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TO RUEHC/SECSTATE WASHDC IMMEDIATE 3560
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C O N F I D E N T I A L SECTION 01 OF 04 ROME 000427 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/07/2016 
TAGS: PGOV PREL XM HA CU CA IT
SUBJECT: ITALY RECEPTIVE TO A/S SHANNON'S MESSAGE ON LATIN 
AMERICA 
 
Classified By: Political Minister Counselor David D. Pearce for reasons 
 1.4 (b) and (d). 
 
¶1. (C) Summary.  A/S Thomas Shannon February 3 outlined U.S. 
policy in the Western Hemisphere for Italian MFA Director 
General for the Americas Claudio Bisogniero and encouraged 
Italy to be our partner in engaging with Latin America during 
this delicate time for the region.  Bisogniero was very 
receptive to Shannon's message and expressed willingness to 
work with the United States, especially on Bolivia. 
Bisogniero and Shannon also noted that the United States and 
Italy shared a common view of the nuances in Latin American 
politics and the need to judge governments by their actions, 
not solely their political ideology. Shannon requested 
Italy's support for Guatemala's UNSC bid and Bisogniero 
responded that Italy was very much inclined to back its 
candidacy.  End Summary. 
 
--------------------------------------------- --- 
Italy: Relaunching Its Presence in Latin America 
--------------------------------------------- --- 
 
¶2. (C) Bisogniero noted that Italy is in the process of 
relaunching its presence in Latin America in light of strong 
economic and cultural ties.  He explained that Italy did not 
view Latin America in terms of spheres of influence, but 
within a multilateral context including the United States, 
EU, and other major players.  Pointing out that not all 
leftist governments in Latin America are alike, Bisogniero 
said that the situation cannot simply be termed a shift to 
the left.  Italy would judge governments by what they do on 
issues such as education, economic and social issues, 
combating drug trafficking and organized crime, not solely by 
their ideology.  Bisogniero said that Latin America was 
notably absent from the multilateral picture, citing 
nonproliferation as an example of a major issue where the 
region did not play a role.  Spain, Italy, and France are the 
biggest players in the EU on Latin America issues, according 
to Bisogniero, and Italy is ready to do its part bilaterally 
and in the EU. 
 
¶3. (C) Concurring with Bisogniero's points, A/S Shannon noted 
that Italy's focus on multilateral engagement was a healthy 
approach.  He emphasized that Latin America is going through 
an important, delicate phase. Shannon said the United States 
was sometimes seen with suspicion and animosity in Latin 
America and would need partners from inside and outside of 
the region in its efforts.  Welcoming Italian and EU 
engagement, he explained the United States did not see this 
as competition. 
 
--------------------------------------------- - 
MERCOSUR and Venezuela: Politics or Economics? 
--------------------------------------------- - 
 
¶4. (C) Venezuela's entry into the Common Market of the South 
(MERCOSUR) was a political decision, Bisogniero observed, and 
there would be much work to come to integrate Venezuela into 
the group.  Given the Andean Community member's 
dissatisfaction with that organization, Bisogniero wondered 
if MERCOSUR would be the entity to attract the rest of the 
region (although Bolivian President Morales had hesitated to 
follow Venezuelan President Chavez).  With Venezuela's entry, 
Bisogniero noted that the new dynamic could see Brazil and 
Argentina limiting Venezuela, or Venezuela taking MERCOSUR in 
its direction.  Shannon remarked that the Venezuelan economy 
would be devastated if it opens to Brazilian and Argentine 
markets. 
 
¶5. (C) The question would be whether MERCOSUR would be an 
economic or political entity, with Argentina and Brazil 
seeing it as a way to control Chavez.  Bisogniero agreed that 
 
ROME 00000427  002 OF 004 
 
 
other South American countries could be a force to moderate 
Chavez.  Shannon also noted the difference between Brazil's 
view of South American integration, which is modern and 
intent on engaging a globalized economy, and Chavez's view, 
which is inward looking and designed to create a 
counterweight to the United States.  Although most countries 
seemed to share Brazil's perspective, Shannon observed that 
the region still had much to do on economic integration.  He 
also noted that Morales would not be willing to step out of 
the Andean Community alone, and didn't want to walk away from 
a potential free trade agreement with the United States. 
 
¶6. (C) Bisogniero lamented that Brazil had not been helpful 
in EU-MERCOSUR negotiations, which Italy was trying to push, 
hoping for an agreement by the middle of the year.  Shannon 
noted that the Brazilian MFA controlled the agenda and it 
viewed trade in terms of power and market access, not a way 
to increase competitiveness.  Both Shannon and Bisogniero 
agreed on the need to engage with the business community. 
 
¶7. (C) Chavez has decided not to have any contact with us, 
Shannon said, with energy the only relationship he couldn't 
break.  The United States would try to be quiet on Chavez, 
but highlighted the importance for countries with a 
relationship with Venezuela of engaging with civil society. 
Bisogniero noted that Italy's relationship with Venezuela was 
based on economic ties and the large Italian community. 
 
------------------------------------------ 
GRULAC UNSC Seat: Italy Supports Guatemala 
------------------------------------------ 
 
¶8. (C) Shannon shared our concerns regarding Venezuela's bid 
for the Latin America Group (GRULAC) seat on the UN Security 
Council (UNSC), and noted Guatemala's larger UN profile. 
Having Venezuela on the UNSC would be a big problem for us, 
Shannon argued.  He noted Venezuela's recent history of 
trying to hijack international organizations for its own 
purposes, entering with its own agenda.  Pointing to U.S. 
domestic concerns about the UN, Shannon said that having 
Venezuela on the UNSC would damage our ability to argue 
internally that the UN and UNSC are useful institutions.  In 
contrast to Venezuela, Shannon noted that Guatemala 
contributes to UN peacekeeping (recently loosing eight 
peacekeepers in the Congo) and has a larger overall 
commitment to the UN system.  Bisogniero responded that Italy 
was very much inclined to support Guatemala's candidacy.  He 
explained that Italy anticipated holding a UNSC seat during 
the same rotation and would not want any of its fellow 
members to obstruct proceedings.  He noted that Italy has not 
made this position public. 
 
--------------------------------- 
Bolivia: Common Ground on Morales 
--------------------------------- 
 
¶9. (C) Morales's recent trip to Cuba, Venezuela, Spain, 
France, Belgium, South Africa, China, and Brazil was very 
important for the newly elected leader's understanding of 
what it means to be the president of Bolivia, according to 
Shannon.  Citing Morales's wide margin of victory, Shannon 
noted that it was necessary to understand and respect what 
was happening in Bolivia. He emphasized that we were entering 
the relationship without preconceptions and President Bush 
had called Morales to say we were prepared to talk. 
Morales's message to Shannon had been that he would be 
prepared to work with us.  However, Shannon noted, the 
relationship would not be easy--and would be even harder for 
Morales, especially managing his radical supporters.  We all 
have to be there, Shannon said, and we have to talk to 
Morales.  He cited Brazil and Argentina's agreement to act as 
"chaperones" of the Morales-Chavez relationship as an example. 
 
ROME 00000427  003 OF 004 
 
 
 
¶10. (C) Noting the wide media coverage of the election, 
Bisogniero observed that Morales seemed to have responded 
positively to messages from the U.S., EU, and others.  He 
characterized Morales as pragmatic vs. the 
ideologically-driven Chavez and Castro, noting particularly 
his restraint in not following Chavez blindly into MERCOSUR. 
Since Austria does not have diplomatic representation in La 
Paz, Italy will hold the EU Presidency for Bolivia during the 
next six months.  Bisogniero praised Ambassador Zanini as 
skilled and experienced (he has been in La Paz for three 
years) and noted that he has been developing contacts in the 
new government.  Highlighting the good relationship between 
our Ambassadors in La Paz and our many common views on 
Bolivia, Bisogniero thought it would be possible to work 
together more closely in approaching Morales.  The EU had 
decided to take a wait-and-see approach, according to 
Bisogniero, and would reinforce Solana's message. 
 
--------------------------------------------- 
Argentina: Reestablishing High-Level Dialogue 
--------------------------------------------- 
 
¶11. (C) Expressing concerns regarding Argentina's IMF payoff, 
Bisogniero questioned the sustainability of current economic 
growth.  Although the issue of Argentine bond restructuring 
which affected many Italian pensioners remains a source of 
tension in Italy-Argentina relations, Bisogniero noted that 
cooperation in other sectors like science and technology 
remained good, and Rome was working to reestablish high-level 
political dialogue with Buenos Aires.  He also indicated that 
Economy Minister Roberto Lavagna might visit Rome in late 
March.  Shannon noted that Argentina had run the Summit of 
the Americas for a domestic audience, which had hurt them 
internationally.  However, during a subsequent visit to 
Buenos Aires, Shannon said Kirchner came as close as possible 
to apologizing and U.S.-Argentina relations are back on track. 
 
--------------------------------------------- -------------- 
Nicaragua: Italy Agrees on Need for International Observers 
--------------------------------------------- -------------- 
 
¶12. (C) Shannon described the upcoming election in Nicaragua 
as an opportunity to change the Ortega-Aleman political 
landscape, and emphasized the need for international 
observers now to ensure the Electoral Authority is laying the 
groundwork for a free and fair election.  Removing the 
possibility of a U.S. deal with Aleman, Shannon said we could 
live with either of the two candidates.  Bisogniero responded 
that Italy was pushing the EU to send an electoral 
commission.  (NOTE: At their February 6 Commission on Latin 
America (COLAT) meeting, the EU agreed unanimously on the 
need for an election observer mission to Nicaragua.  The next 
step would be to include Nicaragua on the list of priority 
countries for monitoring in 2006.) 
 
--------------------------------------------- ---------- 
Cuba: Human Rights Situation Worse, Sticking to EU Line 
--------------------------------------------- ---------- 
 
¶13. (C) The human rights situation in Cuba is unacceptable 
and getting worse, Bisogniero said, in spite of the EU policy 
opening.  Italy would continue to engage in critical dialogue 
with the GOC, according to Bisogniero, and would intensify 
contact with the opposition, staying within the EU common 
position.  The MFA has summoned the Cuban charge to protest 
the denial of exit visas to the Damas en Blanco and Oswaldo 
Paya, both invited by the European Parliament, and will call 
in the Ambassador when he arrives.  Bisogniero noted that 
Austria does not want to put Cuba on the EU agenda before the 
policy review in June. 
 
 
ROME 00000427  004 OF 004 
 
 
¶14. (C) Shannon noted that Castro's succession strategy would 
require more repression for it to be successful, and that the 
EU and others should not expect to soften the regime through 
engagement.  He emphasized that the U.S. goal was to open 
political space in Cuba and involve the Cuban people, who 
should choose the next government, not the security forces. 
Bisogniero inquired about the focus of the second Commission 
for Assistance to a Free Cuba report. Shannon explained that 
it would cover the transition period itself, which was not 
discussed in last year's document.  He highlighted that a 
common approach on the transition, with the EU providing 
points of its own, would help reassure the Cuban people that 
the international community would be there to support them. 
Shannon praised the European invitations to Paya and the 
Damas as a positive way to raise their profile both 
internationally and in Cuba, and encouraged Italy to keep 
engaging with the opposition. 
 
--------------------------------------------- --- 
Haiti: Italy Pushing for Aid, CARICOM Membership 
--------------------------------------------- --- 
 
¶15. (C) Italy is working within the EU to release 75 million 
Euros in aid to Haiti that have been blocked pending 
elections.  Bisogniero explained that Italy would continue to 
push for the aid money and for the inclusion of Haiti in the 
Caribbean Community and Common Market (CARICOM) after the 
election.  He said that Italy saw a need for the UN 
Stabilization Mission in Haiti (MINUSTAH) to remain until the 
end of the summer.  Shannon emphasized that the United States 
would work with whoever won the election and that the 
important thing was to have elections, noting that it would 
be difficult for countries contributing to MINUSTAH to 
maintain their presence without elections.  The GOI was 
providing humanitarian assistance to the Dominican 
Republic-Haiti border area, according to Bisogniero, seeing 
it as an important long-term stability issue. 
 
------------- 
Chile, Canada 
------------- 
 
¶16. (C) Italy had been working closely with Chile, which it 
saw as a platform for trade with Latin America since had the 
best agreement with the EU among the Latin American 
countries.  Given the timing of the Chilean and Italian 
elections, Bisogniero said, Italy might send a deputy 
minister or parliament member to represent the GOI at the 
inauguration.  He observed that Canada's new minority 
government might have a tough time.  Shannon noted that the 
new Harper government would bring a friendlier tone to the 
bilateral relationship, but would most likely be careful in 
its relations with the United States, working for a 
productive relationship without seeming to cave to U.S. 
interests. 
 
------- 
Comment 
------- 
 
¶17. (C) Italy seemed receptive to the message of cooperation 
in the region, which ties into MFA efforts to move Latin 
America up on the Italian agenda.  The GOI appeared 
particularly interested in working more closely on Bolivia 
issues, and was open to further suggestions on US-EU 
cooperation for a Cuba transition agenda. 
 
¶18. (U) This cable was cleared by A/S Shannon. 
SPOGLI