US embassy cable - 05ROME905

C O N F I D E N T I A L ROME 000905 
 
SIPDIS 
 
 
E.O. 12958: DECL: 03/17/2015 
TAGS: PHUM, PREL, CM, IT, EUN, EXPORT CONTROLS 
SUBJECT: ITALY WILL MAKE NO COMMITMENTS TO CHINESE FM LI ON 
ARMS EMBARGO 
 
REF: A) STATE 44309 B) BUDAPEST 615 
 
Classified By: POLMINCOUNS TOM COUNTRYMAN.  REASON: 1.5 (B)(D) 
 
1. (C) Drawing from points ref a, poloff reiterated with EU 
CFSP Office Director Luigi Mattiolo continued strong US 
concern over the possibility that the EU may lift its arms 
embargo against China within the next few months, and the 
damaging signal such a development could send to Beijing and 
to those outside the EU looking to increase arms sales to 
China.  Poloff said that the US hoped that FM Fini would use 
the opportunity presented by FM Li's March 18 Rome visit to 
urge China to improve its internal human rights situation and 
do its part to stabilize the security situation in the Taiwan 
Strait. 
 
2.  (C) Mattiolo said that his government, including FM Fini, 
is well aware of USG opposition to the EU lifting its arms 
embargo on China  He reiterated that Italy is not pushing the 
EU to lift, but, contradicting somewhat indications reported 
ref b, noted that it was very likely the Embargo would be 
lifted prior to the final Council of the Luxembourg 
Presidency, given UK and French support for lifting the ban. 
Italy shares the view held among all member states that a 
decision to lift the ban shoud only be taken in conjunction 
with strengthening the "Code of Conduct" in  "consultation" 
with the US. 
 
3. (C)  As to the details of Li's visit, Mattiolo said he had 
been asked to contribute input to Fini's briefing material, 
and noted that the agenda would be "broad, ranging from 
bilateral concerns on human rights to Italy's desire to 
improve its trade relationship with China" which would 
possibly include contracts on arms not currently restricted 
by the embargo.  Mattiolo said that ongoing negotiations on 
the embargo in Brussels would preclude Fini from making "too 
forward leaning" statements to Li about lifting the embargo, 
other than to say the issue is under study.   Mattiolo 
promised to share points ref a with Fini's staff. 
 
4. (C) Separately, Pol Minister-Counselor shared points ref a 
with Fini's Deputy Chief of Cabinet Alain Economides, who 
promised to review them with the FM prior to his meeting with 
Li. 
 
5. (C)  Comment.  The Italians have in the past interpreted 
broadly "the issue is under study" when making statements 
under that mantle.  During Fini and President Ciampi's visit 
to Beijing in December, both made public remarks very 
pleasing to the ears of both their hosts and to the Italian 
businesspersons, arms manufacturers included, they had in 
tow.  Recently, possibly in preparation for Li's trip, the 
government took a hard line against the Lega Nord party's 
push for anti-dumping duties on textiles seen as harmful to 
Chinese business interests.  We expect, based on previous 
experience, that the Italians will take a forward leaning 
(pro-lift) line in public while Li and his entourage are in 
Rome, again for the benefit of their Chinese guests and 
Italian defense industry executives, who will be watching 
this visit closely for signals of Italian government 
intentions on the embargo.  It is just as likely that the 
government will then revert to its "neither lead nor 
obstruct" position in Brussels after the visit. 
 
SEMBLER 
 
 
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	2005ROME00905 - Classification: CONFIDENTIAL