VZCZCXRO7451
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHIK #0081/01 3151237
ZNR UUUUU ZZH
P R 101237Z NOV 08
FM AMCONSUL THESSALONIKI
TO RUEHC/SECSTATE WASHDC PRIORITY 0396
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHIK/AMCONSUL THESSALONIKI 0438 UNCLAS SECTION 01 OF 02 THESSALONIKI 000081 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EUR/SE 
 
E.O. 12958: N/A 
TAGS:          
SUBJECT: HOLY MOUNTAIN" MONASTERY REAL ESTATE SCANDAL TARNISHES IMAGE 
OF CHURCH AND STATE 
 
REF: A.  ATHENS 1476, B. ATHENS 1302. C. ATHENS 1291, D. THESSALONIKI 0080 
 
THESSALONI 00000081  001.2 OF 002 
 
 
 1.  (SBU) SUMMARY: The scandal involving land exchanges between 
Vatopedi Monastery and the Greek government (reftels) has led to 
the resignation of two high-profile ministers and shaken public 
confidence in the Greek Orthodox Church.  The GoG and Vatopedi 
have tried to limit damage by proposing measures to reverse the 
transactions.  On November 7, a northern Greek court invalidated 
the most controversial land swap, involving Lake Vistonida in 
Thrace, on the grounds that the lake and environs are protected 
public property.  Vatopedi claims it has Byzantine era titles 
proving ownership of the lake property and is threatening to 
challenge the court's decision in the European Court of Justice. 
 The Church has sought to portray the scandal as isolated to 
Vatopedi but is concerned the fallout could affect other 
monasteries and patriarchates with similar ancient land 
holdings.  Public criticism of the affair could claim other 
political victims and is likely to drag on for the foreseeable 
future. END SUMMARY. 
 
DAMAGE CONTROL: MONASTERY, GOG TRY TO REVERSE LAND DEALS 
 
 2.  (SBU) The GoG and Vatopedi Monastery of Mt. Athos are 
struggling to contain a major scandal (refs A-C) involving 
lucrative land exchanges that, according to some media, may have 
benefited GoG officials.  According to media and post's contacts 
from Mt. Athos (the semi-autonomous northern Greek peninsula 
administered by Orthodox monasteries, including Vatopedi), in 
2005-2007 Vatopedi traded some of its Byzantine-era land 
holdings for public land, mostly in northern Greece.  The most 
controversial property traded by Vatopedi was some 7000 acres in 
the area of Lake Vistonida in Thrace.  As reported in ref C, 
senior Prosecutor of the Supreme Court Giorgos Sanidas contends 
that in that trade, the GoG gave Vatopedi public land worth over 
Euro 100 million more than the Lake Vistonida property.  Media 
speculate that Vatopedi planned to sell the public land and give 
some of the profits to GoG officials. 
 
 3.  (SBU) Under heavy criticism from local residents and the 
media, Vatopedi offered on October 17 to reverse the land deal 
(return GoG land or proceeds in exchange for Lake Vistonida and 
other property claimed by Vatopedi).  The GoG also took steps to 
cancel the transaction, including by revoking all ministerial 
decisions acknowledging ownership of Lake Vistonida by the 
monastery.  In accordance with a Supreme Court prosecutor's 
September 15 order, the GoG took steps to freeze Vatopedi's land 
holdings and proceeds from land sales.  In addition, two 
high-profile GoG ministers with alleged links to the scandal 
resigned (refs A and B), and Parliament began a fact-finding 
investigation into the affair on November 3. 
 
GREEK COURT INVALIDATES DEAL, VATOPEDI MAY APPEAL TO HIGHER 
AUTHORITY 
 
 4.  (SBU) On November 7, a Rhodopi (northeastern Greece) first 
instance court ruled that Lake Vistonida and most of the 7000 
acres of surrounding land claimed by Vatopedi is 
non-transferable public property (e.g. national park land). 
According to the court, Vatopedi possesses rights to only 430 
acres of the 7,000 it claims.  The decision in effect ignores 
Vatopedi's Byzantine era land titles to the lake property and 
invalidates the land exchange with the GoG.  The court reached 
the same decision in 2003 but withheld it due to a last minute 
out of court settlement between the GoG and Vatopedi.  The 
Supreme Court ruled on October 24 that the 2003 decision should 
have been issued.  Vatopedi abbot Efrem has threatened to defend 
the monastery's ownership claims in the European Court of 
Justice if necessary.  Vatopedi bases its claims to numerous 
properties in addition to Lake Vistonida on Byzantine and 
Ottoman era decrees.  Media and opposition politicians have 
questioned the validity of these ancient documents, but the 
Rhodopi court and Supreme Court have yet to comment explicitly 
on the issue. 
 
PATRIARCH:  INVALIDATION OF BYZANTINE LAND TITLES WOULD BE 
"CATASTROPHIC" 
 
 5.  (SBU) The Greek Orthodox Church has reacted to the scandal 
with a mixture of embarrassment and defensiveness.  The council 
of Mt. Athos monasteries (the Holy Community) issued an 
announcement apologizing to the public for the affair, but 
refrained from direct criticism of Vatopedi or its abbot, Efrem. 
 The Ecumenical Patriarch Bartholomew has tried to stay above 
the fray, noting publicly that he is "following developments 
closely."  On the other hand, he has strongly defended the 
validity of ancient property titles such as those held by 
Vatopedi.  In a November 5 speech, commenting on Byzantine and 
Ottoman era land titles, the Patriarch warned that "the 
slightest doubt about their validity could bring about 
catastrophic consequences for the whole nation and beyond."  Mt. 
 
THESSALONI 00000081  002.2 OF 002 
 
 
Athos contacts point out that Vatopedi's ancient ownership deeds 
are similar to the ones held by the Patriarchate in Istanbul and 
other patriarchates.  Invalidation of such deeds could have a 
major impact on the Church's claims in Greece and beyond. 
 
SCANDAL REVIVES DEBATE ON SEPARATION OF CHURCH AND STATE 
 
 6.  (SBU) The scandal has re-invigorated public debate about the 
Orthodox Church's close relations with the Greek state, as well 
as its tax exempt status and other privileges.  Leftist 
opposition party SYRIZA has publicly protested the Churches 
extensive land holdings, including in Mt. Athos, and proposed 
legislation abolishing the Church's tax exempt status. 
Parliament rejected the legislation on November 5.  While Church 
leaders such as Thessaloniki Metropolitan Anthimos have fiercely 
rejected such proposals, other Church leaders have indicated 
willingness to discuss reforms in order to prevent a 
re-occurrence of the Vatopedi scandal.  Commenting to 
journalists on the scandal, the Metropolitan of Alexandroupolis 
(northeastern Greece) called for the "consideration of 
separation of Church and State, if it will facilitate their 
relations".  The Metropolitan of Xanthi, Thrace, told post that 
the interests of local residents affected by the land swaps 
should take precedence over Vatopedi real estate claims.  In a 
November 7 interview he stated, "monasteries should not do any 
kind of business, except with God." 
 
 7.  (SBU) Many Greek citizens were stunned by the reports of 
corruption at one of Mt. Athos's oldest and most well-respected 
monasteries.  Mt. Athos's monastic community has existed for 
more than 1,000 years, and for many faithful the "Holy Mountain" 
is the Orthodox equivalent of Mecca.   Mt. Athos's twenty 
monasteries house rare Byzantine treasures and attract large 
numbers of Greek and foreign visitors.  England's Prince Charles 
is a regular visitor to Vatopedi. 
 
 8.  (SBU) COMMENT: The extent of the scandal is still unknown. 
It is likely to remain an embarrassment to the government for 
some time and could claim more political victims as Vatopedi, 
the GoG, and the courts attempt to unwind the numerous illicit 
land deals and the parliamentary investigation gets underway. 
The scandal has tarnished the Church's image and strengthened 
the hand of those advocating greater separation of church and 
state, but it is unlikely to pose a threat to the Church's solid 
base of public support or its constitutionally protected 
position in Greek society. 
YEE