US embassy cable - 02ROME6137

C O N F I D E N T I A L ROME 006137 
 
SIPDIS 
 
C O R R E C T E D  - COPY (ADDED ADDRESSEE(S)) 
 
DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER 
DEPT FOR EUR 
DEPT FOR EB 
DEPT FOR OES 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958:  DECL: 12/24/2012 
TAGS: EAGR, ETRD, TBIO, KSCA, TSPL, PGOV, ETRD, TBIO, KSCA, TSPL, PGOV, ETRD, TBIO, KSCA, TSPL, PGOV, ETRD, TBIO, KSCA, TSPL, PGOV, ETRD, TBIO, KSCA, TSPL, PGOV, ETRD, TBIO, KSCA, TSPL, PGOV, IT, EUN, ITEAGR, EUN, ITEAGR, EUN, ITEAGR, EUN, ITEAGR, EUN, ITEAGR, EUN 
SUBJECT:  WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
                       CONFIDENTIAL 
 
 
PAGE 02        ROME  06137  01 OF 03  091117Z 
 
CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). 
 
1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND 
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS 
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON 
BIOTECHNOLOGY REMAINS ELUSIVE.  MINISTER OF AGRICULTURE 
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR 
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY 
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY 
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF 
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO 
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, 
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL 
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY 
OUGHT TO BE ON HIS RADAR SCREEN.  ABSENT SUCH PRESSURE FROM 
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, 
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW 
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE 
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON 
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI 
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU 
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE 
EMBASSY RECOMMENDATION PARA 14. 
 
BACKGROUND AND CURRENT SITUATION 
 
2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY 
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO 
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY 
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  01 OF 03  091117Z 
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING 
COUNTRIES.  IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME 
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL 
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND 
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002.  IN PARTICULAR, 
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS 
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO.  OTHER 
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE 
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL 
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT 
SIGNAL. 
 
3.  (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE 
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND 
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN 
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU 
CONSENSUS.  FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, 
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR 
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO 
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN 
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING 
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS 
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH 
MORE RESTRICTIVE MEMBER STATES. 
 
4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE 
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN 
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, 
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE 
EU.  ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY 
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED 
                       CONFIDENTIAL 
 
PAGE 04        ROME  06137  01 OF 03  091117Z 
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS.  THE 
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY 
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS 
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. 
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE 
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT 
(TAR), AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE 
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. 
 
5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE 
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO 
THE IMPORT OF SEEDS FOR PLANTING.  LATE IN DECEMBER 2001, THE 
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO 
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS.  WHEN THIS 
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO 
TOLERANCE.  IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE 
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF 
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE 
ANALYTICAL TOOLS.  ENVISIONED, HOWEVER, IS A DESIGNATION OF 
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, 
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY.  SUCH 
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY 
AND ELSEWHERE.  A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO 
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY 
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" 
 
                       CONFIDENTIAL 
 
> 
@@@OASYS@@@ 
 
                           CONFIDENTIAL     PTO2343 
 
PAGE 01        ROME  06137  01 OF 03  270952Z 
ACTION SSO-00 
 
INFO  LOG-00   AGRE-00  ANHR-00  EB-00    E-00     TEDE-00  SS-00 
      STR-00   SAS-00   (E-00     TEDE-00  SAS-00   )  /000W 
                  ------------------2104F5  070814Z /38 
P 270939Z DEC 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 7491 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137 
 
SIPDIS 
 
DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958: DECL: 12/24/2012 
TAGS: EAGR, ETRD, EUN, TBIO, KSCA, TSPL, PGOV, IT 
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
 
CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). 
 
1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND 
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS 
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON 
                       CONFIDENTIAL 
 
PAGE 02        ROME  06137  01 OF 03  270952Z 
BIOTECHNOLOGY REMAINS ELUSIVE.  MINISTER OF AGRICULTURE 
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR 
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY 
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY 
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF 
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO 
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, 
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL 
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY 
OUGHT TO BE ON HIS RADAR SCREEN.  ABSENT SUCH PRESSURE FROM 
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, 
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW 
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE 
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON 
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI 
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU 
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE 
EMBASSY RECOMMENDATION PARA 14. 
 
BACKGROUND AND CURRENT SITUATION 
 
2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY 
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO 
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY 
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN 
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING 
COUNTRIES.  IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME 
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL 
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND 
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002.  IN PARTICULAR, 
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  01 OF 03  270952Z 
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO.  OTHER 
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE 
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL 
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT 
SIGNAL. 
 
3.  (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE 
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND 
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN 
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU 
CONSENSUS.  FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, 
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR 
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO 
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN 
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING 
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS 
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH 
MORE RESTRICTIVE MEMBER STATES. 
 
4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE 
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN 
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, 
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE 
EU.  ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY 
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED 
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS.  THE 
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY 
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS 
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. 
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE 
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT 
                       CONFIDENTIAL 
 
PAGE 04        ROME  06137  01 OF 03  270952Z 
(TAR), AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE 
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. 
 
5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE 
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO 
THE IMPORT OF SEEDS FOR PLANTING.  LATE IN DECEMBER 2001, THE 
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO 
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS.  WHEN THIS 
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO 
TOLERANCE.  IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE 
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF 
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE 
ANALYTICAL TOOLS.  ENVISIONED, HOWEVER, IS A DESIGNATION OF 
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, 
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY.  SUCH 
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY 
AND ELSEWHERE.  A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO 
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY 
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ1948 
 
PAGE 01        ROME  06137  01 OF 03  091018Z 
ACTION SSO-00 
 
INFO  LOG-00   COR-01   AGRE-00  AMAD-00  ANHR-00  EB-00    EUR-00 
      E-00     TEDE-00  OES-00   SS-00    STR-00   T-00     SAS-00 
        /001W 
                  ------------------225B51  091019Z /38 
P 270939Z DEC 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 7491 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137 
 
SIPDIS 
 
C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) 
 
DEPT FOR U/S LARSON FROM AMBASSADOR SEMBLER 
DEPT FOR EUR 
DEPT FOR EB 
DEPT FOR OES 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958: DECL: 12/24/2012 
TAGS: EAGR, ETRD, EUN, TBIO, KSCA, TSPL, PGOV, IT 
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
                       CONFIDENTIAL 
 
PAGE 02        ROME  06137  01 OF 03  091018Z 
 
CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). 
 
1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND 
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS 
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON 
BIOTECHNOLOGY REMAINS ELUSIVE.  MINISTER OF AGRICULTURE 
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR 
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY 
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY 
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF 
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO 
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, 
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL 
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY 
OUGHT TO BE ON HIS RADAR SCREEN.  ABSENT SUCH PRESSURE FROM 
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, 
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW 
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE 
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON 
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI 
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU 
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE 
EMBASSY RECOMMENDATION PARA 14. 
 
BACKGROUND AND CURRENT SITUATION 
 
2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY 
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO 
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY 
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  01 OF 03  091018Z 
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING 
COUNTRIES.  IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME 
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL 
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND 
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002.  IN PARTICULAR, 
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS 
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO.  OTHER 
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE 
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL 
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT 
SIGNAL. 
 
3.  (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE 
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND 
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN 
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU 
CONSENSUS.  FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, 
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR 
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO 
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN 
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING 
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS 
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH 
MORE RESTRICTIVE MEMBER STATES. 
 
4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE 
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN 
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, 
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE 
EU.  ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY 
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED 
                       CONFIDENTIAL 
 
PAGE 04        ROME  06137  01 OF 03  091018Z 
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS.  THE 
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY 
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS 
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. 
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE 
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT 
(TAR), AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE 
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. 
 
5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE 
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO 
THE IMPORT OF SEEDS FOR PLANTING.  LATE IN DECEMBER 2001, THE 
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO 
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS.  WHEN THIS 
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO 
TOLERANCE.  IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE 
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF 
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE 
ANALYTICAL TOOLS.  ENVISIONED, HOWEVER, IS A DESIGNATION OF 
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, 
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY.  SUCH 
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY 
AND ELSEWHERE.  A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO 
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY 
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ2813 
 
PAGE 01        ROME  06137  02 OF 03  270952Z 
ACTION SSO-00 
 
INFO  LOG-00   AGRE-00  ANHR-00  EB-00    E-00     TEDE-00  SS-00 
      STR-00   SAS-00   (E-00     TEDE-00  SAS-00   )  /000W 
                  ------------------2104FE  070814Z /38 
P 270939Z DEC 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 7492 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137 
 
SIPDIS 
 
DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958: DECL: 12/24/2012 
TAGS: EAGR, ETRD, EUN, TBIO, KSCA, TSPL, PGOV, IT 
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
 
STANDARDS FOR SPRING PLANTING.  (SEE ROME 5743 FOR MORE.) 
 
6. (C) EMBASSY COMMENT.  WE CONTINUE TO BELIEVE THAT ALEMANNO 
WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE 
CAN.  UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE 
                       CONFIDENTIAL 
 
PAGE 02        ROME  06137  02 OF 03  270952Z 
PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH, 
ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE 
INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL 
AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END 
COMMENT. 
 
WHY DOESN'T BERLUSCONI TAKE CONTROL? 
 
7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE 
BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN 
ITALIAN POLICY, WHY HASN'T IT HAPPENED?  FOUR INTERLOCKING 
FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE 
BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE 
PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL 
U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK 
OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN 
SUPPORTING A POLICY CHANGE IN ITALY AND THE EU. 
 
8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER 
ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO 
HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY: 
ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY 
COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY 
IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT. 
BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM;  ABSENT 
SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED 
INACTION), HE WON'T.  ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY 
IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS 
ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL 
FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT 
THE EU LEVEL.  ALEMANNO HAS ALSO TAPPED INTO THE GREAT 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  02 OF 03  270952Z 
CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS 
THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY", 
"TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN 
PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS 
LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL 
TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE 
BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS. 
 
9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE 
COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC 
POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND 
DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION 
AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A 
BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER. 
PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE 
AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC 
INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY 
OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE 
PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO 
GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY. 
 
10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL 
US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP 
BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY. 
THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO 
COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN 
ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING 
STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ 
AND ELSEWHERE.  HOWEVER, THE CONSEQUENCE OF THIS LOGICAL 
RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A 
SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE.  EMBASSY 
                       CONFIDENTIAL 
 
PAGE 04        ROME  06137  02 OF 03  270952Z 
ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT 
CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY 
BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND 
INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS 
MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR 
SCREEN. 
 
11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY 
THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR 
QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN 
IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH. 
 WE SEE TWO POSSIBILITIES FOR DOING THIS: 
 
--CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU 
POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO 
INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN 
AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD; 
 
--CONVINCING THE PRIME MINISTER THAT THE U.S. WITH 
PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ1991 
 
PAGE 01        ROME  06137  02 OF 03  091033Z 
ACTION SSO-00 
 
INFO  LOG-00   COR-01   AGRE-00  AMAD-00  ANHR-00  EB-00    EUR-00 
      E-00     TEDE-00  OES-00   SS-00    STR-00   T-00     SAS-00 
        /001W 
                  ------------------225D2F  091033Z /38 
P 270939Z DEC 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 7492 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137 
 
SIPDIS 
 
C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) 
 
DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER 
DEPT FOR EUR 
DEPT FOR EB 
DEPT FOR OES 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958: DECL: 12/24/2012 
TAGS: EAGR, ETRD, EUN, TBIO, KSCA, TSPL, PGOV, IT 
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
                       CONFIDENTIAL 
 
PAGE 02        ROME  06137  02 OF 03  091033Z 
 
STANDARDS FOR SPRING PLANTING.  (SEE ROME 5743 FOR MORE.) 
 
6. (C) EMBASSY COMMENT.  WE CONTINUE TO BELIEVE THAT ALEMANNO 
WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE 
CAN.  UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE 
PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH, 
ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE 
INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL 
AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END 
COMMENT. 
 
WHY DOESN'T BERLUSCONI TAKE CONTROL? 
 
7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE 
BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN 
ITALIAN POLICY, WHY HASN'T IT HAPPENED?  FOUR INTERLOCKING 
FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE 
BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE 
PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL 
U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK 
OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN 
SUPPORTING A POLICY CHANGE IN ITALY AND THE EU. 
 
8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER 
ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO 
HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY: 
ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY 
COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY 
IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT. 
BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM;  ABSENT 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  02 OF 03  091033Z 
SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED 
INACTION), HE WON'T.  ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY 
IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS 
ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL 
FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT 
THE EU LEVEL.  ALEMANNO HAS ALSO TAPPED INTO THE GREAT 
CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS 
THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY", 
"TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN 
PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS 
LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL 
TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE 
BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS. 
 
9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE 
COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC 
POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND 
DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION 
AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A 
BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER. 
PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE 
AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC 
INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY 
OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE 
PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO 
GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY. 
 
10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL 
US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP 
BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY. 
THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO 
                       CONFIDENTIAL 
 
PAGE 04        ROME  06137  02 OF 03  091033Z 
COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN 
ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING 
STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ 
AND ELSEWHERE.  HOWEVER, THE CONSEQUENCE OF THIS LOGICAL 
RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A 
SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE.  EMBASSY 
ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT 
CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY 
BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND 
INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS 
MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR 
SCREEN. 
 
11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY 
THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR 
QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN 
IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH. 
 WE SEE TWO POSSIBILITIES FOR DOING THIS: 
 
      --CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU 
POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO 
INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN 
AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD; 
 
      --CONVINCING THE PRIME MINISTER THAT THE U.S. WITH 
PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ1997 
 
PAGE 01        ROME  06137  03 OF 03  091033Z 
ACTION SSO-00 
 
INFO  LOG-00   COR-01   AGRE-00  AMAD-00  ANHR-00  EB-00    EUR-00 
      E-00     TEDE-00  OES-00   SS-00    STR-00   T-00     SAS-00 
        /001W 
                  ------------------225D59  091033Z /38 
P 270939Z DEC 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 7493 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
 
C O N F I D E N T I A L SECTION 03 OF 03 ROME 006137 
 
SIPDIS 
 
C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) 
 
DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER 
DEPT FOR EUR 
DEPT FOR EB 
DEPT FOR OES 
STATE PASS TO USDA FAS WASHDC 
USDA FOR U/S PENN AND HEGWOOD 
STATE PASS USTR 
 
E.O. 12958: DECL: 12/24/2012 
TAGS: EAGR, ETRD, EUN, TBIO, KSCA, TSPL, PGOV, IT 
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH 
                       CONFIDENTIAL 
 
PAGE 02        ROME  06137  03 OF 03  091033Z 
 
ILLEGAL MORATORIUM, THEREBY CREATING AN OPENING FOR THE GOI 
TO LEAD EUROPE TO A SOLUTION THAT WOULD AVOID A FULL FLEDGED 
TRADE DISPUTE. 
 
THE U.S. AND THE EU -- TRADE AND TECHNOLOGY TRADEOFFS 
 
12. (C) TO MOVE THE GOI IN THE RIGHT DIRECTION ON BIOTECH 
WILL REQUIRE BOTH A TOP-DOWN STRATEGY SUPPORTED BY 
WASHINGTON, AND A BOTTOM-UP STRATEGY WITHIN ITALY.  WITH 
RESPECT TO THE LATTER, WE WILL CONTINUE OUR WORK WITH 
IMPORTANT CONSTITUENT GROUPS LIKE THE ACADEMIC COMMUNITY, 
FARMERS AND THEIR ASSOCIATIONS, CONSUMERS AND CONSUMER 
ORGANIZATIONS, EDUCATORS, AND THE MEDIA TO BETTER INFORM 
PUBLIC DEBATE AND GAIN WIDER RECOGNITION OF THE LOW RISKS AND 
HIGH BENEFITS OF BIOTECHNOLOGY FOR FARMERS AND CONSUMERS. 
ULTIMATELY, HOWEVER, BERLUSCONI HIMSELF MUST CROSS THE 
RUBICON, AND LEAVE HIS AG MINISTER BEHIND IF ALEMANNO CANNOT 
OR WILL NOT ACCEPT CHANGES IN ITALIAN POLICY.  THE TRICK WILL 
BE TO OVERRULE OR NEUTRALIZE ALEMANNO WITHOUT ALIENATING HIS 
SUPPORTERS OR FRACTURING HIS COALITION -- A DIFFICULT TASK IN 
A POLITICAL CULTURE BASED ON CONSENSUS. 
 
13. (C) WE CAN AT BEST CHANGE THE POLITICAL TERRAIN THE GOI 
LOOKS AT WHEN IT CONSIDERS THE ACCEPTABILITY OF POLICY 
CHANGE. COORDINATED EFFORT FROM WASHINGTON WILL BE REQUIRED 
IN THE MONTHS AHEAD IF WE ARE TO HAVE ANY CHANCE OF SECURING 
GOI LEADERSHIP ON BIOTECHNOLOGY DURING ITS EU PRESIDENCY. 
WE KNOW THAT THE PM IS CONCERNED ABOUT, AND WOULD LIKE TO 
AVOID, A WTO CASE ON HIS EU WATCH, AND THIS MAY GIVE US 
LEVERAGE ON THE ISSUE.  USEU HAS POINTED OUT THAT A WTO CASE 
                       CONFIDENTIAL 
 
PAGE 03        ROME  06137  03 OF 03  091033Z 
COULD GIVE ANTI-BIOTECH POLITICIANS IN MEMBER STATES LIKE 
ITALY THE OPPORTUNITY TO PROCLAIM THAT THE BIOTECHNOLOGY 
DEBATE HAS ALWAYS BEEN ABOUT GETTING U.S. PRODUCT INTO EU 
MARKETS, AND THAT ALL THE TALK ABOUT WISE DEPLOYMENT OF THE 
TECHNOLOGY WAS JUST A RUSE.  ON THE OTHER HAND, OUR PRINCIPAL 
CONTACT AT THE MINISTRY OF ENVIRONMENT HAS SUGGESTED THAT A 
WTO CASE MIGHT BE THE ONLY WAY TO RAISE THE ATTENTION OF EU 
MEMBER STATES.  THIS OFFICIAL FURTHER SUGGESTS THAT A WELL 
THOUGHT OUT CONSULTATIONS PERIOD COULD PROVE USEFUL IN ITALY 
BECAUSE IT WOULD ENGAGE THE FOREIGN AFFAIRS ELEMENTS OF THE 
ITALIAN GOVERNMENT IN THE PROBLEM.  VICE MINISTER OF FOREIGN 
TRADE URSO IS ALREADY EMERGING AS A VOCAL AND PUBLIC OPPONENT 
OF AG MINISTER ALEMANNO, AND A WTO "THEATER" MIGHT USEFULLY 
AMPLIFY HIS INFLUENCE. 
 
14. (C) EMBASSY RECOMMENDATION: WHETHER OR NOT WASHINGTON 
DECIDES TO PURSUE A CASE IN THE WTO, WE RECOMMEND TESTING THE 
LIMITS OF THE GOI'S ABILITY TO PLAY A CONSTRUCTIVE ROLE ON 
BIOTECH DURING ITS EU PRESIDENCY DURING THE SECOND HALF OF 
2003.  SPECIFICALLY, WE RECOMMEND A MARCH VISIT BY A HIGH 
LEVEL USTR-STATE-USDA TEAM TO RAISE THE PROFILE OF BIOTECH ON 
OUR BILATERAL AGENDA AND PRESS FOR IMPROVEMENTS IN 
LONGSTANDING IRRITANTS, SUCH AS THE AMATO DECREE, IN ADVANCE 
OF ITALY'S ASSUMING THE EU PRESIDENCY.  WE WERE TOLD BY THE 
MINISTRY OF ENVIRONMENT ON DECEMBER 4 THAT ITALY MAY HOLD A 
EUROPEAN LEVEL CONFERENCE ON BIOTECHNOLOGY DURING ITS 
PRESIDENCY, WHICH SUGGESTS A TIMELY USG VISIT COULD BE 
PRODUCTIVE. 
SEMBLER