HEAD OF ITALIAN PRIVACY AUTHORITY CRITICAL OF PNR AGREEMENT AND CONCERNED ABOUT SAFE HARBOR APPLICATION

UNCLAS SECTION 01 OF 02 ROME 001528

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SENSITIVE

STATE PASS USTR
STATE PASS FTC
DEPT ALSO FOR EUR/WE, EUR/ERA, EB/CIP
USDOC 4212/ITA/MAC/OEURA/CPD/DDEFALCO

E.O. 12958: N/A
TAGS: ECPS ETRD ETRD IT EUN ITECPS EUN
SUBJECT: HEAD OF ITALIAN PRIVACY AUTHORITY CRITICAL OF
PNR AGREEMENT AND CONCERNED ABOUT SAFE HARBOR APPLICATION


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THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT
ACCORDINGLY. NOT FOR INTERNET DISTRIBUTION.


1. (U) THIS CABLE CONTAINS AN ACTION REQUEST - SEE
PARAGRAPH 7.


2. (SBU) SUMMARY: DURING A MARCH 26 CONFERENCE HOSTED BY
THE ITALIAN PRIVACY AUTHORITY, CHAIRMAN STEFANO RODOTA
AND SECRETARY GENERAL GIOVANNI BUTTARELLI EXPRESSED
SERIOUS CONCERN REGARDING CONTINUED U.S.-EU DIVERGENCE IN
PRIVACY PROTECTION. PASSENGER NAME RECORD (PNR) AND SAFE
HARBOR WERE SINGLED OUT AS MATTERS OF PARTICULAR CONCERN.
RODOTA AND BUTTARELLI ALSO CRITICIZED THE EU COMMISSION
FOR APPROVING THE PNR AGREEMENT WITHOUT ADEQUATE
CONSULTATION WITH EU PRIVACY AUTHORITIES AND POLITICAL
LEVEL OFFICIALS. IN A SEPARATE PRIVATE CONVERSATION WITH
ECON, SECRETARY GENERAL BUTTARELLI ALSO EXPRESSED HIS
DISAPPOINTMENT REGARDING THE PERCEIVED LACK OF FOLLOW-UP
BY THE USG TO A MARCH 2002 EU PRIVACY VISIT (LED BY
ITALY) TO THE U.S. END SUMMARY.

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EU-U.S. AT ODDS ON PRIVACY PROTECTION AFTER SEPTEMBER 11
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3. (SBU) AT A MARCH 26 CONFERENCE HOSTED BY THE ITALIAN
PRIVACY AUTHORITY, CHAIRMAN STEFANO RODOTA (WHO ALSO
HEADS THE EU ARTICLE 29 PRIVACY AUTHORITIES' WORKING
GROUP) UNDERSCORED THAT TRADITIONALLY THE EU AND THE U.S.
HAVE TAKEN A DIFFERENT APPROACHES TOWARDS PRIVACY
PROTECTION. HOWEVER, FOLLOWING SEPTEMBER 11TH, U.S.
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"DEMANDS" TO ACCESS PERSONAL INFORMATION, "ALTHOUGH BASED
ON UNDERSTANDABLE SECURITY CONCERNS", ARE NOW AT COMPLETE
ODDS WITH ROOTED EU PRIVACY BELIEFS, HE ARGUED. HE USED
PNR AS THE CASE STUDY EXAMPLE IN WHICH U.S. AND EU
POSITIONS DIVERGE COMPLETELY. RODOTA BELIEVES THE PNR
AGREEMENT NEEDS A THOROUGH REVIEW, AND EXPRESSED HOPE
THAT A COMPROMISE SOLUTION MIGHT BE FOUND ON PNR IN ORDER
TO AVOID A U.S.-EU "PRIVACY CRISIS."

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COMMISSION LACKS PRIVACY CULTURE
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4. (SBU) RODOTA AND BUTTARELLI WERE ALSO CRITICAL OF THE
EU "BUREAUCRATS" WHO SIGNED THE ORIGINAL PNR AGREEMENT
WITH THE U.S. RODOTA MAINTAINED THAT SUCH "BUREAUCRATS"
STILL DO NOT APPRECIATE PRIVACY CONCERNS SUFFICIENTLY.
BUTTARELLI SEPARATELY TOLD US THAT COMMISSION OFFICIALS
PROCEEDED WITHOUT ADEQUATE CONSULTATIONS WITH PRIVACY
AUTHORITIES, NOR DID THEY COORDINATE AT THE POLITICAL
LEVEL. HE INDICATED THAT EU COMMISSION OFFICIALS MADE A
HUGE MISTAKE. "SOME OF THOSE RESPONSIBLE HAVE ALREADY
BEEN REASSIGNED," HE SAID, SINCE THE AGREEMENT VIOLATES
NATIONAL PRIVACY LAWS AND IS ILLEGAL AND INAPPLICABLE.
PROOF, PER BUTTARELLI, IS THE RECENT OVERWHELMING
MAJORITY VOTE IN THE EU PARLIAMENT CALLING FOR REVISION
OF THE PNR AGREEMENT. "WE ARE NEGOTIATING NOW WHAT SHOULD
HAVE BEEN NEGOTIATED SIX MONTHS AGO" BUTTARELLI SAID.

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SAFE HARBOR - "WE WANT INFORMATION"
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5. (SBU) REGARDING SAFE HARBOR, WHILE EXPRESSING SOME
SATISFACTION WITH HOW IT IS FUNCTIONING, RODOTA AND
BUTTARELLI ALSO ARGUED THAT SAFE HARBOR NEEDS TO BE
COMPLEMENTED BY CONTRACTUAL PROTECTION AGREEMENTS. RODOTA
INDICATED THAT THE UPCOMING SAFE HARBOR REVIEW WILL BE
KEY IN ASSESSING ITS SUCCESS AND CONTINUATION.


6. (SBU) IN OUR SEPARATE CONVERSATION, BUTTARELLI ALSO
EXPRESSED HIS DISAPPOINTMENT REGARDING LACK OF FOLLOW-UP
TO A MARCH 2002 RODOTA-LED EU PRIVACY DELEGATION TO THE
U.S. HE DESCRIBED THE VISIT AS VERY PROMISING AND NOTED
THAT OPEN DIALOGUE HAD BEEN ESTABLISHED. HOWEVER,
ACCORDING TO BUTTARELLI, NOTWITHSTANDING TWO LETTERS SENT
BY RODOTA (ONE IN JULY 2002 AND A SECOND IN EARLY 2003)
REQUESTING FOLLOW-UP INFORMATION, U.S. AGENCIES SUCH AS
FTC, DEPARTMENT OF TRANSPORTATION, DEPARTMENT OF
COMMERCE, AND PRIVATE BB-ONLINE HAVE YET TO RESPOND.

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ACTION EUR-00

INFO LOG-00 CIP-00 EB-00 UTED-00 FTC-01 TEDE-00 STR-00
TEST-00 USPS-01 SAS-00 /002W
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R 100540Z APR 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC 9190
INFO DEPT OF COMMERCE WASHDC
DEPT OF TRANSPORTATION WASHDC
EU MEMBER STATES COLLECTIVE
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES

UNCLAS SECTION 02 OF 02 ROME 001528

SIPDIS

SENSITIVE

STATE PASS USTR
STATE PASS FTC
DEPT ALSO FOR EUR/WE, EUR/ERA, EB/CIP
USDOC 4212/ITA/MAC/OEURA/CPD/DDEFALCO

E.O. 12958: N/A
TAGS: ECPS ETRD ETRD IT EUN ITECPS EUN
SUBJECT: HEAD OF ITALIAN PRIVACY AUTHORITY CRITICAL OF
PNR AGREEMENT AND CONCERNED ABOUT SAFE HARBOR APPLICATION

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BUTTARELLI MAINTAINS THAT SUCH FOLLOW-UP INFORMATION IS
KEY TO THE ASSESSMENT AND IMPROVEMENT OF THE SAFE HARBOR
AGREEMENT. WHILE ACKNOWLEDGING THAT MORE AND MORE
COMPANIES ARE ADHERING TO SAFE HARBOR, BUTTARELLI SEES
THIS SYSTEM AS STILL THIN AND NEEDING
IMPROVEMENT/REVISION. HE INDICATED THAT COMMERCE UNDER
SECRETARY GRANT ALDONAS HAS PROPOSED A VIDEO CONFERENCE

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IN MAY BUT, THAT WHILE THIS IS WELCOME, HE VIEWS IT AS
INSUFFICIENT. BUTTARELLI ALSO UNDERSCORED RODOTA'S
PERSONAL DISAPPOINTMENT THAT THE LETTERS HE HAD SIGNED
PERSONALLY HAD RECEIVED NO RESPONSE.


7. (SBU) ACTION REQUESTED: WE WOULD APPRECIATE DEPARTMENT
UPDATING EMBASSY REGARDING REVIEW AND POSSIBLE RESPONSE
TO RODOTA'S LETTERS. RODOTA IS HIGHLY INFLUENTIAL WITHIN
THE GOI AND AMONG PRIVACY OFFICIALS EU-WIDE. HE IS ALSO
A CLOSE CONTACT OF THE EMBASSY. RODOTA IS EXPECTED TO
PLAY AN INFLUENTIAL ROLE ON PRIVACY-RELATED ISSUES DURING
ITALY'S UPCOMING EU PRESIDENCY.

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EU "WHITE LIST" GROWING BUT SOME CONCERN IN-HOUSE
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8. (SBU) RODOTA AND BUTTARELLI EXPRESSED SATISFACTION
THAT THE COUNTRIES ON THE EU'S PRIVACY WHITE LIST (I.E.,
THOSE COUNTRIES WHICH ARE MOVING TOWARDS A EUROPEAN
STANDARD OF REGULATED PRIVACY PROTECTION) IS RAPIDLY
EXPANDING "TO ALSO INCLUDE CANADA AND SOME AFRICAN
STATES." ON THE OTHER HAND, SOME CONCERN EXISTS WITH THE
"SOMEWHAT LESS THAN SATISFACTORY" COORDINATION/ATTENTION
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WITHIN THE EU AND WITH THE EU COMMISSION ON PRIVACY
ISSUES. NATIONAL IMPLEMENTATION OF THE EU PRIVACY
DIRECTIVE VARIES CONSIDERABLY AMONG MEMBER STATES. SOME
NATIONAL LAWS, RODOTA ARGUED, ARE TOO PERMISSIVE AND
POTENTIALLY COULD DRIVE EU PRIVACY PROTECTION STANDARDS
DOWNWARDS. (NOTE: THE LATTER POINT REGARDING PRIVACY
COORDINATION AND PROTECTION LEVELS AMONG MEMBER STATES
WAS LARGELY PLAYED DOWN BY BUTTARELLI IN OUR PRIVATE
CONVERSATION. HOWEVER, HE DID CONFIRM THAT PRIVACY LAWS
VARY - AND WITH THEM LEVELS OF PRIVACY PROTECTION - AMONG
EU COUNTRIES).

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COMMENT
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9. (SBU) WHILE ITALIAN PRIVACY COMMISSION AUTHORITIES
HAVE FREQUENTLY CRITICIZED U.S. STANDARDS OF PRIVACY
PROTECTION, THEIR DIRECT CRITICISM OF EU COMMISSION
"BUREAUCRATS" WHO DO NOT HAVE A "PRIVACY CULTURE" IS
UNUSUAL. THEY CLEARLY VIEW THE DIFFERENT APPROACH TAKEN
BY MEMBER STATES REGARDING PRIVACY PROTECTION AS A THREAT
TO THE HIGH LEVEL OF PRIVACY PROTECTION TO WHICH RODOTA
AND BUTTARELLI ASPIRE. WE CAN EXPECT THAT THE PRIVACY
COMMISSION WILL TRY TO USE ITALY'S UPCOMING EU PRESIDENCY
TO PRESS OTHER MEMBER STATES TO GET ON BOARD WITH THE
HIGHEST LEVELS OF PRIVACY PROTECTION.

SEMBLER

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2003ROME01528 - Classification: UNCLASSIFIED