ITALY MORE RECEPTIVE TO GALILEO M-CODE OVERLAY

C O N F I D E N T I A L ROME 000200

SIPDIS

E.O. 12958: DECL: 01/13/2013
TAGS: TSPA TSPL PREL ECPS ETRD IT EUN NATO AVIATION
SUBJECT: ITALY MORE RECEPTIVE TO GALILEO M-CODE OVERLAY
CONCERNS

REF: STATE 259165

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CLASSIFIED BY: POLITICAL MINISTER COUNSELOR THOMAS COUNTRYMAN
FOR REASONS 1.5(B)(D)


1. (C) GALILEO AND THE M-CODE OVERLAY ISSUE CAME UP DURING
SEPARATE MEETINGS ON JANUARY 14 AND 15 ON OTHER ISSUES
(REPORTED SEPTEL) WITH MINISTER OF PRODUCTIVE ACTIVITIES
(I.E. INDUSTRY) MARZANO AND GIOVANNI BRAUZZI, HEAD OF THE
ITALIAN MFA NATO AFFAIRS OFFICE. MARZANO DISPLAYED CLEAR
INTEREST IN THE ISSUE DURING A BRIEF JANUARY 15 DISCUSSION
WITH ECMIN OF REFTEL TALKING POINTS AND THE USG WHITE PAPER.
HE INSTRUCTED HIS SUBORDINATES TO CONTACT OTHER ITALIAN
MINISTRIES INVOLVED IN THE ISSUE, AND MAY CONVENE AN
INTERAGENCY MEETING ON THE SUBJECT.


2. (C) DURING A JANUARY 14 MEETING, BRAUZZI TOLD POL-MIL
OFFICER THAT ITALY AGREES THAT NATO AND THE EU SHOULD WORK
TOGETHER TO RESOLVE THE M-CODE IMPASSE. THE GOI WAS VERY
DISAPPOINTED WITH FRANCE'S MANEUVERING DURING RECENT NATO
DISCUSSIONS OF ALTERNATIVES, HE ADDED. FRANCE HAD
OVER-EMPHASIZED SEVERAL POINTS THAT STYMIED A PRELIMINARY
AGREEMENT AT NATO THAT WOULD HAVE BEEN VERY HELPFUL. SEVERAL
MEMBERS OF THE NATO C3 BOARD DID NOT SEEM FAMILIAR WITH THE
USG WHITE PAPER PROPOSALS, ACCORDING TO BRAUZZI, WHICH HAD
SLOWED DISCUSSIONS CONSIDERABLY. HE CLAIMED THAT ITALY HAS
BEEN ACTIVE IN NATO ON GALILEO AND HAS TRIED TO PLAY A
POSITIVE AND CONSTRUCTIVE ROLE.


3. (C) BRAUZZI EMPHASIZED THAT ITALY AND, HE SAID, THE EU
WANT TO PROCEED WITH TECHNICAL DISCUSSIONS WITH THE US TO
REACH AN AGREEMENT. THE USG PROPOSAL FOR THE EU TO NEGOTIATE
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FREQUENCY USE WITH RUSSIA WAS NOT ATTRACTIVE; THERE ISN'T THE
SAME DEGREE OF INTEROPERABILITY WITH THE RUSSIANS, HE SAID,
WHICH MAKES REACHING AN AGREEMENT WITH THE RUSSIANS UNLIKELY.
WITH THE BERLIN PLUS BOTTLENECK FREED, BRAUZZI SAID THE
DEBATE ON GALILEO SHOULD MOVE FORWARD SUBSTANTIVELY TO ENSURE
EU-NATO INTEROPERABILITY AND MILITARY SECURITY. WHAT WOULD
FURTHER M-CODE DISCUSSIONS IS EVIDENCE THAT THE USG SEES
GALILEO AS A "COMMON" ASSET THAT EXPANDS THE ALLIANCE'S
CAPABILITIES, BRAUZZI COMMENTED. HE ACKNOWLEDGED THE
COMPETITIVE ASPECTS OF GPS AND GALILEO, BUT SUGGESTED THAT
THE TECHNICAL PROBLEMS AND MODALITIES COULD BE RESOLVED IN A
MUTUALLY BENEFICIAL WAY.


4. (C) COMMENT: POST IS NOT IN A POSITION TO EVALUATE
BRAUZZI'S COMMENTS ABOUT THE EU, BUT WE DO DETECT A MORE
OPEN-MINDED NOTE IN BOTH MARZANO'S AND BRAUZZI'S RESPONSES ON
THE M-CODE ISSUE THAN WE HAVE HEARD BEFORE. UNTIL NOW, THE
GOI HAS BEEN RELUCTANT TO ENGAGE ON GALILEO AS A MILITARY
SECURITY ISSUE, DESPITE OUR EMPHASIS ON THE SERIOUS SECURITY
RISK POSED BY THE M-CODE OVERLAY PROBLEM. EMBASSY EFFORTS TO
BROADEN GOI ATTENTION TO GALILEO BEYOND THE TRANSPORT
MINISTRY AND THE ITALIAN SPACE AGENCY (ASI),WHICH REMAIN
STAUNCH SUPPORTERS OF THE PROJECT, MAY BE GETTING THROUGH.
THE INDUSTRY MINISTRY'S EQUITIES IN GALILEO LIE ALMOST
ENTIRELY IN THE JOBS IT WILL CREATE AND THE COMPETITIVE
BENEFITS TO THE ITALIAN AEROSPACE INDUSTRY, ESPECIALLY IF
PRINCIPAL GALILEO PRODUCTION FACILITIES ARE LOCATED IN ITALY
AS THE GOI HOPES. AS SUCH, THE MINISTRY CAN BE EXPECTED TO
SUPPORT ANY SOLUTION TO THE M-CODE PROBLEM THAT WILL MOVE THE
PROJECT FORWARD. THE UPCOMING GPS TEAM VISIT IS WELL-TIMED
TO BUILD ON THE GOI'S INCREASED WILLINGNESS TO DISCUSS
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REALISTIC ALTERNATIVE SOLUTIONS TO THE M-CODE OVERLAY
DISPUTE. END COMMENT.
SKODON

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2003ROME00200 - Classification: CONFIDENTIAL