PSI: PRESIDENT OF UNION OF GREEK SHIPOWNERS SAYS

C O N F I D E N T I A L ATHENS 002138 SIPDIS SIPDIS DEPT ALSO FOR EUR/SE, EUR/PRA, ISN AND L C O R R E C T E D C O P Y (TEXT) E.O. 12958: DECL: 10/29/2017 TAGS: KNNP KTIA EWWT PHSA PARM PREL GR SUBJECT: PSI: PRESIDENT OF UNION OF GREEK SHIPOWNERS SAYS TIME RIGHT TO MOVE ON SHIPBOARDING AGREEMENT REF: A. ATHENS 2017 ¶B. STATE 83719 AND PREVIOUS Classified By: Charge Tom Countryman for 1.4 (b) and (d) ¶1. (U) This message contains action requests -- see paragraphs 6 and 9. -------------- SUMMARY -------------- ¶2. (SBU) Nikos Efthymiou, President of the Union of Greek Shipowners (UGS),told Charge Oct. 30 that the U.S. and Greece should "get on with" concluding a PSI Shipboarding Agreement now that Greek Parliamentary elections were over. Efthymiousaid he thought he had "an understanding" on what should be in the agreement based on his May 2006 meeting with then-U/S Joseph in Washigton, and now "we need to sit down and finish it." He suggested that U.S., UGS, and Greek MFA lawyers and negotiators reengage on Article 13 of the draft text. Efthymiou demurred on responding to the latest U.S. offers on claims or liability, but termed the June 2007 U.S. explanation on claims "helpful" and expressed intrest in both a U.S. letter and possible text or Article 13 that would make clear tat the U.S. would not normally seek compensation for damages we might suffer. He also asked for case studies/examples of claims paid by the United States. Efthymiou asserted that unlike Cyprus or Malta (which he said have few nationals aboard flagged vessels),Greece attaches particular importance to claims and liability issues because the Greek-flagged fleet has many Greek nationals aboard. He also pledged to press the Greek PM and Parliament to ratify an agreement -- once completed. Embassy Athens recommends a visit by a small team of experts from Washington to move this issue forward. End Summary. -------------- --- Time to "Get On" with PSI Shipboarding Agreement -------------- --- ¶3. (SBU) Charge scheduled the meeting with UGS President Nikos Efthymiou October 30 to discuss a separate matter, but took advantage of the meeting to solicit Efthymiou's views on the prospects of moving forward with a PSI Shipboarding agreement given Greek concerns on claims and liability issues. Charge underscored the importance the U.S. has placed on concluding an agreement with Greece, and noted that the U.S. had gone to considerable lengths to respond to Greek questions and concerns on liability and claims. ¶4. (SBU) Efthymiou responded that now that the Greek elections are over it is time to "get on with" concluding the agreement. He said we "had or were close to an understanding" based on his May 2006 meeting with then-U/S Joseph. The main problem had been the timing -- in a pre-electoral period, no Greek government would want to submit this agreement to the Greek Parliament. With elections over, this is no longer a concern. Efthymiou emphasized the importance of claims and liability issues. He said that the problem had been "not enough commitments" from the U.S. But, he added that an understanding exists "but it is not yet written." ¶5. (SBU) Charge reiterated that the U.S. has gone very far in trying to address Greek concerns on claims and liability. He asked if UGS felt that Qoffered a letter describing procedures that the U.S. follows -- to treat any damage or loss our side might suffer during maritime law enforcement operations as self-insured and we would not seek damages. We are also willing to consider development of text for Article 13 to make clear that the U.S. would normally not seek compensation for damages we might suffer; and -- Claims: the U.S. had provided substantial details on our administrative procedures for settling claims, and there are no ceilings on the size of claims that may be settled. However, the U.S. cannot and will not submit a priori to the courts of another country. ¶6. (SBU) Efthymiou did not respond directly, but expressed interest in further development of text to make clear that the U.S. does not normally seek compensation for damages it might suffer. He also termed U.S. explanations on claims "helpful." He asked if the U.S. had any case studies/examples it might be able to share in which U.S. officials have settled admiralty claims for damage caused by U.S. operations. Action Request: Embassy Athens believes such information/examples would be most helpful and we request any information Washington can provide. ¶7. (SBU) Charge noted that there are many Greek-owned ships sailing under the flags of countries with which we have PSI Shipboarding Agreements, such as Cyprus and Malta; he asked why Greece required additional claims language/commitments for Greek-flagged ships. Efthymiou emphasized that there is one essential difference. Although Cyprus and Malta have large fleets, there are "very few" Cypriot or Maltese nationals onboard these ships. Greece, on the other hand, has rules requiring a certain number of Greek nationals on board Greek-flagged ships. Therefore, the Government of Greece must be extraordinarily careful in ensuring it has all possible protections in place should injury occur to a Greek national during an interdiction, or should a Greek national cause injury or damage to U.S. property during an operation. ¶8. (SBU) Efthymiou said that if the U.S. and Greece are able to agree upon a text, he would personally press both the Prime Minister and the Parliament to ratify it expeditiously. -------------- Next Steps -------------- ¶9. (C) Efthymiou emphasized that the time is right for the "experts to sit down together and finish this." Both the Greek MFA (reftel) and the Union of Greek Shipowners are now on record in requesting that Greek and U.S. experts meet to review the outstanding text (Article 13) and determine if we can come to closure on a PSI Shipboarding Agreement. We believe that there would be value in such a meeting with experts from Washington. Notwithstanding our many efforts to educate the Greeks on U.S. legislation and practice related to claims and liability, we believe U.S. experts would likely provide more compelling and definite explanations in person. Furthermore, we believe that a visit by small team of U.S. experts could go a long way towards pressing the GOG to demonstrate its political will to conclude an agreement. COUNTRYMAN