US embassy cable - 03ROME3386

S E C R E T ROME 003386 
 
SIPDIS 
 
 
E.O. 12958: DECL: 07/24/2013 
TAGS: PARM, PREL, PGOV, ETTC, IT, LY, IR, EXPORT CONTROLS 
SUBJECT: ITALIAN FAST BOAT EXPORTS TO IRAN, LIBYA 
 
REF: SECSTATE 209602 
 
CLASSIFIED BY: ECONOMIC MINISTER COUNSELOR SCOTT KILNER FOR REASONS 1.5 
 B AND D 
 
 1. (S) DEPUTY ASSISTANT SECRETARY FOR POLITICAL-MILITARY 
AFFAIRS ROBERT MAGGI, TOGETHER WITH ECMIN AND ECONOFF, RAISED 
CONTINUING U.S. CONCERNS REGARDING ITALIAN EXPORTS TO IRAN 
AND LIBYA (REFTEL) ON JULY 22 WITH MFA DIRECTOR GENERAL FOR 
ECONOMIC AND FINANCIAL AFFAIRS GIANDOMENICO MAGLIANO AND 
NON-PROLIFERATION COORDINATOR UGO DE MOHR. THE MEETING 
OCCURRED ON THE MARGINS OF BILATERAL DISCUSSIONS ON DUAL-USE 
EXPORT CONTROLS, LED BY MAGLIANO AND MAGGI (TO BE REPORTED 
SEPTEL). 
 
IRAN 
---- 
 
2. (S) IN RAISING THE POINTS ON IRAN, DAS MAGGI NOTED U.S. 
APPRECIATION FOR THE ATTENTION PAID TO OUR CONCERNS BY 
FOREIGN MINISTER FRATTINI AND OTHER GOI OFFICIALS, WHICH WE 
UNDERSTOOD RESULTED IN THE ITALIAN FIRM FB DESIGN'S PLACING A 
TEMPORARY HOLD ON THE EXPORT OF ADDITIONAL PATROL BOATS TO 
IRAN.  MAGGI URGED THE GOI TO ENSURE THAT THE HOLD BECOMES 
PERMANENT. ECMIN STATED THAT WE ARE URGENTLY CONCERNED ABOUT 
THE STATUS OF THE SHIPMENTS THAT WERE PENDING AT THE TIME THE 
GOI INFORMED US OF THE TEMPORARY HOLD. 
 
3. (S) MAGGI SAID THAT THE U.S. RECOGNIZES THE GOI'S 
DIFFICULTY IN FORMALLY HALTING EXPORTS THAT DO NOT APPEAR TO 
    FALL WITHIN THE SCOPE OF ITALIAN EXPORT CONTROL LISTS. 
HOWEVER, HE UNDERLINED HIGH U.S. ATTENTION TO FORCE 
PROTECTION, PRESENTLY FOCUSED IN PARTICULAR ON IRAQ AND THE 
PERSIAN GULF.  THE U.S. RAISES SUCH CONCERNS WITH OTHER 
GOVERNMENTS WHENEVER WE BELIEVE AN EXPORT COULD BE A 
POTENTIAL THREAT TO OUR FORCES. WE HAVE GONE AS FAR AS 
CONFISCATING THE DELIVERY OF SIMILAR BOATS TO A COUNTRY IN 
THE REGION, WHICH UNDERSCORES THE REAL THREAT SUCH VESSELS 
CONSTITUTE.  EVEN IF IRAN CAN PROCURE SUCH BOATS ELSEWHERE, 
AND EVEN GIVEN THE EXISTENCE OF OTHER THREATS, WE SHOULD WORK 
TOGETHER TO STEM ANY THREATS WHATEVER THEY MAY BE, WHENEVER 
WE CAN. 
 
4. (S) MAGLIANO ACKNOWLEDGED THAT EFFECTIVE CONTROL OF 
POTENTIALLY THREATENING EXPORTS REQUIRED EFFORTS BY ALL 
SIDES. HE NOTED HIS INTEREST TO HEAR OF OUR EFFORTS TO 
PERSUADE OTHER COUNTRIES TO HALT THE TRANSFER OF SIMILAR 
BOATS. HE THEN MENTIONED THE DELICATE NATURE OF ITALY'S 
LONGSTANDING TIES WITH IRAN, AND THE GOI'S CONTINUED HOPES 
FOR POSITIVE EVOLUTION WITHIN IRAN.  ITALY WAS CONCERNED 
ABOUT GIVING SIGNALS TO THE IRANIAN GOVERNMENT THAT MIGHT 
IMPEDE ITALIAN EFFORTS TO EFFECT POSITIVE CHANGES IN IRAN. 
REGARDING FB DESIGN SPECIFICALLY, DE MOHR PROMISED TO CHECK 
AGAIN ON THE STATUS OF THE SHIPMENT THAT HAD BEEN HALTED 
EARLIER THIS YEAR, AND TO CONFIRIM THE FIRM'S INTENTIONS 
REGARDING ANY FUTURE EXPORTS TO IRAN. (DE MOHR SAID THE FIRM 
PREVIOUSLY HAD TOLD HIM IT HAD NO INTENTION OF PURSUING 
FURTHER BUSINESS IN IRAN.) 
 
LIBYA 
----- 

5. (S) MAGLIANO EMPHASIZED THE INCREASINGLY POSITIVE NATURE 
OF ITALY'S RELATIONS WITH LIBYA, INCLUDING LIBYA'S 
WILLINGNESS TO COOPERATE WITH ITALY IN STEMMING ILLEGAL 
IMMIGRATION, AN ISSUE OF GREAT CONCERN TO THE GOI.  UNLIKE 
THE CASE OF IRAN, THE EXPORT OF PATROL BOATS AND RELATED 
EQUIPMENT TO LIBYA WAS CLEARLY IN ITALY'S NATIONAL INTERESTS. 
 ECMIN SAID THE U.S. UNDERSTANDS THAT ILLEGAL IMMIGRATION 
FROM NORTH AFRICA TO ITALY IS A MAJOR PREOCCUPATION OF THE 
GOI.  NEVERTHELESS, THE U.S. CONTINUES TO HAVE VERY REAL 
CONCERNS ABOUT LIBYAN WMD DEVELOPMENT AND LINKS TO TERRORISM, 
AND THE LIBYAN GOVERNMENT'S CONTINUED FAILURE TO COMPLY WITH 
ALL UNSC PROVISIONS RELATED TO THE LOCKERBIE BOMBING. 
 
6. (S) COMMENT: WHILE NEITHER MAGLIANO NOR DE MOHR OFFERED 
ASSURANCES THAT THE TEMPORARY BLOCK ON FB DESIGN FAST BOAT 
DELIVERIES WILL BECOME PERMANENT, THE PRESENTATION OF THE 
DEMARCHE BY VISITING DAS MAGGI UNDOUBTEDLY IMPRESSED UPON THE 
MFA WASHINGTON'S CONTINUED CLOSE ATTENTION TO THIS ISSUE. 
 
7. (U) THIS MESSAGE HAS BEEN CLEARED BY DAS MAGGI. 
SEMBLER 
 
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	2003ROME03386 - Classification: SECRET