GALILEO DISCUSSION WITH ALENIA'S VIRIGLIO

C O N F I D E N T I A L SECTION 01 OF 02 ROME 004766 SIPDIS DEPT FOR OES/SAT/JULIE KARNER NATO PASS SES-4 FOR MELVIN FLACK USDOC PASS OFFICE OF SPACE COMMERCIALIZATION E.O. 12958: DECL: 09/17/2012 TAGS: TSPA TSPL ECON TSPL ECON EXPORT CONTROLS SUBJECT: GALILEO DISCUSSION WITH ALENIA'S VIRIGLIO REF: ROME 04292 ¶1. (C) SUMMARY: EST SECTION RECENTLY MET WITH GIUSEPPE VIRIGLIO, CEO FOR THE SPACE DIVISION OF ITALIAN AEROSPACE COMPANY ALENIA SPAZIO. THE EUROPEAN GALILEO GLOBAL NAVIGATIONAL SATELLITE SYSTEM WAS DISCUSSED IN THE CONTEXT OF RECENT USG-GOI DISCUSSIONS ON GPS-GALILEO INTEROPERABILITY. VIRIGLIO PROVIDED SOME INTERESTING INSIGHTS INTO THE ITALIAN DECISIONMAKING PROCESS ON GALILEO, BUT HE ALSO RESPONDED IN A MUCH LESS SYMPATHETIC MANNER TO USG CONCERNS ABOUT THE OVERLAY OF ONE OF THE GPS MILITARY SIGNALS (M-CODE) BY THE PROPOSED GALILEO PUBLIC REGULATED SERVICE (PRS). END SUMMARY. ¶2. (C) ESTOFFS BROACHED THE ISSUE OF GALILEO BY EXPRESSING THEIR REGRET THAT THE TIMING OF THE LATE JULY 2002 USG GPS DELEGATION VISIT (SUBJECT OF REFTEL) CONFLICTED WITH VIRIGLIO'S TRAVEL TO THE FARNBOROUGH AIR SHOW. THEY BRIEFED VIRIGLIO ON THE GPS DELEGATION'S MESSAGE TO THE GOI ON USG POLICY TOWARD GPS-GALILEO COOPERATION. IN PARTICULAR, ESTOFFS STRESSED THE USG'S OPPOSITION TO THE OVERLAY OF THE M-CODE BY PRS. ALTHOUGH VIRIGLIO DID NOT SEEM TO HAVE AN INSTITUTIONAL STAKE IN PRS, HE DID NOT SEEM PARTICULARLY SYMPATHETIC TO USG CONCERNS ABOUT THE POTENTIAL RISKS TO NATO WARFIGHTING CAPABILITIES. HE INTIMATED THAT FRANCE IS THE ONLY GALILEO PARTNER INSISTING ON OVERLAYING THE M-CODE, BUT HE ALSO EXPRESSED SOME SYMPATHY FOR THE VIEW THAT THE US SHOULD BE PREVENTED FROM BEING ABLE TO UNILATERALLY JAM PRS UNDER ANY CIRCUMSTANCE AND LARGELY DISMISSED USG ASSESSMENTS OF THE RISKS TO NATO. CONFIDENTIAL PAGE 03 ROME 04766 01 OF 02 021041Z ¶3. (C) WHEN ESTOFFS NOTED USG CONCERNS ABOUT THE POSSIBLE INCLUSION OF CHINA AS A NON-EUROPEAN PARTNER IN GALILEO, VIRIGLIO BECAME SOMEWHAT DEFENSIVE. HE RESPONDED THAT THE EUROPEANS WERE FORCED TO SEEK NON-EUROPEAN CUSTOMERS, SUCH AS THE CHINESE, BECAUSE THE UNITED STATES, BY INSISTING THAT GALILEO SHOULD BE A CIVILIAN-USE ONLY SYSTEM, HAD DRASTICALLY REDUCED THE POOL OF POTENTIAL EUROPEAN INSTITUTIONAL USERS (THE VARIOUS EU MINISTRIES OF DEFENSE) THAT COULD CONTRIBUTE TO GALILEO DEVELOPMENT. (EMBASSY COMMENT: ESTOFFS VAINLY TRIED TO POINT OUT THE INACCURACIES IN VIRIGLIO'S DESCRIPTION OF THE EVOLUTION OF GALILEO AS A CIVILIAN-ONLY SYSTEM. IT SEEMED TO BE MORE A CASE OF SELF-RATIONALIZATION.) HE WAS UNMOVED BY ESTOFFS EFFORTS TO POINT OUT LEGITIMATE USG SECURITY CONCERNS BY THE POSSIBILITY OF CHINA DEVELOPING WEAPONS THAT COULD USE PRS FOR TARGETING. ¶4. (C) VIRIGLIO PROVIDED SOME INSIGHTS INTO THE ITALIAN DECISION-MAKING PROCESS ON GALILEO. HE CONFIRMED THAT COUNSELOR RENATO LIBASSI, A SPECIAL ADVISOR TO THE MINISTER OF TRANSPORTATION, IS THE KEY GOI OFFICIAL FOR GALILEO, AS THE CHAIRMAN OF THE GOI'S INTERAGENCY WORKING GROUP ON GALILEO. VIRIGLIO DESCRIBED LIBASSI AS HAVING THE MOST COMPREHENSIVE UNDERSTANDING OF GALILEO POLICY WITHIN THE GOI. RATHER THAN BEING A POLICY-MAKER, HOWEVER, LIBASSI IS MORE OF COORDINATOR FOR THE ITALIAN GALILEO POLICY PROCESS. LIBASSI IS THE PRINCIPLE GOI INTERLOCUTOR WITH THE EUROPEAN COMMISSION (EC) AND THE OTHER GALILEO PARTNERS ON POLICY ISSUES, AND HE MAKES SURE THAT ALL THE RELEVANT GOI AGENCIES ARE ON THE SAME SHEET OF MUSIC FOR GALILEO POLICY. THE ITALIAN SPACE AGENCY (ASI),HOWEVER, IS THE GOI FOCAL POINT CONFIDENTIAL PAGE 04 ROME 04766 01 OF 02 021041Z FOR GALILEO TECHNICAL ISSUES. ACCORDING TO VIRIGLIO, GOI GALILEO POLICY IS ACTUALLY BEING DRIVEN BY ACTORS OUTSIDE OF ITALY, SPECIFICALLY FRANCE, THE EC AND THE EUROPEAN SPACE AGENCY (ESA),SINCE NO ONE AT THE MINISTERIAL LEVEL IN THE GOI IS TRULY ENGAGED AND UP TO DATE ON GALILEO. LIBASSI MERELY ASSURES THAT THE GOI CONFORMS TO GALILEO POLICY ONCE IT HAS BEEN DECIDED IN BRUSSELS. (EMBASSY COMMENT: VIRIGLIO'S DESCRIPTION OF THE ITALIAN DECISIONMAKING PROCESS ON GALILEO TRACKS WITH EMBASSY'S EXPERIENCE IN ENGAGING THE GOI ON U.S. CONCERNS REGARDING GALILEO. IN PARTICULAR, WE HAVE NOTICED A RELUCTANCE ON THE PART OF LIBASSI AND MINISTRY OF FOREIGN AFFAIRS COUNSELOR ENRICO GUICCIARDI, OUR TWO PRINCIPAL GOI CONTACTS ON GALILEO POLICY, TO ENGAGE US IN SUBSTANTIVE DIALOGUE THAT WOULD ALLOW OUR CONCERNS TO BE FACTORED INTO GOI POLICY. IN ADDITION, WE HAVE HAD DOUBTS ABOUT LIBASSI'S ROLE AS A DECISION-MAKER EVEN THOUGH HE IS THE GOI OFFICIAL WHO IS IN OVERALL CHARGE OF THIS ISSUE. HOWEVER, WE BELIEVE THAT VIRIGLIO DOWNPLAYED HIS OWN ROLE AS A KEY ACTOR IN GOI POLICY. ALTHOUGH HE IS NOT A GOI OFFICIAL, HE ADMITTED THAT IN ITALY HE HAS THE MOST SUBSTANTIVE KNOWLEDGE OF GALILEO POLICY AND TECHNICAL ISSUES. AS HEAD OF THE ITALIAN PRIME CONTRACTOR FOR GALILEO, HIS ROLE IN INFLUENCING AND SHAPING ITALIAN POLICY ON GALILEO SHOULD NOT BE UNDERESTIMATED. WE SUSPECT THAT HE IS THE KEY CONFIDENTIAL CONFIDENTIAL PTQ8565 PAGE 01 ROME 04766 02 OF 02 021043Z ACTION OES-01 INFO LOG-00 NP-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 COME-00 CTME-00 INL-00 DODE-00 DOEE-00 DOTE-00 SRPP-00 EB-00 EUR-00 EXIM-01 E-00 FAAE-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OMB-01 OPIC-01 PM-00 ACE-00 SP-00 IRM-00 SSO-00 SS-00 STR-00 TRSE-00 T-00 USIE-00 EPAE-00 PMB-00 DRL-02 G-00 NFAT-00 SAS-00 /010W -------------- F02FFB 021043Z /38 O 021009Z OCT 02 FM AMEMBASS ROME TO SECSTATE WASHDC IMMEDIATE 6114 NFO RUCNMEM/EU MEMBER STATES COLLECTIVE IMMEDIATE NATO EU COLLECTIVE IMMEDIATE AMCNSUL MILAN IMMEDIATE 9898 USEU BRUSSELS IMEDIATE 2837 USMISSION USNATO IMMEDIATE 230 NASA WASHDC IMMEDIATE AMEMBASY BEIJING PRIORITY C O N F I D E N T I A L SECTION 02 OF 02 ROME 004766 SIPDIS DEPT FOR OES/SAT/JULIE KARNER NATO PASS SES-4 FOR MELVIN FLACK USDOC PASS OFFICE OF SPACE COMMERCIALIZATION E.O. 12958: DECL: 09/17/2012 TAGS: TSPA TSPL ECON TSPL ECON EXPORT CONTROLS CONFIDENTIAL PAGE 02 ROME 04766 02 OF 02 021043Z SUBJECT: GALILEO DISCUSSION WITH ALENIA'S VIRIGLIO PLAYER IN ITALIAN GALILEO POLICY AND THAT INDUSTRIAL-COMMERCIAL CONCERNS ARE THE FACTORS DRIVING GOI SUPPORT FOR GALILEO. END COMMENT) SEMBLER CONFIDENTIAL > 2002ROME04766 - Classification: CONFIDENTIAL