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

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2003ROME03386 - Classification: SECRET