US embassy cable - 02ROME4766

C O N F I D E N T I A L SECTION 01 OF 02 ROME 004766 
 
SIPDIS 
 
DEPT FOR OES/SAT/JULIE KARNER 
NATO PASS SES-4 FOR MELVIN FLACK 
USDOC PASS OFFICE OF SPACE COMMERCIALIZATION 
 
E.O. 12958: DECL: 09/17/2012 
TAGS: TSPA, TSPL, ECON, TSPL, ECON, EXPORT CONTROLS 
SUBJECT: GALILEO DISCUSSION WITH ALENIA'S VIRIGLIO 
 
REF: ROME 04292 
 
1.  (C) SUMMARY:  EST SECTION RECENTLY MET WITH GIUSEPPE 
VIRIGLIO, CEO FOR THE SPACE DIVISION OF ITALIAN AEROSPACE 
COMPANY ALENIA SPAZIO.  THE EUROPEAN GALILEO GLOBAL 
NAVIGATIONAL SATELLITE SYSTEM WAS DISCUSSED IN THE CONTEXT OF 
RECENT USG-GOI DISCUSSIONS ON GPS-GALILEO INTEROPERABILITY. 
VIRIGLIO PROVIDED SOME INTERESTING INSIGHTS INTO THE ITALIAN 
DECISIONMAKING PROCESS ON GALILEO, BUT HE ALSO RESPONDED IN A 
MUCH LESS SYMPATHETIC MANNER TO USG CONCERNS ABOUT THE 
OVERLAY OF ONE OF THE GPS MILITARY SIGNALS (M-CODE) BY THE 
PROPOSED GALILEO PUBLIC REGULATED SERVICE (PRS).  END SUMMARY. 
 
2.  (C) ESTOFFS BROACHED THE ISSUE OF GALILEO BY EXPRESSING 
THEIR REGRET THAT THE TIMING OF THE LATE JULY 2002 USG GPS 
DELEGATION VISIT (SUBJECT OF REFTEL) CONFLICTED WITH 
VIRIGLIO'S TRAVEL TO THE FARNBOROUGH AIR SHOW.  THEY BRIEFED 
VIRIGLIO ON THE GPS DELEGATION'S MESSAGE TO THE GOI ON USG 
POLICY TOWARD GPS-GALILEO COOPERATION.  IN PARTICULAR, 
ESTOFFS STRESSED THE USG'S OPPOSITION TO THE OVERLAY OF THE 
M-CODE BY PRS.  ALTHOUGH VIRIGLIO DID NOT SEEM TO HAVE AN 
INSTITUTIONAL STAKE IN PRS, HE DID NOT SEEM PARTICULARLY 
SYMPATHETIC TO USG CONCERNS ABOUT THE POTENTIAL RISKS TO NATO 
WARFIGHTING CAPABILITIES.  HE INTIMATED THAT FRANCE IS THE 
ONLY GALILEO PARTNER INSISTING ON OVERLAYING THE M-CODE, BUT 
HE ALSO EXPRESSED SOME SYMPATHY FOR THE VIEW THAT THE US 
SHOULD BE PREVENTED FROM BEING ABLE TO UNILATERALLY JAM PRS 
UNDER ANY CIRCUMSTANCE AND LARGELY DISMISSED USG ASSESSMENTS 
OF THE RISKS TO NATO. 
                       CONFIDENTIAL 
 
PAGE 03        ROME  04766  01 OF 02  021041Z 
 
3.  (C) WHEN ESTOFFS NOTED USG CONCERNS ABOUT THE POSSIBLE 
INCLUSION OF CHINA AS A NON-EUROPEAN PARTNER IN GALILEO, 
VIRIGLIO BECAME SOMEWHAT DEFENSIVE.  HE RESPONDED THAT THE 
EUROPEANS WERE FORCED TO SEEK NON-EUROPEAN CUSTOMERS, SUCH AS 
THE CHINESE, BECAUSE THE UNITED STATES, BY INSISTING THAT 
GALILEO SHOULD BE A CIVILIAN-USE ONLY SYSTEM, HAD DRASTICALLY 
REDUCED THE POOL OF POTENTIAL EUROPEAN INSTITUTIONAL USERS 
(THE VARIOUS EU MINISTRIES OF DEFENSE) THAT COULD CONTRIBUTE 
TO GALILEO DEVELOPMENT.  (EMBASSY COMMENT:  ESTOFFS VAINLY 
TRIED TO POINT OUT THE INACCURACIES IN VIRIGLIO'S DESCRIPTION 
OF THE EVOLUTION OF GALILEO AS A CIVILIAN-ONLY SYSTEM.  IT 
SEEMED TO BE MORE A CASE OF SELF-RATIONALIZATION.)  HE WAS 
UNMOVED BY ESTOFFS EFFORTS TO POINT OUT LEGITIMATE USG 
SECURITY CONCERNS BY THE POSSIBILITY OF CHINA DEVELOPING 
WEAPONS THAT COULD USE PRS FOR TARGETING. 
 
4.  (C) VIRIGLIO PROVIDED SOME INSIGHTS INTO THE ITALIAN 
DECISION-MAKING PROCESS ON GALILEO.  HE CONFIRMED THAT 
COUNSELOR RENATO LIBASSI, A SPECIAL ADVISOR TO THE MINISTER 
OF TRANSPORTATION, IS THE KEY GOI OFFICIAL FOR GALILEO, AS 
THE CHAIRMAN OF THE GOI'S INTERAGENCY WORKING GROUP ON 
GALILEO.  VIRIGLIO DESCRIBED LIBASSI AS HAVING THE MOST 
COMPREHENSIVE UNDERSTANDING OF GALILEO POLICY WITHIN THE GOI. 
 RATHER THAN BEING A POLICY-MAKER, HOWEVER, LIBASSI IS MORE 
OF COORDINATOR FOR THE ITALIAN GALILEO POLICY PROCESS. 
LIBASSI IS THE PRINCIPLE GOI INTERLOCUTOR WITH THE EUROPEAN 
COMMISSION (EC) AND THE OTHER GALILEO PARTNERS ON POLICY 
ISSUES, AND HE MAKES SURE THAT ALL THE RELEVANT GOI AGENCIES 
ARE ON THE SAME SHEET OF MUSIC FOR GALILEO POLICY.  THE 
ITALIAN SPACE AGENCY (ASI), HOWEVER, IS THE GOI FOCAL POINT 
                       CONFIDENTIAL 
 
PAGE 04        ROME  04766  01 OF 02  021041Z 
FOR GALILEO TECHNICAL ISSUES.  ACCORDING TO VIRIGLIO, GOI 
GALILEO POLICY IS ACTUALLY BEING DRIVEN BY ACTORS OUTSIDE OF 
ITALY, SPECIFICALLY FRANCE, THE EC AND THE EUROPEAN SPACE 
AGENCY (ESA), SINCE NO ONE AT THE MINISTERIAL LEVEL IN THE 
GOI IS TRULY ENGAGED AND UP TO DATE ON GALILEO.  LIBASSI 
MERELY ASSURES THAT THE GOI CONFORMS TO GALILEO POLICY ONCE 
IT HAS BEEN DECIDED IN BRUSSELS.  (EMBASSY COMMENT: 
VIRIGLIO'S DESCRIPTION OF THE ITALIAN DECISIONMAKING PROCESS 
ON GALILEO TRACKS WITH EMBASSY'S EXPERIENCE IN ENGAGING THE 
GOI ON U.S. CONCERNS REGARDING GALILEO.  IN PARTICULAR, WE 
HAVE NOTICED A RELUCTANCE ON THE PART OF LIBASSI AND MINISTRY 
OF FOREIGN AFFAIRS COUNSELOR ENRICO GUICCIARDI, OUR TWO 
PRINCIPAL GOI CONTACTS ON GALILEO POLICY, TO ENGAGE US IN 
SUBSTANTIVE DIALOGUE THAT WOULD ALLOW OUR CONCERNS TO BE 
FACTORED INTO GOI POLICY.  IN ADDITION, WE HAVE HAD DOUBTS 
ABOUT LIBASSI'S ROLE AS A DECISION-MAKER EVEN THOUGH HE IS 
THE GOI OFFICIAL WHO IS IN OVERALL CHARGE OF THIS ISSUE. 
HOWEVER, WE BELIEVE THAT VIRIGLIO DOWNPLAYED HIS OWN ROLE AS 
A KEY ACTOR IN GOI POLICY.  ALTHOUGH HE IS NOT A GOI 
OFFICIAL, HE ADMITTED THAT IN ITALY HE HAS THE MOST 
SUBSTANTIVE KNOWLEDGE OF GALILEO POLICY AND TECHNICAL ISSUES. 
 AS HEAD OF THE ITALIAN PRIME CONTRACTOR FOR GALILEO, HIS 
ROLE IN INFLUENCING AND SHAPING ITALIAN POLICY ON GALILEO 
SHOULD NOT BE UNDERESTIMATED.  WE SUSPECT THAT HE IS THE KEY 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ8565 
 
PAGE 01        ROME  04766  02 OF 02  021043Z 
ACTION OES-01 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   AMAD-00  CEA-01   CIAE-00 
      COME-00  CTME-00  INL-00   DODE-00  DOEE-00  DOTE-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   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     NFAT-00  SAS-00     /010W 
                  ------------------F02FFB  021043Z /38 
O 021009Z OCT 02 
FM AMEMBASS ROME 
TO SECSTATE WASHDC IMMEDIATE 6114 
NFO RUCNMEM/EU MEMBER STATES COLLECTIVE IMMEDIATE 
NATO EU COLLECTIVE IMMEDIATE 
AMCNSUL MILAN IMMEDIATE 9898 
USEU BRUSSELS IMEDIATE 2837 
USMISSION USNATO IMMEDIATE 230 
NASA WASHDC IMMEDIATE 
AMEMBASY BEIJING PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 02 ROME 004766 
 
SIPDIS 
 
DEPT FOR OES/SAT/JULIE KARNER 
NATO PASS SES-4 FOR MELVIN FLACK 
 
USDOC PASS OFFICE OF SPACE COMMERCIALIZATION 
 
E.O. 12958: DECL: 09/17/2012 
TAGS: TSPA, TSPL, ECON, IT 
                       CONFIDENTIAL 
 
PAGE 02        ROME  04766  02 OF 02  021043Z 
SUBJECT: GALILEO DISCUSSION WITH ALENIA'S VIRIGLIO 
 
PLAYER IN ITALIAN GALILEO POLICY AND THAT 
INDUSTRIAL-COMMERCIAL CONCERNS ARE THE FACTORS DRIVING GOI 
SUPPORT FOR GALILEO.  END COMMENT) 
SEMBLER 
 
                       CONFIDENTIAL 
 
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 2002ROME04766 - Classification: CONFIDENTIAL