US embassy cable - 05ROME1529

C O N F I D E N T I A L  ROME 001529 
 
SIPDIS 
 
 
DEPT FOR DAS STEPHENS 
 
E.O. 12958: DECL: 04/29/2015 
TAGS: PREL, IT, SR, EUN, OSCE, KFOR 
SUBJECT: ITALIAN VIEWS ON "POST-STANDARDS" KOSOVO; SUPPORT 
FOR OSCE BELGRADE HOM MASSARI 
 
REF: USOSCE 169 
 
Classified By: POL MINISTER COUNSELOR TOM COUNTRYMAN. 
REASON: 1.4 (b)(d) 
 
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Independent Kosovo with Transitional Control 
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1. (C) EUR DAS Kathy Stephens, in town on April 29 for the 
Aspen Institute's rollout of the International Commission on 
the Balkans report on "The Balkans in Europe's Future" (copy 
emailed to EUR/SCE), discussed briefly with MFA EUR DG 
Giovanni Caracciolo and Deputy PolDir Claudio Bisognero 
Italian ideas on "post-standards" Kosovo.  Caracciolo 
emphasized the critical period Europe and the US were 
entering regarding Kosovo.  He worried that a no vote by 
France on the EU constitution could have ramifications on 
plans for further EU enlargement and assistance to Balkans 
countries.  Italy continues to support the idea of an 
independent Kosovo with "transitional control" by the 
international community.  Caracciolo stressed that having a 
plan on "status" ready immediately after the "standards" 
report is issued in June was imperative.  Delay until after 
the summer break would halt momentum.  The MFA was already 
drafting a paper on next steps; Balkans Office Director 
Raimondo Decardona promised to share an advance copy with 
Poloff before distributing to other CG members.  Caracciolo 
emphasized, and Stephens agreed, that status talks should 
begin as soon as possible - hopefully by October but not 
later than the end of 2005.  Stephens added that we must be 
ready by September to name a senior European figure, with a 
strong US deputy, to manage status talks.  The contact group 
should provide them with assistance and guidance. 
 
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Stronger European Role 
---------------------- 
 
2. (C) Bisognero said that the Italian paper would underline 
that Kosovo's transitional status would be anchored to a 
strong European dimension.  He added that the plan would 
project a shrinking UN role concomitant with responsibilities 
migrating to a EU Special Representative (EUSR) component. 
He emphasized the need for an international "consultative 
body" or steering committee, like the Bosnia PIC, composed of 
the CG, regional partners, UN, NATO, OSCE, and, eventually, 
SaM.  Bisognero said the plan would call for an increasing 
degree of self-government contingent upon sufficient 
protection for the K-Serb minority.  Bisognero said that a 
more efficient, restructured KFOR would be necessary to 
provide the security umbrella under which Kosovar authorities 
and the IC could move the process forward.  He foresaw the 
possibility of an increased EU security presence deployed 
"when the time was right" and according to Berlin-plus 
procedures, as in the SFOR-EUFOR transition in Bosnia. 
Stephens said that the US supports a task force arrangement 
to improve KFOR functionality, and was looking favorably 
British/French ideas on overall security sector reform.  She 
pointed out that KPC's future role must also be considered. 
 
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Rationalize Economic Assistance 
------------------------------- 
 
3. (C) Caracciolo underlined that economic assistance to 
Kosovo, now administered by UNMIK, needed to be 
"rationalized."  He had in mind a donors conference with IFI 
participation.  The EC would have to think creatively about 
how it can contribute.  The IC will have to be "severe" on 
well defined benchmarks - for instance, a fair and efficient 
taxation system.  Stephens agreed, and noted that the US is 
looking at such issues, including conditions for eligibility 
for IFI support.  She added that Albania and Macedonia could 
provide economic development lessons-learned.  Caracciolo 
would also ask the economic bureaus within the MFA to 
contribute ideas on "minimum requirements for economic 
stability" for an independent Kosovo. 
 
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Support for OSCE SaM HOM Massari 
-------------------------------- 
 
4. (C) Caracciolo ended the meeting by reaffirming that the 
Italian government would resist any attempt by the current 
OSCE Chairman in Office, Slovenian FM Rupel, to block a 
routine contract renewal in July for the OSCE HOM in 
Belgrade, Italian diplomat Maurizio Massari.  As reported 
reftel, Massari did argue with Rupel during his April 5 visit 
to Podgorica, but Caracciolo's version is that Rupel became 
upset when Massari pointed out the impropriety of his public 
statement suggesting that the question of Montenegrin 
independence was separate from that of future integration 
with Europe.  Caracciolo also indicated he understood how 
Massari would have become upset when Rupel, during his public 
remarks, acknowledged the Romanian head of the OSCE's 
Podgorica office, but neglected to mention Massari. 
Caracciolo said that Massari is due to leave the posting at 
the end of this year, but insisted his departure would be "on 
our terms." 
 
5. (U) This message was approved by DAS Stephens. 
 
SEMBLER 
 
 
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2005ROME01529 - Classification: CONFIDENTIAL