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### Viewing cable 08ATHENS21, PM KARAMANLIS TOUGH ON MACEDONIA NAME, PRAGMATIC

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08ATHENS21 | 2008-01-05 12:58 | 2011-05-27 08:00 | CONFIDENTIAL | Embassy Athens
Appears in these articles: www.tanea.gr

`

    VZCZCXYZ0005
    OO RUEHWEB

    DE RUEHTH #0021/01 0051258
    ZNY CCCCC ZZH (CCY AD473669 MSI3766-695)
    O 051258Z JAN 08  ZDS
    FM AMEMBASSY ATHENS
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0978
    INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
    RUEHZG/NATO EU COLLECTIVE PRIORITY
    RUEHSQ/AMEMBASSY SKOPJE PRIORITY 1130
    RUEHPS/USOFFICE PRISTINA PRIORITY 0344

` `

    C O N F I D E N T I A L ATHENS 000021

    SIPDIS

    SIPDIS

    C O R R E C T E D COPY TEXT

    E.O. 12958: DECL: 01/05/2018
    TAGS: PREL PGOV GR
    SUBJECT: PM KARAMANLIS TOUGH ON MACEDONIA NAME, PRAGMATIC
    ON TURKEY, RUSSIAN ENERGY

    Classified By: AMBASSADOR DANIEL SPECKHARD.  REASONS 1.4 (B) AND (D).

    ¶1. (C) SUMMARY: In his first meeting with the Ambassador,
    Prime Minister Kostas Karamanlis took a hard line on te
    Macedonia name issue, saying he had "done hs part," while
    Skopje had become increasingly intransigent.  A mutually
    acceptable solution -- which could include a composite name
    of "New, Upper, North, whatever Macedonia" for use in
    international fora and another name (i.e., the constitutional
    name) for internal use -- had to be found now before the NATO
    Bucharest summit or Greece would not approve FYROM's entry
    into Euro-Atlantic institutions.  On Kosovo, Karamanlis was
    less categorical, noting that Greece could understand U.S.
    concerns about delayed independence leading to instability.
    Nevertheless, Karamanlis said that the period after the
    Serbian elections could offer one more hance for
    negotiations to lead to a mutually cceptable solution.  On
    energy, Karamanlis arued that the Russians were going to
    build the South Stream gas pipeline, if not through Greece
    then somewhere else, so it was in Greece's interest that it
    go through Greece.  On Turkey, he said relations were better
    now than in the past and that he had a good relationship with
    PM Erdogan.  Karamanlis confirmed his visit to Turkey in
    January, and while he was "not optimistic" about a
    breakthrough, such a visit could have a long-term positive
    impact on bilateral relations.  END SUMMARY.

    PRIORITIES
    ----------

    ¶2. (C) The cordial January 4 meeting began with the
    Ambassador and Karamanlis providing overviews of their
    respective priorities.  The Ambassador said he was focusing
    his attention on four areas: 1) working with Greece to
    increase stability in the Balkans (including supporting
    efforts to find a solution to the Macedonia name issue and
    address the situation in Kosovo); 2) promoting regional
    stability in the Eastern Mediterranean (including supporting
    improvements in relations between Greece and Turkey and
    working toward a solution of the Cyprus problem); 3) working
    with Greece to combat domestic and international terrorist
    threats; and 4) promoting economic development (including
    promoting Greek and European energy security, bilateral trade
    and investment, and economic development in the wider Balkan
    region).  Karamanlis agreed this was a good set of priorities
    and spoke of the very close relations and similarity of
    outlook between the U.S. and Greece.  Greece's policy in the
    region had three basic goals: 1) promotion of the EU as the
    primary stabilizing factor in Europe; 2) changing the Balkan
    tradition of conflict to one of cooperation; and 3) seeking
    good relations with Turkey.  Karamanlis admitted Greece was
    not yet ready to be a leader in the EU -- its economy needed
    greater vitality -- but Greece was now at the top of the
    middle of the EU countries, as opposed to being at the bottom
    in the 1980s.  In terms of domestic priorities for 2008,
    Karamanlis said he would focus on reforms of the pension
    system (this was "our historical duty and had to be
    accomplished regardless of the political costs"),
    privatization, including leasing of major ports at Piraeus
    and Patras and the selling of Olympic airways, and education
    reform, including creating a legal framework for private
    universities in Greece.

    MACEDONIA NAME ISSUE
    --------------------

    ¶3. (C) Karamanlis took a hard line on the Macedonia name
    issue.  He said Greece wanted the entire Balkan region to be
    incorporated into Euro-Atlantic institutions and to
    assimilate Western values, which would improve stability and
    further economic development.  But, Karamanlis said, "let me
    be very frank, I think I have done my part."  According to
    the PM, Greek public opinion earlier had been very opposed to
    any use of the name "Macedonia," but following UN negotiator
    Nimetz's forward-leaning proposal two years ago, Greece under
    Karamanlis's leadership took the "bold step" of accepting
    Nimetz's proposal as a basis of negotiation, which came at
    tremendous political cost to Karamanlis and the New Democracy
    party (support in Karamanlis's home region of Greek Macedonia
    slipped from more than 50 percent to 40 percent).  Greece was
    open to a composite name -- "New, North, Upper, whatever
    Macedonia."  But a compromise was essential, Karamanlis
    argued, and so far FYROM remained intransigent, which
    Karamanlis attributed, in part, to the U.S. decision to
    recognize Macedonia by its constitutional name.

    ¶4. (C) Karamanlis said he had told FYROM leaders that any
    Greek government going further would be thrown out of office.
    Thus, it was essential to find a mutually acceptable
    solution now.  In response to the Ambassador's query as to
    whether it would be possible to work to show real progress
    and commitment in the negotiations before the NATO Summit,
    while leaving the ratification period for finalizing an
    agreement, Karamanlis insisted that this would not be
    acceptable and an agreement needed to be reached before the
    Summit.  Without a solution, he said, "we cannot approve
    FYROM's entry into Euro-Atlantic institutions."  As for
    Nimetz's proposal for a two-name solution (Republic of
    Macedonia for internal use and a composite name for the UN,
    NATO, and other international usage), Karamanlis said Greece
    could live with that, but the composite name had to be used
    in all international fora, and Greece expected the U.S. to
    use the composite name as well.

    KOSOVO
    ------

    ¶5. (C) Karamanlis was less categorical on Kosovo.  He said
    Greece understood U.S. arguments about a delay in
    independence for Kosovo would foster further instability, but
    Greece wanted to find a solution that would avoid extremes
    and be more "swallowable."  Greece understood there would be
    no UDI before Serbian elections, and after the elections,
    negotiations should be given another try.  In his meetings
    with his Serbian counterpart last year, he felt that there
    was an understanding of the inevitability of independence but
    also heard a plea for "autonomy" as a step on the road to
    making independence politically palatable.  "Autonomy can
    always evolve into independence," the Serbian PM told him.
    The Ambassador highlighted the U.S. position of support for
    the Ahtisaari plan and urged the PM to use his and Greece's
    influence to encourage Serbia to recognize that Kosovo was
    lost and to act now in their own self interest in pursuing
    European integration for Serbia and Kosovo as the best way to
    protect Serbian interests in the region.  The PM said Greece
    would work within the EU to find a consensus, which was
    essential in promoting stability during this tense period.

    ¶6. (C) On Russia's position on Kosovo, Karamanlis noted that
    Putin during Karamanlis's December visit to Moscow was
    surprisingly less "aggressive" on the issue than previously.
    Three years ago, Putin had done an hour-long monologue on
    Ukraine, and Karamanlis expected something similar on Kosovo
    in December.  While Putin's arguments on Kosovo remained the
    same, it was clear this time that Kosovo was "not his highest
    priority."

    RUSSIA AND ENERGY
    -----------------

    ¶7. (C) Speaking in broader terms about Russia, Karamanlis
    opined it was a nation with a great, if tragic, history and
    had felt "humiliated" in the 1990s.  Now Russia was getting
    richer and wanted to be part of the "leading team."  Putin
    obviously was "no teacher of democracy," but on basic issues,
    such as global stability and battling terrorism, Russia could
    be counted as a partner.  There was "no doubt" that Greece's
    values would not change, but Russia was an important country
    and Greece needed good relations with it.  For one, many more
    Russian tourists were now coming to Greece.  Then, of course,
    there was the energy question.

    ¶8. (C) Karamanlis said he Burgas-Alexandoupolis oil pipeline
    had been in the works for 20 years, so that was nothing new.
    As for the Russian South Stream gas pipeline, Karamanlis said
    the Russians were going to build it, if not through Greece,
    then somewhere else.  Thus, "it's better for us if it's
    through Greece."  On the Ambassador's concern that South
    Stream could overshadow the Turkey-Greece-Italy gas
    interconnector (TGI) and confuse potential investors,
    Karamanlis tried to downplay progress on South Stream.  He
    and the Bulgarian and Italian presidents had only said they
    were "interested" in South Stream, but it would be "hard and
    time-consuming" to get the project off the ground.  As for
    TGI, he told a Moscow story:  Putin asked him what kind of
    gas Greece thought it could get through TGI.  Karamanlis
    replied "Azeri," to which Putin retorted "they don't have
    any."  The PM, however, was pleased with the cooperation with
    Azerbaijan and confident the project would proceed.

    TURKEY
    ------

    ¶9. (C) Relations with Turkey were better than previously,
    according to Karamanlis, particularly in terms of his
    personal relationship with Turkish PM Erdogan.  But he could
    not say there had been any progress on substantive issues.
    Karamanlis's January trip to Turkey, which the PM confirmed,
    was a "very sensitive exercise," but one that might possibly
    lead to a "breakthrough."  Karamanlis was "not optimistic,"
    but the visit could open a door.  Elements in the Turkish
    military appeared opposed, as was some of the Greek press.
    There might not be any immediate progress on substantive
    issues, but the visit could help strengthen relations in the
    longer term.

    ¶10. (C)  This was also why Greece supported Turkey's EU
    accession.  Greek public opinion rose and fell on the issue
    depending on events in the Aegean, but from Karamanlis's
    point of view the rational for EU membership was very simple:
    a European Turkey would make a much better neighbor.  The
    Cyprus issue was not a Greece-Turkey bilateral issue, but it
    did overshadow and complicate the EU question.  Karamanlis
    said that perhaps after the Cypriot presidential elections in
    February there would be a window of opportunity to move
    forward on the Cyprus issue.  Whatever happened, Greece would
    be "helpful."

    COUNTERTERRORISM
    ----------------

    ¶11. (C) The Ambassador emphasized the importance of
    cooperating on counterterrorism, particularly given Greece's
    geo-strategic location near the Middle East.  He also
    underscored his determination to bring to justice the
    perpetrators of the January 2007 RPG attack against the
    Embassy.  The PM assured the Ambassador of continued
    cooperation on counterterrorism.

    ADVICE FOR AMERICAN AMBASSADORS
    -------------------------------

    ¶12. (C) Karamanlis concluded the meeting with some friendly
    pointers on negotiating the Athens diplomatic scene.  It was
    very important for the U.S. Ambassador to be discrete.
    Meddling with politicians or the press was unhelpful.  Too
    close relations with Greek politicos, journalists, and
    prominent businessmen were also dangerous.  Such contacts
    could lead to one being dragged down into "Balkans gossip."

    BIO NOTE
    --------

    ¶13. (C) The meeting took place in Karamanlis's office at the
    Maximou Palace.  Journalists with cameras were at the gate
    but had no opportunity to approach the Ambassador.  During
    the meeting, Karamanlis was very comfortable and gregarious,
    often expressing his respect and affection for the United
    States.  There were virtually no pauses in the conversation,
    and Karamanlis at times became animated, particularly when
    discussing the Macedonia name issue and Kosovo.  He sat on
    the edge of his seat and took out his Greek worry beads.  He
    spent over an hour with the Ambassador, more than double the
    allotted time.
    SPECKHARD

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