VZCZCXRO4894
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHIK #0034/01 2170602
ZNR UUUUU ZZH
R 050602Z AUG 09
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC 0464
INFO RUEHTH/AMEMBASSY ATHENS 0340
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIK/AMCONSUL THESSALONIKI 0507

UNCLAS SECTION 01 OF 03 THESSALONIKI 000034 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EUR/SE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL SMIG SNAR SOCI GR TU
SUBJECT: NORTHERN NOTES - JULY 2009 
 
THESSALONI 00000034  001.2 OF 003 
 
 
Following is a summary of last month's major developments in 
Northern Greece: 
 
 
 
GREEK MUSLIM PROSECUTED FOR ESPIONAGE 
 
 
 
¶1.     (SBU) On July 29, local media reported the arrest of a 
Greek Muslim on charges of espionage for Turkey.  The arrested 
man, who comes from Thrace, was allegedly approached by two 
Turkish people who were unknown to him and asked to photograph 
Greek military installations alongside a series of islands in 
the northeastern Aegean.  According to press reports, Greek 
authorities found around 600 photos in his possession, 400 of 
which were described as "very sensitive."  Greek authorities are 
reportedly treating the case as "extremely serious," and the 
incident has given rise to calls, such as those by the 
extreme-right LAOS party, for "official acknowledgement of the 
fact that Turkey is an enemy" and "realization of the fact that 
subscription to Turkey's European course is a national suicide 
for Greece."  Local Thrace press claimed that the arrested 
individual was "only one of about 100 that operate in Greece on 
behalf of Turkey and other destabilizing centers." 
 
 
 
THESSALONIKI WATER AND SEWAGE COMPANY TO BE PARTLY PRIVATIZED 
 
 
 
¶2.     (U) Local media reported that the GoG has decided to sell 
23 percent of the Thessaloniki Water and Sewage Company's shares 
to a strategic investor.  Post's sources expect the announcement 
of an international tender soon.  In an effort to reassure those 
opposing the initiative, Minister of Macedonia-Thrace Stavros 
Kalafatis stressed that the state would still retain 51% of the 
shares and along with them, full control over staffing, prices 
and facilities. 
 
 
 
UNEMPLOYMENT RISES IN NORTHERN GREECE, TOGETHER WITH 
OFF-THE-BOOKS LABOR 
 
 
 
¶3.      (U) On July 15, local media published the figures 
offered by Greece's National Statistics Service, concerning 
unemployment in Northern Greece.  The numbers show that compared 
to 2008, unemployment has risen from 8.4% to 9.7% in Central 
Macedonia, from 7.5% to 8.3% in Eastern Macedonia and Thrace, 
and from 13.8% to 15% in Western Macedonia.  The sectors most 
seriously affected include construction and tourism.  According 
to a separate report, 70% of construction workers in the town of 
Xanthi are currently unemployed.  On a related note, an EU 
Commission survey published on July 16, revealed that 
off-the-books labor in Greece represents as much as 20% of the 
country's GDP.  According to the survey, the areas with the 
biggest percentages of uninsured labor can be found in Thrace, 
with the figures presented being 70% (prefecture of Rodopi), 30% 
(prefecture of Evros) and 25% (prefecture of Xanthi). 
 
 
 
GREECE-BULGARIA SIGN AGREEMENT FOR NATURAL GAS PIPELINE 
 
 
 
¶4.      (U) On July 14, Greece and Bulgaria signed an agreement 
in Sofia for the construction of a natural gas pipeline that 
will run between the towns of Komotini, Greece and Stara Zagora, 
Bulgaria, and will bring gas from Azerbaijan to Europe via 
Greece and Bulgaria.  The new pipeline will be 150 km long and 
effectively be an extension to the main TGI pipeline.  The 
agreed upon project will be partially funded by the EU and local 
media received it as "contributing to greater energy 
independence for Greece." 
 
 
 
EUROPEAN COURT OF HUMAN RIGHTS ISSUES RULINGS AGAINST GREECE 
 
 
 
¶5.     (SBU) Kurdish Immigrant - On July 7, the ECHR vindicated 
a Kurdish asylum seeker who claimed that he was treated in a 
degrading manner by the Greek authorities and was detained 
 
THESSALONI 00000034  002.2 OF 003 
 
 
illegally for two months in a detention center near the 
Greek-Turkish border and for another six days in solitary 
confinement at an Athens police station.  The Court ordered 
Greece to pay the claimant around $14,000 (10,000) in damages. 
 
Muslim Mother of Four - On July 13, the ECHR ruled in favor of a 
Muslim mother of four living in Thrace, who had been denied by 
Greek authorities a state benefit for mothers of large families, 
on the basis that one of her children, although still a minor, 
had married and therefore could no longer be considered a 
dependent family member.  Without the inclusion of the wedded 
minor, the family would not qualify as "large" and was deprived 
of the relevant benefits.  The Court ordered Greece to pay the 
claimant around $22,000 (15,955) in damages and court expenses. 
 
Prolonged Detention Cases - On July 24, the ECHR decided that in 
two drug-related cases, four people were unjustifiably detained 
for over three months in inappropriate conditions at different 
police stations.  Greek authorities claimed this was due to lack 
of space availability in prisons. 
 
 
 
THRACE MINORITY DEVELOPMENTS 
 
 
 
¶6.      (SBU)Turkophone Community - On July 11, former Minister 
of Education (and current Minister of Transportation) Evripidis 
Stilianidis presented in a widely publicized press conference, 
the GoG'S achievements in the field of minority education. 
Among the successes he noted, were the increase in the number of 
minority schools, the decrease of drop-out levels among minority 
students and also, a significant increase in the number of 
minority students who enter Greek universities. 
 
Pomaks - On July 13, former Chairman of the Greek Parliament and 
high-ranking PASOK cadre Apostolos Kaklamanis tabled a question 
in Parliament concerning Pomak people's human rights. 
Kaklamanis urged the GoG to recognize Pomak as an additional 
minority language and to provide the community in question with 
schools in which classes will be conducted in both Greek and 
Pomak.  According to the local press, the two Muslim MPs visited 
Mr. Kaklamanis in his office and protested against his 
initiative, threatening that the minority may desert PASOK in 
the upcoming general election should the proposal not be 
withdrawn. 
 
Roma - On July 11, Deputy Minister of Employment and Social 
Protection Sophia Kalantzakou announced that the GoG has 
approved a package of 14m ($20m) for the support of 500 Roma 
businesses and the training of another 300 Roma people in 
various trades. 
 
 
 
SECURITY INCIDENTS 
 
 
 
¶7.     (SBU) The past month saw significantly increased activity 
in security incidents.  On July 8, unknown culprits placed an 
improvised incendiary device, outside the main entrance of a 
block of apartments in Thessaloniki that included the residence 
of a far-right leading figure.  The fire caused minor damages 
and no injuries.  The organization "Antifascists Core 
Assault-Commandos Solidarity Memory" assumed responsibility for 
the attack.  On July 17, unknown culprits threw a defense-type 
hand grenade at the main entrance of a block of flats.  The 
explosion caused considerable damage to the entrance and to four 
cars, parked nearby.  On July 21, unknown culprits placed an 
improvised incendiary device, outside the governing party's (New 
Democracy) youth offices.  The fire caused minor damages and no 
injuries.  The organization "Subversive Consciousness" assumed 
responsibility for the attack which they claimed was in support 
of a jailed anarchist.  On July 22, unknown culprits placed a 
bomb outside the front door of the Chilean Consulate in 
Thessaloniki.  The bomb squad arrived on the scene after 
receiving a warning call, and proceeded with a controlled 
explosion of the bomb.  The organization "Collusion Cores of 
Fire" assumed responsibility for the attack, carried out "in 
memory" of a Chilean "urban guerilla," killed recently after the 
accidental explosion of a bomb he was carrying.  On July 22, 
unknown culprits set on fire a Cyprus diplomatic vehicle.  The 
fire caused major damage to the vehicle but no injuries were 
reported.  On July 22, unknown culprits placed an improvised 
incendiary device, outside the main entrance of the governing 
party's (New Democracy) offices.  The fire caused minor damage 
and no injuries. The organization "Vacation Objectors" assumed 
 
THESSALONI 00000034  003.2 OF 003 
 
 
responsibility for the attack, "in support" of a jailed 
anarchist. 
 
 
 
NARCOTICS 
 
 
 
¶8.      (SBU) On July 10, police at the Thessaloniki airport 
arrested a Romanian national for carrying 3.350 kilos of heroin 
in his luggage. The arrested individual was about to board a 
flight to London.  According to reports, police believe he may 
have been a member of an international drug-trafficking ring, 
also including another Romanian who was arrested last month at 
the same airport with approximately 4.5 kilos of heroin.  In 
another incident, customs officials on the Greek-Turkish border 
arrested a Lithuanian national for attempting to smuggle 10.760 
kilos of heroin into the country.  He is the second Lithuanian 
to be arrested at that customs post attempting to smuggle heroin 
into Greece.  Finally, on July 16, at the same customs post on 
the Greek-Turkish border, customs officials arrested a Romanian 
and a Bulgarian national for carrying a total of 14 kilos of 
heroin in two suitcases. 
 
 
 
CONTRABAND PRODUCTS - PIRATED CDs/DVDs 
 
 
 
¶9.     (U) On July 28, local media reported that the 
Thessaloniki Police uncovered two manufacturing companies that 
were producing high quality contraband goods.  From the 
companies' client lists, it became apparent that the goods were 
sold to illegal street vendors, as well as to department stores. 
 The investigation is continuing.  In a separate case, the 
Anti-Piracy Operations for the Protection of Audiovisual 
Products (a branch of the Motion Pictures Association) led to 
the arrest of a 35 year-old, who was "distributing" audiovisual 
goods through his website.  Also, police in Thrace arrested five 
foreign nationals (one of whom was a minor) for possessing a 
total of 997 CDs and 31 DVDs, all pirated.  The Court ordered 
fines for all arrested, totaling almost $28,000 (20,000). 
Finally, in another case in Thrace, police arrested two foreign 
nationals (one of whom a minor) for possessing a total of 463 
pirated CDs and 157 pirated DVDs. 
 
 
 
ILLEGAL IMMIGRATION ARRESTS 
 
 
 
¶10.   (U) In ten different cases in July, Hellenic Police in 
Northern Greece arrested 21 smugglers and 124 illegal 
immigrants.  Of the latter, 48 were Iraqis, 10 were Iranians and 
5 were Pakistanis.  The arrested group also included a total of 
22 minors (children and infants.)  According to the local media, 
Hellenic Police believe that two of the smugglers arrested on 
July 17 are high-ranking members of an international trafficking 
ring, active in China, Russia, Serbia, Macedonia and Greece. 
The ring's prices are reported to range between $8,000 to 
$13,000 per person for long routes, e.g. China-Greece, and 
around $4,000 for shorter ones, e.g. Iran-Greece. 
KING