VZCZCXRO6917
OO RUEHIK RUEHPOD RUEHYG
DE RUEHTH #1531/01 2121327
ZNR UUUUU ZZH
O 311327Z JUL 07
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9825
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RHMFIUU/COMNAVREG EUR NAPLES IT PRIORITY
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RHMFIUU/SECNAV WASHINGTON DC PRIORITY
RHMFIUU/NAVSUPPACT NAPLES IT PRIORITY
RHMFIUU/NAVSUPPACT SOUDA BAY GR PRIORITY
RUEKJCS/OSD WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS SECTION 01 OF 04 ATHENS 001531 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: MARR PREL GR
SUBJECT: 99TH U.S.-GREEK JOINT COMMISSION: MEETING SUMMARY 
 
REF: ATHENS 496 
 
¶1. (SBU) SUMMARY AND COMMENT: On July 23, the 99th meeting of 
the U.S.-Greek Joint Commission dealing with bilateral 
political-military issues, particularly the relationship 
between Souda Bay Naval Support Activity (NSA) and the 
Government of Greece, was held at Souda Bay NSA on the island 
of Crete.  Issues discussed at the JC included: problems 
associated with black fuel dye in Greek marine gas oil; the 
status of the U.S.-Greece ACSA agreement; Greek slowness to 
sign end-use agreements pertaining to peacekeeping operations 
and pooled weapons transfers (&Blanket Assurances8); 
land-lease issues concerning a periphery extension at Souda 
Bay NSA; military-to-military agreements; Greece's failure to 
sign a bilateral PSI shipboarding agreement; and various 
small construction projects at Souda Bay NSA.  COMMENT: As at 
the 98th JC (reftel), the atmosphere was cordial and 
fruitful.  Success at the 98th JC and in the interim period 
has meant, however, that the remaining outstanding issues 
represent some of the most intractable problems.  We 
nevertheless remain impressed with Greek JC co-chairman 
Vassilokonstandakis' enthusiasm and can-do attitude.  END 
SUMMARY AND COMMENT. 
 
¶2. (SBU) Charge d,Affaires a.i. Thomas Countryman (CDA), the 
U.S. Joint Commission co-chairman, began by noting that the 
JC created a good environment in which solutions are found 
not only during the JC meetings but also between meetings. 
He cited the extension of the MDCA, the successful resolution 
of the 302 Form issue, and the approval of the Marathi fuel 
pipeline as examples of positive results.  MFA North America 
Directorate acting director and Greek JC co-chairman Grigoris 
Vassilokonstandakis thanked the U.S. side and agreed with the 
CDA on the value of the JC and the importance of the 
accomplishments between meetings.  Both sides introduced the 
members of their delegation then addressed specific agenda 
items. 
 
FUEL COLOR 
---------- 
 
¶3. (SBU) Embassy became aware in Sept 2005 that U.S. Military 
Sealift Command (MSC) vessels were refusing to take delivery 
of Marine Gas Oil (MGO) at Souda Bay because of the color of 
the fuel.  USMC vessels require fuel to meet a &clear and 
bright8 standard so that it can be inspected visually for 
contaminants.  Greece, however, had begun requiring MGO to be 
dyed black to mark it as tax-free/for-export-only.  CDA cited 
figures showing Greek petroleum providers losing 
approximately 300 million USD in sales annually, the Greek 
Government losing taxes, and the Prefecture of Hania losing 
revenue from canceled ship visits.  He noted that we would 
like to solve the problem either by going to the original 
clear-color standard or finding another solution. 
 
¶4. (SBU) The Greek co-chairman said the Ministry of Economics 
could probably do something to speed things up, but he 
thought they still needed about two to three months for a 
ministerial decision.  Nevertheless, he said the GOG was very 
close to a solution and that the MFA was in constant contact 
with all pertinent officials.  He advised the CDA to raise 
the issue in the latter,s upcoming meeting with Finance 
Minister Petros Doukas and to note to Doukas that no other 
European country dyes its fuel black.  CDA agreed to raise 
the issue with Doukas.  On July 26, CDA also discussed the 
issue with the new chief of the Greek Customs Service, who 
said he was aware of the issue and was working on a solution 
(unspecified). 
 
STATUS OF ACSA AGREEMENT 
------------------------ 
 
¶5. (SBU) The Acquisition and Cross Servicing Agreement (ACSA) 
is a bilateral agreement between Greece and the U.S. that 
allows their respective militaries to provide mutual 
logistical support.  The original ACSA was signed in 1996 and 
amended by a supplemental agreement in 2005.  The original 
ACSA was not ratified by the Greek Parliament.  The amendment 
contained a provision stating that it would not be effective 
until Greece verified by diplomatic note that its internal 
coordination procedures had been completed.  When the U.S. 
side asked Greece for the diplomatic note at the 98th JC, the 
Greek co-chairman replied that the amendment had to be 
 
ATHENS 00001531  002 OF 004 
 
 
ratified by parliament and that it would be best if the U.S. 
submitted a whole new agreement to replace the original and 
the amendment. 
 
¶6. (SBU) ODC legal advisor LTC May noted that EUCOM was 
willing to negotiate a new agreement to replace the original 
agreement and its amendment.  COL Assimakis agreed and said 
his staff was ready to receive a draft text of the 
replacement agreement and meet with EUCOM personnel to 
negotiate the final text.  CDA said he hoped for a fast 
negotiation since this agreement saved a lot of money for the 
respective militaries.  The Greek co-chairman asked the U.S. 
side to send the new draft agreement with a dip note to him 
and he would forward it to the HNDGS.  Both sides agreed that 
the old agreement was valid until a new one was executed. 
 
END-USE AGREEMENTS 
------------------ 
 
¶7. (SBU) Embassy Athens has sought for over a year to secure 
from the GOG a 505 end-use agreement covering peace-keeping 
operations.  Since last fall, we have also sought to conclude 
a blanket assurances end-use agreement that would allow 
Greece to participate in an equipment-sharing program with 
about 25 other countries.  Greece thus far has not signed the 
agreements.  Vassilokonstantakis has told us in the past that 
the MFA favored the agreements, and while the MOD was likely 
not in principle opposed, he was unable to locate anyone 
within MOD willing to take responsibility to sign the 
agreements. 
 
¶8. (SBU) The Greek co-chairman and MFA legal advisor Fani 
Livada argued that the 505 and Blanket Assurances agreements 
were not proper subjects for discussion at a Joint Commission 
meeting and should probably be discussed at the HLCC.  The 
U.S. side replied that the 505 and Blanket Assurance 
agreements were appropriate topics for the Joint Commission 
because there are general provisions in the MDCA that state 
the U.S. would assist in the modernization of the Greek 
Military.  The Greek co-chairman said unofficially that the 
505 agreement was close to resolution and would probably be 
signed before the next JC meeting.  He noted, however, that 
the Blanket Assurances agreement would take more time.  The 
U.S. side offered help in overcoming any obstacles. 
 
LAND-LEASE UPDATE 
----------------- 
 
¶9. (SBU) At the September 2001 JC, the U.S. formally 
requested Greece to increase the boundaries of NSA Souda Bay 
to allow a widening of the perimeter fencing for 
force-protection purposes.  Greece agreed to the land 
transfer, but it has taken several years to complete because 
of the number of agencies and processes involved.  One of the 
last (and hardest) steps of the process (expropriation) was 
completed by the February 2007 Joint Commission.  We were 
informed then that there would be a public-comment period 
concerning the transfer but things would move quickly 
thereafter. 
 
¶10. (SBU) At the 99th JC, the Greek side said it had good 
news in that none of the landowners had objections about the 
rate of compensation for their land.  The only problem was 
that 40 percent of the landowners claimed their land was 
larger than the GoG estimated and that they were entitled to 
greater compensation.  Greece, therefore, needed to use the 
topographical service (Greek equivalent of surveyors) to get 
more precise measurements of the land and verify landowner 
claims.  The Greek co-chairman estimated the measurement 
process would take two months after which the landowners 
would be invited to receive payment.  The HAF representative 
said unofficially that if the amount of the land were larger 
than anticipated, the HAF would pay the necessary additional 
compensation to the landowners to allow for speedy resolution 
of this long-standing issue. 
 
MILITARY-TO-MILITARY AGREEMENTS 
------------------------------- 
 
¶11. (SBU) To facilitate smoother interaction with regard to 
various pending agreements, the U.S. side asked whether it 
was possible to determine a priori which new agreements 
negotiated between the U.S. and Greek militaries were 
 
ATHENS 00001531  003 OF 004 
 
 
self-executing and which had to go to parliament for 
ratification.  The Greek co-chairman and Mrs. Livada said 
that each agreement had to be looked at individually, but in 
general, agreements that had no financial implications and 
the ones that are too technical usually did not need 
parliamentary approval.  Everybody agreed that each time a 
new agreement was being negotiated it should be briefed to 
the JC. 
 
PSI SHIPBOARDING AGREEMENT 
-------------------------- 
 
¶12. (SBU) Under the category of &Other Business,8 the U.S. 
side inquired about delays in Greece's signing a bilateral 
shipboarding agreement under the Proliferation Security 
Initiative (PSI).  PSI is designed to enhance the detection 
and prevention of illicit WMD material trafficking.  To make 
full use of PSI, the U.S. has asked Greece to sign a 
bilateral shipboarding agreement governing various procedures 
for the inspection of each country's vessels on the high seas 
by either country.  Negotiations over the terms of a ship 
boarding agreement occurred periodically since September 
¶2004.  Greece has endorsed PSI and will host the October 2007 
PSI Experts, Meeting in Rhodes.  But the GOG has not signed 
a bilateral shipboarding agreement due primarily to concerns 
of Greek shipowners, who control a large proportional of the 
world's commercial shipping fleet.  The Ship Owners, 
Association is concerned about how liability for damages 
would be dealt with under the current form of the agreement. 
 
 
¶13. (SBU) At the Joint Commission meeting, CDA ) while 
acknowledging that PSI was outside the normal scope of the JC 
-- stressed that it was in the Greek Government's interest to 
sign the shipboarding agreement since the U.S. was prepared 
to board any vessel suspected of transporting illicit WMD 
whether or not a bilateral shipboarding was in place and 
Greece would be in a better position if an agreement were 
signed.  Mrs. Livada avoided a direct answer, citing the 
complexity of the issue and on-going concerns of the 
shipowners.  CDA said we would like to have progress on the 
issue before the October meeting in Rhodes. 
 
VARIOUS SMALL PROJECTS AT SOUDA BAY NSA 
--------------------------------------- 
 
¶14. (SBU) Souda Bay NSA Executive Assistant Bruce Gale then 
said that there were a number of small projects that needed 
approval before funding disappeared on October 1, 2007. 
Under normal procedures, the projects would be approved by 
the HAF before being presented to the JC.  Gale argued, 
however, that he could not get USN approval and funding for 
the projects until he had conditional approval of the GOG. 
The projects in question included: 
 
-- Connecting the Admin building with an adjoining building 
to provide more space for Greek representatives to Souda Bay 
NSA; 
 
-- Small addition to the Gymnasium; 
 
-- Construction of a small auto &hobby shop8 where Souda 
Bay NSA personnel could repair their POVs. 
 
¶15. (SBU) Gale asked for preliminary approval for the 
construction by the JC, conditional on the HAF giving their 
technical approval for the projects.  The Greek co-chairman 
responded that he could not give the approval now but would 
expedite the approval within the MFA even without the HAF 
technical evaluation.  Gale asked for an answer by August 15 
before funding evaporated.  The Greek co-chairman promised a 
timely, even if unofficial, answer. 
 
¶16. (SBU) Finally, the Greek side inquired about the dates of 
the next U.S.-Greek High Level Consultative Committee (HLCC), 
which is slated for Washington.  The U.S. side responded that 
it did not yet have a firm date, but hoped the meeting would 
take place in October. 
 
¶17. (SBU) 99th Joint Commission participants: 
 
U.S. DELEGATION: 
 
 
ATHENS 00001531  004 OF 004 
 
 
U.S. Embassy: 
Mr. Thomas M. Countryman, Charge d,Affaires a.i. and JC 
Co-Chairman 
Dr. Paul M. Carter, Jr., Deputy Political Counselor and 
Political-Military Chief 
 
Office of Defense Cooperation (ODC): 
Colonel Steve G. Boukedes, ODC Chief 
Lt. Colonel Robert L. May, Jr., ODC Legal Advisor 
Ms. Alexandra Karavasili, Host Nation Attorney 
Ms. Catherine Hirt, ODC Legal Assistant 
 
Souda Bay NSA: 
Captain Thomas McDonough, Base Commander 
Commander Mark Nowicki, Executive Officer 
Mr. Bruce Gale, Executive Assistant 
Lt. Brett Cook, Judge Advocate General's Office 
 
GREEK DELEGATION: 
 
Ministry of Foreign Affairs: 
Mr. Greg Vassiloconstandakis, Acting Director A7 Directorate, 
JC Co-Chairman 
Ms. Fanni Leivada, Legal Department 
 
Hellenic National Defense General Staff (HNDGS): 
Colonel G.Petkos, IRD 
Colonel L. Assimakis 
 
Hellenic Navy: 
Captain A. Krimiotis,G2 
 
Hellenic Air Force: 
Colonel V. Tsakoumis, Commander 115th CW 
Major Th. Papadakis, Assistant Representative to U.S. Facility 
COUNTRYMAN