BIOTECH: CORN CRISIS IN PIEMONTE COULD TEST PRIME

C O N F I D E N T I A L SECTION 01 OF 02 ROME 003180

SIPDIS


FROM AMBASSADOR FOR SEC OF AGRICULTURE VENEMAN, STATE U/S
LARSON, AND USTR ZOELLICK
STATE PASS USTR FOR ZOELLICK
STATE PASS USDA FOR OSEC VENEMAN, FAS TERPSTRA, BLUM,
SIMMONS, EJONES

E.O. 12958: DECL: 07/11/2013
TAGS: EAGR ECON ETRD PREL TBIO IT WTO
SUBJECT: BIOTECH: CORN CRISIS IN PIEMONTE COULD TEST PRIME
MINISTER'S RESOLVE

REF: MILAN 452

CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D).


1. (U) THIS IS AN ACTION MESSAGE.


2. (C) SUMMARY AND ACTION REQUEST. AS WE'VE NOTED
PREVIOUSLY, ITALY'S COMPLICATED COALITION ARRANGEMENTS MEAN
THAT PM BERLUSCONI IS THE ONLY PERSON WHO CAN CURB
AGRICULTURE MINISTER ALEMANNO'S DETERMINED EFFORTS TO CREATE
A BIOTECH-FREE ITALY. UP TO THIS POINT, THE PRIME MINISTER
HAS BEEN RHETORICALLY SUPPORTIVE OF BIOTECH BUT HAS DONE
LITTLE TO REIN IN ALEMANNO, AND WE HAVE LACKED A SPECIFIC
ACTION OR PROBLEM WE COULD USE TO TEST THE PRIME MINISTER'S
RESOLVE. WE NOW HAVE THE TEST CASE. REGIONAL OFFICIALS'
RECENT DECISION TO SEIZE AND POSSIBLY DESTROY CORNFIELDS
(REFTEL) HAVE GIVEN US A DISCRETE INCIDENT WE CAN USE TO TEST
PRIME MINISTER BERLUSCONI'S AVOWED SUPPORT FOR BIOTECHNOLOGY.
COALITION TENSIONS WILL MAKE HIM RELUCTANT TO TACKLE THE
ISSUE, AS FORCING HIS AGMINISTER'S HAND NOW WILL RISK
ALIENATING THE ALLEANZA NAZIONALE, THE PM'S MOST STABLE
COALITION PARTNER. BUT LEFT UNCHALLENGED, THE FIELD SEIZURES
(CONDUCTED BECAUSE OF THEIR ALLEGED CONTAMINATION BY BIOTECH
SEED) ULTIMATELY COULD JEOPARDIZE A $15 MILLION MARKET FOR
U.S. SEED EXPORTERS. WE HAD HOPED THAT INTERVENTION BY
HEALTH MINISTER SIRCHIA WOULD PRECLUDE ADDITIONAL SEIZURES,
BUT TODAY'S PRESS REPORTS FROM THE REGION INDICATE THAT
DESTRUCTION OF ADDITIONAL FIELDS MAY BE IMMINENT. IT WILL
TAKE FIRM ACTION BY PM BERLUSCONI TO REIN IN HIS AGGRESSIVE
AGRICULTURE MINISTER AND RESOLVE THIS MATTER
DEFINITIVELY--ACTION HE IS LIKELY TO TAKE ONLY IF HE KNOWS IT
IS IMPORTANT TO THE U.S. PRESIDENT HIMSELF. THE CORN CRISIS
GIVES US A CONCRETE POINT OF DEPARTURE FOR A CONVERSATION
ABOUT BILATERAL BIOTECH ISSUES DURING BERLUSCONI'S VISIT TO
CRAWFORD -- AND SOMETHING THAT WILL REQUIRE THE PM TO OFFER
MORE THAN JUST POSITIVE SENTIMENTS.



3. (C) SUMMARY AND ACTION REQUEST CONTINUED: BERLUSCONI'S
UPCOMING VISIT TO CRAWFORD GIVES US THE PERFECT VENUE TO
PRESS OUR CASE. THE PRIME MINISTER'S TOP ADVISORS ALREADY
ANTICIPATE BIOTECH'S INCLUSION ON THE AGENDA. IF THE
PIEMONTE AUTHORITIES ARE APPLYING A ZERO TOLERANCE FOR THE
ADVENTITIOUS PRESENCE OF BIOTECH EVENTS AS THE BASIS FOR
THESE FIELD SEIZURES UNDER THE GUIDANCE OF ALEMANNO, LEAVING
HIM UNCHALLENGED COULD COST US IN REAL ECONOMIC TERMS.
MOREOVER, ALEMANNO COULD WELL BE POSITIONING ITALY TO DRAW ON
THE NEW EU COEXISTENCE PROVISIONS TO EXEMPT ITSELF FROM EU
CONSENSUS WHEN THE ILLEGAL MORATORIUM FINALLY ENDS. STRONG
ACTION NOW COULD SAVE US FROM A MAJOR BILATERAL PROBLEM DOWN
THE LINE. THE PRESIDENT SHOULD ASK THE PRIME MINISTER TO
STOP THIS UNWARRANTED SEIZURE AND DESTRUCTION OF FIELDS, AND
TO TAKE ACTIVE MEASURES TO END THE EU MORATORIUM. END SUMMARY
AND ACTION REQUEST.



4. (C) IN A JULY 10 MEETING WITH MINISTER OF HEALTH SIRCHIA,
AMBASSADOR AND AGMINCOUNS PRESSED SIRCHIA TO OVERTURN
PIEMONTE REGIONAL AUTHORITIES' RECENT DECISION TO SEIZE, AND
POSSIBLY DESTROY, AN ADDITIONAL 980 ACRES OF CORNFIELDS
BEYOND 25 ACRES ALREADY DESTROYED (SEE REFTEL). REGIONAL
AUTHORITIES SEIZED THE FIELDS BECAUSE THEY ALLEGEDLY
CONTAINED CORN PLANTS ORIGINATING FROM BIOTECH SEED. WHEN WE
FIRST RAISED THE MATTER WITH SIRCHIA ON JULY 4, HE OFFERED TO
PRESS THE RELEVANT PIEMONTE OFFICIALS TO OVERTURN THE
SEIZURES AND FOREGO ANY ADDITIONAL ONES. SIRCHIA ALSO SAID
HE WOULD CONTACT PM BERLUSCONI, ALERT HIM TO THE PROBLEM AND
ENLIST HIS SUPPORT IN FORCING THE AGRICULTURE MINISTRY TO
STOP ENCOURAGING THESE TYPES OF REGIONAL 'ENFORCEMENT'
ACTIONS.


5. (C) IN HIS RESPONSE, SIRCHIA SAID HE HAD DIRECTED REGIONAL
HEALTH AUTHORITIES IN PIEMONTE TO DESIST FROM DESTROYING THE
FIELDS SEIZED OR FROM SEIZING ADDITIONAL FIELDS IF TESTING
REVEALED THE ADVENTITIOUS PRESENCE OF BIOTECH PLANTS. HE
ALSO SAID HE WAS CONVOKING THE RELEVANT OFFICIALS TO ROME FOR
A JULY 24 MOH BIOTECH REVIEW COMMITTEE MEETING TO DETERMINE
WHAT, IF ANY, ADDITIONAL ACTIONS WOULD BE TAKEN.


6. (C) IN CONTRAST TO SIRCHIA'S ENCOURAGING COMMENTS
YESTERDAY, THREE MAJOR ITALIAN DAILIES REPORTED THIS MORNING
THAT THE REGIONAL AUTHORITIES (I.E., PIEMONTE GOVERNOR, ENZO
GHIGO) ARE PREPARED TO DESTROY THE FIELDS IMMEDIATELY.
CONTACT WITH THE MINISTRY OF HEALTH THIS MORNING REVEALED

ROME 00003180 002 OF 002

LVEMENT OF THE LOCAL
MAGISTRATE'S OFFICE IN THE ORDER TO SEIZE AND DESTROY THE
FIELDS.


7. (C) SIRCHIA ALSO PROVIDED THE AMBASSADOR A COPY OF HIS
JULY 8 LETTER TO BERLUSCONI (TEXT PARA 9),IN WHICH HE WARNED
BERLUSCONI THAT THE SEIZURES AND OTHER ACTIONS BY AG MINISTER
ALEMANNO RISKED LEADING ITALY INTO A TRADE DISPUTE WITH THE
U.S. THAT WOULD SERIOUSLY UNDERMINE ITALIAN COMMERCIAL
INTERESTS. SIRCHIA TOLD THE AMBASSADOR THAT BERLUSCONI'S
PERSONAL INTERVENTION WOULD BE NECESSARY TO RESTRAIN ALEMANNO
FROM IMPLEMENTING THE EXTREME (EVEN BY EU STANDARDS)
ANTI-BIOTECH VISION THE AGMINISTER HAS ADVOCATED CONSISTENTLY
WITH GROWING POLITICAL SKILL.


8. (C) AMBASSADOR REMINDED SIRCHIA ON JULY 9 THAT ITALY
IMPORTS 4 MILLION TONS OF SOYBEANS AND SOYBEAN MEAL, THE BULK
OF WHICH IS GENETICALLY-MODIFIED. ALEMANNO'S RHETORIC ABOUT
KEEPING ITALY FREE FROM GMO PRODUCTS WAS NOT ONLY FACTUALLY
INCORRECT, BUT BLATANTLY PROTECTIONIST AND DECEIVES ITALIAN
CONSUMERS. THE AMBASSADOR NOTED THAT THERE WAS STRONG
CONGRESSIONAL INTEREST IN BIOTECH ISSUES; WE COULD NOT RULE
OUT CONGRESS MOVING AHEAD TO IMPOSE COUNTER-MEASURES IF THE
CURRENT TREATMENT OF U.S. PRODUCTS CONTINUED.


9. (C) BEGIN INFORMAL EMBASSY TRANSLATION OF SIRCHIA LETTER
TO BERLUSCONI:

ROME, JULY 8, 2003

DEAR SILVIO,

I AM WRITING YOU TO DRAW YOUR ATTENTION TO THE MATTER
RELATING TO GENETICALLY MODIFIED ORGANISMS, WITH SPECIAL
REFERENCE TO THE SEEDS SECTOR.

PRESENTLY, NO LAW HAS BEEN ESTABLISHED TO SET A MAXIMUM
TOLERANCE LEVEL FOR THE POSSIBLE ADVENTITIOUS PRESENCE OF
GMOS IN SEEDS USED FOR CORN AND SOYBEAN CROPS.

THE ADVENTITIOUS PRESENCE OF GMOS IS TO BE ASCRIBED TO THE
ACCIDENTAL COMBINATION OF CROPS CONTAINING GENETICALLY
MODIFIED ORGANISMS LEGALLY AUTHORIZED IN THE EUROPE AND THE
UNITED STATES.

IN SPITE OF THE ABOVE, SOME REGIONS AND THE MINISTRY OF
AGRICULTURE ITSELF, RESPONSIBLE FOR THE SEEDS SECTOR, SHOW NO
TOLERANCE FOR BIOTECHNOLOGIES AND GMOS WITH CONSEQUENT
NEGATIVE IMPACT ON THE AGRO-FOOD SECTOR.

PENDING THE EUROPEAN REGULATIONS ON LABELING AND
TRACEABILITY, AN ATTITUDE OF THIS KIND IS ONLY CREATING
PROBLEMS IN THE RELATIONSHIP WITH THE UNITED STATES OF
AMERICA. TOMORROW, THE AMBASSADOR OF THE UNITED STATES OF
AMERICA, MEL SEMBLER, AND THE MINISTER-COUNSELOR FOR
AGRICULTURAL AFFAIRS, LISA HARDY-BASS, WILL BE MEETING WITH
ME TO DELIVER A FORMAL PROTEST ON BEHALF OF THE U.S.
GOVERNMENT, AS WAS ANTICIPATED BY SECRETARY OF HEALTH AND
HUMAN SERVICES TOMMY THOMPSON LAST JUNE IN WASHINGTON. THEIR
REQUEST IS FOR YOUR ACTION, NOT SO MUCH MINE, TO AVOID
UNPLEASANT CONSEQUENCES THAT COULD HIGHLY COMPROMISE OUR
TRADE RELATIONS WITH THE UNITED STATES, INCLUDING RETALIATION
FOR SOME PRODUCTS.

I AM WELL AWARE OF HOW DIFFICULT THIS PROBLEM IS, BUT I AM
CONVINCED THAT YOUR INTERVENTION MAY CONTRIBUTE TO THE
SOLUTION OF THIS PROBLEM.

(COMPLIMENTARY CLOSING)


SEMBLER

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2003ROME03180 - Classification: CONFIDENTIAL