US embassy cable - 03ROME5344

S E C R E T ROME 005344 
 
SIPDIS 
 
 
E.O. 12958: DECL: 11/24/2013 
TAGS: ECIN, ECON, ECPS, IS, IT, IZ, PGOV, PREL, IRAQI FREEDOM 
SUBJECT: IRAQ RECONSTRUCTION: GOI MAY SWEETEN TELECOM 
    ITALIA PLAN AS MADRID DONATION 
 
REF: A. ROME 5010 
     B. ROME 4974 
 
CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT F. KILNER FOR REASONS 
1.5 (B) AND (D) 
 
1. (C) SUMMARY: TELECOM ITALIA OFFICIALS, EAGER FOR ANY 
PROGRESS ON THEIR PROPOSAL TO CONNECT IRAQ TO THE MEDNAUTILUS 
FIBER OPTIC NETWORK (SEE REF A), TOLD ECONOFF ON NOVEMBER 21 
THAT THE GOI IS SO COMMITTED TO THE $15 MILLION PROJECT THAT 
IT MAY INCLUDE THE PROPOSAL IN THE 200 MILLION EURO DONATION 
PACKAGE ANNOUNCED BY FM FRATTINI AT THE OCTOBER MADRID DONORS 
CONFERENCE.  THE ITALIAN MFA IS GATHERING PROJECT PROPOSALS 
TO DETERMINE WHAT THE PACKAGE WILL INCLUDE, AND MEDNAUTILUS' 
CHAIRMAN SAID AN ANNOUNCEMENT OF THE RESULTS IS EXPECTED 
WITHIN THE NEXT TWO TO THREE WEEKS. END SUMMARY. 
 
2. (C) ECONOFF'S CONVERSATION WITH MEDNAUTILUS CHAIRMAN 
FRANCESCO NANOTTI ON NOVEMBER 21 REVEALED THE HIGH STRATEGIC 
VALUE THE GOI PLACES ON THE TELECOM ITALIA PROPOSAL FOR IRAQ. 
 NANOTTI, WHO HAD PHONED EARLIER IN THE WEEK TO INQUIRE IF 
EMBASSY HAD RECEIVED ANY WASHINGTON OR BAGHDAD REACTION TO 
REFTEL, SAID THAT MFA DIRECTOR OF MEDITERRANEAN AND MIDDLE 
EASTERN AFFAIRS RICARDO SESSA WAS "VERY LIKELY" TO INCLUDE 
THE PROPOSAL IN THE LIST OF PROJECTS HE WOULD SUBMIT TO FM 
FRATTINI FOR A FINAL DECISION POSSIBLY AS EARLY AS THIS WEEK. 
 
 
3. (C) NANOTTI SAID THAT THE GOI SEES THE TI PROJECT AS A 
    HUGE STRATEGIC OPPORTUNITY FOR ITALY, PART OF THE BROADER 
ITALIAN EFFORT TO ASSUME A LARGER ROLE IN THE IRAQ 
RECONSTRUCTION EFFORT AND TO RECEIVE GREATER RECOGNITION FOR 
SAME (REF B).  NANOTTI SAID THAT THE GOI IS AWARE OF THE 
SEISMIC EFFECT THE PROPOSED ISRAEL CABLE ROUTING HAS ON THE 
IRAQI PSYCHE, BUT HE HOPES THAT BY COVERING THE $15 MILLION 
COST OF THE PROJECT, THE GOI WILL "MAKE THEM AN OFFER THEY 
CAN'T REFUSE,"  GIVEN THE SIGNIFICANT AND IMMEDIATE IMPACT IT 
WOULD HAVE ON THE IRAQI TELECOM INFRASTRUCTURE. 
 
4. (S) COMMENT: GOI INCLUSION OF THE TI PROPOSAL IN ITS 
MADRID DONATIONS PACKAGE WOULD CONFIRM WHAT WE ARE HEARING 
INDIRECTLY ABOUT HOW CONVINCED THE GOI IS OF THE PROJECT'S 
VALUE.  IT WOULD ALSO REINFORCE HOW INTENT THE ITALIANS ARE 
ON CREATING A LASTING ROLE FOR THEMSELVES IN THE FUTURE OF 
IRAQ (REF B).  IN ESSENCE, ITALY WOULD BE OFFERING TO CONNECT 
IRAQ TO TI'S GLOBAL FIBER OPTIC NETWORK FREE OF CHARGE. 
BECAUSE THE ISRAEL ROUTE REMAINS UNCHANGED, HOWEVER, THE 
PROJECT STILL MAY NOT PASS MUSTER POLITICALLY IN IRAQ.  END 
COMMENT. 
SEMBLER 
 
NNNN 
 2003ROME05344 - Classification: SECRET