US embassy cable - 03ROME2340

S E C R E T ROME 002340 
 
SIPDIS 
 
 
E.O. 12958: DECL: 05/23/2013 
TAGS: CH, ETTC, IR, IT, PREL, EXPORT CONTROLS 
SUBJECT: ALENIA-SPAZIO AND CHINA:  DELIVERY OF A/S 
BLOOMFIELD LETTER 
 
 
    REF: STATE 138499 
 
CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5 
(B) AND (D) 
 
1. (S) ECMIN, JOINED BY SCICOUNS, DELIVERED A/S BLOOMFIELD'S 
LETTER AND ACCOMPANYING NON-PAPER ON MAY 23 TO MFA DIRGEN FOR 
ECONOMIC AFFAIRS GIANDOMENICO MAGLIANO.  ECMIN NOTED THAT 
WASHINGTON OFFICIALS HAD APPRECIATED THE FEBRUARY APPROACH BY 
GOI AND ITALIAN INDUSTRY REPRESENTATIVES, AND THAT USG 
AGENCIES HAD REVIEWED THE PROPOSALS WITH GREAT CARE AND 
DELIBERATION.  A/S BLOOMFIELD'S LETTER REPRESENTED A 
CONSTRUCTIVE RESPONSE TO MOVE BEYOND PAST DISAGREEMENTS AND 
MISUNDERSTANDINGS AND TO INITIATE A COOPERATIVE DIALOGUE ON 
NON-PROLIFERATION CONCERNS.  SUCH A DIALOGUE COULD PAVE THE 
WAY TO ENHANCED DEFENSE INDUSTRIAL COOPERATION WITH ITALY. 
 
2.  (S)  ECMIN ALSO UNDERSCORED THAT WASHINGTON'S RESPONSE 
HAD BEEN FAVORABLY INFLUENCED BY HELPFUL ACTIONS TAKEN BY THE 
GOI ON SPECIFIC EXPORT CONTROL ISSUES OF CONCERN TO THE USG, 
SUCH AS THE DECISION TO HALT DELIVERY OF HIGH SPEED PATROL 
BOATS TO IRAN.  SUCH ACTIONS WERE VERY IMPORTANT TO FOSTER 
THE RIGHT ENVIRONMENT FOR POSITIVE BILATERAL DISCUSSIONS 
CONCERNING ALENIA AND CHINA.  FINALLY, ECMIN NOTED THAT THE 
USG WAS PREPARED TO MOVE FORWARD EXPEDITIOUSLY WITH AD HOC 
CONSULTATIONS, CONTINGENT ONLY ON GOI WRITTEN ASSURANCES THAT 
ALENIA'S TWO SATELLITE STUDIES FOR CHINA HAD CONCLUDED, AS WE 
HAD BEEN TOLD WAS THE CASE. 
 
3.  (S)  AFTER READING THE LETTER AND NON-PAPER, MAGLIANO 
OFFERED HIS PRELIMINARY REACTION THAT THEY DID REPRESENT A 
    POSITIVE STEP FORWARD.  HE DID NOT FORECAST DIFFICULTY IN 
PROVIDING THE REQUESTED WRITTEN ASSURANCES, BUT HE DID STRESS 
THAT HE WOULD HAVE TO CONSULT CLOSELY ON ALL POINTS BOTH 
WITHIN THE MFA AND WITH OTHER PARTS OF THE GOVERNMENT. 
 
4.  (S)  WITH RESPECT TO INITIATING AD HOC CONSULTATIONS, 
MAGLIANO SAID HE HAD ALREADY GIVEN SOME THOUGHT TO HOLDING A 
FIRST ROUND OF DISCUSSIONS IN JUNE.  IN THAT CONNECTION, HE 
ASKED WHAT ROLE WE ENVISIONED FOR INDUSTRY REPRESENTATIVES IN 
SUCH TALKS.  DRAWING UPON REFTEL PARA 5, ECMIN REPLIED THAT 
WE FELT THE CONSULTATIONS SHOULD INITIALLY BE HELD ON A 
GOVERNMENT-TO-GOVERNMENT BASIS, BUT THAT 
GOVERNMENT-TO-INDUSTRY TALKS MIGHT WELL BE A SENSIBLE 
SUBSEQUENT STEP.  MAGLIANO QUESTIONED HOW FAR DISCUSSIONS 
COULD PROCEED WITHOUT INVOLVING CONCERNED COMPANIES IN SOME 
WAY.  HE SUGGESTED THAT THE FIRST CONSULTATIONS INCLUDE AT 
LEAST TWO, BUT PREFERABLY THREE, SEPARATE SESSIONS:  1) 
GOVERNMENT OFFICIALS ONLY;  2) GOVT REPS PLUS OUTSIDE 
"INDEPENDENT" EXPERTS (I.E. FROM ACADEMIA OR NON-PROFIT 
TECHNICAL INSTITUTES);  3) GOVT PLUS INDUSTRY REPS.  ECMIN 
SAID HE WOULD CONVEY THIS SUGGESTION TO WASHINGTON. 
SKODON 
 
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 2003ROME02340 - Classification: SECRET