US embassy cable - 05ATHENS1770

UNCLAS SECTION 01 OF 03 ATHENS 001770 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA JPROSELI AND L/CID JNICOL 
 
STATE FOR USTR FHUEGEL AND OPIC O'SULLIVAN 
 
USDOC FOR ITA ATAYLOR 
 
TREASURY FOR DO CHRISTOPULOS 
 
E.O. 12958: N/A 
TAGS: EINV, EFIN, PGOV, KIDE, CASC, GR 
SUBJECT: 2005 REPORT ON INVESTMENT DISPUTES AND 
EXPROPRIATION CLAIMS: GREECE 
 
REF: A) STATE 70014; B) 04 ATHENS 2132 
 
1.  Per ref A, the following are the investment 
dispute and expropriation claims that have come to 
attention of ConGen Thessaloniki and FCS and Consular 
and Economic sections Athens since post's last report in 
June 2004 (ref B). 
 
2.  Case 1: 
 
a) Claimant A 
 
b) June 1999 
 
c) Claimant A is a wholly owned subsidiary of a U.S. 
manufacturing design firm that produces patented 
plastics manufacturing system and equipment.  In the 
1990s, the U.S. parent company applied to the GOG for 
industrial investment incentives in order to 
establish a plastics manufacturing plant in northern 
Greece, which would incorporate the company's 
manufacturing systems and equipment.  Claimant A 
maintains that the project is now 85 percent complete 
but that the GOG has not met its incentives payment 
commitments, and that this is preventing final 
completion of the project and its opening for 
business.  The GOG maintains that Claimant A has not 
fully met its responsibilities under the law 
regulating investment incentives, and that therefore 
claimant will not receive further incentive payments. 
The dispute has continued for four years, with every 
attempt at advocacy to resolve the matter having 
failed -- including advocacy at the highest levels. 
Last year, Claimant A attempted to secure the support 
of a Greek investor, also in the plastics sector, to 
complete the project.  All work on the project has 
come to a halt and some aspects of the case are being 
litigated in the Greek courts.  Unless granted 
judicial relief, and this is far from certain, the 
U.S. company will likely lose its entire investment 
in the project. Post has been unable to 
contact Claimant A and has received no 
information in the last three years; 
therefore, we will discontinue this case in 
future reports. 
 
3.  Case 2: 
 
a) Claimant B 
 
b) May 23, 2000 
 
c) On May 23, 2000, an attorney for Claimant B 
informed Post that the municipality of Amaroussio (in 
Northern Athens) stated that it planned to annex 
5,160 square meters of Claimant B's property into the 
Municipality's public property.  The Municipality 
also demanded that Claimant B pay taxes on 900 square 
meters of property that had not previously been 
taxed.  Claimant B has owned the property for over 30 
years and claims that the municipal action violates a 
1954 Treaty of Friendship, Commerce and Navigation 
between Greece and the United States.  He believes 
the action taken against his property is 
discriminatory.  On June 1, 2001, Claimant B won a 
partial victory when an appellate court ordered the 
Municipality to return 1,500 square meters of the 
property.  On June 3, 2002, Claimant's attorney 
informed post that the Municipality has decided to 
require a monetary contribution from Claimant B in 
lieu of the property.  On May 6, 2003, claimant's 
attorney informed post that the municipality is 
requesting the amount of 3,750 Euros.  Claimant B 
sought legal relief from the monetary contribution on 
the grounds that the property is owned by a not-for- 
profit religious association.  Local court 
ruled that the amount of the monetary 
contribution is not correct and requested the 
Municipality to recalculate the amount. 
Claimant's new attorney has appealed court's 
ruling insisting that Claimant should not have 
to pay any contributions.  Hearing date has 
not been set yet. 
 
 
4.  Case 3: 
 
a) Claimant C 
 
b) February 11, 1999 
 
c) On February 12, 1999, Claimant C notified Embassy 
Consular Section that the caretaker of his offices in 
Mycenae (Peloponnese) had been evicted and that the 
mayor of Mycenae had taken possession of the 
building.  The building had been constructed with 
funds raised by a U.S. - based foundation.  Claimant 
C charged that this action violated an agreement made 
when the building was constructed wherein Claimant C 
agreed to share two of the offices with local 
residents.  On November 25, 1999, a local court 
ordered the Mayor to vacate Claimant's property.  As 
of May 2002 Claimant C's attorney stated that not all 
of the office occupants had been evicted as the court 
ordered.  Claimant C filed a new lawsuit against the 
community of Mycenae seeking the complete eviction of 
all occupants.  The hearing in the case was scheduled 
for November 20, 2002, but was postponed twice.  According 
to Claimant C's attorney, a new hearing has been set 
for January 18, 2006. 
 
5.  Case 4: 
 
a) Claimant D 
 
b) October 19, 2001 
 
c) Claimant D inherited property on the island of 
Kastellorizo from his grandfather, who bought the 
land over 50 years ago.  In October 2000, the 
Claimant reported to the Consular Section that the 
Mayor of Kastellorizo was attempting to seize the 
property.  When Post contacted the Greek Ministry of 
Aegean we were informed that the city of Kastellorizo 
has a claim to the property under Greek law that 
accords rights to squatters.  Claimant D retained a 
local attorney to represent him.  Post has sent two 
diplomatic notes to the Ministry of foreign Affairs 
asking about the status of the case.  In July 2003, 
the Ministry of Foreign Affairs responded by 
transmitting a letter from the mayor of Megistis, 
where the property is located.  The mayor states in 
his letter that claimant does not have the proper 
documentation to establish ownership of the property. 
On May 23, 2005, claimant's attorney informed 
the embassy that he is taking the case to 
court because he finally got a witness to 
testify in court.  The attorney said that 
negative publicity on TV in the recent past 
concerning illegal activity of the Mayor of 
Kastellorizo might help the case. 
 
 
6.  Case 5: 
 
a) Claimant E 
 
b) June 2000 
 
c) In September 1992, Claimant E purchased from the 
Department of Land of Dodecanese a 3,200 square 
meters piece of land on the island of Rhodes.  In 
December 1992, the board of a church close to the 
property took Claimant E to court claiming that the 
property belonged to the church.  The local court 
ruled against Claimant E as it decided that the 
property indeed belonged to the church.  Claimant E's 
attorney has asked the Department of Land of the 
Dodecanese to replace claimant's property with 
another piece of land of equal value.  Claimant E 
informed us on May 12, 2004 that the Department of 
Land compensated him by returning the amount he had 
paid for the land 12 years ago with no interest. 
On May 23, 2005, claimant stated that he plans 
to retain the services of another lawyer and 
request compensation through local courts for 
the financial loss he has suffered. 
 
Claimants' Names 
---------------- 
 
7.  Per ref A, the following are the names of the 5 
claimants in the 2004 Greek Investment Disputes and 
Expropriation Claims Update: 
 
--Claimant A is Polyform USA, LLC.  Polyform is a 
wholly owned subsidiary of Science International 
Inc., headquartered in Daphne, Alabama.  The 
president of the company, Dr. Jack Boykin, has sought 
assistance from post in writing. 
--Claimant B is the Jehovah's Witness Bible and Tract 
Society of Pennsylvania, 77 Kifissias Avevue, 151 24 
Maroussi, Athens, Greece.  A Greek citizen who has 
not filed a privacy act waiver is representing the 
organization. 
--Claimant C is the Mycenaen Foundation, 1270 Avenue 
of the Americas, New York, N.Y. 10020-1795.  It has 
not filed a privacy act waiver, however, it did 
request the assistance of the Embassy in writing. 
--Claimant D is Charles Thomas McGlade, 4055 Spring 
Blvd., Eugene, OR 87405.  He has not signed a privacy 
act waiver. 
--Claimant E is Charles S. Fentules aka Afentoulis, 
1231, North Road, Apt. 274, Niles, Ohio 44446.  Mr. 
Fentules requested embassy's assistance in writing. 
 
RIES