ITALY AND CHINA EXCHANGE VISITS TO PROMOTE

C O N F I D E N T I A L SECTION 01 OF 03 ROME 003384 SIPDIS E.O. 12958: DECL: 07/10/2012 TAGS: PREL ETRD EAID IT ETRD EAID IT ETRD EAID IT CH CHPREL CHPREL SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS CONFIDENTIAL PAGE 02 ROME 03384 01 OF 03 101003Z CLASSIFIED BY: A/POLMINCOUNS GARY ROBBINS FOR REASONS 1.5 (B) AND (D) ¶1. (C) SUMMARY: IN MAY 28 AND JULY 5 MEETINGS, THE MFA'S OFFICE DIRECTOR FOR EAST ASIAN AFFAIRS AND HIS DEPUTY PROVIDED POLOFF WITH READOUTS ON RECENT VISITS TO ITALY BY THE PRC DEPUTY PRIME MINISTER AND TO CHINA BY THE GOI MINISTER OF PRODUCTIVE ACTIVITIES AND MFA UNDERSECRETARY FOR ASIA AND HUMAN RIGHTS. THE CHINESE RAISED CONCERNS ABOUT THE IMPORTANCE OF TRADE AND INVESTMENT IN CHINA AS WELL AS OBSERVANCE OF THE "ONE CHINA" POLICY. THEY TOOK SOME HEAT FROM DEPUTY PRIME MINISTER FINI ON HUMAN RIGHTS ISSUES, PARTICULARLY RELIGIOUS PERSECUTION. ON HIS TRIP TO CHINA, THE GOI MINISTER WAS ACCOMPANIED BY A LARGE PRIVATE SECTOR DELEGATION. HIS OBJECTIVES, AND THOSE OF THE UNDERSECRETARY, WERE TO FIND EXPORT OPPORTUNITIES, OBTAIN PR FOR DEVELOPMENT AID, AND SMOOTH OVER SYMBOLIC ISSUES OF CONTENTION, SUCH AS CONTACT WITH TAIWANESE OFFICIALS. END SUMMARY. -------------- -------------- LI LANQING IN ROME: LET'S DEEPEN ECONOMIC AND POLITICAL TIES -------------- -------------- ¶2. (C) ACCORDING TO RENZO MARIO ROSSI, OFFICE DIRECTOR FOR EAST ASIAN AFFAIRS, AND HIS DEPUTY, PAOLA MUNZI, DEPUTY PRIME MINISTER LI LANQING WAS THE FIRST RANKING CHINESE OFFICIAL TO VISIT ITALY UNDER THE BERLUSCONI GOVERNMENT. LANQING AND HIS DELEGATION, WHICH INCLUDED THE MINISTER OF CULTURE, DEPUTY MINISTER FOR SCIENCE AND TECHNOLOGY, AND OTHERS, MET WITH PRESIDENT CIAMPI, DEPUTY PRIME MINISTER FINI, THE INTERNATIONALIZATION REPRESENTATIVE OF THE CONFINDUSTRIA EMPLOYERS' ASSOCIATION, AND THE HEAD OF THE CHAMBER OF CONFIDENTIAL PAGE 03 ROME 03384 01 OF 03 101003Z DEPUTIES' FOREIGN AFFAIRS COMMITTEE DURING THEIR MAY 21-25 VISIT. ¶3. (C) FINI THANKED CHINA FOR ITS COOPERATION AGAINST TERRORISM, ILLEGAL MIGRATION, AND TRANSNATIONAL CRIME. (NOTE: RECENTLY-RESIGNED INTERIOR MINISTER SCAJOLA HAD SIGNED A TRANSNATIONAL CRIME AGREEMENT WITH CHINA A FEW MONTHS BEFORE. END NOTE.) LANQING ASSERTED THAT THE GOI AND PRC AGREED ON STRATEGIC ISSUES, THE IMPORTANCE OF CULTURAL INCLUSION/DIVERSITY IN THE WORLD, AND GLOBAL "ECONOMIC BALANCE" IN A "MULTI-POLAR WORLD." HE INVITED CIAMPI AND PRIME MINISTER BERLUSCONI TO VISIT CHINA NEXT SPRING AFTER THE CONCLUSION OF THE COMMUNIST PARTY CONGRESS SCHEDULED FOR OCTOBER. FINI NOTED THAT THE GOI AND PRC SHARED SIMILAR VIEWS ON THE REFORM OF THE UNSC MEMBERSHIP. (NOTE: ITALY'S PROPOSAL FOR UNSC REFORM IS TO ADD EIGHT-TEN REGIONAL, NON-PERMANENT SEATS THAT WOULD BE SHARED BY COUNTRIES--ESPECIALLY THOSE THAT CONTRIBUTE THE MOST TO UN ACTIVITIES--NOT REPRESENTED IN OTHER SLOTS. END NOTE.) ¶4. (U) LANQING PROPOSED THAT CHINA AND ITALY (1) INTENSIFY HIGH-LEVEL GOVERNMENT CONTACTS, (2) BROADEN ECONOMIC TIES, ESPECIALLY BETWEEN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES), AND (3) INCREASE SCIENTIFIC AND TECHNICAL EXCHANGES. CHINA IS INTERESTED IN THE ITALIAN SME MODEL AND HOPES THAT TRADE AND JOINT VENTURES WITH ITALIAN COMPANIES EXPAND. -------------- -- LANQING: BUT MUST YOU CODDLE ENEMIES OF STATE? -------------- -- CONFIDENTIAL PAGE 04 ROME 03384 01 OF 03 101003Z ¶5. (C) SUGGESTING THAT THEY NOT LET POINTS OF DISAGREEMENT RUIN THEIR RELATIONSHIP, LANQING THANKED THE GOI FOR ITS ONE CHINA POLICY AND EMPHASIZED THE IMPORTANCE OF THE REUNIFICATION OF CHINA. THE PRC WAS WILLING TO BE MORE FLEXIBLE TOWARD TAIWAN (WHICH COULD MAINTAIN ITS OWN SOCIAL AND ECONOMIC SYSTEM AND ARMED FORCES, BE REPRESENTED IN PARLIAMENT, AND NOT BE GOVERNED BY THE MAINLAND) BUT ONLY IN A ONE CHINA FRAMEWORK. THE GOI NOTED THAT ITS PARLIAMENTARIANS WERE INDEPENDENT AND THAT IT WAS LEGALLY OBLIGATED TO ALLOW TAIWANESE OFFICIALS TO TRANSIT ITALY IN ORDER TO VISIT THE VATICAN. LANQING DISAGREED WITH THIS RATIONALE, STATING THAT THE TAIWANESE'S REAL INTENTION IN OBTAINING TRANSIT VISAS WAS TO INCREASE CONTACT WITH THE GOI. (ROSSI AND MUNZI EXPLAINED THAT IN A RECENT VISIT OF WHICH THE PRC HAD COMPLAINED, TAIWANESE OFFICIALS MET IN A PRIVATE DINNER WITH A PARLIAMENTARY GROUP. SUCH VISITS WERE A CONTINUAL CONCERN TO THE MFA. FOR EXAMPLE, THE TAIWANESE PRESIDENT HAD REQUESTED A VISIT IN JUNE, AND THE GOI WAS UNSURE HOW TO RESPOND. ON THE ONE HAND, TAIWAN'S FRIENDS LOBBY THE GOVERNMENT, AND THE PARLIAMENT EXPRESSES INTEREST IN ALLOWING SUCH VISITS, WHILE ON THE OTHER HAND, THE PRC PRESSES FOR VISA REFUSAL. TAIWAN WAS AN ESPECIALLY HOT ISSUE FOR THE PRC BECAUSE OF THE MAINLAND'S UPCOMING PARTY CONGRESS, THE MFA REP SURMISED. THE GOI HAD FEARED THAT CHINESE DISPLEASURE ON THIS ISSUE COULD HURT ITALIAN EXPORTS, CONFIDENTIAL CONFIDENTIAL PTQ8012 PAGE 01 ROME 03384 02 OF 03 101003Z ACTION EUR-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 COME-00 CTME-00 INL-00 C-00 DODE-00 DOEE-00 SRPP-00 DS-00 EAP-00 EB-00 EXIM-01 OIGO-00 E-00 FBIE-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01 L-00 VCE-00 AC-01 DCP-01 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 SSO-00 STR-00 TRSE-00 USIE-00 SA-00 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /013W -------------- C90210 101004Z /38 R 101011Z JUL 02 FM AMEMBASSY ROME TO SECSTATE WASHDC 4727 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY BEIJING AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES CIA WASHINGTON DC//CIC/CTC// USMISSION USUN NEW YORK C O N F I D E N T I A L SECTION 02 OF 03 ROME 003384 SIPDIS E.O. 12958: DECL: 07/10/2012 TAGS: PREL ETRD EAID IT ETRD EAID IT ETRD EAID IT CH CHPREL CHPREL SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS CONFIDENTIAL PAGE 02 ROME 03384 02 OF 03 101003Z BUT HAD ALSO NOTICED THERE WERE NO SIGNS THAT COUNTRIES THAT RECEIVED THE DALAI LAMA, FOR EXAMPLE, WERE SO PUNISHED.) ¶6. (C) ON OTHER TOUCHY ISSUES, LANQING WAS PREDICTABLY NON-FORTHCOMING. ON TIBET, HE SAID THAT THE PRC WAS PREPARED TO PROVIDE A HIGH DEGREE OF AUTONOMY, BUT THE PROBLEM WAS THAT THE DALAI LAMA WANTED THE INDEPENDENCE OF TIBET AND TAIWAN. LANQING WENT ON TO CLAIM THAT THE FALUN GONG (FG) WAS A TERRORIST GROUP THAT PROMOTED SUICIDE. ACCORDING TO THE MFA, THIS REMARK WAS AN ATTEMPT TO HEAD OFF GOI CRITICISM, SINCE A NUMBER OF ITALIAN BUSINESSMEN MARRIED TO CHINESE NATIONALS ARE FG MEMBERS. THE GOI BELIEVES THAT FG IS PEACEFUL AND NON-SUICIDAL, AND FINI TOLD LANQING THAT IT WAS NOT THE GOI'S HABIT TO JUDGE THINGS ABOUT WHICH IT HAD NO EVIDENCE (I.E., FG'S CRIMINAL ACTIVITIES),BUT THAT RELIGIOUS FREEDOM MUST BE REAL. FINI ALSO PRESSED FOR A RESOLUTION OF THE SCHISM BETWEEN THE NATIONALIST AND CLANDESTINE CATHOLIC CHURCHES. FINALLY, HE NOTED THAT ITALY'S POLICIES ON TAIWAN, TIBET, AND HUMAN RIGHTS REFLECT AGREED EU POSITIONS. -------------- ITALY GOES TO CHINA -------------- ¶7. (SBU) BACK-TO-BACK TRIPS TO CHINA BY SENIOR GOI OFFICIALS REFLECTED LARGELY THE PRO-BUSINESS BERLUSCONI GOVERNMENT'S EMPHASIS ON PROMOTING ITALIAN EXPORTS. THE MISSIONS ALSO STEMMED FROM THE IMPETUS OF THE INTER-MINISTERIAL AND PRIVATE SECTOR GROUP ON CHINA, WHICH WAS ESTABLISHED ONE YEAR AGO. (NOTE: ITALIAN EXPORTS TO CHINA HAVE INCREASED CONSIDERABLY AS OF LATE, BUT THEY ARE CONFIDENTIAL PAGE 03 ROME 03384 02 OF 03 101003Z STILL A TINY FRACTION OF ITALY'S TOTAL EXPORTS. THIS GROUP HAS ASKED THE GOI TO ESTABLISH A FUND FOR COMPANIES THAT WANT TO INVEST IN CHINA IN ORDER TO IMPROVE THE BENEFIT-TO-RISK RATIO. THE IDEA, CONSIDERED CORPORATE WELFARE BY SOME, IS CONTROVERSIAL. END NOTE.) ¶8. (C) ANTONIO MARZANO, MINISTER FOR PRODUCTIVE ACTIVITIES, WAS ACCOMPANIED BY REPRESENTATIVES OF THE PRIVATE SECTOR AND OF CONFINDUSTRIA, ITALY'S LARGEST EMPLOYER ASSOCIATION, ON HIS JUNE 12-13 VISIT. THEIR MAIN GOAL WAS TO ESTABLISH CONTACTS FOR EXPORTING GOODS TO THE 2008 BEIJING OLYMPICS, FOR EXAMPLE IN PACKAGING. HOWEVER, MUNZI SAID MARZANO'S TRIP WAS DISAPPOINTING IN THAT HIS CHINESE COUNTERPART WAS UNABLE TO MEET WITH HIM, DESPITE HAVING AGREED TO DO SO. ¶9. (C) MFA UNDERSECRETARY FOR ASIA AND HUMAN RIGHTS MARGHERITA BONIVER'S JUNE 24-27 VISIT WAS MORE SUCCESSFUL. BONIVER MET WITH MINISTER OF FOREIGN AFFAIRS TANG JIAXUAN AND DEPUTY MINISTERS OF FOREIGN AFFAIRS, EDUCATION, FOREIGN TRADE, AND FINANCE. BONIVER KEPT THE EMPHASIS ON THE POSITIVE, HIGHLIGHTING POINTS OF AGREEMENT AND THE "EXCELLENT" STATE OF BILATERAL RELATIONS OVERALL. DURING HER VISIT, SHE SIGNED A COOPERATION AGREEMENT THAT PROVIDED 48M EURO IN HEALTH AND TRAINING ASSISTANCE. (NOTE: MUNZI SAID THAT THE AGREEMENT WAS NOT NEW, BUT THE TRIP PROVIDED A GOOD OPPORTUNITY FOR A SIGNING CEREMONY. END NOTE.) THIS INCLUDED THE SECOND TRANCHE OF A CONTROVERSIAL PROJECT TO AID A HOSPITAL IN LHASA, TIBET. SINCE TIBETANS COULD NOT AFFORD THE HOSPITAL, AID MEANT TO HELP THEM WAS BENEFITING CHINESE HAN SETTLERS INSTEAD. ASKED WHY THE MFA DID NOT REALLOCATE CONFIDENTIAL PAGE 04 ROME 03384 02 OF 03 101003Z THE MONEY, MUNZI REPLIED THAT THE GOI FELT CONSTRAINED TO DONATE AID ACCORDING TO PRC REQUESTS. -------------- -------------- CONVERGENCE ON NORTH KOREA, INDIA/PAKISTAN, AFGHANISTAN -------------- -------------- ¶10. (C) BONIVER AND JIAXUAN FOUND COMMON GROUND ON REGIONAL ISSUES. ON NORTH KOREA, BONIVER NOTED THE PRC'S ABILITY TO INFLUENCE PYONGYANG TO LIBERALIZE. JIAXUAN PRAISED THE ITALIAN/EU APPROACH TO THE ISSUE, STATING THAT WHEN THE GOI BECAME THE FIRST GOVERNMENT TO RECOGNIZE THE DPRK, IT ENCOURAGED NORTH KOREA TO OPEN TO THE WORLD. (NOTE: THE GOI RECOGNIZED THE DPRK IN 2000 UNDER A PREVIOUS CENTER-LEFT GOVERNMENT. END NOTE.) MUNZI INFORMED POLOFF THAT THE EU WORKING GROUP FOR ASIA'S MONTHLY MEETING IN BRUSSELS WAS CONSIDERING HOW TO ACHIEVE LONG-TERM GOALS IN NORTH KOREA. THE GOI HAD BEGUN A SMALL-SCALE AID PROGRAM THAT INCLUDED SCHOLARSHIPS, TRAINING, AND VISITS TO EUROPE AND WAS "BEGINNING TO PRODUCE SOME RESULTS." A PROJECT IN THE OFFING WAS A DATABASE TO COMPILE DATA ON THE ENERGY AVAILABLE TO NORTH AND SOUTH KOREA. THE MFA UNDERSTOOD THAT THE KEDO AGREEMENT, EVEN IF WASHINGTON WERE WILLING TO SIGN IT AT THIS POINT, WOULD BE INSUFFICIENT TO MEET THE DPRK'S ENERGY NEEDS. THE SECTOR NEEDED EXTENSIVE REVAMPING. CONFIDENTIAL CONFIDENTIAL PTO6795 PAGE 01 ROME 03384 03 OF 03 101004Z ACTION EUR-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 COME-00 CTME-00 INL-00 C-00 USNW-00 DODE-00 DOEE-00 SRPP-00 DS-00 EAP-00 EB-00 EXIM-01 E-00 FBIE-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01 L-00 VCE-00 AC-01 DCP-01 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 SSO-00 STR-00 TRSE-00 USIE-00 SA-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /013W -------------- C90222 101004Z /38 R 101011Z JUL 02 FM AMEMBASSY ROME TO SECSTATE WASHDC 4728 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY BEIJING AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES CIA WASHINGTON DC//CIC/CTC// USMISSION USUN NEW YORK C O N F I D E N T I A L SECTION 03 OF 03 ROME 003384 SIPDIS E.O. 12958: DECL: 07/10/2012 TAGS: PREL ETRD EAID IT ETRD EAID IT ETRD EAID IT CH CHPREL CHPREL SUBJECT: ITALY AND CHINA EXCHANGE VISITS TO PROMOTE ECONOMIC INTERESTS, DISCUSS REGIONAL PROBLEMS CONFIDENTIAL PAGE 02 ROME 03384 03 OF 03 101004Z ¶11. (C) ON INDIA AND PAKISTAN, BOTH ITALY AND CHINA AGREED THAT THE INTERNATIONAL COMMUNITY NEEDED TO KEEP PRESSURE ON VAJPAYEE AND MUSHARRAF TO PREVENT CONFLICT. ON AFGHANISTAN, JIAXUAN STATED HIS APPRECIATION FOR THE GOI'S CONTRIBUTION TO REBUILDING THE COUNTRY. BOTH SIDES WERE CONCERNED ABOUT THE WEAKNESS OF THE NEW GOVERNMENT AND AGREED THAT AN INTERNATIONAL PRESENCE, INCLUDING MILITARY, WAS NECESSARY TO STABILIZE THE SITUATION. -------------- -------------- SHANGHAI: REPRESSION COULD BE WORSE; PICK US FOR TRADE FAIR -------------- -------------- ¶12. (C) BONIVER MET WITH SHANGHAI'S MAYOR AND FEDERATION OF WOMEN ENTREPRENEURS. INFORMING BONIVER OF SHANGHAI'S $125M PROGRAM OF MODERNIZATION OF THE TRANSPORT, ENERGY, AND ENVIRONMENTAL SECTORS, BOTH REQUESTED SUPPORT FOR SHANGHAI'S CANDIDACY FOR THE UNIVERSAL TRADE EXPOSITION OF 2010. (NOTE: THE GOI REMAINS UNDECIDED. END NOTE.) ¶13. (C) FINALLY, BONIVER MET WITH INTELLECTUALS, WHO, ACCORDING TO MUNZI, PLAYED DOWN THE GRAVITY OF THE PRC'S REPRESSION. THOUGH THEY SEEMED FREER TO SPEAK THAN IN THE PAST, THEY WOULD ONLY CHARACTERIZE THE STATE'S ACTIONS AGAINST ITS SUPPOSED ENEMIES AS "EXAGGERATED." MUNZI INTERPRETED THE SUBTLETY OF THIS CRITICISM AS MEANING THAT THE INTELLECTUALS WANTED TO COOL DOWN THE SITUATION IN THE RUN-UP TO THE PARTY CONGRESS. SEMBLER CONFIDENTIAL PAGE 03 ROME 03384 03 OF 03 101004Z CONFIDENTIAL > 2002ROME03384 - Classification: CONFIDENTIAL