US embassy cable - 05ATHENS2263

C O N F I D E N T I A L SECTION 01 OF 02 ATHENS 002263 
 
SIPDIS 
 
DEPARTMENT EUR/SE FOR PARENTE, H FOR COOPER 
 
E.O. 12958: DECL: 08/29/2015 
TAGS: OREP, PREL, PGOV, IR, TU, IZ, GR, VISIT 
SUBJECT: CODEL HYDE AFFIRMS STRONG U.S.-GREECE FRIENDSHIP 
WITH FM MOLYVIATIS 
 
REF: ATHENS 2161 
 
Classified By: Amb Charles P. Ries for reasons 1.4 (b) and (d) 
 
1.  (C) SUMMARY: At an August 26 meeting with Foreign 
Minister Molyviatis, CODEL Hyde emphasized the close 
relationship between the U.S. and Greece, and noted that 
despite differences in the run-up to the Iraq war, the 
bilateral relationship was strong and getting stronger. 
Standing in for Chairman Hyde, Rep Bilirakis thanked Greece 
for its contributions in Afghanistan, encouraged continued 
support for the Iraq effort, and broached the Macedonia Name 
issue.  The CODEL pressed the FM for a Greek position on a 
hypothetical Israeli strike against Iran, and sought more 
information on the state of the Greek economy.  END SUMMARY. 
 
 
2. (U) Foreign Minister Molyviatis warmly welcomed the group 
to Greece, noting that the visit was another sign of the 
close, friendly relations between the U.S. and Greece.  He 
remarked that Greece, "a strong friend and staunch ally" of 
the U.S., remembers what the U.S. did during and after WWII, 
noting, "we do not forget our debts."  He remarked that the 
bilateral relationship has improved significantly in the last 
few years, and he agreed completely with the Secretary's 
oft-quoted comment from his last U.S. visit that "the U.S. 
has no better friend in the Balkans than Greece." 
 
FM describes relationship with Turkey 
------------------------------------- 
3.  (SBU) Responding to Congressman Bilirakis' request for a 
Turkey overview, the FM said that the integration of the 
Balkans and Turkey into the Euro-Atlantic institution is an 
area where U.S. and Greek objectives coincide.  This, he 
maintained, is the main reason Greece supports Turkey's 
eventual EU accession, "although they do not always make it 
easy for us."  The FM noted Turkey should increase respect 
for minorities, religious freedom, and religious property, 
and be "more straight" in its military activities in the 
Aegean.  Greece and Turkey have good cooperation, he added, 
on trade, economic issues, banking, and energy. 
 
The War in Iraq 
--------------- 
4.  (U) Rep Markey asked the FM for his views on Iraq and 
what the war means for U.S.-Greece and Greece-EU relations. 
Molyviatis detailed Greek contributions to the international 
effort to rebuild a safe, secure Iraq, and stated that he 
wanted to see full sovereignty transferred to the Iraqis as 
soon as possible.  The FM explained that Greece stood by the 
NATO Istanbul Summit decisions, and while Greece could not 
conduct training in Iraq, it has already offered to train 
doctors and judges outside Iraq and provides funding to the 
NATO training mission. 
 
5.  (U) Ambassador noted that it is incumbent upon the U.S. 
to take advantage of this generosity, noting Greece is 
providing equipment transport and will donate 500 armored 
personnel carriers to Iraq.  Ambassador mentioned that Greek 
military officers assigned to NATO billets still cannot go to 
Iraq even under their commander's orders, and argued that 
relaxing this requirement would make a largely symbolic 
impact that would be widely appreciated.  The FM thanked 
Ambassador for detailing Greece's contributions, and said he 
would again take up the point of the NATO staff officers. 
 
Iran's Nuclear Ambitions 
------------------------ 
6. (C) Recalling Israel's 1981 attack on the purported Iraqi 
WMD site in Osirak, Rep Markey asked the FM how Greece would 
react to a similar "preemptive attack" that the Israelis 
might carry out against Iran.  The FM responded that he 
supported a diplomatic solution, as the consequences of a 
military strike would "not be positive."  In addition to 
proliferation, Molyviatis continued, economic and security 
factors should also be taken into account.  He acknowledged, 
however, that the new Government of Iran "is not looking 
hopeful."  Pushed on what should happen if an impasse is 
reached on Iran's nuclear technology, the FM said it was 
unclear just how close Iran was to developing a nuclear 
weapon.  If it is tomorrow, the FM stated, "maybe we need to 
discuss a military option," since Greece is physically close, 
and "does not want to be threatened by Iran."  If however, a 
weapon is 5-10 years away, the FM deemed there is time to 
seek a diplomatic solution. 
 
The Greek Economy 
----------------- 
7.  (U) Responding to Rep Watt's question on the state of the 
Greek economy, the FM detailed problems with the external 
debt and trade deficit, saying that he did not want to accuse 
the previous government for these, but this government has a 
difficult task at hand.  He explained a GoG proposal to 
simplify Greece's Byzantine tax code by introducing a 25 
percent flat tax over the next two years, and to improve 
Greece's investment climate by eliminating existing 
bureaucratic impediments.  The FM stressed that it is the 
GoG's goal to create a healthy economic environment which 
will attract U.S. investors and investment. 
 
Macedonia Name Issue 
-------------------- 
8.   (SBU) Molyviatis justified Greece's position on the 
Macedonia name issue because the name "creates confusion" in 
the region, since areas of Greece and Bulgaria are also 
called Macedonia and are part of "historic Macedonia." 
Molyviatis explained that of the area of "historic Macedonia" 
roughly 50 percent was now in Greece, 20 percent in Bulgaria, 
and 30 percent in "FYROM."  Although admitting UN Special 
Negotiator Nimitz has been working for a solution, Molyviatis 
said the U.S. recognition of Macedonia by its constitutional 
name was "to say the least, not a helpful move, and one which 
allows FYROM to be more inflexible with the support of the 
US."  The FM hopes a decision on the name can be reached 
before NATO and EU accession arrangements with Macedonia are 
decided, saying "it is obvious that this will create a 
problem" because Greece will never consent to accession of 
Macedonia to these bodies under its constitutional name. 
 
Broader Middle East Initiative 
------------------------------ 
9.  (U) The FM closed the meeting by telling the CODEL that 
Greece supported efforts to spread freedom and democracy in 
the broader Middle East, to include hosting an international 
conference in early 2006 on the subject.  This, he 
acknowledged, is both a noble and practical objective, since 
"democracies do not go to war against each other."  Greece 
hopes this will contribute to lessening the problems of 
terrorism. 
 
10. (U) COMMENT: CODEL Hyde's meeting with the Foreign 
Minister provided an excellent opportunity to review U.S. 
foreign policy priorities as summer comes to an end.  We will 
use Greece's desire to cement its good relations with the 
U.S. to expand Greece's contributions in key areas raised by 
the CODEL, especially Iraq and Turkey.  END COMMENT. 
 
11.  (U) CODEL Hyde has cleared this message. 
RIES