An abrupt diplomatic tiff on Greek territory erupted on Wednesday with the Chinese embassy in Athens releasing a scathing attack against the new US ambassador in the country, Kimberly Guilfoyle, after the latter went on record last week as bemoaning the fact that the port of Piraeus concession is owned and managed by a Chinese company.
Guilfoyle, in an initial television interview after presenting her credentials, stated that Chinese control of Greece’s busiest and busiest port is “unfortunate”.
“It is unfortunate, but I think there’s ways around it, that something could be worked out, whether you pursue a path of enhancing output in other areas or perhaps that Piraeus could be for sale,” the very high-profile former top Trump adviser said in an interview to Athens-based Ant1.
In a reply on Wednesday, the spokesman of the Chinese embassy in Athens referred to a malicious slandering of the Greece-China trade agreement, while also accusing Guilfoyle of interfering in Greece’s domestic affairs. Taking the reaction a step further, the Chinese spokesman said the statements by the US envoy were of a “Cold War” mentality.
“When Greece faced the debt crisis, China extended a helping hand, allowing the Port of Piraeus to develop into one of Europe’s leading major ports, offering significant economic benefits to Greece,” the spokesperson said, in referring to the majority stake acquired by Shanghai-based Cosco for the long-term concession of the port authority.
Cosco acquired gained a “toehold” at the port in late 2008 when it assumed control of the Piraeus container terminal for 35 years. Eight years later amid the punishing debt and economic crisis enveloping Greece, Cosco – essentially the lone bidder – acquired a majority stake of 51% of Piraeus Port Authority S.A. (PPA) for 280 million euros, although the total value of the long-term agreement, combining the equity purchase and mandatory investments, is estimated at 1.5 billion euros. Cosco’s current stake is 69%.
One of the more unusual facets of the 2016 agreement was the fact that it was shepherded, finalized and brought to Parliament for ratification by then “strange bedfellows” coalition government in power, the majority hard left SYRIZA party and its minority partner, the small right-wing, anti-austerity and Eurosceptic AN.EL party. Both parties had bitterly opposed any privatization before assuming the country’s reins from 2015 to July 2019.
Since assuming the management, the PPA has posted surging volume of transited goods and passengers, turnover and profits.
Guilfoyle, a former media personality and one-time prosecutor in San Francisco, also said that Chinese influence in the east Mediterranean EU member-state could possibly be balanced by increased US investment in infrastructure.
“I think it’s very important to have American infrastructure here to help support the region. To perhaps, in fact, enhance output from other ports and areas to balance against the Chinese influence with the port of Piraeus,” she said.
