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Viewing cable 04ROME1342, EU ARMS EMBARGO ON CHINA: ITALY WEARING POKER FACE

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Reference ID Created Released Classification Origin
04ROME1342 2004-04-05 16:38 2011-08-30 01:44 CONFIDENTIAL Embassy Rome
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 ROME 001342 
 
SIPDIS 
 
 
E.O. 12958: DECL: 04/02/2014 
TAGS: PARM PREL CH IT EUN HUMAN RIGHTS
SUBJECT: EU ARMS EMBARGO ON CHINA: ITALY WEARING POKER FACE 
 
REF: STATE 68263 
 
CLASSIFIED BY: DCM EMIL SKODON FOR REASONS 1.5 (B) AND (D). 
 
1. (U) PLEASE SEE ACTION REQUESTS IN PARAS 7 AND 8. 
 
2. (C) SUMMARY.  ITALY WILL FACTOR ITS DEFENSE INDUSTRIAL 
RELATIONSHIP WITH THE U.S. INTO FORMULATING A POSITION ON 
WHETHER TO AGREE TO LIFT THE EU EMBARGO.  PM BERLUSCONI IS 
LIKELY TO BE LOBBIED HARD BY CHINESE PREMIER WEN JIABAO WHEN 
HE VISITS ROME IN EARLY MAY.  NEVERTHELESS, MFA OFFICIALS 
TOLD US THEY BELIEVE ANY DECISION TO REMOVE THE SANCTIONS 
WILL NOT HAPPEN SOON BECAUSE THE EU IS DIVIDED INTERNALLY. 
EMBASSY WILL RAISE REFTEL POINTS WITH MOD OFFICIALS (AND 
REPORT SEPTEL) WHO MAY BE PARTICULARLY SENSITIVE TO OUR 
DEFENSE TRADE LINKAGE.  WASHINGTON TRANSMISSION OF ADDITIONAL 
DETAILS REGARDING THE ONGOING POLICY REVIEW RELEASABLE TO THE 
GOI WOULD HELP US MAKE A MORE EFFECTIVE ARGUMENT WITH A 
GOVERNMENT CONCERNED ABOUT UNREALIZED EXPECTATIONS IN THE 
AREA OF U.S.-ITALY DEFENSE TRADE COOPERATION.  END SUMMARY. 
 
 
3.  (C) AS OF APRIL 5, EMBASSY HAS RAISED REFTEL POINTS WITH 
THE PM'S DIPLOMATIC ADVISOR GIOVANNI CASTELLANETA, MFA DEPUTY 
DIRECTOR FOR EU SECURITY ISSUES LUIGI MATTIOLO, AND MFA EAST 
ASIA OFFICE DIRECTOR CRISTINA RAVAGLIA.  AT THE EARLIEST 
POSSIBLE OPPORTUNITY, WE WILL BRING THEM TO THE ATTENTION OF 
MFA U/S MARGHERITA BONIVER, WHO HOLDS THE EAST ASIA AND HUMAN 
RIGHTS PORTFOLIOS, MFA OFFICE DIRECTOR FOR DEFENSE INDUSTRIAL 
COOPERATION DIEGO UNGARO, AND THE DEFENSE MINISTER'S 
    DIPLOMATIC ADVISOR, FRANCESCO TRUPIANO.  ADDITIONALLY, ODC 
ROME WILL CONVEY THE POINTS TO NATIONAL ARMAMENTS DIRECTOR 
LT. GEN. GIANNI BOTONDI AS SOON AS A MEETING CAN BE ARRANGED. 
 WE WILL REPORT RESPONSES SEPTEL. 
 
4.  (C) GIOVANNI CASTELLANETA TOLD THE DCM ON MARCH 31 THAT 
ONLY THE FRENCH WERE PUSHING HARD TO LIFT THE EMBARGO.  HE 
NOTED THAT THE ISSUE HAD BEEN DISCUSSED AT THE MARCH 25-26 EU 
COUNCIL BUT NO DECISION HAD BEEN REACHED.  CASTELLANETA 
EXPECTED HEAVY LOBBYING FROM CHINESE PREMIER WEN JIABAO WHEN 
HE VISITS ROME IN EARLY MAY AS PART OF A EUROPEAN TRIP, BUT 
WOULD NOT BE PINNED DOWN ON HOW ITALY INTENDED TO RESPOND. 
HE CONFIDED THAT ITALY'S NUMBER ONE PRIORITY WITH CHINA WAS 
TRADE, AND SPECIFICALLY THE CHINESE PENCHANT FOR TRADING IN 
COUNTERFEIT GOODS.  RESPONDING TO THE DCM'S QUERY, 
CASTELLANETA SAID CHINA HAD NEVER TRIED TO LINK BETTER 
BEHAVIOR ON IPR TO LIFTING THE EU ARMS EMBARGO. 
 
5. (C) ON APRIL 2, LUIGI MATTIOLO TOLD POLOFF THAT THE GOI 
SHARES U.S. CONCERNS REGARDING A POSSIBLE EU DECISION TO LIFT 
THE EMBARGO.  "THE TIME IS NOT RIPE" FOR SUCH A SHIFT, HE 
SAID.  ITALY WILL PRESS THE POINT IN PSC DELIBERATIONS IN 
BRUSSELS.  MOREOVER, ITALY RECOGNIZES THE IMPORTANCE OF ITS 
PRODUCTIVE ARMS/TECHNOLOGY TRADE RELATIONSHIP WITH THE U.S. 
AND WILL TAKE THIS INTO ACCOUNT IN FORMULATING A NATIONAL 
POSITION.  MATTIOLO ACKNOWLEDGED THAT SEVERAL OTHER EU 
MEMBERS WERE FAR STRICTER THAN ITALY IN LINKING HUMAN RIGHTS 
PROGRESS TO ENHANCED ARMS TRADE, AND THEREFORE IT WOULD BE 
UNLIKELY THAT A CONSENSUS TO CHANGE THE STATUS QUO COULD BE 
REACHED.  AT THE SAME TIME, MATTIOLO EMPHASIZED, IT IS 
IMPORTANT TO KEEP THE LINES OF COMMUNICATION WITH CHINA OPEN 
    AND PRODUCTIVE.  HE NOTED THAT THE NEXT OPPORTUNITY FOR 
HIGH-LEVEL DEBATE ON THE ISSUE IS THE APRIL 26 GAERC. 
ALTHOUGH THE AGENDA HAS NOT BEEN DRAFTED, HE "WOULD NOT BE 
SURPRISED" TO SEE THE EMBARGO INCLUDED. IF IT IS, ITALY WOULD 
URGE AN "EXTREMELY CAUTIOUS APPROACH" TO ANY REVISIONS IN 
CURRENT RESTRICTIONS. 
 
6.  (C) CRISTINA RAVAGLIA ASSURED POLOFF ON APRIL 5 THAT THE 
MFA IS WELL AWARE OF OUR CONCERNS REGARDING THE EMBARGO AND 
THE HUMAN RIGHTS SITUATION IN CHINA.  THE LINK TO US DEFENSE 
TRADE POLICY WAS A NEW TWIST.  SHE DESCRIBED THE ITALIAN 
POSITION AS A "CAUTIOUS OPENING TO THE POSSIBILITY OF 
REVISING" THE EMBARGO.  PUBLIC OPINION AND INTERNAL POLITICS 
WILL INFLUENCE THE DECISION, RAVAGLIA SAID.  SHE DOUBTED ANY 
DECISION WOULD BE REACHED IN THE NEAR TERM BECAUSE OF THE 
LACK OF CONSENSUS IN THE EU AND INDICATED THAT THE JAPANESE 
HAVE MADE THEIR CONCERNS KNOWN THROUGH A NUMBER OF RECENT 
DEMARCHES. 
 
7. (C) ACTION REQUESTS: OUR EFFORTS TO WORK THE ARMS EMBARGO 
ISSUE WITH ITALY WOULD BE BOOSTED IF WE HAD MORE SPECIFIC 
INFORMATION TO SHARE REGARDING THE NSPD-19 PROCESS.  AS THE 
MARCH 30 U.S.-ITALY AERONAUTICS CONFERENCE IN WASHINGTON, 
D.C. UNDERSCORED, THE ITALIANS ARE EAGER TO FURTHER 
STRENGTHEN DEFENSE INDUSTRIAL COOPERATION, BUT ARE CONCERNED 
 
ROME 00001342  002 OF 002 
 
ELPFULLY, WAKING UP TO THE FACT 
THAT THERE ARE AREAS WHERE THEY NEED TO IMPROVE AS WELL. 
NEVERTHELESS, ACROSS THE BOARD ON DEFENSE INDUSTRIAL MATTERS, 
ITALY IS INCREASINGLY DEMANDING HARD FACTS AND UPFRONT 
ASSURANCES.  WITHOUT AT LEAST A FEW ADDITIONAL DETAILS ON THE 
FUTURE ADVANTAGES AT RISK IF THE EU LIFTS THE EMBARGO, WE ARE 
CONCERNED THAT THE ITALIAN OFFICIALS WHO CARE MOST ABOUT THE 
DEFENSE INDUSTRIAL RELATIONSHIP COULD BE HAMSTRUNG IN 
INTERAGENCY DISCUSSIONS AND, CONCOMITANTLY, IN MAKING AN 
EFFECTIVE ARGUMENT WITHIN THE EU FOR MAINTAINING THE STATUS 
QUO. 
 
8. (C) ACTION REQUESTS CONT:  ADDITIONALLY, A KEY ELEMENT TO 
MOVING ITALY OFF THE FENCE WILL BE ACTIVATING THE HUMAN 
RIGHTS GROUPS--AND LEGISLATORS--THAT CARE ABOUT CHINA TO 
WEIGH IN WITH THE GOVERNMENT.  SO FAR, CONSIDERATION THE EU 
IS GIVING TO LIFTING THE EMBARGO HAS BEEN OUT OF THE PUBLIC 
EYE AS THE ITALIAN PRESS HAS GIVEN ALMOST NO PLAY TO THE 
ISSUE.  WE STRONGLY SUSPECT THAT THE GOVERNMENT BELIEVES 
THERE WOULD BE LITTLE POLITICAL PRICE TO PAY DOMESTICALLY FOR 
GOING ALONG WITH A CONSENSUS TO REMOVE THE SANCTIONS.  WE CAN 
TRY TO CHANGE ITS CALCULUS BY WORKING WITH INTERESTED NGOS 
AND SELECT PARLIAMENTARIANS, BUT WOULD APPRECIATE GUIDANCE ON 
WORKING OUTSIDE RESTRICTED CHANNELS TO AFFECT GOI DECISION 
MAKING.  END ACTION REQUESTS. 
VISIT ROME'S CLASSIFIED WEBSITE: 
HTTP://WWW.STATE.SGOV.GOV/P/EUR/ROME/INDEX.CF M 
 
SEMBLER 
 

 
NNNN 
 2004ROME01342 - Classification: CONFIDENTIAL