US embassy cable - 03ROME3360

UNCLAS  ROME 003360 
 
SIPDIS 
 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, PREL, PGOV, MOPS, IT, EUN 
SUBJECT: ITALY'S EU PRESIDENCY: U.S./EU TASK FORCE 
DISCUSSIONS 
 
1. (U) U.S., Commission and Council officials and 
representatives of the Italian EU Presidency discussed a wide 
range of subjects, from the U.S. Passenger Name Record and 
Container Security Initiatives to Europe's efforts to assist 
Africa, at the July 18th U.S./EU task force meeting in Rome. 
 
Task Force Participants 
----------------------- 
 
U.S. 
---- 
Chuck English, Director, Office of European Affairs, State 
Department 
Scott Kilner, Minister Counselor for Economic Affairs, U.S. 
Embassy Rome 
Steve Cristina, Economic Counselor, U.S. Mission to the 
European Union 
Marja Verloop, EU Desk Officer, State Department 
Kathleen Doherty, Economic Officer, U.S. Embassy Rome 
(notetaker) 
 
Italian Presidency 
------------------ 
Sandro De Bernardin, Task Force Coordinator, Ministry of 
Foreign Affairs 
Massimo Gaiani, Director, EU external relations division, MFA 
Andrea Sama, EU External Relations division, MFA 
 
Council Secretariat 
------------------- 
Jim Cloos 
Massimo Parnisari 
European Commission 
------------------- 
Percy Westerlund 
Luc Veron 
Luisa Ragher 
David Tirr 
Philippe Coessens (EU Delegation in Washington) 
 
Passenger Name Record (PNR) 
--------------------------- 
 
2. (SBU) Commission officials argued that the March 
U.S/Commission interim agreement was legally frail and, as 
such, was severely attacked by the European Parliament and 
Data Privacy Authorities (Article 29 Committee members). 
Although acknowledging that the U.S., in a good-faith effort, 
has taken several steps to address Commission and member 
states' concerns, the U.S. must do more, Commission officials 
remarked.  Key EU demands were highlighted in Bolkestein's 
June 16 letter to Secretary Ridge.  They included a 
limitation of USG use of PNR data to counter-terrorism, but 
not law enforcement; deletion of all PNR data defined as 
sensitive by EU Law once Customs and Border Police (CBP) and 
the Transportation Security Administration (TSA) receive it; 
provision of a system of passenger redress to an independent, 
non-USG body. Commission officials reiterated what 
Commissioner Patten recently told DHS Deputy Secretary Gordon 
England: agreement on PNR must be reached by end of July to 
avoid negative adequacy findings in September. The Italian 
Presidency underscored the political importance of this 
issue, domestically within EU member states and for all of 
the EU.  It is a question of compatibility of security 
demands with national laws and civil liberties, GOI officials 
contended. 
 
3. (SBU) English acknowledged that the talks between DepSec 
England and Patten revealed that fundamental differences 
still remain.  Addressing Bolkestein's questions, the U.S. is 
hopeful that there might be a way forward on the limitation 
of scope question.  The EU has proposed a scope of "terrorism 
and related crimes;" the U.S.' wording is terrorism and 
serious offenses.  U.S. Customs, by its charter as a law 
enforcement agency, can not ignore serious felonies such as 
murder and drug smuggling, English stated.  On sensitive 
data, the U.S. has moved much closer to the EU position and 
hopes fields for immediate deletion can be identified. 
Commission officials concurred. On the independent review 
question, the U.S. side pointed out that Nuala Kelly, Chief 
Privacy Officer, Department of Homeland Security, has an 
independent role and reports directly to both Secretary Ridge 
and to Congress, depending on the issue. Regarding Kelly, 
Commission officials questioned whether she is sufficiently 
independent within DHS and queried whether her independence 
can be strengthened and better defined. 
 
 
4. (SBU) A glaring omission in the discussion of PNR, 
remarked English, is the law enforcement perspective (Justice 
and Home Affairs - JHA).  For the U.S., PNR is a question of 
security and we would welcome the JHA point of view. 
Commissions officials underscored that they are aware of the 
purpose of PNR and see the value of the JHA perspective, but 
it no way should this be used to circumvent data protection 
issues. 
 
Container Security Initiative 
----------------------------- 
 
5. (SBU) English noted that much progress has been made on 
reaching an agreement on CSI. He expressed hope that we can 
close an agreement with the Commission that would capture the 
spirit of the existing "Declarations of Principle" with EU 
member states and would allow us to move forward in a 
constructive manner.  English also said that it was the U.S. 
understanding that the infringement proceedings that the 
Commission had begun against the member states for the DOPs 
would be lifted on signature of the Joint Decision. 
 
6. (SBU) Westerlund responded that the Commission could not 
discuss or negotiate the lifting of the infringements. "We 
need a legally binding agreement," he added, "That is why the 
nature of the decision to be taken by the U.S.-EU Joint 
Customs Committee is so important. He noted that Commissioner 
Patten had raised this with DHS Deputy Secretary England -- 
who seemed to confirm that it would be legally binding. 
Westerlund suggested that we might need to follow up on this 
at the operational level. 
 
EC Enhanced Status at UNHCR Executive Committee 
---------------------------------------- 
 
7. (SBU) Making a strong pitch for the U.S. to support the 
EC's request for enhanced status in the UNHCR's EXCOM, 
Commission officials argued that the EC is a major 
stakeholder in UNHCR in terms of asylum issues and is a major 
donor itself.  Officials also pointed out that the EC is a 
full participant or has enhanced observer status in most 
major fora and in UN Committees.  Member states have granted 
the Deputy High Commissioner a mandate to negotiate for 
enhanced status in the UNHCR EXCOM. The Italian Presidency 
argued that all Member States are behind the Commission's 
request and do not want a confrontation with the U.S. or the 
UN on this issue. 
 
8. (SBU) In response, the U.S. delegation said that the 
principle of no additionality must be upheld, and that U.S. 
policy is not to grant the EU/EC, when it is an observer, 
special status equivalent to those of a party. 
 
Bio-Terrorism Act 
----------------- 
 
9. (SBU) Luc Veron said that the EU shares U.S. concerns and 
ideas for improving traceability and security in the food 
chain, but continues to have grave concerns about the 
obligations imposed under the U.S. Bioterrorism Act of 2002. 
Member States have rigorous inspection and safety guidelines 
and there should be some recognition of and acceptance of 
these standards and practices.  The Commission also stated 
that application of the obligations on food imports to the 
U.S. should not be more onerous that those imposed on 
domestic products.  The Commission hopes that we can work 
together to minimize the effects on trade.  Before the U.S. 
finalizes the implementing regulation, the Commission hopes 
to have further consultations with the U.S. The Italian 
Presidency emphasized that the principle of no-duplication 
should be respected as much as possible and that the possible 
long-term negative effects on trade are clearly understood. 
 
10. (SBU) English said that the FDA has tried to ensure that 
it takes into account whenever possible EC comments and 
concerns while developing the implementing regulation, the 
U.S. delegation commented. The U.S. understands that the 
rules should be as least burdensome as possible, with the 
least impact on trade and as non-discriminatory as possible 
with regards to our trading partners. In a final comment, DG 
Trade Official De Laet said for the record, that the law 
itself -- not just the proposed implementation rules -- is 
restrictive on trade. He urged that we not only take every 
opportunity to improve the implementation but that we also 
use any flexibility built into the law itself to ensure 
minimal effects on trade. 
 
Africa 
 
 
------ 
 
11. (SBU) Commission and Presidency officials summarized the 
key aspects of the meeting of the EU Troika with Africa 
leaders, which took place on July 11 in Maputo, Mozambique. 
The key purpose of this meeting was to keep the EU's 
political dialog with Africa open, since the Zimbabwe 
question precluded the holding of an EU/Africa Summit.  In 
Maputo, European and African leaders discussed prospects for 
an active partnership on security and conflict resolution. 
On the latter point, the Commission intends to set up a peace 
facilitation structure. This facility will be designed to 
assist and finance African peacekeeping operations by 
Africans. Also discussed were Africa's external debt burden, 
and the WTO trade round, especially on how it addresses 
capacity building in developing countries. 
 
12. (SBU) The Commission also briefed on the situation in the 
Democratic Republic of the Congo and of High Rep Solana's 
visit to the Great Lakes region. They expressed appreciation 
for U.S. support for MONUC force expansion and a UNSC Chapter 
7 resolution.  Regarding the turnover of supplies by the 
"Artemis" force to MONUC, they said they are concerned about 
the transition to the Bangladeshis, since there will be no 
French-speaking contingent in Ituri. Regarding the political 
process in the Congo, Solana was encouraged that the impasse 
is close to being unblocked. When queried by the U.S. whether 
Solana and the EC believe that the warlords will lay down 
their arms and participate in the political process, the 
Council Secretariat official Jim Cloos replied that the 
Congolese are determined to move forward and that there is an 
opening for a peaceful solution. The question of arms will 
have to be looked at carefully, according to Cloos. The EU is 
in favor of some type of arms embargo, but this is a 
complicated issue. 
 
13. (SBU) Solana emphasized in his talks in Africa and before 
the UN that the EU military mission must be terminated by 
September 1.  Its sole intent is to bridge the peace and 
allow for the start of the political process. Since this is 
the first mission outside of Europe, the terms under which it 
was agreed to do so must be respected, Secretariat and 
Commission officials emphasized. 
 
14. (SBU) Regarding President Bush's recent visit to Africa, 
the U.S. side said no decision has yet been made to put "U.S. 
boots on the ground" or instead, provide support to ECOWAS. 
On HIV/AIDs, Cloos from the Secretariat queried whether the 
US pledge of 15 billion is real, since the 2004 draft federal 
budget does not have sufficient funds to support this 
commitment. U.S. delegates underscored the President's 
commitment, noting the Congressional requirement that the US 
contribute no more than one third of the contributions to the 
Global Fund. The delegation remarked that the President 
himself told Commissioner Prodi that he, as the Chief 
Executive, will ensure that the full pledge of USD 15 billion 
is spent over the next five years, either through the Global 
Fund for HIV/AIDs or through bilateral programs. 
 
Bilateral Investment Treaties 
----------------------------- 
 
15. (SBU) The U.S. delegation expressed its hope that the 
College of European Commissioners will approve the political 
understanding negotiated with DG Trade on bilateral 
investment treaties.  Commission officials said that one 
possible "tripping stone" remains - the issue of whether the 
Commission would continue to have the authority to impose 
restrictions on capital movements. Although the prospect of 
the EU resorting to such restrictions is remote, Commission 
officials noted, they still might need a flexible approach. 
 
Aviation Agreement 
------------------ 
 
16. (SBU) U.S. and Commission officials lauded the agreement 
that gives the EC the mandate to negotiate a comprehensive 
air services agreement with the United States.  English 
underscored the U.S. interest in an early harvest agreement 
that would be followed by further negotiation on more 
difficult issues, particularly those that would require 
statutory changes.  Regarding early harvest, the Commission 
said it is ready to listen to U.S. proposals but the EC also 
is committed to a full agreement.  The latter is the only way 
to achieve real economic benefits in aviation.  Veron said 
the first plenary will be the week of October 1 in Washington 
followed by a second session the week of December 8 in 
Brussels. He added that Commissioner de Palacio and Secretary 
 
 
Mineta may meet some time after the second session and before 
the end of the year to take stock of progress to date. 
 
Positive Economic Agenda (PEA) 
------------------------------ 
 
17. (SBU) Veron noted the good results that have been 
achieved: the U.S./EU financial services market dialogue; 
Spanish clementines; U.S./EU cooperation on regulatory 
reform; the pending mutual recognition agreement on marine 
equipment well as exploratory talks on trade of organic 
products. He said that he hoped the Commission could go into 
more detail with USTR on July 29 on ideas to expand the PEA. 
 English said the U.S. shared this positive assessment and 
hopes that we can strive for solutions on poultry and solving 
the remaining questions.  All sides agreed that we need to 
work together to meet the broader challenges facing 
transatlantic and international businesses. 
 
World Summit on the Information Society (WSIS) 
--------------------------------------------- - 
 
18. (SBU) Commission and Presidency officials see the WSIS as 
an opportunity for political leaders to express confidence in 
using information technology for economic development and 
growth and to share EU experience in e-strategies.  The 
Commission is concerned about the slow progress in the 
preparatory stages for the Summit, especially in bridging the 
gap between the developed and developing countries on these 
issues.  The Commission views the September 12th Information 
Society Dialogue in Washington as an opportunity to advance 
before the third prepcom meeting. The U.S. also expressed 
concern about some of the proposals offered by developing 
countries on such issues as intellectual property rights. 
Task Force participants agreed on the need to work closely 
together to find common ground. Regarding the level of 
participation, Commission officials said European 
Commissioner for Enterprise and Information Society, Erkki 
Liikanen will definitely attend; President Prodi also is 
likely. 
 
U.S./EU Summit Follow-Up: Hydrogen, Non-Pro 
------------------------------------------- 
 
19. (SBU) U.S. delegates noted that the U.S. will convene in 
November. (The IPHE roll out is planned for November 19-21) a 
high-level meeting to inaugurate the International 
Partnership for the Hydrogen Economy (IPHE) and are pleased 
that the Commission will participate.  In advance of the 
meeting, the U.S. will circulate a draft terms of reference 
and welcomes the Commission's comments.  Commission officials 
said they are reviewing U.S. proposals for the IPHE 
partnership, and will pay particular attention to ensuring 
that the terms of reference are consistent with EC and member 
state guidelines. On another Summit issue, non-proliferation, 
the U.S. encouraged a joint plan for areas where the U.S./EU 
can work together, including in such areas as export controls 
and IAEA. 
 
Trade 
----- 
 
20. (SBU) Laying down a marker on GMOs once again, the U.S. 
side reiterated that the U.S. government is committed to 
getting access to the European market.  Commission officials 
replied that a recent regulation adopted by the European 
Parliament would increase transparency in the regulatory 
system for GMOs and increase consumer confidence.  Officials 
also pointed out that they have started infringement 
proceedings against member states that have not implemented 
the GMO deliberate release directive.   Echoing the comment 
of DG Trade official de Laet on the US Bioterrorism law (para 
10 above), English noted that the USG views the 
recently-passed laws on traceability and labeling and food 
and feed to be fundamentally flawed, regardless of how they 
might be implemented.  The USG reserves its right to consider 
a WTO challenge on the basis of the restrictions the laws 
raise to trade, he added.  After the recent meeting of 
European Parliamentarians and the Congressional Delegation 
led by Chairman Henry Hyde, both sides understand better the 
perspectives of the other, which should lay a solid 
foundation for future talks, Commission officials remarked. 
 
HUMAN RIGHTS 
------------ 
 
21. (SBU) The U.S. delegation notified Commission and 
Presidency officials that it will sponsor a resolution on 
 
 
women and political participation and will seek EU support. 
The U.S. also hopes the EU will help convince the Africa 
Group to stop blocking key resolutions on African nations 
such as Zimbabwe. 
 
22. (SBU) Regarding the proposed WEOG rotation for the Human 
Rights Commission, the U.S. hopes a solution can be found 
that will allow U.S. participation on an appropriate 
schedule.  The U.S could not consent to the Dutch/Canadian 
proposal that would have left the U.S. off the board for two 
years. 
 
Justice and Home Affairs 
------------------------ 
23. (U) Participants in the JHA task force meeting provided 
highlights of their two-day discussion (reported septel). 
 
24. (U) This cable was cleared by EUR/ERA and USEU. 
Sembler 
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	2003ROME03360 - Classification: UNCLASSIFIED