US embassy cable - 02ROME5849

C O N F I D E N T I A L SECTION 01 OF 02 ROME 005849 
 
SIPDIS 
 
E.O. 12958: DECL: 12/04/2012 
TAGS: MARR, PREL, UP, MASS, PREL, UP, MASS, IT, ITMARR 
SUBJECT: UKRAINE - GOI TELLS KUCHMA TO SHAPE UP; WANTS TO 
KEEP LINES OF COMMUNICATION OPEN 
 
REF: ROME 4912 
 
CLASSIFIED BY: POLITICAL MINISTER-COUNSELOR TOM COUNTRYMAN 
 
1.  (C)  SUMMARY:  ON DECEMBER 2, RUSSIA/FSU OFFICE DIRECTOR 
                       CONFIDENTIAL 
 
PAGE 02        ROME  05849  01 OF 02  041727Z 
ROSA ANNA CONIGLIO TOLD POLOFF THAT THE NOVEMBER 26/27 VISIT 
OF UKRAINIAN PRESIDENT KUCHMA TO ITALY WAS CONSIDERED BY THE 
GOI TO HAVE BEEN A "GREAT SUCCESS."   KUCHMA HEARD A STRONG 
MESSAGE FROM ALL HIS ITALIAN INTERLOCUTORS ON THE KOLCHUGA 
RADAR ISSUE AND THE GENERAL NEGATIVE UKRAINIAN PERFORMANCE ON 
HUMAN RIGHTS.  AT THE SAME TIME, LINES OF COMMUNICATION TO 
THE GOU WERE KEPT OPEN, AND ITALY MADE PROGRESS WITH UKRAINE 
ON A NUMBER OF IMPORTANT BILATERAL ISSUES, SUCH AS ADOPTIONS 
AND BUSINESS TAXATION ISSUES.  THE GOI HAS OFFERED ITS 
SERVICES TO THE U.S. AS A MEDIATOR AND MESSAGE CARRIER TO THE 
GOU SHOULD WE DEEM IT USEFUL.  END SUMMARY. 
 
2.  (C)  CONIGLIO STARTED OFF WITH AN ACKNOWLEDGMENT THAT THE 
TIMING OF THE VISIT COULD NOT HAVE BEEN WORSE, GIVEN THE 
KOLCHUGA RADAR ISSUE AND NATO/OSCE/EU ATTEMPTS TO ISOLATE 
KUCHMA.  HOWEVER, SHE CONTINUED, WHILE KUCHMA'S TRIP WAS 
DOWNGRADED TO AN "OFFICIAL VISIT," IT WAS ORIGINALLY PLANNED 
AS A STATE VISIT IN THE BEGINNING OF 2001.  PRESIDENT 
CIAMPI'S AGENDA IS GENERALLY PLANNED TWO YEARS IN ADVANCE, 
PARTICULARLY FOR STATE VISITS.  THE GOI DECIDED TO GO AHEAD 
WITH THE VISIT BECAUSE IT HEARD NO OBJECTIONS FROM ALLIES AND 
THOUGHT THAT SOME GOOD COULD COME FROM DIALOGUE WITH KUCHMA. 
THERE HAD ALSO BEEN TWO STATE VISITS TO UKRAINE BY ITALIAN 
PRESIDENTS SINCE UKRAINIAN INDEPENDENCE FROM THE SOVIET UNION 
 
3.  (C)  POLOFF ASSURED CONIGLIO THAT THE PRESS REPORTS 
(PARTICULARLY ITALIAN MEDIA) JUST PRIOR TO THE VISIT IMPLYING 
THAT THE GOI WAS THUMBING ITS NOSE AT THE ALLIES, ESPECIALLY 
THE U.S., BY HOSTING KUCHMA HAD NO USG SOURCE.  CONIGLIO WAS 
ALREADY AWARE THAT EMBASSY ROME HAD ASKED WASHINGTON SOME 
WEEKS PRIOR TO THE TRIP (REFTEL) WHETHER THE USG WANTED THE 
                       CONFIDENTIAL 
 
PAGE 03        ROME  05849  01 OF 02  041727Z 
TRIP CANCELED.  THE SPECIFIC POINTS WE HAD RECEIVED IN THE 
RESPONSE TO THE REQUEST HAD BEEN PASSED TO THE PRESIDENT'S 
OFFICE, AND HAD BEEN MADE PART OF CIAMPI'S AND PM 
BERLUSCONI'S TALKING POINTS.  CONIGLIO WAS RELIEVED TO HEAR 
THAT OUR OFFICIAL PUBLIC LINE, IF ASKED, WAS THAT THE USG 
KNEW ABOUT THE VISIT AND RAISED NO OBJECTIONS. 
 
4.  (C)  CONIGLIO SAID THAT IN ADDITION TO DOWNGRADING THE 
VISIT STATUS, THE GOI MADE CLEAR TO KUCHMA ITS DISPLEASURE 
WITH HIS REGIME'S ACTIVITIES BY POSTPONING A SIGNING CEREMONY 
FOR A NUMBER OF BILATERAL AGREEMENTS.  THE GOVERNMENTS HAD 
REACHED CLOSURE ON LANGUAGE FOR THE AGREEMENTS DURING THE 
VISIT, AND ITALY WILL EVENTUALLY SIGN BECAUSE THEY ARE 
IMPORTANT TO ITALIAN NATIONAL INTERESTS. HOWEVER, THERE WILL 
BE NO CEREMONY - THE ITALIAN AMBASSADOR IN KIEV WILL SIGN THE 
AGREEMENTS.  THE AGREEMENTS INCLUDE REGULATIONS ON ADOPTIONS 
OF UKRAINIAN CHILDREN BY ITALIAN PARENTS, AND REFORM OF 
DOUBLE-TAXATION LAWS PENALIZING SMALL/MEDIUM ITALIAN 
ENTERPRISES DOING BUSINESS IN UKRAINE. 
 
5.  (C)  KUCHMA MET WITH PRESIDENT CIAMPI, PM BERLUSCONI, 
SENATE PRESIDENT PERA AND CENTRAL BANK GOVERNOR FAZIO.  FM 
FRATTINI MET SEPARATELY WITH FM ZLENKO.  ACCORDING TO 
CONIGLIO, KUCHMA HEARD FROM ALL OF HIS INTERLOCUTORS THE 
FOLLOWING:  YOU MUST DISCLOSE, NOW, ALL OF THE FACTS 
REGARDING SALES/SHIPMENTS OF KOLCHUGA RADAR SYSTEMS, AND; YOU 
SAY YOU WANT CLOSER INTEGRATION OF UKRAINE WITH THE REST OF 
EUROPE, SO BACK UP YOUR WORDS WITH DEEDS.  PM BERLUSCONI 
EMPHASIZED TO KUCHMA THAT WHILE THERE HAD BEEN SOME PROGRESS, 
OVERALL KIEV'S RECORD ON IMPLEMENTATION OF COMMITMENTS TO 
INTERNATIONAL ORGANIZATIONS, MEDIA FREEDOM, AND TREATMENT OF 
                       CONFIDENTIAL 
 
PAGE 04        ROME  05849  01 OF 02  041727Z 
OPPOSITION POLITICAL PARTIES WAS ABYSMAL, AND NOT 
CHARACTERISTIC OF A REPRESENTATIONAL DEMOCRACY. 
 
6.  (C)  CONIGLIO SAID THAT THROUGHOUT HIS VISIT AND WITH ALL 
HIS INTERLOCUTORS, KUCHMA DENIED KNOWING ANYTHING ABOUT 
KOLCHUGA SALES TO IRAQ, AND SAID THAT THE RECORDINGS WERE A 
FABRICATION COMPOSED OF OTHER SPLICED TAPES.  FURTHER, 
CONTINUED KUCHMA, THESE SUSPECT TAPES WERE THE ONLY EVIDENCE 
AGAINST HIM.  KUCHMA SAID THAT UKRAINE HAD SOLD SOME SYSTEMS 
TO RUSSIA PRIOR TO 2000 AND TO CHINA IN 2002, BUT HE COULDN'T 
SAY WHERE THE SYSTEMS ARE NOW.  "YOU'LL HAVE TO ASK THE 
BUYERS, WE CAN'T TELL YOU" KUCHMA TOLD BERLUSCONI AND CIAMPI. 
 
7.  (C)  KUCHMA TOLD BERLUSCONI THAT "RICH, PRIVATE 
BUSINESSMEN OWNED 90 PERCENT OF THE MEDIA" AND THAT THEREFORE 
THERE COULD BE NO GOVERNMENT INFLUENCE.  HE ALSO COMPLAINED 
THAT HE WAS NOT SATISFIED WITH UKRAINE'S POLITICAL SYSTEM, 
SINCE THE PARLIAMENT BLOCKED MANY OF HIS ADMINISTRATION'S 
INITIATIVES, AND THEREFORE LITTLE WAS ACCOMPLISHED.  KUCHMA 
TOLD PERA THAT HE WANTED TO RESTRUCTURE THE GOU INTO A 
PARLIAMENTARY SYSTEM SIMILAR TO ITALY'S.  PERA AND KUCHMA 
AGREED TO AN "EXCHANGE OF EXPERTS" ON PARLIAMENTARY SYSTEMS 
TO STUDY POSSIBLE REFORMS IN KIEV. 
 
8.  (C)  CONIGLIO SAID THAT DURING HIS MEETING WITH FAZIO, 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ6116 
 
PAGE 01        ROME  05849  02 OF 02  041727Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CIAE-00  INL-00   DODE-00 
      DOEE-00  SRPP-00  DS-00    EAP-00   EB-00    FBIE-00  VC-00 
      H-01     TEDE-00  INR-00   LAB-01   L-00     VCE-00   M-00 
      AC-01    NSAE-00  OMB-01   PA-00    PM-00    PRS-00   ACE-00 
      P-00     SCT-00   SP-00    SSO-00   SS-00    TRSE-00  T-00 
      USIE-00  SA-00    DTC-00   PMB-00   DSCC-00  PRM-00   DRL-02 
      G-00     NFAT-00  SAS-00     /006W 
                  ------------------12A83B  041728Z /38 
O 041554Z DEC 02 
FM AMEMBASSY ROME 
TO AMEMBASSY KIEV IMMEDIATE 
SECSTATE WASHDC IMMEDIATE 7205 
INFO EUROPEAN POLITICAL COLLECTIVE PRIORITY 
NSC WASHDC PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 02 ROME 005849 
 
SIPDIS 
 
E.O. 12958: DECL: 12/04/2012 
TAGS: MARR, PREL, UP, MASS, IT 
SUBJECT: UKRAINE - GOI TELLS KUCHMA TO SHAPE UP; WANTS TO 
KEEP LINES OF COMMUNICATION OPEN 
 
KUCHMA COMPLAINED THAT  THE UKRAINE CENTRAL BANK WAS CREATED 
DURING THE SOVIET ERA AND STILL OPERATED ON THAT DESIGN. 
KUCHMA ASKED FOR, AND FAZIO AGREED TO PROVIDE, ASSISTANCE TO 
REFORM THE BANKING SYSTEM, TO INCLUDE FRAUD DETECTION AND 
PROTECTIONS AGAINST MONEY LAUNDERING.  CONIGLIO SPECULATED 
                       CONFIDENTIAL 
 
PAGE 02        ROME  05849  02 OF 02  041727Z 
THAT KUCHMA, WELL AWARE OF SIMILAR REFORMS UNDERWAY IN 
RUSSIA, DID NOT WANT KIEV TO FALL TOO FAR BEHIND MOSCOW IN 
THE EYES OF THE WTO, IMF, ETC. 
 
9.  (C)  CONIGLIO SAID THAT THE GOI'S VIEW WAS THAT THERE 
WERE SUFFICIENT SIGNS OF REFORM IN UKRAINE TO WARRANT 
CONTINUING COMMUNICATIONS BETWEEN ROME AND KIEV.  IN ADDITION 
TO THE INITIATIVES DESCRIBED ABOVE, CONIGLIO OFFERED THE 
GOI'S SERVICES AS MEDIATOR AND MESSAGE COURIER BETWEEN THE 
U.S. AND UKRAINE SHOULD WE THINK IT APPROPRIATE. 
 
10.  (C)  COMMENT:  THE GOI HAS ASSUMED THE ROLE OF 
INTERMEDIARY BEFORE, MOST RECENTLY CARRYING OUR MESSAGES TO 
PUTIN THROUGH BERLUSCONI ON IRAN DUAL-USE TECHNOLOGY 
TRANSFER.  IT SEEMS TO BE A ROLE BERLUSCONI ENJOYS AND ONE 
THAT POST RECOMMENDS WE HOLD IN RESERVE SHOULD WE WANT OUR 
OWN MESSAGES REINFORCED WITH THE GOU, OR THE POLITICAL 
SITUATION IN KIEV DETERIORATES TO THE POINT WHERE WE WOULD 
FIND IT MORE PRODUCTIVE TO TAKE BERLUSCONI UP ON HIS OFFER. 
 
SEMBLER 
 
                       CONFIDENTIAL 
 
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 2002ROME05849 - Classification: CONFIDENTIAL