SCENESETTER FOR APRIL 1-2 CODEL HOYER VISIT TO

UNCLAS ATHENS 000644 SIPDIS SENSITIVE SIPDIS H PLEASE PASS TO CODEL HOYER FROM AMBASSADOR RIES E.O. 12958: N/A TAGS: PREL PGOV PHUM ECON CVIS GR SUBJECT: SCENESETTER FOR APRIL 1-2 CODEL HOYER VISIT TO ATHENS ¶1. (SBU) SUMMARY: I warmly welcome CODEL Hoyer's April 1-2 visit to Athens. We are delighted you will have an opportunity during this stopover to glimpse post-Olympics Athens and learn about our strategic partnership with Greece. Foreign Minister Bakoyiannis -- who has just returned from a visit to Washington -- plans to host a dinner for you on Sunday evening. Greek guests include her closest advisors as well as parliamentarians. You will be able to underline the importance we place on issues such as counter-terrorism cooperation and support for NATO's mission in Afghanistan. FM Bakoyiannis herself is an energetic charmer who understands and appreciates Congress' role. She will use her brief time with you principally to make the case for Greek participation in the U.S. Visa Waiver Program. END SUMMARY. THE KARAMANLIS GOVERNMENT: CENTER-RIGHT PRAGMATISTS ¶2. (SBU) Karamanlis' center-right New Democracy government took office in 2004 stressing its reform credentials. Karamanlis' economic policy of fiscal austerity and growth has brought Greece's deficit down and strengthened GDP growth. His government has likewise taken important steps in support of U.S. policy priorities on issues such as intellectual property rights and energy. However, Karamanlis has found other reform measures a challenge. The political force of his 2004 anti-corruption message has been undermined by scandals involving his political appointees. Karamanlis' proposed changes to Greece's education system proved so controversial that only minimal reforms were passed. With general elections widely anticipated this fall (although not required until spring 2008),the Karamanlis government is in campaign mode. FM BAKOYANNIS: POLITICIAN TO THE CORE . . . ¶3. (SBU) Your dinner host, Foreign Minister Theodora (Dora) Bakoyiannis, comes from one of Greece's most prominent political families. She is the eldest daughter of former Prime Minister Konstandinos Mitsotakis and was one of his closest advisers during his 1990-1993 term. Her first husband, Pavlos Bakoyiannis, was murdered by Greece's domestic terrorist group "November 17" in 1989. As a result, she has a strong interest in counter-terrorism issues. Although most Greeks believe that Bakoyiannis aspires to be Prime Minister herself one day, during her year in office she has acted as a loyal ally of Prime Minister Karamanlis. Bakoyiannis is tall, engaging, charismatic and an effective speaker in both Greek and English. She is well-versed in global issues, but tends to concentrate on Greece's neighborhood -- the Balkans, Greek-Turkish relations, Cyprus, and the Middle East. . . . AND PUSHING (HARD) ON VWP ¶4. (SBU) Bakoyiannis understands and appreciates the role the U.S. Congress plays in Washington decision-making. That is why, in her discussions with you, Bakoyiannis will focus on Greece's aspiration to be included in the Visa Waiver Program. She will point out that Greece is the only one of the original EU 15 not participating. The Attorney General approved Greece for inclusion in the VWP in May 1999, subject to Greece's completing reforms of its passport security and accountability procedures. However, Greece failed to meet the deadline for action, and no new countries have been admitted since 9/11. Greece last year introduced a new biometric passport that meets all ICAO standards, and invalidated the previously issued passports. And unlike Poland, the Czech Republic, and other Central European countries, Greece fully meets the "economic/immigration" criteria, with low visa refusal and overstay rates. State and DHS have taken the first steps to evaluate Greece's candidacy for the VWP, but there is no timetable for decision-making. ¶5. (SBU) Progress on VWP is now especially important to Bakoyannis because she has recently been heavily criticized in Greece's virulently U.S.-skeptic press for being too "pro-American." The trigger was a Greek MFA comment criticizing a Russian general's recent threats against Poland and the Czech Republic for their cooperation with us on missile defense. But the press also recognizes that on many key issues -- counter-terrorism measures, contributions to NATO operations in Afghanistan, last summer's crisis in Lebanon -- we have worked well with the Greek government. JANUARY 12 RPG ATTACK ON THE EMBASSY ¶6. (SBU) One example is the Greek government's response when, on January 12, a rocket-propelled grenade was fired at the Embassy. There was only a minimum amount of damage and no casualties. Based on the time of the incident (5:55 a.m.),we believe the attack was designed to make a political statement, most likely emerging from the antiwar anarchist community (the government received a 5 page manifesto). The response by Greek authorities was immediate; FM Bakoyiannis came to the Embassy immediately and made a public statement, stood in front of the Chancery with me, and sharply condemned the attack. Since January, the Department of State and FBI have worked closely with the Greek government to identify the attackers; cooperation has been excellent. Both the government of Greece and the U.S. recently offered cash awards for information on the perpetrators. HOW YOUR VISIT CAN HELP US ¶7. (SBU) Although your stopover is brief, FM Bakoyiannis' dinner provides an opportunity to emphasize the importance the U.S. Congress attaches to several key issues. (The guests will include Bakoyiannis' chief advisors at the Ministry (Ambassador Chalastanis, Ambassador Rocanas, Secretary General for Economic Affairs Skylakakis),three ND SIPDIS parliamentarians, and the MFA's Director for Sudan affairs.) These include: -- COUNTER-TERRORISM COOPERATION/RPG ATTACK ON THE EMBASSY: The U.S. appreciates the efforts Greece is making to find those responsible for the RPG attack on the U.S. Embassy in January. Your visit is a visible demonstration of our determination to continue our bilateral counter-terrorism efforts. The attack also shows that terrorism is an omnipresent threat, one which we must work with our partners to address. -- AFGHANISTAN: Greeece sustained its participation in the International Security Assistance Force (ISAF) in 2006 by continuing to provide a unit from the Greek Corp of engineers (120 troops) and a NATO medical unit (50 troops) for operations in Kabul. In late January, Greece pledged an additional 500,000 Euro to support a Hungarian-led PRT. However, the GOG should be encouraged to remove its caveats in order to allow its troops to operate outside Kabul as necessary. -- BALKANS (KOSOVO AND MACEDONIA): Greece's economic and commercial investment in the Balkans is substantial, which makes stability in the region exceptionally important to the GOG. Its religious tie to Serbia makes Greece particularly sensitive to Serbian concerns regarding a Kosovo settlement. Yet relations with the Albanian world are also increasingly important economically and politically to Greece. We have underscored the importance of a decision now as a means of promoting stability, not fostering instability. Delay only risks instability. Greece is also concerned by the lack of a solution to its dispute with Macedonia over the country's name (Greece's northern province is likewise referred to as "Macedonia"),which could affect the NATO accession process. We continue to support using established UN mediation to resolve this bilateral issue; the U.S. has already made its decision by recognizing the "Republic of Macedonia." -- GREECE/TURKEY/CYPRUS: As is the case in many EU member states, public opinion in Greece has not yet embraced Turkey in the EU. The government remains steadfast in support of the Turkey/EU process, understanding that over the longer term a Turkey in the EU is in Greece's strategic interest. The GOG has been increasingly concerned, over the last month, by Turkish military aircraft activity in the Aegean. We should encourage the GOG to continue its policy of supporting Turkey's EU entry, and praise their low-key approach to resolving Aegean issues. RIES