WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH

C O N F I D E N T I A L ROME 006137

SIPDIS

C O R R E C T E D - COPY (ADDED ADDRESSEE(S))

DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER
DEPT FOR EUR
DEPT FOR EB
DEPT FOR OES
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ITALY'>IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH
CONFIDENTIAL


PAGE 02 ROME 06137 01 OF 03 091117Z

CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D).


1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON
BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY,
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY
OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG,
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE
EMBASSY RECOMMENDATION PARA 14.

BACKGROUND AND CURRENT SITUATION


2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN
CONFIDENTIAL

PAGE 03 ROME 06137 01 OF 03 091117Z
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING
COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR,
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT
SIGNAL.


3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU
CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI,
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH
MORE RESTRICTIVE MEMBER STATES.


4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS,
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE
EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED
CONFIDENTIAL

PAGE 04 ROME 06137 01 OF 03 091117Z
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS.
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT
(TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003.


5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO
THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO
TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE
ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER,
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY
AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE"

CONFIDENTIAL

>
@@@OASYS@@@

CONFIDENTIAL PTO2343

PAGE 01 ROME 06137 01 OF 03 270952Z
ACTION SSO-00

INFO LOG-00 AGRE-00 ANHR-00 EB-00 E-00 TEDE-00 SS-00
STR-00 SAS-00 (E-00 TEDE-00 SAS-00 ) /000W
-------------- 2104F5 070814Z /38
P 270939Z DEC 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7491
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137

SIPDIS

DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH

CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D).


1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON
CONFIDENTIAL

PAGE 02 ROME 06137 01 OF 03 270952Z
BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY,
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY
OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG,
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE
EMBASSY RECOMMENDATION PARA 14.

BACKGROUND AND CURRENT SITUATION


2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING
COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR,
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS
CONFIDENTIAL

PAGE 03 ROME 06137 01 OF 03 270952Z
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT
SIGNAL.


3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU
CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI,
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH
MORE RESTRICTIVE MEMBER STATES.


4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS,
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE
EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS.
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT
CONFIDENTIAL

PAGE 04 ROME 06137 01 OF 03 270952Z
(TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003.


5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO
THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO
TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE
ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER,
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY
AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE"

CONFIDENTIAL

CONFIDENTIAL PTQ1948

PAGE 01 ROME 06137 01 OF 03 091018Z
ACTION SSO-00

INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00
E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00
/001W
-------------- 225B51 091019Z /38
P 270939Z DEC 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7491
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137

SIPDIS

C O R R E C T E D - COPY (ADDED ADDRESSEE(S))

DEPT FOR U/S LARSON FROM AMBASSADOR SEMBLER
DEPT FOR EUR
DEPT FOR EB
DEPT FOR OES
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH
CONFIDENTIAL

PAGE 02 ROME 06137 01 OF 03 091018Z

CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D).


1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND
INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS
GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON
BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE
ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR
A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY
ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY
PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF
AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO
DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY,
RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL
BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY
OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM
WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG,
ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW
AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE
CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON
AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI
TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU
PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE
EMBASSY RECOMMENDATION PARA 14.

BACKGROUND AND CURRENT SITUATION


2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY
WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO
REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY
PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN
CONFIDENTIAL

PAGE 03 ROME 06137 01 OF 03 091018Z
ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING
COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME
MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL
VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND
MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR,
THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS
GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER
MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE
ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL
REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT
SIGNAL.


3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE
GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND
ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN
DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU
CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI,
WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR
BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO
GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN
INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING
AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS
IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH
MORE RESTRICTIVE MEMBER STATES.


4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE
DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN
VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS,
EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE
EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY
CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED
CONFIDENTIAL

PAGE 04 ROME 06137 01 OF 03 091018Z
AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE
ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY
TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS
HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS.
WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE
"AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT
(TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE
EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003.


5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE
PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO
THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE
MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO
TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS
PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF
0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO
TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE
GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF
NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE
ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF
GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER,
AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH
SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY
AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO
SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY
AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE"

CONFIDENTIAL

CONFIDENTIAL PTQ2813

PAGE 01 ROME 06137 02 OF 03 270952Z
ACTION SSO-00

INFO LOG-00 AGRE-00 ANHR-00 EB-00 E-00 TEDE-00 SS-00
STR-00 SAS-00 (E-00 TEDE-00 SAS-00 ) /000W
-------------- 2104FE 070814Z /38
P 270939Z DEC 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7492
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137

SIPDIS

DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH

STANDARDS FOR SPRING PLANTING. (SEE ROME 5743 FOR MORE.)


6. (C) EMBASSY COMMENT. WE CONTINUE TO BELIEVE THAT ALEMANNO
WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE
CAN. UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE
CONFIDENTIAL

PAGE 02 ROME 06137 02 OF 03 270952Z
PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH,
ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE
INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL
AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END
COMMENT.

WHY DOESN'T BERLUSCONI TAKE CONTROL?


7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE
BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN
ITALIAN POLICY, WHY HASN'T IT HAPPENED? FOUR INTERLOCKING
FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE
BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE
PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL
U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK
OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN
SUPPORTING A POLICY CHANGE IN ITALY AND THE EU.


8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER
ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO
HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY:
ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY
COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY
IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT.
BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM; ABSENT
SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED
INACTION),HE WON'T. ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY
IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS
ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL
FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT
THE EU LEVEL. ALEMANNO HAS ALSO TAPPED INTO THE GREAT
CONFIDENTIAL

PAGE 03 ROME 06137 02 OF 03 270952Z
CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS
THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY",
"TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN
PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS
LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL
TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE
BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS.


9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE
COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC
POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND
DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION
AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A
BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER.
PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE
AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC
INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY
OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE
PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO
GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY.


10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL
US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP
BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY.
THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO
COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN
ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING
STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ
AND ELSEWHERE. HOWEVER, THE CONSEQUENCE OF THIS LOGICAL
RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A
SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE. EMBASSY
CONFIDENTIAL

PAGE 04 ROME 06137 02 OF 03 270952Z
ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT
CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY
BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND
INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS
MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR
SCREEN.


11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY
THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR
QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN
IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH.
WE SEE TWO POSSIBILITIES FOR DOING THIS:

--CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU
POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO
INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN
AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD;

--CONVINCING THE PRIME MINISTER THAT THE U.S. WITH
PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS

CONFIDENTIAL

CONFIDENTIAL PTQ1991

PAGE 01 ROME 06137 02 OF 03 091033Z
ACTION SSO-00

INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00
E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00
/001W
-------------- 225D2F 091033Z /38
P 270939Z DEC 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7492
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137

SIPDIS

C O R R E C T E D - COPY (ADDED ADDRESSEE(S))

DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER
DEPT FOR EUR
DEPT FOR EB
DEPT FOR OES
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH
CONFIDENTIAL

PAGE 02 ROME 06137 02 OF 03 091033Z

STANDARDS FOR SPRING PLANTING. (SEE ROME 5743 FOR MORE.)


6. (C) EMBASSY COMMENT. WE CONTINUE TO BELIEVE THAT ALEMANNO
WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE
CAN. UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE
PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH,
ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE
INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL
AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END
COMMENT.

WHY DOESN'T BERLUSCONI TAKE CONTROL?


7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE
BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN
ITALIAN POLICY, WHY HASN'T IT HAPPENED? FOUR INTERLOCKING
FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE
BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE
PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL
U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK
OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN
SUPPORTING A POLICY CHANGE IN ITALY AND THE EU.


8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER
ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO
HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY:
ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY
COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY
IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT.
BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM; ABSENT
CONFIDENTIAL

PAGE 03 ROME 06137 02 OF 03 091033Z
SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED
INACTION),HE WON'T. ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY
IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS
ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL
FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT
THE EU LEVEL. ALEMANNO HAS ALSO TAPPED INTO THE GREAT
CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS
THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY",
"TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN
PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS
LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL
TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE
BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS.


9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE
COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC
POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND
DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION
AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A
BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER.
PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE
AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC
INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY
OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE
PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO
GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY.


10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL
US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP
BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY.
THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO
CONFIDENTIAL

PAGE 04 ROME 06137 02 OF 03 091033Z
COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN
ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING
STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ
AND ELSEWHERE. HOWEVER, THE CONSEQUENCE OF THIS LOGICAL
RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A
SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE. EMBASSY
ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT
CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY
BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND
INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS
MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR
SCREEN.


11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY
THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR
QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN
IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH.
WE SEE TWO POSSIBILITIES FOR DOING THIS:

--CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU
POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO
INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN
AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD;

--CONVINCING THE PRIME MINISTER THAT THE U.S. WITH
PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS

CONFIDENTIAL

CONFIDENTIAL PTQ1997

PAGE 01 ROME 06137 03 OF 03 091033Z
ACTION SSO-00

INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00
E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00
/001W
-------------- 225D59 091033Z /38
P 270939Z DEC 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7493
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

C O N F I D E N T I A L SECTION 03 OF 03 ROME 006137

SIPDIS

C O R R E C T E D - COPY (ADDED ADDRESSEE(S))

DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER
DEPT FOR EUR
DEPT FOR EB
DEPT FOR OES
STATE PASS TO USDA FAS WASHDC
USDA FOR U/S PENN AND HEGWOOD
STATE PASS USTR

E.O. 12958: DECL: 12/24/2012
TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN
SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH
CONFIDENTIAL

PAGE 02 ROME 06137 03 OF 03 091033Z

ILLEGAL MORATORIUM, THEREBY CREATING AN OPENING FOR THE GOI
TO LEAD EUROPE TO A SOLUTION THAT WOULD AVOID A FULL FLEDGED
TRADE DISPUTE.

THE U.S. AND THE EU -- TRADE AND TECHNOLOGY TRADEOFFS


12. (C) TO MOVE THE GOI IN THE RIGHT DIRECTION ON BIOTECH
WILL REQUIRE BOTH A TOP-DOWN STRATEGY SUPPORTED BY
WASHINGTON, AND A BOTTOM-UP STRATEGY WITHIN ITALY. WITH
RESPECT TO THE LATTER, WE WILL CONTINUE OUR WORK WITH
IMPORTANT CONSTITUENT GROUPS LIKE THE ACADEMIC COMMUNITY,
FARMERS AND THEIR ASSOCIATIONS, CONSUMERS AND CONSUMER
ORGANIZATIONS, EDUCATORS, AND THE MEDIA TO BETTER INFORM
PUBLIC DEBATE AND GAIN WIDER RECOGNITION OF THE LOW RISKS AND
HIGH BENEFITS OF BIOTECHNOLOGY FOR FARMERS AND CONSUMERS.
ULTIMATELY, HOWEVER, BERLUSCONI HIMSELF MUST CROSS THE
RUBICON, AND LEAVE HIS AG MINISTER BEHIND IF ALEMANNO CANNOT
OR WILL NOT ACCEPT CHANGES IN ITALIAN POLICY. THE TRICK WILL
BE TO OVERRULE OR NEUTRALIZE ALEMANNO WITHOUT ALIENATING HIS
SUPPORTERS OR FRACTURING HIS COALITION -- A DIFFICULT TASK IN
A POLITICAL CULTURE BASED ON CONSENSUS.


13. (C) WE CAN AT BEST CHANGE THE POLITICAL TERRAIN THE GOI
LOOKS AT WHEN IT CONSIDERS THE ACCEPTABILITY OF POLICY
CHANGE. COORDINATED EFFORT FROM WASHINGTON WILL BE REQUIRED
IN THE MONTHS AHEAD IF WE ARE TO HAVE ANY CHANCE OF SECURING
GOI LEADERSHIP ON BIOTECHNOLOGY DURING ITS EU PRESIDENCY.
WE KNOW THAT THE PM IS CONCERNED ABOUT, AND WOULD LIKE TO
AVOID, A WTO CASE ON HIS EU WATCH, AND THIS MAY GIVE US
LEVERAGE ON THE ISSUE. USEU HAS POINTED OUT THAT A WTO CASE
CONFIDENTIAL

PAGE 03 ROME 06137 03 OF 03 091033Z
COULD GIVE ANTI-BIOTECH POLITICIANS IN MEMBER STATES LIKE
ITALY THE OPPORTUNITY TO PROCLAIM THAT THE BIOTECHNOLOGY
DEBATE HAS ALWAYS BEEN ABOUT GETTING U.S. PRODUCT INTO EU
MARKETS, AND THAT ALL THE TALK ABOUT WISE DEPLOYMENT OF THE
TECHNOLOGY WAS JUST A RUSE. ON THE OTHER HAND, OUR PRINCIPAL
CONTACT AT THE MINISTRY OF ENVIRONMENT HAS SUGGESTED THAT A
WTO CASE MIGHT BE THE ONLY WAY TO RAISE THE ATTENTION OF EU
MEMBER STATES. THIS OFFICIAL FURTHER SUGGESTS THAT A WELL
THOUGHT OUT CONSULTATIONS PERIOD COULD PROVE USEFUL IN ITALY
BECAUSE IT WOULD ENGAGE THE FOREIGN AFFAIRS ELEMENTS OF THE
ITALIAN GOVERNMENT IN THE PROBLEM. VICE MINISTER OF FOREIGN
TRADE URSO IS ALREADY EMERGING AS A VOCAL AND PUBLIC OPPONENT
OF AG MINISTER ALEMANNO, AND A WTO "THEATER" MIGHT USEFULLY
AMPLIFY HIS INFLUENCE.


14. (C) EMBASSY RECOMMENDATION: WHETHER OR NOT WASHINGTON
DECIDES TO PURSUE A CASE IN THE WTO, WE RECOMMEND TESTING THE
LIMITS OF THE GOI'S ABILITY TO PLAY A CONSTRUCTIVE ROLE ON
BIOTECH DURING ITS EU PRESIDENCY DURING THE SECOND HALF OF

2003. SPECIFICALLY, WE RECOMMEND A MARCH VISIT BY A HIGH
LEVEL USTR-STATE-USDA TEAM TO RAISE THE PROFILE OF BIOTECH ON
OUR BILATERAL AGENDA AND PRESS FOR IMPROVEMENTS IN
LONGSTANDING IRRITANTS, SUCH AS THE AMATO DECREE, IN ADVANCE
OF ITALY'S ASSUMING THE EU PRESIDENCY. WE WERE TOLD BY THE
MINISTRY OF ENVIRONMENT ON DECEMBER 4 THAT ITALY MAY HOLD A
EUROPEAN LEVEL CONFERENCE ON BIOTECHNOLOGY DURING ITS
PRESIDENCY, WHICH SUGGESTS A TIMELY USG VISIT COULD BE
PRODUCTIVE.
SEMBLER