CODEL HYDE AFFIRMS STRONG U.S.-GREECE FRIENDSHIP

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 002263

SIPDIS

DEPARTMENT EUR/SE FOR PARENTE, H FOR COOPER

E.O. 12958: DECL: 08/29/2015
TAGS: OREP PREL PGOV IR TU IZ GR VISIT
SUBJECT: CODEL HYDE AFFIRMS STRONG U.S.-GREECE FRIENDSHIP
WITH FM MOLYVIATIS

REF: ATHENS 2161

Classified By: Amb Charles P. Ries for reasons 1.4 (b) and (d)


1. (C) SUMMARY: At an August 26 meeting with Foreign
Minister Molyviatis, CODEL Hyde emphasized the close
relationship between the U.S. and Greece, and noted that
despite differences in the run-up to the Iraq war, the
bilateral relationship was strong and getting stronger.
Standing in for Chairman Hyde, Rep Bilirakis thanked Greece
for its contributions in Afghanistan, encouraged continued
support for the Iraq effort, and broached the Macedonia Name
issue. The CODEL pressed the FM for a Greek position on a
hypothetical Israeli strike against Iran, and sought more
information on the state of the Greek economy. END SUMMARY.



2. (U) Foreign Minister Molyviatis warmly welcomed the group
to Greece, noting that the visit was another sign of the
close, friendly relations between the U.S. and Greece. He
remarked that Greece, "a strong friend and staunch ally" of
the U.S., remembers what the U.S. did during and after WWII,
noting, "we do not forget our debts." He remarked that the
bilateral relationship has improved significantly in the last
few years, and he agreed completely with the Secretary's
oft-quoted comment from his last U.S. visit that "the U.S.
has no better friend in the Balkans than Greece."

FM describes relationship with Turkey
--------------

3. (SBU) Responding to Congressman Bilirakis' request for a
Turkey overview, the FM said that the integration of the
Balkans and Turkey into the Euro-Atlantic institution is an
area where U.S. and Greek objectives coincide. This, he
maintained, is the main reason Greece supports Turkey's
eventual EU accession, "although they do not always make it
easy for us." The FM noted Turkey should increase respect
for minorities, religious freedom, and religious property,
and be "more straight" in its military activities in the
Aegean. Greece and Turkey have good cooperation, he added,
on trade, economic issues, banking, and energy.

The War in Iraq
--------------

4. (U) Rep Markey asked the FM for his views on Iraq and
what the war means for U.S.-Greece and Greece-EU relations.
Molyviatis detailed Greek contributions to the international
effort to rebuild a safe, secure Iraq, and stated that he
wanted to see full sovereignty transferred to the Iraqis as
soon as possible. The FM explained that Greece stood by the
NATO Istanbul Summit decisions, and while Greece could not
conduct training in Iraq, it has already offered to train
doctors and judges outside Iraq and provides funding to the
NATO training mission.


5. (U) Ambassador noted that it is incumbent upon the U.S.
to take advantage of this generosity, noting Greece is
providing equipment transport and will donate 500 armored
personnel carriers to Iraq. Ambassador mentioned that Greek
military officers assigned to NATO billets still cannot go to
Iraq even under their commander's orders, and argued that
relaxing this requirement would make a largely symbolic
impact that would be widely appreciated. The FM thanked
Ambassador for detailing Greece's contributions, and said he
would again take up the point of the NATO staff officers.

Iran's Nuclear Ambitions
--------------

6. (C) Recalling Israel's 1981 attack on the purported Iraqi
WMD site in Osirak, Rep Markey asked the FM how Greece would
react to a similar "preemptive attack" that the Israelis
might carry out against Iran. The FM responded that he
supported a diplomatic solution, as the consequences of a
military strike would "not be positive." In addition to
proliferation, Molyviatis continued, economic and security
factors should also be taken into account. He acknowledged,
however, that the new Government of Iran "is not looking
hopeful." Pushed on what should happen if an impasse is
reached on Iran's nuclear technology, the FM said it was
unclear just how close Iran was to developing a nuclear
weapon. If it is tomorrow, the FM stated, "maybe we need to
discuss a military option," since Greece is physically close,
and "does not want to be threatened by Iran." If however, a
weapon is 5-10 years away, the FM deemed there is time to
seek a diplomatic solution.

The Greek Economy
--------------

7. (U) Responding to Rep Watt's question on the state of the
Greek economy, the FM detailed problems with the external
debt and trade deficit, saying that he did not want to accuse
the previous government for these, but this government has a
difficult task at hand. He explained a GoG proposal to
simplify Greece's Byzantine tax code by introducing a 25
percent flat tax over the next two years, and to improve
Greece's investment climate by eliminating existing
bureaucratic impediments. The FM stressed that it is the
GoG's goal to create a healthy economic environment which
will attract U.S. investors and investment.

Macedonia Name Issue
--------------

8. (SBU) Molyviatis justified Greece's position on the
Macedonia name issue because the name "creates confusion" in
the region, since areas of Greece and Bulgaria are also
called Macedonia and are part of "historic Macedonia."
Molyviatis explained that of the area of "historic Macedonia"
roughly 50 percent was now in Greece, 20 percent in Bulgaria,
and 30 percent in "FYROM." Although admitting UN Special
Negotiator Nimitz has been working for a solution, Molyviatis
said the U.S. recognition of Macedonia by its constitutional
name was "to say the least, not a helpful move, and one which
allows FYROM to be more inflexible with the support of the
US." The FM hopes a decision on the name can be reached
before NATO and EU accession arrangements with Macedonia are
decided, saying "it is obvious that this will create a
problem" because Greece will never consent to accession of
Macedonia to these bodies under its constitutional name.

Broader Middle East Initiative
--------------

9. (U) The FM closed the meeting by telling the CODEL that
Greece supported efforts to spread freedom and democracy in
the broader Middle East, to include hosting an international
conference in early 2006 on the subject. This, he
acknowledged, is both a noble and practical objective, since
"democracies do not go to war against each other." Greece
hopes this will contribute to lessening the problems of
terrorism.


10. (U) COMMENT: CODEL Hyde's meeting with the Foreign
Minister provided an excellent opportunity to review U.S.
foreign policy priorities as summer comes to an end. We will
use Greece's desire to cement its good relations with the
U.S. to expand Greece's contributions in key areas raised by
the CODEL, especially Iraq and Turkey. END COMMENT.


11. (U) CODEL Hyde has cleared this message.
RIES