NORTHERN NOTES - NOVEMBER 2008

UNCLAS SECTION 01 OF 02 THESSALONIKI 000084 SENSITIVE SIPDIS DEPT FOR EUR/SE E.O. 12958: N/A TAGS: ECON EAGR EINV PGOV PREL PHUM SOCI SNAR GR SUBJECT: NORTHERN NOTES - NOVEMBER 2008 REF: A) THESSALONIKI 081, B) THESSALONIKI 051, C) THESSALONIKI 050, D) THESSALONIKI 083, E) THESSALONIKI 052 THESSALONI 00000084 001.2 OF 002 Following is a summary of last month's major developments in Northern Greece: LAND SWAPS SCANDAL BETWEEN MONASTERY AND GOG RAGES ON ¶1. (U) On November 7, a Rodopi First Instance Court issued a decision that was originally rendered, but immediately suppressed, in 2003, which ruled that Vistonida Lake and its surrounding area do not belong to Vatopedi Monastery but rather, to the Greek state. Vatopedi reportedly made a profit of over 100 million euros in controversial land swaps with the Greek government. Meanwhile, on November 30, the influential Metropolitan Anthimos of Thessaloniki openly criticized Father Superior Efrem of Vatopedi for presenting an "ugly image of Christianity and arming the hand of the Church's enemies" (Ref A.) GREEK SUGAR INDUSTRY CEASES TALKS WITH AMERICAN COMPANY OVER BIO-ETHANOL PRODUCTION UNIT ¶2. (U) On November 20, the board of the Greek Sugar Industry S.A. announced that it was discontinuing negotiations with U.S. companies Renew Energy and Cal West Pacific Ethanol for the privatization and transformation of the Industry's plants in Northern Greece into bio-ethanol production units. Workers' representatives support the conversion and demand that the Sugar Industry itself should now undertake it. A consultant involved in the privatization negotiations told post the international financial crisis and the decline in popularity of bio-ethanol production world-wide had made the privatization deal less attractive for potential investors. He noted there is still a small chance the talks with the American companies will be revived. THESSALONIKI PORT CEO: PRIVATIZATION OF CARGO STATION OPERATION PROGRESSING SMOOTHLY ¶3. (U) The CEO of the Thessaloniki Port Authority Giannis Tsaras publicly dismissed rumors that emerged earlier this month, that Hutchison Port Holdings was going to freeze its plans to lease, operate and improve Thessaloniki's cargo station due to the credit crisis (Ref B.) Tsaras told media the take-over will proceed as originally planned (ratified by Parliament before the end of January 2009.) A senior port executive confirmed to post that, while a number of contract details remain to be negotiated with Hutchison, January 2009 is still a realistic target date for parliamentary approval. Meanwhile, work slowdowns at the port to protest the privatization process continue to harm local businesses (cargo handling volume dropped by 42% in the last nine months according to the Port Authority) and have resulted in Middle Eastern ports being frequently used instead. THESSALONIKI CHAMBER HIRES SECURITY COMPANY TO REMOVE ILLEGAL VENDORS FROM STREETS ¶4. (U) On November 05, the Chamber of Professionals in Thessaloniki [Note: a business chamber for small to medium- sized enterprises. End note] announced a two-month contract with a private security company aimed at removing illegal street vendors from the city center. Chamber President Mihalis Zorpidis has repeatedly accused the authorities of tolerating a practice that gravely harms the interests of his members. Three weeks after the project began, a senior Chamber employee told post that almost 90% of illegal street vendors had left the city center as a result of the initiative. He added, however, that greater effort by law enforcement officials is needed for lasting results, including through the introduction of mixed patrols involving police, customs officers, members of the financial crime squad and the trade directorate of the prefecture. Despite the Chamber's efforts, post has not detected a significant decrease in the number of street vendors in major downtown areas. VIOLENT INCIDENTS IN AND AROUND ARISTOTLE UNIVERSITY ¶5. (U) Local media reported that on November 21, approximately 40 hooded individuals violently disrupted a discussion that was taking place in a University auditorium, in the presence of its rector Anastasios Manthos. The intruders threw objects at the participants and shouted slogans against university development, the theme of the discussion, and for-profit activities. No arrests were made. In another incident on November 2, a group of around 50 people launched a series of attacks from within the University campus, smashing the windows of about 40 cars and THESSALONI 00000084 002.2 OF 002 burning down a news kiosk. The perpetrators made use of the law prohibiting police presence inside a university campus (Ref C.). Annual November 17 demonstrations near the campus and throughout the downtown area were remarkably free of violence, probably due to a robust police presence and good cooperation between University authorities, police and the Thessaloniki First Instance Prosecutor (Ref D). ESFIGMENOU MONASTERY ZEALOT MONKS ACQUITTED BY THESSALONIKI COURT ¶6. (U) On November 20, the Thessaloniki Court of Appeals acquitted six zealot monks of the Esfigmenou Monastery in Mt. Athos, previously sentenced to two years in prison for disturbing the peace. The zealot monks have been evicted from the Monastery by the Patriarch but refuse to leave. They have clashed several times with other monks from the Monastery who support the Patriarch. (Ref E.) The court reached its decision after dismissing the available evidence as inconclusive. ANNOUNCEMENT OF EU TOBACCO SUBSIDY CUTS ANGERS THRACE FARMERS ¶7. (SBU) On November 20, the Agriculture Ministers of the EU member-states agreed to proceed to a 50% reduction of subsidies for the "big" tobacco farmers and a 30% reduction for the "small" ones. The reductions would be effective January 1, ¶2010. Media have published differing accounts of the EU's plans for using the savings from reduced subsidies. Reports that the EU planned to divert tobacco subsidy funds to development projects sparked protests around Thrace. MAJOR TURKISH BANK OPENS BRANCH IN THRACE ¶8. Ziraat Bankasi (Turkey's Agricultural Bank) opened a branch in Komotini this month. The move was received warmly by Turkish minority leaders, while the Christian majority viewed it as another step by Turkey to increase influence over the Turkish/Muslim community. One post contact who follows developments in Thrace expressed the opinion that it was a trade-off for an earlier purchase by the National Bank of Greece for a stake in Turkey's Finans Bank. DEA SEMINAR IN KOMOTINI AND THESSALONIKI ¶9. (U) On November 04, U.S. Embassy Athens DEA office, the U.S. Consulate General in Thessaloniki and Hellenic Police co-organized one-day anti-narcotics training seminars in the town of Komotini and in Thessaloniki for local police and Coast Guard officers. The event drew wide, factual coverage from the local media. Police Director of Eastern Macedonia-Thrace Major General Christos Nikolopoulos thanked DEA and conoffs profusely for organizing the seminar and expressed interest in hosting similar DEA seminars in the future. Thessaloniki Coast Guard Chief Kalafatis also asked post to organize a seminar with DEA just for Coast Guard personnel early in 2009. U.S. ELECTIONS ¶10. (U) The U.S. Consulate General in Thessaloniki organized an Election Breakfast Watch on the occasion of the November 04 Presidential elections. The event was widely covered by the local media, including statements on the importance of the day by CG Yee and DPO King. The elections also featured very comprehensively in the media of Northern Greece, mostly hailing the victory of President-elect Obama as "the arrival of a new era" and largely reflecting the public feeling of enthusiasm and anticipation. YEE