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C O N F I D E N T I A L SECTION 01 OF 03 ROME 003132 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/21/2016 
TAGS: PGOV XF IR LE UNAUS KNNP IT
SUBJECT: ITALY: IRAN SANCTIONS UNAVOIDABLE, BUT ESCALATION 
UNPREDICTABLE 
 
REF: ROME 2946 
 
ROME 00003132  001.2 OF 003 
 
 
Classified By: Political M/C David D. Pearce for reasons 1.4 (B) and (D 
). 
 
Summary 
------- 
 
¶1.  (C)  MFA Middle East Director Cesare Ragaglini says there 
is now no choice on the Iran nuclear issue but to move 
forward with sanctions.  This is a matter for some concern, 
though, because it will set in motion a process of escalation 
whose outcome is unpredictable.  We should also be looking at 
a strategy for engagement.  The key issue for Iran is not the 
nuclear one, according to Ragaglini; it is U.S. recognition 
and engagement.   The Middle East director told visiting NEA 
DAS Gray that movement on the peace process (MEPP) will be a 
priority for the GOI during its tenure on the UNSC.  However, 
he said, the Italians are skeptical of the so-called 
French/Spanish initiative because any serious effort will 
require EU-wide concurrence, not just the support of a few 
countries.  Furthermore, it will have to be carefully 
coordinated with the U.S., Israel, and the moderate Arab 
countries.  Ragaglini said it was essential that the UNIFIL 
mission in Lebanon be a success, because it was the first 
time Israel had accepted such a force, and this could be an 
important precedent for future missions in the region.  He 
said PM Prodi had called Syrian President Asad to press him 
to refrain from action to destabilize the Siniora government. 
 Bashar disingenuously said Syria had withdrawn its troops 
from Lebanon, and thus had limited means to influence the 
situation.  Nevertheless, Ragaglini said, Prodi made clear 
Italy's support for the Siniora government, and also that it 
considered this moment an important test of Syrian 
intentions.  End Summary. 
 
 
Iran: Looking for U.S. Recognition, Engagement 
-------------------------------------------- 
 
¶2.  (U) Visiting NEA DAS Gordon Gray and NEA RA Deputy 
Director Christine Elder met November 17 with Italy's new 
Middle East Director General, Cesare Ragaglini.  Ragaglini 
was accompanied by Near East office director Luciano Pezzotti 
and deputy Near East Office Director Daniele Bosio. Pol M/C 
and poloff accompanied Gray. 
 
¶3.  (C) Ragaglini, who has served in both Iran and Iraq, 
agreed with Gray that the only option with Iran at this point 
was to move forward toward sanctions.  However, this will 
also start a process of escalation whose exit is 
unpredictable.  While the initial sanctions set may be light, 
once we go down this path the international community will 
eventually have to move on to tougher measures.  We need to 
reflect very hard on this, and where it will go, and be very 
clear what goal we hope to achieve.  Italy wished to prevent 
Iran from becoming a nuclear power, but the nuclear issue was 
not the only issue to take into account when dealing with 
Iran.  In Ragaglini's view, the EU-3 are ultimately hampered 
in what they can achieve with Iran because they do not have 
the ability to deliver to Tehran what it wants most, and what 
it is really looking for -- recognition, respect, and 
engagement by the U.S. 
 
¶4.  (C) Gray pointed to the Secretary's May 31 offer to sit 
down together with the Iranians, but they had declined the 
offer.  Ragaglini agreed, and said the EU-3 (and Italy) had 
not helped sufficiently in explaining to the Iranians the 
significant implications of that offer.  We should look at a 
strategy for engaging Iran but whatever our conceptual 
differences, it would be essential for success that we stick 
together (Comment: by "we", Ragaglini appeared to mean the 
U.S. and EU.  End Comment).   Gray cautioned that any change 
of course would be perceived by the Iranians as weakness and 
we need to keep moving towards sanctions.  Ragaglini agreed 
it would be disastrous to change course now. 
 
 
MEPP a Priority for Italy 
------------------------- 
 
¶5.  (C) Ragaglini said movement on the MEPP was a priority 
for FM D'Alema and it would be a priority for the GOI during 
its tenure on the UNSC.  The status quo was not an option. 
Europe believes its security is directly linked to a 
 
ROME 00003132  002.2 OF 003 
 
 
resolution of the Israeli/Palestinian issue.  We are faced 
with many weaknesses in the region: the Palestinians are 
weak, despite some movement toward a government of national 
unity; Israel has been weakened after the conflict with 
Lebanon; and Lebanon's domestic situation is fragile and 
susceptible to influence from Syria. 
 
¶6.  (C) That said, there are also opportunities, and it will 
be important to move quickly, or else the difficulties we 
face today will only multiply.  Gray pointed out that 
President Bush's speech to the UNGA highlighted U.S. 
determination to resolve the Israeli-Palestinian conflict, 
which was further underscored by the Secretary's trip to the 
region shortly thereafter.  But resolution of this difficult 
issue is not a magic solution for all the issues in the 
region.  Lebanon will continue to have sectarian divisions, 
Iran will continue to look for ways to assert itself as a 
regional power, and al-Quaeda will remain a threat. 
Ragaglini said the plight of the Palestinians was cynically 
used as political cover by Arab leaders, in order to avoid 
movement on other issues.  But perception can become reality, 
and the excuse needed to be removed so that movement on other 
issues could proceed. 
 
¶7.  (C) The ME director said the Italians were skeptical of 
the recently announced Spanish-French initiative.  Any 
initiative needed to be EU-wide to carry any weight.  It 
should first be discussed in the EU's "Quint" (France, Spain, 
Italy, UK, Germany) format, then agreed by the entire 25. 
Italy would host the next meeting of the Quint in early 
December and next steps in the peace process will be on the 
agenda. 
 
 
UNIFIL II Success Essential 
--------------------------- 
 
¶8.  (C) Ragaglini said it was essential that UNIFIL II be a 
success story.  The mission sets an important precedent for 
security in the region, since it represents the first time 
Israel has accepted such an international force, and it thus 
could be a model for future missions. 
 
 
Syria Unresponsive 
------------------ 
 
¶9.  (C) Ragaglini noted that PM Prodi had called Syrian 
President Bashar al-Assad November 13 to ask him to play a 
positive role and refrain from taking any action to 
destabilize the Siniora government.  Bashar responded 
unhelpfully, and disingenuously, saying that Syria had agreed 
to requests from the international community to withdraw its 
troops from Lebanon, and thus had limited means to influence 
the situation.  Nevertheless, Italy had made its support for 
the Siniora government clear, and also made clear that it 
considered this an important test of Syrian intentions. 
 
¶10.  (C) Gray said Bashar lacked his father's strategic 
sense, including knowing when and how to change course, and 
could not be counted on to act rationally.  Ragaglini agreed, 
but said there appeared to be no good alternatives on the 
Syrian political horizon; the Muslim Brotherhood was 
certainly not a palatable option.  He added that, looking 
beyond Lebanon, the Syrian regime was secular and should 
therefore have an interest in joining the West in combating 
the problem of Islamic extremism. 
 
¶11.  (C) Comment.  Ragaglini replaced Riccardo Sessa as 
Director General for Middle East -- NEA A/S equivalant-- in 
early November (see reftel for full bio.)  This was his first 
meeting with a senior U.S. official in his new capacity. 
Ragaglini most recently served asPM Prodi's G-8 Sherpa and 
has also served as the Former Chief of the Italian Special 
Diplomatic Delegation in Baghdad (1996-1999).  He was Deputy 
Diplomatic Advisor to three consecutive Prime Ministers 
including Massimo D'Alema (current Foreign Minister) and he 
served his first overseas tour in Tehran.  He struck us as a 
thoughtful and experienced diplomat who is keen to work 
closely with the U.S. on issues which are a top foreign 
policy priority for his government and his Minister. 
 
¶12.  (U) NEA DAS Gray has cleared this cable. 
 
¶13.  (U) Triploli minimize considered. 
 
ROME 00003132  003.2 OF 003 
 
 
SPOGLI