C O N F I D E N T I A L ROME 006098

SIPDIS

E.O. 12958: DECL: 12/20/2007
TAGS: ETTC PREL IR ITALY'>IT EXPORT CONTROLS
SUBJECT: GOI INQUIRY ON HELICOPTER PARTS SALE TO IRAN


CLASSIFIED BY: ACTING DEPUTY CHIEF OF MISSION JOHN DWYER
FOR REASONS 1.5 (B) (D)


1. (C) AT THE END OF A DECEMBER 13 MEETING WITH A/DCM ON A
SEPARATE ISSUE, BERLUSCONI FOREIGN POLICY ADVISOR GIANPAOLO
SCARANTE REQUESTED "INFORMAL" USG VIEWS ON THE POSSIBLE
RENEWAL OF A LONG-FROZEN SALE OF AGUSTA HELICOPTER PARTS TO
IRAN, CURRENTLY UNDER REVIEW WITHIN THE GOI.


2. (C) ACCORDING TO SCARANTE, IN 1993 THE ITALIAN
GOVERNMENT FROZE AGUSTA'S $25 MILLION CONTRACT TO DELIVER
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HELICOPTER SPARE PARTS TO THE IRANIAN GOVERNMENT. THE LEGAL
BASIS FOR THAT ACTION, HE SAID, WAS THE UNCHR RESOLUTION ON
IRAN IN EFFECT AT THAT TIME. IN THE YEARS THAT FOLLOWED, AS
LONG AS SUCH A RESOLUTION REMAINED IN EFFECT, THE GOI WAS
ABLE TO MAINTAIN ITS FREEZE ON THE SALE. WITHOUT A UNCHR
RESOLUTION ON IRAN THIS YEAR, HOWEVER, SCARANTE SAID THE GOI
HAD TO REVIEW WHETHER IT COULD CONTINUE TO HOLD UP DELIVERY
OF THE SPARE PARTS. IN THIS CONTEXT, HE SAID HE WOULD
APPRECIATE A "LOW-KEYED, INFORMAL" USG VIEW ON ITALY'S
LETTING THIS SALE GO FORWARD.


3. (C) ON DECEMBER 18, ECMIN PHONED SCARANTE TO CONVEY THAT
THE USG WOULD NOT/NOT FAVOR ITALY'S ALLOWING THE PARTS TO BE
DELIVERED. HE REMINDED SCARANTE THAT THE LONG-STANDING U.S.
EMBARGO OF MOST ECONOMIC AND FINANCIAL TRANSACTIONS WITH IRAN
REFLECTS OUR CONTINUED STRONG CONCERN WITH IRAN'S PURSUIT OF
WMD AND BALLISTIC MISSILES, CONTINUING HUMAN RIGHTS
VIOLATIONS, SUPPORT FOR INTERNATIONAL TERRORISM, AND
UNHELPFUL ACTIONS VIS-A-VIS AFGHANISTAN AND MIDDLE EAST
PEACE. WE LIKEWISE STRONGLY ENCOURAGED OTHER COUNTRIES TO
LIMIT THEIR TRADE WITH IRAN. ECMIN ALSO URGED THE GOI TO
EXAMINE THE SALE CLOSELY IN THE CONTEXT OF ITALY'S
OBLIGATIONS UNDER THE WASSENAAR ARRANGEMENT.


4. (C) SCARANTE, WITHOUT ARGUING ANY OF THE ABOVE POINTS,
REITERATED THAT THE AGUSTA SALE WAS SIMPLY UNDER GOI REVIEW
AT THE PRESENT TIME, AND THAT USG VIEWS WOULD BE "AN
IMPORTANT FACTOR" IN THAT REVIEW. ECMIN EXPRESSED
APPRECIATION FOR SCARANTE'S HAVING CONTACTED THE U.S.
EMBASSY, AND URGED THAT THE GOI OFFER US THE OPPORTUNITY TO
CONSULT MORE FORMALLY IF THERE WAS ANY SERIOUS CHANCE THAT
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THE FREEZE MIGHT BE LIFTED. SCARANTE INDICATED THAT THE GOI
WOULD STAY IN TOUCH.

SEMBLER

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2002ROME06098 - Classification: CONFIDENTIAL