CODEL GOODLATTE'S FEBRUARY 24-27, 2005 VISIT TO

UNCLAS SECTION 01 OF 03 ATHENS 000616 SIPDIS CODEL H - PLEASE PASS TO CODEL GOODLATTE, ALSO FOR EUR/SE ROME FOR FAS E.O. 12958: N/A TAGS: OREP EAGR ECON EINT PREL GR VISIT SUBJECT: CODEL GOODLATTE'S FEBRUARY 24-27, 2005 VISIT TO ATHENS REF: A. ATHENS 00503 ¶B. STATE 24215 ¶C. ATHENS 00356 ¶D. STATE 16329 ¶1. (U) SUMMARY: A congressional delegation led by Representative Bob Goodlatte visited Athens on February 24th to 27th, 2005 and held wide ranging meetings on agricultural, telecommunication, and other issues. CODEL Goodlatte discussed Internet opportunities in Greece with the Minister of Transportation and Communication, Turkey's path to EU membership with the Minister of Foreign Affairs, bioterrorism and trade obstacles with the Minister of Agriculture, and the state of Greece's economy with Minister of Economy and Finance. CODEL Goodlatte also met with the President of the Panhellenic Confederation of Agricultural Cooperatives to discuss agricultural issues from the Greek farmers' perspective, as well as visiting a dairy cooperative. END SUMMARY. -------------- MINISTRY OF TRANSPORTATION AND COMMUNICATION -------------- ¶2. (U) CODEL Goodlatte's conversation with Minister of Transportation and Communication Liapis focused on the Internet in Greece. Currently, Greece has the lowest rate of Internet usage in the EU15 at 18 percent of the population. Broadband access is even worse, with less than .005 percent of the population subscribing to ADSL or IDSN service. Minister Liapis gave a short presentation on the subject and provided information on the new electronic communications bill his ministry hopes to present to Parliament in the next few weeks. The bill will address regulatory concerns, simplify licensing procedures for service providers, and clarify rights of way for network infrastructure. ¶3. (U) Members of CODEL Goodlatte stressed the potential benefits in increased efficiency and promotion of high tech industries that come with increased Internet usage, as well as the interest of U.S. companies to provide sales and services to such an expansion. Liapis noted that Greece faces geographic difficulties with bringing Internet access to its islands, but that he hopes to increase Greek societal awareness of the Internet, especially through the educational system. He noted that the GoG will be spending slightly over 400 million euro in EU-provided funds to increase broadband and wireless Internet access in Greece, including fiber-optic networks for 60 major Greek cities, 477 new wireless hotspots, and satellite Internet access for remote and underserved areas. Liapis welcomed any U.S. bids on any of the projects being planned. -------------- MINISTRY OF FOREIGN AFFAIRS -------------- ¶4. (U) CODEL Goodlatte thanked Foreign Minister Molyviatis for Greece's cooperation on terrorism, taking note of Greece's success in hosting a safe and secure 2004 Olympic Games. The CODEL cautioned, however, that the release of convicted domestic terrorists did not send the right message. CODEL Goodlatte also expressed appreciation for Greek contributions to the NATO mission in Afghanistan and its recent decision to fund training for Iraqi security personnel. ¶5. (U) In a lengthy exchange, CODEL Goodlatte questioned Molyviatis about Turkey's EU path. Molyviatis told the visiting CODEL that while Greece's decision to support Turkey's EU accession had been a bipartisan effort, it was not necessarily popular with the Greek public. To assure continuing Greek support for Turkish accession, Molyviatis said that Turkey would need to avoid actions that were unpopular in Greece (unstated but implied Turkish "provocations" in the Aegean). Molyviatis pointed out that, to date, Greece was not ONE of the EU members, such as France, that required a referendum to approve Turkish accession to the EU. However, should Turkey continue to "make problems" for Greece, Molyviatis did not rule out that "in ten years" the Greek Government would be forced to cede to the Greek people the decision on whether Turkey joins the EU. Returning to the theme of improving Ankara's performance, Molyviatis stressed that starting EU negotiations was not the same as joining the EU; in the process of joining the EU, Greece hoped to see some progress in Turkish attitudes. At the same time, Molyviatis warned CODEL Goodlatte not to dismiss European "angst" over the Turkish question. Turkey was big, complicated and conflicted in its identity. It bordered Iran and Iraq, and many citizens in the EU were not sure they wanted to be neighbors yet with these countries. That said, Molyviatis summarized his discourse: Greece supports Turkish accession because it is in Greece's best interest. ¶6. (U) Molyviatis also made a point of stressing the vitality of the U.S.-Greece relationship and the U.S.-Europe relationship. He told CODEL Goodlatte that the stability of the world depended on a strong U.S.-Europe relationship and that disagreement did not destroy a relationship like that between the U.S. and EU. Molyviatis praised the President's visit to Europe and what he saw as "new attitudes" in the United States. In particular, he told the CODEL that U.S. engagement on the Middle East Peace Process gave him great hope a solution could be found. It was only the U.S. that could lead on this issue. But in his view, the EU was ready to follow. ¶7. (U) Immediately following the Molyviatis meeting, Deputy Foreign Minister Valinakis hosted a reception in honor of CODEL Goodlatte. Reception guests included Greek Members of Parliament, noted members of the Athens business community, and Embassy officials. This reception enabled CODEL Goodlatte to discuss agricultural and high tech issues directly with Greek lawmakers. -------------- MINISTRY OF AGRICULTURE -------------- ¶8. (U) In their meeting with Minister of Agriculture Basiakos, CODEL Goodlatte discussed three agricultural issues -- geographical indicators, biotechnology, and the Doha Round. Although the U.S. and Greece take different stances on these issues, the CODEL and Basiakos recognized that they share a common concern on bioterrorism and should continue to cooperate in protecting food and water supplies. ¶9. (U) On geographical indicators, CODEL members maintained that it is better to address the issue under a legal framework. They observed, for example, that there is no place in Greece called "feta," implying that feta should not become a legally protected geographical indicator. Basiakos responded that currently there is no discussion of modifying the EU system on geographical indicators, and, in any case, Greek has low weight in such decision-making. ¶10. (U) CODEL members also urged Greece -- through the EU -- to move more quickly in the acceptance of biotech agricultural products. Accelerated acceptance is particularly important for Greece, because of increased competitive pressure in the EU following the expansion to 25 members. Basiakos noted that any change in the current regime would bring opposition by NGO's. Plus, the Greek prefectures are concerned about HEALTH and environmental consequences biotech usage. Finally, CODEL members stressed the importance of improving market access in the Doha agricultural trade negotiations, noting that the EU imposes tariffs on food and agricultural products averaging 30 percent while the U.S. imposes tariffs averaging 12 percent, and that the EU continues to maintain non-tariff barriers on imports of U.S. beef and poultry. -------------- MINISTRY OF ECONOMY AND FINANCE -------------- ¶11. (U) Minister of Economy and Finance George Alogoskoufis and Secretary General of the Ministry George Mergos discussed Greece's efforts to achieve debt reduction and increase its competitiveness. The fiscal inventory conducted last year by the New Democracy government (with the help of Eurostat) revealed major inaccuracies in how the previous PASOK government recorded expenditures, particularly defense procurements. The GoG is taking steps to bring down the deficit without putting economic growth at risk. Measures include limited tax cuts for corporations, a cap on hiring of public sector employees, and a reduction of defense expenditures. Alogoskoufis mentioned that he had just approved a plan for restructuring the parastatal telecommunications monopoly (OTE),which would gradually reduce the state's shares in the company (about 30 percent at present). Furthermore, a telecommunications commission was recently established to oversee competition in the telecommunications sector. ¶12. (U) Alogoskoufis pointed out the need for Greece to be "outward looking" and take the lead in developing economic relations with its closest neighbors: Turkey and other Balkan countries. "If the region thrives economically, so will Greece," he declared. Responding to inquiries about IPR in Greece, Alogoskoufis acknowledged that Greece has had problems in controlling software and motion picture piracy. He recognized the importance of having strong IPR laws and enforcement in order to attract foreign investment. This would be all the more important as Greece seeks to invest more in capital intensive sectors as well as tourism and financial services. -------------- -------------- PANHELLENIC CONFEDERATION OF AGRICULTURAL COOPERATIVES -------------- -------------- ¶13. (U) CODEL Goodlatte met with Mr. Tzanetos Karamihas, President of the Panhellenic Confederation of Agricultural Cooperatives (PASEGES),and discussed agricultural issues from the Greek farmers' perspective. PASEGES is an umbrella organization representing 120 unions, 3500 coops, and 600,000 families. Karamihas identified three main issues confronting Greek agriculture: the rising age of the farming population; the changes in the EU's CAP system; and the small farm sizes. CODEL members contended that biotechnology can help alleviate these problems by enhancing the quality and productivity of a given crop. According to Karamihas, however, consumers seek quality products made in traditional ways. Therefore, Greek farmers aim to improve quality rather than quantity, implying that biotech only boosts productivity but does not benefit consumers. Karamihas added that feta should be a geographical indicator because it is a traditional Greek product with distinctly local parameters. CODEL members replied that, if granted the status of a geographical indicator, feta may follow the example of Roquefort cheese, almost entirely supplanted by blue cheese in the U.S. market. He warned that feta may suffer a similar fate and Greek farmers may lose the advantage of the "feta" name. ¶14. (U) CODEL Goodlatte did not have the opportunity to clear this cable before departure. RIES