US embassy cable - 03ROME4744

ALENIA SPAZIO SPACE COOPERATION WITH CHINA

Identifier: 03ROME4744
Wikileaks: View 03ROME4744 at Wikileaks.org
Origin: Embassy Rome
Created: 2003-10-16 17:20:00
Classification: SECRET
Tags: CH ETTC IT PARM PREL TSPA EXPORT CONTROLS
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

S E C R E T  ROME 004744 
 
SIPDIS 
 
 
E.O. 12958: DECL: 10/14/2013 
TAGS: CH, ETTC, IT, PARM, PREL, TSPA, EXPORT CONTROLS 
SUBJECT: ALENIA SPAZIO SPACE COOPERATION WITH CHINA 
 
REF: A. SECSTATE 283728 
     B. ROME 2977 
 
Classified By: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5 
 (B) AND (D) 
 
1. (U) This message contains an action request in para 7. 
 
2. (S) Ecmin delivered reftel information October 10 to MFA 
Director General for Economic and Financial Cooperation 
Giandomenico Magliano, who was accompanied by Diego Ungaro, 
Director of the MFA's Office of Defense Industry and 
Sensitive Technology Transfers.  Ecmin initiated the 
discussion by noting the United States' continued concerns 
regarding technology transfer to China, particularly in the 
space sector, and our preference that Italy not enhance 
China's space capabilities.  He also made clear that, with 
regard to Alenia's potential projects in China, the U.S. 
would not approve the export of any U.S. Munitions List 
controlled technology to Alenia, nor allow U.S. firms to 
assist Alenia. 
 
3. (S) In this context, Ecmin continued, the U.S. 
nevertheless appreciated the exchange of information during 
bilateral dual-use export control talks in July, and welcomed 
the opportunity to glean insights from the GOI on China's 
space program.  The U.S. would therefore not object to 
Alenia's participation in the five projects in question (data 
relay satellite; SinoSat II; manned space program; 
interactive telecommunications satellite; and navigation 
systems), subject to certain conditions or assurances in each 
case.  Ecmin said the the Embassy did not intend to share 
this information with Alenia directly;  we would leave that 
to the GOI.  But we looked forward to status reports on 
Alenia's operations in China, and also hoped that a technical 
working group could be set up soon. 
 
4. (S) After thanking Ecmin for the positive news, Magliano 
said that the GOI would proceed effectively but cautiously, 
conveying the appropriate information to Alenia.  The U.S. 
request for certain assurances in each case seemed reasonable 
at first glance, he offered.  If it appeared that any of our 
conditions would present a fundamental obstacle to developing 
a project, Magliano said he would contact us to seek a 
mutually-agreeable technical solution.  He also agreed to our 
request that a technical working group be established to 
monitor China's progress in space, which he said was in line 
with our July export control discussions.  Magliano asked 
whether Washington had specific views on whether the proposed 
"technical working group to keep the U.S. apprised of Chinese 
progress in space" (Ref A, para 3) should be part of the 
planned export control talks led by DAS Maggi (Ref B), or 
should be a separate body. 
 
5. (S) While acknowledging U.S. concerns regarding China's 
participating in the Galileo project, Magliano stressed that 
any decisions on Galileo would be made at an EU level. 
Ungaro added, however, that Italy had no intention of 
expanding Chinese capabilities through cooperation on the 
Galileo project.  (Ecmin used this turn in the discussion to 
warn that failure by the EU to resolve the M-code overlay 
issue by the December EU Transport Council meeting, when 
technical specifications are be determined, could result in a 
significant transatlantic dispute just as Italy is concluding 
its EU presidency.) 
 
6. (S) A discussion then ensued regarding whether future 
bilateral talks on export controls -- either generally or 
more specifically focused on China's space program -- should 
involve company experts.  On this issue, Magliano and Ungaro 
appeared someone divided.  Ungaro suggested that 
government-to-government talks could help separate the issue 
of export control security needs from commercial interests. 
Magliano, in contrast, thought that discussions could only be 
sufficiently detailed if they included company officials in 
some fashion, as was the case in July discussions in Rome 
(Ref B).  Ecmin replied that, from his perspective, the July 
meetings had proved to be a very successful format, allowing 
for government-only exchanges but also incorporating 
indispensible Alenia expertise at the appropriate points. 
 
7. (S)  Action requested:  Embassy greatly appreciates 
Washington agencies' thorough and timely reply on Alenia's 
proposed China projects, allowing us to fulfill commitments 
made during the July export control discussions in Rome.  We 
would welcome any further Washington views on the format for 
future discussions: specifically, should future technical 
 
talks on Chinese progress in space be folded into the more 
general export control discussions planned?  And should 
participation of company experts be included in such 
discussion, either on China or more generally? 
SEMBLER 
 
 
NNNN 
 2003ROME04744 - Classification: SECRET 


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