NORTHERN NOTES - APRIL 2009

UNCLAS SECTION 01 OF 03 THESSALONIKI 000027 SENSITIVE SIPDIS DEPT FOR EUR/SE E.O. 12958: N/A TAGS: ECON PGOV PHUM PREL SMIG SNAR SOCI GR TU SUBJECT: NORTHERN NOTES - APRIL 2009 THESSALONI 00000027 001.2 OF 003 Following is a summary of last month's major developments in Northern Greece: THESSALONIKI PORT TENDER CANCELED, STATE INVESTMENT ANNOUNCED ¶1. (U) On April 1, the Thessaloniki Port Authority announced the cancellation of an earlier tender for the privatization of the port's Cargo Station. The decision followed weeks of deliberations on how to proceed, after the winning bidder Hutchison Whampoa withdrew its bid which was valued at over 400m ($530m.) Shortly after, on April 15, the GoG announced a 225m investment in the port of Thessaloniki, aimed at increasing the handling of TEUs from the current 450,000 to 1,000,000 by 2014. Commentators stated that the development signals the abandonment of the GoG's privatization plans for the port. The GoG has also announced improvement works for another 26 ports in the country, including the deepening of the port of Alexandroupoli (near the Greek-Turkish border.) That project's cost is estimated to be 23m ($30m.) BUSINESS DELEGATION FROM GREECE VISITS KOSOVO ¶2. (U) On April 7, the Exporters' Association of Northern Greece organized a business trip to Pristina, Kosovo for 55 local businessmen. In the course of the trip, the delegation held over 800 meetings with businessmen from the neighboring country, as well as with members of the government, including PM Hashim Thaci. Local media reported that in 2008, Greece's imports from Kosovo were worth 50m ($66m) while its exports to Kosovo were worth around 70m ($93m.) REDUCED WORK HOURS SPREAD IN NORTHERN GREECE ¶3. (U) On April 16, the Greek General Confederation of Workers, an umbrella organization consisting of most of the country's private sector trade unions, warned that by the end of April, 700-800 people in Northern Greece (excluding Thessaloniki) will have either been required to take a forced leave or asked to work reduced hours. Local media also reported that around 3,000 people were laid off in Thessaloniki, since the beginning of the financial crisis. PRESIDENT OF THE THESSALONIKI ZONE OF INNOVATION RESIGNS ¶4. (SBU) On April 22, the President of the Board of Thessaloniki's Zone of Innovation Professor Iakovos Vasalos resigned his position, reportedly citing irreconcilable disagreements with the rest of the board. In particular, the former President of the Innovation Zone mentioned the refusal by the board to include in the Zone "successful institutions," such as the Center for Research and Technology and the Technopolis Business Park and also, the board's unwillingness to set modest but realistic targets for the development of the project. The establishment of the Thessaloniki Zone of Innovation was ratified by Parliament in 2006 but has suffered considerable delays since its inception, owing to political inconsistency, bureaucracy and internal feuds. The current year is viewed as critical and indicative of the initiative's ultimate prospects. SENTENCES HANDED OUT FOR GREEK DAIRY BLACKMAIL SCANDAL ¶5. (U) On April 13, three people received suspended sentences of five years and six months in prison each for the attempted extortion of the northern Greek dairy company MEVGAL in 2006. The defendants were also ordered to pay a 10,000 ($13,000) fine each to the company. The three men, including the former Director General of the Competition Committee, had demanded a fee in excess of 2.5m ($3.3m) in order for the company to escape a heavier forthcoming fine by the Committee. AMBASSADOR SPECKHARD VISITS THESSALONIKI ¶6. (U) On April 15, Ambassador Speckhard paid a one-day visit to Thessaloniki. During his visit, he met with GoG officials, local "green" entrepreneurs and the staff and students of the American Farm School. His visit was reported upon extensively and factually by the local media. MUSLIM MINORITY DEVELOPMENTS ¶7. (SBU) Minority Celebrates the Prophet's Birthday - On April 20, the elected (not recognized by GoG) Muftis of Thrace organized a major event to celebrate the birthday of Prophet Mohamed. The event took place in the town of Xanthi, in a municipal basketball stadium, and was attended by approximately 5,000 people. Local media as well as citizens' associations criticized the Mayor of Xanthi for agreeing to the use of the stadium by the elected muftis, despite the fact that they are not officially recognized by the state. Present in the event THESSALONI 00000027 002.2 OF 003 were Turkish diplomats in Greece and Muslim clergy from Turkey, Saudi Arabia and the Balkans. Minority MPs Participate in Islamic Summit - The two Muslim MPs elected in Greece, Tsetin Mantatzi and Ahmed Haciosman, last month attended an Islamic Summit in Saudi Arabia. Thrace media questioned their qualifications for attendance at the event as they are representatives of a non-Muslim country and also enquired about their role in the issuing of a statement criticizing Greece's treatment of its Muslim minority. "Turkish Union of Xanthi" Appeal Heard - On April 3, the Appeals Court in Thrace heard the appeal by the "Turkish Union Of Xanthi" against a decision made in 1986 that rendered the Union "illegal," on the grounds that it included the adjective "Turkish" in its name. [Note: In the Lausanne Treaty of 1923, the minority of Thrace is defined as "Muslim" and therefore, should not bear any national determinants. End Note] In March 2008, the European Court of Human Rights ruled against Greece on the matter, citing "violation of the freedom of association." The Appeals Court decision is expected in the next few months. VIOLENT INCIDENTS SUMMARY ¶8. (SBU) On April 1, around 20 hooded individuals attacked the room housing Aristotle University's main internet server and smashed computers. The vandals fled the scene immediately after. The University Rector asked in a letter addressed to the Chief Prosecutor, for the Police's intervention, in the event of a similar incident re-occurring. [Note: this process is necessary, due to the existence of University Asylum in Greece. End Note] On April 9, after a warning call, the Bomb Squad in Thessaloniki discovered two Improvised Incendiary Devices (IID), outside the two biggest churches of the city. Senior police contacts told post that the bombs did not go off, because the detonators were not properly connected to the gas canisters. On April 11, 20-30 anarchists destroyed a traffic camera in downtown Thessaloniki and set a Power Company switch box on fire. Police arrived at the scene and detained one of the culprits. On April 13, four parked vehicles belonging to security companies were torched almost simultaneously in four different neighborhoods of Thessaloniki. On the same day, another two explosive devices were found under a private security van. The driver of the van located them and they were defused in time. On April 15, a group of 10 hooded individuals attacked a Liberal Studies Center (affiliated with British universities,) smashing the windows of a ground floor computer lab, while it was in use. No arrests were made and no injuries reported. On April 23 & 24, a series of arson attacks took place in the town of Xanthi. The attacks targeted an ATM machine, as well as the local Metropolitan - the Orthodox equivalent of a Bishop - and Prosecutor's vehicles. A new group, called the "Insurgent Struggle" claimed responsibility for the attacks. Senior police contacts told post some arrests have been made of young people with no criminal records. On April 28, 600 anarchists passed by the Consulate without causing any problems. They were heavily escorted by police, including 30 motorcycles of the new "Z" Force. It was the first time a demonstration had been monitored in such a fashion. ILLEGAL IMMIGRANTS/SMUGGLERS ARRESTS ¶9. (U) On April 1, police arrested two Chinese immigrant smugglers in Thessaloniki and one in the town of Katerini. The ring possessed a package of 38 Chinese passports that were going to be used to smuggle people into the country. Following an apartment search, the police arrested two Chinese illegal immigrants and a deposit account book with 85,000 ($114,000.) On April 2, in Thrace, police arrested a Greek and a foreign smuggler who, as coach drivers, were carrying six illegal immigrants hidden in a coach. On April 3, on the Greek-Turkish border, a Greek and a foreign smuggler were arrested for smuggling three people into the country. On the same day, in the same region, two foreign smugglers were arrested, along with the eight illegal immigrants they were escorting. On April 9, on the Greek-Turkish border, two smugglers and two illegal immigrants were arrested at a bus station, shortly before they boarded a bus heading to the hinterland. On April 18, near the Greek-Turkish border, police arrested five smugglers and three illegal immigrants. NARCOTICS SEIZURE ¶10. (U) On April 10, in the north-western Prefecture of Florina, border guards found and seized nine bags, containing a total of 184 kg and 765 grams of cannabis. The guards found the bags while chasing unidentified individuals, who eventually managed to escape by crossing over into neighboring Albania. PIRATED MOVIE DISCS CONFISCATED THESSALONI 00000027 003.2 OF 003 ¶11. (U) On April 10, police arrested in Thessaloniki a video club owner for copying and selling movies illegally from his store. Police confiscated a total of 893 DVDs, as well as dozens of pirated movie covers. KING