ITALY/MIDDLE EAST PEACE PROCESS: BERLUSCONI WITH

C O N F I D E N T I A L ROME 002023 SIPDIS OSLO PLEASE PASS TO AMBASSADOR BURNS E.O. 12958: DECL: 04/24/2012 TAGS: IS IT KPAL PREL MEPP SUBJECT: ITALY/MIDDLE EAST PEACE PROCESS: BERLUSCONI WITH PERES AND SHAATH IN VALENCIA CLASSIFIED BY: POLITICAL MINCOUNS THOMAS COUNTRYMAN, REASON 1.5 B, D ¶1. (C) ON APRIL 24, PM BERLUSCONI'S SENIOR DIPLOMATIC ADVISOR GIOVANNI CASTELLANETA TOLD EUR A/S ELIZABETH JONES CONFIDENTIAL PAGE 02 ROME 02023 241730Z THAT THE PREVIOUS DAY'S EU-MED MINISTERIAL IN VALENCIA HAD, OBVIOUSLY, NOT BEEN SUCCESSFUL IN PROMOTING ISRAELI-ARABIC DIALOGUE ON HALTING THE VIOLENCE. EMBASSY FOUND HIS READOUT OF PRIME MINISTER (AND ACTING FOREIGN MINISTER) BERLUSCONI'S MEETINGS THERE WITH FM PERES AND PA OFFICIAL NABIL SHA'ATH TO BE OF INTEREST. ¶2. (C) ACCORDING TO CASTELLANETA, ISRAELI FM PERES HAD TOLD PM BERLUSCONI THAT ISRAEL WOULD BE AGREEABLE TO AN INTERNATIONAL PEACE CONFERENCE CONVOKED BY THE QUARTET. WHEN PRESSED, CASTELLANETA CONFIRMED THAT PERES HAD EXPLICITLY SAID QUARTET SPONSORSHIP, RATHER THAN INSISTING ON A CONFERENCE SPONSORED BY THE US. HE SPECULATED THAT THERE IS A SENSE OF "FATIGUE" IN THE ISRAELI GOVERNMENT NOW THAT THEY HAVE ESTABLISHED A STRONGER MILITARY POSITION, AND THEREFORE WOULD BE MORE AMENABLE TO NEGOTIATION. ¶3. (C) IN THE MEETING WITH PERES, BERLUSCONI OFFERED TO HOST SUCH A MEETING IN ITALY, GIVEN THE GOI'S PRESENTLY STRONG RELATIONS WITH BOTH THE PALESTINIANS AND ISRAEL. (BEFORE LEAVING VALENCIA, BERLUSCONI STATED TO THE PRESS ITALY'S WILLINGNESS TO HOST SUCH A CONFERENCE). LATER APRIL 24, LUCA FERRARI, MFA OFFICE DIRECTOR FOR THE EASTERN MEDITERRANEAN, SAID THAT ONE OF THE DIPLOMATIC ADVISORS TO PM SHARON HAD "INFORMALLY" RAISED WITH THE ITALIAN EMBASSY IN TEL AVIV HIS VIEW THAT ITALY WOULD BE A NATURAL SITE FOR SUCH A MEETING. FERRARI SAID THE ADVISER'S STATEMENT HAD BEEN VERY HYPOTHETICAL AND CONDITIONAL, BUT WAS A CLEAR EXPRESSION OF SHARON'S WILLINGNESS TO COME TO ITALY. ¶4. (C) CASTELLANETA SAID THAT BERLUSCONI HAD BROACHED WITH CONFIDENTIAL PAGE 03 ROME 02023 241730Z SHA'ATH THE IDEA OF CREATING A "COUNCIL OF MINISTERS" TO TAKE POLITICAL CONTROL OVER THE PALESTINIAN AREAS, WITH ARAFAT OCCUPYING THE POSITION OF "HONORARY PRESIDENT." NOT SURPRISINGLY, SHA'ATH DID NOT WISH TO MAKE ANY COMMENT ON THIS IDEA. FERRARI TOLD THE EMBASSY LATER APRIL 24 THAT BERLUSCONI HAD AT LAST BROACHED WITH THE PALESTINIANS AN IDEA THE MFA HAD PROPOSED TO HIM EARLIER THIS YEAR: THAT IT WAS TIME FOR ARAFAT TO BEGIN DEVOLVING POWER TO A COMMITTEE OF MINISTERS. IN THE GOI'S VIEW, THE PALESTINIANS WOULD BE BETTER SERVED IF ARAFAT BECAME, SOONER RATHER THAN LATER, A "MERE PRESIDENT", CEREMONIAL IN THE ITALIAN SENSE RATHER THAN POWERFUL IN THE FRENCH SENSE. ACCORDING TO FERRARI, ITALY HAD NOT YET DISCUSSED THIS IDEA WITH EU PARTNERS, BUT HE EXPECTED IT WOULD DO SO SOON. SEMBLER CONFIDENTIAL > 2002ROME02023 - Classification: CONFIDENTIAL