EXTRANCHECK: POST-SHIPMENT VERIFICATION AT ENEL

UNCLAS ROME 001996

SIPDIS


USDOC FOR USDOC FOR 532/OEA/SWADDY/MZAGER;
3133/USFCS/OIO/ESLETTEN/PBUCHER;
313O/USFCS/OIO/AGRANT
STATE FOR EB/ESP
FLORENCE FOR FCS

E.O. 12958: N/A
TAGS: BEXP ETTC IT ETDR
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION AT ENEL
PRODUZIONE RICERCA SPA - ERGA, PISA, ITALY

REF: USDOC O1214


1. FCS COMMERCIAL SPECIALIST BARBARA LAPINI (U.S. CITIZEN
AND COMMERCIAL ASSISTANT ALESSANDRA GOLA CARRIED OUT POST-
SHIPMENT VERIFICATION AT ENEL PRODUZIONE RICERCA SPA ON
APRIL 28, 2OO3.


2. POST MET FOR APPROXIMATELY 2 HOURS WITH LUCA GUIDI,
MANAGER OF AUTOMATION UNIT, AND MASSIMO GHIRONI,
TECHNICIAN/RESEARCHER, BOTH WITH THE RESEARCH CENTER AT EN
PRODUZIONE'S FACILITIES IN PISA, ITALY. THE MEETING BEGAN
WITH A DISCUSSION OF THE ACTIVITIES CONDUCTED AT THE PISA
FACILITY AND LED TO A DISCUSSION OF THE USE OF THE THERMAL
IMAGING SYSTEM EXPORTED UNDER SUBJECT LICENSE. MR. GUIDI
AND MR. GHIRONI SHOWED THE SYSTEM (KEPT IN A LOCKED CABINE
IN MR. GHIRONI'S OFFICE AT THE RESEARCH CENTER) TO THE FCS
OFFICIALS AND OFFERED A DETAILED EXPLANATION OF ITS USE FO
"PREVENTIVE MAINTENANCE", OR TO CHECK FOR OVERHEATING OF
MACHINERY OR MATERIALS IN THE ENERGY PRODUCTION PROCESS.
AS CONFIRMED BY CONVERSATIONS WITH THE MR. GUIDI AND MR.
GHIRONI, ENEL IS ITALY'S LARGEST PRODUCER OF ELECTRICAL
ENERGY, HAVING HAD A MONOPOLY ON ENERGY PRODUCTION IN ITAL
UNTIL 20O2 WHEN ITALY'S ENERGY MARKET WAS LIBERALIZED. EN
REMAINS TWO-THIRDS ITALIAN STATE-OWNED WHILE ONE-THIRD IS
NOW TRADED ON THE MILAN STOCK EXCHANGE AFTER A PARTIAL
PRIVATIZATION PROCESS.


3. POST WAS ABLE TO SCHEDULE VISIT WITHOUT DELAY FROM
OFFICIALS. MR. GUIDI PROVIDED DOCUMENTATION DETAILING THE
USE OF THE THERMAL IMAGING SYSTEM SINCE ITS DELIVERY.


4. PCS OFFICIALS WERE ABLE TO VIEW ENEL'S FACILITIES IN
ADDITION TO SEEING THE ACTUAL SYSTEM AND WHERE IT WAS KEPT
MR. GUIDI AND MR. GHIRONI WERE FAMILIAR WITH U.S. EXPORT
REGULATIONS AND LICENSING REQUIREMENTS.


5. RECOMMENDATION: ALL INDICATIONS WERE THAT THE GOODS HAV
BEEN USED IN ACCORDANCE WITH THE TERMS OF THE EXPORT LICENS
AND THAT ENEL PRODUZIONE RICERCA SPA CAN BE CONSIDERED A
RELIABLE RECIPIENT OF SENSITIVE U.S. TECHNOLOGY.

(ORIGIN: FCS ROME/KWARE/BLAPINI)
SEMBLER


2003ROME01996 - Classification: UNCLASSIFIED