CYPRUS' PROPOSAL FOR BFIF FUNDS

UNCLAS NICOSIA 000009

SIPDIS

STATE FOR EB/CBA (DENNIS A. WINSTEAD),EB/EX AND EUR/SE

E.O. 12958: N/A
TAGS: BEXP ABUD AMGT ETRD ECON EINV BTIO CY
SUBJECT: CYPRUS' PROPOSAL FOR BFIF FUNDS

REF: STATE 128559


1. Summary: Embassy Nicosia requests BFIF funding to: 1) reserve
space at the Cyprus International Trade Fair to promote U.S.
products and services to the general public, as well as to cover
costs for related advertising and printing of promotional materials.
Embassy Nicosia notes that USD 1,100 is currently allocated for two
Intellectual Property Rights' seminars in April. Moreover, it is
our understanding that in the event the MOU between the Department
of Commerce and the Department of State is finalized, BFIF will
allocate funds for training at our Partner post of Athens, Greece.
End Summary.


2. Embassy Nicosia requests funding to cover costs of participation
at Cyprus' upcoming Cyprus International Trade Fair in May 2009. In
order to have enough time to inform and recruit participants, a
positive response to this request is needed no later than
mid-February. As part of our efforts to promote U.S. products and
services, we are considering subsidizing space and construction
costs for the Fair (which has between 100,000 to 120,000 visitors
over a 10-day period) for U.S. product representatives. We plan to
proceed as follows:

- Organize a fashion show of well-known U.S. apparel, which would
present different U.S. brands in our Pavilion throughout the
duration of the trade fair.
- Subsidize U.S.-made auto distributors' participation and special
events at the Fair.
- Subsidize U.S. franchises participation and special events at the
Fair.

We are certain that this will help attract more people to our
Pavilion and promote U.S. business at the same time.

a) Justification: Despite the impact from the global economic
slowdown, the Cypriot economy is expected to grow more than 2
percent in 2009. U.S. companies have fewer funds than in years past
to provide marketing support in this small, but economically active
country. Post efforts at the trade fair will provide U.S. companies
with a cost-effective way to enhance their visibility in Cyprus.

b) Anticipated outcomes: The automotive industry has decided to
cancel the annual Motor Show. By providing an alternative
mass-market venue to U.S. auto manufacturers, we can help them
continue to promote their cars, even at this time of economic
difficulty. The fashion and franchise industries have not
participated in our pavilion in the past and we would like to bring
them in to make our pavilion more exciting to visitors and to
educate Cypriots that these products are of U.S. origin.

c) Estimated costs: Booth costs at the U.S. Pavilion (for 100m
including VAT): $16,422 ($164.22 per square meter / estimated
conversion rate is EUR1 = USD 1.40) (EUR 102 x 15% VAT= EUR 117.30
per square meter); printing of brochures and other promotional
material: estimated USD 2,000. Total estimated cost: $18,422.

d) Point of contact: If you wish to get more information on this
project, please contact the Commercial Specialist, Ms. Ephie-Yvonnie
Charalambidou at charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.

e) Success criteria will include an increased number of
high-spending consumers purchasing U.S. products from Cyprus.


3. Embassy Nicosia already has an amount of USD 1,100 allocated
from BFIF for our upcoming IPR seminars in April.


4. It is our understanding that BFIF will cover all costs necessary
for any training required of our Commercial Section staff in the
event the MOU is implemented between the Department of Commerce and
the Department of State.


URBANCIC