Athens News Agency: News in English (AM), 97-11-19

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

NEWS IN ENGLISH

Athens, Greece, 19/11/1997 (ANA)

MAIN HEADLINES

• Simitis reiterates `step-by-step' approach with Turkey
• Premier: Gov't to stick to 'hard drachma' policy
• Greece takes over WEU presidency from Germany
• NATO commander arrives in Athens
• Karamanlis calls for tougher policy on Turkey
• Simitis welcomes Damanaki candidacy
• Conference on combatting forged travel, ID documents
• Greek stocks jump 4.56 pct on bargain hunting
• Bank of Piraeus buys out Chase Manhattan branches in Greece
• Greece, Ukraine begin construction conference in Athens
• Egyptians launch investment in Greece
• Unions back TVX Gold investment, warn of capital flight
• Greek firms in the running for FYROM road projects
• Weather
• Foreign exchange

NEWS IN DETAIL

Prime Minister Costas Simitis yesterday reiterated Greece's commitment to improved relations with Turkey, based on a step-by-step approach to bilateral problems.

Addressing a Foreign Press Association (FPA) luncheon, Mr. Simitis outlined the initial steps which he said needed to be taken.

Firstly, that Turkey withdraw its claims to the islet of Imia and that it refer any such claims it might have to the International Court of Justice in The Hague, in exchange for which Greece would agree to the release of a European Union financial protocol.

Secondly, the question of the Aegean continental shelf could also be referred to The Hague and finally, meetings on various issues would be scheduled.

He observed that no moves had been made by Turkey in this direction.

The European Union, he said, was an area of friendship, peace and cooperation in which one member-state could neither make territorial claims against another nor question the rules of international law. The EU's "Agenda 2000", he added, clearly stated that EU member-states recognised the authority of the International Court of Justice. Mr. Simitis underlined that from the moment the EU puts this forth as a condition, Turkey should accept the authority of the Court.

Mr. Simitis repeatedly stressed that Greece was in favour of Turkey's European orientation on the condition that Turkey respected European principles and values.

He said that given the opportunity he would meet with his Turkish counterpart Mesut Yilmaz.

Turning to the recent US initiative on the Cyprus issue , Mr. Simitis said Greece welcomed any initiative based on UN resolutions, underlining that the "key to a Cyprus settlement is in the hands of Turkey". Any speculation as to a timetable for resolving the Cyprus issue was premature, he added, saying the key to the issue lay in Turkey's hands.

Premier: Gov't to stick to 'hard drachma' policy

The government will stick to its economic policy and its policy of a 'hard drachma' Premier Costas Simitis told foreign correspondents yesterday in response to questions.

"The stability of the drachma is a major factor in economic policy and will continue to define our movements," he said.

Referring to the recent monetary crisis, the premier said the Greek economy was not in crisis and, on the contrary, was illustrating that it could continue its successful course.

The recent rise in interest rates, he said, was a temporary phenomenon, although he did not go into details as to when the government expected rates to return to previous levels. The budget for 1998 revealed last week, he added, was targeted towards convergence with the European Union and bolstering the domestic economy against interna-tional fluctuations.

He admitted that the government's economic policy and latest budget had drawn fire but said that the results would be the final judge. Mr. Simitis said that the government's programme to partially float on the stock exchange a number of state-run or ganisations and enterprises was not geared towards "replacing a state monopoly with a private monopoly".

Greece takes over WEU presidency from Germany

Athens assumed the WEU presidency from Germany, following the end of the foreign affairs and defence ministers' conference in Erfurt, Germany yesterday.

Greek ministers Theodoros Pangalos and Defence Minister Akis Tsohatzopoulos presented their counterparts and reporters with the programme and the aims of the Greek presidency, which formally begins on Jan. 1, 1998. They also announced that the next session of the WEU wi ll be held on the island of Rhodes on May 11 and 12, 1998.

The aims of the Greek presidency are a continuation of its German predecessor, with the major pending issues concerning clarification of the relations between EU and WEU, between WEU and NATO as well as the practical "operational strengthening" of WEU at the military level.

Greece is expected to add its own "shading" on the picture, with the promotion of WEU relations with Cyprus, and cooperation with Russia and Ukraine.

The "Greek peculiarity", in the sense of the special sensitivity for the Balkans, was recorded during the session by Foreign Minister Pangalos, with reference to Albania, whose police forces are being trained by WEU, while the organisation decided to extend its mission in the country by six months.

Defence Minister Tsohatzopoulos stated that Greece proposed a three-month moratorium for military exercises in the Aegean last summer, but Turkey had rejected it. Mr. Pangalos added that "this proposal remains on the table..."

The WEU's 10 regular members are Belgium, Britain, France, Germany, Greece, Spain, Italy, Luxembourg, the Netherlands and Portugal, which at the same time are members of the EU and NATO.

Three countries participated as associate members of the WEU: Iceland, Norway and Turkey, which are NATO but not EU members. Five more countries participated with observer status: Denmark, Finland, Ireland, Austria and Sweden.

NATO commander arrives in Athens

The Supreme Allied Commander Europe (SACEUR), US Gen. Wesley Clark, arrived in Athens yesterday for a courtesy call, the national defence general staff announced yesterday.

Today, Gen. Clark is to meet with President of the Republic Kostis Stephanopoulos, Foreign Minister Theodoros Pangalos and National Defence Minister Akis Tsohatzopoulos, as well as with military and political leaders at the defence and foreign ministries.

Gen. Clark arrived in Athens after officially visiting Turkey, at the invitation of the Turkish military chief Gen. Ismail Hakki Karadayi.

Karamanlis calls for tougher policy on Turkey

Main opposition New Democracy leader Costas Karamanlis yesterday called for Greece to display decisiveness and exercise a stronger foreign policy.t the

The main opposition leader, addressing the issue of "Greek Foreign Policy in the New International Conditions" in a speech at the Pantion University's International Relations Institute, observed that an impartial or even a Turkish analyst would surely interpret the Greek side's position as "a retreat on all issues, with a sense of inequality in bilateral relations".

He said he was opposed to the policy of "we have no claims", clarifying that "we do not have claims for territorial changes, but we have claims emanating from international law and international treaties".

Mr. Karamanlis admitted that making use of the European Union's right of veto showed that the country's foreign policy was weak and ineffective.

He added that "securing Cyprus' unobstructed admission into the EU was a more attractive alternative rather than exercising the veto in trying to persuade Turkey take recourse to an International Court".

Simitis welcomes Damanaki candidacy

Prime Minister Costas Simitis yesterday welcomed former Coalition of the Left leader and current deputy Maria Damanaki's announcement earlier this week that she'll run for mayor of Athens next year.

The premier stated his intention to discuss the matter with her personally.

Speaking during a foreign press association luncheon, the prime minister, however, said the decision whether PASOK would support her candidacy would emerge through appropriate procedures within the ruling party. Ms Damaki is expected to face current Athens Mayor Dimitris Avramopoulos.

Conference on combatting forged travel, ID documents

The public order ministry is organising a conference entitled "Diogenis" concerning forged travel and identity documents. The conference began yesterday and will last until Thursday. It is jointly funded by the European Commission within the framework of the European Union's common action programme "Sherlock." Fifty Greek policemen serving with relevant passport control services are participating, as well as 10 officers from the police forces of Bulgaria, Cyprus, the Netherlands and Spain.

The purpose of the conference is development of cooperation between EU member-states and associated countries.

Greek stocks jump 4.56 pct on bargain hunting

Greek equities rebounded spectacularly on heavy bargain-hunting and speculative buying on the Athens Stock Exchange yesterday, reversing the previous session's sharp drop in prices.

The general index closed 4.56 percent higher at 1,391.79 points, and the FTSE/ASE index rose 4.48 percent at 809.13.

Traders said that professionals returned to the market attracted by the very low levels of prices and encouraged after the Capital Market Committee dismissed rumours of a new capital tax on share transactions.

Analysts expected the market to stabilise around the 1,400 level after finding strong support at the 1,300 level.

Sector indices gained substantial ground. Banks rose 4.92 percent, Insurance was 2.64 percent higher, Leasing increased 3.57 percent, Investment rose 3.84 percent, Construction jumped 4.14 percent, Industrials soared 4.31 percent, Miscellaneous was 5.23 percent higher and Holding rose 5.33 percent.

Trading was moderate with turnover at 18 billion drachmas.

Broadly, advancers led decliners by 187 to 37 with another 10 issues unchanged.

Alcatel, Sarandopoulos, Pavlides, Heliofin and Ideal scored the biggest percentage gains, while Bank of Athens, Athinea, Radio Athina and Barba Stathis suffered the heaviest losses.

National Bank of Greece ended at 26,430 drachmas, Ergobank at 14,900, Alpha Credit Bank at 16,735, Delta Dairy at 3,300, Titan Cement at 11,600, Intracom at 11,485 and Hellenic Telecommunications Organisation at 5, 160.

Bank of Piraeus buys out Chase Manhattan branches in Greece

Bank of Piraeus yesterday signed a deal with Chase Manhattan to take over the US bank's two branches in Greece for an undisclosed figure.

The deal was submitted to Greek monetary authorities for approval.

Under the terms of the deal, Chase's staff and banking installations will be placed under Bank of Piraeus's control, and the US bank will retain its office in Greece to focus on cross-border financial activities.

Homi Mullan, Chase Manhattan's regional manager for central Europe, Middle East and Africa, said that the deal would place the bank in a better position to concentrate on personal banking and maritime credit.

Chase Manhattan operates two branches in Greece, one in Athens and another in Piraeus.

Bank of Piraeus is a medium-sized commercial bank privatised in 1991. It was founded 80 years ago.

Its shareholders' equity totals 40 billion drachmas, and its capitalisation on the Athens Stock Exchange is 65 billion drachmas.

The Greek bank operates 132 branches in Athens.

Greece, Ukraine begin construction conference in Athens

Greek and Ukrainian authorities yesterday began a two-day conference in Athens on construction and engineering in Ukraine.

National economy ministry secretary general Apostolos Fotiadis told delegates that Ukraine offered Greek contractors growth prospects, saying that the government would support any new agreements.

Hellenic Export Promotion Organisation's chairman Yiannis Tzen urged Greek businesses to create joint ventures with Ukrainian firms in construction, commerce and industry.

Ukraine government officials are attending the conference.

Egyptians launch investment in Greece

The first investment by an Egyptian group in Greece will begin operating within the month, it was announced yesterday.

Egyptian Development Investment Company (Edic) has bought a 20 percent stake in a frozen potato unit in Thrace northern Greece worth 10 million US dollars, owned by the Kamalakis company.

Nahim Berzi, chairman of Edic, is a major industrialist.

Unions back TVX Gold investment, warn of capital flight

Greek trade unions yesterday again publicly backed a gold mining and production investment in the north by Canada's TVX Gold that has been severely delayed by residents' protests, jeopardising the project.

Christos Polyzogopoulos, president of the General Confederation of Workers of Greece, told a news conference that if TVX called off the project the move would damage business confidence, deterring other foreign investors.

The project also would help to ease unemployment in Halkidiki, which has a roughly 25 percent jobless rate, Mr. Polyzogopoulos said.

The investment is supported by trade unions in the area and local government authorities.

"People are convinced that apart from the increase in jobs, the unit will clean up the area since it will make use of tonnes of iron pyrites left on the ground after the previous owner went bankrupt," Halkidiki Labour Centre president, Angelos Pratzas, said.

The plant currently employs 836 workers, which will jump to more than 1,500 if the project goes ahead. Already 3,500 applicants had sought work at the unit, including residents of villages that oppose the scheme, Mr. Pratzas said.

Unions would no longer tolerate protests from around 1,200 residents centred on Olympiada, the site originally scheduled for the production plant, Mr. Pratzas said.

Local officials have attributed the protesters' motives to vested land interests, some involving tourism.

Greek firms in the running for FYROM road projects

Some 23 companies, including Greek construction firms, have submitted letters of interest for concessions for the construction of three road projects, according to the Former Yugoslav Republic of Macedonia's news agency MAKFAX.

Greek firms have shown overwhelming interest in the project to construct a 92.6km road linking Veles, Prileps and Bitola to the Greek border with FYROM.

Sixty percent of the companies that submitted a letter of interest are Greek companies, according to Minister of Traffic and Communications Abdulmenaf Bexheti.

The other two projects are the 35.7 km Skopje-Tetovo road and a 75.5 km road from Stobi to Gevgelija.

According to an announcement, U.S. Bechtel, an American-Australian consortium, companies from Turkey, Switzerland, Germany, Italy and Japan, and Greece, as well as a domestic consortium Granit - Mavrovo are interested in the construction of these roads.

The value of the three projects is estimated at 393 million dollars, or, specifically: Skopje - Tetovo 66.9, Stobi - Gevgelija 196.2, and Veles - Greek border 130 million dollars.

A decision on the concessions is expected by December 15.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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