PSI: GREEK SHIPBOARDING AGREEMENT NOT DEAD

C O N F I D E N T I A L ATHENS 000764

SIPDIS

DEPT ALSO FOR EUR/SE AND ISN

E.O. 12958: DECL: 05/22/2018
TAGS: KNNP KTIA EWWT PHSA PARM PREL GR
SUBJECT: PSI: GREEK SHIPBOARDING AGREEMENT NOT DEAD

REF: 2/8/08 HOVENIER/ROACH AND PURCELL E-MAIL

Classified By: DCM Tom Countryman for 1.4 (b) and (d)

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SUMMARY
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1. (C) Although Greek Ambassador to Washington Mallias told
USG officials and the press that the proposed PSI bilateral
shipboarding agreement was "dead," following Greece's
departure from the PSI 5th anniversary meetings in Washington
due to the seating of Macedonia as the "Republic of
Macedonia," MFA officials have confirmed to us that Mallias'
statement on the shipboarding agreement was "uninstructed"
and "not government policy." The GOG continues to review our
most recent text. We continue to press the GOG to respond to
this draft; we understand the Union of Greek Shipowners has
confirmed for the MFA that it is reasonably satisfied with
the current U.S. text, although UGS continues to desire
clarifications and amendments (ref). End Summary.

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PSI Shipboarding Agreement Not Dead
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2. (C) Following Greek Ambassador Mallias' statement to EUR
DAS Bryza and to the press that the proposed PSI Shipboarding
Agreement was "dead," due to U.S. seating of Macedonia as the
"Republic of Macedonia" at the PSI five-year anniversary
meetings in Washington, we followed-up with various Greek
officials to confirm Greece's position on the PSI
Shipboarding Agreement. Deputy Diplomatic Advisor to the PM
Bitsios, MFA D-1 Director Ambassador Rallis, and MFA
Secretary General Agathocles have all confirmed to us that
Mallias' statement on the PSI Shipboarding Agreement was
uninstructed and does not represent government policy.


3. (C) In a June 3 meeting with DCM, Agathocles said that
the draft proposed by the U.S. in early February remained
under MFA review, and that Mallias had misspoken. Rallis and
Bitsios have been more explicit that Mallias had been
"uninstructed" (with Rallis emotionally affirming that the
PSI Shipboarding remains on the GOG agenda). DCM pressed
Agathocles for an official MFA response to the U.S.-proposed
draft; Agathocles was noncommittal as to when the MFA would
respond to the U.S. draft, but affirmed that the MFA
continues to work on the issue. Agathocles thought the issue
was stuck with the shipowners association, rather than with
MFA/Legal; DCM said our understanding was the opposite. DCM
underscored the need to conclude an agreement expeditiously,
noting that it was of greater benefit to Greece than to the
U.S., as it will protect Greek shipowners. For this reason,
the governments of Cyprus, Panama, and Malta all moved
expeditiously to conclude an agreement with the U.S.


4. (C) Meanwhile, we've also heard from Rallis that the
Union of Greek Shipowners has told the MFA that UGS is
"generally OK" with the U.S. proposal. UGS has shared with
MFA the same specific concerns that UGS lawyers highlighted
for the Embassy in February (ref),but have told MFA that the
agreement "in principle" seems OK. On various occasions over
the past several months A/Political Counselor and DCM have
pressed various levels of the MFA for an official GOG
response to the U.S. proposal so we can then narrow any
remaining differences.
SPECKHARD