US embassy cable - 04ROME2853

C O N F I D E N T I A L  ROME 002853 
 
SIPDIS 
 
 
E.O. 12958: DECL: 07/22/2014 
TAGS: PREL, IR, IT, UNGA, RU 
SUBJECT: RUSSIA/ITALY: LAVROV REASSURES FRATTINI ON UNSC 
ENLARGEMENT; ASKS FOR REFOCUS ON QUINT IN BALKANS 
 
REF: A) ROME SIPRNET 7/15 B) ROME 2745 
 
Classified By: POL MINISTER-COUNSELOR TOM COUNTRYMAN. 
REASON: 1.4 (B)(D) 
 
1. (C) SUMMARY: During their July 15 meeting in Rome, FM 
Frattini and Russian FM Lavrov  reviewed preparations for the 
annual Russia-Italy Summit, which will take place in Moscow 
"sometime in November."  Frattini underlined Russia's need to 
"adopt western standards" concerning business regulations, 
especially as they apply to foreign investors. Lavrov 
reiterated Moscow's view that an international conference on 
Iraq was critical to the reconstruction and reconciliation 
process. Frattini offered to use Italian "good offices" in 
the region to explore whether there was sufficient interest 
for such a conference among border countries. Lavrov is 
concerned that not having simultaneous legislative and 
presidential elections will deprive the Kabul government of 
"legitimacy."  He urged Frattini to "refocus" on the Contact 
Group mechanism in Kosovo.  Lavrov indicated that there would 
be "good news" in the near future regarding Russian approval 
of Kyoto.  Frattini was relieved to hear that it would take 
the strong support of an "overwhelming majority" of the UN 
General Assembly, not just two-thirds, for Russia to accede 
to more permanent Security Council seats. END SUMMARY. 
 
November Summit/Commercial Interests 
------------------------------------ 
 
2. (C) MFA Russia/East Europe Office Director Marco Marsilli 
briefed poloff on the some of the non-public highlights of 
Russian FM Lavrov's Rome meeting with FM Frattini. (Ref a. 
summarizes press statements and joint declarations issued 
during the visit.) Lavrov also met with PM Berlusconi, 
President Ciampi and Chamber President Casini during his July 
14-15 visit but, according to Marsilli, these were mainly 
non-substantive courtesy calls made in recognition of 
Lavrov's first official visit to Italy as FM.  Marsilli said 
that both sides were pleased with the results and overall 
tone of this first bilateral meeting between the ministers. 
They reviewed preparations for the annual Russia-Italy 
Summit, which will take place in Moscow "sometime in 
November" and will focus on furthering the strong 
economic/commercial links between the countries.  Marsilli 
noted that Italy was Russia's second-largest trading partner 
after Germany. 
 
3. (C) Frattini told Lavrov that he had met recently with 
Italian entrepreneurs and investors with interests in Russia, 
who had described specific concerns and experiences. 
Frattini underlined that while most Italian business people 
were pleased with their interactions with their Russian 
counterparts in industry and manufacturing, there was far 
less satisfaction when it came to government bureaucracy and 
regulations,  Frattini underlined Russia's need to "adopt 
western standards."  The Italian business people were 
unanimous in expressing frustration with confusing 
regulations, indecipherable chains of command, inconsistent 
and often contradictory central-government and local 
regulations, and outright corruption and demands for 
kickbacks, particularly in the customs service and contract 
award process.  Lavrov took this information on board, and 
assured Frattini that Moscow was aware of the problems 
encountered by foreign investors and would continue to 
address their concerns.  Marsilli noted that Lavrov seemed 
"intrigued" by an idea put forward by Frattini for an 
ombudsman's office designed to respond to the particular 
issues of foreign businesses, and promised to follow up when 
he returned to Moscow. 
 
Iraq/Afghanistan 
---------------- 
 
4. (C)  Lavrov reiterated Moscow's view that an international 
conference on Iraq, which would include border countries, was 
critical to the reconstruction and reconciliation process. 
Lavrov averred that if neighboring countries were involved in 
a diplomatic initiative to assist the international coalition 
in Iraq, they were far less likely to support or foment 
terrorist or destabilizing activities.  Frattini agreed in 
principle, and said that it was worth exploring specifics of 
this Russian idea.  Marsilli said that Frattini offered to 
use Italian "good offices" in the region to explore whether 
there was sufficient interest for such a conference among 
border countries.  Frattini will follow up with Lavrov. 
 
5. (C) Lavrov told Frattini that he was satisfied with 
preparations thus far for Afghan presidential elections in 
September, but is concerned that not having simultaneous 
legislative elections would deprive the Kabul government of 
"legitimacy."  Marsilli said that Frattini registered this 
concern without comment. 
 
Kosovo 
------ 
 
6. (C)  Lavrov told Frattini that he was troubled by the 
recent tendency towards using a "NATO/US/EU arrangement" to 
address issues in Kosovo at the expense of the Contact Group, 
and urged Frattini to "refocus" on the CG.  Lavrov lamented 
the lack of progress in addressing the concerns of the Serb 
minority in Kosovo, and the slow pace of "demilitarization" 
of Kosovar Albanians.  Lavrov also bemoaned that "certain 
western countries" had accepted the inevitability of an 
independent Kosovo. 
 
Russia/EU 
--------- 
 
7. (C) Both ministers stated that the pace of EU/Russia 
cooperation was on target, including extension of partnership 
and cooperation agreements to the ten new members.  Frattini 
urged rapid Russian adoption of the Kyoto agreement, to which 
Lavrov made no promises but hinted that there would be "good 
news" in the near future.  Lavrov said that he hoped ongoing 
discussions would successfully address issues related to the 
flow of goods through Kaliningrad, and urged continued EU 
focus on the status of Russian minorities in the Baltics. 
 
UN Reform 
--------- 
 
8. (C) Frattini reiterated his government's strong concerns 
(ref b), that pressure from Germany and Japan was moving the 
UNGA towards accepting additional permanent Security Council 
seats, which would exclude Italy.  Frattini was worried that 
recent unspecified public statements and accounts of meetings 
between Russian officials with interlocutors from other 
(unspecified) countries indicated Moscow was now leaning 
toward the German/Japanese position.  Frattini was therefore 
relieved, said Marsilli, when Lavrov emphasized that Russia 
was "in no hurry" to expand the P-5.  Moscow was willing to 
consider all UN reform proposals, he continued, but it would 
take the strong support of an "overwhelming majority" of the 
General Assembly, not just two-thirds, for Russia to accede 
to restructuring that included more permanent Security 
Council seats.  Lavrov stated that should such overwhelming 
support emerge, Russia would consider Germany, Japan, India 
and Brazil logical candidates for membership. 
 
9. (C) Comment:  Marsilli said that Frattini was most 
relieved that Lavrov had referred to "overwhelming" numbers 
(far more than two-thirds support) as a condition which must 
be satisfied before Moscow would entertain enlarging the 
UNSC.  As stated in ref b, the Italian Government, at levels 
high and low, constantly ping their US interlocutors for 
signals on our views.  FM Frattini even raised the issue with 
a visiting delegation from the Anti-Defamation League.  We 
have been informed by our contact at the Canadian Embassy 
that FM Frattini has requested a bilat on the margins of UNGA 
with FM Graham, and that the main topic of that conversation, 
at least from the Italian side, will be UN reform.  We can 
expect that during any similar bilat with Secretary Powell, 
Frattini will be seeking the same specific reassurances from 
the US that he received from Lavrov. 
 
Visit Rome's Classified Website: 
http://www.state.sgov.gov/p/eur/rome/index.cf m 
 
SEMBLER 
 
 
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	2004ROME02853 - Classification: CONFIDENTIAL