US embassy cable - 05PARIS2904

UNCLAS SECTION 01 OF 02 PARIS 002904 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EB/TPP, EUR/ERA, EUR/WE, EUR/PPD, 
COMMERCE FOR NAAS 
DEPARTMENT OF COMEMRCE FOR ITA 
STATE FOR USTR 
 
E.O. 12958:  N/A 
TAGS: EAIR, ETRD, PREL, FR 
SUBJECT: NEW AIRBUS A380 TAKES FLIGHT, AMID MUCH CROWING 
(AND SWIPES AT THE U.S. AND BOEING) 
 
NOT FOR INTERNET DISTRIBUTION 
 
1. (SBU) SUMMARY.  Amid much media hoopla and self- 
congratulation from politicians and commentators, Airbus 
launched its double-decker A380 on its maiden flight April 
27.  The four-hour flight from Toulouse of the world's 
largest passenger jet was witnessed by close to 50,000 
visitors on the same Blagnac airfield that launched the 
Concorde in 1969.  With the A380 aircraft's flight taking on 
all kinds of symbolic significance, French television and 
newspapers were filled with lyrical tributes to the kind of 
European ingenuity and cooperation that the multinational 
Airbus represents, including its public subsidies. There 
were few references to the pioneering role that U.S. 
technology has played in past and present Airbus aircraft, 
nor to the debt it owes to Boeing's 747 jumbo jet, whose 
passenger service started in 1969.  More than few 
commentators chose to dwell on the transatlantic rivalry 
between Airbus and Boeing, taking Boeing (read the United 
States) to task for announcing its good news on orders from 
Canada and India the same week, criticizing Boeing's 
decision to challenge Airbus's and its public subsidies, and 
even hinting at U.S. espionage in Toulouse. END SUMMARY. 
 
 
THE AIRBUS AND ...  THE CONSTITUTION! 
-------------------------------------- 
 
2. (U) The French press doted heavily on the symbolism of 
the aircraft's flight and its significance for Europe. The 
left-of-center daily Liberation's giant headlines read 
"Europe takes off" over a photo of the new aircraft.  The 
article notes somewhat cynically that politicians on both 
sides of the aisle are scrambling to take credit for the 
success of the "super jumbo", even linking it to the 
proposed European Constitution. "Airbus' success commands us 
to advance towards the Europe of which this constitution 
lays the foundations", read the daily's editorial.  Le 
Figaro's (right-of-center daily) headlines read "Europe's 
Wings" and calls the Airbus A380 project a "political leap 
of faith". Only "Le Monde"'s front-page cartoon showed the 
Airbus flying through the sky, with another plane, the 
European Union, grounded on the airfield. 
 
 
PRAISE FOR INDUSTRIAL POLICY 
------------------------------ 
 
3. (U) But the French media focused also on the 
transatlantic rivalry between Airbus and Boeing, using the 
opportunity to take potshots at Boeing and the United 
States.  Le Figaro's April 27 editorial hails Airbus's 
success with the A380 as managing to "challenge, on its own 
territory, its American rival's crushing dominance".  Most 
other dailies noted that Airbus now has the more challenging 
task of selling the A380 and making it a commercial success 
as well.  Many news stories also pointed to Boeing's 
announcement of good news on sales of aircraft to Air Canada 
and Air India as the American company's attempt to rain on 
Airbus' parade. 
 
4. (U) The Figaro editorial goes on to praise Airbus's 
public "financing model" and echoing President Jacques 
Chirac's frequent comments, urges an "Airbus" approach for 
"European projects in other areas such as communications, 
health care or biotechnology".  Le Figaro charges Boeing 
with hypocrisy for accusing Airbus of receiving public funds 
for its projects, and it alleges that the "Boeing system 
functions, if not more so" with public monies.   Finally, 
Liberation expressed its approval that the A380 project and 
its financing are "running counter to . free market 
ideology". 
 
ECONOMIC INTELLIGENCE AGENTS 
---------------------------- 
 
5. (SBU) The tabloid Le Parisien's headlines were blunter, 
proclaiming "Airbus scores one against Boeing". The populist 
daily, however, goes further, highlighting the interest that 
Airbus's success might have for "economic intelligence 
agents" in Toulouse, and reports that the French 
intelligence agencies have often targeted the U.S. Consulate 
in Toulouse.  Indeed, there have been several references in 
the popular regional press to the American Presence Post 
(APP) in Toulouse and its implied role in "economic 
intelligence" gathering, particularly targeting Airbus. 
(The Embassy is asking for the journal in question, "La 
Depeche du Midi," to print a letter from the Charge 
clarifying the APP's real role in the region.) 
 
6.  COMMENT.  As with the Euro, the flight of the Airbus 
A380 is a point of great pride among ordinary French 
citizens as well as politicians.  It is easy to understand 
the desire to emphasize such a positive "European" 
development, rather than dwell on all the negatives, i.e. 
the disenchantment of voters over a proposed EU 
constitution, Turkey's future with the EU, the accession of 
10 new countries, the failure of the Services Directive and 
other difficult dossiers.  But while a justifiable source of 
pride, it is also an opportunity for some to reinforce the 
wrongheaded (but populist) notion that the EU is always best 
defined in opposition to the United States.  We need to 
watch carefully to ensure that this doesn't get out of hand. 
END COMMENT. 
 
Rosenblatt