US embassy cable - 03ROME3388

C O N F I D E N T I A L  ROME 003388 
 
SIPDIS 
 
 
DEPT FOR EUR/FO, EUR/WE, EUR/ERA 
 
E.O. 12958: DECL: 07/25/2013 
TAGS: PGOV, PREL, EU, IT, EUN 
SUBJECT: EUR A/S JONES DISCUSSIONS WITH PM DIP ADVISOR 
CASTELLANETA AND MFA SYG BALDOCCI 
 
REF: ROME 3368 
 
Classified By: A/POL M%$1Qerline the US desire 
to work closely with the EU on critical issues: MEPP, 
trafficking in persons, and transatlantic security structures 
are among the most important.  Baldocci was hopeful that 
early consultations when disagreements arise could avoid 
rifts in our relations.  He pointed to the intense talks in 
the Quint prior to the Kosovo conflict as an example of how 
quiet diplomacy can avoid public disagreements. 
 
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UNSC Reform 
----------- 
 
4. (C) Castellaneta said he was concerned about British plans 
for UNSC reform, which he understood were discussed during PM 
Blair's trip to Washington.  Italy agrees that reform is 
necessary, but simply adding several new countries to the 
UNSC (Japan, Germany, Brazil, India) is not the answer.   We 
should proceed cautiously.  Baldocci confirmed that UNSC 
reform is under study in the MFA; the Italian government is 
studying possible configurations that would preserve the 
status of the P5 but allow an expanded role for other large 
countries on a rotating basis.  A/S Jones said she would 
convey Italian concerns in Washington. 
 
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Biotechnology 
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5. (C) A/S Jones pressed for Italian leadership, as EU 
President, for progress on biotech.  The US Congress is 
focusing on the issue, and is not happy with EU labeling 
plans.  Castellaneta said the EU Parliament vote on 
traceability and labeling will allow lifting of the 
moratorium on new biotech product approvals.  He called the 
seizure and destruction of corn crops in Northern Italy this 
past week "stupid," and acknowledged divisions within the 
Italian government on this issue.  He said that Berlusconi is 
personally focused on the problem. 
 
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Middle East 
----------- 
 
 
6. (C) A/S Jones noted the visit of Sharon and Abu Mazen to 
Washington at the end of the month.  Castellaneta underlined 
Italian/EU support for the Road Map, and said that the EU 
would be willing to send civilian monitors/observers to the 
region when appropriate.  A/S Jones thanked Castellaneta for 
this offer, but pointed out that is too early to think about 
deploying monitors.  Baldocci highlighted the need for 
financial support for the region, noting PM Berlusconi's 
"Marshall Plan" was ready to implement when the time is 
right.  The MEPP/Roadmap will be an important topic of 
conversation at the July 21 GAERC.  He said Italy wanted to 
exploit its perception in the Middle East as a European 
country with a "balanced" view towards all sides.  A/S Jones 
said that the USG looks forward to working with 
newly-appointed Special Envoy Otte and through the Quartet 
process to move the peace process forward in the coming 
months. 
 
7. (C) Castellaneta noted the Italian offer to hold a Middle 
East conference in Sicily.  A/S Jones said we need to focus 
on implementing the first stages of the Road Map, including 
confidence building measures.  She stressed the importance of 
Berlusconi's developing a strong personal relationship with 
Sharon.  This would be necessary for possible Israeli 
acceptance of EU monitors at a later stage.  Baldocci and 
Castellaneta underlined the importance of financial support 
for the region and support for the G-8/Evian approach to 
reconstruction and of a $5-7 billion international fund to be 
utilized when conditions on the ground allow.  Castellaneta 
asked about the Department's (NEA) Middle East Partnership 
Initiative.  A/S Jones explained its focus was on education 
and civil society projects in the Middle East in general, not 
just on the Palestinian/Israeli dispute.  A/S Jones stressed 
enhancing Abu Mazen's support so that he can become an 
interlocutor for Sharon.   Castellaneta noted that Berlusconi 
would be speaking with Abu Mazen later that day, and that 
Palestinian and Israeli Foreign Ministers would be at the 
GAERC on July 21. 
 
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Iraq 
---- 
 
8. (C) A/S Jones summarized Ambassador Bremer's efforts to 
address security issues in Iraq while simultaneously working 
on a political track.  Castellaneta said Italy welcomes the 
formation of the Governing Council, and has arranged 
financing (USD 300 Million) to deploy 3000 troops to Iraq. 
He said that Italy had already sent several civilian experts 
to work with the Iraqi civilian administration, and would 
like to deploy more.  A/S Jones welcomed Castellaneta's offer 
to send some 50 experts in all, and said she would try to 
facilitate their deployment with Amb. Bremer.  Castellaneta 
said Italy was favorable to an eventual larger NATO role in 
Iraq.  A/S Jones said the US and Italy should consult on how 
to use NATO most effectively. 
 
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Iran 
---- 
 
9. (C) Castellaneta said that an Italian-Iranian economic 
commission had met in recent days, and DPM Fini had 
discussions the previous week with Iranian Min. of Industries 
& Mines Eshaq Jahangiri.  Castellaneta expressed Italian 
unhappiness with the IAEA's failure to gain any further 
concrete information on Iran's nuclear program, and noted 
Italy's willingness to continue to serve as a communication 
channel between Iran and the US. 
 
10. (C)  A/S Jones said the EU needed to ask itself hard 
questions about the effectiveness of its "critical dialogue" 
with Iran.  What has it achieved?  Iranian behavior on human 
rights, media, its nuclear program, and terrorism is 
deteriorating, not improving.  The issue is: how can we 
influence Iranian behavior to get the results we want?  The 
IAEA will present its report to the Security Council in 
August; the US expects it to be very critical and generate 
significant discussion.  Castellaneta and A/S Jones agreed on 
the need to continue to urge Russia to withhold further 
support for Iran's nuclear program.  They noted that Putin 
has been saying more of the right things lately. 
 
 
---------------------- 
OSCE/Frozen Conflicts 
--------------------- 
 
11. (C) A/S Jones outlined Russian recalcitrance on 
fulfilling Istanbul commitments for withdrawal from Moldova 
and Georgia.  On the edge of an enlarged Europe, Russia was 
acting like the old Soviet Union.  The Russian MFA is the 
main problem, and the EU needs to let Putin know that Europe 
is concerned about this behavior.  Castellaneta agreed, and 
noted that Berlusconi will have two opportunities to do this: 
at a planned Berlusconi-Putin meeting in Sochi at the end of 
July, and at the Rome EU-Russia summit in November. 
 
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Galileo 
------- 
 
12. (C)  A/S Jones agreed with Baldocci's and Castellaneta's 
assertion that technical work should continue on Galileo, but 
said that political-level decisions will be essential to 
solving this issue.  A/DCM (ECMIN) noted that time is 
limited; the issue needs to be resolved during the Italian 
Presidency, before the December Transport Council meeting. 
He said that US-Italy talks in Rome this week did not appear 
to have made much progress.  Castellaneta agreed, and 
promised to personally engage on this issue. 
 
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Defense Industrial Cooperation 
------------------------------ 
 
13. (C) Castellaneta said that Italy wanted to strengthen 
bilateral defense industrial cooperation with the US, but he 
argued that Italy is not getting the same return on its 
investment in the Joint Strike Fighter program as other 
participants.  The Agusta-Westland helicopter sale is 
extremely important to Italy, and he underlined Italy's view 
that it is not getting the same access to US technology as 
other close Allies.  A/S Jones said A/S Bloomfield is working 
intensively on a technology transfer policy; she would convey 
Italy's concerns in Washington, but was not aware of any 
categorization by country. 
 
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Turkey 
------ 
 
14. (C)  A/S Jones noted that Turkish FM Gul would be in 
Washington the following week for meetings, including with VP 
Cheney.  The USG applauds the new laws passed in Ankara, but 
now the time has come to implement reforms on human rights, 
prison conditions and use of the Kurdish language.  Baldocci 
promised to ask the Italian Embassy in Washington to contact 
the State Department with EU Presidency points on Turkish 
reform and Turkey's EU aspirations. 
 
15. (U) A/S Jones has cleared this cable. 
Sembler 
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 2003ROME03388 - Classification: CONFIDENTIAL