US embassy cable - 05ROME1391

C O N F I D E N T I A L ROME 001391 
 
SIPDIS 
 
 
E.O. 12958: DECL: 04/22/2010 
TAGS: IS, IT, MASS, SY, ETTC, EXPORT CONTROLS 
SUBJECT: ITALY: POTENTIAL SALE TO SYRIA OF AIR DEFENSE 
SYSTEM 
 
Classified By: DEPUTY CHIEF OF MISSION EMIL M. SKODON, REASONS 1.5 (B) 
AND (D) 
 
1. (C) Prime Minister Berlusconi's diplomatic adviser, 
Giovanni Castellaneta, invited DCM and POL MC to his office 
April 22 to discuss Italian plans to sell an "Air Defense 
Integrated System" (ADIS) to Syria. Castellaneta said that 
the Italian firm Finmecannica (a defense industry 
conglomerate, 32% state-owned, on whose board Castellaneta 
sits) and its subsidiaries Alenia and Marconi Systems had 
reached a draft agreement with the government of Syria for a 
422 million dollar project, commencing in 2006 with 
completion targeted for 2009.  The proposal would be built 
around Damascus and would include surveillance radar, fixed 
and mobile command centers, and a secure ground 
communications network.  Castellaneta provided a three-page 
description of the project, which post has secure faxed to 
State (EUR/WE).  He said that the Italian proposal had won 
out over a strong competing bid by a Russian firm. 
 
2. (C) Castellaneta said that no actual contract has been 
signed yet, and probably would not be until later this year. 
He asked that the DCM provide Washington's reaction to the 
proposed sale as soon as possible, ideally within the next 
seven days.  He specifically said that if the US does not 
want Finmeccanica to proceed, it would not.  Castellaneta's 
deputy, Paolo Dionisi, emphasized that the proposed system is 
not "state-of-the-art". 
 
3. (C) DCM undertook to provide Washington's response as soon 
as possible.  He noted that the question had arisen at a 
particularly sensitive time, as it is not yet clear whether 
Syria will comply with its obligation under UNSCR 1559 to 
withdraw fully from Lebanon.  He asked whether the Italians 
had yet consulted with Israel on this issue.  Castellaneta 
replied that he believed Israel was aware of Italian-Syrian 
negotiations on the project, but Israel and Italy have not 
yet discussed the project directly. 
 
4. (C) ACTION REQUEST: Embassy Rome requests that Department 
provide, ideally by April 29, an initial interagency response 
to the Italian inquiry.  This should include (obviously): the 
potential effect on implementation of such a deal on UNSCR 
1559 implementation; any applicable side-effects of USG 
sanctions on Syria; and an assessment of the potential 
Congressional reaction. END ACTION REQUEST 
 
SEMBLER 
 
 
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	2005ROME01391 - Classification: CONFIDENTIAL