ALENIA-SPAZIO AND CHINA: DELIVERY OF A/S

S E C R E T ROME 002340

SIPDIS


E.O. 12958: DECL: 05/23/2013
TAGS: CH ETTC IR IT PREL EXPORT CONTROLS
SUBJECT: ALENIA-SPAZIO AND CHINA: DELIVERY OF A/S
BLOOMFIELD LETTER


REF: STATE 138499

CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5
(B) AND (D)


1. (S) ECMIN, JOINED BY SCICOUNS, DELIVERED A/S BLOOMFIELD'S
LETTER AND ACCOMPANYING NON-PAPER ON MAY 23 TO MFA DIRGEN FOR
ECONOMIC AFFAIRS GIANDOMENICO MAGLIANO. ECMIN NOTED THAT
WASHINGTON OFFICIALS HAD APPRECIATED THE FEBRUARY APPROACH BY
GOI AND ITALIAN INDUSTRY REPRESENTATIVES, AND THAT USG
AGENCIES HAD REVIEWED THE PROPOSALS WITH GREAT CARE AND
DELIBERATION. A/S BLOOMFIELD'S LETTER REPRESENTED A
CONSTRUCTIVE RESPONSE TO MOVE BEYOND PAST DISAGREEMENTS AND
MISUNDERSTANDINGS AND TO INITIATE A COOPERATIVE DIALOGUE ON
NON-PROLIFERATION CONCERNS. SUCH A DIALOGUE COULD PAVE THE
WAY TO ENHANCED DEFENSE INDUSTRIAL COOPERATION WITH ITALY.


2. (S) ECMIN ALSO UNDERSCORED THAT WASHINGTON'S RESPONSE
HAD BEEN FAVORABLY INFLUENCED BY HELPFUL ACTIONS TAKEN BY THE
GOI ON SPECIFIC EXPORT CONTROL ISSUES OF CONCERN TO THE USG,
SUCH AS THE DECISION TO HALT DELIVERY OF HIGH SPEED PATROL
BOATS TO IRAN. SUCH ACTIONS WERE VERY IMPORTANT TO FOSTER
THE RIGHT ENVIRONMENT FOR POSITIVE BILATERAL DISCUSSIONS
CONCERNING ALENIA AND CHINA. FINALLY, ECMIN NOTED THAT THE
USG WAS PREPARED TO MOVE FORWARD EXPEDITIOUSLY WITH AD HOC
CONSULTATIONS, CONTINGENT ONLY ON GOI WRITTEN ASSURANCES THAT
ALENIA'S TWO SATELLITE STUDIES FOR CHINA HAD CONCLUDED, AS WE
HAD BEEN TOLD WAS THE CASE.


3. (S) AFTER READING THE LETTER AND NON-PAPER, MAGLIANO
OFFERED HIS PRELIMINARY REACTION THAT THEY DID REPRESENT A
POSITIVE STEP FORWARD. HE DID NOT FORECAST DIFFICULTY IN
PROVIDING THE REQUESTED WRITTEN ASSURANCES, BUT HE DID STRESS
THAT HE WOULD HAVE TO CONSULT CLOSELY ON ALL POINTS BOTH
WITHIN THE MFA AND WITH OTHER PARTS OF THE GOVERNMENT.


4. (S) WITH RESPECT TO INITIATING AD HOC CONSULTATIONS,
MAGLIANO SAID HE HAD ALREADY GIVEN SOME THOUGHT TO HOLDING A
FIRST ROUND OF DISCUSSIONS IN JUNE. IN THAT CONNECTION, HE
ASKED WHAT ROLE WE ENVISIONED FOR INDUSTRY REPRESENTATIVES IN
SUCH TALKS. DRAWING UPON REFTEL PARA 5, ECMIN REPLIED THAT
WE FELT THE CONSULTATIONS SHOULD INITIALLY BE HELD ON A
GOVERNMENT-TO-GOVERNMENT BASIS, BUT THAT
GOVERNMENT-TO-INDUSTRY TALKS MIGHT WELL BE A SENSIBLE
SUBSEQUENT STEP. MAGLIANO QUESTIONED HOW FAR DISCUSSIONS
COULD PROCEED WITHOUT INVOLVING CONCERNED COMPANIES IN SOME
WAY. HE SUGGESTED THAT THE FIRST CONSULTATIONS INCLUDE AT
LEAST TWO, BUT PREFERABLY THREE, SEPARATE SESSIONS: 1)
GOVERNMENT OFFICIALS ONLY; 2) GOVT REPS PLUS OUTSIDE
"INDEPENDENT" EXPERTS (I.E. FROM ACADEMIA OR NON-PROFIT
TECHNICAL INSTITUTES); 3) GOVT PLUS INDUSTRY REPS. ECMIN
SAID HE WOULD CONVEY THIS SUGGESTION TO WASHINGTON.
SKODON

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2003ROME02340 - Classification: SECRET