US embassy cable - 02ROME3855

C O N F I D E N T I A L SECTION 01 OF 03 ROME 003855 
 
SIPDIS 
 
NSC FOR KVOLKER/WANDRUSYSZYN 
 
E.O. 12958: DECL: 08/04/2012 
TAGS: PREL, PARM, MASS, MARR, PARM, MASS, MARR, PARM, MASS, MARR, IT, ITPREL, ITPREL 
SUBJECT: U/S BOLTON DISCUSSES NON-PROLIFERATION ISSUES WITH 
                       CONFIDENTIAL 
 
 
PAGE 02        ROME  03855  01 OF 03  061129Z 
SENIOR ITALIAN OFFICIALS 
 
REF: A. A) ROME 3849 
     B. B) ROME 1723 
 
CLASSIFIED BY: ACTING DCM THOMAS COUNTRYMAN FOR REASONS 1.5(B)(D) 
 
1. (U) THIS IS AN ACTION REQUEST.  PLEASE SEE PARAGRAPH 5. 
 
2. (C) SUMMARY.  U/S BOLTON DISCUSSED HIS RECENT MOSCOW 
VISIT, NON-PROLIFERATION AND ARMS COUNTROL ISSUES, MISSILE 
DEFENSE, THE GLOBAL PARTNERSHIP PROGRAM, CHINA AND THE 
INTERNATIONAL CRIMINAL COURT (REF A) AT AN AUGUST 5 WORKING 
LUNCH WITH SENIOR ITALIAN MFA AND MOD OFFICIALS.  MFA 
DIRECTOR GENERAL GIANCARLO ARAGONA EMPHASIZED THAT MISSILE 
DEFENSE AND NON-PROLIFERATION EFFORTS SHOULD NOT WORK TO 
DESTABILIZE THE EXISTING BALANCE WITH RUSSIA OR WITH CHINA. 
HE SAID THAT ITALY IS READY TO PARTICIPATE IN THE MD PROGRAM 
TO THE MAXIMUM OF ITS TECHNICAL CAPABILITIES AND IS LOOKING 
TO PROCEED WITH COOPERATIVE PROJECTS.  HE ALSO CONFIRMED 
ITALY'S COMMITMENT TO CONTRIBUTE EURO 1 BILLION TO THE 10 10 
OVER 10 PLAN AND ASKED FOR USG SUGGESTIONS ON PROJECTS WORTH 
FUNDING.  END SUMMARY. 
 
RUSSIA - IRAN 
------------- 
3. (C) ARAGONA, A FORMER AMBASSADOR TO MOSCOW, WAS 
PARTICULARLY INTERESTED IN THE IMPACT OF RUSSIA'S RECENT 
ANNOUNCEMENT OF ADDITIONAL SUPPORT FOR IRAN'S NUCLEAR REACTOR 
PROGRAM.  THE ANNOUNCEMENT, WHICH CAME AS THE USG WAS LOOKING 
TO BUILD ON THE ENCOURAGING RAPPORT BETWEEN PUTIN AND 
                       CONFIDENTIAL 
 
PAGE 03        ROME  03855  01 OF 03  061129Z 
PRESIDENT BUSH, COULD INSTEAD HAVE A CHILLING EFFECT ON 
US-RUSSIAN RELATIONS, U/S BOLTON STRESSED.  IT PUT A DEFINITE 
PALL OVER PLANNED TALKS ON RUSSIAN NON-PROLIFERATION EFFORTS, 
HE SAID, AND CAME AS AN UNPLEASANT SURPRISE TO US AND MANY 
RUSSIAN OFFICIALS ALIKE. PUTIN HIMSELF HAD STATED PREVIOUSLY 
THAT A NUCLEAR CAPABLE IRAN IS NOT IN RUSSIA'S INTEREST, HE 
SAID.  NOTING THAT THERE CONTINUES TO BE AN INCREASE IN 
IRAN'S CAPABILITY TO IMPROVE ITS COVERT NUCLEAR PROGRAM, U/S 
BOLTON OUTLINED USG CONCERNS WITH RUSSIA'S SUPPORT FOR IRAN'S 
BUSHEHR NUCLEAR REACTOR: 1) A FUNCTIONING REACTOR -- EVEN ONE 
ALLEGEDLY FOR CIVIL POWER PURPOSES -- OFFERS GREATER TRAINING 
OPPORTUNITIES AND EXPERIENCE THAN A RESEARCH REACTOR, 2) 
RUSSIAN SCIENTISTS AND TECHNICIANS ENTERING IRAN TO ASSIST 
WITH BUSHEHR PROVIDE IDEAL COVER FOR OTHERS ENTERING FOR 
COVERT PURPOSES, AND 3) FUEL RODS FROM BUSHEHR COULD BE USED 
BY IRAN FOR ILLEGITIMATE PURPOSES UNLESS A STRICT CONTROL 
SYSTEM IS ESTABLISHED AND ENFORCED.  RUSSIAN ASSISTANCE TO 
BUILD FIVE NEW REACTORS WILL ONLY MAGNIFY THESE CONCERNS, U/S 
BOLTON SAID.  AS IT IS, THE USG CONSENSUS IS THAT IRAN IS 
FIVE TO EIGHT YEARS AWAY FROM HAVING NUCLEAR WEAPONS, HE 
WARNED. 
 
4. (C) MFA COORDINATOR FOR INTERNATIONAL SECURITY AFFAIRS 
CARLO TREZZA ASKED IF ENHANCED SAFEGUARDS WOULD ADDRESS USG 
CONCERNS AND STILL ALLOW IRAN TO PROCEED WITH A REACTOR TO 
MEET ITS ELECTRICITY NEEDS.  U/S BOLTON AGREED THAT ENHANCED 
SAFEGUARDS ARE A PREREQUISITE, BUT NOTED THAT BUSHEHR SHOULD 
NOT BE VIEWED IN ISOLATION.  HE URGED THE ITALIANS TO 
CONSIDER WHY AN OIL-RICH STATE SUCH AS IRAN NEEDS TO DEVELOP 
NUCLEAR POWER CAPABILITY OR MINE URANIUM.  THE ITALIANS 
SUGGESTED THAT BETTER INTEL SHARING AMONG ALLIES, BILATERALLY 
                       CONFIDENTIAL 
 
PAGE 04        ROME  03855  01 OF 03  061129Z 
AND MULTILATERALLY, WOULD BE BE VERY USEFUL IN THIS AREA AND 
IN GENERAL.  WE MAY DIFFER ON HOW TO RESPOND, ARAGONA SAID, 
BUT AT LEAST WE WOULD BE WORKING WITH THE SAME SET OF FACTS. 
 
5. (C) ACTION REQUEST.  PRIME MINISTER BERLUSCONI CURRENTLY 
IS HOSTING PUTIN'S DAUGHTERS AT HIS SARDEGNA RESIDENCE, AND 
PUTIN IS EXPECTED TO JOIN THEM SOON.  WE HAVE ASKED 
BERLUSCONI ON OTHER OCCASIONS (REF B) TO CONVEY TO PUTIN 
CONCERNS ABOUT RUSSIAN COOPERATION AND EXPORTS TO ASSIST 
IRAN'S NUCLEAR PROGRAM, MOST RECENTLY IN APRIL.  AMBASSADOR 
SEMBLER WILL BE SPEAKING WITH BERLUSCONI'S SENIOR DIPLOMATIC 
ADVISOR, GIANNI CASTELLANETA, ON AUGUST 7, BEFORE 
CASTELLANETA DEPARTS FOR THE AUGUST HOLIDAY.  AMBASSADOR 
INTENDS TO DEPLOY THE FOLLOWING TALKING POINTS UNLESS 
OTHERWISE INSTRUCTED: 
 
-  AS YOU TOLD US AFTER HIS VISIT TO RUSSIA IN APRIL, THE 
PRIME MINISTER SHARES OUR CONCERN REGARDING WMD PROLIFERATION. 
 
-  AT THAT TIME, HE STRESSED TO PRESIDENT PUTIN THAT THE GOI 
WAS WORRIED THAT THE TRANSFER OF SENSITIVE TECHNOLOGIES FROM 
RUSSIA TO IRAN WAS AIDING IRAN'S ATTEMPTS TO BUILD NUCLEAR 
WEAPONS. 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ0027 
 
PAGE 01        ROME  03855  02 OF 03  061129Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AID-00   AMAD-00  ACQ-00   CIAE-00  INL-00 
      DOEE-00  PERC-00  SRPP-00  DS-00    EB-00    OIGO-00  VC-00 
      H-01     TEDE-00  INR-00   L-00     VCE-00   AC-01    NRRC-00 
      NSAE-00  OES-01   OMB-01   PA-00    PM-00    PRS-00   ACE-00 
      P-00     SCT-00   SP-00    IRM-00   SSO-00   SS-00    TRSE-00 
      T-00     USIE-00  DTC-00   EPAE-00  SSD-00   PMB-00   DSCC-00 
      PRM-00   DRL-02   G-00     NFAT-00  SAS-00   SWCI-00    /006W 
                  ------------------D52DC8  061131Z /38 
O 061126Z AUG 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC IMMEDIATE 5284 
INFO NATO EU COLLECTIVE PRIORITY 
AMEMBASSY BEIJING PRIORITY 
AMEMBASSY MOSCOW PRIORITY 
SECDEF WASHDC PRIORITY 
USCINCCENT MACDILL AFB FL PRIORITY 
USCINCEUR VAIHINGEN GE PRIORITY 
JOINT STAFF WASHDC PRIORITY 
NSC WASHDC PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 003855 
 
SIPDIS 
 
NSC FOR KVOLKER/WANDRUSYSZYN 
 
E.O. 12958: DECL: 08/04/2012 
                       CONFIDENTIAL 
 
PAGE 02        ROME  03855  02 OF 03  061129Z 
TAGS: PREL, PARM, MASS, MARR, IT 
SUBJECT: U/S BOLTON DISCUSSES NON-PROLIFERATION ISSUES WITH 
SENIOR ITALIAN OFFICIALS 
 
-  HE ALSO TOLD PUTIN THAT THE GOI HAD INFORMATION THAT IRAN 
HAD AN ACTIVE PROGRAM TO DEVELOP BOTH NUCLEAR WEAPONS AND 
BALLISTIC MISSILES. 
 
-  AT THAT MEETING, PRESIDENT PUTIN DISMISSED THESE CONCERNS, 
CLAIMING SAID THAT THERE WERE STRICT CONTROLS ON ALL DUAL-USE 
AND NON-CONVENTIONAL TECHNOLOGIES.  OUR INTELLIGENCE TELLS US 
OTHERWISE. 
 
-  WE FIND THE RECENT ANNOUNCEMENT OF INCREASED RUSSIAN SALES 
OF EQUIPMENT AND TECHNOLOGY TO ASSIST IRAN NUCLEAR POWER 
PROGRAM DISTURBING. 
 
-  AS YOU KNOW, STRICT CONTROL OF THE BUSHEHR FUEL CYCLE WAS 
A SUBJECT OF DETAILED DISCUSSION BETWEEN PRESIDENTS BUSH AND 
PUTIN IN KANANASKIS. 
 
-  THIS DEVELOPMENT THREATENS THE PROMISING NEW RAPPORT THAT 
HAS DEVELOPED BETWEEN THE US AND RUSSIA, AND BETWEEN 
PRESIDENTS BUSH AND PUTIN IN PARTICULAR.  RUSSIA'S PROPOSED 
INCREASED ASSISTANCE TO IRAN COULD WELL DERAIL THE PROGRESS 
MADE TOWARDS A COOPERATIVE AND CONSTRUCTIVE U.S.-RUSSIAN 
STRATEGIC RELATIONSHIP. 
 
-  WE HAVE CLEAR EVIDENCE THAT IRAN HAS SOUGHT TO USE THE 
COVER OF THE BUSHEHR POWER REACTOR PROJECT TO GAIN ACCESS TO 
EQUIPMENT, TECHNOLOGY AND EXPERTISE IN THE EXTENSIVE RUSSIAN 
                       CONFIDENTIAL 
 
PAGE 03        ROME  03855  02 OF 03  061129Z 
NUCLEAR INDUSTRY. 
 
-  WHEN HE NEXT MEETS WITH PUTIN, WE WOULD APPRECIATE IT IF 
THE PM COULD ONCE AGAIN EXPRESS IN THE STRONGEST TERMS OUR 
SHARED FEAR THAT IRAN HAS THE CAPABILITY OF USING THE 
TECHNOLOGY RUSSIA PLANS TO SELL TO IRAN TO ADVANCE ITS 
PROGRAM OF WEAPONS OF MASS DESTRUCTION. 
 
RUSSIA 
------ 
6. (C) ARAGONA STRESSED PM BERLUSCONI'S COMMITMENT TO 
BUILDING A NEW RELATIONSHIP WITH RUSSIA, BILATERALLY AND 
MULTILATERALLY.  HE POINTED OUT THAT THE RUSSIANS ARE NERVOUS 
ABOUT IMPROVED US MILITARY CAPABILITIES BECAUSE THEIR OWN 
CAPABILITIES ARE DECLINING RAPIDLY, BUT ARE UNCLEAR HOW TO 
PROCEED.  WHILE THE US STRATEGIC RELATIONSHIP WITH RUSSIA IS 
A BILATERAL CONCERN, ARAGONA WARNED THAT A SEVERE IMBALANCE 
BETWEEN RUSSIAN AND US CAPABILITIES, OR UNCERTAINTY ON 
RUSSIA'S PART, COULD IMPACT THE OVERALL SECURITY SITUATION. 
U/S BOLTON RESPONDED THAT COOPERATION ON MD WITHIN NATO AND 
THE NATO-RUSSIA COUNCIL SHOULD REASSURE RUSSIA, AND SHOULD 
ENCOURAGE RUSSIA TO MOVE TOWARD GREATER COOPERATION WITH THE 
WEST. 
 
7. (C) U/S BOLTON UNDERLINED THE INCREASING COMMON GROUND 
BETWEEN THE US AND RUSSIA, WHICH THE RECENT ANNOUNCEMENT ON 
IRAN THREATENS TO UPSET. UNDER THE NEW STRATEGIC FRAMEWORK, 
THE US RELATIONSHIP WITH RUSSIA IS FOCUSED ON STRATEGIC 
DEFENSIVE ISSUES, STRATEGIC OFFENSIVE ISSUES AND 
NON-PROLIFERATION, HE EXPLAINED.  THE TERMINATION OF THE ABM 
TREATY MAKES IT POSSIBLE TO SHARE SOME MISSILE TECHNOLOGY 
                       CONFIDENTIAL 
 
PAGE 04        ROME  03855  02 OF 03  061129Z 
WITH ALLIES AND RUSSIA, INCREASING THE LIKELIHOOD OF 
US-RUSSIA COOPERATION ON MISSILE DEFENSE.  TO ASSUAGE RUSSIAN 
CONCERNS ABOUT MD, U/S BOLTON SAID THE US IS PROVIDING 
GREATER TRANSPARENCY ON MD RESEARCH AND DEVELOPMENT AND IS 
LOOKING FOR WAYS TO WORK WITH RUSSIA AS THE PROGRAM DEVELOPS. 
 LAST WEEK, US OFFICIALS SHARED WITH RUSSIAN COUNTERPARTS 
MEASURES REQUIRED TO CEASE COOPERATION ON BALLISTIC MISSILES 
AND BIOLOGICAL, CHEMICAL AND NUCLEAR WEAPONS, AND ADVANCED 
CONVENTIONAL WEAPONS SALES TO IRAN, IN PART TO PERSUADE 
RUSSIA TO END SUCH COOPERATION, U/S BOLTON SAID.  DISCUSSIONS 
WITH THE RUSSIANS ARE SCHEDULED TO RESUME IN SEPTEMBER. 
 
MISSILE DEFENSE 
--------------- 
8. (C) ARAGONA AND DEPUTY NATIONAL ARMAMENTS DIRECTOR GENERAL 
FRATICELLI EMPHASIZED ITALY'S INTEREST IN PARTICIPATING IN 
ALL PHASES OF MISSILE DEVELOPMENT.  BERLUSCONI WAS AMONG THE 
FIRST TO SUPPORT THE PRESIDENT'S MD PROGRAM, AND THE GOI 
WANTS TO BE FULLY INVOLVED AT ALL STAGES, ARAGONA TOLD U/S 
BOLTON.  FRATICELLI ADDED THAT ITALY IS ALREADY PART OF THE 
MISSILE DEFENSE EFFORT AS A PARTNER WITH THE US AND GERMANY 
IN MEADS.  US DELEGATIONS VISITING ITALY AND NATO TO DISCUSS 
MD HAVE BEEN USEFUL, FRATICELLI SAID, BUT FURTHER DETAILS ARE 
NEEDED ON FINANCIAL IMPLICATIONS BEFORE ITALY CAN DETERMINE 
HOW BEST TO CONTRIBUTE.  ARAGONA WAS QUICK TO COUNTER THAT 
ITALY NEEDS TO ACT AS WELL AS TO DISCUSS IF IT WANTS TO BE AT 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ0018 
 
PAGE 01        ROME  03855  03 OF 03  061129Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AID-00   AMAD-00  ACQ-00   CIAE-00  INL-00 
      DOEE-00  PERC-00  SRPP-00  DS-00    EB-00    OIGO-00  VC-00 
      H-01     TEDE-00  INR-00   L-00     VCE-00   AC-01    NRRC-00 
      NSAE-00  OES-01   OMB-01   PA-00    PM-00    PRS-00   ACE-00 
      P-00     SCT-00   SP-00    IRM-00   SSO-00   SS-00    TRSE-00 
      T-00     USIE-00  DTC-00   EPAE-00  SSD-00   PMB-00   DSCC-00 
      PRM-00   DRL-02   G-00     NFAT-00  SAS-00   SWCI-00    /006W 
                  ------------------D52D8A  061130Z /38 
O 061126Z AUG 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC IMMEDIATE 5285 
INFO NATO EU COLLECTIVE PRIORITY 
AMEMBASSY BEIJING PRIORITY 
AMEMBASSY MOSCOW PRIORITY 
SECDEF WASHDC PRIORITY 
USCINCCENT MACDILL AFB FL PRIORITY 
USCINCEUR VAIHINGEN GE PRIORITY 
JOINT STAFF WASHDC PRIORITY 
NSC WASHDC PRIORITY 
 
C O N F I D E N T I A L SECTION 03 OF 03 ROME 003855 
 
SIPDIS 
 
NSC FOR KVOLKER/WANDRUSYSZYN 
 
E.O. 12958: DECL: 08/04/2012 
TAGS: PREL, PARM, MASS, MARR, IT 
SUBJECT: U/S BOLTON DISCUSSES NON-PROLIFERATION ISSUES WITH 
                       CONFIDENTIAL 
 
PAGE 02        ROME  03855  03 OF 03  061129Z 
SENIOR ITALIAN OFFICIALS 
 
THE TABLE WHEN INDUSTRIAL COOPERATION AGREEMENTS ARE READY 
FOR SIGNING. U/S BOLTON URGED THE GOI TO CONVEY TO THE USG 
ITS IDEAS ON HOW ITALY CAN PARTICIPATE, SUBSTANTIVELY AND 
PROCEDURALLY. 
 
9. (C) FRATICELLI RAISED THE POSSIBILITY OF USING THE RUSSIAN 
S300 SYSTEM AS PART OF AN MD PROGRAM. HE SAID THE RUSSIANS 
HAVE PUSHED TO HAVE THEIR SYSTEM, WHICH ALREADY EXISTS, USED 
AS THE FRAMEWORK FOR INCORPORATING OTHER SYSTEMS.  THIS 
WOULD, AT THE VERY LEAST, INVOLVE OVERCOMING RUSSIAN CONCERNS 
ABOUT THE US ACQUIRING RUSSIAN TECHNOLOGY, U/S BOLTON POINTED 
OUT, BUT IN GENERAL THE US SEES NO LIMITS TO RUSSIAN 
PARTICIPATION.  THE RECENTLY CREATED CONSULTATIVE GROUP ON 
STRATEGIC STABILITY, CONSISTING OF RUSSIAN AND US FOREIGN AND 
DEFENSE MINISTERS, WOULD HOLD ITS FIRST MEETING ON SEPTEMBER 
20 TO LOOK AT AREAS FOR MD COOPERATION, HE SAID. 
 
GLOBAL PARTNERSHIP 
------------------ 
10. (C) ARAGONA NOTED GOOD PROGRESS WITH THE RUSSIAN'S ON THE 
GLOBAL PARTNERSHIP PLAN.  MINISTER TREZZA PLANS TO MEET WITH 
THE RUSSIAN DIRECTOR OF ARMS CONTROL AFTER THE AUGUST BREAK 
TO DISCUSS CONCRETE PROJECTS, SUCH AS IN THE CHEMICAL, 
NUCLEAR AND SUBMARINE AREAS, HE SAID.  ARAGONA CONFIRMED THAT 
THE GOI IS READY TO COMMIT UP TO EURO 1 BILLION TO THE 10 10 
OVER 10 PLAN -- BOTH TO FURTHER ARMS CONTROL OBJECTIVES AND 
TO HELP ITALIAN INDUSTRY.  ITALY WOULD WELCOME US SUGGESTIONS 
ON SOLID PROJECTS WORTHY OF FUNDING, HE ADDED, AS WELL AS 
WAYS TO JOIN FORCES AND POOL RESOURCES WITH PARTNERS.  U/S 
                       CONFIDENTIAL 
 
PAGE 03        ROME  03855  03 OF 03  061129Z 
BOLTON POINTED OUT THAT RUSSIAN OFFICIALS FOCUSED ON DEBT 
RELIEF CAN SOMETIMES FRUSTRATE EFFORTS TO REDUCE RUSSIA'S WMD 
STOCKPILE; IT WAS A DISCONNECT BETWEEN RUSSIAN ECONOMIC 
POLICY AND RUSSIAN NATIONAL SECURITY POLICY.  A G8 MEETING 
SCHEDULED FOR SEPTEMBER 26-27 TO AGREE ON NEXT STEPS WOULD BE 
A GOOD OPPORTUNITY TO MAINTAIN MOMENTUM AND KEEP COMMITMENTS 
MADE AT KANANASKIS ON TRACK, HE SAID. 
 
CHINA 
----- 
11. (C) FRATICELLI RAISED THE CHINA CARD, NOTING THAT USG 
CONCERNS AND EXPORT CONTROLS HAD LED TO EXPENSIVE PROBLEMS 
FOR ITALIAN INDUSTRIES.  U/S BOLTON SAID THE USG IS REVIEWING 
ITS LICENSING PROGRAM IN GENERAL TO MAKE IT MORE EFFECTIVE. 
WITH REGARD TO CHINA, HE EXPLAINED THAT THE US IS STILL 
WAITING FOR CHINA TO PROMULGATE AND ENFORCE A SYSTEM OF 
EXPORT CONTROLS FOR BALLISTIC MISSILES, AS CALLED FOR UNDER A 
NOVEMBER 2000 AGREEMENT.  CHINA SAYS IT AGREES THAT 
PROLIFERATION IS A PROBLEM AT THE SAME TIME THAT IT IS 
SELLING SENSITIVE ITEMS TO PAKISTAN, IRAN, IRAQ AND NORTH 
KOREA.  THE MEETING BETWEEN SECRETARY POWELL AND THE CHINESE 
FM MAY GIVE SOME INSIGHT INTO CHINA'S ACTIONS, U/S BOLTON 
SAID.  HE ASSURED THE ITALIANS THAT THE US IS EAGER TO 
DISCUSS USG CONCERNS ABOUT CHINA IN MORE DETAIL, EITHER IN 
ROME OR IN WASHINGTON.  ARAGONA AGREED THAT SUCH 
CONSULTATIONS SHOULD TAKE PLACE BEFORE THE END OF THE YEAR, 
WITH REPRESENTATIVES FROM MFA, MOD AND OTHER RELEVANT 
MINISTRIES. 
 
BWC 
--- 
                       CONFIDENTIAL 
 
PAGE 04        ROME  03855  03 OF 03  061129Z 
12. (C)  PROMPTED BY A QUESTION FROM MINISTER ARAGONA, U/S 
BOLTON EXPLAINED THAT NONCOMPLIANCE WAS THE PRIMARY CONCERN 
BEHIND THE BUSH ADMINISTRATION'S DECISION NOT TO SUPPORT THE 
BIOLOGICAL WEAPONS CONVENTION PROTOCOL.  EVERY AGENCY 
CONSULTED DURING AN INTERAGENCY REVIEW LAST YEAR HAD 
CONCLUDED THAT IT WASN'T IN THE US INTEREST TO ADOPT THE 
PROTOCOL.  IN ADDITION, THE NATURE OF BW RESEARCH AND 
DEVELOPMENT MADE IT EASY TO FRUSTRATE INSPECTIONS, AND 
INFORMATION GATHERED DURING INSPECTIONS COULD THEN BE USED TO 
DEFEAT US DEFENSES, U/S BOLTON NOTED.  THE US RESPONSE ALSO 
REFLECTED CONCERNS EXPRESSED BY US BIOTECH AND PHARMOLOGICAL 
COMPANIES WORRIED ABOUT VULNERABLE INTELLECTUAL PROPERTY 
RIGHTS. FINALLY, PROVISIONS IN THE PROTOCOL COULD HAVE 
WEAKENED THE AUSTRALIA GROUP AND OTHER MULTILATERAL EFFORTS 
TO PREVENT THE EXPORT OF DUAL USE EQUIPMENT.  THE USG 
PRESENTED ALTERNATIVES TO THE PROTOCOL LAST FALL, HE ADDED, 
MANY OF WHICH HAVE GARNERED INTERNATIONAL SUPPORT. 
 
13. (U) U/S BOLTON HAS CLEARED THIS CABLE. 
SEMBLER 
 
                       CONFIDENTIAL 
 
> 
 2002ROME03855 - Classification: CONFIDENTIAL