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

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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

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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