US embassy cable - 03ROME4150

C O N F I D E N T I A L ROME 004150 
 
SIPDIS 
 
 
DEPT FOR EUR/WE, EUR/SE, EUR/ERA 
 
E.O. 12958: DECL: 09/11/2013 
TAGS: PREL, CY, TU, GR, IT, EUN 
SUBJECT: ITALY'S EU PRESIDENCY: CYPRUS DISCUSSIONS WITH SCC 
    WESTON 
 
 
CLASSIFIED BY: POLITICAL MINISTER COUNSELOR TOM COUNTRYMAN. 
REASONS: 1.5 (B) AND (D). 
 
 
1. (C) SUMMARY: ON SEPTEMBER 8, SPECIAL COORDINATOR FOR 
CYPRUS TOM WESTON DISCUSSED UPCOMING ELECTIONS IN NORTHERN 
CYPRUS AND TURKEY'S ROLE IN THE PEACE PROCESS, INCLUDING THE 
UNHELPFUL "CUSTOMS UNION AGREEMENT" SIGNED RECENTLY WITH 
NORTHERN CYPRUS.  IN SEPARATE MEETINGS, PRIME MINISTER 
BERLUSCONI'S SENIOR DIPLOMATIC ADVISOR GIOVANNI CASTELLANETA 
AND THE MFA'S DEPUTY DIRECTOR GENERAL FOR EUROPEAN AFFAIRS 
FRANCESCO BASCONE TOLD WESTON THAT ITALY FULLY SUPPORTS US 
INITIATIVES TO CONVINCE ALL PARTIES THAT THE ANNAN PLAN WAS 
THE ONLY WAY FORWARD IF A SOLUTION TO THE CONFLICT WAS TO BE 
IMPLEMENTED PRIOR TO CYPRUS' MAY 2004 EU ACCESSION.  END 
SUMMARY. 
 
2. (C)  SCC WESTON LAID OUT USG VIEWS ON THE STATE OF PLAY 
AND THE WAY AHEAD.  THERE WERE MANY STICKY SITUATIONS WHICH 
COULD ARISE IF CYPRUS ACCEDES TO THE EU WITHOUT THE ANNAN 
PLAN IN PLACE.  THE OBVIOUS ONE IS A DIVIDED NATION IN THE 
EU.  THERE IS ALSO THE FACT THAT TURKEY'S HOPES TO JOIN THE 
UNION WILL IN PART REST WITH A COUNTRY IT DOES NOT RECOGNIZE. 
 TURKEY'S RECENT "CUSTOMS UNION AGREEMENT" WITH THE NORTH 
DOES NOT HELP, AND WE HOPE THAT ITALY, AS EU PRESIDENT, WOULD 
MAKE THAT CLEAR TO ERDOGAN.  WE HAD ALSO URGED THE EUROPEAN 
COMMISSION IN BRUSSELS TO MAKE ITS POSITION ON THE "CUSTOMS 
UNION" CLEAR TO THE TURKS EARLY AND FIRMLY.  THIS MESSAGE 
WOULD BE NEGATIVE, AND EARLY EXPRESSION OF IT COULD HEAD OFF 
    FURTHER SHENANIGANS IN SUPPORT OF DENKTASH. 
 
3. (C) CASTELLANETA SAID THAT BERLUSCONI HAD EXPRESSED 
CONCERN OVER THE DEAL TO ERDOGAN OVER THE WEEKEND, 
EMPHASIZING THAT IT WAS IN VIOLATION OF TURKISH AGREEMENTS 
WITH THE EU.  CASTELLANETA ALSO HAD A FEW INTERESTING 
OBSERVATIONS BASED ON THE PMS' TALK.  ERDOGAN HAD BEEN CLEAR 
THAT HE COULDN'T BE FLEXIBLE AND MOVE MUCH ON CYPRUS RIGHT 
NOW, BUT THAT AFTER DEALING WITH THE QUESTION OF TURKISH 
TROOP DEPLOYMENT TO IRAQ, HE MIGHT BE ABLE TO APPLY MORE 
PRESSURE ON DENKTASH.  CASTELLANETA SAID THAT THE ITALIANS 
WOULD THUS FOCUS ON ERDOGAN, AND CYPRUS PRESIDENT 
PAPADOPOULOS AT THE UNGA AND INTERGOVERNMENTAL CONFERENCE 
OPENING ON OCTOBER 4, AS THEIR "TARGETS" IN WORKING THE 
CYPRUS ISSUE. 
 
4. (C)  BASCONE SAID THAT ITALY UNDERSTANDS THE IMPORTANCE OF 
DECEMBER'S ELECTIONS IN NORTHERN CYPRUS AND WANTED TO 
COLLABORATE AS NEEDED IN THIS REGARD.  HE AGREED WITH 
WESTON'S ASSESSMENT THAT DENKTASH COULD NOT BE ALLOWED TO 
STEAL THE ELECTIONS, BUT WAS SKEPTICAL THAT THE OPPOSITION 
HAD A GOOD CHANCE FOR VICTORY SINCE SO MANY IN NORTHERN 
CYPRUS DEPENDED ON THE CURRENT REGIME FOR JOBS AND ECONOMIC 
ASSISTANCE.  WHEN WESTON LAID OUT THE USG'S THREE-PRONGED 
APPROACH TO HELPING ENSURE CLEAN ELECTIONS - PRIVATE 
DIPLOMACY WITH ANKARA, PRESS COVERAGE OF THE ELECTORAL 
SITUATION, AND A EUROPEAN-LED ELECTIONS MONITORING EFFORT - 
CASTELLANETA SUGGESTED THAT A FEW ITALIAN MPS COULD TRAVEL TO 
CYPRUS ON A PERSONAL BASIS TO EXAMINE THE PRE-ELECTION 
SITUATION.  HE ALSO TOOK ON BOARD WESTON'S POINT THAT 
HIGHLIGHTING INCIDENTS OF CONCERN IN THE NORTH FOR THE 
    EUROPEAN PRESS WAS IMPORTANT. NOTE: SCC WESTON DID JUST THAT 
DURING A PRODUCTIVE PRESS BRIEFING SUBSEQUENT TO HIS MEETINGS 
WITH CASTELLANETA AND BASCONE. 
 
5. (U) SCC WESTON HAS CLEARED THIS CABLE. 
SEMBLER 
 
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 2003ROME04150 - Classification: CONFIDENTIAL