US embassy cable - 04ROME1423

C O N F I D E N T I A L ROME 001423 
 
SIPDIS 
 
 
USEU FOR AID LERNER 
 
E.O. 12958: DECL: 04/08/2014 
TAGS: PREL, PHUM, IT, CY, EUN 
SUBJECT: ITALY WILL BE GENEROUS TO CYPRUS; NO FIGURE READY 
FOR DONORS' CONFERENCE 
 
REF: STATE 76346 
 
CLASSIFIED BY: POL MINISTER COUNSELOR TOM COUNTRYMAN.  REASON: 1.5 (B)( 
D). 

1.  (U)  MFA'S TURKEY/GREECE/CYPRUS OFFICE DIRECTOR GIOVANNI 
RICCIULI TOLD POLOFF THAT DEPUTY DIRECTOR-GENERAL FOR 
EUROPEAN AFFAIRS FRANCESCO BASCONE WILL HEAD THE ITALIAN 
DELEGATION TO THE APRIL 15 CYPRUS PRE-DONORS'CONFERENCE IN 
BRUSSELS. 
 
2.  (C)  RICCIULI EXPRESSED APPRECIATION FOR THE US PLEDGE 
OUTLINED IN REFTEL, AND PROMISED THAT ITALY WOULD ALSO MAKE A 
GENEROUS CONTRIBUTION TO THE INTERNATIONAL COMMUNITY'S 
EFFORTS TO ENSURE THE SUCCESS OF THE COMPREHENSIVE SETTLEMENT 
PLAN.  ITALY WOULD NOT, HOWEVER, BE READY TO TABLE A PRECISE 
FIGURE FOR ITS DONATION ON APRIL 15.  ITALY WANTS TO USE THE 
PRE-DONORS' CONFERENCE TO DISCUSS SPECIFIC PROPOSALS FOR 
CHANNELING FUNDS BEFORE DECIDING HOW MUCH OF ITS "SCARCE" 
INTERNATIONAL AID BUDGET IT WILL ALLOCATE TO CYPRUS. 
 
3.  (C)  ITALY IS ALSO WORKING HARD, INTERNALLY AND WITH ITS 
EU PARTNERS, ON METHODS TO CONVINCE GREEK CYPRIOTS THAT IT IS 
IN THEIR INTERESTS TO VOTE "YES" ON THE SETTLEMENT PLAN ON 
APRIL 24.  RICCIULI CONCEDED THAT SINCE ACCESSION IS CERTAIN, 
AND ALL SIDES KNOW IT, IT IS DIFFICULT TO USE EU MEMBERSHIP 
AS AN INCENTIVE.  THERE ARE HOWEVER, OTHER TOOLS AT THE EU'S 
DISPOSAL.  DEVELOPMENT FUNDS THAT THE GREEK CYPRIOTS ARE 
EXPECTING COULD BE CONDITIONED ON PROGRESS TOWARDS 
UNIFICATION - NOT JUST A "YES" VOTE, BUT TO REAL POLITICAL 
WILL IN NICOSIA TO ADHERE TO THE TERRITORY TRANSFER SCHEDULE 
AND OTHER STABILIZATION COMPONENTS OF THE SETTLEMENT PLAN. 
ANOTHER OPTION UNDER DISCUSSION AT THE MFA IS A SERIES OF 
PUBLIC STATEMENTS BY THE ITALIAN GOVERNMENT, CAREFULLY 
CRAFTED SO THAT NO INDIVIDUAL GROUP FEELS TARGETED, OUTLINING 
    THE BENEFITS OF A "YES" VOTE AND THE LONG TERM COSTS, 
POLITICAL AND ECONOMIC, OF THE REFERENDUM'S DEFEAT ON EITHER 
SIDE OF THE GREEN LINE.  RICCIULI ASKED THAT WE KEEP THIS 
LAST OPTION CLOSE-HOLD UNTIL APPROVED BY SENIOR MFA OFFICIALS. 
 
VISIT ROME'S CLASSIFIED WEBSITE: 
HTTP://WWW.STATE.SGOV.GOV/P/EUR/ROME/INDEX.CF M 
 
SEMBLER 
 
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 2004ROME01423 - Classification: CONFIDENTIAL