Commission welcomed any action that aimed at the reunification of the island and rapprochement of the two communities in Cyprus, adding that the EU remained steadfast over its objective for accession of a unified Cyprus to the Union.

The spokesman said that pursuant to the decision of the Copenhagen Council, the Commission on May 21 would present a package of measures for the economic convergence of the occupied part of Cyprus, along with financial assistance to the tune of 15 million euros.

[08] Greek minister Venizelos on latest Cyprus developments

NICOSIA 03/05/2003 (ANA - G. Leonidas)

�I had a long and every interesting conversation with the president of the Cyprus Republic in light of the new situation that has been created on the island over the last few days,� Venizelos said, adding:

�The Cyprus issue, as a political problem, has unfortunately not been solved, continues to be an open problem that is faced by the United Nations and the European Union, because it involves a member-state that will be fully included in the Union.

�Therefore, this is the framework in which we are moving. We are not downgrading anything, we are taking into consideration everything and that is why it is very significant for us to see what the political result from the latest events will be,� he added.

The Greek minister later visited the Ledra Palace checkpoint that separates Nicosia into the government-controlled sector from the Turkish-occupied part of the Cypriot capital.

''The Nicosia wall opened, but did not fall,'' was his statement.

[09] Justice minister Petsalnikos meets Hungarian, Slovenian counterparts

Athens, 03/05/2003 (ANA)

In his last day of such contacts, Petsalnikos met in Athens on Friday with his Hungarian counterpart Peter Barandy, who underlined that the enlargement of the European Union was a major success of the Greek Presidency.

Barandy also referred to the changes that should be made to his country�s justice system to adjust to EU decisions.

Petsalnikos stressed that �participation in the EU does not mean losing national sovereignty,� saying that �the European family has proved that through continuous dialogue can identify commonly approved solutions.�

The two ministers agreed to work on furthering cooperation between their respective countries, not only on ministerial level, but also on judicial authorities� level.

Petsalnikos accepted an invitation by Barandy to visit Hungary.

Also on Friday, the Greek justice minister had a meeting with his Slovenian counterpart Ivan Bizjak, who thanked the Greek EU Presidency for having assisted in completing Slovenia�s accession to the European Union.

Petsalnikos and Bizjak exchanged views on the issues to be on the agenda of the EU Justice Ministers Council in Brussels on May 8, to be presided over by the Greek minister. Slovenia will officially take part in the Council for the first time, along with the remaining nine acceding countries.

[10] EU environment ministers to meet for talks on May 2-3

Athens, 03/05/2003 (ANA)

The conference is expected to be carried out in the midst of protests staged by environmental organizations who will march to Lagonissi on Saturday to protest what they call the absence of discussions over the essential European environmental issues from the Council's agenda.

The Greek EU presidency, through Environment Minister Vasso Papandreou, will seek an exchange of views on how the enlarged EU can acknowledge sustainable growth and the integration principle as one of its key objectives, to ensure a qualitative and healthy environment.

The informal Council, which will be also attended by the environment ministers of the Balkan states, will provide a forum for the exchange of views and experiences with regard to the importance of regional cooperation in the Balkans.

[11] Karamanlis to depart for Brussels for EPP meeting

Athens, 03/05/2003 (ANA)

On Thursday, Karamanlis will depart from Brussels for Vienna, where he will meet with Austrian Chancellor Wolfgang Schuessel.

[12] Minister of State sues 'Avriani', Kouris for slander

Athens, 03/05/2003 (ANA)

Under the headline ''Another minister lived for six years in villa with pool owned by public-sector contractor,'' Friday's front-page article in 'Avriani' called on the Premier Costas Simitis to investigate the residential arrangements of an unnamed minister renting his house from an offshore company identified as National Shelq SA.

The paper said it had received information that ''another minister from the notorious group of 'captains' around whom all the conmen in the country have gathered and are stealing, has been living for six years in a villa with a pool belonging to a state supplier that is in Alimos.''

Slamming the article as ''brazen lies'' and ''Avriani'' owner George Kouris as a ''systematic slanderer and distorter of reality,'' Manikas said he would be presenting evidence that clearly showed the truth.

The minister said he had rented a 121-square-metre flat in an apartment building between 1998 and 2001 from the company National Shield SA and had submitted a copy of the lease with the tax office, as well as declaring the rent in his tax statement and 'statement of means' declaration.

He said he was now living in a flat in Voula, whose lease and necessary documents were all properly declared.

Manikas had earlier been accused by the paper of making illegal gains on the stock market through insider trading.

Meanwhile, slander charges were filed against Kouris, ''Avriani'' chief editor Georgios Tsiroyiannis and former Altec employee Lili Xynarianou on Friday by a primary court prosecutor, in response to a suit filed by Press Minister Christos Protopapas the previous week. The suit concerned an article in the paper alleging that Protopapas' election campaign had been illegally funded by businessman Thanassis Athanasoulis.

[13] Coalition leader says gov't has exhausted its momentum, has mind on elections

Athens, 03/05/2003 (ANA)

According to Constantopoulos, henceforth the ruling PASOK party and government will only concern itself with electoral approaches, adding that after the end of the Greek EU Presidency ''we are clearly entering an election period.''

''The time of the elections will be chosen by the prime minister with the sole criterion of the interest of PASOK. Therefore elections can be held at any time from June onwards,'' he said.

Constantopoulos, who was speaking at the start of a two-day meeting of his party's Central Political Committee, said that in statements Prime Minister Costas Simitis made on Thursday, ''he attempted to reverse the unfavorable political climate for the government,'' but that the premier's statements ''were not convincing and thus ineffective.''

The Coalition leader further said Simitis ''has been ruling the country for 8 years already and was obliged to having proceeded in advancing measures for the institutional protection of the political system. However, he did not do this.''

[14] Protest over environmental impact of war during EU ministers' meeting

Athens, 03/05/2003 (ANA)

The protest will condemn the actions of the major powers that cause pollution of the environment during a war because of bombing and its impact on future generations.

[15] New public order deputy minister named

Athens, 03/05/2003 (ANA)

The 46-year-old Tsertikidis, an architect/engineer, was first elected to parliament in 1993 on the PASOK ticket.

Malesios resigned on April 15 after the Athens newspaper ''Avriani'' ran a front-page article alleging a possible link between the deputy minister and one of the two owners of the company Altec, currently under investigation for alleged stock market fraud.

According to the newspaper, Malesios has been living rent-free in a Melissia villa owned by Altec boss Thanassis Athanasoulis, whose company was a participant in the consortium that recently received the prized security contract for the 2004 Olympics in Athens. The newspaper implied that the free home was repayment for alleged assistance by Malesios in landing the contract.

[16] Greek EU presidency: the promotion of a common EU tourist policy is key target

Athens, 03/05/2003 (ANA)

Tsohatzopoulos, whose country currently holds the rotating EU presidency, noted that the Greek presidency's main target was to promote a common tourist policy in the European Union, in promotion and communication levels, at a period when its share in the global tourism market has fallen by 10 percent in the last five years.

[17] Greek tourism to improve this year, Development minister

Athens, 03/05/2003 (ANA)

Speaking to reporters, during a news conference ahead of an Informal EU Tourism Council to be held next Monday and Tuesday in Aghia Pelaghia, Crete, Mr Tsohatzopoulos stressed there were signs that tourist demand was beginning to move smoothly, although with regional fluctuations. "We are optimistic that this year will be good," the Greek minister said.

Mr Tsohatzopoulos noted that the Greek EU Presidency's main target was to promote a common tourist policy in the European Union, in promotion and communication levels, at a period when its share in the global tourism market has fallen by 10 percent in the last five years.

[18] Main opposition seeks off-the-agenda debate on economy

Athens, 03/05/2003 (ANA)

"It is already a commonly-held conviction that the country's economy has come to a worrying pass and is on a steadily declining course," he said in the letter.

Karamanlis stressed the "highly indicative contrast between the shortfall of revenue and the great increase in spending during the first three months of the current year," saying that the revenues had increased just 2.5 per cent instead of an initial target of 5.1 per cent, while spending in relation to the previous year had increased by 25.2 per cent instead of an initial target of 6 per cent.

[19] Greece seeks EU financial support for natural disasters

Athens, 03/05/2003 (ANA)

The Greek minister said he had sent a letter to the European Commission seeking approval of a request for financial support, noting that repairing damages would need significant funds from the state budget, estimated around 300 million euros.

The Greek government is seeking the EU's solidarity fund to cover 50 percent of these funds.

Greece was hit by a large scale natural disaster in the January-March period, with island regions mainly suffering the most damages in their infrastructure (road networks, harbors, water systems, etc).

[20] ASE breaks above 1,700 level on Friday

Athens, 03/05/2003 (ANA)

National Bank led the market higher, with its share price ending 6.05 percent up.

The IT Solutions (7.68 percent), Insurance (6.37 percent), Retail (5.89 percent), Publications (4.21 percent) and Banks (3.86 percent) sectors scored the biggest percentage gains of the day.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 2.22 percent, the FTSE/ASE MID 40 index ended 1.84 percent higher, the FTSE/ASE SmallCap 80 index jumped 2.07 percent, while the wider FTSE/ASE 140 index rose 2.14 percent.

Broadly, advancers led decliners by 268 to 51 with another 43 issues unchanged.

Derivatives Market Close: Turnover at 81.5 mln euros Friday

Equity Index Futures: