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 CONFIDENTIAL PAGE 02 ROME 00200 170905Z 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 CONFIDENTIAL PAGE 03 ROME 00200 170905Z 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 CONFIDENTIAL PAGE 04 ROME 00200 170905Z REALISTIC ALTERNATIVE SOLUTIONS TO THE M-CODE OVERLAY DISPUTE. END COMMENT. SKODON CONFIDENTIAL > 2003ROME00200 - Classification: CONFIDENTIAL