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PP RUEHLA
DE RUEHMD #1186/01 3121256
ZNR UUUUU ZZH
P 071256Z NOV 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 5554
INFO RUEHLA/AMCONSUL BARCELONA PRIORITY 3642

UNCLAS SECTION 01 OF 04 MADRID 001186 
 
SENSITIVE 
SIPDIS 
 
STATE FOR H, AND EUR/WE 
 
E.O. 12958: N/A 
TAGS: ELTN OVIP PINS PREL PTER SP OREP AMGT AFIN
SUBJECT: SCENESETTER FOR CODEL SIRES' NOVEMBER 13-16 VISIT 
TO SPAIN 
 
 ¶1. (SBU) Representative Sires, Embassy Madrid looks forward 
to your and your delegation's visit to Madrid and Barcelona. 
The Spanish are eager to share their assessment of political 
developments, regional issues, and bilateral relations with 
you.  The recent US national election has been closely 
followed here in Spain, where a strong atmosphere of goodwill 
and optimism has emerged for increasingly closer bilateral 
relations.  Your meetings with Spanish officials will afford 
good opportunities to shore up our strong bilateral 
counterterrorism relationship. 
 
¶2. (SBU) Your visit will provide a key opportunity to 
highlight the importance we place on the U.S.-Spain 
relationship, especially in the fields of counterterrorism 
and transportation security.  Spain is an important friend 
and ally of the U.S., and we value its cooperation.  Spain is 
a member in good standing of all major non-proliferation 
organizations and regimes and understands the importance of 
international cooperation in our joint  efforts.  The fight 
against terrorism, narcotics, and human trafficking forms one 
of the cornerstones of our bilateral relationship, and 
Spanish troops are carrying out important missions in 
countries such as Afghanistan and Lebanon.  Spain has long 
fought a domestic terrorist threat from the Basque terrorist 
group ETA and suffered tragically from Islamic extremist 
terrorism in the 2004 Madrid train bombings.  We have a great 
deal in common when it comes to counterterrorism and law 
enforcement, and we need to be innovative in finding new and 
improved avenues for bilateral cooperation with a trusted 
multilateral ally against the common threats we face. 
 
//COUNTERTERRORISM COOPERATION// 
 
¶3. (SBU) Spain is an al-Qaeda target and a critical player in 
U.S.-EU counterterrorism efforts due to its proximity to the 
Maghreb and a population that includes more than one million 
Muslims, mostly immigrants.  Senior Al-Qaeda leaders often 
call for attacks to recapture the medieval "Al Andalus," and 
the Spanish enclaves of Ceuta and Melilla in North Africa are 
a fixation for Al-Qaeda in the Maghreb and other extremists. 
On March 11, 2004, Madrid suffered bloody train bombings 
perpetrated by Islamic extremists.  The coordinated attacks 
killed 191 persons and injured nearly 2,000 more, making it 
the second-deadliest terror attack in European history, after 
the Lockerbie bombing.  The Spanish government considers the 
threat from Islamic terrorism to be one of its top national 
security priorities and has identified numerous Islamic 
extremist groups operating within its borders.  The Spanish 
are actively pursuing Islamic extremism terrorism-related 
investigations and have scores of suspects in jail. Public 
opinion polling shows nearly three-quarters of Spaniards are 
worried about the threat of Islamic fundamentalism, more than 
in the U.S. or Europe as a whole. 
 
¶4. (SBU) Bilateral cooperation is strong.  Spain pursues an 
aggressive agenda in law enforcement, judicial, and 
information-sharing efforts, at least with us.  One example 
is the HSPD-6 agreement we signed in 2007 to facilitate the 
sharing of information between our national counterterrorism 
authorities.  Spain also is a founding member of the 
Proliferation Security Initiative and has participated 
actively during its five-year existence.  Spain, which is a 
great believer in the Global Initiative to Combat Nuclear 
Terrorism (GI), has hosted a number of GI events in 2008 and 
has been at the forefront of efforts to expand membership. 
Spanish officials recently have given indications that Madrid 
wants to deepen bilateral cooperation -- especially emergency 
preparedness operational exercises -- to combat nuclear 
terrorism in the coming year. 
 
¶5. (SBU) The Consulate General in Barcelona is increasing its 
staff size as part of an inter-agency initiative to host a 
jointly-coordinated counterterrorism, anti-crime, and 
intelligence center to work with our Spanish and Catalan 
hosts in combating the target-rich environment of terrorist 
and criminal activities in the region. Barcelona, Spain's 
second largest city and a key commercial center and tourist 
destination, is the nexus of a host of illicit activities 
that threaten U.S. interests.  Barcelona's location near the 
Maghreb makes it one of Europe's main entry points for 
people, goods and money.  U.S. and Spanish officials 
increasingly see the links between terrorist networks and 
criminals involved in the contraband of goods, drug 
trafficking, money laundering, human smuggling, and document 
falsification. The Catalonia region has been the site of more 
than a dozen high-profile raids on suspected radical 
Islamists since 9/11, including the dismantlement in January 
2008 of a cell operating out of Barcelona that has ties to 
Al-Qaeda and intended to attack the city's subway system. 
 
MADRID 00001186  002 OF 004 
 
 
 
//TRANSPORTATION SECURITY// 
 
¶6. (U) Rail Security:  The GOS places a strong budgetary 
emphasis each year on the expansion of its railways, 
particularly on the AVE high-speed train rail network.  The 
Ministry of Infrastructure's strategic plan envisions that by 
2020, 90 percent of Spain's population will have access to a 
high-speed rail connection within 50 kilometers of their 
homes.  This emphasis is fueled by Spain's desire to reduce 
high levels of CO2 emissions caused by private vehicles and 
to improve Spain's transport competitiveness within the EU. 
Railway safety is a particular concern for the GOS following 
the deadly commuter rail train bombings in Madrid in 2004. 
The extremists who conducted those attacks also placed 
explosives along the Madrid-Seville AVE rail line less than a 
month later, although an AVE security guard discovered the 
bomb and a second catastrophe was averted.  Under the 
Ministry of Infrastructure, two public enterprises coordinate 
to provide train service and safety to Spain's population. 
ADIF is responsible for the tracks and infrastructure, and 
RENFE is responsible for the trains and operations. 
High-speed AVE lines currently connect Madrid to Seville, 
Malaga and Barcelona.  Future AVE projects are slated to link 
a number of other cities, and to eventually link Spain with 
Portugal and France.  ETA, however, opposes the Ave's 
expansion into Spain's autonomous Basque Country region, and 
has conducted multiple attacks against the companies and 
machinery involved in its construction over the past two 
years. The domestic terrorist group continues to cite the 
project as a prospective target for future attacks. 
 
¶7. (SBU) Port Security:  Spain participates in the Container 
Security Initiative (in the ports of Algeciras, Barcelona, 
and Valencia) and the Megaports Initiative to detect 
radioactive cargo (in the port of Algeciras with anticipated 
expansion to Barcelona and Valencia next year).  The 
Department of Homeland Security has a TDY team at full 
strength that is working with host country officials on the 
Container Security Initiative (CSI) at the Port of Barcelona 
-- one of Europe's busiest, facilitating shipping throughout 
the Mediterranean -- to screen U.S-bound shipments before 
they leave port.  These officers screen cargo coming from and 
going to US ports and report considerable progress in working 
with their Spanish counterparts in targeting suspicious cargo 
destinations and in identifying anomalies in shipping 
containers.  Separately, the Department of Energy is working 
with Spanish Customs and hopes to expand to Barcelona -- 
which is also the largest cruise port in the Mediterranean -- 
by the end of calendar year 2009 the Megaports program to 
detect illicit nuclear and radioactive materials. 
 
//POLITICAL BACKGROUND AND BIO'S ON KEY INTERLOCUTORS// 
 
¶8. (SBU) President Zapatero's center-left Spanish Socialist 
Workers' Party (PSOE) was the victor in the March 9 general 
election, although it remains a minority government (seven 
seats shy of a working majority in the 350-seat lower house 
of parliament) that is dependent upon the support of other 
parties to pass legislation. Zapatero kept most of the key 
players in his Cabinet in their posts. First Vice President 
and Minster of the Presidency Maria Teresa Fernandez de la 
Vega is Zapatero's political deputy, while Second Vice 
President and Minister of the Economy Pedro Solbes acts as 
economic deputy. Miguel Angel Moratinos remained in place as 
Minister of Foreign Affairs, and his former DG for Terrorism, 
Nonproliferation, and Arms Control, Angel Lossada, was 
promoted to the number two slot. Minister of Interior Alfredo 
Perez Rubalcaba, was retained in his post, as was Magdalena 
Alvarez, the Minister of Development (the counterpart to the 
US Secretary for Transportation).  The Defense portfolio was 
among the Cabinet posts that were shuffled following the 
start of Zapatero's second administration.  Carme Cachon 
became Spain's first-ever female Minister of Defense. 
 
¶9. (SBU) You have an appointment scheduled with Foreign 
Minister Moratinos, who is the second-longest serving Foreign 
Minister since Spain's democratization.  One of the key 
players behind the Madrid 1991 Peace Conference and a former 
EU Envoy for the Middle East Peace Process, he considers 
himself an expert in Middle East policy.  A career diplomat, 
Moratinos joined the PSOE in 2000 and in 2004 and 2008 won 
election as a Congressional delegate representing his 
hometown of Cordoba.  He is fluent in English. 
 
¶10. (SBU) The delegation is also confirmed to meet with 
Interior Minister Rubalcaba, one of the PSOE's most senior 
figures and a Cabinet heavyweight.  Interior Minister since 
2006, he has long been Zapatero's main advisor on terrorism 
 
MADRID 00001186  003 OF 004 
 
 
issues.  He is also one of the six members of Zapatero's core 
team that meets once a week to formulate policy.  Rubalcaba 
is regarded as a skilled negotiator and parliamentarian.  One 
of Rubalcaba's toughest jobs is to continue efforts to 
overcome the historic rivalry between Spain's principal law 
enforcement entities, the Civil Guard and National Police, 
both of which fall under his direction.  Rubalcaba earned 
praise for how he handled the aftermath of ETA's bombing of a 
Madrid airport parking garage in late 2006 and -- over 
Zapatero's initial hesitations -- has adopted a hard line 
against ETA since then. He speaks some English. 
 
¶11. (SBU) The Embassy is seeking an appointment for the 
delegation with Bernardino Leon, Moratinos' highly respected 
former Deputy Foreign Minister (2004-08) whom Zapatero 
personally recruited as his Secretary General of the Office 
of the President in April of this year.  A longtime Embassy 
contact who projects a cooperative demeanor and focuses on 
points of agreement, Leon in his new post has assumed many of 
the responsibilities formerly held by Spain's equivalent to 
the National Security Adviser.  Zapatero has tasked Leon with 
strengthening Spain's role in foreign policy in general, and 
with the United States in particular.  Leon speaks fluent 
English. 
 
¶12. (SBU) Likewise, the Embassy has requested a meeting for 
the delegation with Development Minister Alvarez, who is 
responsible for the government's 15-year, 250-billion euro 
plan to expand the AVE and road networks, which the GOS says 
will give Spain more kilometers of high-speed rail lines than 
any other country.  In her current post since 2004,  she was 
a surprise choice to retain the position during Zapatero's 
second term, but her fierce loyalty to him may have won the 
day. Alvarez has had a contentious tenure, due in part to 
delays in late 2007 and early 2008 in bringing the AVE to 
Barcelona, which finally became operational on the eve of 
Spain's 2008 election.  In late 2007, the Catalan legislature 
approved a motion calling for her resignation, as did the 
national Senate.  A similar motion in the more influential 
lower house of the national parliament failed by only three 
votes.  She understands and speaks some English but prefers 
not to use it in meetings, 
 
¶13. (SBU) In Barcelona, the Consulate General is seeking to 
confirm a meeting with Josep Lluis Carod-Rovira, Vice 
President of Catalonia, where a tripartite government has 
ruled since 2003. The coalition is led by the Catalan wing of 
the PSOE, with support from two radical leftist parties: 
Carod-Rovira's Republican Left of Catalonia (ERC) -- which 
advocates the peaceful independence of Catalonia from Spain 
-- and the Catalan wing of the United Left (IU). 
Carod-Rovira and the ERC have been a provactive junior 
partner, with Carod Rovira causing a controversy in early 
2004 for meeting with members of ETA about an offer to strike 
a truce in Catalonia.  He resigned his additional post as 
President of the ERC following the party's poor performance 
in the March 2008 national election.  Carod-Rovira has been 
the driving force to open a Catalan representational office 
in New York City -- an initiative whose pricetag has sparked 
public criticism -- and is expected to travel there for the 
opening ceremony in January 2009.  He does not speak English. 
 
 
//ECONOMIC CONTEXT// 
 
¶14. (SBU) Spain enjoyed one of the fastest growing economies 
in Europe for roughly 15 years, but growth has slowed 
significantly and Spain is projected to experience negative 
growth in 2009.  A housing boom that contributed greatly to 
growth for several years ended abruptly last year, and prices 
are stagnating, construction slowing, and unemployment and 
inflation rising.  U.S. investment has long been important to 
 the economy (more so than bilateral trade), but the tables 
have turned.  In 2007, Spain was the fourth-largest foreign 
investor in the U.S., with particular emphasis in banking, 
construction, and renewable energy.  Since Zapatero was 
re-elected, the GOS has faced a deepening economic slump. 
Surging unemployment is at 11.3 percent.  Inflation is at 3.5 
percent.  The economy may already be contracting, and 2009 is 
expected to be an even more difficult year.  Months of 
worse-than-predicted economic news have led to widespread 
criticism of Zapatero and his economic policymakers for their 
upbeat predictions during the campaign and for having 
downplayed the economic difficulties long after many others 
were saying Spain was in a crisis.  Public skepticism has 
been aggravated by the failure of a series of GOS measures to 
noticeably affect the slowdown and by Zapatero's efforts to 
blame the U.S. subprime mortgage crisis for all of Spain's 
troubles.  Now that the budget surplus of the last four years 
 
MADRID 00001186  004 OF 004 
 
 
has become a rapidly growing deficit, tensions have 
heightened over regional government financing issues and the 
proposed austerity budget for 2009. 
 
//GENERAL MILITARY AND DIPLOMATIC COOPERATION// 
 
¶15. (SBU) Spanish military cooperation is important to the 
U.S.  The southern Spanish bases of Rota and Moron are 
strategic hubs, midway between the U.S. and theaters of 
operation in Afghanistan and Iraq.  Spain has troops in 
Lebanon (roughly 1,100), Afghanistan (750), Kosovo (500), 
Bosnia (260), and a smattering of others in various UN & EU 
observer missions.  Elsewhere on the diplomatic front, Spain 
in recent years has more often been a follower than a leader, 
looking to stay within EU consensus on issues such as Iran 
and missile defense.  Spain has yet to recognize Kosovo and 
is so far refusing to train or fund Kosovar security forces. 
Nonetheless, its commitment to KFOR remains firm. Spain is 
supportive of U.S. efforts towards Middle East peace.  Driven 
by the twin threats of terrorism and illegal immigration, 
Spain is also increasing its engagement with the countries of 
North and Western Africa.  Spain invests heavily in Latin 
America and wields significant influence there.  Like the 
U.S., Spain wants strong democratic and free market 
institutions in the region.  We have sharply differing views 
on Cuba.  Spain believes it can encourage change via 
engagement.  We take every opportunity to remind the Spanish 
that the Cuban regime is only interested in survival and that 
Cuban dissidents need and deserve the active and visible 
support of democracies everywhere.  On Venezuela, Spain 
appears to be going ahead with the sale of four ocean-going 
patrol ships and four Coast Guard-type high seas patrol ships 
(plans to sell aircraft to Venezuela were scuttled when the 
U.S. objected to the transfer of U.S. technology in the 
aircraft). 
 
//PERSONAL SECURITY// 
 
¶16. (U) In general, Spain is safe.  However, Madrid, 
Barcelona and other large cities attract a large number of 
criminals and pickpockets and frequent incidents of crime of 
opportunity against the unwary do occur.  It is best to carry 
only essential items including a photocopy of your passport's 
photo page.  Visitors can protect themselves against crime by 
being street-smart, alert and aware of their surroundings. 
Travelers are encouraged to review the most recent Worldwide 
Caution issued by the Department of State.  As the Department 
of State continues to develop information on any potential 
security threats to Americans overseas, it shares credible 
threat information through its Consular Information Program 
documents, available on the Internet at 
http://travel/state.gov.  Additional information regarding 
safety and security in Spain is available on the U.S. 
Department of State's website (www.embusa.es). 
 
//CONCLUSION// 
 
¶17. (U) Again, we are looking forward to your visit.  Amid 
the current atmosphere in Spain of increased goodwill toward 
the United States, we need to set the stage for 
ever-improving cooperation in the fight against terrorism. 
We face common threats; the Spanish Ministry of Foreign 
Affairs, law enforcement and military services are capable, 
and Spain sits in a strategic location.  There is much we can 
do together. 
AGUIRRE