US embassy cable - 02ROME3301

UNCLAS SECTION 01 OF 02 ROME 003301 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, IT, ITECON 
SUBJECT: AMBASSADOR TALKS BUSINESS AT AMCHAM LUNCHEON 
 
1. SUMMARY:  THE AMERICAN CHAMBER OF COMMERCE (AMCHAM) IN 
ITALY HOSTED A JUNE 18 LUNCHEON FOR THE AMBASSADOR.  IN HIS 
REMARKS, THE AMBASSADOR ASKED AMCHAM MEMBERS TO BECOME MORE 
                       UNCLASSIFIED 
 
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ACTIVE AND ASKED THAT THE AMCHAM AND ITS MEMBERS WORK 
CLOSELY WITH THE EMBASSY. HE EMPHASIZED THE EMBASSY'S 
COMMITMENT TO SUPPORTING U.S. FIRMS, BUT ALSO NOTED THAT 
LOBBYING IS A LEGITIMATE ACTIVITY FOR BUSINESS.  AMCHAM 
MEMBERS THANKED THE AMBASSADOR FOR HIS AND THE EMBASSY'S 
ONGOING EFFORTS TO ENSURE EQUAL, FAIR AND TRANSPARENT 
TREATMENT FOR U.S. COMPANIES AND ALSO RECOGNIZED EMBASSY'S 
SUPPORT IN PROVIDING ACCESS AND CREATING A POSITIVE BUSINESS 
ENVIRONMENT IN ITALY.  AN ACTIVE DISCUSSION ENSUED REGARDING 
OBSTACLES AND OPPORTUNITIES FOR U.S. FIRMS IN ITALY, AND HOW 
THE AMCHAM CAN BEST ASSIST ITS MEMBERS.  THIS MEETING WAS A 
USEFUL EVENT IN A CONTINUING EFFORT TO IMPROVE OPPORTUNITIES 
FOR U.S. FIRMS IN ITALY.  END SUMMARY. 
 
2.  THE AMCHAM HOSTED A JUNE 18 LUNCHEON IN ROME IN HONOR OF 
AMBASSADOR SEMBLER.  PARTICIPANTS INCLUDED REPRESENTATIVES 
FROM CATERPILLAR, MORGAN GUARANTY TRUST, PMG, UNION CARBIDE, 
PHILLIP MORRIS, VERIZON, BOYDEN INT., PROCTER AND GAMBLE, 
THE AMERICAN INTERNATIONAL CLUB OF ROME, MCDONALDS, PFIZER, 
AND BOOZ-ALLEN. COMMERCIAL MINISTER COUNSELOR ERIC WEAVER, 
ECONOMIC COUNSELOR AND ECONOMIC AND COMMERCIAL SPECIALISTS 
ALSO PARTICIPATED. 
 
3.  AMBASSADOR SEMBLER UNDERSCORED THE IMPORTANCE OF AN 
ACTIVE AMCHAM IN ORDER FOR U.S. COMPANIES TO DEVELOP AND 
GROW IN LOCAL MARKETS.  HE ENCOURAGED COMPANY EXECUTIVES TO 
BECOME MORE ACTIVE IN AMCHAM ACTIVITIES, AND TOLD THEM SUCH 
EFFORTS WILL PAY LONG-TERM DIVIDENDS FAR IN EXCESS TO THEIR 
AMCHAM INVESTMENT OF TIME AND ENERGY.  THE AMBASSADOR 
STRESSED HIS COMMITMENT TO CORRECTING THE TRADE IMBALANCE 
BETWEEN THE U.S. AND ITALY. HE OFFERED THE EMBASSY'S SUPPORT 
                       UNCLASSIFIED 
 
PAGE 03        ROME  03301  01 OF 02  051439Z 
TO U.S. FIRMS, AND URGED THEM TO WORK WITH THE EMBASSY TO 
REDUCE BARRIERS TO U.S. TRADE AND INVESTMENT IN ITALY.  HE 
ALSO NOTED THAT LOBBYING, WHILE NOT COMMON AMONG ITALIAN 
FIRMS, WAS A PERFECTLY LEGITIMATE ACTIVITY FOR FIRMS AND 
ORGANIZATIONS TO PROTECT AND PROMOTE LEGITIMATE BUSINESS 
INTERESTS. 
 
4.  MINISTER COUNSELOR WEAVER INVITED AMCHAM TO STAY ACTIVE 
AND HIGHLIGHTED THE SUCCESSFUL COOPERATION BETWEEN THE U.S. 
MISSION AND THE AMCHAM IN RECENT YEARS.  HE NOTED THAT 
WORKING TOGETHER HAS ENABLED U.S. BUSINESSES TO GROW, 
CONSOLIDATE AND BE MORE SUCCESSFUL IN ITALY. THE ECONOMIC 
COUNSELOR ECHOED THE AMBASSADOR IN OFFERING THE EMBASSY'S 
SUPPORT.  SHE SPECIFICALLY INVITED AMCHAM MEMBERS TO COME TO 
THE EMBASSY EARLY WHEN THEY HAVE VIEWS, CONCERNS OR SPECIFIC 
INTEREST IN ITALIAN POLICIES/LEGISLATION, EU 
POLICIES/DIRECTIVES OR INTERNATIONAL (WTO, OECD) 
NEGOTIATIONS. 
 
5. COMPANY REPRESENTATIVES ENDORSED THE CALL FOR CONTINUED 
EMBASSY/AMCHAM COOPERATION AND EXPRESSED APPRECIATION FOR 
THE EMBASSY'S LONG-TERM CONTRIBUTION IN SUPPORTING U.S. 
BUSINESS IN ITALY AND IN ENSURING EQUAL ACCESS AND A LEVEL 
PLAYING FIELD.  VERIZON REPRESENTATIVE MADE SPECIFIC 
REFERENCE TO THE EMBASSY'S EFFECTIVE INTERVENTION, WHICH 
ASSURED THAT VERIZON COULD PARTICIPATE IN A LARGE PUBLIC 
TENDER IN 2001. (NOTE: VERIZON WON THE CONTRACT). 
 
6.  AN ACTIVE DISCUSSION ENSUED, INVOLVING ALL PARTICIPANTS. 
AMONG ISSUES DISCUSSED WERE: 
 
                       UNCLASSIFIED 
 
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-- BARRIERS TO U.S. TRADE AND INVESTMENT, INCLUDING THE 
COMPLEX TAX SYSTEM, LABOR RIGIDITIES, THE DIFFICULT 
BUREAUCRATIC OBSTACLES, AND THE INADEQUACIES OF THE ITALIAN 
JUSTICE SYSTEM. 
 
-- ITALY'S DIFFERENT BUSINESS CULTURE, REQUIRING PERSONAL 
TRUST AND LONG TERM RELATIONSHIPS. 
 
-- LARGE NUMBER OF U.S. "CONSULTANTS" WHO COME TO ITALY, 
WHEN THE NEED IS FOR ENTREPRENEURS, MANAGERS AND PRODUCTIVE 
FIRMS. 
 
-- IDEA OF FORMING INDUSTRY SUBGROUPS WITHIN AMCHAM TO 
EXPLORE THE PROBLEMS/OPPORTUNITIES IN EACH SECTOR AND FOCUS 
LOBBYING EFFORTS. 
 
7.  THE PROCTER AND GAMBLE REPRESENTATIVE NOTED THAT, WHILE 
IN THE PAST THE FIRM'S OFFICIALS HAD PREFERRED THAT IT BE 
SEEN AS AN ITALIAN ENTITY (INSTEAD OF AS A BRANCH OPERATION 
OF A U.S. MULTINATIONAL), THIS HAS CHANGED.  THEY NOW 
BELIEVE IT IS IN THEIR INTEREST TO GIVE GREATER VISIBILITY 
TO THEIR U.S. OWNERSHIP AND ARE, THEREFORE, MORE WILLING TO 
PARTICIPATE IN AMCHAM ACTIVITIES AND ENGAGE IN GREATER 
DIALOGUE WITH THE EMBASSY.  THE PROCTER AND GAMBLE 
REPRESENTATIVE THOUGHT THAT OTHER COMPANIES ALSO MIGHT BE 
THINKING ALONG THESE LINES. 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ7235 
 
PAGE 01        ROME  03301  02 OF 02  051440Z 
ACTION EUR-00 
 
INFO  LOG-00   AGRE-00  AID-00   CEA-01   CIAE-00  CTME-00  DODE-00 
      ITCE-00  DOTE-00  SRPP-00  EB-00    EXME-00  E-00     FAAE-00 
      UTED-00  VC-00    FRB-00   H-01     TEDE-00  INR-00   ITC-01 
      L-00     VCE-00   AC-01    NSAE-00  NSCE-00  OMB-01   OPIC-01 
      PER-00   ACE-00   SP-00    SSO-00   SS-00    STR-00   TEST-00 
      TRSE-00  USIE-00  DRL-02   G-00     SAS-00     /008W 
                  ------------------C708CB  051446Z /38 
R 051452Z JUL 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 4639 
INFO USDOC WASHDC 
AMCONSUL MILAN 
AMCONSUL FLORENCE 
AMCONSUL NAPLES 
 
UNCLAS SECTION 02 OF 02 ROME 003301 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, IT 
SUBJECT: AMBASSADOR TALKS BUSINESS AT AMCHAM LUNCHEON 
 
8. COMMENT: THE SESSION SEEMED TO PROVIDE A CATALYST FOR A 
MORE ACTIVE AMCHAM AND ENHANCED EMBASSY/AMCHAM COOPERATION. 
NEW AMCHAM PRESIDENT MARIO RESCA, CEO OF MCDONALDS ITALY, IS 
A SAVVY BUSINESSMAN WITH A SOLID NETWORK OF ITALIAN AND 
                       UNCLASSIFIED 
 
PAGE 02        ROME  03301  02 OF 02  051440Z 
AMERICAN CONTACTS.  HE IS EXPECTED TO MAKE THE AMCHAM A MORE 
VIBRANT AND EFFECTIVE ORGANIZATION.  WE PLAN TO WORK CLOSELY 
WITH HIM ON ENHANCING SUPPORT TO U.S. BUSINESS AND 
OVERCOMING ITALIAN BARRIERS TO TRADE AND INVESTMENT.  WE 
WILL ALSO FOLLOW UP WITH AMCHAMON SPECIFIC IDEAS, SUCH AS 
THE SECTORAL WORKING GOUPS. 
 
SEMBLER 
 
                       UNCLASSIFIED 
 
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 2002ROME03301 - Classification: UNCLASSIFIED