Identifier
Created
Classification
Origin
02ROME1393
2002-03-19 11:59:00
CONFIDENTIAL
Embassy Rome
Cable title:  

ALBANIAN PM MAJKO'S MEETING WITH PM BERLUSCONI:

Tags:  AL ENRG IT PHUM PREF PREL 
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C O N F I D E N T I A L SECTION 01 OF 02 ROME 001393 

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E.O. 12958: DECL: 03/19/2012
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TAGS: AL ENRG IT PHUM PREF ENRG IT PHUM PREF PREL PRELAL
SUBJECT: ALBANIAN PM MAJKO'S MEETING WITH PM BERLUSCONI:
ENERGY; TOURISM MAIN POINTS OF DISCUSSION

CLASSIFIED BY: POLITICAL MINISTER-COUNSELOR TOM COUNTRYMAN.
REASON: 1.5 (B)(D).

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001393

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E.O. 12958: DECL: 03/19/2012
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PAGE 02 ROME 01393 01 OF 02 191241Z
TAGS: AL ENRG IT PHUM PREF ENRG IT PHUM PREF PREL PRELAL
SUBJECT: ALBANIAN PM MAJKO'S MEETING WITH PM BERLUSCONI:
ENERGY; TOURISM MAIN POINTS OF DISCUSSION

CLASSIFIED BY: POLITICAL MINISTER-COUNSELOR TOM COUNTRYMAN.
REASON: 1.5 (B)(D).


1. (C) SUMMARY: ON MARCH 12, ALBANIAN AMBASSADOR TO ITALY
PELLUMB XHUFI GAVE POLITICAL MINISTER-COUNSELOR TOM
COUNTRYMAN AND POLOFF JIM DONEGAN A READOUT ON ALBANIAN PRIME
MINISTER PANDELI MAJKO'S MARCH 6 MEETING IN ROME WITH PM
BERLUSCONI. ACCORDING TO XHUFI, THE MEETINGS FOCUSED ON TWO
ISSUES: ITALY'S COMMITMENT TO HELP ALBANIA TO SOLVE ITS
CONTINUING ENERGY CRISIS, AND DEVELOPMENT OF THE ALBANIAN
TOURISM SECTOR. THE ITALIAN MFA CONFIRMED THAT A TEAM FROM
THE ITALIAN ELECTRICITY COMPANY ENEL WOULD VISIT ALBANIA
DURING THE WEEK OF MARCH 25. END SUMMARY.


2. (C) ACCORDING TO XHUFI, AN INDICATION OF HOW IMPORTANT
ITALY IS TO ALBANIA'S FOREIGN RELATIONS IS THE FACT THAT THIS
WAS MAJKO'S FIRST OFFICIAL FOREIGN VISIT SINCE TAKING OFFICE.
THE PMS DISCUSSED ALBANIA'S CONTINUING SERIOUS ELECTRICITY
GENERATION AND DISTRIBUTION PROBLEMS. BERLUSCONI PROMISED
ITALIAN ASSISTANCE FOR THE SHORT AND LONG TERM. FIRST, A
TEAM FROM ENEL (ENTE NAZIONALE PER L'ENERGIA ELETTRICA) WOULD
VISIT ALBANIA DURING THE WEEK OF MARCH 25 TO DETERMINE HOW TO
PROVIDE RELIEF FOR THE COMING MONTHS. THIS WOULD BE FOLLOWED
UP WITH MORE ASSISTANCE DESIGNED TO SOLVE THE ENERGY
INFRASTRUCTURE PROBLEM IN ALBANIA FOR THE LONG TERM.


3. (C) XHUFI SAID THAT BERLUSCONI HAD ALSO PROMISED ITALIAN
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PAGE 03 ROME 01393 01 OF 02 191241Z
ASSISTANCE FOR ALBANIA'S NASCENT TOURISM INDUSTRY. FOR
INSTANCE, BERLUSCONI PROMISED TO TALK TO HIS CONTACTS IN THE
MEDIA INDUSTRY REGARDING TELEVISION AND PRINT ADVERTISING
CAMPAIGNS TO MAKE ITALIANS MORE AWARE OF THE TOURISM
OPPORTUNITIES IN ALBANIA. BERLUSCONI EVEN PROMISED TO VISIT
(NON-OFFICIALLY) ALBANIA HIMSELF TO HELP PROVIDE SOME

PUBLICITY FOR THE CAMPAIGN.


4. (C) XHUFI COMMENTED THAT MORE INVESTMENT, IN GENERAL,
WAS NEEDED FROM EUROPEAN COUNTRIES LIKE ITALY IN ORDER TO
HELP STABILIZE THE ECONOMIC AND POLITICAL SITUATION IN
ALBANIA. FOR INSTANCE THERE IS ONLY "ONE-HALF OF AN ITALIAN
BANK" (THE ITALO-ALBANIAN BANK) IN TIRANA, WHICH CANNOT
SUPPORT MAJOR ITALIAN INVESTMENT. IN COMPARISON, THERE ARE 5
MAJOR GREEK BANKS PROVIDING SUPPORT TO INVESTORS FROM GREECE.
ITALY ALSO NEEDS TO BECOME MORE INVOLVED IN THE
PRIVATIZATION PROCESS IN ALBANIA. HE SAID THAT BERLUSCONI
HAD PROMISED MAJKO THAT HE WOULD URGE SOME OF HIS CONTACTS IN
THE TELECOM SECTOR TO GIVE A CLOSE LOOK TO ALBANIA, BUT MAJKO
REALIZES THAT ITALIANS WILL BE CAUTIOUS, GIVEN THAT SOME
OTHER INVESTMENTS BY ITALIAN COMPANIES IN THE TELECOM SECTOR
IN OTHER REGIONS HAD FAILED.


5. (C) XHUFI ACKNOWLEDGED THAT THE MOST IMPORTANT OBSTACLE
TO INVESTMENT IN ALBANIA WAS ENERGY, FOLLOWED CLOSELY BY
CONCERN AMONG INTERNATIONAL INVESTORS OVER TAXATION AND
CORRUPTION ISSUES. ALBANIA WAS WORKING HARD TO IMPROVE IN
THESE AREAS. HE CITED THE EU ACCESSION AND WTO PROCESSES AS
DRIVERS FOR THIS IMPROVEMENT, AND NOTED THE FREE TRADE ZONES
WITH MACEDONIA AND CROATIA AS SIGNS OF PROGRESS.

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PAGE 04 ROME 01393 01 OF 02 191241Z

6. (C) XHUFI SAID THAT HE WAS PLEASED WITH THE INCREASED
COOPERATION BETWEEN ITALY AND ALBANIA ON TRAFFICKING ISSUES,
NOTING THAT ALBANIAN ORIGIN HUMAN TRAFFICKING INTO ITALY WAS
ONE-QUARTER OF THE PREVIOUS YEAR'S LEVEL. HE EMPHASIZED THE
NEED FOR EVEN CLOSER COOPERATION AMONG LAW ENFORCEMENT
AUTHORITIES THROUGHOUT THE REGION IN DEALING WITH
TRAFFICKING/SMUGGLING ISSUES, PARTICULARLY SINCE MUCH OF THE
ALBANIA-ITALY ILLEGAL IMMIGRATION PROBLEM INVOLVED THIRD
COUNTRY NATIONALS. THERE MUST BE A "REGIONAL LEGAL
FRAMEWORK," AND OTHER COUNTRIES OF ORIGIN FOR TRAFFICKING
WOULD HAVE TO "ACT RESPONSIBLY." NOTE: OUR CONVERSATION WITH
XHUFI TOOK PLACE A FEW DAYS AFTER SIX ALBANIANS HAD DROWNED
ATTEMPTING TO MAKE A CLANDESTINE CROSSING OF THE ADRIATIC.
WE WILL REPORT MORE ON THAT TOPIC SEPTEL. END NOTE.


7. (C) DURING A FOLLOW UP TO THIS READOUT, MFA BALKAN
OFFICE DIRECTOR MAURIZIO MASSARI CONFIRMED THE ENEL VISIT,
AND SAID THAT MFA UNDER SECRETARY OF STATE ROBERTO ANTONIONE
WOULD VISIT ALBANIA APRIL 8-9, WHERE HE WOULD ANNOUNCE A GOI
ASSISTANCE PACKAGE TO ALBANIA CONSISTING OF 150 MILLION EURO
FOR DEVELOPMENT SPREAD OVER NEXT 3 YEARS. MASSARI ALSO
CONFIRMED THAT BERLUSCONI HAD PROMISED ASSISTANCE WITH THE
TOURISM SECTOR. FOR INSTANCE, THE GOI IS INTERESTED IN
HELPING ALBANIA DEVELOP AS TOURIST SITES A NUMBER OF ROMAN
RUINS SCATTERED THROUGHOUT THE COUNTRY. MASSARI DOUBTED,
HOWEVER, THAT THE PM WOULD VISIT ALBANIA, OFFICIALLY OR

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ACTION EUR-00

INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00
CTME-00 DINT-00 DODE-00 DOEE-00 SRPP-00 DS-00 EB-00
EXIM-01 E-00 VC-00 FRB-00 H-01 TEDE-00 INR-00
IO-00 ITC-01 LAB-01 L-00 VCE-00 AC-01 NSAE-00
NSCE-00 OES-01 OIC-02 OMB-01 OPIC-01 PA-00 PC-01
PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00
SSO-00 SS-00 STR-00 TRSE-00 T-00 USIE-00 EPAE-00
PMB-00 DSCC-00 PRM-00 DRL-02 G-00 NFAT-00 SAS-00
/014W
-------------- 7751B6 191242Z /38
P 191159Z MAR 02
FM AMEMBASSY ROME
TO AMEMBASSY TIRANA PRIORITY
SECSTATE WASHDC PRIORITY 2819
INFO EU CANDIDATE STATES COLLECTIVE
EU INTEREST COLLECTIVE
EU MEMBER STATES COLLECTIVE
AMEMBASSY BELGRADE
AMEMBASSY SKOPJE
AMEMBASSY ZAGREB
USOFFICE PRISTINA

C O N F I D E N T I A L SECTION 02 OF 02 ROME 001393

SIPDIS

DEPT FOR EUR/SCE AND EUR/WE

E.O. 12958: DECL: 03/19/2012
CONFIDENTIAL

PAGE 02 ROME 01393 02 OF 02 191242Z
TAGS: AL ENRG IT PHUM PREF ENRG IT PHUM PREF PREL PRELAL
SUBJECT: ALBANIAN PM MAJKO'S MEETING WITH PM BERLUSCONI:
ENERGY; TOURISM MAIN POINTS OF DISCUSSION

NON-OFFICIALLY, ANY TIME SOON.


8. (C) COMMENT: ALBANIA'S ENERGY PROBLEMS ARE
LONG-STANDING AND HAVE BECOME A MAJOR FOCUS OF STABILITY PACT
EFFORTS. ALTHOUGH THE GOI, STILL THE MAJORITY OWNER OF THE
SLOWLY PRIVATIZING ENEL, CAN ARRANGE A VISIT TO ALBANIA BY AN
ENEL TEAM, ENEL IS NOT IN THE FOREIGN AID BUSINESS AND IS
UNLIKELY TO MAKE A MAJOR INVESTMENT IN IMPOVERISHED ALBANIA.
THE ASSISTANCE THE ALBANIANS THINK BERLUSCONI PROMISED WILL
NOT COME FROM ENEL'S COFFERS. WHILE THERE MAY BE NOTHING ON
BERLUSCONI'S CALENDAR INDICATING A VISIT TO ALBANIA, WE WOULD
NOT BE SURPRISED TO SEE HIM MAKE A QUICK TRIP, PARTICULARLY
IF ONE OF HIS MANY MEDIA CONTACTS ASKED HIM TO LEND HIS
ASSISTANCE TO A PUBLICITY CAMPAIGN TO SELL ALBANIA AS A
TOURIST DESTINATION TO ITALIANS. END COMMENT.


9. (U) MINIMIZE CONSIDERED.
SEMBLER

CONFIDENTIAL

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2002ROME01393 - Classification: CONFIDENTIAL