Athens News Agency: Daily News Bulletin in English, 03-05-27

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

CONTENTS

[01] Athens, Nicosia call for 'European solution within UN framework' for Cyprus

[02] Greek and Turkish FMs agree on confidence-building measures

[03] ''Road map'' a window of opportunity that should not be missed, FM says

[04] Gov't denies reports of Greek-Turkish deal for bilateral issues, Cyprus

[05] DM outlines steps required for upgrading EU defense industry

[06] DM on opinion polls, European defense industry

[07] EU DMs hold minute of silence for Spanish peacekeepers killed in plane crash

[08] German military chief due in Athens

[09] Chilean Parliament president meets PM, FM, Parliament president and ND leader

[10] Canadian premier to arrive in Athens for bilateral meetings with the EU

[11] Gov't denies red alert over 'Islamist terrorism'

[12] Turkish jets to continue infringing on Athens' FIR, Turkish chief of staff says

[13] Garganas denies he recommended lowering wages to boost competitiveness

[14] EU Agriculture Council: Drys says Greece may block CAP reform

[15] Labor minister meets with Synaspismos leader

[16] Development minister addresses exporters of northern Greece

[17] KKE leader criticizes gov't's labor policy, proposes pension at 55

[18] Labor minister, IKA governor announce measures to improve IKA services

[19] Greek trade deficit up 14.9 pct in Jan-Feb

[20] Greece participates in int'l conference tourism fair

[21] Greek stocks end Monday's session lower

[22] Witnesses recognize defendants as frequenting N17 safehouses

[23] Trial for Ocalan's illegal entry into Greece resumes in Athens

[24] Skandalidis, Kinnock meet acceding states on hiring EU civil servants

[25] Modern Greek painting exhibition held in Istanbul

[01] Athens, Nicosia call for 'European solution within UN framework' for Cyprus

Athens, 27/05/2003 (ANA)

Simitis said his three-hour meeting with Papadopoulos had focused on two main issues: European issues and the agenda of the Thessaloniki EU Summit in June and the ongoing effort to achieve a solution to the Cyprus issue and to coordinate the actions of Athens and Nicosia in foreign policy terms.

''We both believe that measures on the Turkish and Turkish-Cypriot side for the partial facilitation of movement by Greek-Cypriots and Turkish-Cypriots [between the occupied north and free south of the island] are not aimed at a solution of the Cyprus issue but seek to create impressions and disorient public opinion, alleviate pressures on the Turkish and Turkish-Cypriot side and ultimately, the recognition of the pseudo-state,'' Simitis stressed.

According to the Greek premier, these moves were also a way of taking the Cyprus issue out of a UN framework and gradually 'de-internationalizing' it.

He once again reiterated that Greece and Cyprus were adamant on the need for a Cyprus solution within a UN framework and were seeking a repetition of talks based on the Cyprus peace plan presented by UN Secretary-General Kofi Annan and the last UN resolution after the collapse of talks at The Hague.

''We want a just, viable and functional solution that is compatible with the body of EU laws and regulations and EU principles,'' Simitis said.

He noted that the Athens and Nicosia governments looked to Cyprus' EU accession to act as a catalyst for a solution.

At the same time, the Greek premier ruled out any initiatives to re-launch the talks by the Cyprus government, noting that this would be counterproductive unless there were a change of stance from the Turkish and Turkish-Cypriot side, since it could lead to a 'degeneration' of the UN plan.

''The talks must begin when the conditions for our success are right,'' he told reporters.

He said a series of measures announced by Cypriot government for Turkish-Cypriots, as well as the measures that will soon be announced by the European Commission, sought to bring the Turkish-Cypriot community closer to the EU.

Asked if there would be specific actions to change Turkey's stance before May 2004, when Cyprus becomes a full member of the EU, Simitis said there would have to be changes to the texts that had been prepared and that various dates prior to that deadline would have to be taken into account in the preparations.

He stressed that Athens would simply state its opinions, while final decisions would be made in Nicosia and he also noted the closer ties that Cyprus would henceforth have with the EU, particularly EU Commissioner for enlargement Guenter Verheugen.

Asked about the controversy over whether sections of the Annan plan conformed to the body of EU rules and regulations, Simitis said that the issue was now under discussion. He said the European Commission considered the plan to broadly conform to EU requirements while the Greek side believed it needed improvement on some points.

With regard to Turkey's stance in general, Simitis stressed that Ankara needed to show signs of its intentions well in advance if it was interested in its European course.

''They can't just turn around and say 'we'll think about what to do' two days before the European Summit in December 2004,'' he underlined.

One such issue on which Turkey needed to quickly conform was the free access by Cyprus-flagged ships to Turkish ports, he said.

At the same time, both Simitis and Papadopoulos played down the significance of airspace violations by the Turkish side, saying that this was nothing new and would not be allowed to affect their efforts and policies.

In his statements to reporters, the president of Cyprus referred to the long-standing arguments of the Turkish-Cypriot side against reunification and abolishing the dividing line on the island. He noted that the Cypriot people had themselves debunked the arguments presented over the years by Turkish-Cypriot leader Rauf Denktash - namely that a collapse of the 'green line' dividing the island would lead to incidents of the type seen in Bosnia or Kosovo.

Visiting Cyprus president Papadopoulos confers with Greek counterpart: Visiting Cyprus president Tasos Papadopoulos on Monday conferred with his Greek counterpart, Kostis Stephanopoulos, on the latest developments in the Cyprus issue.

Papadopoulos, who arrived in Athens on Sunday for a working visit at the invitation of Greek Prime Minister Costas Simitis, had a half-hour meeting with President Stephanopoulos before his talks with Simitis.

[02] Greek and Turkish FMs agree on confidence-building measures

Athens, 27/05/2003 (ANA)

The two foreign ministers held their meeting in Hersonisos on the island of Crete where the Euro-Mediterranean meeting is taking place.

Papandreou announced that what was agreed was the mutual exchange of visits by officers of the armed forces' three branches, mutual visits by students of the armed forces' academies and the establishment of telematic medicine offices between two military hospitals of the two countries.

The foreign minister said the issue of national airspace violations by Turkish warplanes was also discussed and it was agreed that the issue be examined by the two foreign ministries' political directors.

Papandreou raised the issue of minority religious foundations with his Turkish counterpart, while Gul briefed him on the latest developments.

It was agreed that the issue will be settled by the heads of the foreign ministries' relevant departments at a meeting to be held in early June.

[03] ''Road map'' a window of opportunity that should not be missed, FM says

Athens, 27/05/2003 (ANA)

Speaking at the inaugural session of the Euro-Mediterranean conference in Crete, Papandreou stressed that the ''road map'' was a product of the common effort of the international community aiming to create two states, Israel and Palestine, that will live in peace and security one next to the other by the end of 2005.

He stressed that the ''road map'' provides the opportunity and aids the process with specific steps, adding ''I understand the possible caution or even the suspicion of many, since this is not the first effort. Hopes were created in the past without final result''.

''It is now important to move on without delay in implementing the 'road map' with decisiveness ... and political will. This means that we should leave aside the differences and the divisions and to work for a comprehensive peace in the region,'' Papandreou said.

Papandreou also stressed that Europe's development can only be completed with the establishment of unbreakable bonds with the Mediterranean countries through the securing of values, such as peace, security and human rights.

He stressed that the next step to be taken is that of bilateral association agreements between the EU and the countries of the Mediterranean, the establishment and the successful implementation of the MEDA program, among other measures.

He concluded by congratulating Turkey for its victory in the Eurovision song contest and the award it received at the Cannes Film Festival, over the weekend.

Israeli FM says road map a historic opportunity

Israeli Foreign Minister Silvan Shalom, speaking during a press conference in Hersonisos in the framework of the Euro-Mediterranean conference, said on Monday the road map is a historic opportunity to close the cycle of blood in the region.

Shalom also accused Syria of harboring and training terrorists and added that he did not know whether his Syrian counterpart would receive him.

''Syria does not desire negotiations. It is harboring terrorists. They have training camps for terrorists on their territory, while facilities are provided for terrorists from Damascus airport,'' he said.

Shalom reiterated that ''we accepted the road map despite difficulties."

Statements to the press: Papandreou, who is chairing a Euro-Mediterranean foreign ministers meeting which opened here on Monday afternoon, said upon his arrival at Iraklion airport that one of the meeting�s major targets was to create the conditions for a strong Euro-Mediterranean partnership, especially following the Iraq war and the new Road Map for the Middle East.

He added that the Road Map �is a great help in getting the peace process off the ground, a process which would lead to the establishment of a Palestinian state by 2005. The conference is a major chance to sum up whatever we have achieved so far and review new challenges.�

Referring to the European Union, Papandreou, who currently presides over the EU General Affairs Council, underlined that the Union was currently in continued contact with the remaining members of the �quartet� (Russia, US, United Nations) and was ready to undertake any role it would be required to, and keenly support the ME Road Map.

With regard to the Palestinian issue, he noted that there is an in principle agreement between the two parties � Israel and the Palestinian Authority, in spite of both parties� reservations.

�We have not reached the point to have achieved a comprehensive settlement ... we need clear steps to arrive at the desirable point,� Papandreou said.

Earlier in Athens, responding to a question concerning Turkish Foreign Minister Abdullah Gul with whom he met on Monday evening, Papandreou said that in all multilateral meetings ''we always have the opportunity to discuss our bilateral relations''.

''As you know there is a process for the measures of good neighborliness, which are discussed on the level of political directors,'' Papandreou said in response to a question on whether an agreement on confidence building measures would be signed.

''I know that during their recent meetings the political directors had discussed some measures. If they are ready and I believe that they will be discussed today on the level of political directors, there is a chance, either now or in our next meeting, that we will sign certain measures, which will not be of a military nature''.

He concluded that the measures are of two categories, saying that one includes confidence building measures discussed via the representatives in NATO and the other includes good neighborliness measures which are not of a military nature and concern the cross border cooperation and aid the decrease of tensions between the two countries.

[04] Gov't denies reports of Greek-Turkish deal for bilateral issues, Cyprus

Athens, 27/05/2003 (ANA)

Greece desired and was promoting a solution to the Cyprus problem and such a solution might assist in dealing with other problems that might possibly exist.

He also stressed that a solution of the Cyprus issue would necessarily have to precede such a prospect.

The spokesman appeared pessimistic about the possibility of such a solution, however, noting that the stance of the Turkish side did not create the conditions that promoted a solution.

[05] DM outlines steps required for upgrading EU defense industry

Athens, 27/05/2003 (ANA)

Papantoniou, whose country currently holds the EU presidency, said that boosting competitiveness required cooperation for long-term planning of the operational needs in armament sectors of strategic importance, as well as freeing the European defense industries from state control.

National boundaries had to be abolished with respect to the European defense industry, he said, stressing that nationalistic perceptions of the small national industries would have to be overcome.

Papantoniou further reminded that the EU trade union movements endorsed efforts for reinforcing the European industrial base through acquisitions and mergers of enterprises.

[06] DM on opinion polls, European defense industry

Athens, 27/05/2003 (ANA)

Commenting on the recent opinion polls and statements by the central bank governor on unemployment, he said that the government must recover the people's confidence by putting forward the work it has accomplished and setting out a course for the next four years.

This, he added, should be the central theme of Tuesday's meeting of the PASOK central committee, so that the climate could be reversed in a short time.

Papantoniou, a former national economy and finance minister, made the statements in reply to press questions after addressing an event on European prospects and the strengthening of European defense and security policy organized by the national defense ministry.

In his address to the event, Papantoniou outlined the steps required so that the structural and technological upgrading of the EU's defense industry could proceed.

He said that boosting competitiveness required cooperation for long-term planning of the operational needs in armament sectors of strategic importance, as well as freeing the European defense industries from state control.

National boundaries needed to be abolished with respect to the European defense industry, he said, stressing that nationalistic perceptions of the small national industries needed to be overcome.

Papantoniou further reminded that the EU trade union movements endorsed the efforts for reinforcing the European industrial base through acquisitions and mergers of enterprises.

[07] EU DMs hold minute of silence for Spanish peacekeepers killed in plane crash

Athens, 27/05/2003 (ANA)

The EU council of defense ministers observed a minute of silence at the opening of a meeting on ''European prospects for the strengthening of European defense and security policy'', organized in Athens by the Greek ministry of national defense, as the current chair of the council.

A Ukrainian Yak-42 plane carrying the 62 Spanish soldiers and 12 crew members crashed in thick fog and low visibility early Monday in northwestern Turkey near the Black sea city of Trabzon, killing everyone on board.

The plane, the final destination of which was the Spanish city of Zaragoza, crashed into a foggy hillside near the small town of Macka, some 35 from Trabzon airport, during its third attempt to land at the airport, where it was scheduled to make a second refueling stop after a first refueling in the Kyrgyz capital of Bishkek.

The soldiers, part of Spain's 120-strong contingent to the International Security Assistance Force (ISAF) in Kabul, Afghanistan, which is responsible for helping maintain security in the Afghan capital.

The Yak-42 had been chartered by the Spanish defense ministry to bring home the 62 peacekeepers, who had completed their mission with ISAF.

ND leader expresses condolences to Aznar for death of Spanish soldiers: Main opposition New Democracy (ND) leader Costas Karamanlis on Monday sent a telegram to Spanish Prime Minister Jose Maria Aznar expressing his condolences over the tragic death of the Spanish soldiers in the airplane accident near Trabizon, Turkey.

The men were part of the peacekeeping mission in Afghanistan, and were on their way back to their base, but their airplane crushed as it was attempting to land for refueling.

[08] German military chief due in Athens

Athens, 27/05/2003 (ANA)

According to a Greek national defense general staff (GEETHA) announcement, Gen. Schneiderhan was scheduled to meet with the Hellenic Armed Forces' military and civilian leadership to discuss matters of mutual military interest.

On Wednesday, the German chief of staff was due to attend the final stage of the SARISA-2003 exercise.

[09] Chilean Parliament president meets PM, FM, Parliament president and ND leader

Athens, 27/05/2003 (ANA)

In all discussions held reference was made to bilateral relations between Greece and Chile, while the considerable role played by her father Salvador Allende in Chile's struggles for democracy was also stressed.

Parliament President Apostolos Kaklamanis and Allende, who visited him at the head of a Parliamentary delegation, discussed the further strengthening of the already very good relations between Greece and Chile, cooperation between the Parliaments both through their Friendship Groups and international organizations, and the international situation.

Kaklamanis underlined the parallel paths crossed by the two peoples through difficult struggles and sacrifices for freedom, democracy and progress.

He also referred to the international situation, terming its present picture ''gloomy'', and to prospects for the ideals of freedom, peace and human rights ''which inspire the Greek and Chilean people and the peoples of the entire world.''

Allende expressed the warm sentiments of herself and the Chilean people towards the Greek people ''on whose support and solidarity we have always relied on in very difficult moments.''

She was thankful for the Greek Parliament's support for her country's Association Agreement with the European Union and invited Kaklamanis to visit Santiago, who accepted the invitation.

Allende also visited Laliotis at the party's head office, accompanied by a Parliamentary delegation.

Also present were Foreign Policy and International Relations Secretary Paraskevas Avgerinos and PASOK Deputy Foivos Ioannidis.

[10] Canadian premier to arrive in Athens for bilateral meetings with the EU

MONTREAL 27/05/2003 (ANA I. Frangouli)

On Wednesday Chretien will meet with Prime Minister Costas Simitis, European Commission President Romano Prodi and President of the Republic Kostis Stephanopoulos, while he will be hosted to a dinner with the representatives of the European Union.

On Thursday he will meet with main opposition New Democracy (ND) leader Costas Karamanlis and Athens Mayor Dora Bakoyianni. Chretien will conclude his visit hosting a dinner for Greek and the Canadian businessmen that will arrive in Athens with him.

[11] Gov't denies red alert over 'Islamist terrorism'

Athens, 27/05/2003 (ANA)

He was responding to a report in the 'Sunday Vima' which said that Islamist terrorism was the number one threat to Olympic Games security.

[12] Turkish jets to continue infringing on Athens' FIR, Turkish chief of staff says

ANKARA 27/05/2003 (ANA - A. Abatzis)

The Athens FIR was set by international organizations and concerns all flight control over a region. Over the past years Turkish fighter jets have been infringing on the Athens FIR. Greek airspace is limited to the islands 10 miles off them, as well as the mainland.

Ozkiok also spoke of flights in international airspace and also made mention of what he called '' provocation'' on the part of Greece and questioned the 10 mile airspace zone off the Greek coast line of the mainland and islands.

''Greece, over the past few days, began consciously to attract the international interest, following the Cyprus issue, on the Aegean ... It is an old disagreement their habit to consider the border with Turkey and the islands to be the region we call flight information region,'' Ozkiok said.

[13] Garganas denies he recommended lowering wages to boost competitiveness

Athens, 27/05/2003 (ANA)

''I have never recommended lowering wages. I have never supported that a solution to unemployment was to lower wages. My position, and that of the Bank of Greece, which was repeatedly stressed, is that to achieve a gradual convergence of domestic inflation with the Eurozone's average rate the rise in nominal incomes should be equal to the rise in productivity,'' the Greek central banker said in a statement.

Mr Garganas noted that the bank's ''clear positions'' were included in its reports on monetary policy submitted to the Greek parliament and the cabinet in November 2002 and March 2003, respectively, and in its recent report to the bank's general shareholders' meeting (April 2003).

Gov't distances itself from statements by Bank of Greece governor on salaries: The government has distanced itself from statements by Bank of Greece Governor Nikos Garganas who, in an interview with a newspaper on Saturday, had expressed support for a decrease in the increase rate of working people's salaries.

Government spokesman Christos Protopapas said on Monday ''the logics of the necessary building of competitiveness in salary cutbacks and the deregulation of labor rights are distant and outside the logic of the government.''

The spokesman also called on the main opposition New Democracy party to reply whether it endorses views voiced by economic circles and the federation of Greek industries on salary cutbacks for working people and the deregulation of the labor market.

[14] EU Agriculture Council: Drys says Greece may block CAP reform

BRUSSELS 27/05/2003 (ANA � M. Kourmousis)

Greece�s Agriculture Minister George Drys, who chairs the meeting, asked the European Commission to issue a bounding statement that �there would be sufficient funds to support Mediterranean products,� in line with a relevant Council decision.

During the deliberation stage, Greece also raised again the issue relating to milk production quota, with Drys saying that now that CAP is on the table, milk production quotas should be rationalized.

He added that Greece regarded it unthinkable that some member-states with an equal population to others to have a three times higher quota in milk production.

Drys also made it clear to the Commission that Greece, unless its demands were accepted, will not vote for the new CAP.

The tripartite deliberations are held between the president of Council of Ministers, in this case Drys, Agriculture and Fisheries Commissioner Franz Fischler and the farming minister of each EU member-state. This means that Drys would meet for discussions with all 15 ministers. Meetings with the farming ministers form the ten EU acceding countries would be held on Tuesday.

Discussions are held on the basis of a questionnaire prepared by the EU Presidency (currently Greece), containing eight questions on policy matters.

The Commission�s opinion is expected to be issued early June, and the Greek EU presidency would then prepare the final recommendation to be tabled for approval at the Agriculture Ministers Council on June 11-12.

Earlier in the day, the Council reviewed issues relating to genetically modified organisms and their co-existence with conventional farming.

Fischler presented the conclusions of a scientific conference of April 24, in which a primary statement was �those genetically modified organisms are granted license and may be cultivated in Europe, would be safe.� This means that taking special measures is out of question.

The Commissioner added that a Commission text containing the specific directives-directions would be issued in the coming months, perhaps in July.

Some northern member-states, e.g. Holland, are in favor of the free and unrestricted use of genetically altered products, while some southern, e.g. Greece, demand strict rules in granting farming license to such products.

Another issue examined regarded the allocation of fishing in the so-called �western waters�, on which Ireland and Spain are at loggerheads. However, Drys said he expected that a compromise solution would be found at the June Council.

[15] Labor minister meets with Synaspismos leader

Athens, 27/05/2003 (ANA)

Reppas stated to the press that he briefed the Synaspismos leader and his delegation on the initiatives the government is undertaking to support the workers of businesses in crisis, for the preparations of the new growth legislation and the regulations for the participation of the society of citizens in the dialogue on labor relations.

Constantopoulos, on his part, said that the policy of the government does not ''develop the economy nor does it protect society,'' saying that recent statements by the governor of the Bank of Greece herald a social nightmare, if the current policy is followed.

[16] Development minister addresses exporters of northern Greece

Athens, 27/05/2003 (ANA)

He said that at the next meeting of the National Council for Competitiveness and Development, the main issue under discussion will be the growth of foreign trade.

Citing Eurostat data, he expressed the conviction that in 2004 and 2005 there will be an increase in Greek exports.

[17] KKE leader criticizes gov't's labor policy, proposes pension at 55

Athens, 27/05/2003 (ANA)

Papariga, during a press conference in Athens, also presented a series of proposals for the confrontation of the problem of unemployment in Greece.

The KKE leader underlined that the government is preparing to hire some 90.000 people, of which some 50.000 will be hired in the public sector with short-term contracts, while the rest 40.000 will be hired in businesses that will accept relevant subsidies from the government.

Papariga proposed that the unemployed should receive 80 per cent of the basic entry salary of workers for the duration of their unemployment, while men should retire at the age of 55 and women at the age of 50.

[18] Labor minister, IKA governor announce measures to improve IKA services

Athens, 27/05/2003 (ANA)

The basic aim of the measures is to minimize the waiting period a client has to wait to actually see a doctor, to simplify the paperwork for reimbursement of medical expenses, to simplify the process of prescriptions being filled and a series of measures to facilitate the access to services for special categories of patients with chronic disabling illnesses.

[19] Greek trade deficit up 14.9 pct in Jan-Feb

Athens, 27/05/2003 (ANA)

The value of imports-arrivals (excluding oil products) rose by 573 million euros, or 14.7 percent over the same period, while the value exports-deliveries totalled 1.921 billion euros in January-February, from 1.759 billion euros last year, an increase of 9.2 percent.

The value of exports-deliveries (excluding oil products) rose by 70.7 million euros, or 4.4 percent over the same period.

Greece's trade balance showed a deficit of 3.448 billion euros in the first two months of 2003, from 3.001 billion euros last year, an increase of 14.9 percent.

Excluding oil products, the trade deficit widened by 502.4 million euros, or 22 percent, over the same period in 2002.

[20] Greece participates in int'l conference tourism fair

Athens, 27/05/2003 (ANA)

GNTO said the country's pavilion attracted a satisfactory number of visitors after cooperation with the organizers of EIBTM.

The Greek tourism authority in cooperation with the Athens 2004 Organizing Committee presented the country's preparations for organizing the Athens 2004 Olympic Games and conference tourism prospects in Greece.

[21] Greek stocks end Monday's session lower

Athens, 27/05/2003 (ANA)

The general index ended 0.09 percent down at 1,689.33 points, with turnover a low 86.8 million euros.

The Insurance, Textile and Construction sectors suffered the heaviest percentage losses of the day (2.50 percent, 2.36 percent and 1.44 percent, respectively), while the Investment, IT Solution and Telecommunications sectors scored the biggest gains (2.96 percent, 1.11 percent and 0.68 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.16 percent, the FTSE/ASE MID 40 index ended 0.74 percent lower, the FTSE/ASE SmallCap 80 index dropped 1.55 percent and the wider FTSE/ASE 140 index ended 0.41 percent off.

Broadly, decliners led advancers by 240 to 86 with another 35 issues unchanged.

Derivatives Market Close: Trade at discount Monday

Equity Index Futures: