US embassy cable - 03ROME3277

C O N F I D E N T I A L  ROME 003277 
 
SIPDIS 
 
 
DEPT FOR EB, OES/EGC, EUR/ERA,EUR/WE 
DEPT PLEASE PASS USDA FOR FAS/SIMMONS, BLUM, AND MACKE 
DEPT PLEASE PASS USDOC FOR 4212/ITA/OEURA/CPD/DEFALCO 
DEPT PLEASE PASS US EPA OPC STEPHEN JOHNSON 
DEPT PLEASE PASS USTR/NOUECCI 
 
E.O. 12958: DECL: 07/03/2013 
TAGS: ECON, SENV, TSPL, KSCA, EAID, PGOV, IT, EUN 
SUBJECT: AMBASSADOR RAISES CLIMATE CHANGE, EU CHEMICALS 
POLICY, AND BIOTECHNOLOGY WITH MINISTER OF ENVIRONMENT 
 
Classified By: Ambassador Mel Sembler for reasons 1.5 B and d. 
 
1. (C) Summary. Ambassador met Minister of Environment Altero 
Matteoli July 2 to discuss priority issues that might emerge 
during the Italian EU Presidency. Ambassador praised Italy's 
position on climate change and Kyoto, pointing out that PM 
Berlusconi had taken a significant political risk in 
promoting research cooperation with the U.S. at a time when 
most member states were critical of the President's decision 
to withdraw from the Kyoto protocol.  On the EU chemicals 
proposal (REACH), Matteoli said that industry would have to 
deal with environment ministries and their concerns, but the 
days were past when environment ministries were enemies of 
industry.  Matteoli added that he would include economic 
considerations in the Italian appproach. Despite strong 
representations from Ambassador on the need for strong 
science-based policy on biotechnology, Matteoli said the only 
solution for Italy would be found in a complex, step-by-step 
political process. He acknowledged the successful blocking 
role of Agriculture Minister Alemanno.  End summary. 
 
2. (U) Ambassador hosted Minister of Environment Altero 
Matteoli for lunch at the residence on July 2. Matteoli was 
accompanied by his diplomatic adviser, Gabrielle Sardo, and 
Director General for International Activities Corrado Clini. 
Ambassador was joined by ECMIN and EST Counselor. 
AMBASSADOR'S CALL FOR LEADERSHIP ON BIOTECH UNANSWERED 
 
3. (C) Ambassador contrasted the leadership shown by the GOI 
on climate change in 2001, when PM Berlusconi announced on 
the eve of the Genoa G-8 summit a new commitment to research 
cooperation with the U.S. outside of Kyoto, with the much 
slower GOI approach to biotechnology policy.  Matteoli 
replied that the biotechnology question was far more 
complicated politically than Kyoto, in large measure because 
the ideological convictions  of MINAG Alemanno made him less 
receptive to mediation efforts, even within Alleanza 
Nazionale (AN), the party of Alemanno and Matteoli. 
According to the Minister,  the only solutions possible for 
Italy will lie in slow and careful political moves. Matteoli 
dismissed the weight of scientific opinions, labelling 
scientists as outliers in the public debate.   Matteoli said 
that he had worked hard on the EU traceability and labeling 
proposals to keep at least an opening for biotechnology in 
Europe. While Alemanno might follow him one step, the 
Minister of Agriculture would not allow himself to be led 
very far on the issue.  Matteoli held out little hope of 
effective mediation with Alemanno even within AN, pointing 
out that the wings of the party were sharply divided on 
biotechnology policy.  He claimed that Alemanno's convictions 
were genuinely felt, and formed under the ideological 
mentorship of a strong rightwing leader, Pino Rauti, who was 
for a time Alemanno's father-in-law as well. 
 
4.  (C) Embassy comments: Although DG Clini floated the 
possibility of a "consultation" with the U.S. on 
biotechnology after the European Parliament votes on F&F and 
T&L July 2-3, we doubt we can get much leverage with the GOI, 
as EU President, through a meeting led by the MOE.  We 
continue to worry that Alemanno, a strong supporter of the 
coexistence language amending 01/018, will use this language 
to step over the Ministry of Environment and others in the 
GOI to exclude from Italy even those biotech products 
approved by the EU under the new directives and regulations. 
End comment. 
 
A BALANCED APPROACH ON CHEMICALS POLICY.... 
 
5. (C) REACH, the European Chemicals Policy, is still caught 
between the competencies of the Environment Council and the 
Competitiveness Council, according to Matteoli. The Minister 
observed that however the decision turns out, the chemicals 
industry will have to work with environment ministries. 
These ministries, he argued, are no longer a priori hostile 
to industry, but do have a responsibility to protect the 
public and the environment while simultaneously promoting 
economic growth.  Ambassador noted that U.S. companies had 
invested more than $2.5 billion in Italy, and that U.S. 
companies were concerned with the potential high costs of the 
REACH proposal. Matteoli said that a discussion of REACH at 
European level could take place during the Italian EU 
Presidency, but that the Irish Presidency would have to carry 
forward the work.  The Minister added that the record of the 
chemicals industry would make credible work on regulation 
 
 
more difficult in Italy, since state-owned industry had for 
years not only contributed to dangerous pollution, but had 
used the threat of job losses in negotiations with unions and 
local governmental authorities to delay the implementation of 
environmental safety rules. 
 
SOME CLIMATE CHANGE "BUSINESS" WITH THE RUSSIANS, THE EU, AND 
US... 
 
6.(C) Looking toward COP-9 of the U.N. Framework Convention 
on Climate Change(UNFCCC), to be hosted by the MOE in Milan 
in early December, the Ministry is preoccupied with what to 
do if Russia ratifies the Kyoto Protocol, and what to do if 
it does not. The EU, and Minister Matteoli in particular, has 
been in Moscow several times in recent months to explore the 
issue of Russian ratification. According to the Italians, 
talks have boiled down to the price per ton of carbon dioxide 
Russia could sell the EU to help the EU meet its targets. 
The Russians have reportedly opened at USD forty per ton, 
while the EU started at about USD five per ton. 
 
7.(C) If Russian ratification does not occur, and Kyoto does 
not come into force, the MOE may open during the Italian EU 
Presidency an internal EU dialogue on what to do next in the 
face of the EU and member state ratifications of the Protocol. 
 
8.(SBU) DG Clini confirmed decisions taken in Washington June 
17 to organize a bilateral energy meeting in Califiornia in 
September, and a side event at COP-9 to highlight the results 
of U.S.-Italy cooperation in climate change. Clini reiterated 
his hope that a twinning agreement could be struck between 
the region of Lombardia and the State of California on 
hydrogen technologies. 
 
AND FIRST STEPS TOWARD COOPERATION WITH THE DEVELOPING WORLD 
 
9.(U) Ambassador noted to the Minister our satisfaction with 
the new agreement on geospatial technologies and applications 
signed at the June 17-18 S&T bilaterals, and the agreement to 
work on geothermal projects in East Africa and to cooperate 
on environmental projects in Iraq.  Such partnerships can 
demonstrate to the developing world the seriousness with 
which both countries take environmental stewardship. 
 
10.(C) Embassy Comment. Matteoli began the luncheon 
conversation stiffly but warmed to the Ambassador's questions 
about coalition politics and its future, having some fun with 
key ministers like Bossi and Tremonti: the Finance Minister 
is reportedly the only coalition minister who will dine with 
Bossi. He spoke clearly to divisions within his own AN 
party--an internal division is 100 times worse than a 
controversy between parties, he opined.  The Minister is 
obviously more comfortable in the political arena, in which 
he characterizes himself as a mediator, than in technical 
discussions of even the major issues in his portfolio. 
Sembler 
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	2003ROME03277 - Classification: CONFIDENTIAL