GREEKS SHARE U.S. NON-PROLIFERATION CONCERNS ABOUT POTENTIAL

S E C R E T ATHENS 000063

SIPDIS

SIPDIS

DEPARTMENT ALSO FOR ISN/CTR

E.O. 12958: DECL: 01/15/2018
TAGS: PREL PARM ETTC SY IR GR
SUBJECT: GREEKS SHARE U.S. NON-PROLIFERATION CONCERNS ABOUT POTENTIAL
SALES TO IRAN AND SYRIA

REF: A. STATE 3713

B. 07 ATHENS 1951 AND PREVIOUS (NOTAL)

Classified By: A/Political Counselor Jeff Hovenier for 1.4 (b) and (d).


1. (S) On January 14, 2008, A/Political Counselor delivered
ref A points on the possible sale of camouflage systems to
Iran by the Greek firm XXXXXXXXXXXX S.A. to MFA First Counselor
Dionyssios Kyvetos, the lead Greek MFA non-proliferation
official. Kyvetos responded that following our previous
discussions related to potential XXXXXXXXXXXX sales to Syria (ref
B),he had asked the Ministry of Finance and Ministry of
Public Order to look into XXXXXXXXXXXX's activities. Kyvetos also
confirmed that XXXXXXXXXXXX has not, to date, applied for any
export licenses for Syria or Iran, and that if it did seek to
export any controlled items to Iran or Syria, the Government
of Greece would refuse the license.


2. (S) Kyvetos followed up on January 16 to report the
following:

-- Ministry of Public Order - Allegations Valid: The
Ministry of Public Order has reviewed XXXXXXXXXXXX's activities and
found that U.S. non-proliferation concerns are "valid."
Ministry of Public Order officials are still reviewing the
situation to determine if Greek laws have already been
broken, or whether XXXXXXXXXXXX is simply "holding initial talks
that could lead to illegal activities." The Ministry of
Public Order is preparing a report for the Ministry of
Foreign Affairs that documents XXXXXXXXXXXX's suspect activities.
Kyvetos said that the Government of Greece will share this
report with us, once it is complete. Kyvetos reiterated that
the Government of Greece will "follow-up very closely" to
ensure that there are no XXXXXXXXXXXX exports to Syria or Iran.

-- Ministry of Finance - Irregular Registration/No Contact
with XXXXXXXXXXXX: Kyvetos also noted that the Ministry of Finance
reviewed XXXXXXXXXXXX's status and discovered that it had an
irregular registration. XXXXXXXXXXXX's registration was based on
statements that XXXXXXXXXXXX would produce solely for the domestic
Greek market. However, Ministry of Finance officials
discovered that XXXXXXXXXXXX was registered as a company authorized
to export. The Ministry of Finance is reviewing this
situation. Following our ref B demarche, the Foreign
Ministry pressed the Ministry of Finance to meet with XXXXXXXXXXXX
officials and warn them about the potential consequences of
attempting to export controlled items to Syria. Ministry of
Finance officials demurred, however, stating that they had no
authority to do so absent clear indications of illegal
activity. Kyvetos said that the new information on potential
sales to the ex Ministry of Public Order would likely change this
situation. The Foreign Ministry will revisit this issue with the
Ministry of Finance, once it has the Ministry of Public
Order's report.
SPECKHARD