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