US embassy cable - 04MADRID1651

UNCLAS MADRID 001651 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, SP, Trade Issues, American - Spanish Relations 
SUBJECT: NEW SPANISH MINISTER OF INDUSTRY WANTS STRONG 
BILATERAL COMMERCIAL RELATIONS 
 
 
1.  SUMMARY: In his May 5 courtesy call on new Minister of 
Industry, Tourism and Commerce Jose Montilla, the Ambassador 
raised USG concerns on protection of intellectual property 
rights (IPR) in Spain.  The Ambassador also asked Montilla if 
rumors are true that the new administration is considering a 
policy of cultural exception.  Montilla said the government 
is currently considering "incentives" to help the domestic 
film industry.  Montilla expressed regret that the Spanish 
Governing Council of Chambers of Commerce chose to cancel the 
CPA conference on sub-contracting in Iraq, but noted that GOS 
will maintain its participation in the Iraq Core Group and 
will comply with its Iraq Donors' Conference pledges towards 
Iraq Reconstruction. END SUMMARY 
 
2. In a cordial May 5 courtesy call on Minister of Industry, 
Tourism and Commerce Jose Montilla, the Ambassador and DCM 
congratulated Montilla on his new position and told him we 
hoped to work closely with the new government.  The 
Ambassador noted we had done much to inspire more research 
and development in Spain and offered to continue this 
cooperation.  Montilla said the new administration was intent 
on maintaining excellent bilateral relations with the United 
States.  He also anticipated continued strong commercial 
ties.   He noted the removal of the troops from Iraq was a 
campaign promise the current government felt an obligation to 
honor, and should not be interpreted in a way that might harm 
our bilateral relationship. 
 
3. The Ambassador raised USG concerns on IPR protection in 
Spain.  He briefed Montilla on the outcome of this year's 
Special 301 decision (Spain was not listed), but noted that 
the industry is troubled with the continued high rate of 
piracy.  He urged the new minister to take this problem 
seriously and engage aggressively to combat the problem. 
Montilla said the new administration was committed to 
fighting IP crime, noting that piracy hurts not just U.S. 
interests but Spanish as well. 
 
4. The Ambassador also mentioned press reports indicating 
that the new administration planned to limit American and 
other foreign films in Spain in an effort to bolster their 
own film industry.  Montilla did not deny the rumor.  He said 
Spanish government is looking at potential incentives to help 
the domestic film industry.  He noted Spain is not alone in 
this as the French Government is contemplating similar 
measures.  He anticipates it will take some time for a policy 
on this to be finalized, but whatever measures are taken will 
be taken in an open and transparent manner and within the 
framework of the EU. 
 
5. Montilla expressed regret that the Madrid stop on the CPA 
Iraq sub-contracting road show had been canceled.  He noted 
he had given the Spanish Governing Council of Chambers of 
Commerce (the Consejo) assurances that he supported the 
conference and had hoped they would sponsor it, however they 
were concerned as he was not yet officially in place as 
minister.  Once the new government announced its intention to 
pull Spanish troops from Iraq, the Consejo's anxiety 
increased and its leadership decided to withdraw its 
sponsorship.  Montilla said the decision was made because of 
uncertainties created by the transition and should not be 
interpreted as Spain pulling back from their commitments to 
Iraq reconstruction.  He added that as soon as he took 
office, he asked the Consejo to see if it could be 
rescheduled but was informed the dates were fixed and it was 
too short a time frame to successfully host it. 
 
6.  Montilla underscored that Spain would continue its 
participation as a member of the Iraq Core Group, and would 
comply with the funding committed by the GOS during the Iraq 
Donor's Conference. 
 
7.  Montilla could respond only in general terms to questions 
regarding Spain's views on Doha Round negotiations. He said 
Spain would continue to favor trade liberalization in the 
multilateral arena consistent with the EU position. 
 
8.  The Ambassador outlined the many efforts the Embassy has 
launched to promote bilateral business cooperation.  The 
minister acknowledged the importance of these efforts and 
pledged to work together to expand trade ties. 
MANZANARES