US embassy cable - 05ATHENS616

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