NORTHERN NOTES

UNCLAS SECTION 01 OF 02 THESSALONIKI 000067

SIPDIS

E.O. 12958: N/A
TAGS: ECON EINV PGOV PHUM PREL SOCI SMIG GR
SUBJECT: NORTHERN NOTES

REF: A) ATHENS 1291, B) THESSALONIKI 63, C) THESSALONIKI 65, D) THESSALONIKI 64, E) ATHENS 1362

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Following is a summary of last month's major developments in
Northern Greece:

TRADING OF LAND BETWEEN GOG AND MONASTERY CAUSES UPROAR


1. A scandal over trading of large plots of land between the
GoG and the Vatopedi Monastery of Mt. Athos (a semi-autonomous
peninsula in N. Greece, administered by Orthodox monks)
dominated northern Greek news (ref A). Media and post contacts
have characterized the scandal, in which Vatopedi and government
officials allegedly profited illegally from the land trades, as
one of the biggest in the country's modern history. Vatopedi
Monastery - second in seniority on Mt. Athos and often visited
by international celebrities - negotiated lucrative land swaps
with the Greek government, based on the monastery's Byzantine
and Ottoman-era ownership deeds, which critics claim to be of
questionable validity at best. Moreover, the properties traded
included archaeological sites and land claimed by multiple
parties. The Attorney General is investigating the matter, with
wide public speculation the deals will be reversed. The Mt.
Athos Holy Synod (governing assembly of monasteries) issued a
statement on 09/25 apologizing for the "unpleasant situation",
indirectly calling on the Greek justice system to resolve the
matter. The scandal constituted yet another blow for the
government and further tarnished the image of the Greek Orthodox
Church.

THESSALONIKI INTERNATIONAL TRADE FAIR LOSING LUSTER


2. Organizers of the annual Thessaloniki International Trade
Fair claimed an increase in visitors (254,847 versus 251,000 in
2007),but media and businesses lamented the ongoing decline in
the Fair's ability to attract businesses and promote trade.
Media repeatedly cited the absence of the traditional U.S.
pavilion at this year's Fair as evidence of the decline in the
quality of the event as well as in U.S.-Greek relations. The
Hellenic-American Chamber of Commerce announced that its
decision not to host the U.S. pavilion was "purely due to bad
financial circumstances" and denied rumors of any political
factors. Embassy and Consulate General statements also
emphasized that the decision was entirely up to businesses, not
the USG. Prime Minister Karamanlis's annual speech at the Fair
(ref B) was criticized by the media for sticking to unpopular
reforms and blaming the country's economic problems on the
international economic crisis. Opposition PASOK party leader
George Papandreou's speech (ref C) promised a more "social
state" and helped boost PASOK's popularity. Again this year,
security was tight at the Fair and violence was minimal, with
around 2,000 police deployed, twelve demonstrators arrested (ref
D).

LABOR PROTESTS: SIEMENS, CUSTOMS, PORT, OLYMPIC AIR


3. The employees of the Thessaloniki Siemens factory are
demanding the GoG's intervention with the parent company to
prevent the plant's announced shutdown on September 30. Siemens
is rumored to be trying to sell the land to real estate
developers but a former Siemens manager believes there is still
a "slim possibility" a foreign investor will be found to re-open
the plant. On another front, workers of Olympic Airlines have
protested at the local airport the government's decision to
proceed with the privatization of the company. Meanwhile, the
Association of Exporters of Northern Greece has complained
formally to the Ministry of Finance about the adverse effects
the rolling strikes at the Customs Offices have on its members.
Port workers continue their work slow-down in protest of the
privatization of the port's cargo handling operation.

VISIT OF UN HUMAN RIGHTS REPRESENTATIVE IN NORTHERN GREECE SEEN
AS PROMOTING "AMERICAN" AGENDA


4. Media described the visit of UN Independent Expert on
Minority Issues Gay McDougal (an American citizen) to Thrace and
the northwestern Greek town of Florina as an "American
initiative". The announced purpose of the visit (ref E),which
was entirely independent of the USG, was to observe minority
issues in Greece and assess the level of co-operation between
the minorities and the majority. Some officials and media
expressed concern about McDougal's choice of minority
interlocutors, though other observers accepted her schedule as
balanced. She described the Roma community's circumstances as
"desperate," while she also met with members of the Pomak and
the Turkish-speaking communities. McDougal also visited Florina
and spoke to Slav-speaking activists who identify themselves as
Macedonian. She told journalists she would submit her report to
the UN Council on Human Rights in March.

DIVISIONS WITHIN MUSLIM MINORITY OVER EDUCATION


5. The parents of 24 Turkish-speaking Muslim children refused
to send their children to a local primary school for Muslim
minority students in Xanthi, apparently because a number of Roma

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and Pomak (Slavic speaking Muslims) children were enrolled
there. Leaders of the Turkish-speaking community criticized
school authorities for refusing to enroll their children at
another minority school. The authorities responded that the
children had to attend the school to which they were assigned
based on geography. Parents of the Pomak and Roma students
condemned Turkish minority leaders in conversation with post for
encouraging racist attitudes. On a positive note, media
reported a rise of Muslim children attending Greek universities
from 67 in 1996, to 226 in 2008 in the town of Komotini alone.

CONSULATE OUTREACH TO THE MUSLIM COMMUNITY


6. On September 17, ConGen Thessaloniki hosted an Iftar
dinner at the CG's residence. The event was attended by
representatives of Thessaloniki's diplomatic corps, clerics,
journalists, representatives of the local authorities and
Muslims of all three communities in Thrace (Roma, Pomak and
Turkophones.) All mainstream media reported favorably about the
dinner. On September 24 and 25, the Consulate organized a film
festival on "Multi-ethnicity in America: Conflict and
Co-existence" in the Muslim-majority town of Komotini, aiming to
promote dialogue about multi-culturalism and respect for
diversity. Local media gave the event wide and positive
coverage.

ILLEGAL IMMIGRATION INCREASES RAPIDLY


7. During September, media reported 22 arrests of smugglers
and 221 arrests of illegal immigrants, mostly from Iraq, Iran,
India and Pakistan, in the area of Thrace. A police contact
told post of a "big rise" in numbers, an assessment confirmed by
the country-wide police data for the first eight months of 2008
that was published in the press. According to those statistics,
police arrested 1,304 smugglers - up by 43.92% - and confiscated
645 vehicles - up by 45.92%.
YEE