CODEL SMITH MEETINGS WITH GREEK POLITICAL AND

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SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV OVIP GR
SUBJECT: CODEL SMITH MEETINGS WITH GREEK POLITICAL AND
BUSINESS LEADERS

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1. (SBU) SUMMARY: In a January 28-29 visit to Athens, CODEL
SMITH met with Prime Minister (PM) Kostas Karamanlis, Foreign
Minister (FM) Dora Bakoyiannis and prominent business leaders
and parliamentarians. The PM emphasized the good cooperation
between Greek and American authorities investigating the
January 12 rocket-propelled grenade (RPG) attack on the U.S.
Embassy and anti-Americanism in Greece. He also discussed
the Visa Waiver Program (VWP),continued Greek participation
with NATO efforts in Afghanistan, and Greek-Turkish
relations. FM Bakoyiannis touched on similar themes,
including Kosovo and Serbia, Greek-Turkish relations, and the
importance of Greek participation in VWP. With business
leaders, members reviewed economic developments, including in
the energy sector, and identified opportunities to build on
an already strong partnership between Greece and the U.S.


2. (U) CODEL SMITH was comprised of the following Members:
Senator Gordon Smith (R - Oregon),Senator Patrick Leahy (D -
Vermont),Senator Trent Lott (R - Mississippi),Senator Maria
Cantwell (D - Washington),Senator Lindsey Graham (R - South
Carolina),Senator Saxby Chambliss (R - Georgia),Senator Mel
Martinez, (R - Florida),Representative Christopher Shays (R
- Connecticut). The visit -- coming shortly after the RPG
attack on the Embassy -- reinforced GOG efforts to combat
domestic terrorism and bring the perpetrators of the January
12 attack to justice. End summary.

PRIME MINISTER PROMISES ACTION ON RPG ATTACK


3. (SBU) In an hour-long meeting on January 29, PM
Karamanlis underscored the "excellent relationship" between
Greece and the U.S. Recalling the January 12 RPG attack on
the U.S. Embassy in Athens, Karamanlis condemned the act and
pledged that Greece would do its utmost to bring the
perpetrators to justice. Karamanlis described the
perpetrators as likely successors or remnants of the
now-imprisoned November 17 (N17) terrorist organization. The
PM stressed that while it "might not happen tomorrow or the
day after tomorrow," Greece would be successful in bringing
those responsible to justice.


4. (SBU) Delegation Chairman Sen. Gordon Smith noted the
bipartisan character of the CODEL and told the PM that each
of the Members believed that it was important to visit Greece
precisely because of the attack on the Embassy - which, he
said, they see as an attack on Greece as well as on the U.S.
Senator Smith told the PM that it "was important for us to be
here now," underscoring the long tradition of "shared values
and shared history" that make the two countries such valued
allies.


5. (SBU) Senator Leahy told the PM that, while attending the
World Economic Forum in Davos, many participants told him
that the U.S. image had been negatively impacted by American
foreign policy and asked how the Greek public viewed the
United States. The PM stated that while "Greek people
basically like Americans, a majority of Greek people disagree
with certain U.S. government positions." But with more than
60 years of friendship between our nations, "we could afford
the luxury of disagreement," certain that our good relations
would endure. However, the average Greek also wanted the
U.S. to put more pressure on Turkey -- and wished the U.S.
had not recognized the Republic of Macedonia by that name.
Many ask questions, he explained: "Why Iraq? Why Turkey? Why
Cyprus, Why FYROM?" Nonetheless, despite policy differences,
the PM rejected the idea that Greeks are fiercely
anti-American or that anti-American hysteria prevails in
Greece.


6. (SBU) Senator Lott agreed; people often got angry at
America, but not at Americans. Senator Lott pointed out that
it was sometimes difficult to get Europe to move beyond talk
into action. "We need Europe to take on some of the
challenges we have been dealing with," he told the PM,
particularly Afghanistan. The PM extolled the EU as the true
"success story of the last 15 years, though with many
shortcomings. He advocated a more integrated EU that would
be a better partner to the U.S. On Afghanistan, the PM
pointed out that Greece was now engaged in 5 different
countries, implying there were limits to Greece's abilities
to go beyond its current contributions. Ultimately, however,
Greece was committed to fulfilling its international
obligations.


7. (SBU) Senator Cantwell focused on specific opportunities
for economic cooperation between the U.S. and Greece. The PM
suggested that key areas were electronics, high-end

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technology, energy and tourism. The last two were
particularly ripe for better U.S.-Greece cooperation.
Raising a "matter that is near to our hearts," the Prime
Minister emphasized Greece's strong wish to participate in
the Visa Waiver Program (VWP). "We are the only original
Schengen country not included in the VWP," he said, "and we
hope to see that change,"


8. (SBU) Senator Graham expressed his concern for what he
described as the declining reputation of both the United
Nations and the EU and said that he worried about NATO's
reputation also being diminished in the public eye if
partners do not cooperate to make Afghanistan successful.
Senator Graham conceded that "many mistakes" had been made
about Iraq, including, "perhaps not consulting with our
allies as best we could have." But, he urged Karamanlis to
"see that the NATO commitment is honored."


9. (SBU) Senator Chambliss questioned the likelihood of
success of the Doha round, citing the need for Europe to make
concessions on agricultural subsidies. "We all want to
increase the flow of trade," he offered; "and the only way to
do it is to reduce - or even better, eliminate - these
tariffs to result in free and fair trade for all of us." The
PM said he expected a successful outcome of the trade
negotiations. The problem, he said, is that Italy, Spain,
France and Greece see the need for subsidies. "These
subsidies will change," he agreed, "but they can't do so
overnight or dramatically. We simply must wait for the
passage of time," until farmers are ready for retirement.


10. (SBU) Senator Martinez cited a long history of Greek
Americans thriving in Florida; the new Governor of Florida is
of Cypriot origin. He asked the PM how the United States
could best help Greece. The PM focused on Cyprus; the goal,
he explained, is the reunification of the island with Greeks
and Turks living together peacefully. Referring to the
failed referendum on the Annan Plan, the PM said, "that's
democracy. We never know for sure what people are going to
do (in an election)." The U.S. "can be very constructive" in
resolving the Cyprus question. Karamanlis underscored
improvements in Greek-Turkish relations, citing mutual
cooperation on energy, tourism and banking. "I have a very
good personal relationship with Prime Minister Erdogan," he
added, and Greece is a strong supporter of Turkey's European
aspirations. "A Turkey that respects human rights and reacts
positively to its neighbors," benefits Greece; Karamanlis
expected new initiatives after Turkish elections this year.
He cautioned, however, that Turkey still has not fulfilled
its EU obligations. There was a long way to go before
Greece and Turkey could say that they have normal relations;
"they have made some steps," he conceded, "but more courage
is needed."


11. (SBU) Representative Shays asked for the PM's advice on
Iraq. The PM said that the Greek public was "very reserved,
if not negative (on Iraq) and that is the reality." A
solution was difficult; "even if the U.S. decided to go, it
should be done in a very careful way. Can you imagine
splitting Iraq? Erdogan is clearly worried about the Kurdish
question, which is a question of very great weight. I hope
that you show wisdom in whatever you do." He also admitted
that many in Europe were "quite satisfied" to see the U.S. in
the difficult position it was currently facing, while
indicating that he was concerned. Karamanlis underscored his
belief that the NATO alliance works - albeit with some
difficulties. He also recognized the difficulty U.S.
Senators and Congressmen faced in explaining to average
voters in Seattle or Massachusetts or Washington that their
tax dollars are needed for matters that go well beyond their
ordinary scope of interest or concern. "But," he added, "I
have never made a secret that I feel good about America."

FM BAKOYIANNIS ON BALKANS, VWP


12. (SBU) FM Dora Bakoyiannis hosted a working dinner for the
Codel Janaury 28, including PASOK Foreign Affairs spokesman
(and former FM) Theodoros Pangalos and a bipartisan group of
Greek MPs. Bakoyiannis' opening remarks emphasized Greece's
contribution to stability in the Balkans, its support for the
democratic parties following the Serbian elections, and its
concern that Kosovo not become a "failed state." Citing its
50 percent-plus unemployment rate and eschewing suffocating
deadlines, the FM argued that independence "is not a
panacea." Instead, she maintained that Kosovo needed to
become stable and viable as a way to achieving
"self-sustaining independence." Bakoyiannis expressed

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support for Turkey's EU accession (within the framework of
good-neighborly relations),but pressed for progress on the
Ecumenical Patriarchate and Halki Seminary. She also
welcomed historic Congressional support for reunification of
Cyprus. In his response, Senator Smith praised the long
history of positive U.S. Greece relations, based on our
shared tradition of democracy and the contribution of
thousands of Greek Americans.


13. (SBU) Finally, the delegation met with business leaders
and economic decision makers at a lunch sponsored by the
Greece - U.S. Business Council and the Hellenic American
Heritage Council. Guests included Amcham representatives,
steel industry leaders, shipping company executives,
petroleum company directors, officials from several high-tech
businesses as well as other energy industry representatives
and two PASOK party parliamentarians. The event was an
opportunity for the delegation to hear from leading
businessmen about U.S.-Greece trade and investment . It also
provided insight into the complicated energy market in
Greece, and highlighted Embassy efforts to promote energy
supply diversity.


14. (U) CODEL Smith did not have an opportunity to clear this
cable before departure.
RIES