VZCZCXRO7540
OO RUEHFL RUEHNP
DE RUEHRO #1996 1940920
ZNR UUUUU ZZH
O 130920Z JUL 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5340
INFO RUEHCV/AMEMBASSY CARACAS PRIORITY 0742
RUEHMD/AMEMBASSY MADRID PRIORITY 1704
RUEHFL/AMCONSUL FLORENCE PRIORITY 1568
RUEHMIL/AMCONSUL MILAN PRIORITY 7353
RUEHNP/AMCONSUL NAPLES PRIORITY 1642
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS ROME 001996 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS TO ISN/CATR, EUR/PRA, AND EUR/WE 
 
E.O. 12958: N/A 
TAGS: ETRD ETTC PARM SP VE IT
SUBJECT: ARMS SALES TO VENEZUELA 
 
REF: A. STATE 112031 
 
     ¶B. STATE 110041 
     ¶C. ROME 01915 
 
Sensitive but unclassified.  Not for internet distribution. 
 
¶1. (SBU) Summary. A/ECMIN met July 7 with Simone Bemporad, 
Finmeccanica's Senior Vice President for Media Relations and 
International Affairs, and Camillo Pirozzi, Head of Public 
Affairs and Institutional Relations, to discuss 
Finmeccanica's proposed sale of naval guns to the Venezuelan 
navy.  A/ECMIN orally delivered Ref A talking points, which 
Pirozzi and Bemporad said they would take back to 
Finmeccanica.  While they were receptive to our points, 
Bemporad and Pirozzi stopped short of saying Finmeccanica 
would not pursue this sale.  Post will report delivery of Ref 
B talking points regarding Finmeccanica's contract in Iran 
septel.  End Summary. 
 
¶2. (SBU) A/ECMIN began by thanking Finmeccanica for 
consulting the USG on the proposed sale. Drawing on Ref A 
points, she said that President Chavez was becoming 
increasingly authoritarian and was acquiring weapons in 
excess of Venezuela's legitimate self-defense needs.  She 
further noted the USG had demarched the Government of Spain 
(GOS) and Navantia (the Spanish company building the patrol 
boats on which the guns will be installed) on supplying arms 
to Venezuela.  She said we had not told the GOS clearly that 
we would not allow U.S. exports in support of the 
construction of these patrol boats. 
 
¶3. (SBU) A/ECMIN also noted the USG had designated Venezuela 
as not fully cooperating with U.S. anti-terrorism efforts 
and, for this reason, will not permit the export or 
retransfer of defense articles or defense services to 
Venezuela effective October 1, 2006.  Bemporad took A/ECMIN's 
points on board, stating "Now we have an answer," and said 
that he would relay these points to senior Finmeccanica 
management. 
 
¶4. (SBU) Comment. Although Finmeccanica sought USG views on 
the proposed sale, we note that neither Bemporad nor Pirozzi 
explicitly said Finmeccanica would not go forward with the 
sale.  As reported Ref C, it is Finmeccanica policy to seek 
USG approval before entering into contracts with states of 
concern or in cases where the USG might object for foreign 
policy reasons.  We asked Finmeccanica to inform us of the 
final decision on the proposed sale, and we will follow up 
with Finmeccanica.  End comment. 
SPOGLI