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Papandreou, in Turkey's commercial capital Istanbul, told CNN-Turk television that a summer ban on military flights over the Aegean Sea, which separates the two countries, could be extended.
The proposal follows Greek complaints of increased air violations by the Turkish army over the Aegean.
"Generally, there has been a wish for a moratorium during the summer... because this is an important season for tourism," Papandreou told CNN-Turk in remarks translated into Turkish.
"We suggest that this period is extended by several months so that this region becomes a region of peace."
The Greek minister was in Istanbul for a conference on international relations. He also had a brief meeting with his Turkish counterpart Abdullah Gul.
A military flight moratorium over the sea -- a popular summer tourist destination -- has been in place since 1988 for the period from July 15 to September 15.
According to Greek foreign ministry officials, Greece has in the past proposed to extend the flight ban, but Turkey as recently as last year turned the proposal down.
Tensions between the two Mediterranean states, top summer spots for sun-seeking Europeans, have been on the wane and, as NATO members, they are military allies.
But the two remain at loggerheads over air control and territorial rights in the Aegean, accusing each other of violations, and dogfights between Greek and Turkish fighter planes are a frequent occurrence.
Greece claims a 10-mile (16-kilometer) airspace limit around its coastline but Turkey only recognizes six miles, arguing that under international rules Greece's airspace extends only as far as its territorial waters.
In the most recent incident, Athens said last month that two Turkish jet fighters had come dangerously close to a Greek passenger plane over the Aegean, and filed a complaint with the European Union, which Turkey is seeking to join.
Ankara denied the claim, and the Turkish army said that Greece's recently increased complaints were aimed at casting Turkey in a negative light with the
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