ITALY/ALBANIA - GOI CONDITIONS AID PLEDGE TO GOA:

C O N F I D E N T I A L ROME 001821

SIPDIS

DEPT FOR EUR/SCE AND EUR/WE

E.O. 12958: DECL: 04/11/2012
TAGS: AL EAID ENRG ITALY'>IT PREL EUN
SUBJECT: ITALY/ALBANIA - GOI CONDITIONS AID PLEDGE TO GOA:
"HELP US TO HELP YOU"

REF: ROME 1393

CLASSIFIED BY: POL MC TOM COUNTRYMAN. REASON:1.5 (B)(D).
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1. (U) ACTION REQUEST. SEE PARA 5.


2. (C) ON APRIL 9, BALKAN OFFICE HEAD MAURIZIO MASSARI AND
MFA UNDER SECRETARY ROBERTO ANTONIONE HAD "EXTREMELY
PRODUCTIVE AND ENCOURAGING" MEETINGS IN TIRANA WITH PRIME
MINISTER MAJKO, FOREIGN MINISTER DADE, AND ECONOMIC MINISTER
MEKSI. MASSARI TOLD POLOFF APRIL 10 THAT THE GOI AND GOA
RENEWED A PROTOCOL OF COOPERATION, AND THE GOI PLEDGED 202
MILLION EUROS IN AID THROUGH 2004 FOR, INTER ALIA,
INFRASTRUCTURE IMPROVEMENT, ENTERPRISE DEVELOPMENT, AND
AGRICULTURE. MOST SIGNIFICANT, SAID MASSARI, WAS 30 MILLION
EUROS EARMARKED FOR ENERGY, FOLLOWING UP ON A PLEDGE BY PM
BERLUSCONI TO PM MAJKO DURING THE LATTER'S VISIT TO ROME LAST
MONTH (REFTEL). THE FUNDS WERE TO BE USED TO PURCHASE
ELECTRICITY TO "KEEP THE LIGHTS ON" FOR THE SHORT TERM, BUT
ALSO TO BUILD A VIABLE ENERGY GENERATION INFRASTRUCTURE FOR
LONG TERM ENERGY PRODUCTION. "WE WERE VERY FRANK" WITH THE
ALBANIANS, SAID MASSARI. THE GOI EXPECTS THE GOA TO PLAN FOR
THE FUTURE. HE SAID THAT ANTONIONE REMINDED THE ALBANIANS
THAT THE CAUSE OF THEIR ENERGY PROBLEMS WAS "NOT ONLY THE
WEATHER." THE GOI WANTS TO SEE ITS AID GO TO PROJECTS THAT
WILL "CORRECT PAST MISTAKES."


3. (C) THE GOA IS HEARING A SIMILAR MESSAGE FROM THE EU
REGARDING OPENING STABILIZATION AND ASSOCIATION (SAA)
NEGOTIATIONS, SAID MASSARI. THE GOI'S VIEW IS THAT THE
NEGOTIATIONS SHOULD START BEFORE JUNE. HOWEVER, ANTONIONE
REMINDED THE GOA THAT THERE ARE MANY SKEPTICS, IN THE EU AND
OSCE, WHO QUESTION THE GOA'S ABILITY AND COMMITMENT TO
CHANGE, THEREFORE RAPID PROGRESS ON NEEDED REFORMS WAS
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CRITICAL. MASSARI SAID THE MESSAGE WAS RECEIVED AND
ACKNOWLEDGED BY ALL THEIR INTERLOCUTORS.


4. (C) MASSARI REPEATED THE GOI'S VIEW (REFTEL) THAT THE IC
SHOULD ACKNOWLEDGE GOA REFORMS TO DATE, SUCH AS OVERALL
RELATIVE POLITICAL STABILITY, COOPERATION WITH THE GOI IN
FIGHTING ILLEGAL IMMIGRATION, AND A RECENT BIPARTISAN
PARLIAMENTARY DECISION TO IMPLEMENT ODIHR ELECTORAL SYSTEM
REFORMS RECOMMENDATIONS. POTENTIAL INVESTORS NEED A SIGNAL
FROM THE IC THAT ALBANIA IS MAKING PROGRESS. WE HAVE TO
CONTINUE TO PRESSURE THE GOI TO DO MUCH MORE TO COMBAT
ORGANIZED CRIME AND REFORM THE JUDICIAL SYSTEM, AND IN THE
GOI'S VIEW STARTING THE SAA NEGOTIATIONS COULD BE PART OF
THOSE MEANS. THE NEGOTIATIONS CAN LAST AS LONG AS NECESSARY,
AND SERVE AS ANOTHER TOOL TO INFLUENCE GOI ACTIONS.


5. (C) MASSARI'S VIEW IS THAT IT WOULD BE A MISTAKE TO NOT
ACKNOWLEDGE THE GOI'S PROGRESS THUS FAR, AND COULD MAKE IT
HARDER FOR THE MAJKO GOVERNMENT TO CONVINCE THE ALBANIAN
PEOPLE THAT ECONOMIC REFORMS, SOMETIMES PAINFUL IN THE SHORT
TERM, MUST BE ENACTED FOR THE GOOD OF THE COUNTRY'S LONG TERM
STABILITY. HE SINGLED OUT THE BRITISH AS AMONG THE MOST
SKEPTICAL OF ITALY'S EU PARTNERS REGARDING ALBANIA'S
COMMITMENT TO CHANGE, AND WONDERED IF THE U.S. COULD "PUT IN
A GOOD WORD" WITH THE BRITS. HE ALSO REPEATED HIS REQUEST
FOR A "POSITIVE" U.S. STATEMENT AT THE APRIL 17 FRIENDS OF
ALBANIA MEETING IN VIENNA. ACTION REQUEST: POST WOULD LIKE
TO GIVE A HEADS-UP TO MASSARI ON THE GENERAL TONE OF OUR
INTERVENTION IN VIENNA.
SEMBLER

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2002ROME01821 - Classification: CONFIDENTIAL