Identifier
Created
Classification
Origin
09LUXEMBOURG248
2009-09-02 11:04:00
CONFIDENTIAL
Embassy Luxembourg
Cable title:  

LUXEMBOURG: AUGUST 'DISPATCHES FROM THE DUCHY'

Tags:  PREL PGOV PINR AMGT LU 
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FM AMEMBASSY LUXEMBOURG
TO RUEHC/SECSTATE WASHDC PRIORITY 6729
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
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C O N F I D E N T I A L SECTION 01 OF 02 LUXEMBOURG 000248 

SIPDIS

E.O. 12958: DECL: 09/01/2019
TAGS: PREL PGOV PINR AMGT LU
SUBJECT: LUXEMBOURG: AUGUST 'DISPATCHES FROM THE DUCHY'

Classified By: Pol/Econ Counselor, Michael A. Via, reasons, 1.4 (b) (d)


C O N F I D E N T I A L SECTION 01 OF 02 LUXEMBOURG 000248

SIPDIS

E.O. 12958: DECL: 09/01/2019
TAGS: PREL PGOV PINR AMGT LU
SUBJECT: LUXEMBOURG: AUGUST 'DISPATCHES FROM THE DUCHY'

Classified By: Pol/Econ Counselor, Michael A. Via, reasons, 1.4 (b) (d)



1. (SBU) Embassy Luxembourg hereby launches its first edition
of 'Dispatches from the Duchy' to capture highlights from the
press, diplomatic and international community, and news heard
on the ramparts not otherwise reported during the month of
August.



2. (SBU) Summary: The month of Ramadan began for the
estimated 8000 - 12000 Muslims living in Luxembourg with a
statement by the Imam of the Mamer mosque, Halil Ahmetspahic
that "this is the month where we ask for the forgiveness of
our sins." The Hungarian Embassy in Luxembourg will close
due to the severe impact of the financial and economic crisis
on Ministry of Foreign Affairs operating budgets according to
Hungarian Ambassador to Luxembourg, Tbor Keckskes. The
world's largest steel producer ArcelorMittal, headquartered
in Luxembourg, announced on August 20th that it plans to
restart two blast furnaces in the U.S. which had been idle
due to the economic downturn. Luxembourg-based steel maker
Tenaris SA announced that the Venezuelan Government is
expropriating their Venezuelan subsidiary. RTL, Europe's
largest television company, based in Luxembourg, announced
that profit levels will be "down considerably compared to
2008" and posted a first-half year loss of $150 million. New
cases of H1N1 reported for the third week of August were
significantly lower than previous weeks. Luxembourg's next
Consul General to San Francisco, will be George Schmit,
former Deputy Minister of the Economy. His former portfolio
will now be subdivided during a reorganization of the
Ministry. End Summary.

--------------
RAMADAN BEGINS IN LUXEMBOURG
--------------


3. (SBU) The month of Ramadan began for the estimated 8000 -
12000 Muslims living in Luxembourg with a statement by the
Imam of the Mamer mosque, Halil Ahmetspahic that "this is the
month where we ask for the forgiveness of our sins. The fast
is a general way and one means of demonstrating devotion to
God." The Muslim Community in Luxembourg maintains a very
low key, non-controversial status in the country.



4. (C) The Mamer mosque is one of five mosques in Luxembourg
and is known as moderate in their approach to the application
of Islam. The other four mosques are located in Bonnevoie,
Esch-sur-Alzette, Wiltz and Niederkorn. Some of the
Niederkorn mosque members are known for their more radical
views, practice the conservative or Wahhabi version of Islam
and are referred to as "former AIO" (Active Islamic Youth).
(Note: Although AIO as an organization no longer exists,
those with more radical views still carry the label. End
note). Most of Luxembourg's Muslim community arrived after
1997 at the conclusion of the Balkans conflict. Most are
identified as ex-Yugoslavs, although single digit percentages
are attributed to Muslims from Morocco, Iran, Turkey,
Albania, Algeria, Tunisia and other locations according to
the press and local unofficial sources. The GOL does not
maintain a tally of the number of Moslems in the country or
their countries of origin. Local officials do not believe
that any of the local mosques or their members present a
significant terrorist threat.

--------------
HUNGARIAN EMBASSY TO CLOSE
--------------


5. (SBU) The Hungarian Embassy in Luxembourg will close due
to the impact of the financial and economic crisis at home,
according to Hungarian Ambassador to Luxembourg, Tbor
Keckskes. No specific date for the closure has been
announced. Three additional Hungarian bilateral Embassies
and eight consulates will close in addition to Luxembourg in
Chili, Venezuela and Malaysia according to Keckskes, as
quoted in the local press. Assertions by Keckskes that the
Embassies of Finland and Poland in Luxembourg may also close
are being denied by the MFA and the respective embassies.

--------------
STEEL PRODUCTION TO INCREASE
--------------


6. (SBU) The world's largest steel producer ArcelorMittal
(AM),headquartered in Luxembourg, announced on August 20th
that it plans to restart two blast furnaces in the US which
had been idle due to the economic downturn. A furnace and
related production activities at their Cleveland plant are

LUXEMBOURG 00000248 002 OF 002


scheduled to restart in mid-September, and a second plant in
East Chicago will be back in operation by early October. The
decision to re-open these facilities was prompted by low
inventories and by economic stimulus packages being supplied
from governments both in the US and Europe according to
officials at AM. The impact of these restarts will not have
an immediate impact on Luxembourg's 5.8% unemployment rate,
the highest in recent years, and AM still forecasts a
difficult year overall through at least the fourth quarter.
The increase in production and anticipated boost in corporate
profits for Luxembourg's largest employer will contribute to
higher tax revenues and be seen as a possible early sign of
recovery in the country.

-------------- --------------
LUXEMBOURG STEEL SUBSIDIARY IN VENEZUELA EXPROPRIATED
-------------- --------------


7. (SBU) Luxembourg based steel maker Tenaris SA announced
that the Venezuelan Government is expropriating their
Venezuelan subsidiary but is prepared to negotiate "fair and
adequate terms" for the takeover. Terms and conditions for
the payment agreements from the expropriations have not been
announced.

--------------
RTL POSTS $150 LOSS FOR FIRST HALF OF YEAR
--------------


8. (U) RTL, Europe's largest television company, based in
Luxembourg, posted a first-half year loss of $150 million as
advertising clients cut spending and the company wrote down
the value of its businesses in the UK and Greece. RTL, which
operates 45 TV channels and 32 radio stations in 10 countries
sees "no significant change" in the second half of 2009 and
projects that profit levels will be "down considerably
compared to 2008."

--------------
H1N1 UPDATE: FEWER NEW CASES FOR NOW
--------------


9. (SBU) New cases of H1N1 reported for the third week of
August were significantly lower than previous weeks. Since
August 14, twelve new cases of the virus were confirmed with
the majority of cases occurring in travelers returning from
Spain and the UK. This contrasts favorably with the 31 new
cases reported the week of August 7 and brings the total to
date for Luxembourg to 130. With the end of the holiday
period and Luxembourgers returning from other countries by
the first week of September, the number of new cases is
expected to rise. Despite H1N1 concerns, the school year
will start as planned in mid-September for both primary and
secondary schools, per guidance provided by the World Health
Organization and the European Center for Disease Control,
according to the Minister of Education, Mady Delvaux-Stehres
and the Minister of Health, Mars DiBartolomeo.

--------------
SAN FRANCISCO CONSUL GENERAL GEORGES SCHMIT
--------------


10. (SBU) The next Luxembourg Consul General in San
Francisco, Georges Schmit, former Deputy Minister of the
Economy, will take up his duties in the U.S. on October 1,
according to Patrizia Luchetta, Director of the Health
Technologies project for the Ministry of Economy. Luchetta
stated that newly-appointd Minister Jeannot Kreche has chosen
to reorganize the Economic Ministry and will diversify
Schmit's portfolio across several functional directories and
departments. A new organization chart is expected for
release by mid-September.


11. (U) If additional information is required, post point of
contact is Pol/Econ Counselor, Michael Via, e-mail:
ViaMA@state.gov.
BIEDLINGMAIER