Athens News Agency: Daily News Bulletin in English, 04-01-31

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

CONTENTS

[01] PM unveils new Olympic press centre

[02] FM and Cyprus president hold repeated telephone conversations on Annan talks

[03] Prodi sees small, good window of opportunity for Cyprus settlement

[04] FM Papandreou continue election swing through N. Greece

[05] FM Papandreou outlines new model of governance in Kozani

[06] ND leader Karamanlis addresses rally in Ptolemaida

[07] Commissioner Diamantopoulou to lead PASOK's state deputies list

[08] Public order minister to visit Moscow on three-day official visit

[09] ND cadre Varvitsiotis won't stand in March 7 election

[10] President hosts reception in honor of armed forces

[11] Greek economy: weekly review

[12] Improvement in corp. profitability smaller than desired due to euro appreciation

[13] Government won't bow to striking flight attendants

[14] Development minister says declassification of Kaiafa lake area never requested

[15] Hyatt Regency brushes off new court case over casino tender

[16] Greek stocks rebound strongly on Friday

[17] Five-member gang arrested on drug smuggling, burglary charges

[18] Bodies of 5 illegals found in Evros; search continues at sea for others

[19] Trikala prefecture declared "GM-free zone"

[20] Papadopoulos says Annan still undecided over Cyprus talks

[21] Annan to contact parties before deciding on Cyprus talks

[01] PM unveils new Olympic press centre

Athens 31/01/2004 (ANA)

The OAKA complex includes the main stadium (Opening and Closing Ceremonies, the athletics events), the tennis venue, as well as the Olympic Indoor Hall (gymnastics artistic, trampoline and the basketball finals), the velodrome and the Olympic Aquatic Centre � all within a short distance from the MPC.

�Olympic projects are being continuously delivered (to organizers); they�re changing the image of Greece and proving that every euro is well spent,� Simitis said, a reference to the post-Olympics use of facilities and venues. The MPC will house the state-run general sports secretariat and the newly created firm Olympic Real Estate S.A.

�If in 1996 someone had said Greece would in the near future host Olympic Games, he would have been met with astonishment,� he added.

[02] FM and Cyprus president hold repeated telephone conversations on Annan talks

Athens 31/01/2004 (ANA)

Papandreou had conversations with the Cyprus president both before his meeting with Annan and immediately afterwards for a briefing on its content, while he is also due to communicate with Annan himself on Friday.

According to foreign ministry spokesman Panos Beglitis, the Cyprus president notified Papandreou that he had a very constructive discussion with Annan, reiterating to him that the Greek Cypriot side is ready to begin talks on a solution to the issue of Cyprus based on the Annan plan ''even as of tomorrow morning if the secretary general decides such a thing himself.''

[03] Prodi sees small, good window of opportunity for Cyprus settlement

BRUSSELS 31/01/2004 (ANA/ V.Demiris /CNA)

Asked after his meeting with Cyprus President Tassos Papadopoulos, on Friday in Brussels, whether the issue of the Cyprus EU Commissioner was discussed Prodi said: ''we discussed it frankly and friendly and in very few days we shall take a common decision''.

In his statements President Papadopoulos agreed there is a window of opportunity noting that the Greek Cypriot side will make the best of it because enough time has been wasted.

Answering to another question President Papadopoulos stressed that ''our firm decision is to see a reunified Cyprus in the EU by 1 May and despite of what many people think there are serious practical problems to arise if we don't reach a conclusion for a reunified Cyprus by 1 May''. ''Let's say the problems may become more difficult in the future but if by 1 May we don't achieve the desired result we are not going to abandon the efforts, on the contrary, I would say we will redouble our effort and consistently ask for further negotiations so as to solve the Cyprus problem and our country to be reunified once again'', the president said.

Prodi said that he had a friendly meeting with the Cyprus president ''on the outstanding problem that we have on the table''.

''As you know Cyprus will become member of the Union may 2004 and it is also clear that there is an outstanding problem that we want to tackle, the settlement of the Cyprus situation'', Prodi said. He added he told Papadopoulos ''the time is short'' but he is convinced there is a good window of opportunity now, noting that he discussed the issue two days ago during his meeting with UN Secretary General Kofi Annan.

Noting the Commission is clearly ''backing the UN plan'' Prodi also underlined that to have a speedy solution there are many technical and financial difficulties, adding the ''Commission's engagement to help in order to solve these problems''.

''Let's say we are ready to give all our technical assistance that is needed'', said the Commission's president, noting also the ''engagement to call for a donors' conference if necessary and if agreed''.

He further clarified ''the Commission is not a mediator, we do not play this role but we are here to help the UN and both sides in order to have an agreement and in order to implement the acquis communautaire''. ''This is our position and I repeat that there is a window of opportunity, a small window, because 1st of May is three months ahead and the process is not a short process but we can do it'', Prodi concluded.

President Papadopoulos thanked Romano Prodi ''for spending time to see us'', adding that he informed him of his good meeting Thursday with UN SG Kofi Annan.

FM Papandreou: Meanwhile, Foreign Minister and PASOK party leadership candidate George Papandreou held repeated telephone conversations with Papadopoulos on Thursday night regarding the latter's talks with UN chief Annan.

Papandreou had conversations with the Cyprus president both before his meeting with Annan and immediately afterwards, while he is also due to communicate with on Friday.

According to foreign ministry spokesman Panos Beglitis, the Cyprus president told Papandreou that he had a very constructive discussion with the UN chief, reiterating to him that the Greek Cypriot side is ready to begin talks on a solution to the issue of Cyprus based on the Annan peace plan "even tomorrow morning if the secretary general decides such a thing himself."

[04] FM Papandreou continue election swing through N. Greece

Athens 31/01/2004 (ANA)

In brief addresses in the industrialized district, due to several power stations and lignite fields, Papandreou referred to the state�s strategic interest in the in the east Mediterranean country�s energy sector.

Other comments covered his policy vis-a-vis lignite production, higher education.

In a direct reference to the main opposition New Democracy party, he dismissed criticism that he has �been absent�.

�In reality, they (ND) are afraid I will be present; I am with you in this dialogue, I am with you in the struggle and after the election,� he said

[05] FM Papandreou outlines new model of governance in Kozani

Athens 31/01/2004 (ANA)

Papandreou said the model he has in mind concerns new attitude models, new administration models and new society models.

Referring to new attitude models, he said they concern a moral revolution to enable political personalities and political parties to comply with the codes and scales of the citizens' values.

On the question of new administration models, the foreign minister focused on the simplification of procedures, the combatting of bureaucracy, the offering of better services to the citizen and the adjustment of services to the specifications and needs of the society of knowledge, informatics, entrepreneurship and innovation.

Papandreou categorically rejected talk of re-establishing the state, underlining that ''the main opposition New Democracy party wants to turn things upside down, to raise its own people again and bring ours down.'' He added that ''this is not governance, it is the dissolution of everything, it is not progress it is a turnaround.''

The foreign minister said the solution lies ''in reforming the state and turning it into an inspirer of society.'' He further said that what is necessary for this solution to be achieved is for ''attention to be focused on restoring transparency, combatting corruption and removing administrative inertia and managing ignorance.''

Papandreou also announced a reconsideration of economic policy, at least with regard to priorities linked to obligations of the country emanating from accession to EMU.

He clarified that this reconsideration will be aimed at benefiting regions ''which did not benefit as much as they should have from the country's overall development, as well as social groups which did not benefit as much as they were entitled to from the increase in national wealth.''

Papandreou addresses campaign rally in Trikala: Foreign Minister and PASOK leadership candidate George Papandreou, addressing an election campaign rally in Trikala, central Greece on Friday evening, said that major infrastructure works would be completed and that the income of farmers would be guaranteed.

Proclaiming that PASOK will win the March 7 general elections, he said that "the new four-year term will be a period for the provinces," promising that "significant capital from the Community Support Framework (CSF) and from national funds will be allotted to the provinces, aimed at agricultural development."

[06] ND leader Karamanlis addresses rally in Ptolemaida

Athens 31/01/2004 (ANA)

In reply to criticism by Papandreou that he was ''copying his ideas and proposals, Karamanlis said:� is it possible for one to copy a blank sheet?.''

Karamanlis stressed that ND "have a clear-cut program, specific proposals and studied positions and views.''

Expounding on his party's program, Karamanlis said that ''once in power,'' the ND will concentrate on ''education, culture, the economy and the refunding of the state.''

He also referred to the problem of unemployment ''plaguing the prefecture of Kozani.''

After his speech, Karamanlis visited the Town Hall of Ptolemaida. On Saturday, the ND leader will address a rally in Florina.

[07] Commissioner Diamantopoulou to lead PASOK's state deputies list

Athens 31/01/2004 (ANA)

Meanwhile, she denied that she will assume the post of PASOK secretary, in place of Mihalis Chrysohoidis.

[08] Public order minister to visit Moscow on three-day official visit

Athens 31/01/2004 (ANA)

Floridis and Russian officials will be discussing issues of bilateral concern, particularly issues related to the security of the Olympic Games, according to a relevant announcement by the public order ministry.

[09] ND cadre Varvitsiotis won't stand in March 7 election

Athens 31/01/2004 (ANA)

Instead, Varvitsiotis � who represented voters in Athens� second election district � will lead the party�s Euro-deputies� list in the June European Parliament elections, according to main opposition leader Costas Karamanlis.

The ND leader first praised the former defence minister and European Peoples Party (EPP) vice-president�s contribution to the party and the country, before noting that he is now called upon to serve ND and Greece from another position.

[10] President hosts reception in honor of armed forces

Athens 31/01/2004 (ANA)

Present at the reception were Parliament President Apostolos Kaklamanis, Defence Minister Yiannos Papantoniou, former prime minister Constantine Mitsotakis and the leadership of the armed forces and security corps.

[11] Greek economy: weekly review

Athens 31/01/2004 (ANA)

The Commission stressed that the Greek program was based on a macro-economic scenario of high growth rates justified by high public and private investments related with the Athens 2004 Olympic Games and continuing significant inflows of funds from a Third Community Support Framework program until 2006.

The EU's executive, however, expressed its worry for the government's decision to roll-over its efforts of fiscal balancing largely for the years after 2004.

In other headline news this week:

Fresh farm produce prices are rising by as much as 106 percent in the last two weeks reflecting problems suffered in the domestic market by severe weather conditions around the country. Officials from the Development ministry expect prices to continue rising by the end of February at rates exceeding the inflation rate.

The Greek mobile telephony market, after eight years of relentless growth, is finally maturing with growth rates in new connections falling steadily since 1999, a report by the Institute for Industrial and Economic Research (IOBE) said this week. The report said that average growth rates for new connections would range between 3-5 percent annually in the period 2003-2006, compared with an average annual growth rate of 57 percent in the period 1996-2001. The number of subscribers (both contract and pre-paid) in the mobile telephony market totalled 10.4 million in the first six months of 2003, the report.

ELVAL SA inaugurated an aluminium can recycling centre with a processing capacity of 2,800 tones of cans annually.

One in two Greek retailers reported worse results in their sales in the Christmas period, a report by the National Confederation of Greek Commerce said. The report revealed that 48.53 percent of total Greek retailers said that sales were lower compared with the same period in 20022, while 54.70 percent of consumers use cash in their transactions with 37.35 percent use credit cards.

A total of 24,779 cars (new or used ones) were registered in the domestic market in November, the National Statistics Service said this week, with the number of new registrations totalling 305,223 cars in the period January-November, down 1.5 percent from the same period in 2002.

The Athens Stock Exchange decided to suspend trading in Intersat's shares after a decision by an Athens court of first instance to declare the company bankrupt.

The Union of Greek Tourist Enterprises (SETE) warned over developments in the domestic sea cruise industry in the wake of a decision by Royal Olympic Cruises to seek court protection from its creditors. SETE said that the port of Piraeus has lost out to Istanbul and Venice as a centre of sea cruises and warned that the Greek sea cruise sector was in danger of collapsing.

Greek annual inflation slowed to 3.1 percent in December 2003 compared with the same month in 2002, the National Statistics Service said. NSS said that the harmonized inflation rate was also 3.1 percent in December.

[12] Improvement in corp. profitability smaller than desired due to euro appreciation

Athens 31/01/2004 (ANA)

The analysts of the country's largest bank noted that, consequently, any forecasts on corporate profits, and consequently on the European bourses, would also be influenced by the future course of the euro.

More specifically, the euro's strong appreciation since September 2003 does not appear to have substantially influenced the profitability of European business to now, given that many enterprises are employing strategies that offset the foreign exchange risk, which in the short-term neutralize the effect of the parity fluctuations on company profits.

However, the analysts add, as the upward course of the euro appears to be continuing, the negative impact of the euro's appreciation on company profits will become apparent in 2004.

[13] Government won't bow to striking flight attendants

Athens 31/01/2004 (ANA)

''There is no more leeway....The pay that the company has offered the flight attendants is higher than that given by the airline's Greek competitors,'' Verelis said in an interview to a radio station.

''All the airline's unions except flight attendants accepted the measures brought in by the government to create Olympic Airlines from Olympic Airways,'' the minister added.

[14] Development minister says declassification of Kaiafa lake area never requested

Athens 31/01/2004 (ANA)

Constantopoulos had said that for hotels, golf courses and other installations to be built in the area, the deputy ministry had prepared a supplement for the bill on spa tourism (it was withdrawn at the relevant Parliamentary committee by Tsohatzopoulos last Wednesday).

Constantopoulos added that ''for the clause to be implemented, the area had to be declassified first.''

Tsohatzopoulos pointed out that ''ETA had never requested a declassification of the Kaiafa area," reiterating that the region belonged to the NATURA 2000 program and was governed by a specific building control zone.

[15] Hyatt Regency brushes off new court case over casino tender

Athens 31/01/2004 (ANA)

The charges of fraud and breach of trust were brought against any party responsible after the case was shelved and then reopened in summer 2003.

Also buying into 49 per cent of the casino with Hyatt was Hellenic Technodomiki, which is also listed on the Athens bourse.

The losing consortium, which comprised Loutraki Casino and Athens-quoted Piraeus Bank, in the international privatization tender took court action citing a lack of transparency in the sale process, but was overruled.

Friday's charges were a continuation of moves by prosecutors in summer 2003 against members of the state tender process and objections committees; and against the managing director of Hellenic Real Estate, the Greek National Tourism Organization�s real estate arm, and manager of the disputed tender.

Hyatt Regency said in a statement that the sale process had repeatedly been subject to judicial scrutiny and exonerated in five suits brought by the losing consortium, gaining endorsement from the State Legal Council and the European Union's executive Commission.

[16] Greek stocks rebound strongly on Friday

Athens 31/01/2004 (ANA)

Buying interest focused on bank and telecommunications stocks, pushing the general index 1.71 percent higher to end at 2,432.58 points. Turnover was a significantly improved 190.9 million euros.

All sector indices ended higher, with the Telecommunications and

Food-Beverage sectors scoring the biggest percentage gains of the day, (3.04 percent and 2.83 percent, respectively). The Base Metal and Bank sectors followed with gains of 2.76 percent and 2.54 percent, respectively.

The FTSE/ASE 20 index for blue chip and heavily traded stocks ended 1.98 percent higher; the FTSE/ASE MID 40 index rose 1.15 percent and the FTSE/ASE SmallCap 80 index ended 1.37 percent higher.

Broadly, advancers led decliners by 241 to 65, with another 49 issues unchanged.

Derivatives Market Close: Turnover at 186 mln euros Friday

FOREIGN EXCHANGE

Closing rates of January 30 2004

Parities in euro

Banknotes

For. Exchange Buying Selling

US Dollar 1,248 1,219

[17] Five-member gang arrested on drug smuggling, burglary charges

Athens 31/01/2004 (ANA)

They said the gang members would visit the capitals of various European countries from where they would then smuggle drugs into Greece themselves or in unescorted packages sent by coach, mainly via Italy.

Police found in their possession and confiscated 3.5 kilos of processed hashish, 700 grams of unprocessed hashish, 290 grams of cocaine, stolen and forged Greek passports and drivers' licenses, firearms and ammunition, jewelry, burglary tools, as well as a variety of rubber stamps and seals.

The detainees, believed to have been active in Greece for the past 5 months, have been linked to burglaries of homes Kifisia and Ekali, from where they stole jewelry, video-cameras and other valuable goods, as well as to a burglary at the Larissa prefecture building last July during which a large number of passports were stolen from a safe. One of the stolen passports was found in their possession after their arrest. Some of the other stolen valuables were also found in their possession.

Police were investigating the gang's involvement in more crimes.

[18] Bodies of 5 illegals found in Evros; search continues at sea for others

Athens 31/01/2004 (ANA)

Police said the bodies belonged to Asian males, aged between 20 and 30 years old, while an initial investigation did not indicate foul play.

The five victims are believed to have crossed the Evros River from neighboring Turkey. However, they apparently lost their direction during a snowstorm in the area.

The body of another man, linked to the same group, was found in the same area several days ago.

Meanwhile, coast guard officers searching for 17 illegal immigrants who went missing on Thursday when a boat hauling them from Turkey sank off the rocky islet of Petalioi, SW of Evia island, found three bodies on Friday.

According to authorities, the bodies were located at a significant in a bay off the islet, with their recovery almost impossible.

Wreckage of the boat was also found at the same spot, while the bodies of two women were washed ashore and had been recovered on Thursday by a trawler.

Although hopes of locating any of the missing illegals alive are slim to none, the search effort will continue until further notice. Twenty-six illegal immigrants survived the vessel�s sinking and have been picked up by authorities.

[19] Trikala prefecture declared "GM-free zone"

Athens 31/01/2004 (ANA)

The decision was taken during the council's meeting on Thursday night.

Assistant prefect Babils Deliligias told the meeting there was mobility on the GM issue in the European Union prompted by citizens to ensure that produce from conventional and organic cultivations is not tainted with GM cultivations.

He added that there would be no immediate repercussions on agricultural cultivations in the prefecture, since no GM seeds are not in use, at least to the present.

At the same time, he continued, when the GM produce does appear on the markets, the Trikala prefecture would not be subject to the restrictive measures of the guidelines for the creation of safe zones between GM and non-GM cultivations.

[20] Papadopoulos says Annan still undecided over Cyprus talks

NICOSIA 31/01/2004 (CNA/ANA)

The president made the statement upon his return from a visit first to Strasbourg, during which he addressed the Parliamentary Assembly of the Council of Europe, and then to Brussels, where he met UN Secretary-General Kofi Annan and European Commission President Romano Prodi.

Asked whether he had ascertained a change in the Turkish positions on Cyprus, President Papadopoulos replied, ''Not anything more than you know."

He said Annan informed him on his meeting with Turkey's Prime Minister Recep Tayyip Erdogan. ''Erdogan has made statements setting out conditions, which I believe have not been interpreted correctly by the press," the president added.

Asked if US Secretary of State Colin Powell will visit Athens, Ankara and Nicosia, President Papadopoulos said ''the US has always shown and still shows interest on how the talks progress and its interest might include some kind of involvement by Mr. Powell which might not be official or within the framework of the negotiations."

President Papadopoulos said the interest of the US and other countries in a Cyprus settlement is a fact, and the Americans, through their Special Coordinator Thomas Weston, are continually involved in the talks.

''Their desire is to find a solution, encourage and advise the two sides to proceed so that the problem can be solved before the 1st of May, something that we want and pursue and something that they have accepted. I think you have heard Mr. Powell's statements that he will not be a negotiator or facilitator, or have a direct involvement."

The president said neither the UN Secretary-General would like Powell to have such a role nor the EU, nor Powell himself was pursuing such a thing.

He further said he was in constant communication with Greek Prime Minister Costas Simitis and Foreign Minister George Papandreou.

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

[21] Annan to contact parties before deciding on Cyprus talks

BRUSSELS 31/01/2004 (CNA/ANA)

Annan had a telephone conversation on Thursday night with US

Secretary of State Colin Powell, with whom he discussed the latest developments on Cyprus.

Replying to a question in Brussels during the opening of the Regional European offices of the UN, Annan said Powell assured him he would intensify efforts to solve the Cyprus problem.

The UN Secretary-General added that during the previous efforts to solve the Cyprus problem he had the support of the envoys of Great Britain, the US and the EU.

Annan said he believed everyone's support would continue, since time is limited, and expressed hope that both sides will come forward to the negotiating table with specific ideas and ready to proceed.

He described the discussion he had on Thursday night with Cyprus President Tassos Papadopoulos as ''constructive'', adding that he was assured by Papadopoulos on the determination of the Greek Cypriot side to begin negotiations, the soonest, on the basis of his solution plan.

Annan also said that President Papadopoulos had asked him to guarantee that the negotiations would start and all necessary work would be done prior to 1st May, when Cyprus will officially join the EU.

The UN Secretary-General said he wanted to hear the Turkish Cypriot side and contact the Greek government as well. count: Command not found.

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