US embassy cable - 03ROME505

C O N F I D E N T I A L SECTION 01 OF 02 ROME 000505 
 
SIPDIS 
 
STATE PASS USTR 
USDOC FOR 4212/MAC/OEURA/DDEFALCO 
 
E.O. 12958: DECL: 1.6X1 
TAGS: ETRD, IT, SENV, TPHY, EUN 
SUBJECT: ENVIRONMENTAL FIASCOS AND ITALY'S EU CHEMICALS 
POLICY 
 
REF: 02 ROME 3755 
 
CLASSIFIED BY ECONOMIC MINISTER-COUNSELOR SCOTT KILNER 
FOR REASONS 1.5 (B)(D). 
 
1. (C)  SUMMARY AND RECOMMENDED ACTION. ON JAN. 17 EIGHTEEN 
DIRECTORS AND SENIOR PLANT MANAGERS AT THE ENICHEM 
PETROCHEMICAL COMPLEX IN PRIOLO (SICILY) WERE ARRESTED FOR 
ALLOWING LONG-TERM SEA DUMPING OF INCINERATED ASH CONTAINING 
HEAVY METALS WITH DRAMATICALLY HIGH MERCURY LEVELS.  THE 
DUMPING IS LINKED TO HUNDREDS OF BIRTH DEFECTS IN CHILDREN 
BORN OVER THE LAST TEN YEARS IN THE 60,000-PERSON COMMUNITY, 
WHICH DEPENDS ON THE PLANT FOR ITS ECONOMIC LIVELIHOOD. 
MAJOR PETROCHEMICAL PLANTS IN ITALY -- IN BRINDISI, PRIOLO, 
AND PORTO MARGHERA IN THE NORTH -- ARE AGING OPERATIONS. 
WHILE GOVERNMENT AND NGO SCRUTINY IS INCREASING, THE SECRECY 
SURROUNDING CHEMICAL PLANT OPERATIONS, A LONG TRADITION OF 
ECONOMIC DEPENDENCE ON THESE PLANTS, AND PROBLEMATIC 
ENVIRONMENTAL LEGACIES, AS WELL AS THESE PLANTS' SHEER AGE, 
MAY TIP PUBLIC DEBATE IN ITALY ON A NEW EU CHEMICALS POLICY 
IN FAVOR OF MORE RATHER THAN LESS REGULATION.  ITALY'S 
MINISTRY OF ENVIRONMENT HAS INDICATED THAT WORK ON THE NEW 
CHEMICALS POLICY IS LIKELY TO BE A TOPIC OF ITS EU PRESIDENCY 
WORK.  U.S. COMMERCIAL INTERESTS ARE DIRECTLY ENGAGED, WITH 
DOW BEING THE SECOND LARGEST CHEMICAL COMPANY IN ITALY.  POST 
REQUESTS A MID-SPRING VISIT BY USG OFFICIALS RESPONSIBLE FOR 
CHEMICALS REGULATION IN THE U.S. TO MEET WITH GOI OFFICIALS, 
INDUSTRY ORGANIZATIONS, AND ENVIRONMENTAL NGOS.  END SUMMARY 
AND RECOMMENDED ACTION. 
 
-------------------------------------------- 
"WORST PRACTICES" -- ITALY'S CHEMICAL PLANTS 
-------------------------------------------- 
 
2. (U)  ESTCOUNS AND MILAN ECONOFF WERE VISITING DOW OFFICES 
IN MILAN WHEN THEY HEARD THE NEWS ABOUT PRIOLO, A LARGE 
INTEGRATED PETROCHEMICAL PLANT BUILT BY ENICHEM IN THE EARLY 
1960S, WHEN THE COMPANY WAS OWNED BY THE ITALIAN GOVERNMENT. 
PRIOLO TODAY IS IN THE HANDS OF SEVERAL OWNERS, INCLUDING 
POLIMERI EUROPA AND DOW, AND REMAINS ONE OF LARGEST 
PRODUCTION SITES FOR POLYETHYLENE SHEET IN EUROPE, WITH LARGE 
SCALE EXPORTS.  ON JANUARY 17, EVERY MAJOR ITALIAN DAILY 
REPORTED THE ARREST OF EIGHTEEN SENIOR COMPANY OFFICIALS WHO 
WERE CHARGED WITH IMPROPER SEPARATION OF HAZARDOUS WASTES, 
WHICH WERE MIXED AND DISPOSED ALONG WITH NONHAZARDOUS WASTE 
STREAMS.  THE ARRESTS FOLLOWED MORE THAN A YEAR OF 
INVESTIGATIVE WORK BY LOCAL AUTHORITIES. ENVIRONMENTAL 
MONITORING OF WATER SAMPLES AND SEDIMENT NEAR THE PLANT 
OUTFALLS INDICATED A MERCURY LEVEL MORE THAN 20,000 TIMES THE 
ALLOWABLE LIMIT.  FOLLOWING THE ARRESTS, THE MINISTER OF 
ENVIRONMENT ANNOUNCED AN INVESTIGATION AND CALLED FOR THE 
SEVEREST PUNISHMENT UNDER THE LAW FOR THOSE DEMONSTRATED TO 
BE IN VIOLATION OF THE LAW. THE ENTIRE PRODUCTION SITE, 
INCLUDING DOW'S OPERATION (ACQUIRED FROM ENICHEM), WAS CLOSED 
ON JANUARY 18.  CIVIL SUITS IN ADDITION TO THE CRIMINAL 
INVESTIGATION ARE BEING FILED. 
 
3. (SBU) ESTCOUNS HAD EARLIER VISITED THE PRIOLO SITE AND THE 
POLIMERI EUROPA AND DOW OFFICES IN JULY OF 2002, AND WAS 
STRUCK BY THE AGE OF THE CRACKING PLANT OPERATION AND BY THE 
EXTREME SECURITY CONTROLS AT THE SITE.   OFFICIALS AT 
POLIMERI EUROPA WERE RELUCTANT TO SHARE INFORMATION ABOUT 
THEIR OPERATIONS (SEE REFTEL).  DOW OFFICIALS WERE FAR MORE 
OPEN, STRESSING THE USE OF SOME INDUSTRIAL WASTE PRODUCTS AS 
FEED FOR OTHER OPERATIONS ON THE SAME COMPLEX, AND 
INFORMATION ABOUT THE SHARED ADVANCED WASTEWATER TREATMENT 
PLANT IN USE AND SCHEDULED FOR IMPROVEMENT. 
 
4. (SBU)  IN 2001, ESTCOUNS ALSO VISITED BRINDISI, WHERE THE 
COMBINATION OF PETROCHEMICAL PLANT, A LARGE COAL-FIRED POWER 
GENERATING PLANT, AND AN ACTIVE FERRY SERVICE ARE THE 
PRINCIPAL LANDSCAPE FEATURES OF THIS TOWN ON THE SOUTHERN 
ADRIATIC.  THE CHEMICAL OPERATIONS, OWNED AT THE TIME BY 
ENICHEM, BUT ACQUIRED LATER BY DOW, WERE ON A LARGE SITE WITH 
SEVERAL OPERATIONS CLOSED DUE TO SOIL CONTAMINATION AND 
ENVIRONMENTAL LEGACY PROBLEMS, INCLUDING CIVIL CASES BY 
FORMER WORKERS WHO ALLEGED CANCER AND OTHER SERIOUS ILLNESSES 
RESULTING FROM EXPOSURE TO TOXINS WHILE EMPLOYED ON THE SITE. 
 BECAUSE OF CHEMICAL PRODUCTION CONTAMINATION, TWO SITES A 
FEW KILOMETERS FROM THE CITY HAD BEEN DESIGNATED AS AMONG THE 
THIRTY MOST CONTAMINATED SITES IN ITALY. 
 
5. (C)  WHEN ESTCOUNS MET WITH THE MAYOR, THE ALDERMAN FOR 
ENVIRONMENT, AND ENGINEERING CONSULTANTS TO THE CITY, THEY 
EXPLAINED THAT THEY HAD BEEN AWARE OF HEALTH RISKS SINCE THE 
LATE 1970S, BUT THE SLOWNESS OF ENVIRONMENTAL LAWS, 
DIFFICULTIES OF MONITORING AND ENFORCEMENT, AND VEILED 
THREATS FROM ENICHEM TO SIMPLY CLOSE DOWN OPERATIONS IF THE 

ACTION EUR-00 
 
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      USIE-00  EPAE-00  ECA-00   PMB-00   DRL-01   G-00     SAS-00 


P 071246Z FEB 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 8067 
INFO EU MEMBER STATES COLLECTIVE 
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