Athens News Agency: Daily News Bulletin in English, 06-01-28

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

CONTENTS

[01] SEECP transport ministers sign rail cooperation memorandum

[02] Deputy FM meets separately with Serbian, Bosnian ministers

[03] President Karolos Papoulias to meet Pope Benedict XVI in Rome on Saturday

[04] PASOK leader briefs British foreign sec. Straw on rejection of Turkey's Cyprus proposal

[05] Turkish PM says he respects Greece's decision to reject Turkish proposal on Cyprus

[06] PM meets with alternate culture minister, top ND Euro-MP

[07] Palestinian election result respected, violence to be rejected

[08] Main opposition leader addresses Socialist International Women's conference

[09] SI's Ayala calls on Hamas to continue Mideast peace process

[10] Efforts focus on resuming power supply to Cephallonia, Ithaca

[11] SYN delegation meets with Iranian embassy attach�

[12] Greece needs to reform its pension system, FinMin says

[13] Opposition party raps gov't over social insurance

[14] PM briefed over tourism policy issues

[15] Quality of service definitive factor in tourism development, Minister says

[16] Tourism equipment trade fair opens

[17] Deputy FM Evripides Stylianidis outlines extroversion steps planned by Greek economic diplomacy

[18] Greek investors seek real estate assets in Bulgaria

[19] Swifter procedures planned for foreign investments

[20] Northern Greece Exporters Federation signs cooperation memorandum with Israel's Institute of Exports

[21] Wine-tasting evening held at Greek Embassy in Washington

[22] State hospital procurement system in need of overhaul, Ombudsman says

[23] Athens Bourse Close: Stocks drop in short-term profit-taking

[24] Noted virologist calls for European strategy for bird flu pandemic

[25] 'Hidden Children in Occupied Greece' exhibition debuts at American Sephardi Federation

[26] N17 appeals trial continues

[27] Cyprus President says UN chief to send envoy to Cyprus after elections

[28] Erdogan - Annan discuss Cyprus problem

[29] Cyprus-France relations meeting takes place in Limassol

[30] Archbishop Demetrios continues visit to Cyprus

[01] SEECP transport ministers sign rail cooperation memorandum

ATHENS, 28/1/2006 (ANA)

SE Europe may be situated in the periphery of the European Union, but it should not find itself in the periphery of development, Liapis told the meeting, adding that the goal of the current Greek presidency of the group (for the period 2005-2006) was to boost the competitiveness of the region's rail transports, which in turn would attract more passengers and cargoes.

He welcomed the agreement as a "bold venture for upgrading the transport infra-structures in SE Europe, the promotion of the railway as an environment-friendly means of transport, the promotion of tourism, and also the sustainable economic development of the region, as well as rendering Greece a protagonist in developments in the region.

The in-principle agreement, which was signed by the transportation ministers of Albania, Bosnia-Herzegovina, Bulgaria, Croatia, FYROM, Greece, Moldova, Romania, Serbia-Montenegro and Turkey, ushers in a new era in rail connection among the countries of the region, with the goal being to boost the competitiveness of rail transports in SE Europe, improve the quality of services offered, and substantially reduce travel time along the strategic sections of the region's rail network.

The first stage of the ambitious scheme, which covers a network of 14 rail axes, is slated for completion in 2013, while the second stage is envisaged to be completed in 2020.

According to the memorandum, "mild" interventions will be made in the first stage aimed at increasing the speed of passenger trains to 130 kilometers per hour, with the prospect of speed reaching 160 and even 220 kilometers per hour along certain stretches of the network, while the speeds of the cargo trains will also be accordingly adjusted.

The memorandum further foresees the limitation or elimination of obstacles at cross-border crossings, and the simplification procedures, coordination of the timetable of the projects currently underway or being planned at bilateral and multilateral level, and seeking new funding vehicles (EU, international financial institutions), etc.

Greece was selected during the conference to chair the Steering Committee that will promote the implementation of the agreement, and also the Technical Secretariat that will undertake the technical support of the project.

Addressing the meeting earlier, Liapis and deputy foreign minister Evripides Stylianidis said that SE Europe was situated in the periphery of the EU, but it must not find itself in the "periphery of development".

The goal of the Greek presidency (of the SEECP) was to boost the competitiveness of rail transports in SE Europe, which would attract more passengers and goods, Liapis said.

To achieve that goal, it is necessary to increase the speed of rain transports (from 60 kilometers per hour today to 160 kilometers per hour in the intermediate term), reduce delays, particularly at the cross-border crossings, and upgrade the quality of services provided to passengers, Liapis said, adding that all these elements were contained in the memorandum that would be signed at the end of the conference.

Regarding the financing of the networks, the memorandum provided for investigating the prospects of national and international, public and private resources.

Addressing the conference in turn, Stylianidis said that the modernization of the region's road and rail axes was expected to contribute substantially to improving the economies of SE Europe, and he cited recent activities aiming at opening up new cross-border axes and crossings with neighboring countries and the materialization of major road projects of European-wide interest.

He noted the recent inauguration of the Greek-Bulgarian Friendship Tunnel, and the plans for two additional border crossings with Bulgaria, progress in works on the new Komotini-Nymfaia-GrecoBulgarian border highway, and the plans for a new highway linking Xanthi with Bulgaria.

Greek prime minister Karolos Papoulias and his Bulgarian counterpart Georgi Purvanov in early December inaugurated a tunnel constructed to facilitate the opening of the new border crossing between the two countries at Exochi, in Drama. The new Ilinden-Exochi border crossing links Drama with the neighboring Bulgarian city of Goce Delcev. The initial agreement for the opening of the new border crossing was signed in 1995. It is the first of three new border checkpoints between Greece and Bulgaria provided for in the bilateral agreement, aimed at alleviating congestion at the other busy border posts between the two countries. The other two future border crossings will connect Komotini with Kurdzhali, and Xanthi with Rudozem.

He also said that upgrading was being advanced of the Trans-European Corridor 4 (Thessaloniki-Sofia).

Regarding Turkey, Stylianidis said that at the latest meeting of the joint interministerial economic cooperation committee, it had been decided to proceed with the establishment of a second bridge in the Kipi-Ipsala region, with Greek funding, aimed at decongesting the existing crossing, while a new coastal link was being examined in the northern part of the Aegean.

On the Trans-European Corridors, he said the Greek government's priority was the upgrading of Corridor 10 into a high-specifications highway, which would ensure the speedy and safe link of Thessaloniki, Skopje and Belgrade, and from there to the European markets. The project, he added, would be funded by Greek resources and by international financial institutions (i.e. the European Investment Bank).

Stylianidis noted that Greek premier Costas Karamanlis was running a strong "economic diplomacy" campaign, adding that during his recent visits to the US, China and Japan, the Greek effort had focused on the Balkan region, with the aim of encouraging investments in the region and assisting the development of entrepreneurship through the projection of Greece as a part of the whole called SE Europe.

"Our proposal is the establishment of headquarters of international business groups in Greece, with production units in the Balkans, thus encouraging cooperation among our countries and growth," Stylianidis concluded.

[02] Deputy FM meets separately with Serbian, Bosnian ministers

ATHENS, 28/1/2006 (ANA)

Talks with the former centered on implementation of a major Pan-European highway axis and the possibility of Belgrade requesting EIB financing. Athens has also expressed an interest in offering financing the scheme

Exploiting Greek funding available via the plan, and especially the course of ongoing work on a government building in Sarajevo, aptly renamed the Greece-Bosnia Herzegovina Friendship Building, was discussed in the Stylianidis-Dokic meeting.

[03] President Karolos Papoulias to meet Pope Benedict XVI in Rome on Saturday

ROME, 28/1/2006 (ANA-MPA)

President Papoulias met with representatives of the Greek community in Venice on Friday morning and afterwards he attended a church service at the Greek Orthodox Church of Saint George.

The president visited the Greek Institute in Venice and was given a guided tour of the premises, where the old archives of the Greek community, dating back to the 15th century, are kept.

The Greek Institute of Byzantine and post-Byzantine studies of Venice was established in 1951, following a cultural agreement between Greece and Italy, while in 1953 the historic Greek Orthodox brotherhood of Venice decided to offer the management of its property to the Institute.

The Greek Orthodox brotherhood was the most important Greek community abroad and 1498 was a considerable milestone in its history, when the Republic of Venice gave the Greeks in the city permission to establish the brotherhood of the Orthodox Greeks.

In the mid-17th century, the brotherhood utilized a bequest made by Corfu lawyer Thomas Flanginis and established one of the most important foundations, the Flanginio School.

On Friday evening, President Papoulias also toured the Institute's Museum of Icons.

[04] PASOK leader briefs British foreign sec. Straw on rejection of Turkey's Cyprus proposal

ATHENS, 28/1/2006 (ANA)

Straw arrived in Athens on Thursday afternoon on the final leg of a brief visit to new EU member Cyprus, Turkey and Greece.

In statements to the press after the 45-minute meeting, Papandreou stressed that Turkey must fulfill its obligations to the European Union and to the EU member states without exception or divergence.

"This is the main reason for the rejection of the Turkish initiative, given that we cannot accept that exchanges be given to Turkey in return for (fulfillment of) its obligations, and especially when the exchanges concern, in essence, recognition of the (self-styled Turkish Cypriot pseudo-state, which is recognized only by Ankara, in the) occupied sector," Papandreou explained.

The Turkish proposals, unveiled earlier this week by Turkish foreign minister Abdullah Gul, have been rejected by the Greek and Cyprus governments as a rehashing of inconclusive proposals that had been tabled in May.

Papandreou further stressed that there must be great caution in visitis made to Cyprus, particularly to the Turkish-occupied sector, so as to avoid polarization. He said the way in which Straw's visit had been organized "did not help" in a climate of cooperation and understanding between the two sides on Cyprus.

Papandreou cast blame on prime minister Costas Karamanlis personally, for the fact that "we have reached the position where Greece is on the defense and Turkey has the initiative". This, he continued, resulted from "the government having missed two huge opportunities", while "its policy is characterized by timidity and lack of initiatives".

Questioned on the outcome of the Palestinian elections, which he also discussed with Straw, Papandreou said he does not consider it a negative development.

"The international community must acknowledge, first of all, that the elections were democratic ones," the PASOK leader said, adding that "Hamas must be given the opportunity to show its true intentions on the peace process, democratic operation, and the non use of violence".

He opined that if the international community moved in that direction, "perhaps there will be positive developments".

Also attending the Papandreou-Straw meeting were PASOK officer for foreign affairs and defense Christos Papoutsis, the corresponding coordinator of the party's parliamentary group Michalis Chryssohoidis, the head of Papandreou's diplomatic office Dimitris Droutsas, and Papandreou's press spokesman Nikos Ziogas.

[05] Turkish PM says he respects Greece's decision to reject Turkish proposal on Cyprus

ISTANBUL, 28/1/2006 (ANA-MPA/A. Kourkoulas)

Replying to questions by the Turkish press, accompanying him to Davos in Switzerland, Erdogan said "we must not forget, however, that we secured support from many regions" and reminded of "support by Italy and Spain."

Lastly, the Turkish prime minister said that "the EU's commissioner responsible for enlargement Mr. (Olli) Rehn made a positive statement. There is the announcement by Britain" and that "we are now awaiting the completion of the work of the UN secretary general on the issue."

[06] PM meets with alternate culture minister, top ND Euro-MP

ATHENS, 28/1/2006 (ANA)

Karamanlis, in fact, holds the culture ministry portfolio.

Afterwards, the minister told reporters that the premier briefed her over the agreement's implementation, while she informed him of an ongoing process to grant permanent status to nearly 3,000 employees at various ministry-affiliated services and bureaus who over the previous decade or so worked with hourly contracts.

Along those lines, Palli-Petralia said a proposed constitutional revision to grant permanent status employees in the wider public sector the right to advance and achieve promotions is extremely significant.

In an unrelated development, the premier also met on Friday with veteran New Democracy cadre and former minister Yiannis Varvitsiotis at his office, as the latter heads the ruling party's Euro-deputies group in the European Parliament.

EU issues and constitutional revision were reportedly discussed.

[07] Palestinian election result respected, violence to be rejected

ATHENS, 28/1/2006 (ANA)

He stressed, however, that the winning party Hamas must adhere to the fundamental democratic principle of rejecting violence.

"This is a principle that will contribute to a solution of the problem," he said.

[08] Main opposition leader addresses Socialist International Women's conference

ATHENS, 28/1/2006 (ANA)

He said that one of the key changes he made as president of PASOK was to establish that women constitute 40% of the party's elected bodies.

"Women promote global values in a world with diverse cultural realities. This issue confirms women's importance, the added value they offer, the policy and the capacity to build new channels of communication and hope" he said, adding that "our Movement became synonymous with drastic institutional changes in Greece regarding [gender] equality."

Papandreou provided conference attendees with various data regarding women all over the world, such as the fact that of the 750 million illiterate people in the world, two-thirds are women, while of the 1.3 billion people living below the poverty level, 900 million are women.

"I believe that if more women held positions of responsibility and power we would not have such phenomena," he said.

"It is only with new concepts regarding a woman's role can we begin to talk about a different social model, a different model of power, a different model of human relations, a different model of governance - democratic, humane and just," he concluded.

Earlier on Friday, PASOK Secretary Mariliza Xenogiannakopoulou stressed during a joint press conference with the organization's President Pia Locatelli, that great changes were brought about within the party thanks to Papandreou's strong support and initiative.

[09] SI's Ayala calls on Hamas to continue Mideast peace process

ATHENS, 28/1/2006 (ANA)

Ayala made the statements during a press conference in Athens that was held in view of an upcoming two-day SI Council meeting that will take place here on January 30-31.

"We welcome the holding of free and democratic elections, which were carried out with great order and are an excellent example," he said.

"The Socialist International expects the government that will arise to continue the peace processes in the direction of the Oslo agreements and the "Road Map". Violence is not a means of progress; we are in favor of the existence of two states with mutual recognition," he added.

Concerning the agenda of the SI Council meeting, Ayala said that peace, democracy and solidarity between people and cultures would be its central theme, while issues concerning the Balkans, the Middle East and 'new poor' would be high on the agenda.

He said that 250 delegates representing 100 parties throughout the world will be attending the meeting in Athens, while among the highlights will be the election of Greece's main opposition party leader, PASOK President George Papandreou, as the president of the Socialist International.

Papandreou is now the sole candidate for this office.

Also speaking at the press conference was PASOK National Council Secretary Mariliza Xenoyiannakopoulou, who said that the Council meeting was occurring at a time when the world's biggest international political organization was currently facing a major challenge and was called on to answer with an alternative, progressive plan.

Press conference with PASOK's Xenoyiannakopoulou: Socialist International secretary Luis Ayala expressed satisfaction on Friday over the Palestinian election process. He was speaking at a press conference he gave together with the secretary of the main opposition PASOK party's National Council Mariliza Xenoyiannakopoulou and the International Relations Sector chief Paulina Lampsa, in light of the beginning of the Socialist International Women's session.

Replying to questions by the press, Ayala "hailed with enthusiasm the holding of the elections in Palestine, in which there were also observers of the international community, as an excellent example and a positive development as regards the process."

Referring to the outcome of the elections in particular, the Socialist International's secretary said that the world community must register it, receive the message and respect it as the result of democratic elections.

"We look forward to the new government of Palestine supporting, as it has committed itself, the peace process, continuing the same path of negotiations for peace," he said.

[10] Efforts focus on resuming power supply to Cephallonia, Ithaca

28/1/2006 (ANA)

The alternate government spokesman also noted that the two islands can only be declared in a state of emergency following a request by the prefect of Cephallonia, something that has not been requested.

As if Friday, spokesman Evangelos Antonaros said 40 percent of residents had the electricity turned back on, whereas the Public Power Corp. was sending more repair crews to the islands.

On her part, Communist Party (KKE) head Aleka Papariga called on the government to declare the two islands in a state of emergency.

[11] SYN delegation meets with Iranian embassy attach�

ATHENS, 28/1/2006 (ANA)

According to a SYN statement, Hountis stressed that a dialogue based on international law is the only way to resolve problems in the Middle East.

He reiterated the position of SYN and the European Left, according to which an independent Palestinian state with East Jerusalem as its capital must be created.

According to Hountis, for this to be achieved negotiations must resume with the new Palestinian government recognized as an equal negotiator by all sides.

On his part, Farahi said he supported further strengthening of Greek-Iranian ties and assured Hountis and Trigazis that the Iranian government strongly supports strict compliance with the non-proliferation of nuclear weapons agreement and the charter of the International Atomic Energy Agency.

Finally, he said that Iran does not doubt the Holocaust and is opposed to genocide.

[12] Greece needs to reform its pension system, FinMin says

ATHENS, 28/1/2006 (ANA)

Addressing a seminar organized by the non-governmental organization "Citizens for the Future", Alogoskoufis said that in 10, 15 or 20 years from now "no one knows right now, there will be a problem unless we take the initiatives needed to defuse this time bomb and to transform the pension system into an opportunity for the country".

The Greek minister noted that a dialogue over the pension system should proceed this year and referred to the three pylons of the government's economic policy, tax reform, a new investment law on growth and regional convergence, and joint ventures between public and private sectors.

Alogoskoufis said the government was promoting a series of legislative initiatives aimed to improve economic performance and solve past problems.

These initiatives are:

-setting up an agency of fiscal auditors to ensure public spending and better management of existing funds,

-making a better use of public sector's real estate assets,

-reforming a law on Community Support Framework and promoting a National Support Framework and,

-supporting the role of a National Council of Exports.

Alogoskoufis said the government was poised to proceed with its reform program this year and stressed that the public sector was gradually limiting its participation in the country's economy.

[13] Opposition party raps gov't over social insurance

ATHENS, 28/1/2006 (ANA)

"Using social dialogue as a pretext, Finance Minister Alogoskoufis has stated the need for reform of the social insurance system, which simply means collapse of the social insurance and pension rights of workers, primarily the young," economic and social spokesman Panayiotis Lafazanis said.

"When the government announces reform of any sector, this can only mean one thing - that it will pillage workers rights," Lafazanis told a seminar.

[14] PM briefed over tourism policy issues

ATHENS, 28/1/2006 (ANA)

Speaking to reporters, after the meeting, Avramopoulos said he briefed the premier over current tourism issues and progress of an advertising campaign abroad. The Greek minister noted the ministry has drafted a 10-year strategy on tourism.

[15] Quality of service definitive factor in tourism development, Minister says

ATHENS, 28/1/2006 (ANA)

He also highlighted the sector's importance within the Greek economy and praised Greek tourism professionals for their efforts to upgrade their product.

Deputy Minister of Tourism Development Anastasios Liaskos agreed with Avramopoulos, saying that for Greece to successfully compete internationally its tourism product must be upgraded and embellished with alternative forms of tourism.

On his part, Panagiotis Sgouridis, main opposition PASOK MP and responsible for tourism, asked Avramopoulos to focus more on the domestic market, noting that according to a recent Eurostat survey, one in two Greeks do not go on holiday.

Finally, according to data gathered by the exhibit's organizers, 1,120 tourism investment projects totaling � 1.3 billion have been approved between 1998 and November 2005 under the old and new development law.

[16] Tourism equipment trade fair opens

ATHENS, 28/1/2006 (ANA)

The exhibition was inaugurated by Tourism Minister Dimitris Avramopoulos, who laid emphasis on the importance of conference tourism.

The event backed by the tourism ministry and Greek National Tourism Organization, ends on January 30.

[17] Deputy FM Evripides Stylianidis outlines extroversion steps planned by Greek economic diplomacy

ATHENS, 28/1/2006 (ANA)

Stylianidis was speaking in the framework of the conference titled "The difficult 2006:A year of challenges for the Greek economy", organized by the "Citizens for the future."

The deputy foreign minister pointed out that Japan, China, India and, of course, the Arab world, are among the new markets whose targeting has been determined in cooperation with business agencies.

He also underlined the distinguished position that the energy sector has for economic diplomacy and for whose management a separate department is being created at the foreign ministry.

Stylianidis also said that "we are aiming at Greek and foreign businesses having their 'headquarters' in Greece and their branches in neighboring countries, taking advantage of the low labor cost. In Greece, they will benefit from our country's comparative advantages which are security, developed infrastructure networks and specialized human potential."

[18] Greek investors seek real estate assets in Bulgaria

28/1/2006 (ANA)

Dr Zomas said the opening of a new customs station in Exohi Drama in December 2005 has certainly boosted Greek businessmen's interest for the region.

He said Greek businessmen were seeking to buy large real estate assets, currently farmlands, to be used as commercial assets in the future for the building of hotels or shopping centers.

"Fia Corporation", a Greek company, is launching a double project, budgeted at 20 million euros, on April 1, 2006. The project includes the creation of a technological park and a tourist settlement of 100 houses, covering an area of 123,000 square meters in southwestern Bulgaria.

Fia Corporation's officials told ANA-MPA that a joint venture with the municipality of Hadjidimovo, named "United Construction and Development", would take over the development of the real estate asset in the area.

Annual average real estate returns in Bulgaria reach 12-13 pct, from 6.8-10 pct in Western Europe, although informal statistics raised this percentage to 50-60 percent.

[19] Swifter procedures planned for foreign investments

ATHENS, 28/1/2006 (ANA)

"An immediate target for ELKE is to speed up (approval) for foreign business plans in order to achieve timely implementation....in terms of investment and exports," Anastasopoulos said.

Investments evaluated by ELKE in 2005 were 668 million euros. Of the total, 214 million euros were self-financed, of which 44 million euros, or 21%, came from abroad.

Foreign placement in renewable energy backed by ELKE totaled 453 million euros, and the projects were either completed or in progress, Anastasopoulos added.

[20] Northern Greece Exporters Federation signs cooperation memorandum with Israel's Institute of Exports

28/1/2006 (ANA)

The signing ceremony took place during a business mission jointly organized in Israel by SEBE and the Federation of Greek Industries (SEB).

The memorandum aims at developing trade between Greece and Israel through better cooperation of companies in the two countries. Activities to be facilitated by the memorandum anticipate, among other things, mutual briefing between firms in the two countries on business opportunities and support for the creation of joint ventures.

An announcement by SEBE said that over 80 scheduled meetings between Greek and Israeli companies took place during the business mission to Israel, from which cooperation is expected to begin.

SEBE Deputy President Athanassios Archontis urged Israeli firms to invest in Greece and to cooperate with similar Greek ones which can secure for them more direct access to the Balkans.

[21] Wine-tasting evening held at Greek Embassy in Washington

WASHINGTON, 27/1/2006 (ANA - A. Ellis)

The event was held on Thursday night and was funded by the Hellenic Foreign Trade Board (HEPO) as part of the "Kerasma" program that aims to promote Greek gastronomy abroad.

More than 200 Americans sampled Greek wines and food and had high praise for the quality of Greek wines.

U.S. Ambassador Alexandros Mallias spoke about Greece's four-thousand-year tradition in wine-making, the varieties of Greek products and their dietary value and promised to organize more such presentations of Greek foodstuffs at the Embassy.

Among those attending the event were representatives of hotels, Washington restaurants, importers of Greek foods and journalists.

[22] State hospital procurement system in need of overhaul, Ombudsman says

ATHENS, 28/1/2006 (ANA)

Specifically, the Ombudsman found that clarification is needed regarding terms of bidding, product specifications, tender procedures, and better organizing a system for payments to vendors and the payments hospitals receive from insurance funds.

According to the Ombudsman, its findings call for a review of the existing procurement system, which the health ministry has responded to by publicizing a related bill last week.

"With this bill the state hospitals' procurement system is completely overhauled," the Ombudsman said in a statement.

[23] Athens Bourse Close: Stocks drop in short-term profit-taking

ATHENS, 28/1/2006 (ANA)

The FTSE/ASE-20 index for high capitalization shares ended 0.95% down; the FTSE/ASE-40 for medium cap stocks closed 0.41% lower; and the FTSE/ASE-80 for small cap shares finished 0.27% down.

Of stocks traded, declines led advances at 177 to 97 with 49 remaining unchanged.

Stock Futures: