Athens News Agency: Daily News Bulletin in English, 04-01-21

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

CONTENTS

[01] Gov't welcomes Turkish reaction to arms cutback proposal

[02] Karamanlis in Nicosia; pledges to work for a Cyprus settlement

[03] Foreign ministry spokesman announces holding of Greek-Turkish Task Force meeting

[04] Papandreou launches stinging attack on ND during Lavrio tour

[05] Proposals by PASOK leadership candidate on employment included in labor policy

[06] Former PASOK minister Petsos to run on main opposition ND ticket

[07] President hosts annual reception in honor of Diplomatic Corps

[08] Greek unemployment to fall to 7.17 pct by 2006, forecast

[09] First Balkan forum of bank unions to be held in Athens on Friday

[10] Greek trade deficit up 24.5 pct in January-August 2003

[11] GNTO unions threaten with strike action

[12] EU commissioner welcomes natgas pact between Greece, Turkey

[13] Greek retail sales up 8.3 pct in January-September 2003

[14] Greek stocks end lower for second consecutive session

[15] PM Simitis chairs Interministerial Committee meeting on Olympic Games

[16] Gov't: Olympic budget for projects, events in Thessaloniki at 500 mln euros

[17] Court orders Ricomex to pay 2 million euros for victims of plant's collapse

[18] Aegean ministry presents six presidential decrees for island buildings

[19] PM Simitis visits primary school in Athens

[20] Luxembourg PM to be proclaimed honorary citizen of Nea Orestiada

[21] Greece and Italy top destinations of Albanian children

[22] Traffickers arrested for transporting illegal immigrants into Greece

[23] Spokesman says government wants solution process in UN context

[24] Cyprus FM: time running short for solution by May 1

[25] Irish FM hopes for progress in Cyprus issue

[01] Gov't welcomes Turkish reaction to arms cutback proposal

Athens, 21/01/2004 (ANA)

Government spokesman Christos Protopapas said Gul's statements were ''very positive and an initial base for dialogue and for implementing the proposals of George Papandreou''.

He also noted that there had already been a significant reduction in arms spending over the past few years, chiefly because of Papandreou's policies and a general overhaul and restructuring of the Armed Forces.

According to the spokesman, these had achieved savings of up to 2.3 billion euros.

Gul's reaction was also praised by Greek Parliament Speaker Apostolos Kaklamanis, though he stressed that Turkey's good intentions would have to also be put into action and that arms reduction should be mutual and not one-sided.

In statements to a private Greek TV station on Monday, Gul welcomed a proposal made by Papandreou for a gradual matching reduction in defense spending in the two neighboring countries, saying it was a good proposal that showed good intentions, while stressing that Ankara desired good neighborliness with Greece.

''It is a good proposal and we agree with it,'' he said.

Gul reiterates Papandreou's defense spending reduction proposal is 'positive': Turkish Foreign Minister Abdullah Gul on Tuesday hailed a proposal by his Greek counterpart George Papandreou for a gradual matching reduction in defense spending in the two neighboring countries.

''The statement by Mr. Papandreou shows the political will for us to solve peacefully all the differences between the two countries, '' said Gul, adding that ''we hope to have the opportunity to spend our wealth-producing resources for the prosperity of our peoples. We must take measures which will create confidence in this direction.''

The Turkish foreign minister stressed that the progress of Turkey's accession to the European Union and the start of negotiations for full accession will strengthen the tendency for a reduction of defense spending.

Gul reiterated a statement he made on Monday that he found ''particularly positive'' the proposal Papandreou made on Saturday.

Replying to a question whether an agreement will be signed with Greece in the event that ruling PASOK wins the March 7 general elections, Gul said there was no such agreement at present for immediate signing.

Underlining the positive turn in Greek-Turkish relations, Gul said ''I think that the momentum of Greek-Turkish relations will not be lost even if the main opposition party wins the elections in Greece.''

Main opposition leader on Turkish FM's reaction to arms cutbacks proposal: Main opposition New Democracy was ''constantly striving to normalize relations between Greece and Turkey, both as main opposition and as a government, and had not changed its policies,'' ND leader Costas Karamanlis stressed here on Tuesday.

Karamanlis was commenting on Monday's positive first reaction by Turkish Foreign Minister Abdullah Gul to a proposal made by Greek Foreign Minister George Papandreou for gradual and matching cutbacks in arms spending by Greece and Turkey.

Stressing his good relations and cooperation with Turkish Prime Minister Recep Tayyip Erdogan, Karamanlis said he had discussed the prospect of reducing defense spending with Erdogan about a year ago.

He did, however, criticize the timing of Papandreou's proposal, noting that such issues were not appropriate subject matter for the pre-election period.

[02] Karamanlis in Nicosia; pledges to work for a Cyprus settlement

NICOSIA 21/01/2004 (ANA/A.Panagopoulos-CNA)

He said that having successfully concluded the first objective (accession to the European Union) everybody has to behave in a responsible manner and said national issues should be left outside the electoral campaign in Greece (general elections take place on March 7).

''We remain firm in our support to the government of Cyprus and I have made a commitment to President Tassos Papadopoulos that as of 8 March we will work to fulfill the expectations of Greek Cypriots and Turkish Cypriots,'' Karamanlis said after a meeting here with the president.

He said a solution must be just, viable and peaceful and should be based on UN resolutions and the acquis communautaire and added that there is identity of views with President Papadopoulos.

Earlier on Tuesday Karamanlis, here at the invitation of the opposition right-wing party Democratic Rally, had separate meetings with House President Demetris Christofias, former Cyprus President Glafcos Clerides and party leaders.

In statements after his meeting with Christofias, Karamanlis said they discussed the latest developments and prospects for a settlement.

He described Cyprus' accession to the EU ''a new beginning and a unique opportunity for the people of Cyprus to embrace the vision of peace, coexistence and cooperation.''

''Our goal is to have a unified, free and prosperous Cyprus and in order to achieve this we have to have a just, lasting and functional solution,'' he added.

Replying to questions, he said his party always supports the moves and decisions the government of Cyprus makes.

Christofias in his remarks appeared rather pessimistic for the chances of a solution by May 1, when Cyprus joins the EU and expressed hope that the Turkish side will shift from its intransigent stance.

ND leader says Ankara's European path passes through solution to Cyprus issue: Main opposition New Democracy party leader Costas Karamanlis, speaking at a dinner given in his honor here on Tuesday night by the Cyprus Democratic Rally party, sent a message to Ankara that its European path passes through a solution to the issue of Cyprus.

The event was attended by the leaders of all of the island's political parties, former President Glafcos Clerides, former Parliament Speakers, the current Parliament Speaker, businessmen, trade unionists and Turkish Cypriots.

''Nobody, neither here nor in Ankara can have a European orientation unless he pays Cypriot tolls first,'' Karamanlis said, adding that a viable, just and workable solution must be found and that Europe makes no exceptions from rules and refuses to abolish itself.

Visiting ND leader addresses Greek supporters in Nicosia: Visiting main opposition New Democracy party leader Costas Karamanlis, addressing party supporters here on Tuesday, said ''we are before a crucial election.''

Karamanlis announced measures to support the repatriated and announced the enactment of a special identity card for expatriate Greeks. He also spoke of investment incentives, tax reductions and housing care.

''Immediately after the elections we shall examine with the government of Cyprus ways of providing solutions to the issues of loans, land and service without any discrimination and exclusion because discriminations belong to the past,'' he said.

Karamanlis added that in the new era we are being called on to make a new start since new opportunities are being created and stressed that Greece is before a new period of great opportunities and new possibilities.

[03] Foreign ministry spokesman announces holding of Greek-Turkish Task Force meeting

Athens, 21/01/2004 (ANA)

Beglitis said activities carried out to date were given a very positive appraisal, which concern the holding of informative visits and seminars for Turkish administration members, while planning for the coming months was agreed.

It is reminded that in the framework of the Task Force, and from the beginning of its operation in 2000, 19 seminars and informative visits have been held so far and more than 600 Turkish public administration members have been trained.

[04] Papandreou launches stinging attack on ND during Lavrio tour

Athens, 21/01/2004 (ANA)

With such attitudes and policies, globalization will bring unemployment, redundancies and environmental degradation, he warned a gathering in the former industrial town, notorious for record rates of joblessness in the early to mid-90s.

Defending the policies of Prime Minister Costas Simitis' governments, meanwhile, Papandreou said he was not only jointly responsible but also proud of bold goals such as making Greece part of the eurozone, making it a centre of peace for the Balkans and a country capable of undertaking major international events, such as organizing the Olympic Games.

At another point, Papandreou welcomed the positive response from Turkish foreign minister Abdullah Gul to his proposal for gradual and matching arms cutbacks by Greece and Turkey.

He also pledged to personally begin a campaign to attract foreign investment to Greece and outlined a proposal to reduce youth unemployment by allowing companies to hire school leavers up to 25 years old and university graduates up to 29 years old for up to four years on full pay and medical benefits without having to pay social insurance contributions.

Talking to the workforce at Olympic Marine, which he visited during his tour, the foreign minister urged caution in introducing a 35-hour work week in Greece, noting that it was better suited to countries like France with large industries.

''In Greece, small to medium-sized companies will have problems with the reduced work hours,'' he said.

''We must ensure our businesses remain competitive. The 35-hour week will become the object of discussion so that any reduction in working hours does not lead to a reduction in jobs,'' Papandreou added.

He also visited a school in the area and the town's Technological Park. Before he ended his visit, the foreign minister was accosted by the mother of a child with special needs, who protested strongly about the level of social services in Greece.

[05] Proposals by PASOK leadership candidate on employment included in labor policy

Athens, 21/01/2004 (ANA)

The issue had been raised by independent Deputy Stefanos Manos during a discussion in Parliament on the labor ministry's bill titled ''Arrangement of social security rules and other terms.''

Reppas noted that an arrangement already exists in a past bill for only 50 percent of employers' contributions to be made during the first year of hiring until the age of 25.

[06] Former PASOK minister Petsos to run on main opposition ND ticket

Athens, 21/01/2004 (ANA)

In statements to reporters after the meeting, Karamanlis expressed his pleasure that Petsos had ''responded to the invitation to overcome the dividing lines of the past'' and said he would make an important contribution to ND's election effort.

Petsos said his decision to change camps had been prompted by a desire to ''combat the arrogance and divisive policy of the government and its harsh policies that the recent leadership overhaul cannot possibly moderate.''

The former minister described himself as originating from the 'central political area'' and said that Karamanlis' invitation to him effectively extended the main opposition toward this area.

Petsos was a minister in several PASOK governments up to 1989 and he last ran for office in the local government elections of 1998 as an independent candidate, when he was elected prefect for Pella.

[07] President hosts annual reception in honor of Diplomatic Corps

Athens, 21/01/2004 (ANA)

Also present were Prime Minister Costas Simitis, Foreign Minister George Papandreou, Coalition of the Left, Movements and Ecology leader Nikos Constantopoulos, Economy and Finance Minister Nikos Christodoulakis, Alternate Foreign Minister Tassos Yiannitsis, Deputy Foreign Minister Yiannis Magriotis and Deputy Health Minister Vassilis Kontogiannopoulos who welcomed the foreign and Greek diplomats.

[08] Greek unemployment to fall to 7.17 pct by 2006, forecast

Athens, 21/01/2004 (ANA)

Its forecasts, based on the outlook of both the Greek and international economies, called for an unemployment rate of 7.17 percent by 2006 from an 8.9 percent currently.

The Commission also forecast that the Western Macedonia and Central Greece regions would maintain high unemployment rates by 2006 (11.0 percent and 11.4 percent, respectively).

Other Greek regions are forecast to record unemployment rates of 8.9 percent (Attica), 8.5 percent (Central Macedonia), 8.9 percent (Epirus), 3.0 percent (Crete), 6.3 percent (North Aegean), 4.9 percent (South Aegean), 8.0 percent (Western Greece), 5.6 percent (Thessaly), 4.5 percent (Peloponnese) and 3.7 percent (Ionian Islands).

[09] First Balkan forum of bank unions to be held in Athens on Friday

Athens, 21/01/2004 (ANA)

He told reporters that the aim of the forum, organized by EET, is to exchange information and start constructive dialogue on issues concerning the banking system in the broader region of southeast Europe.

Furthermore, EET will begin at the end of January a series of meetings with bank unions from all the European Union countries to discuss EU directives concerning banks.

[10] Greek trade deficit up 24.5 pct in January-August 2003

Athens, 21/01/2004 (ANA)

The widening deficit reflected a 17.2 percent increase in imports to 22.878 billion euros in the January-August period from 19.523 billion euros in the same period in 2002.

Exports totalled 7.746 billion euros, from 7.366 billion euros, over the same period respectively, for an increase of 5.2 percent.

[11] GNTO unions threaten with strike action

Athens, 21/01/2004 (ANA)

Alexis Papadopoulos, president of workers' union at GNTO, told ANA that a general assembly scheduled for Wednesday would decide on the union's actions.

Meanwhile, Development Minister Akis Tsohatzopoulos speaking to reporters said that GNTO has launched a "communication bombardment" of international markets in the framework of a promotion campaign ahead of the Athens 2004 Olympic Games.

The Greek minister reiterated his belief that the Olympic Games would contribute in boosting Greek tourism and that the Games would be successful.

[12] EU commissioner welcomes natgas pact between Greece, Turkey

BRUSSELS 21/01/2004 (ANA/B.Demiris)

The agreement between Greece's DEPA and Turkey's BOTAS was made at the end of December.

[13] Greek retail sales up 8.3 pct in January-September 2003

Athens, 21/01/2004 (ANA)

NSS said that the retail sales index rose 9.0 percent in September from the corresponding month in 2002.

The statistics agency, in its monthly report, said that bookstores, office supply stores and large super-markets recorded the biggest sale increases in the first nine months of 2003.

[14] Greek stocks end lower for second consecutive session

Athens, 21/01/2004 (ANA)

The general index dropped 1.32 percent to end at 2,436.81 points with turnover a healthy 171.5 million euros.

The Base Metals, Banks and IT sector suffered the heaviest percentage losses of the day (2.52 percent, 1.98 percent and 1.96 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 1.46 percent, the FTSE/ASE MID 40 index ended 1.43 percent lower and the FTSE/ASE SmallCap 80 index eased 0.98 percent.

Broadly, decliners led advancers by 243 to 68 with another 44 issues unchanged.

FOREIGN EXCHANGE

Closing rates of January 20 2004

Parities in euro

For. Exchange Buying Selling

US Dollar 1,263 1,234

[15] PM Simitis chairs Interministerial Committee meeting on Olympic Games

Athens, 21/01/2004 (ANA)

Both government officials expressed confidence that preparations for the Olympic Games will not be affected by the election campaign and referred to Thursday's cabinet meeting which is devoted to preparations for the Games.

Athens 2004 Olympic Games Organizing Committee (ATHOC) President Gianna Angelopoulos Daskalaki, asked whether she fears delays due to the March 7 general election in the country, said on her part ''I always worry.''

Daskalaki further said ''the preparation for the Olympic Games cannot stop or slow down its pace for any reason. Today, we examined issues which require handling. I can say that we are pleased with many issues.''

She indicated that what is important is for the preparation to continue with the same intensive and good pace during the election campaign as well and said ''there will be a new government, but our country has examinations to give regarding the standard of the Olympic Games it must show to the international community. This is a commitment we have undertaken and we expect no one to forget this commitment.''

According to reports, energy issues concerning the Olympic Games and minor delays concerning the construction of certain substations were also examined during the meeting.

[16] Gov't: Olympic budget for projects, events in Thessaloniki at 500 mln euros

Athens, 21/01/2004 (ANA)

Culture Minister Evangelos Venizelos, speaking from the city, said many of the projects included in the �Olympic� budget are necessary infrastructure works, while others serve to bolster the city�s bid to host the Expo 2008 event.

Along these lines, he said legislation passed specifically to reduce red tape ahead of the Games will be extended to Dec. 2008 for the Thessaloniki projects, part of efforts to improve and beautify the city for its expo bid.

[17] Court orders Ricomex to pay 2 million euros for victims of plant's collapse

Athens, 21/01/2004 (ANA)

The ruling concerned a civil suit brought against Ricomex by the families' of the six victims, who were among a total of 39 people killed when the building collapsed.

In its ruling, the court found that the board of directors was aware of the bad workmanship and design flaws in the building and had ignored the possibility of its collapse in the case of an earthquake.

Similarly, it said the civil engineers had contributed to making the building particularly vulnerable to earth tremors through action and omission.

The court also ruled that the statute of limitations for the offense involved began to apply from the moment that its damaging results occurred, in other words when the building collapsed and not from the time of its construction.

Both the Ricomex board of directors and the civil engineers involved also face charges of manslaughter with intent in connection with the 39 people killed in the Ricomex ruins and their trial has been set for March 24.

According to sources, those in charge of Ricomex claim that the company is incapable of paying the compensation awarded because it would be led to bankruptcy.

[18] Aegean ministry presents six presidential decrees for island buildings

Athens, 21/01/2004 (ANA)

The new decrees concern seven settlements on Amorgos, Megisti on Kastellorizo, 13 settlements on Samos, five on Lesvos, and the islands of Aghios Efstratios and Anafi.

The minister also announced that an initiative to rid the islands of inappropriate structures was completed with a law passed in November and procedures were underway for their partial or complete demolition and rebuilding through a method of incentives for their owners.

Sifounakis said the ministry had also persuaded the European Union to adopt Greek proposals for a new regime governing low-traffic ferry lines to the islands, increasing the duration of contracts from one year to six - or even 12 for islands with fewer than 100,000 passengers per year - in order to them a more attractive investment to ship owners and improve the quality of services.

[19] PM Simitis visits primary school in Athens

Athens, 21/01/2004 (ANA)

Awaiting him there were Education Minister Petros Efthymiou, PASOK Deputy Christos Papoutsis and the school's director Sotiris Vlahavas.

The prime minister had the opportunity to talk with the pupils, especially with the foreign pupils whom he encouraged to be fully incorporated in the Greek education system.

[20] Luxembourg PM to be proclaimed honorary citizen of Nea Orestiada

Athens, 21/01/2004 (ANA)

In a relevant proposal to the municipal council, the city's mayor Grigoris Tzotzolas referred to the prime minister's personality, both as a person and a politician, to his presence in Europe in general, to efforts he made for Cyprus' accession to the European Union and to geographic similarities between Orestiada and Luxembourg regarding its neighborliness with other countries.

In the afternoon, Junker will leave for the town of Komotini where he will be given an honorary doctorate by the law faculty of the Dimocritio University of Thrace.

[21] Greece and Italy top destinations of Albanian children

GJIROKASTER 21/01/2004 (ANA/B. Barkas)

As was announced during an open meeting held in Tirana by the Labor and Social Affairs Ministry, the European Council and the Balkan Stability Pact, 5,500 unprotected children are victims of such groups, while 1,500 of them are in Greece.

Albanian Labor and Social Affairs Minister Egeli Beitia said on his part ''they are unprotected children from Albania which have been in Italy and Greece since 1990 and are not victims of traffickers.''

However, he admitted that the phenomenon of children trafficking exists, terming it a scourge of countries going through a transitional stage and assured that the Albanian government is taking all necessary measures to prosecute children trafficking groups.

[22] Traffickers arrested for transporting illegal immigrants into Greece

Athens, 21/01/2004 (ANA)

Border guards stopped the Turkish truck on the Alexandroupolis-Orestiada motorway.

The border guards also arrested another three Turkish nationals, who were driving in a car ahead of the truck, as well as two Iraqis who smuggled the illegal immigrants in a dinghy, via the Evros River, to the region of Lagina.

The immigrants were to be transported to Athens and the traffickers were to be paid 3,000 dollars.

The truck, car and dinghy, as well as eight mobile phones, were confiscated.

[23] Spokesman says government wants solution process in UN context

NICOSIA 21/01/2004 (CNA/ANA)

Asked what President Tassos Papadopoulos meant when he said on Monday that third parties may try to blame the Greek side as well as Turkey if talks to reach a settlement fail, the spokesman said ''some powers may try to place us in the same fate as the other side, in an unfounded manner.''

Invited to comment on a statement by President Papadopoulos that he did not want any US intervention in the talks, Chrysostomides explained ''it has been determined for many years now that many governments had tried and still try to maintain the negotiations for a Cyprus settlement within the UN framework.''

''The effort of the new Turkish government is to divert from this context'' and include others in the negotiations, the spokesman said, noting that the president has been stressing that the US engagement should remain consultative to the UN efforts.

''The government and the President of the Republic want the whole process for a Cyprus settlement to remain within the UN context and I think the whole National Council agrees on this,'' the spokesman added.

The National Council is the top advisory body to the President on the handling of the Cyprus problem.

Invited to comment on Monday's statements by Turkish Foreign Minister Abdullah Gul, who dismissed setting dates for referenda before a solution, the spokesman said ''our position is that setting a date for referenda before the commencement or conclusion of talks is an aim that cannot be materialized.''

''Our position is yes to a referendum, as long as there is an agreement,'' the spokesman noted.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third.

[24] Cyprus FM: time running short for solution by May 1

NICOSIA 21/01/2004 (CNA/ANA)

Speaking at a lunch, hosted by CNA for foreign correspondents, the minister also said that UN Secretary-General Kofi Annan will decide on future strategy once he has before him all information, following various meetings between Turkey's premier Recep Tayyip Erdogan and himself, Erdogan and US President George Bush and a crucial meeting of Turkey's powerful National Security Council.

Iacovou reiterated the government's readiness to return to the negotiating table and work for a solution on the basis of the Annan plan but noted that Ankara has yet to formulate its own positions on Cyprus.

Iacovou said Nicosia and Brussels are working out arrangements that would be in place by May 1 to regulate the implementation of the Schengen Agreement, relating to movement of people and other such concerns.

''We need time to agree on a settlement, time is very short,'' the minister said, when asked about the prospects of clinching a deal by May 1, reiterating that the Greek Cypriot side is ready to negotiate ''with good will and flexibility on the basis of the Annan plan, whose basic philosophy and parameters we accept.''

He said Western governments had said that there can be no talks as long as Rauf Denktash, leader of the Turkish Cypriot community, remains negotiator.

''Well Mr Denktash is still interlocutor,'' he added, noting that Turkey has not yet decided its own strategy on Cyprus.

Taking all factors into consideration, he pointed out, the first probable day for the resumption of talks realistically would be sometime in the second week of February.

The minister said that Turkey does not appear to want a solution by May 1 and explained that the question of Turkey's relations with the EU and future accession, with all that entails, has not yet been decided in the country itself.

He also explained that if there is a solution by May 1, the Turkish Cypriots will have to introduce such changes as to ensure compliance with the EU rules and regulations. The Cyprus House of Representatives, he said, has already passed 1,600 laws in this respect.

Replying to questions, he said so far the signals from Ankara are disappointing but said recent statements by Erdogan are both encouraging and discouraging.

The minister said there is a strong interest on the part of the US for a settlement before May 1, not only because Washington favors Turkey's membership but also because it believes this would also serve their own interests, in addition to eliminating a thorny issue between two NATO allies (Greece and Turkey).

Asked about the Annan plan, he said there can be amendments to the plan relating to the functionality of the new state, compensation with regard to property and transitional arrangements.

On problems which might arise from accession without a settlement, relating to the Schengen Agreement, the minister said the EU and Nicosia are in consultations to agree to the arrangements that will be in place.

''We have persuaded the EU that arrangements must be easy and flexible, not similar to border control arrangements, we are working with the EU to agree on a directive on this matter and hope to have everything in place before May 1,'' he explained. On the risk of seeing the illegal regime in occupied Cyprus recognized, he said this possibility exists but the risk is moderated by Cyprus' accession and said that possible penalties from such a development will also have to be taken into consideration.

[25] Irish FM hopes for progress in Cyprus issue

BRUSSELS 21/01/2004 (CNA/ANA)

Cowen was speaking before the European Parliament Committee of Foreign Affairs, where he presented the Irish presidency's priorities in the field of external relations.

He said the Irish presidency supports UN efforts to reach a Cyprus settlement based on the twice-revised solution plan proposed by UN Secretary-General Kofi Annan, before May 1, when Cyprus will officially become a full member of the EU.

Referring to Turkey's European aspirations, Cowen welcomed Ankara's reforms to meet the EU political criteria, and called on the Turkish government to accelerate and apply them in practice.

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