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PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHKW RUEHLA RUEHLN
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DE RUEHIK #0027/01 1280729
ZNR UUUUU ZZH
P 080729Z MAY 09
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC PRIORITY 0448
INFO RUEHTH/AMEMBASSY ATHENS PRIORITY 0327
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIK/AMCONSUL THESSALONIKI 0491

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