VZCZCXYZ0034
PP RUEHWEB

DE RUEHDM #0514 0391509
ZNR UUUUU ZZH
P 081509Z FEB 06
FM AMEMBASSY DAMASCUS
TO SECSTATE WASHDC PRIORITY 7000

UNCLAS DAMASCUS 000514 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA/ELA 
NSC - EABRAMS/MSINGH 
TREASURY FOR GLASER/LEBENSON 
EB/ESC/TFS FOR SALOOM 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV SY
SUBJECT:  DANISH COMPANY ALRA FACES THREATS AND ECONOMIC LOSSES 
IN SYRIA DUE TO CARICATURES 
 
 
NOT FOR INTERNET OR WEBGRAM DISTRIBUTION 
 
¶1. (SBU) Summary:  In the wake of the destruction to the Danish 
and Norwegian Embassies in Damascus, many Syrians are encouraging 
non-violent protests of the Mohammad caricatures, including a 
general boycott of Danish products.  The Syrian distributor for 
Alra Danish dairy products says that as a result of the cartoons, 
he and his staff have been threatened and that he has lost about 
75 percent of his market share.  While many stores in Damascus 
refuse to sell Danish products, the SARG has not officially 
banned them.  End Summary. 
 
¶2. (SBU) In the aftermath of protests on February 4 in Damascus 
that resulted in the burning of the Danish and Norwegian 
Embassies, some Syrians are calling for alternative, non-violent 
means of protesting the caricatures.  In private conversations, 
several Sunni Muslims have called the torching of the embassies 
"unnecessary" and have told us that they are more supportive of a 
general boycott of Danish products. 
 
¶3. (SBU) Mazen Alzein, Acting General Manager of KD Foods Co. 
admitted to us that his staff has been threatened with physical 
harm as a result of recent events.  Two days ago KD Foods Co., 
distributor for Danish-Swedish dairy company Arla Foods, was 
forced to remove the signs and logos of Alra products from shops 
and company vehicles after receiving anonymous threats to blow up 
the trucks.  Additionally, because of his affiliation with Alra, 
Alzein (who considers himself to be a devout Muslim) feels that 
some Syrians are holding him and his staff personally responsible 
for the caricatures published in European newspapers. 
 
¶4. (SBU) Local press reports that the ongoing boycott of Danish 
products in the Middle East has cost Alra about $1.75 million USD 
per day.  Alzein said that an increasing number of Syrians have 
been boycotting Danish foodstuffs for the past two weeks as a 
result of pamphlet distribution and word-of-mouth communication, 
which has had a significant impact the profit margins of Alra in 
Syria.  Alzein says that since late January, about 75 percent of 
the shops that purchase Danish products have returned their 
merchandise.  Furthermore he stated that, as a result of the 
boycott, his company has about a $2 million USD overstock of 
Danish products, including 160 metric tons of foodstuffs that are 
en route to Syria. 
 
¶5. (SBU) Although the SARG has not officially called for a 
boycott of all Danish products, few shopkeepers are stocking well- 
known Danish foodstuffs.  Several stores have hung signs at their 
entrances that read "No More Danish Products" and are replacing 
Danish products with French or Syrian equivalents.  Still, an 
owner of one supermarket that caters to expatriates continues to 
carry Danish foodstuffs and stated that he is unconcerned about 
possible repercussions and believes that his decision will 
ultimately be profitable. 
 
¶6. (SBU) Comment:  Syrian Muslims, including businessmen, we have 
talked to support taking some action in protest, which makes the 
short-term success of a general boycott on Danish, and 
potentially other European products, likely.  Still, Europe has 
become an increasingly important economic partner for Syria since 
US trade sanctions were imposed on Syria in May 2004.  The SARG 
has realized significant political benefit from its hyping of 
real and imagined new European investment in Syria, especially to 
imply separation between USG and European foreign policy 
objectives in Syria.  The SARG will have to weigh the costs of 
continuing to fan the flames of indignation with the potential 
economic costs once the initial enthusiasm of support for 
sustaining or expanding the boycott begins to wear off. 
SECHE