VZCZCXRO5503
PP RUEHIK
DE RUEHIK #0015/01 0650736
ZNR UUUUU ZZH
P 050736Z MAR 08
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC PRIORITY 0316
INFO RUEHTH/AMEMBASSY ATHENS PRIORITY 0226
RUEHIK/AMCONSUL THESSALONIKI 0348

UNCLAS SECTION 01 OF 02 THESSALONIKI 000015 
 
SIPDIS 
 
SIPDIS 
 
FOR EUR/SE, DRL, EUR/RPM 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON GR
SUBJECT: NORTHERN NOTES FEBRUARY 2008 
 
REF: A. THESSALONIKI 0013 
 
     ¶B. ATHENS 0269 
     ¶C. THESSALONIKI 0014 
 
MACEDONIAN NAME ISSUE: METROPOLITAN AND POLITICAL LEADERS RALLY 
FOR GREECE'S EXCLUSIVE RIGHT TO NAME 
 
¶1.  The Macedonian name dispute remains the dominant issue in 
northern Greece, especially in the Greek province of Macedonia. 
Far right and nationalist groups have organized two separate 
rallies on March 5 (Ref A, B).  One will be indoors and will 
include Metropolitan Anthimos and the governor (prefect) of 
Thessaloniki, and the other will be outdoors and led by the 
far-right LA.OS party.  While the organizers have publicized the 
rallies widely, polls indicate that participation will be 
modest, much lower than the huge 1992 rally. 
 
THESSALONIKI PORT: FIVE COMPANIES EXPRESS INTEREST IN LEASING; 
CONTINUED WORK SLOWDOWN CREATES SIGNIFICANT LOSSES 
 
¶2.  Five foreign companies - COSCO Pacific (China), Dubai Ports 
World, APT Terminals (Denmark), Hutchinson (Great Britain) and 
ACTSI (Philippines), along with smaller Greek firms, have 
expressed interest in the tender offer for the leasing of the 
Port of Thessaloniki's cargo station.  Meanwhile, the 
mobilization of port workers continued, resulting in a 45% drop 
this month in the port's handling pace and resulting in losses 
of around 1.5m. In response, port management has issued a 
warning, calling the workers' actions "illegal" and asking them 
to resume their duties.  The Federation of Industries of 
Northern Greece has also joined in the debate, demanding 
compensation for its members and threatening to take legal 
action against the Port Authority.  The Port Authority announced 
it will refrain from legal action against the workers for now. 
Despite the government's announcement of comprehensive 
compensation packages, no respite in workers' action is expected 
in March. 
 
SLOW PROGRESS OF THE ZONE OF INNOVATION 
 
¶3.  At the end of this month, the Greek Ministry of 
Macedonia-Thrace signed a contract with a local consulting firm 
for another study for the long-awaited Thessaloniki Zone of 
Innovation. The latest study is entitled  the "strategic and 
entrepreneurial development plan of the Zone of Innovation." 
The Ministry estimates that the headquarters of the Zone will be 
ready by the end of 2008, while the project will be fully 
operational in five years' time.  A  dispute between the 
president and the managing director of the Zone, arising from 
the selection process for the managing director, has hampered 
progress. 
 
WAKFS LAW RATIFIED BY THE GREEK PARLIAMENT AMID EXPRESSED 
CONCERNS FROM BOTH COMMUNITIES 
 
¶4.  A draft law that provided for the administration of the 
Turkish/Muslim minority's wakfs (charitable foundations) in 
Thrace, was ratified by the parliament of Greece (Ref C).  The 
law also introduced a 0.5% quota for Muslim employees in the 
country's public sector.  The draft law was supported by the two 
major parties, while it was opposed by both political extremes, 
the left and right. The Muslim minority criticized the law on 
various grounds, such as the continued role of government 
appointed officials in the selection of the committees in some 
cases.  Left and right wing parties criticized the quota as 
race-based politics.  Many Muslims view the law, however, as a 
step in the right direction. 
 
EU FUNDS FOR NORTHEN GREECE 
 
¶5.  The Ministry of Finance announced 2.67bn of Fourth 
Community Support Framework (2007-2013) funds will be allocated 
for projects in the north of Greece. The sectors that will 
receive the greatest support include transportation 
infrastructure, environmental protection, education, health, 
information technology, research and development. Prime 
objectives include an increase in the competitiveness of the 
region and a liberalization of  commerce. 
 
HIGHER EDUCATION DEVELOPMENTS, CONTROVERSEY 
 
¶6.  On a visit to Eastern Macedonia and Thrace, the Minister of 
Education announced the creation of two new departments in the 
University of Thrace and another two in the Technological 
Educational Institute (TEI) of Drama.  He also announced future 
upgrading of the neighboring TEI of Serres and Kavala. Also, 
this month the new International University of Thessaloniki (the 
first state-run, tuition-charging, English-language university) 
faced a renewed attack by the Aristotle University Faculty on 
the occasion of the inauguration of its first course, for 
executive MBA students. The Faculty maintains that the IUT will 
serve as a Trojan Horse for the introduction and accreditation 
 
THESSALONI 00000015  002 OF 002 
 
 
of private, tuition-charging universities in the country. 
YEE