VZCZCXRO0779
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHIK #0067/01 2820357
ZNR UUUUU ZZH
P 080357Z OCT 08
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC PRIORITY 0376
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIK/AMCONSUL THESSALONIKI 0418

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 
 
THESSALONI 00000067  001.2 OF 002 
 
 
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 
 
THESSALONI 00000067  002.2 OF 002 
 
 
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