US embassy cable - 05ATHENS593

C O N F I D E N T I A L ATHENS 000593 
 
SIPDIS 
 
DHS FOR COAST GUARD 
COAST GUARD ROTTERDAM FOR LCDR BEE 
 
E.O. 12958: DECL: 02/24/2015 
TAGS: ECON, EWWT, GR, AMB 
SUBJECT: AMBASSADORS FEBRUARY 23RD MEETING WITH MINISTER OF 
MERCHANT MARINE KEFALOYIANNIS 
 
Classified By: Ambassador Charles Ries, Reasons 1.4 (b) and (d) 
 
1.  (U) Summary. Ambassador Ries met with Minister of 
Merchant Marine Kefaloyiannis on February 23rd, to discuss 
the International Port Safety Program, legal incidents 
involving Greek owned merchant vessels in U.S. waters, and 
the Greek privatization of port services.  Kefaloyiannis also 
endorsed a training request by the Hellenic Coast Guard and 
asked for help in arranging the donation of an EC2 type 
Liberty ship to become a floating museum in Greece, reported 
septels.  End Summary. 
 
2.  (U) Ambassador Ries met with Minister of Merchant Marine 
Kefaloyiannis on February 23rd.  Ambassador raised the topic 
of the U.S. Coast Guard,s (USCG) new International Port 
Safety Program (IPSP) by noting that ports have been 
identified as a &weak link8 in the war on terrorism, and 
that programs such as the IPSP are designed to secure those 
loopholes.  Ambassador explained the USCG has opened a new 
nine-man office in Rotterdam that can provide assistance and 
information to further the goal of increasing the maritime 
security posture of countries in Europe.  The Minister 
responded that port security had been an issue for Greece 
during the Olympics, and that Greece,s five major ports were 
probably now overprotected from an IPSP perspective.  He 
acknowledged, however, that Greece had an additional 59 
ports, and that bringing them all up to International Ship 
and Port Facility Security (ISPS) code would take some time. 
 
3.  (C)  Ambassador also raised two incidents in which 
vessels belonging to Greek shipping companies, but flagged 
outside of Greece, had been indicted for illegally 
discharging oil into the Pacific Ocean, falsifying ships, 
records, and concealing the activities (including suborning 
perjury).  (Note:  In one incident the Greek shipping company 
has agreed to plead guilty to having ordered its vessel to 
commit the acts and conceal the violations, leading the USCG 
to believe there may be a pattern developing. End note.) 
Ambassador observed that the USCG might have to increase its 
examination of Greek-owned vessels if a few bad apples 
spoiled the reputation of Greek shipping.   Kefaloyiannis, 
clearly not aware of these cases, argued that it is the 
responsibility of the flag state to enforce best practices, 
but agreed that it would reflect poorly on Greece if it 
appeared that Greek ship owners were instructing their 
vessels to flagrantly disregard U.S. maritime environmental 
laws. 
 
4.  (U) For his part, Kefaloyiannis touted new plans to 
privatize port services in Greece, especially in southern 
Crete, as well as to fully privatize other ports in the 
country.  Although he did not have specific details at the 
time of the meeting, he noted that these plans would be 
published soon, and that the GoG would welcome U.S. 
investment in this sector.  Ambassador observed that when 
these privatization policy changes were in place, the Greeks 
should seek to publicize them in the U.S.  Ambassador also 
noted that policy changes such as port service privatizations 
could go a long way towards positioning Greece to make the 
most of its geographic position between Europe and the Middle 
East. 
 
5.  (C) Comment:  The GoG is aware of its next steps 
regarding ISPS compliance, and has begun to look for private 
contractors to create security plans for those ports that 
were not involved in the Olympic security program.  The HCG 
has been ready and willing to work with the USCG 
representative in Rotterdam, and we will encourage the GoG to 
comply fully with all ISPS code requirements within a 
reasonable time frame. 
 
6.  (C) On the topic of Greek-owned vessels violating U.S. 
maritime laws, after the official meeting, members of 
Kefaloyiannis, staff commented that they support a USCG 
crack-down on Greek-owned ships flying flags of convenience, 
in order to help the Ministry in its efforts to bring 
shipping back to the Greek flag.  The Ministry has been under 
pressure for several years to reverse the outflow of 
Greek-owned or operated vessels to other flags.  Thus far 
these efforts have been fruitless.  In 2004, 140 ships were 
flagged in Greece, but 143 Greek flag ships were reflagged. 
End Comment. 
 
RIES