US embassy cable - 03ROME5093

S E C R E T  ROME 005093 
 
SIPDIS 
 
 
DEPT FOR EUR/ERA, EUR/RPM, EUR/WE 
 
E.O. 12958: DECL: 11/10/2013 
TAGS: PREL, IT, EUN, ESDP, NATO 
SUBJECT: FM FRATTINI INSISTS IGC SECURITY ARCHITECTURES ARE 
NO THREAT TO TRANSATLANTIC RELATIONS; PREDICTS CONSTITUTION 
WILL BE FINISHED UNDER ITALIAN PRESIDENCY 
 
REF: STATE 310984 
 
Classified By: DCM EMIL SKODON.  REASON: 1.5 (B)(D). 
 
1. (S) SUMMARY: Italian FM Frattini reiterated to Ambassador 
Sembler that "structured cooperation" would be inclusive 
(open to all 25 EU members) and implemented in coordination 
with NATO.  He noted that an "encouraging statement" on 
European security initiatives from Secretary Powell would 
help him to counteract the view put forward by certain of 
Italy's European partners that the US is opposed to Europe 
strengthening itself under any conditions.  Despite the 
considerable amount of work remaining on the constitution, 
Frattini is confident the details can be ironed out and 
agreed to by the end of the Italian Presidency.  Italy is 
prepared to increase its financial contributions for 
elections in Afghanistan.  Frattini confirmed that Italy "has 
stopped, and will keep stopped" deliveries of Fast Boats to 
Iran.  The Ambassador reiterated to Frattini our concerns 
over the negative impact restrictions on the import of 
products employing biotechnology have on trade and overall 
bilateral relations.  End Summary 
 
2. (S) On November 10, FM Franco Frattini, accompanied by 
Chief of Cabinet Cesare Ragaglini and Political Director 
Giancarlo Aragona, met at our request with Ambassador Sembler 
to review the state of play in the 
Constitution/Intergovernmental Conference process, especially 
as it relates to "structured cooperation" in European defense 
architectures.  The Ambassador was accompanied by DCM Emil 
Skodon and Poloff (notetaker).  We also raised a number of 
other US-EU and bilateral issues, including Afghanistan, 
Galileo, Fast Boat sales to Iran and biotechnology. 
 
3. (C)  Frattini insisted that the current debate in the IGC 
on European security architectures was a means to forming 
closer cooperation with NATO.  This is the view PM Berlusconi 
put forward at the October 16 European Council meeting and 
Frattini himself has emphasized with his fellow foreign 
ministers.  Starting with Berlin-plus as a base, "structured 
cooperation" would be inclusive and implemented in full 
coordination with NATO.  The article in the draft 
constitution dealing with the mutual defense clause (40.7) 
will also be revised to address US concerns that it not 
undermine NATO treaty article 5 commitments. 
 
4. (C)  Frattini said that the November 18 US-EU Troika in 
Brussels would be a good opportunity to clear up 
misconceptions held by the US on structured cooperation.  He 
noted that an "encouraging statement" on European security 
initiatives from Secretary Powell would help him to 
counteract the view put forward by certain of Italy's 
European partners that the US has no confidence in Europe and 
is simply opposed to Europe strengthening itself under any 
conditions.  Otherwise, continued Frattini, the Italian 
Presidency could find itself increasingly isolated in 
defending US equities in the IGC. 
 
5.  (C) DCM noted that in order for Secretary Powell to 
deliver a positive statement, we would need to have a 
clearer, more detailed understanding of just where the IGC 
would take ESDP.  Aragona promised to get this information to 
Washington in time to feed into preparations for the 
Secretary's trip to Brussels, possibly starting with a phone 
 
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call to EUR PDAS Ries later on November 10.  Aragona 
explained that structured cooperation was simply a method 
through which the EU could establish criteria for countries 
to join in defense planning and operations.  These criteria 
would be agreed at 25, and the structure would be open to all 
25 member states, as long as they qualified and wanted to 
join. 
 
6. (C) Frattini told the Ambassador that the constitution was 
the most important challenge currently facing the EU.  The 
organization is difficult to manage at 15; at 25 it will be 
impossible using current structures.  For Frattini the main 
direction of the IGC should be towards creating a Europe that 
is able to play a role on the international stage, forging 
closer ties with the US, and implementing "economic and 
political cohesion" within Europe. 
 
7. (C)  This is a difficult moment in IGC negotiations, 
admitted Frattini.  The IGC must seek compromises to balance 
the positions of various camps vying for the best possible 
deal from the constitution; for instance, balancing the 
desires of smaller countries seeking one commissioner per 
Member State with the need to revise Nice treaty structures 
which give Spain near equal voting power to that of Italy, 
though it has only about one-half the population.  One 
possibility under study is to revise numbers in the European 
Parliament to more accurately reflect population figures. 
Frattini is confident the details can be ironed out and 
agreed to by the end of the Italian Presidency.  The 
alternative would be an impossible situation in which the 
Irish Presidency had only a few weeks to close the process 
prior to enlargement.  Frattini said he would table a 
compromise proposal in about 3 weeks (presumably just after 
the Naples FM IGC conclave November 28-29).  Then, said 
Frattini, the Member States will have to decide. 
 
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Afghanistan 
----------- 
 
8. (C) Frattini told the Ambassador that he had spoken to 
Secretary Powell a few days ago and underlined that Italy was 
 
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prepared to increase its financial contributions for 
elections, pledging 5 million of the total 25 million Euro 
promise from the EU.  He said that Italy might be prepared to 
allocate an additional 5 million Euros depending on the 
response from its EU partners.  Germany and the "northern 
countries" support increased contributions, Frattini 
continued, but France was being difficult, citing the 
deteriorating security situation and increased drug 
trafficking as reasons to withhold aid. 
 
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Galileo 
------- 
 
9. (C) In response to the Ambassador's comments on this 
issue, Aragona disagreed with our view that a strong 
political push was needed now to close the issue.  He said 
more work was required to develop a strong technical base, as 
a prerequisite for dialogue at a political level.  Regarding 
US concerns that the December EU Transport Council might take 
decisions without fully considering foreign policy and 
security ramifications, Frattini promised to speak to Italy's 
Transport Minister (Lunardi) about US views and suggest that 
the technical process not get too far out ahead of the 
political. 
 
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Iran Fast Boats 
--------------- 
 
10. (S) Frattini confirmed that through an "informal 
arrangement" with the manufacturer, Italy "has stopped, and 
will keep stopped" deliveries of Fast Boats to Iran. 
 
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Biotech 
------- 
 
11. (C) The Ambassador closed the meeting by touching on 
agricultural biotechnology, the one truly contentious issue 
in US-Italian bilateral relations.  He highlighted US 
concerns over a rumored draft decree to severely restrict, if 
not ban, biotech cultivation from Italian regions in which 
"traditional products" are grown (see septel).  Since every 
region in Italy has products which fall into that category, 
the decree would effectively exclude future sales of US 
biotech seeds to Italy.  Biotech restrictions were a serious 
issue which the Ambassador noted he has raised with PM 
Berlusconi.  Sales of US produced seeds to Italy have fallen 
from USD 70 million to USD 9 million over the past four 
years.  The US Congress, Speaker Hastert in particular, has 
taken note of this situation and the damage it is doing to 
agricultural exports from the US to Italy.  The Ambassador 
also noted that it would not help the bilateral trade 
 
imbalance should the decree become law.  Frattini said that 
he was aware of US biotech concerns, as is PM Berlusconi, and 
that Agriculture Minister Alemanno favored taking a harder 
line on biotech than EU regulations required.  Frattini's 
personal view is that he is completely in favor of 
biotechnology products, especially in light of what they can 
possibly do to improve the lot of poor nations. 
SEMBLER 
 
 
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	2003ROME05093 - Classification: SECRET