US embassy cable - 02ROME3384

C O N F I D E N T I A L SECTION 01 OF 03 ROME 003384 
 
SIPDIS 
 
E.O. 12958: DECL: 07/10/2012 
TAGS: PREL, ETRD, EAID, IT, ETRD, EAID, IT, ETRD, EAID, IT, CH, CHPREL, CHPREL 
SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE 
ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS 
 
                       CONFIDENTIAL 
 
PAGE 02        ROME  03384  01 OF 03  101003Z 
CLASSIFIED BY: A/POLMINCOUNS GARY ROBBINS FOR REASONS 1.5 (B) AND (D) 
 
1.  (C) SUMMARY:  IN MAY 28 AND JULY 5 MEETINGS, THE MFA'S 
OFFICE DIRECTOR FOR EAST ASIAN AFFAIRS AND HIS DEPUTY 
PROVIDED POLOFF WITH READOUTS ON RECENT VISITS TO ITALY BY 
THE PRC DEPUTY PRIME MINISTER AND TO CHINA BY THE GOI 
MINISTER OF PRODUCTIVE ACTIVITIES AND MFA UNDERSECRETARY FOR 
ASIA AND HUMAN RIGHTS.  THE CHINESE RAISED CONCERNS ABOUT THE 
IMPORTANCE OF TRADE AND INVESTMENT IN CHINA AS WELL AS 
OBSERVANCE OF THE "ONE CHINA" POLICY.  THEY TOOK SOME HEAT 
FROM DEPUTY PRIME MINISTER FINI ON HUMAN RIGHTS ISSUES, 
PARTICULARLY RELIGIOUS PERSECUTION.  ON HIS TRIP TO CHINA, 
THE GOI MINISTER WAS ACCOMPANIED BY A LARGE PRIVATE SECTOR 
DELEGATION.  HIS OBJECTIVES, AND THOSE OF THE UNDERSECRETARY, 
WERE TO FIND EXPORT OPPORTUNITIES, OBTAIN PR FOR DEVELOPMENT 
AID, AND SMOOTH OVER SYMBOLIC ISSUES OF CONTENTION, SUCH AS 
CONTACT WITH TAIWANESE OFFICIALS.  END SUMMARY. 
 
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LI LANQING IN ROME:  LET'S DEEPEN ECONOMIC AND POLITICAL TIES 
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2.    (C) ACCORDING TO RENZO MARIO ROSSI, OFFICE DIRECTOR FOR 
EAST ASIAN AFFAIRS, AND HIS DEPUTY, PAOLA MUNZI, DEPUTY PRIME 
MINISTER LI LANQING WAS THE FIRST RANKING CHINESE OFFICIAL TO 
VISIT ITALY UNDER THE BERLUSCONI GOVERNMENT.  LANQING AND HIS 
DELEGATION, WHICH INCLUDED THE MINISTER OF CULTURE, DEPUTY 
MINISTER FOR SCIENCE AND TECHNOLOGY, AND OTHERS, MET WITH 
PRESIDENT CIAMPI, DEPUTY PRIME MINISTER FINI, THE 
INTERNATIONALIZATION REPRESENTATIVE OF THE CONFINDUSTRIA 
EMPLOYERS' ASSOCIATION, AND THE HEAD OF THE CHAMBER OF 
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PAGE 03        ROME  03384  01 OF 03  101003Z 
DEPUTIES' FOREIGN AFFAIRS COMMITTEE DURING THEIR MAY 21-25 
VISIT. 
 
3.    (C) FINI THANKED CHINA FOR ITS COOPERATION AGAINST 
TERRORISM, ILLEGAL MIGRATION, AND TRANSNATIONAL CRIME. 
(NOTE:  RECENTLY-RESIGNED INTERIOR MINISTER SCAJOLA HAD 
SIGNED A TRANSNATIONAL CRIME AGREEMENT WITH CHINA A FEW 
MONTHS BEFORE.  END NOTE.)  LANQING ASSERTED THAT THE GOI AND 
PRC AGREED ON STRATEGIC ISSUES, THE IMPORTANCE OF CULTURAL 
INCLUSION/DIVERSITY IN THE WORLD, AND GLOBAL "ECONOMIC 
BALANCE" IN A "MULTI-POLAR WORLD."  HE INVITED CIAMPI AND 
PRIME MINISTER BERLUSCONI TO VISIT CHINA NEXT SPRING AFTER 
THE CONCLUSION OF THE COMMUNIST PARTY CONGRESS SCHEDULED FOR 
OCTOBER.  FINI NOTED THAT THE GOI AND PRC SHARED SIMILAR 
VIEWS ON THE REFORM OF THE UNSC MEMBERSHIP.  (NOTE:  ITALY'S 
PROPOSAL FOR UNSC REFORM IS TO ADD EIGHT-TEN REGIONAL, 
NON-PERMANENT SEATS THAT WOULD BE SHARED BY 
COUNTRIES--ESPECIALLY THOSE THAT CONTRIBUTE THE MOST TO UN 
ACTIVITIES--NOT REPRESENTED IN OTHER SLOTS.  END NOTE.) 
 
4.    (U) LANQING PROPOSED THAT CHINA AND ITALY (1) INTENSIFY 
HIGH-LEVEL GOVERNMENT CONTACTS, (2) BROADEN ECONOMIC TIES, 
ESPECIALLY BETWEEN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES), 
AND (3) INCREASE SCIENTIFIC AND TECHNICAL EXCHANGES.  CHINA 
IS INTERESTED IN THE ITALIAN SME MODEL AND HOPES THAT TRADE 
AND JOINT VENTURES WITH ITALIAN COMPANIES EXPAND. 
 
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LANQING:  BUT MUST YOU CODDLE ENEMIES OF STATE? 
--------------------------------------------- -- 
 
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PAGE 04        ROME  03384  01 OF 03  101003Z 
5.    (C) SUGGESTING THAT THEY NOT LET POINTS OF DISAGREEMENT 
RUIN THEIR RELATIONSHIP, LANQING THANKED THE GOI FOR ITS ONE 
CHINA POLICY AND EMPHASIZED THE IMPORTANCE OF THE 
REUNIFICATION OF CHINA.  THE PRC WAS WILLING TO BE MORE 
FLEXIBLE TOWARD TAIWAN (WHICH COULD MAINTAIN ITS OWN SOCIAL 
AND ECONOMIC SYSTEM AND ARMED FORCES, BE REPRESENTED IN 
PARLIAMENT, AND NOT BE GOVERNED BY THE MAINLAND) BUT ONLY IN 
A ONE CHINA FRAMEWORK.  THE GOI NOTED THAT ITS 
PARLIAMENTARIANS WERE INDEPENDENT AND THAT IT WAS LEGALLY 
OBLIGATED TO ALLOW TAIWANESE OFFICIALS TO TRANSIT ITALY IN 
ORDER TO VISIT THE VATICAN.  LANQING DISAGREED WITH THIS 
RATIONALE, STATING THAT THE TAIWANESE'S REAL INTENTION IN 
OBTAINING TRANSIT VISAS WAS TO INCREASE CONTACT WITH THE GOI. 
 (ROSSI AND MUNZI EXPLAINED THAT IN A RECENT VISIT OF WHICH 
THE PRC HAD COMPLAINED, TAIWANESE OFFICIALS MET IN A PRIVATE 
DINNER WITH A PARLIAMENTARY GROUP.  SUCH VISITS WERE A 
CONTINUAL CONCERN TO THE MFA.  FOR EXAMPLE, THE TAIWANESE 
PRESIDENT HAD REQUESTED A VISIT IN JUNE, AND THE GOI WAS 
UNSURE HOW TO RESPOND.  ON THE ONE HAND, TAIWAN'S FRIENDS 
LOBBY THE GOVERNMENT, AND THE PARLIAMENT EXPRESSES INTEREST 
IN ALLOWING SUCH VISITS, WHILE ON THE OTHER HAND, THE PRC 
PRESSES FOR VISA REFUSAL.  TAIWAN WAS AN ESPECIALLY HOT ISSUE 
FOR THE PRC BECAUSE OF THE MAINLAND'S UPCOMING PARTY 
CONGRESS, THE MFA REP SURMISED.  THE GOI HAD FEARED THAT 
CHINESE DISPLEASURE ON THIS ISSUE COULD HURT ITALIAN EXPORTS, 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ8012 
 
PAGE 01        ROME  03384  02 OF 03  101003Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   COME-00  CTME-00 
      INL-00   C-00     DODE-00  DOEE-00  SRPP-00  DS-00    EAP-00 
      EB-00    EXIM-01  OIGO-00  E-00     FBIE-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   IO-00    ITC-01   L-00     VCE-00 
      AC-01    DCP-01   NSAE-00  NSCE-00  OES-01   OIC-02   OMB-01 
      OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00     SCT-00 
      SP-00    SSO-00   STR-00   TRSE-00  USIE-00  SA-00    EPAE-00 
      PMB-00   DSCC-00  DRL-02   G-00     NFAT-00  SAS-00     /013W 
                  ------------------C90210  101004Z /38 
R 101011Z JUL 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 4727 
INFO EU MEMBER STATES COLLECTIVE 
AMEMBASSY BEIJING 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
CIA WASHINGTON DC//CIC/CTC// 
USMISSION USUN NEW YORK 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 003384 
 
SIPDIS 
 
E.O. 12958: DECL: 07/10/2012 
TAGS: PREL, ETRD, EAID, IT, CH 
SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE 
ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS 
 
                       CONFIDENTIAL 
 
PAGE 02        ROME  03384  02 OF 03  101003Z 
BUT HAD ALSO NOTICED THERE WERE NO SIGNS THAT COUNTRIES THAT 
RECEIVED THE DALAI LAMA, FOR EXAMPLE, WERE SO PUNISHED.) 
 
6.    (C) ON OTHER TOUCHY ISSUES, LANQING WAS PREDICTABLY 
NON-FORTHCOMING.  ON TIBET, HE SAID THAT THE PRC WAS PREPARED 
TO PROVIDE A HIGH DEGREE OF AUTONOMY, BUT THE PROBLEM WAS 
THAT THE DALAI LAMA WANTED THE INDEPENDENCE OF TIBET AND 
TAIWAN.  LANQING WENT ON TO CLAIM THAT THE FALUN GONG (FG) 
WAS A TERRORIST GROUP THAT PROMOTED SUICIDE.  ACCORDING TO 
THE MFA, THIS REMARK WAS AN ATTEMPT TO HEAD OFF GOI 
CRITICISM, SINCE A NUMBER OF ITALIAN BUSINESSMEN MARRIED TO 
CHINESE NATIONALS ARE FG MEMBERS.  THE GOI BELIEVES THAT FG 
IS PEACEFUL AND NON-SUICIDAL, AND FINI TOLD LANQING THAT IT 
WAS NOT THE GOI'S HABIT TO JUDGE THINGS ABOUT WHICH IT HAD NO 
EVIDENCE (I.E., FG'S CRIMINAL ACTIVITIES), BUT THAT RELIGIOUS 
FREEDOM MUST BE REAL.  FINI ALSO PRESSED FOR A RESOLUTION OF 
THE SCHISM BETWEEN THE NATIONALIST AND CLANDESTINE CATHOLIC 
CHURCHES.  FINALLY, HE NOTED THAT ITALY'S POLICIES ON TAIWAN, 
TIBET, AND HUMAN RIGHTS REFLECT AGREED EU POSITIONS. 
 
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ITALY GOES TO CHINA 
------------------- 
 
7.    (SBU) BACK-TO-BACK TRIPS TO CHINA BY SENIOR GOI 
OFFICIALS REFLECTED LARGELY THE PRO-BUSINESS BERLUSCONI 
GOVERNMENT'S EMPHASIS ON PROMOTING ITALIAN EXPORTS.  THE 
MISSIONS ALSO STEMMED FROM THE IMPETUS OF THE 
INTER-MINISTERIAL AND PRIVATE SECTOR GROUP ON CHINA, WHICH 
WAS ESTABLISHED ONE YEAR AGO.  (NOTE:  ITALIAN EXPORTS TO 
CHINA HAVE INCREASED CONSIDERABLY AS OF LATE, BUT THEY ARE 
                       CONFIDENTIAL 
 
PAGE 03        ROME  03384  02 OF 03  101003Z 
STILL A TINY FRACTION OF ITALY'S TOTAL EXPORTS.  THIS GROUP 
HAS ASKED THE GOI TO ESTABLISH A FUND FOR COMPANIES THAT WANT 
TO INVEST IN CHINA IN ORDER TO IMPROVE THE BENEFIT-TO-RISK 
RATIO.  THE IDEA, CONSIDERED CORPORATE WELFARE BY SOME, IS 
CONTROVERSIAL.  END NOTE.) 
 
8.    (C) ANTONIO MARZANO, MINISTER FOR PRODUCTIVE 
ACTIVITIES, WAS ACCOMPANIED BY REPRESENTATIVES OF THE PRIVATE 
SECTOR AND OF CONFINDUSTRIA, ITALY'S LARGEST EMPLOYER 
ASSOCIATION, ON HIS JUNE 12-13 VISIT.  THEIR MAIN GOAL WAS TO 
ESTABLISH CONTACTS FOR EXPORTING GOODS TO THE 2008 BEIJING 
OLYMPICS, FOR EXAMPLE IN PACKAGING.  HOWEVER, MUNZI SAID 
MARZANO'S TRIP WAS DISAPPOINTING IN THAT HIS CHINESE 
COUNTERPART WAS UNABLE TO MEET WITH HIM, DESPITE HAVING 
AGREED TO DO SO. 
 
9.    (C) MFA UNDERSECRETARY FOR ASIA AND HUMAN RIGHTS 
MARGHERITA BONIVER'S JUNE 24-27 VISIT WAS MORE SUCCESSFUL. 
BONIVER MET WITH MINISTER OF FOREIGN AFFAIRS TANG JIAXUAN AND 
DEPUTY MINISTERS OF FOREIGN AFFAIRS, EDUCATION, FOREIGN 
TRADE, AND FINANCE.  BONIVER KEPT THE EMPHASIS ON THE 
POSITIVE, HIGHLIGHTING POINTS OF AGREEMENT AND THE 
"EXCELLENT" STATE OF BILATERAL RELATIONS OVERALL.  DURING HER 
VISIT, SHE SIGNED A COOPERATION AGREEMENT THAT PROVIDED 48M 
EURO IN HEALTH AND TRAINING ASSISTANCE.  (NOTE:  MUNZI SAID 
THAT THE AGREEMENT WAS NOT NEW, BUT THE TRIP PROVIDED A GOOD 
OPPORTUNITY FOR A SIGNING CEREMONY.  END NOTE.)  THIS 
INCLUDED THE SECOND TRANCHE OF A CONTROVERSIAL PROJECT TO AID 
A HOSPITAL IN LHASA, TIBET.  SINCE TIBETANS COULD NOT AFFORD 
THE HOSPITAL, AID MEANT TO HELP THEM WAS BENEFITING CHINESE 
HAN SETTLERS INSTEAD.  ASKED WHY THE MFA DID NOT REALLOCATE 
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PAGE 04        ROME  03384  02 OF 03  101003Z 
THE MONEY, MUNZI REPLIED THAT THE GOI FELT CONSTRAINED TO 
DONATE AID ACCORDING TO PRC REQUESTS. 
 
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CONVERGENCE ON NORTH KOREA, INDIA/PAKISTAN, AFGHANISTAN 
--------------------------------------------- ---------- 
 
10.   (C) BONIVER AND JIAXUAN FOUND COMMON GROUND ON REGIONAL 
ISSUES.  ON NORTH KOREA, BONIVER NOTED THE PRC'S ABILITY TO 
INFLUENCE PYONGYANG TO LIBERALIZE.  JIAXUAN PRAISED THE 
ITALIAN/EU APPROACH TO THE ISSUE, STATING THAT WHEN THE GOI 
BECAME THE FIRST GOVERNMENT TO RECOGNIZE THE DPRK, IT 
ENCOURAGED NORTH KOREA TO OPEN TO THE WORLD.  (NOTE:  THE GOI 
RECOGNIZED THE DPRK IN 2000 UNDER A PREVIOUS CENTER-LEFT 
GOVERNMENT.  END NOTE.)  MUNZI INFORMED POLOFF THAT THE EU 
WORKING GROUP FOR ASIA'S MONTHLY MEETING IN BRUSSELS WAS 
CONSIDERING HOW TO ACHIEVE LONG-TERM GOALS IN NORTH KOREA. 
THE GOI HAD BEGUN A SMALL-SCALE AID PROGRAM THAT INCLUDED 
SCHOLARSHIPS, TRAINING, AND VISITS TO EUROPE AND WAS 
"BEGINNING TO PRODUCE SOME RESULTS."  A PROJECT IN THE OFFING 
WAS A DATABASE TO COMPILE DATA ON THE ENERGY AVAILABLE TO 
NORTH AND SOUTH KOREA.  THE MFA UNDERSTOOD THAT THE KEDO 
AGREEMENT, EVEN IF WASHINGTON WERE WILLING TO SIGN IT AT THIS 
POINT, WOULD BE INSUFFICIENT TO MEET THE DPRK'S ENERGY NEEDS. 
 THE SECTOR NEEDED EXTENSIVE REVAMPING. 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTO6795 
 
PAGE 01        ROME  03384  03 OF 03  101004Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   COME-00  CTME-00 
      INL-00   C-00     USNW-00  DODE-00  DOEE-00  SRPP-00  DS-00 
      EAP-00   EB-00    EXIM-01  E-00     FBIE-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   IO-00    ITC-01   L-00     VCE-00 
      AC-01    DCP-01   NSAE-00  NSCE-00  OES-01   OIC-02   OMB-01 
      OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00     SCT-00 
      SP-00    SSO-00   STR-00   TRSE-00  USIE-00  SA-00    PMB-00 
      DSCC-00  DRL-02   G-00     NFAT-00  SAS-00     /013W 
                  ------------------C90222  101004Z /38 
R 101011Z JUL 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 4728 
INFO EU MEMBER STATES COLLECTIVE 
AMEMBASSY BEIJING 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
CIA WASHINGTON DC//CIC/CTC// 
USMISSION USUN NEW YORK 
 
C O N F I D E N T I A L SECTION 03 OF 03 ROME 003384 
 
SIPDIS 
 
E.O. 12958: DECL: 07/10/2012 
TAGS: PREL, ETRD, EAID, IT, CH 
SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE 
ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS 
 
                       CONFIDENTIAL 
 
PAGE 02        ROME  03384  03 OF 03  101004Z 
 
11.   (C) ON INDIA AND PAKISTAN, BOTH ITALY AND CHINA AGREED 
THAT THE INTERNATIONAL COMMUNITY NEEDED TO KEEP PRESSURE ON 
VAJPAYEE AND MUSHARRAF TO PREVENT CONFLICT.  ON AFGHANISTAN, 
JIAXUAN STATED HIS APPRECIATION FOR THE GOI'S CONTRIBUTION TO 
REBUILDING THE COUNTRY.  BOTH SIDES WERE CONCERNED ABOUT THE 
WEAKNESS OF THE NEW GOVERNMENT AND AGREED THAT AN 
INTERNATIONAL PRESENCE, INCLUDING MILITARY, WAS NECESSARY TO 
STABILIZE THE SITUATION. 
 
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SHANGHAI:  REPRESSION COULD BE WORSE; PICK US FOR TRADE FAIR 
--------------------------------------------- --------------- 
 
12.   (C) BONIVER MET WITH SHANGHAI'S MAYOR AND FEDERATION OF 
WOMEN ENTREPRENEURS.  INFORMING BONIVER OF SHANGHAI'S $125M 
PROGRAM OF MODERNIZATION OF THE TRANSPORT, ENERGY, AND 
ENVIRONMENTAL SECTORS, BOTH REQUESTED SUPPORT FOR SHANGHAI'S 
CANDIDACY FOR THE UNIVERSAL TRADE EXPOSITION OF 2010.  (NOTE: 
 THE GOI REMAINS UNDECIDED.  END NOTE.) 
 
13.   (C) FINALLY, BONIVER MET WITH INTELLECTUALS, WHO, 
ACCORDING TO MUNZI, PLAYED DOWN THE GRAVITY OF THE PRC'S 
REPRESSION.  THOUGH THEY SEEMED FREER TO SPEAK THAN IN THE 
PAST, THEY WOULD ONLY CHARACTERIZE THE STATE'S ACTIONS 
AGAINST ITS SUPPOSED ENEMIES AS "EXAGGERATED."  MUNZI 
INTERPRETED THE SUBTLETY OF THIS CRITICISM AS MEANING THAT 
THE INTELLECTUALS WANTED TO COOL DOWN THE SITUATION IN THE 
RUN-UP TO THE PARTY CONGRESS. 
SEMBLER 
 
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 2002ROME03384 - Classification: CONFIDENTIAL