US embassy cable - 02ROME6098

C O N F I D E N T I A L ROME 006098 
 
SIPDIS 
 
E.O. 12958: DECL: 12/20/2007 
TAGS: ETTC, PREL, IR, IT, EXPORT CONTROLS 
SUBJECT: GOI INQUIRY ON HELICOPTER PARTS SALE TO IRAN 
 
 
CLASSIFIED BY: ACTING DEPUTY CHIEF OF MISSION JOHN DWYER 
FOR REASONS 1.5 (B) (D) 
 
1.  (C)   AT THE END OF A DECEMBER 13 MEETING WITH A/DCM ON A 
SEPARATE ISSUE, BERLUSCONI FOREIGN POLICY ADVISOR GIANPAOLO 
SCARANTE REQUESTED "INFORMAL" USG VIEWS ON THE POSSIBLE 
RENEWAL OF A LONG-FROZEN SALE OF AGUSTA HELICOPTER PARTS TO 
IRAN, CURRENTLY UNDER REVIEW WITHIN THE GOI. 
 
2.  (C)    ACCORDING TO SCARANTE, IN 1993 THE ITALIAN 
GOVERNMENT FROZE AGUSTA'S $25 MILLION CONTRACT TO DELIVER 
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HELICOPTER SPARE PARTS TO THE IRANIAN GOVERNMENT.  THE LEGAL 
BASIS FOR THAT ACTION, HE SAID, WAS THE UNCHR RESOLUTION ON 
IRAN IN EFFECT AT THAT TIME.  IN THE YEARS THAT FOLLOWED, AS 
LONG AS SUCH A RESOLUTION REMAINED IN EFFECT, THE GOI WAS 
ABLE TO MAINTAIN ITS FREEZE ON THE SALE.  WITHOUT A UNCHR 
RESOLUTION ON IRAN THIS YEAR, HOWEVER, SCARANTE SAID THE GOI 
HAD TO REVIEW WHETHER IT COULD CONTINUE TO HOLD UP DELIVERY 
OF THE SPARE PARTS.  IN THIS CONTEXT, HE SAID HE WOULD 
APPRECIATE A "LOW-KEYED, INFORMAL" USG VIEW ON ITALY'S 
LETTING THIS SALE GO FORWARD. 
 
3.  (C)  ON DECEMBER 18, ECMIN PHONED SCARANTE TO CONVEY THAT 
THE USG WOULD NOT/NOT FAVOR ITALY'S ALLOWING THE PARTS TO BE 
DELIVERED.  HE REMINDED SCARANTE THAT THE LONG-STANDING U.S. 
EMBARGO OF MOST ECONOMIC AND FINANCIAL TRANSACTIONS WITH IRAN 
REFLECTS OUR CONTINUED STRONG CONCERN WITH IRAN'S PURSUIT OF 
WMD AND BALLISTIC MISSILES, CONTINUING HUMAN RIGHTS 
VIOLATIONS, SUPPORT FOR INTERNATIONAL TERRORISM, AND 
UNHELPFUL ACTIONS VIS-A-VIS AFGHANISTAN AND MIDDLE EAST 
PEACE.  WE LIKEWISE STRONGLY ENCOURAGED OTHER COUNTRIES TO 
LIMIT THEIR TRADE WITH IRAN.  ECMIN ALSO URGED THE GOI TO 
EXAMINE THE SALE CLOSELY IN THE CONTEXT OF ITALY'S 
OBLIGATIONS UNDER THE WASSENAAR ARRANGEMENT. 
 
4.  (C)  SCARANTE, WITHOUT ARGUING ANY OF THE ABOVE POINTS, 
REITERATED THAT THE AGUSTA SALE WAS SIMPLY UNDER GOI REVIEW 
AT THE PRESENT TIME, AND THAT USG VIEWS WOULD BE "AN 
IMPORTANT FACTOR" IN THAT REVIEW.  ECMIN EXPRESSED 
APPRECIATION FOR SCARANTE'S HAVING CONTACTED THE U.S. 
EMBASSY, AND URGED THAT THE GOI OFFER US THE OPPORTUNITY TO 
CONSULT MORE FORMALLY IF THERE WAS ANY SERIOUS CHANCE THAT 
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THE FREEZE MIGHT BE LIFTED.  SCARANTE INDICATED THAT THE GOI 
WOULD STAY IN TOUCH. 
 
SEMBLER 
 
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 2002ROME06098 - Classification: CONFIDENTIAL