C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 002132
SIPDIS
SIPDIS
E.O. 12958: DECL: 10/29/2017
TAGS: PREL, PGOV, PARM, PBTS, PHSA, ECON, EWWT, GR
SUBJECT: GREEKS EAGER TO COOPERATE ON BLACK SEA ISSUES
REF: A. 06 SECSTATE 162288
B. SECSTATE 91451
C. SECSTATE 132171
D. ATHENS 342
Classified By: POLCOUNS ROBIN QUINVILLE. REASONS 1.4 (B) AND (D).
1. (C) SUMMARY: In a readout of the October 25 BSEC FMs'
meeting, MFA participant Ambassador Metaxas said it had been
a "very tough meeting," which ultimately proved a success.
Greece had opposed the proposed admittance of Iran, Japan,
and Cyprus as BSEC observers because of the second-class
status Cyprus was likely to receive from Turkey. Greece
faced opposition from Turkey and Russia on its proposed
donation of 2 million euro to the BSEC Special Development
fund because of the way the fund would be administered and
its partial focus on good governance. Greece also hoped to
change the focus of the BSEC budget from maintenance of the
secretariat to project funding. Greece welcomed the U.S.
SIPDIS
proposal (ref c) for further cooperation on Black Sea issues.
END SUMMARY.
2. (C) On October 29, DepPolCouns and DepEconCouns delivered
ref c demarche on the U.S. desire to strengthen cooperation
on Black Sea issues to MFA B2 Directorate for Bilateral
Economic Relations Ambassador Ioannis Metaxas and B2 First
Secretary Eftychia Bacopoulou. They, in turn, took the
SIPDIS
opportunity to provide a readout of the October 25 Istanbul
FMs conference of the Black Sea Economic Cooperation (BSEC)
organization.
3. (C) Metaxas prefaced his readout with praise for Turkey's
current chairmanship of BSEC, which he said had resulted in a
number of new meeting initiatives, as well as inauguration of
a new phase of BSEC cooperation with the EU and the U.S. He
noted among those meetings a recent conference in Greece of
ministers of culture to discuss coordinating economic and
cultural issues, an ad hoc meeting in Turkey on customs
cooperation, and another meeting in Greece on reforming the
BSEC budget process (which Metaxas described as "antiquated")
He said Greece -- the country-coordinator on budget reform
-- wanted to move BSEC from a budget focused on funding the
secretariat to one focused on project funding. In
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particular, he noted that it was a Greek success to obtain
ODA status with a 78 percent coefficient for donations to
BSEC. (Comment: as the GOG is BSEC's largest contributor at
1.3 million euro per year, this will presumably help the GOG
meet EU-standard bilateral assistance goals).
ISTANBUL MEETING
----------------
4. (C) Metaxas termed the Istanbul FMs' session a "very tough
meeting," which dealt with controversial issues but
ultimately proved a success. One contentious issue was the
proposed admittance of Iran, Japan, and Cyprus as new
observer countries to BSEC. The U.S. status as an observer
was renewed, but none of the new applicants was admitted due
to Greek opposition. Metaxas explained that Greece belQpecial Development fund,
the first such single-country donation. The Russians and
Turks were the leading opponents, though Metaxas was vague on
the reasons for their opposition. The Turks did not like the
"way the (proposed) fund would be administered," while the
Russians had given some reason that they were now
"reconsidering." Metaxas hinted, however, that Russian
opposition might stem from sensitivity about the nature of
the projects on which Greece proposed to earmark the funds.
These included such presumably innocuous proposals as
transportation, the environment, renewable energy, and
cultural tourism, but also the politically more contentious
proposal on good governance. Greek FM Bakoyannis expressed
disappointment at the opposition, and Greece had for now
withdrawn its donation offer. Metaxas told us, however, that
Azerbaijani, Bulgarian, and Ukrainian BSEC representatives
had subsequently contacted him to express support for
re-introducing the proposal for a development fund in the
ATHENS 00002132 002.2 OF 002
future.
U.S. COOPERATION PROPOSAL
-------------------------
6. (C) Given the contentious atmosphere that characterized
the Istanbul meeting, Metaxas said he found the U.S. demarche
on cooperation refreshing. He welcomed its avoidance of
hot-button political and military issues and said it seemed
to provide a good basis for future cooperation. Greece would
study the demarche carefully and provide us with a considered
response as soon as possible.
7. (C) COMMENT: Metaxas shied away from full explanations of
contentious issues, particularly the motivations of Greece's
opponents. Nevertheless, it is clear that Greece welcomes
U.S. participation in BSEC, both as a counterpoise to the
Turks and Russians, and because Greece's conception of the
organization and the types of projects it could undertake is,
for now, close to that of the U.S.
COUNTRYMAN