VZCZCXRO6407
PP RUEHFL RUEHNP
DE RUEHRO #1915 1811621
ZNR UUUUU ZZH
P 301621Z JUN 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 5244
INFO RUEHCV/AMEMBASSY CARACAS PRIORITY 0740
RUEHFR/AMEMBASSY PARIS PRIORITY 2023
RUEHMD/AMEMBASSY MADRID PRIORITY 1701
RUEHMIL/AMCONSUL MILAN 7319
RUEHFL/AMCONSUL FLORENCE 1545
RUEHNP/AMCONSUL NAPLES 1615

UNCLAS ROME 001915 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PARM ETTC ETRD SP FR VE IT
SUBJECT: "OOPS I DID IT AGAIN" - FINMECCANICA SEEKS USG 
VIEWS ON PROPOSED ARMS SALE TO VENEZUELA 
 
REF: ROME 1824 
 
Sensitive but unclassified.  Not for Internet distribution. 
 
¶1.  This is an action request.  Please see paragraph 7. 
 
¶2.  (U) Summary.  A/Ecmin met June 26 with Camillo Pirozzi, 
Finmeccanica's Head of Public Affairs and Institutional 
Relations.  Pirozzi requested the meeting to inform the USG 
of Finmeccanica's interest in selling naval guns to the 
Venezuelan navy for use in patrol boats.  As reported reftel, 
it is Finmeccanica's policy to seek USG approval before 
entering into contracts in states of concern or in cases 
where the USG might object for foreign policy reasons.  End 
summary. 
 
¶3.  (SBU) Finmeccanica subsidiary Oto Melara is negotiating a 
contract for the sale of eight 76mm guns to be installed on 
patrol boats (four coastal patrol boats and four oceanic 
patrol boats) being built by Navantia, a Spanish shipbuilder, 
for the Venezuelan navy.  According to a Navantia press 
release, the boats will be used for coastal and oceanic 
patrols, including patrols of Venezuela's exclusive economic 
zone, fishing patrols, protection against smuggling and drug 
traffic, and general "defense of the maritime traffic."  The 
contract for construction of the boats is worth 12.5 billion 
euros, and the contract for the guns, 50 million euros. 
Thales, a French company, is providing a combat management 
system for the boats in a contract estimated to be worth 230 
million euros. 
 
¶4.  (SBU) As required by Italian law, Finmeccanica obtained 
GOI authorization to enter into negotiations for the sale of 
the guns to the Venezuelan navy.  If Oto Melara wins the 
contract, the firm must obtain a separate license from the 
Ministry of Foreign Affairs to export of guns to Venezuela. 
The guns provided would be either model 76/62 SR or 76/62 C. 
The 76mm guns mounted at the front of the boat will 
complement 35mm or 40mm guns mounted in the rear. 
 
¶5.  (SBU) Pirozzi stated that the guns in question "are not 
very sophisticated," and characterized them as "not an 
excessively offensive weapon," due to their relatively short 
range.  He also noted that there are already similar Russian- 
and Chinese-origin guns in the Venezuelan inventory and that 
if Oto Melara does not go forward with this sale, another 
supplier will likely step forward. 
 
¶6.  (U) Pirozzi emphasized repeatedly that Finmeccanica 
values its relationship with the USG and the business it does 
with the USG and U.S. companies.  He said it is Finmeccanica 
policy to confer with the USG on sales or contracts in states 
of concern to which the USG might object.  "Finmeccanica will 
not proceed without positive U.S. government views on this 
sale." 
 
¶7.  (SBU) Embassy Rome requests guidance on how to respond to 
Finmeccanica's request for USG views of this sale. 
Specifically, how would the Department view plans by a U.S. 
corporation to export similar guns for use by the Venezuelan 
navy?  To encourage Finmeccanica to continue its practice of 
consulting with the USG on sales of concern, we request 
Department's soonest possible front channel response to this 
action request.  End action requested. 
SPOGLI