DEP FONMIN STYLIANIDES: WE WANT TO WORK WITH YOU

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 002664

SIPDIS

USAID FOR E&E ECA (SCHMIDT)

E.O. 12958: DECL: 10/10/2015
TAGS: EAID PREL GR
SUBJECT: DEP FONMIN STYLIANIDES: WE WANT TO WORK WITH YOU
ON ENERGY AND ON ASSISTANCE PROJECTS

REF: SECSTATE 184292


1. (C) Summary. Deputy Foreign Minister Stylianides met
with the Ambassador October 7 to discuss bilateral
cooperation in the field of energy and international
assistance. Stylianides noted he had recently returned from
a trip to Russia, where he had urged the inclusion of U.S.
companies in large energy deals and projects. He expressed
continuing GoG commitment to the Burgas-Alexandroupolis
pipeline, which he said would reduce energy prices while
increasing environmental protection. Stylianides gave a
precis of his recent conversation with USAID Administrator
Natsios in New York, during which the two had discussed
cooperation on a number of international assistance projects.
Stylianides said he was looking forward to a letter from
Natsios further defining areas for cooperation. End Summary.
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We Want to Work Closely with USG on Energy...
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2. (C) Stylianides told the Ambassador that the GoG placed
great emphasis on working together with the USG on energy
issues. He summarized his recent visit to Russia, noting
that energy was the main focus. The GoG felt that, although
Russia possessed significant reserves of oil, the
participation of U.S. companies in Russian energy projects
was essential for geopolitical balance and good management.
Stylianides had made that point repeatedly during his Russian
visit; his Russian interlocutors had "listened politely".
The Deputy Minister said he was concerned by his sense that
different interest groups in Russia were spending their time
undermining each other's interests rather than focusing on
making energy projects work. He believed there were too many
actors pursuing selfish interests; this undermined everyone's
goals.


3. (SBU) Stylianides mentioned in passing that the second
purpose of his Russia visit was the general improvement in
Greek-Russian commercial relations. Over 170 Greek companies
accompanied him on the trip, some of which also represent
U.S. corporations. He felt the visit had gone well and that
commercial ties were destined to improve. He noted he hoped
to develop a similar commercial "road show" in 2006 for Greek
companies interested in doing more business in the U.S.


4. (C) Stylianides' Chef de Cabinet, Dimitris Platis, gave
his view that the Burgas-Alexandroupolis pipeline was now
"bankable." Six companies were guaranteeing 15 million/tons
per year of throughput, which brought the project to the
break-even point. All agreed on the contribution Chevron's
participation could make to the project's effectiveness.
Stylianides noted the GoG was also focusing on how best to
diversify its sources of energy. He was therefore
considering a visit to Kazakhstan. He would value any USG
advice on such a visit, or more generally on the issue of
energy diversification.


5. (SBU) Stylianides said he saw many benefits from forward
movement on the Burgas-Alexandroupolis pipeline. It would
significantly reduce delays in oil deliveries through Turkey,
which were currently subject to an average seven day delay
experienced by tankers passing through the Bosphorus. A
pipeline would also greatly alleviate environmental dangers
to Turkey and to Greece, both of which would suffer directly
from accidents in the Bosphorus.

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... and Increase Cooperation with USAID
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6. (C) Stylianides told the Ambassador that the GoG was very
interested in cooperating with USAID on a number of
assistance fronts, a subject Stylianides recently discussed
with AID Administrator Natsios. His top priorities were:
-- Working with the government of an appropriate third
country on how best to improve the practical application of
laws against human trafficking;
-- Developing a project in Georgia aimed at improving that
country's stability. Stylianides noted the GoG's interest
stemmed in part from the presence of a significant Greek
diaspora community in Georgia;
-- Cooperation with USAID on a project in Africa, focusing
either on combating HIV/AIDS or on improving water supply;
-- Cooperation on a project in Egypt, where Stylianides
stressed the USG and GoG shared many interests.
At this point, Stylianides said, the GoG was waiting for a
letter from USAID confirming interest in cooperation. Once
that was received, the next step would be the formation of
common working groups to develop specific projects. The
Ambassador promised to follow up with USAID.

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Problems with Albania: A Berisha Tax?
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7. (C) Stylianides asked for the Ambassador's help in a
number of problems involving the Albanian government.
According to the Deputy Minister, the GOA was attempting to
extract additional "back taxes" from a total of 150 foreign
companies (including a number of Greek firms),some of which
had had tax problems in the past. All of the companies were
now fully paid up, however. Stylianides said his sources
were telling him that the GOA was doing this in order to
bankroll a major tax break that was in the works. The GOA
was also making problems for the Wynona Greek school.
Although PM Karamanlis and PM Berisha had discussed the issue
on the margins of the UNGA, the GOA still had not issued a
license for the school to operate as a private institution.
This was becoming a serious problem as the school year had
begun.

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UNESCO Charter
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8. (SBU) The Ambassador raised with Stylianides our points
urging postponement of action on the UNESCO Cultural
Diversity Convention (reftel),stressing the importance the
USG attached to the issue. Stylianides said he appreciated
the information and would look into it.

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Trafficking in Persons
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9. (SBU) The Ambassador noted that the USG was preparing
its interim assessment of TIP watchlist countries. Although
the Greek Government had made some progress on this issue, we
were concerned it had still not been able to work out MOU's
institutionalizing roles for NGOs. Doing so was essential to
establish the cooperative relationship necessary to address
protecting and assisting victims, as well as developing
information to successfully prosecute traffickers.
Stylianides said the MFA was supportive of such cooperation,
and said he would work with GoG colleagues at other
ministries.
RIES