ITALIAN FAST BOAT EXPORTS TO IRAN, LIBYA

S E C R E T ROME 003386 SIPDIS E.O. 12958: DECL: 07/24/2013 TAGS: PARM PREL PGOV ETTC IT LY IR EXPORT CONTROLS SUBJECT: ITALIAN FAST BOAT EXPORTS TO IRAN, LIBYA REF: SECSTATE 209602 CLASSIFIED BY: ECONOMIC MINISTER COUNSELOR SCOTT KILNER FOR REASONS 1.5 B AND D ¶1. (S) DEPUTY ASSISTANT SECRETARY FOR POLITICAL-MILITARY AFFAIRS ROBERT MAGGI, TOGETHER WITH ECMIN AND ECONOFF, RAISED CONTINUING U.S. CONCERNS REGARDING ITALIAN EXPORTS TO IRAN AND LIBYA (REFTEL) ON JULY 22 WITH MFA DIRECTOR GENERAL FOR ECONOMIC AND FINANCIAL AFFAIRS GIANDOMENICO MAGLIANO AND NON-PROLIFERATION COORDINATOR UGO DE MOHR. THE MEETING OCCURRED ON THE MARGINS OF BILATERAL DISCUSSIONS ON DUAL-USE EXPORT CONTROLS, LED BY MAGLIANO AND MAGGI (TO BE REPORTED SEPTEL). IRAN -------------- ¶2. (S) IN RAISING THE POINTS ON IRAN, DAS MAGGI NOTED U.S. APPRECIATION FOR THE ATTENTION PAID TO OUR CONCERNS BY FOREIGN MINISTER FRATTINI AND OTHER GOI OFFICIALS, WHICH WE UNDERSTOOD RESULTED IN THE ITALIAN FIRM FB DESIGN'S PLACING A TEMPORARY HOLD ON THE EXPORT OF ADDITIONAL PATROL BOATS TO IRAN. MAGGI URGED THE GOI TO ENSURE THAT THE HOLD BECOMES PERMANENT. ECMIN STATED THAT WE ARE URGENTLY CONCERNED ABOUT THE STATUS OF THE SHIPMENTS THAT WERE PENDING AT THE TIME THE GOI INFORMED US OF THE TEMPORARY HOLD. ¶3. (S) MAGGI SAID THAT THE U.S. RECOGNIZES THE GOI'S DIFFICULTY IN FORMALLY HALTING EXPORTS THAT DO NOT APPEAR TO FALL WITHIN THE SCOPE OF ITALIAN EXPORT CONTROL LISTS. HOWEVER, HE UNDERLINED HIGH U.S. ATTENTION TO FORCE PROTECTION, PRESENTLY FOCUSED IN PARTICULAR ON IRAQ AND THE PERSIAN GULF. THE U.S. RAISES SUCH CONCERNS WITH OTHER GOVERNMENTS WHENEVER WE BELIEVE AN EXPORT COULD BE A POTENTIAL THREAT TO OUR FORCES. WE HAVE GONE AS FAR AS CONFISCATING THE DELIVERY OF SIMILAR BOATS TO A COUNTRY IN THE REGION, WHICH UNDERSCORES THE REAL THREAT SUCH VESSELS CONSTITUTE. EVEN IF IRAN CAN PROCURE SUCH BOATS ELSEWHERE, AND EVEN GIVEN THE EXISTENCE OF OTHER THREATS, WE SHOULD WORK TOGETHER TO STEM ANY THREATS WHATEVER THEY MAY BE, WHENEVER WE CAN. ¶4. (S) MAGLIANO ACKNOWLEDGED THAT EFFECTIVE CONTROL OF POTENTIALLY THREATENING EXPORTS REQUIRED EFFORTS BY ALL SIDES. HE NOTED HIS INTEREST TO HEAR OF OUR EFFORTS TO PERSUADE OTHER COUNTRIES TO HALT THE TRANSFER OF SIMILAR BOATS. HE THEN MENTIONED THE DELICATE NATURE OF ITALY'S LONGSTANDING TIES WITH IRAN, AND THE GOI'S CONTINUED HOPES FOR POSITIVE EVOLUTION WITHIN IRAN. ITALY WAS CONCERNED ABOUT GIVING SIGNALS TO THE IRANIAN GOVERNMENT THAT MIGHT IMPEDE ITALIAN EFFORTS TO EFFECT POSITIVE CHANGES IN IRAN. REGARDING FB DESIGN SPECIFICALLY, DE MOHR PROMISED TO CHECK AGAIN ON THE STATUS OF THE SHIPMENT THAT HAD BEEN HALTED EARLIER THIS YEAR, AND TO CONFIRIM THE FIRM'S INTENTIONS REGARDING ANY FUTURE EXPORTS TO IRAN. (DE MOHR SAID THE FIRM PREVIOUSLY HAD TOLD HIM IT HAD NO INTENTION OF PURSUING FURTHER BUSINESS IN IRAN.) LIBYA -------------- ¶5. (S) MAGLIANO EMPHASIZED THE INCREASINGLY POSITIVE NATURE OF ITALY'S RELATIONS WITH LIBYA, INCLUDING LIBYA'S WILLINGNESS TO COOPERATE WITH ITALY IN STEMMING ILLEGAL IMMIGRATION, AN ISSUE OF GREAT CONCERN TO THE GOI. UNLIKE THE CASE OF IRAN, THE EXPORT OF PATROL BOATS AND RELATED EQUIPMENT TO LIBYA WAS CLEARLY IN ITALY'S NATIONAL INTERESTS. ECMIN SAID THE U.S. UNDERSTANDS THAT ILLEGAL IMMIGRATION FROM NORTH AFRICA TO ITALY IS A MAJOR PREOCCUPATION OF THE GOI. NEVERTHELESS, THE U.S. CONTINUES TO HAVE VERY REAL CONCERNS ABOUT LIBYAN WMD DEVELOPMENT AND LINKS TO TERRORISM, AND THE LIBYAN GOVERNMENT'S CONTINUED FAILURE TO COMPLY WITH ALL UNSC PROVISIONS RELATED TO THE LOCKERBIE BOMBING. ¶6. (S) COMMENT: WHILE NEITHER MAGLIANO NOR DE MOHR OFFERED ASSURANCES THAT THE TEMPORARY BLOCK ON FB DESIGN FAST BOAT DELIVERIES WILL BECOME PERMANENT, THE PRESENTATION OF THE DEMARCHE BY VISITING DAS MAGGI UNDOUBTEDLY IMPRESSED UPON THE MFA WASHINGTON'S CONTINUED CLOSE ATTENTION TO THIS ISSUE. ¶7. (U) THIS MESSAGE HAS BEEN CLEARED BY DAS MAGGI. SEMBLER NNNN 2003ROME03386 - Classification: SECRET