VZCZCXRO1107
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHIK #0023/01 1060552
ZNR UUUUU ZZH
P R 160552Z APR 09
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC PRIORITY 0441
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIK/AMCONSUL THESSALONIKI 0484

UNCLAS SECTION 01 OF 02 THESSALONIKI 000023 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EUR/SE, EUR/OHI 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PHUM GR
SUBJECT: THESSALONIKI:  SUBWAY CONSTRUCTION CONTINUES NEAR OLD JEWISH 
CEMETERY; PROGRESS ON RESTITUTION NEGOTIATIONS 
 
REF: A.  07 THESSALONIKI 060; B. 08 THESSALONIKI 87 
 
THESSALONI 00000023  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY: During an April 1 visit to Thessaloniki, 
Ambassador J. Christian Kennedy, Special Envoy for the Office of 
Holocaust Issues, visited a subway construction site at the edge 
of the old Jewish cemetery that has attracted the attention of 
American and European Rabbis.  The head of metro construction 
told Ambassador Kennedy that current and planned excavation was 
outside of the cemetery boundaries and that workers had 
uncovered no graves or human remains at the site.  While the 
exact border of the cemetery (destroyed during the Nazi 
occupation) is unclear, Post estimates that some of the 
construction is likely inside the border, based on current 
landmarks and a GoG 1998 map (Refs).  The local Jewish community 
reaffirmed that it was not trying to stop or monitor closely the 
excavation, focusing instead on restitution negotiations, which 
appear to be moving forward, albeit slowly.  Kennedy suggested 
the community urge the GoG to reach a settlement prior to the 
Prague Conference on "Holocaust Era Assets" in June.  The 
Director of Technical Services at Aristotle University of 
Thessaloniki informed Kennedy that there has been no progress 
towards erecting a plaque commemorating the old Jewish cemetery, 
on which the University is built.  END SUMMARY. 
 
        UNIVERSITY SUBWAY EXCAVATION APPEARS TO BE INSIDE THE 
CEMETERY 
 
        ¶2. (SBU) On April 1, Ambassador Kennedy visited the 
University metro excavation site located near the old Jewish 
cemetery (Refs), accompanied by the President of the Jewish 
Community of Thessaloniki, David Saltiel, the managing director 
of the company overseeing metro construction, Evaggelos 
Galousis, and ConGen staff.  When Kennedy expressed concern that 
some of the excavation and surface construction appeared to be 
inside or at least very close to the border of the old Jewish 
cemetery, Galousis replied that the metro work was outside of 
the cemetery and that workers had not found any graves or human 
remains at the site.  The local supervisor of GoG Archaeological 
Service monitoring the construction corroborated this claim in a 
separate conversation with Post.  Kennedy urged that metro 
authorities do a survey of the site to determine whether metro 
construction was taking place or being planned within the old 
cemetery, including three ventilation shafts of about 35 square 
meters each, which have appeared on the plans only recently. 
Post's best estimates, using Google Earth and a 1998 map of the 
cemetery commissioned by the Greek government, place some of the 
digging and construction, including for the ventilation shafts, 
just inside the (no longer visible)old cemetery boundary. 
 
  RESTITUTION NEGOTIATIONS MOVING FORWARD, SLOWLY 
 
        ¶3. (SBU) Members of the board of the local Jewish 
community told Kennedy they were not trying to stop the 
excavation nor following the metro construction closely.  They 
were not sure if some of the construction was taking place 
inside the old cemetery boundaries.  Rabbi Sheetrit expressed 
some frustration about occasional bureaucratic delays in gaining 
access to the site, but was otherwise satisfied with cooperation 
between local authorities and the community.  Jewish community 
president Saltiel noted the board was focused on efforts to 
reach a settlement with the GoG on compensation for cemetery 
land confiscated by Greece during the Nazi occupation. 
According to Saltiel, the president of the committee appointed 
by the Ministry of Finance to negotiate a settlement with the 
community informed him the GoG was preparing to offer a 
settlement (in the form of real estate) of about 17 million 
euros.  Saltiel believes this is a fair amount, if somewhat 
lower than the market value of the confiscated land, and said 
the community would likely accept the deal if offered in 
writing.  Kennedy pointed out that the June 26-30 Prague 
Conference on "Holocaust Era Assets," would be an excellent 
occasion for the GoG and community to announce a settlement on 
this longstanding restitution issue.  [Note:  Kennedy had made 
the same point to MFA and Finance Ministry officials in Athens 
the previous day (septel).  End note] Saltiel said he would urge 
his GoG interlocutors to speed up efforts to reach a settlement 
with this target in mind.  The board also expressed concern over 
the recent decision by a Greek appeals court to overturn the 
conviction of an extreme right author, Plevris, for inciting 
racial hatred with his book, which asserted, inter alia, that 
the Holocaust did not happen.  Saltiel said he intended to write 
a letter to Greek MPs expressing concern about the disturbing 
implications of the court decision. 
 
        NO PROGRESS ON UNIVERSITY MEMORIAL TO OLD CEMETERY 
 
        ¶4.  (SBU) Nikos Manousaridis, Director of Technical 
Services at Aristotle University, which was built on top of the 
cemetery after World War II, told Kennedy there had been no 
progress made on the University's commitment to erect a plaque 
 
THESSALONI 00000023  002.2 OF 002 
 
 
on campus commemorating the cemetery.  Manousaridis noted that 
the University had been in a state of turmoil for the past 
several months, including the December riots and an ongoing 
student protest that had prevented the head of the University, 
Rector Anastasios Manthos, from meeting with Kennedy. 
Manousaridis added he was not confident that University and 
Ministry of Education authorities would take the necessary steps 
to erect a plaque any time soon. 
 
        ¶5.  (SBU)COMMENT:  While it is encouraging that the GoG is 
considering a land-swap settlement with the Jewish community for 
property confiscated over 60 years ago, the talks have broken 
down many times over the past four years and there are still 
many hurdles to clear before the deal is done.  The GoG will 
have to identify appropriate land to offer the community and 
probably obtain parliamentary approval, which may be difficult 
in light of the GoG's bare one seat majority and recent scandals 
involving land swaps between the GoG and Orthodox Church 
officials.  Post will continue to monitor the negotiations as 
well as metro construction developments. 
YEE