US embassy cable - 02ROME4292

C O N F I D E N T I A L SECTION 01 OF 03 ROME 004292 
 
SIPDIS 
 
DEPT FOR OES/SAT/JULIE KARNER 
NATO PASS SES-4 FOR MELVIN FLACK 
USDOC PASS OFFICE OF SPACE COMMERCIALIZATION 
 
E.O. 12958: DECL: 08/11/2007 
TAGS: TSPA, TSPL, ECON, TSPL, ECON, TSPL, ECON, IT, ITTSPA, ITTSPA 
SUBJECT: GPS/GALILEO CONSULTATIONS IN ITALY 
                       CONFIDENTIAL 
 
PAGE 02        ROME  04292  01 OF 03  041407Z 
 
CLASSIFIED BY: ACTING ECONOMIC MINISTER COUNSELOR DAVID MULENEX FOR REA 
SONS 1.5 (B,D) 
 
1.  (C) SUMMARY:  DURING 23-24 JULY CONSULTATIONS IN ROME, 
ITALIAN GOVERNMENT REPRESENTATIVES PROVIDED A DIVERSE SET OF 
NUANCED RESPONSES TO US CONCERNS OVER THE POSSIBLE OVERLAY OF 
THE GPS M-CODE BY GALILEO PRS.  WHILE ITALIAN TECHNICAL 
EXPERTS WORKING ON GALILEO EXPRESSED SOME SYMPATHY TO US 
CONCERNS AND A WILLINGNESS TO RESOLVE THE ISSUE, THOSE 
OFFICIALS DEALING WITH GOI GALILEO POLICY RESPONDED IN A MORE 
AMBIGUOUS MANNER.  BUT EVEN THEY ACKNOWLEDGED USG CONCERNS, 
EVEN IF THEY WERE NONCOMMITTAL ON A WAY FORWARD TO FINDING A 
SOLUTION.  ALTHOUGH THE USG GPS DELEGATION MET WITH 
REPRESENTATIVES OF A VARIETY OF GOI AGENCIES, THE ITALIANS 
HAD CLEARLY COORDINATED THEIR POSITION AS A RESULT OF HAVING 
BEEN BRIEFED IN DETAIL ABOUT A DRAFT REPORT ON GPS-GALILEO 
INTERRELATIONSHIP PRODUCED BY AN AD HOC WORKING GROUP OF THE 
NATO C3 BOARD.  ON THE WHOLE, THE ITALIANS SEEM COMMITTED TO 
GPS-GALILEO INTEROPERABILITY, BUT IT IS UNCLEAR HOW THIS 
WILLINGNESS WILL TRANSLATE INTO ITALIAN ASSISTANCE IN 
ACHIEVING A FAVORABLE RESOLUTION OF THE M-CODE OVERLAY ISSUE. 
 END SUMMARY. 
 
3.  (SBU) OES/SAT JULIE KARNER AND USNATO DIRECTOR OF THE 
COMMUNICATIONS ELECTRONICS DIVISION MELVIN FLACK, ACCOMPANIED 
BY ESTOFF LORENZO MARTINI, MET WITH OFFICIALS OF THE ITALIAN 
MINISTRY OF FOREIGN AFFAIRS (MFA), THE ITALIAN MINISTRY OF 
TRANSPORTATION (MOT) AND THE ITALIAN SPACE AGENCY (ASI).  IN 
ALL THREE MEETINGS, THE US DELEGATION MADE IT CLEAR THAT THE 
USG IS NOT OPPOSED TO EUROPEAN DEVELOPMENT OF THE GALILEO 
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PAGE 03        ROME  04292  01 OF 03  041407Z 
GLOBAL NAVIGATIONAL SATELLITE SYSTEM (GNSS) IN PRINCIPLE BUT 
WISHES TO ASSURE THAT GPS AND GALILEO ARE FULLY INTEROPERABLE 
SO THAT GNSS CIVILIAN CONSUMERS OBTAIN THE BEST POSSIBLE 
SERVICE AT THE LOWEST PRICE.  YET, THE USG CAN NOT ACCEPT THE 
OVERLAY OF A PORTION OF THE U.S. GLOBAL POSITIONING SYSTEM 
(GPS) MILITARY SIGNAL (M-CODE) BY THE PROPOSED GALILEO 
PUBLICLY REGULATED SIGNAL (PRS) BECAUSE OF THE RISKS TO U.S. 
AND NATO MILITARY CAPABILITIES.  THE DELEGATION STRESSED THAT 
WHILE THE USG WAS EAGER TO COLLABORATE WITH THE EUROPEANS ON 
GALILEO INTEROPERABILITY, THE M-CODE OVERLAY ISSUE WOULD BE 
AN OBSTACLE TO FUTURE USG COOPERATION IF IT REMAINS 
UNRESOLVED.  MR. FLACK ANALYZED THE POTENTIAL DETRIMENTAL 
IMPACT TO NATO WAR-FIGHTING CAPABILITIES AND THE RISKS TO 
NATO TROOPS AS A RESULT OF AN M-CODE OVERLAY.  IN PARTICULAR, 
MR. FLACK EXPLAINED THE POTENTIAL HARM TO NATO OBJECTIVES AND 
PERSONNEL IF AN ADVERSARY OBTAINED THE CAPACITY TO USE 
GALILEO SIGNALS FOR ITS OWN WAR-FIGHTING CAPABILITIES. 
CONCERNS OVER THE ROBUSTNESS OF ENCRYPTION TO BE USED BY PRS 
AND THE POSSIBILITY OF A WIDE DISSEMINATION OF ACCESS TO PRS 
AMONG NON-GOVERNMENTAL USERS REPRESENT AN INHERENT RISK OF 
THE PROLIFERATION OF GNSS CAPABILITY TO POSSIBLE NATO 
ADVERSARIES.  BY OVERLAYING THE M-CODE, NATO FORCES WOULD 
DEGRADE THEIR ABILITY TO USE GNSS SIGNALS WHILE TRYING TO 
DENY PRS TO AN ADVERSARY IN THE THEATER OF OPERATIONS.  THE 
ALTERNATIVE, CHANGING THE PRS ENCRYPTION KEYS TO DENY ACCESS 
TO THE ADVERSARY, WOULD BE DEPENDENT ON NATO'S ABILITY TO 
OBTAIN A RAPID CONSENSUS FOR COOPERATION AMONG ALL THE 
MEMBERS OF THE EUROPEAN UNION (EU) AND THE EUROPEAN SPACE 
AGENCY (ESA), SOME OF WHOM ARE NOT NATO MEMBERS.  IN 
ADDITION, MS. KARNER EXPRESSED CONCERNS ABOUT THE EUROPEAN 
COMMITMENT TO INTEROPERABILITY, NOTING AN APPARENT EUROPEAN 
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PAGE 04        ROME  04292  01 OF 03  041407Z 
PREFERENCE TO PURSUING INDEPENDENCE RATHER THAN 
INTERDEPENDENCE IN THE AREAS OF TIMING, GEODESY AND SIGNAL 
STRUCTURE. 
 
4.  (SBU) AT THE MFA, THE DELEGATION MET WITH COUNSELOR 
ENRICO GUICCIARDI, HEAD OF SPACE COOPERATION AFFAIRS OF THE 
MFA'S DIRECTORATE OF ECONOMIC COOPERATION.  GUICCIARDI 
ACKNOWLEDGED THE USG'S CONCERNS BUT DID NOT ADDRESS THEM IN 
DETAIL, SHIELDING HIMSELF BEHIND HIS LACK OF TECHNICAL 
EXPERTISE.  HE BELIEVED THAT USG CONCERNS WERE SOMEWHAT 
PREMATURE SINCE GALILEO WAS AT SUCH AN EARLY STAGE OF 
DEVELOPMENT.  HE PROVIDED AN OVERVIEW OF THE JOINT 
UNDERTAKING BETWEEN ESA AND THE EU TO MANAGE THE PROGRAM. 
THE UNDERLYING THESIS OF HIS PRESENTATION WAS THAT THE M-CODE 
OVERLAY ISSUE COULD BE ADDRESSED COMPREHENSIVELY ONCE THE 
EUROPEANS HAD WORKED OUT ALL THE WRINKLES IN THE OPERATION OF 
THE JOINT UNDERTAKING.  WITHOUT PROVIDING A COMMITMENT, 
GUICCIARDI SEEMED AMENABLE TO FURTHER DISCUSSIONS ON THIS 
ISSUE BUT ADMITTED THAT HE WAS NOT THE KEY GOI DECISION-MAKER 
ON GALILEO. 
 
5.  (C) ON 24 JULY, THE DELEGATION MET WITH COUNSELOR RENATO 
LIBASSI, A SPECIAL ADVISOR TO THE MINISTER OF TRANSPORTATION 
AND THE CHAIRMAN OF THE GOI'S INTERAGENCY WORKING GROUP ON 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ5851 
 
PAGE 01        ROME  04292  02 OF 03  041408Z 
ACTION OES-01 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   AMAD-00  CEA-01   CIAE-00 
      CTME-00  INL-00   DODE-00  DOEE-00  DOTE-00  PERC-00  SRPP-00 
      EB-00    EUR-00   EXIM-01  E-00     FAAE-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   ITC-01   L-00     VCE-00   NASA-01 
      AC-01    NSAE-00  NSCE-00  OMB-01   OPIC-01  PM-00    ACE-00 
      SP-00    IRM-00   SSO-00   SS-00    STR-00   TRSE-00  T-00 
      USIE-00  EPAE-00  PMB-00   DRL-02   G-00     SAS-00     /011W 
                  ------------------E24E86  041412Z /38 
R 041346Z SEP 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 5691 
USDOC WASHDC 
USMISSION USNATO 
INFO EU INTEREST COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 004292 
 
SIPDIS 
 
DEPT FOR OES/SAT/JULIE KARNER 
NATO PASS SES-4 FOR MELVIN FLACK 
USDOC PASS OFFICE OF SPACE COMMERCIALIZATION 
 
E.O. 12958: DECL: 08/11/2007 
TAGS: TSPA, TSPL, ECON, IT 
SUBJECT: GPS/GALILEO CONSULTATIONS IN ITALY 
                       CONFIDENTIAL 
 
PAGE 02        ROME  04292  02 OF 03  041408Z 
 
GALILEO.  WHILE ACKNOWLEDGING THE US DELEGATION'S CONCERNS, 
LIBASSI DID NOT DIRECTLY ADDRESS THEIR MERITS.  INSTEAD, HE 
PROVIDED A NUANCED RESPONSE THAT REITERATED AN ITALIAN 
COMMITMENT TO AN OPEN US-EUROPEAN DIALOGUE WITH THE GOAL OF 
ACHIEVING GPS-GALILEO INTERDEPENDENCE WHILE MAINTAINING EU 
SOLIDARITY.  LIBASSI STRESSED THAT ITALY DID NOT WANT TO 
WEAKEN THE EUROPEAN COMMISSION (EC) BY PURSUING A SEPARATE 
GALILEO DIALOGUE WITH THE UNITED STATES AND THAT ITALY 
INTENDS TO GIVE ITS "FULL, LOYAL SUPPORT TO THE EC" IN THIS 
MATTER.  WHILE HE LEFT THE DOOR OPEN TO A NATO-EU DIALOGUE ON 
THE M-CODE OVERLAY ISSUE, HE INDICATED THAT THE US-EU 
NEGOTIATIONS SHOULD TAKE PRIMACY OVER ANY NATO-EU DISCUSSION. 
 ALTHOUGH HE DID NOT DISPUTE THE MERITS OF THE CONCERNS OF 
THE US OR OTHER NATO MEMBERS ON M-CODE OVERLAY, HE EXPRESSED 
A CONCERN ABOUT THE USE OF SECURITY ISSUES AS A COVER FOR 
COMMERCIAL OR POLITICAL OBJECTIVES.  SPECIFICALLY, LIBASSI 
DID NOT WANT TO SEE THE OVERLAY ISSUE USED BY UNNAMED EU 
MEMBER STATES TO USE THEIR DUAL MEMBERSHIP IN NATO AS A MEANS 
TO REOPEN AGREEMENTS THAT HAD BEEN CONCLUDED WITHIN THE EU 
TRANSPORT COUNCIL IN ORDER TO RENEGOTIATE BETTER TERMS. 
(EMBASSY COMMENT:  HE MAY HAVE BEEN REFERRING TO THE 
COMPETITION FROM GERMANY TO BE THE SITE OF THE FUTURE 
ADMINISTRATIVE SEAT OF GALILEO.  ALTHOUGH THE GERMANS WERE 
LATECOMERS IN JOINING GALILEO, THEY ARE AGGRESSIVELY SEEKING 
TO HAVE THE GALILEO HEADQUARTERS BASED IN GERMANY ACCORDING 
TO A AUGUST 21 CONVERSATION BETWEEN ESTOFF AND THE GERMAN 
EMBASSY COUNSELOR FOR SCIENCE AFFAIRS JEN-PETER VOSS 
(PROTECT).  GUICCIARDI MENTIONED ITALIAN-GERMAN FRICTION OVER 
THIS ISSUE BUT DID NOT GO INTO DETAIL.  END COMMENT)  HE 
CLAIMED THAT THERE WAS A "STRONG POLITICAL WILL" WITHIN THE 
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PAGE 03        ROME  04292  02 OF 03  041408Z 
EU TO COME TO TERMS WITH THE UNITED STATES OVER GALILEO AND 
IMPLIED THAT FULL US ENGAGEMENT IN GPS-GALILEO 
INTEROPERABILITY "MIGHT AFFECT DESIGN."  HE NOTED THAT THE 
EUROPEANS WILL LOOK VERY CAREFULLY AT THE ISSUES OF ACCESS 
CONTROL AND MANAGEMENT OF PRS ENCRYPTION.  ALTHOUGH HE 
CLAIMED NOT TO HAVE SEEN A COPY OF THE NATO C3 BOARD'S 
WORKING GROUP'S DRAFT REPORTON GPS-GALILEO 
INTERRELATIONSHIP, HE ADMITTED TOHAVING BEEN BRIEFED ON ITS 
CONTENTS. 
 
6.  (C)  LIBASSI MADE AN OFFHAND COMMENT REGARDING THE ROLE 
OF CHINA, WHICH ALLOWED THE US DELEGATION THE OPPORTUNITY TO 
ASK FOR CLARIFICATION ON THE NATURE OF CHINESE PARTICIPATION 
IN GALILEO THROUGH A PARTNERSHIP ARRANGEMENT WITH ESA. 
LIBASSI RESPONDED THAT THE ROLE OF ESA'S NON-EU COLLABORATORS 
SUCH AS CHINA COULD PLAY IN GALILEO HAD NOT BEEN DECIDED.  HE 
SEEMED TO UNDERSTAND THAT EXTENSIVE CHINESE PARTICIPATION IN 
GALILEO WOULD HEIGHTEN US CONCERNS OVER THE POTENTIAL OF 
NON-NATO COUNTRIES TO HAVE A DE FACTO VETO POWER OVER NATO 
DECISION-MAKING IN A CRISIS THROUGH PRS OVERLAY OF THE 
M-CODE.  IN ADDITION, HE MADE AN OBLIQUE COMMENT REGARDING 
"NATO BECOMING AN ASSISTANCE GROUP" OVER TIME.  IT WAS NOT 
CLEAR WHAT HE MEANT BY THIS STATEMENT, AND THE US DELEGATION 
DID NOT HAVE THE OPPORTUNITY TO PRESS HIM FOR CLARIFICATION. 
(EMBASSY COMMENT:  WE VIEW THIS STATEMENT TO REFLECT 
LIBASSI'S PERSONAL OPINION ONLY.  HE DOES NOT HAVE ANY 
COMPETENCY IN NATO AFFAIRS, SINCE HE DOES NOT HAVE ANY DIRECT 
ROLE IN ITALIAN NATO POLICYMAKING, NOR DOES HE SEEM TO HAVE 
ANY EXPERTISE IN THIS AREA.  END COMMENT.) 
 
7.  (C) AT ASI, THE DELEGATION MET WITH THE DIRECTOR OF 
                       CONFIDENTIAL 
 
PAGE 04        ROME  04292  02 OF 03  041408Z 
EXTERNAL RELATIONS, ROMEO PERNICE, AND THE TWO CHIEF ASI 
REPRESENTATIVES TO THE ESA AND EU TECHNICAL WORKING GROUPS ON 
GALILEO, DR. FRANCO MARCONICCHIO AND DR. FRANCO MARUCCI. 
MARCONICCHIO AND MARUCCI ARE DIRECTLY INVOLVED IN THE ITALIAN 
CONTRIBUTION TO THE TECHNICAL DEVELOPMENT OF GALILEO.  THIS 
DISCUSSION WAS MUCH MORE OPEN AND DIRECT WITH REGARD TO THE 
ITALIAN RESPONSE.  THE ASI REPRESENTATIVES, ON THE WHOLE, 
EXPRESSED A SINCERE DESIRE TO COOPERATE WITH THE UNITED 
STATES ON GPS-GALILEO INTEROPERABILITY.  MARCONICCHIO, IN 
PARTICULAR, ASKED IF IT WOULD BE POSSIBLE TO CONTINUE 
US-EUROPEAN TECHNICAL DISCUSSIONS ON THE NON-PRS GALILEO 
SERVICES AND SEPARATE THEM FROM THE M-CODE OVERLAY ISSUE. 
WHILE THE USG PLANS TO GO FORWARD WITH GPS-GALILEO TECHNICAL 
DISCUSSIONS, THE M-CODE OVERLAY ISSUE, IF IT REMAINS 
UNRESOLVED, WILL EVENTUALLY BECOME AN IMPEDIMENT TO FUTURE 
USG COOPERATION WITH GALILEO.  FROM ASI'S PERSPECTIVE, ON THE 
WHOLE, US-EUROPEAN TECHNICAL COOPERATION ON GPS-GALILEO ARE 
PROCEEDING IN THE RIGHT DIRECTION.  ASI IS COMMITTED TO 
COMPLETE INTEROPERABILITY WITH GPS AS BEING A FUNDAMENTAL 
GOAL IN THE DEVELOPMENT OF GALILEO.  THE ASI TEAM NOTED THAT 
A PRELIMINARY SYSTEM DESIGN REVIEW FOR GALILEO WAS COMPLETED 
THE WEEK OF 14-20 JULY 2002 BUT THE EXACT CAPABILITIES OF PRS 
HAD NOT YET BEEN DECIDED.  WHATEVER THEIR PERSONNEL 
PERCEPTIONS OF THE MERITS OF THE U.S. CONCERNS ABOUT THE 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ5852 
 
PAGE 01        ROME  04292  03 OF 03  041408Z 
ACTION OES-01 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   AMAD-00  CEA-01   CIAE-00 
      CTME-00  DODE-00  DOEE-00  DOTE-00  PERC-00  SRPP-00  EB-00 
      EUR-00   EXIM-01  E-00     FAAE-00  VC-00    FRB-00   H-01 
      TEDE-00  INR-00   ITC-01   L-00     VCE-00   NASA-01  AC-01 
      NSAE-00  NSCE-00  OMB-01   OPIC-01  PM-00    ACE-00   SP-00 
      IRM-00   SSO-00   SS-00    STR-00   TRSE-00  T-00     USIE-00 
      PMB-00   DRL-02   G-00     SAS-00     /011W 
                  ------------------E24E8A  041412Z /38 
R 041346Z SEP 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 5692 
USDOC WASHDC 
USMISSION USNATO 
INFO EU INTEREST COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 03 OF 03 ROME 004292 
 
SIPDIS 
 
DEPT FOR OES/SAT/JULIE KARNER 
NATO PASS SES-4 FOR MELVIN FLACK 
USDOC PASS OFFICE OF SPACE COMMERCIALIZATION 
 
E.O. 12958: DECL: 08/11/2007 
TAGS: TSPA, TSPL, ECON, IT 
SUBJECT: GPS/GALILEO CONSULTATIONS IN ITALY 
                       CONFIDENTIAL 
 
PAGE 02        ROME  04292  03 OF 03  041408Z 
 
RISKS OF THE M-CODE OVERLAY (MARUCCI SEEMED TO BE 
PARTICULARLY SKEPTICAL), THEY ALL ACKNOWLEDGED THAT THEY 
UNDERSTOOD THE SERIOUSNESS WITH WHICH THE UNITED STATES VIEWS 
THIS ISSUE.  THE ASI TEAM ALSO ADMITTED TO HAVING BEEN 
BRIEFED ON THE CONTENTS OF THE NATO C3 REPORT BEFORE THEIR 
MEETING WITH THE US DELEGATION. 
 
8.  (C) EMBASSY COMMENT:  THE ITALIANS WERE FAIRLY UNANIMOUS 
IN THEIR DESIRE TO CONTINUE A DIALOGUE WITH THE UNITED STATES 
WITH THE ULTIMATE GOAL OF REACHING A COMPREHENSIVE LEVEL OF 
INTEROPERABILITY BETWEEN GPS-GALILEO.  THE GOI DOES NOT SEEM 
TO HAVE A DEEPLY VESTED INTEREST IN PRS OVERLAYING THE GPS 
M-CODE ISSUE BUT DECLINED TO COMMIT OPENLY TO SEEKING A 
RESOLUTION OF THE ISSUE, OSTENSIBLY TO MAINTAIN EU UNITY. 
THE ASI TECHNICAL EXPERTS SEEMED TO BE THE MOST WILLING TO 
SEEK A RESOLUTION, WHICH SUGGESTS THAT THE DECISION TO 
OVERLAY THE M-CODE IS BEING DRIVEN BY POLITICAL RATHER THAN 
TECHNICAL CONSIDERATIONS, AT LEAST IN ITALY.  UNFORTUNATELY, 
IT WAS NOT POSSIBLE FOR THE DELEGATION TO MEET WITH 
REPRESENTATIVES OF THE ITALIAN MINISTRY OF DEFENSE, WHICH 
MIGHT HAVE A MORE VESTED INTEREST IN THE SANCTITY OF THE 
M-CODE.  END COMMENT. 
 
9.  (SBU)  OES/SAT JULIE KARNER CLEARED ON THIS MESSAGE. 
USNATO DIRECTOR OF THE COMMUNICATIONS ELECTRONICS DIVISION 
MELVIN FLACK WAS UNABLE TO COORDINATE ON THIS CABLE PRIOR TO 
ITS TRANSMISSION. 
SKODON 
 
                       CONFIDENTIAL 
 
PAGE 03        ROME  04292  03 OF 03  041408Z 
 
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 2002ROME04292 - Classification: CONFIDENTIAL