ITALIAN TRANSPORT MINISTER DISCUSSES GALILEO WITH

C O N F I D E N T I A L ROME 006059

SIPDIS

DEPT FOR OES/SAT AND EUR/ERA

E.O. 12958: DECL: 12/12/2012
TAGS: TSPA ETTC IT EUN
SUBJECT: ITALIAN TRANSPORT MINISTER DISCUSSES GALILEO WITH
DE PALACIO



1. (U) THIS MESSAGE HAS BEEN CLASSIFIED BY ECONOMIC MINISTER
COUNSELOR SCOTT KILNER. REASONS 1.5B AND D.


2. (C) SUMMARY. ON 4 DECEMBER DCM MET WITH MINISTRY OF
TRANSPORT INTERNATIONAL AFFAIRS COUNSELOR EMILIO MARAINI AND
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OUTLINED USG VIEWS ON THE PROPOSED OVERLAY OF GPS M-CODE BY
THE PUBLIC REGULATED SERVICE (PRS) OF THE GALILEO SATELLITE
NAVIGATION SYSTEM. DCM ALSO DELIVERED A LETTER FROM
AMBASSADOR TO MINISTER OF TRANSPORT LUNARDI. IN A DEC 12
CONVERSATION WITH MARAINI, POST LEARNED THAT LUNARDI HAD USED
THE LETTER TO OPEN A PERSONAL DISCUSSION ON M-CODE WITH
TRANSPORT COMMISSIONER DE PALACIO. HOWEVER, DE PALACIO'S
ASSISTANT ILBRECHT INSISTED THAT THE OVERLAY PROBLEM COULD BE
SOLVED BY MODULATION OF THE PRS SIGNAL RATHER THAN MOVING PRS
TO A SEPARATE SEGMENT OF SPECTRUM. END SUMMARY.


3. (SBU) DCM CALLED ON MARAINI ON THE EVE OF HIS DEPARTURE
FOR THE DEC.5 TRANSPORT COUNCIL TO STRESS THE IMPORTANCE THE
USG ATTACHES TO MOVING GALILEO'S PROPOSED PRS TO A FREQUENCY
WHICH WOULD NOT OVERLAY THAT OF U.S. M-CODE. DCM STRESSED
THAT THE USG WAS NOT OPPOSED TO THE EUROPEAN SYSTEM, IN FACT
SAW POSSIBLE BENEFITS FOR USERS OF GALILEO AND GPS, BUT
SIMPLY COULD NOT ACCEPT THE RISKS TO U.S. AND NATO MILITARY
OPERATIONS AND PERSONNEL THAT WOULD RESULT FROM THE OVERLAY
OF VITAL M-CODE BY GALILEO'S PROPOSED PRS. DCM UNDERLINED
THAT NO TECHNICAL FIX WAS POSSIBLE, AND THAT THE EU NEEDED TO
TAKE THE POLITICAL DECISION TO ABANDON THE IDEA OF FREQUENCY
OVERLAYS. HE CONCLUDED BY POINTING TO OUR LONG STANDING
POLITICAL AND INDUSTRIAL BILATERAL COOPERATION AS AN
INDICATION THAT A SOLUTION COULD BE FOUND.


4. (SBU) MARAINI-- IN HIS JOB JUST A FEW MONTHS--WAS AWARE OF
USG VIEWS, BUT SAID THAT THE TRANPORT MINISTERS LACKED THE
COMPETENCE TO ENTER INTO THE MILITARY ASPECTS OF GALILEO,
SINCE THE COMMISSION MANDATE WAS CIVILIAN AND COMMERCIAL. HE
EXPECTED THE MINISTERS TO INDICATED THE NEED FOR THE
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COMMISSION TO STUDY SERIOUSLY POSSIBLE SOLUTIONS IN CLOSE
COOPERATION WITH THE U.S. HE PROMISED TO DELIVER THE
AMBASSADOR'S LETTER TO MINISTER LUNARDI, AND TO DISCUSS THE
ISSUES WITH THE MINISTER EN ROUTE TO BRUSSELS.


5. (C) POST LEARNED ON DECEMBER 12 FROM MARAINI THAT MINISTER
LUNARDI HAD RAISED USG CONCERNS WITH TRANSPORT COMMISSIONER
DE PALACIO ON THE MARGINS OF THE COUNCIL. ACCORDING TO
MARAINI, LUNARDI STRESSED THE NEED TO ADDRESS USG SECURITY
CONCERNS RESPONSIVELY. IN HER REPLY THE COMMISSIONER CALLED
ON HER ASSISTANT ILBRECHT, WHO ARGUED THAT THE OVERLAY
PROBLEMS RAISED BY THE THE U.S. COULD BE RESOLVED BY
MODULATION OF PRS SIGNAL WITHOUT THE NEED TO MOVE PRS TO A
SEPARTE FREQUENCY.


6. (C) COMMENT. EMBASSY BELIEVES THAT ITALY, BECAUSE OF ITS
HIGH POLITICAL AND ECONOMIC STAKES IN GALILEO, WILL SUPPORT A
RESOLUTION OF THE OVERLAY ISSUE IN ORDER TO MOVE FORWARD WITH
TENDERING THE PROJECT, WHICH COULD HAPPEN AS EARLY AS NEXT
JUNE. HOWEVER, THE MINISTRY OF TRANSPORT IS NOT FULLY
CONVINCED THAT THE TECHNICAL SOLUTIONS OFFERED UP BY THE
COMMISSION ARE INFEASIBLE. INDEED, MARAINI TOLD US THAT THE
U.S. STYLE-- IN HIS WORDS, NEGOTIATING BY ULTIMATUM--DID NOT
SIT WELL WITH EITHER ITALY OR THE COMMISSION. WE EXPECT THE
ITALIANS WILL WANT A CLEAR TECHNICAL EXPLANATION OF WHY
SOLUTIONS PROPOSED BY THE COMMISSION WILL NOT WORK.

SEMBLER

CONFIDENTIAL

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2002ROME06059 - Classification: CONFIDENTIAL