ITALY ON ISRAEL, THE PA, AND THE MEPP BEFORE ITS

C O N F I D E N T I A L SECTION 01 OF 02 ROME 001665

SIPDIS

E.O. 12958: DECL: 04/16/2013
TAGS: PREL EAID IT IS EAID IT IS KPAL KPALPREL
SUBJECT: ITALY ON ISRAEL, THE PA, AND THE MEPP BEFORE ITS
EU PRESIDENCY

REF: ROME 1647
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PAGE 02 ROME 01665 01 OF 02 171655Z

CLASSIFIED BY: POLITICAL MC THOMAS COUNTRYMAN FOR REASONS 1.5 (B) AND (
D)


1. (C) SUMMARY: TEN WEEKS BEFORE ASSUMING THE EU PRESIDENCY,
ITALIAN MFA INDICATED THAT A VISIT BY PM BERLUSCONI TO ISRAEL
WAS LIKELY TO OCCUR IN EARLY JUNE, EMPHASIZED ITALY'S
POSITIVE BILATERAL RELATIONS WITH ISRAEL, UNDERLINED THE
IMPORTANCE OF THE CONFERENCE ON PALESTINIAN REFORM AND
ECONOMIC RECONSTRUCTION THAT WILL TAKE PLACE IN ROME MAY
28-29, AND WAS PESSIMISTIC ABOUT THE LIKELIHOOD OF THE EU
ENDORSING BERLUSCONI'S MARSHALL PLAN FOR THE PALESTINIAN
ECONOMY. END SUMMARY.

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POSSIBLE VISITS TO ISRAEL AND THE REGION
--------------


2. (C) ON APRIL 15, POL MC MET WITH LUCA FERRARI, THE MFA'S
OFFICE DIRECTOR FOR ISRAEL AND PALESTINIAN AFFAIRS. FERRARI
SAID THAT BERLUSCONI AND SHARON ENJOYED WARM PERSONAL
RELATIONS AND WERE IN REGULAR TELEPHONE CONTACT. BERLUSCONI
WANTED TO VISIT ISRAEL BEFORE ITALY ASSUMED THE EU
PRESIDENCY, PROBABLY IN THE FIRST TEN DAYS OF JUNE, SAID
FERRARI. ARRANGING THIS TRIP, HE ADDED HOWEVER, DEPENDED ON
BEING ABLE TO SET UP A MEANINGFUL MEETING WITH ABU MAZEN
"WHILE AVOIDING ANYTHING MORE THAN A HANDSHAKE WITH ARAFAT."
IF THAT PROVED TOO DIFFICULT, THE ALTERNATIVES WOULD BE
EITHER FOR SHARON TO COME TO ITALY OR FOR BERLUSCONI TO GO TO
JERUSALEM AND AVOID MEETING PALESTINIANS ALTOGETHER.
BERLUSCONI WOULD LIKE TO VISIT JORDAN, EGYPT, AND POSSIBLY
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PAGE 03 ROME 01665 01 OF 02 171655Z
SAUDI ARABIA ON THE SAME TRIP, SAID FERRARI. HE ADDED THAT
SEPARATE GOI PLANS INVOLVED SENDING MANTICA, THE MFA'S UNDER
SECRETARY FOR MIDDLE EASTERN AND AFRICAN AFFAIRS, TO LEBANON,

SIPDIS
SYRIA, AND PROBABLY ALSO JORDAN AND SAUDI ARABIA BEFORE ITALY
ASSUMED THE EU PRESIDENCY ON JULY 1. THERE WAS NO PLAN FOR
FM FRATTINI TO VISIT ANY OF THESE COUNTRIES, SAID FERRARI.
POL MC ASKED THAT THE GOI CONSULT WITH US CLOSELY ON ANY
POSSIBLE MEETING OF SENIOR GOI OFFICIALS WITH ABU MAZEN
AND/OR ARAFAT.

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BILATERAL RELATIONS
--------------


3. (C) MANY EU COUNTRIES HAVE OFTEN "MADE THE MISTAKE OF
KEEPING ISRAEL AT ARM'S LENGTH," LAMENTED FERRARI, THUS
MINIMIZING THE EU'S INFLUENCE ON THE MEPP. THE GOI, ON THE
OTHER HAND, HAS BEEN TRYING TO DEMONSTRATE TO ISRAEL THAT ITS
INTEREST IS NOT LIMITED ONLY TO THE MEPP BUT EXTENDED TO
BILATERAL TECHNICAL COOPERATION WITH ISRAEL, AS MANIFESTED BY
VISITS IN RECENT MONTHS TO ISRAEL BY THE ITALIAN MINISTER OF
COMMUNICATIONS AND THE ITALIAN MINISTER OF PRODUCTIVE
ACTIVITIES AND VICE MINISTER OF FOREIGN TRADE.

--------------
CONFERENCE ON PALESTINIAN REFORM
--------------


4. (C) FERRARI UNDERLINED THE IMPORTANCE OF THE CONFERENCE
THE GOI IS ORGANIZING IN ROME MAY 28-29 ON PALESTINIAN REFORM
AND ECONOMIC RECONSTRUCTION. HE SAID THAT THE GOI HAS
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PAGE 04 ROME 01665 01 OF 02 171655Z
CAREFULLY COORDINATED THIS CONFERENCE NOT ONLY WITH THE GREEK
PRESIDENCY OF THE EU, BUT ALSO WITH THE ISRAELIS AND THE
PALESTINIANS. FERRARI WAS VERY HOPEFUL FOR HIGH-LEVEL
ATTENDANCE AT THIS CONFERENCE, AND EXPRESSED SPECIAL INTEREST
IN A/S BURNS PARTICIPATING IN IT (REF A). HE ADDED THAT
SEPARATE MEETINGS OF THE QUARTET MEMBERS COULD TAKE PLACE
DURING THE CONFERENCE.

--------------
EUROSMEC
--------------


5. (C) FERRARI WAS CAUTIOUSLY CONFIDENT THAT THE ITALIAN
CANDIDATE LAURA MIRACHIAN WOULD REPLACE MIGAEL ANGEL
MORATINOS AS THE EUROSMEC (EUROPEAN SPECIAL MIDDLE EAST
COORDINATOR). FERRARI WAS HOPEFUL THAT MIRACHIAN WOULD BE
INFORMALLY APPROVED BY THE EU FMS IN THEIR MAY 2 GYMNICH
MEETING. HE FELT THE ITALIAN CANDIDATE HAD THE BACKING OF
THE U.K., PORTUGAL, SPAIN, AND GREECE. THE FRENCH, SAID
FERRARI, HAVE ALWAYS BEEN OPPOSED TO AN ITALIAN CANDIDATE FOR
THIS POSITION. THE FRENCH POSITION WAS NOW MORE UNYIELDING,
GIVEN THE FRANCO-ITALIAN DIPLOMATIC AND POLITICAL DIFFERENCES
ON IRAQ, BUT THE FRENCH WERE UNABLE TO PROMOTE ANY CREDIBLE
ALTERNATIVE TO MIRACHIAN. ONCE AGAIN, SPEAKING CAUTIOUSLY,

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CONFIDENTIAL PTQ9628

PAGE 01 ROME 01665 02 OF 02 171655Z
ACTION EUR-00

INFO LOG-00 NP-00 AID-00 CIAE-00 INL-00 DODE-00 DOEE-00
SRPP-00 DS-00 EAP-00 EB-00 OIGO-00 VC-00 TEDE-00
INR-00 LAB-01 L-00 VCE-00 AC-01 NEA-00 NSAE-00
NSCE-00 OMB-01 DHS-00 PA-00 PM-00 PRS-00 ACE-00
P-00 SCT-00 SP-00 SSO-00 TRSE-00 USIE-00 PMB-00
DSCC-00 PRM-00 DRL-01 G-00 NFAT-00 SAS-00 /004W
-------------- 578AB1 171656Z /38
O 171658Z APR 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 9337
INFO EUROPEAN POLITICAL COLLECTIVE PRIORITY
AMEMBASSY TEL AVIV PRIORITY
AMCONSUL FLORENCE PRIORITY
AMCONSUL JERUSALEM PRIORITY
AMCONSUL MILAN PRIORITY
AMCONSUL NAPLES PRIORITY
AMEMBASSY DAMASCUS

C O N F I D E N T I A L SECTION 02 OF 02 ROME 001665

SIPDIS

E.O. 12958: DECL: 04/16/2013
TAGS: PREL EAID IT IS EAID IT IS KPAL KPALPREL
SUBJECT: ITALY ON ISRAEL, THE PA, AND THE MEPP BEFORE ITS
EU PRESIDENCY

FERRARI SAID THAT, IF MIRACHIAN WERE TO OFFICIALLY BECOME THE
EUROSMEC, SHE COULD ASSUME HER DUTIES THE SAME DAY ITALY
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PAGE 02 ROME 01665 02 OF 02 171655Z
ASSUMES THE PRESIDENCY OF THE EU, ON JULY 1.

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THE "MARSHALL PLAN"
--------------


6. (C) ITALY WAS NOT GOING TO GIVE UP ON BERLUSCONI'S IDEA
FOR A "MARSHALL PLAN" FOR THE PALESTINIAN ECONOMY. HOWEVER,
FERRARI WAS PESSIMISTIC ABOUT THE LIKELIHOOD OF THE EU
ENDORSING THE MARSHALL PLAN IDEA. FIRST, MANY MEMBERS OF THE
EU WOULD BE RELUCTANT TO GIVE ITALY, AND SPECIFICALLY
BERLUSCONI, CREDIT FOR SUCH A PROGRAM. MORE IMPORTANTLY,
MOST EU MEMBERS WERE NOT INTERESTED IN POOLING THEIR
BILATERAL DONATIONS TO THE PALESTINIANS, BEYOND THAT ALREADY
MANDATED BY THE EU BUDGET.
SEMBLER

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2003ROME01665 - Classification: CONFIDENTIAL