US embassy cable - 03ROME5717

S E C R E T ROME 005717 
 
SIPDIS 
 
 
    NOFORN 
 
STATE FOR EUR/WE, EUR/PRA, NP/ECNP, INR/SPM, NEA/NGA, 
PM/RSAT 
 
E.O. 12958: DECL: 12/24/2013 
TAGS: PARM, ETTC, PREL, EIND, IR, IT, EXPORT CONTROLS 
SUBJECT: SALE OF FAST BOATS TO IRAN 
 
REF: A. ROME 5680 
 
     B. ROME 5552 
     C. STATE 338477 
     D. ROME 5202 AND PREVIOUS 
 
CLASSIFIED BY: ACTING ECONOMIC MINISTER KATHLEEN REDDY FOR REASONS 1.5 
(A) (B) AND 1.6X6. 
 
1.  (S) FURTHER TO REF A, GABRIELE CHECCHIA, DIPLOMATIC 
ADVISOR TO PRODUCTIVE ACTIVITIES (INDUSTRY) MINISTER ANTONIO 
MARZANO, CALLED A/ECMIN TO REPORT THAT MINISTER MARZANO HAD 
SPOKEN WITH FOREIGN MINISTER FRATTINI ON THE MARGINS OF THE 
DECEMBER 23 COUNCIL OF MINISTERS' MEETING REGARDING THE 
EXPORT FROM ITALY OF FB DESIGN FAST BOATS TO IRAN. 
 
2.  (S) CHECCHIA REPORTED WHAT EMBASSY ALREADY KNEW FROM 
OTHER CHANNELS, THAT TWO BOATS HAD DEPARTED ITALY "A FEW 
WEEKS AGO."  HE SAID THE GOI WAS TRYING TO HALT THE VENICE 
DEPARTURE OF A THIRD BOAT, BUT THAT ONLY FM FRATININI COULD 
DO THIS.  A/ECMIN THEN CALLED GIANCARLO CURCIO, CHIEF OF 
STAFF TO MFA DIRECTOR GENERAL FOR ECONOMIC AFFAIRS MAGLIANO, 
TO FOLLOW UP.  CURCIO SAID THE FM IN FACT DID NOT CURRENTLY 
    HAVE AUTHORITY TO STOP FURTHER SHIPMENTS, AND THAT HE WOULD 
CALL CHECCHIA TO CLARIFY THAT POINT. 
 
3.  (S) CHECCHIA LATER CALLED A/ECMIN TO SAY THAT THE FM WILL 
TRANSMIT A LETTER TO THE FINANCE MINISTRY "IN THE NEXT DAYS" 
TO SEE IF THE GOI CAN BUY THE BOATS THAT HAVE NOT YET LEFT 
ITALY.  (NOTE: WE UNDERSTAND IRAN HAD ORDERED FOUR FB DESIGN 
FAST BOATS.)  CHECCHIA CONCEDED, HOWEVER, THAT THIS MAY NOT 
STOP THE VENICE SHIPMENT OF THE THIRD BOAT.  HE REITERATED 
THAT THE GOI COULD NOT SEIZE THE BOATS BECAUSE THE FIRM MIGHT 
TAKE LEGAL ACTION AGAINST THE GOVERNMENT SINCE IT HAD NO 
LEGAL AUTHORITY TO SEIZE THEM. 
 
4.  (S) CHECCHIA ALSO SAID PRODUCTIVE ACTIVITIES MINISTER 
MARZANO WILL CALL A MEETING BY YEAR-END TO DISCUSS THE LEGAL 
OPTIONS AVAILABLE TO THE GOI.  CHECCHIA DID NOT THINK, 
HOWEVER, THAT ALL MINISTRIES WOULD SUPPORT A DECREE LAW, 
BECAUSE FORBIDDING EXPORT OF THESE BOATS HAS ECONOMIC 
IMPLICATIONS FOR THE FIRM(S) INVOLVED AND FOR PERSONS 
EMPLOYED BY THOSE FIRMS.  CHECCHIA SAID HE WOULD LIKE TO 
DISCUSS WITH US HOW TO ADDRESS THE ECONOMIC ASPECTS OF 
DENYING EXPORT RIGHTS TO THESE FIRMS. 
 
5.  (S) COMMENT. WE INTERPRET CHECCHIA'S LAST POINT THAT THE 
GOI WANTED TO DISCUSS WITH US "THE ECONOMIC ASPECTS OF 
DENYING EXPORT RIGHTS TO THESE FIRMS" AS A SUGGESTION THAT 
THE USG BUY THE BOATS OURSELVES TO PREVENT THEM GOING TO 
IRAN.  THIS SUGGESTION AND THE GOI'S INTER-AGENCY CONFUSION 
REFLECT THE DISARRAY IN WHICH THE GOI FINDS ITSELF AS IT 
SEARCHES FOR A MEANS TO BLOCK SHIPMENTS WHICH ARE NOT BARRED 
BY ANY ITALIAN LAW.  WE ARE NOT CONFIDENT THAT THE GOI WILL 
    BE ABLE TO DRAFT, APPROVE, AND IMPLEMENT A NEW DECREE LAW IN 
TIME TO STOP THE SHIPMENT OF THE THIRD FB BOAT. 
NEVERTHELESS, WE BELIEVE WE SHOULD CONTINUE PUSHING THE GOI 
IN THAT DIRECTION, IF ONLY TO SET A PRECEDENT AND CREATE A 
LEGAL MECHANISM WHICH CAN BE EMPLOYED IN THE FUTURE.  END 
COMMENT. 
 
SEMBLER 
 
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 2003ROME05717 - Classification: SECRET