Identifier
Created
Classification
Origin
02ROME1848
2002-04-12 14:27:00
UNCLASSIFIED
Embassy Rome
Cable title:  

ITALIAN RESPONSE TO GALILEO DEMARCHE

Tags:  TSPA TSPL ECON IT EUN 
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UNCLAS ROME 001848 

SIPDIS

STATE FOR OES/SAT/RALPH BRAIBANTI AND JULIE KARNER
USDOC FOR IGEB/SSG GREG FINLEY
USDOC ALSO PASS OFFICE OF SPACE COMMERCIALIZATION
SECDEF FOR OASD/C31 RAY SWIDER

E.O. 12958: N/A
TAGS: TSPA TSPL ECON IT EUN
SUBJECT: ITALIAN RESPONSE TO GALILEO DEMARCHE

REF: STATE 42830

UNCLAS ROME 001848

SIPDIS

STATE FOR OES/SAT/RALPH BRAIBANTI AND JULIE KARNER
USDOC FOR IGEB/SSG GREG FINLEY
USDOC ALSO PASS OFFICE OF SPACE COMMERCIALIZATION
SECDEF FOR OASD/C31 RAY SWIDER

E.O. 12958: N/A
TAGS: TSPA TSPL ECON IT EUN
SUBJECT: ITALIAN RESPONSE TO GALILEO DEMARCHE

REF: STATE 42830


1. (SBU) SUMMARY: POST DISCUSSED REFTEL GALILEO TALKING
POINTS WITH THE MINISTRY OF FOREIGN AFFAIRS (MFA),THE
ITALIAN SPACE AGENCY (ASI) AND THE MINISTRY OF INFRASTRUCTURE
AND TRANSPORTATION (MIT). THE OFFICIAL GOI RESPONSE WAS
PROVIDED BY THE CHAIRMAN OF THE ITALIAN GALILEO STEERING
COMMITTEE, RENATO LIBASSI, ON MARCH 29, 2002. LIBASSI
ACKNOWLEDGED USG CONCERNS ABOUT GPS/GALILEO INTEROPERABILITY.
HE ASSURED US THAT MILITARY APPLICATIONS FOR GALILEO WERE
NOT BEING EXPLORED AND THAT THE EUROPEAN UNION DID NOT INTEND
TO ESTABLISH A REGULATORY REGIME THAT WOULD MANDATE GALILEO
USAGE. LIBASSI ALSO DESCRIBED ITALY'S INCREASING ROLE IN
GALILEO'S DEVELOPMENT, INCLUDING A 25 PERCENT STAKE IN
DEVELOPMENT COSTS. END SUMMARY.


2. (U) POST DELIVERED GALILEO TALKING POINTS (REF) TO MIT
DIPLOMATIC ADVISOR RENATO LIBASSI, WHO IS THE CURRENT
CHAIRMAN OF THE ITALIAN GOVERNMENT'S GALILEO STEERING
COMMITTEE (GSC),COUNSELOR CARLO GUICCIARDI OF THE ITALIAN
FOREIGN MINISTRY'S DEPARTMENT OF SCIENCE AND TECHNOLOGY, ASI
PRESIDENT SERGIO VETRELLA, FRANCO MARCONICCHIO, ASI
REPRESENTATVE TO THE EUROPEAN UNION (EU) TECHNICAL WORKING
GROUP FOR GALILEO, AND RETIRED ITALIAN NAVY VICE ADMIRAL
GIORGIO CAPRA, THE FORMER GSC CHAIRMAN. POST DISTRIBUTED THE
TALKING POINTS WIDELY AS PART OF OUR EFFORT TO COMPOSE A
REPRESENTATIVE PANEL OF THE DIVERSE GOI STAKEHOLDERS IN
GALILEO FOR A PROPOSED DVC WITH SENIOR USG GALILEO/GPS
NEGOTIATORS. LIBASSI PROVIDED THE OFFICIAL GOI RESPONSE TO
UNCLASSIFIED

PAGE 03 ROME 01848 121528Z
THE DEMARCHE DURING A MEETING WITH EST OFFICERS ON MARCH 29,

2002.


3. (SBU) IN THEIR MEETING WITH LIBASSI, ESTOFFS HIGHLIGHTED
WASHINGTON CONCERNS REGARDING THE PROPOSED OVERLAY OF GPS'S
MILITARY SIGNAL BY GALILEO, THE CREEPING EVOLUTION OF GALILEO
FROM A CIVILIAN-ONLY TO A DUAL-USE SYSTEM AND THE POSSIBILITY
THAT THE EUROPEANS MIGHT CREATE A REGULATORY FRAMEWORK THAT
WOULD MANDATE GALILEO SERVICES FOR USERS OPERATING WITHIN THE
EUROPEAN UNION. LIBASSI NOTED USG CONCERNS, PARTICULARLY
REGARDING THE OVERLAY OF THE M-CODE. HE ALSO STATED THAT
DURING THE EU TRANSPORT COUNCIL MEETING ON MARCH 25-26, THE
MEMBER STATES REITERATED THE FACT THAT THE EUROPEAN
COMMISSION (EC) WAS NOT COMPETENT IN THE FIELD OF MILITARY
COOPERATION. HE ADDED THAT THE MEMBER STATES HAD AGREED THAT
"GALILEO WOULD NOT COMPETE IN THE MILITARY MARKET."
LIBASSI'S MESSAGE WAS THAT THE TRANSPORT COUNCIL HAD BLOCKED
FOR NOW EXPANSION OF GALILEO INTO THE MILITARY SECTOR AND
THAT ANY CHANGE IN THIS DECISION WOULD BE COORDINATED IN NATO
STRUCTURES. GALILEO'S ABILITY TO ATTRACT PAYING CUSTOMERS TO
ITS FEE-BASED SERVICES WOULD BE BASED ON FREE MARKET
PRINCIPLES AND NOT REGULATORY MANDATES.


4. (SBU) LIBASSI SAID THAT THE GOI DID NOT WANT TO GET OUT
AHEAD OF THE EU CONSENSUS ON GALILEO. THE GOI WANTS
GALILEO/GPS COOPERATION AND U.S.-EU DISCUSSIONS TO RECOMMENCE
AS SOON AS POSSIBLE. HE ADDED THAT THE GOI WAS CONFIDENT
THAT A U.S.-EU AGREEMENT WOULD BE ACHIEVED AND THAT THERE
WOULD EVENTUALLY BE A COMPLEMENTARY "CONVERGENCE" BETWEEN
GALILEO AND GPS, WHICH WOULD ALLOW THE US AND THE EU TO
PRESENT A RANGE OF COMPATIBLE GLOBAL POSITIONING AND TIMING
UNCLASSIFIED

PAGE 04 ROME 01848 121528Z
SIGNAL PRODUCTS TO THE CONSUMER.


5. (SBU) WHEN EST OFFICERS QUESTIONED GALILEO'S
PROFITABILITY, LIBASSI RESPONDED PLAINLY THAT THE EUROPEANS
WERE PURSUING GALILEO PRIMARILY FOR POLITICAL RATHER THAN
ECONOMIC REASONS. (EMBASSY COMMENT: LIBASSI IMPLIED THAT TO
GALILEO'S EU SUPPORTERS AN INDEPENDENT EUROPEAN GNSS WAS A
GOAL IN AND OF ITSELF. END COMMENT) NEVERTHELESS, HE DID
EXPRESS CONFIDENCE THAT SOME GALILEO SERVICES COULD PRODUCE A
RETURN TO THE INVESTMENT OF PARTICIPATING PRIVATE FIRMS.
SPECIFICALLY, HE CITED THE PROVISION OF TIMING AND
POSITIONING SIGNALS WHOSE ACCURACY WOULD BE CONTRACTUALLY
GUARANTEED, WHICH COULD PROVIDE MORE LIABILITY PROTECTION TO
BUSINESSES USING GALILEO SIGNALS. AT ONE POINT, HE ALLUDED
TO A POSSIBLE GLOBAL MARITIME AGREEMENT MANDATING THE USE OF
GLOBAL POSITIONING TRANSPONDERS ON ALL SEACRAFT AS A MARITIME
SAFETY MEASURE. HE NOTED THAT ITALY'S SHARE IN THE FUNDING
OF GALILEO HAS RISEN TO 25 PERCENT OF THE TOTAL DEVELOPMENT
COSTS, WHICH MEANS THAT ITALY'S PARTICIPATION IS EQUAL TO
THAT OF FRANCE AND GERMANY. THEREFORE, THE THREE COMPANIES
THAT COMPRISE GALILEO INDUSTRIES (ALENIA, ASTRIUM (GERMANY)
AND ALCATEL (FRANCE)) WILL LIKELY GET THE LION'S SHARE OF EU
MONEY IN THE ENGINEERING PHASE OF THE PROJECT.
SEMBLER

UNCLASSIFIED

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2002ROME01848 - Classification: UNCLASSIFIED