US embassy cable - 04MADRID2247

UNCLAS MADRID 002247 
 
SIPDIS 
 
SENSITIVE 
 
EB/TRA/OTP FOR MEGAN WALKLET 
EB/TRA/AN FOR JOE YOUNG 
EUR/ERA FOR RICHARD BOLY 
DOT FOR PAUL GRETCH, MARY STREET, CHERYL PERMENTER 
 
E.O. 12958: N/A 
TAGS: EAIR, SP, American - Spanish Relations, Trade Issues 
SUBJECT: SPAIN WANTS TO NEGOTIATE OPEN SKIES BILATERAL 
 
REF: MADRID 1905 
 
1.  (SBU) Summary:  Following the failure of the European 
Union Council of Ministers to endorse the proposed US-EU Open 
Skies agreement, Eugenia Llorens, Deputy Director General of 
Air Transportation, Ministry of Public Works (protect) told 
us privately of Spain's interest in negotiating a bilateral 
Open Skies agreement.  Their current challenge is developing 
the correct strategy to obtain approval in  Brussels for the 
bilateral.  She also said that the bilateral negotiations 
should be brief and fairly straightforward, and that late 
September could be an ideal time for the task...should 
Brussels approve.  End Summary. 
 
2.  (SBU) On June 14, we spoke with Eugenia Llorens, Deputy 
Director General of Air Transportation, Ministry of Public 
Works about Open Skies issues.  She told us that she had 
briefed the Minister of Public Works Magdalena Alvarez prior 
to last week,s Ministers luncheon.  Llorens said that 
Alvarez supported the proposed US-EU agreement within the 
Ministers luncheon, but that Spain was alone in its support. 
 
3.  (SBU) This week, Llorens will begin developing a proposal 
on how to proceed with bilateral negotiations. Llorens 
explained that due to a new EC regulation approved in April, 
the GOS must now inform the EC that it plans to negotiate 
bilaterally, and the EC will then inform the GOS whether it 
may proceed.  Llorens will be seeking the advice of some 
attorneys, and said that she probably will seek advice from 
Brussels on how to best proceed with the required 
notification.  A lot of the work will go on "behind the 
curtains," Llorens said. 
 
4.  (SBU) Llorens explained that some in Brussels believe 
that any bilateral negotiations reduce incentives for the US 
to negotiate with the EC.  Llorens agreed that entering into 
a fairly typical bilateral agreement should not reduce the 
EC's negotiating power, noting that Spain and its air 
business is not the impetus behind US-EU negotiations.  Yet 
she was uncertain how Brussels would ultimately respond to 
Spain's notification. 
 
5.  (SBU) Llorens does not know when Spain will submit the 
notice.  However, she believes that late September would be 
an ideal time to negotiate and reach agreement, since August 
should be avoided for Spanish vacation reasons, and she would 
like to complete the bilateral before the US presidential 
elections in November. 
 
6.  (SBU) She expects the negotiations to be very brief.  She 
said that the US negotiators know what Spain wants, and the 
GOS knows what the US wants.  She noted that there might be 
some discussion about 7th freedom rights, and possibly one 
other issue.  She considers any upcoming negotiation to be 
fairly straightforward. 
 
7.  (SBU) Comment:  Llorens mentioned several times that she 
was only expressing her thoughts and plans.  However, her 
comments track with past GOS comments that should US-EU 
negotiations fail, Spain would seek a bilateral.  While she 
believes that Minister Alvarez supports her position, she 
cannot be certain that Alvarez will initiate bilateral 
negotiations.  End Comment. 
MANZANARES