ITALY: 2003 REPORT TO CONGRESS ON ALLIED CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLAS SECTION 11 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, MCAP, MARR, IT, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO, ITPREF, NATO
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 11 OF 12 291714Z
KOSOVO, THE CURRENT PRIORITIES COVER THE FOLLOWING AREAS:
HEALTH, INFRASTRUCTURES AND SUPPORT OF MEDIUM AND SMALL SIZED
COMPANIES. ITALIAN MFA PLANS TO CONCENTRATE FUTURE
INITIATIVES ON INTERVENTION AIMED TO SUPPORT ECONOMIC
DEVELOPMENT OF THE PRIVATE SECTOR AND INSTITUTIONAL REFORMS

47. (U) THE ITALIAN PROGRAM OF COOPERATION STARTED AFTER THE
AGREEMENT BETWEEN THE GOVERNMENT OF SKOPJE AND THE ODA
DEPARTMENT OF MFA AND CONSISTS OF THE FOLLOWING INITIATIVES:

-- RATIONALIZATION OF THE MANAGING SECTOR AND MODERNIZATION
OF BIOMEDICAL EQUIPMENT: A GIFT OF USD 1.14 MILLION AND A
CREDIT AID OF USD 2.58 MILLION. THE PROGRAM STARTED IN
FEBRUARY 2000. AT PRESENT IT IS UNDER IMPLEMENTATION FOR THE
GIFT PORTION OF THE INTERVENTION WITH THE TECHNICAL
ASSISTANCE PROVIDED BY ITALIAN EXPERTS TO THE LOCAL
AUTHORITIES FOR THE CREATION OF THE NATIONAL SYSTEM OF
CLINICAL ENGINEERING AND FOR THE MODERNIZATION OF EXISTING
MEDICAL EQUIPMENT.
-- LINE OF SOFT CREDIT FOR USD 12.7 MILLION, AIMED AT THE
SUPPLY OF ITALIAN GOODS AND SERVICES FOR THE SAME VALUE IN
ORDER TO SUPPORT THE ACCESS OF MACEDONIAN SMALL AND MEDIUM
SIZED COMPANIES TO CREDITS AND OTHER FINANCIAL INSTRUMENTS.
THE ADVISORY ITALIAN COMPANY CHOSEN IS "FORTRADE FINANCING
SPA8 BASED IN MILAN.
-- PROGRAM FOR THE CONSTRUCTION OF INFRASTRUCTURE FOR
MANAGEMENT OF WATER RESOURCES AND FOR THE ENVIRONMENTAL
PROTECTION OF THE RADIKA RIVER IN THE TOWN OF ROSTUSE (USD
5.6 MILLION),IS SCHEDULED TO BE APPROVED BY THE ODA
COMMITTEE IN APRIL. AT THE MOMENT THE PROJECT IN UNDER
REVIEW BY THE UTC AND IN THE MEANTIME THE MACEDONIAN
UNCLASSIFIED

PAGE 03 ROME 00353 11 OF 12 291714Z
COUNTERPART WILL PREPARE THE FORMAL ACCEPTANCE OF THE
DOCUMENT.
-- EMERGENCY PROGRAMS: THROUGH 2001 USD 4.13 MILLION HAVE
BEEN ALLOCATED FOR PROGRAMS IN FAVOR TO POPULATION DAMAGED BY
THE RECENT CIVIL WAR. THESE FUNDS HAVE BEEN USED FOR
INTERVENTION IN THE SOCIAL AND HEALTH AND AGRICULTURAL AREAS
AND THROUGH DIRECT MANAGEMENT BY INTERNATIONAL ORGANIZATION
LIKE UNICEF, OMS, FAO AND UNDP.
IN LINE WITH THE 1999-2001 COMMITMENTS, ITALY ANNOUNCED AN
OVERALL COMMITMENT OF USD 17.2 MILLION EURO FOR THE PERIOD
2002-2004.

--------------
ALBANIA
--------------

48. (U) STARTING FROM 1992, THE ITALIAN ODA TO ALBANIA
REACHED THE OVERALL AMOUNT OF USD 360 MILLION, OF WHICH USD
349 MILLION ALREADY DISBURSED. ITALY IS ALBANIA'S LARGEST
BILATERAL DONATOR AND THE SECOND LARGEST DONATOR AFTER EU.
THE VOLUME OF THE FINANCIAL COMMITMENTS TOWARD ALBANIA
FACILITATED THE CREATION OF A PATH OF STRATEGIC PARTNERSHIP
BETWEEN THE TWO COUNTRIES THAT LED TO THE ALBANIAN
RECOGNITION OF ITALY AS DOOR OF EUROPE8 IN THE PROCESS OF
STABILIZATION AND ASSOCIATION TO EU.

49. (U) THE PRIORITY SECTORS AT THE MOMENT ARE: ELECTRICITY,
ROAD, WATER, HEALTH, AGRICULTURE, ENVIRONMENT,
EDUCATION-TRAINING AND GENERAL GOVERNMENT.
-- ROAD SECTOR: AID CREDIT OF ABOUT USD 27.9 MILLION;
-- ELECTRICITY SECTOR: THE OVERALL COMMITMENT IS OF USD 53.7
UNCLASSIFIED

PAGE 04 ROME 00353 11 OF 12 291714Z
MILLION AS AID CREDIT, OF WHICH USD 41.3 MILLION APPROVED, BY
THE DIRECTION COMMITTEE IN DECEMBER 2001;
-- WATER SECTOR: A USD 31 MILLION AID CREDIT FOR INTERVENTION
IN THE AQUEDUCT OF TIRANA IS UNDER FINANCING;
-- AGRICULTURAL SECTOR: A GIFT OF USD 20.7 MILLION FOR
POLICIES OF SUPPORT OF AGRICULTURAL SECTOR IS UNDER
DISBURSEMENT;
-- HEALTH SECTOR: COMMITMENT OF A GIFT OF USD 3.2 MILLION AND
AN AID CREDIT OF USD 5.16 MILLION;
-- PASARP (&PROGRAM OF ACTIVITIES SUPPORT OF THE ALBANIAN
REFUGEE POPULATION8): ITALY CO-FINANCES IDA WITH USD 12.4
MILLION FOR THIS INITIATIVE, AIMED TO SUPPORT THE HUMAN
DEVELOPMENT AND THE STRAIGHTENING OF INSTITUTIONS AT THE
LOCAL LEVEL.

--------------
PEACEKEEPING AND HUMANATARIAN OPERATIONS
--------------
50. (U) MOD INDICATES THAT 10,386 PERSONNEL ARE CURRENTLY
(EARLY DECEMBER 2002) EMPLOYED IN INTERNATIONAL (NATO AND UN)
PEACEKEEPING AND HUMANITARIAN INITIATIVES, MOSTLY IN THE

UNCLASSIFIED

UNCLASSIFIED PTQ1553

PAGE 01 ROME 00353 12 OF 12 291714Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DAA2F 291714Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7875
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 12 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 12 OF 12 291714Z
BALKANS AND IN MIDDLE EAST. THE GOI FINANCED ITALY,S
PARTICIPATION IN INTERNATIONAL PEACEKEEPING AND HUMANITARIAN
OPERATIONS WITH USD 1.29 BILLION IN FY 2002. IN PARTICULAR,
USD 979 MILLION WERE FOR THE OPERATIONS IN THE BALKANS, WHILE
THE REMAINING USD 307 MILLION WERE FOR ANTI TERRORISM
MEASURES AND OTHER MISCELLANEOUS ITEMS. THE GOI FUNDS THESE
OPERATIONS THROUGH APPROPRIATE PIECES OF LEGISLATION.

--------------
PEACEKEEPING OPERATIONS
--------------
51. (U) -- KFOR SUPPORT: TOTAL OF 4350 PERSONNEL DEPLOYED;
1000 AIR FORCE PERSONNEL (ALBANIAN AIR ACADEMY AND
RESTRUCTURE OF PORO AIRPORT,) 780 PERSONNEL (NATO/TIRANA),
210 NAVAL PERSONNEL FOR IMMIGRATION ACTIVITIES, AND 29
MILITARY ADVISORS TO SUPPORT ALBANIA OPERATIONS IN ADDITION
TO 270 PERSONNEL (PRIMARILY CARABINIERI) FOR MULTINATIONAL
SPECIALIZED UNITS. FROM OCT 4, 2002 UNTIL APRIL 2003, KFOR 7
WILL BE UNDER THE COMMAND OF AN ITALIAN GENERAL.
-- SFOR SUPPORT: ITALY MAINTAINS APPROXIMATELY 1221 SOLDIERS
IN BOSNIA IN SUPPORT OF OPERATION JOINT FORGE. APPROXIMATELY
800 OF THESE SOLDIERS ARE PART OF THE IT-GE BRIGADE.
-- ALBANIA (NATO HEADQUARTERS-TIRANA): ITALY HAS
APPROXIMATELY 1146 SOLDIERS DEPLOYED IN ALBANIA SUPPORTING
OPERATION JOINT GUARDIAN. ITALY ALSO PROVIDES BILATERAL
MILITARY ASSISTANCE, APART FROM THE NATO MISSION, INCLUDING
21 MILITARY ADVISORS AND 240 NAVAL PERSONNEL FOR IMMIGRATION
ACTIVITIES. AS PART OF THE EU'S MAPE PROGRAM, ITALY PROVIDES
11 CARABINIERI.
-- NATO SUPPORT: 200 PERSONNEL NATO/SKOPJIE TO SUPPORT
OPERATION AMBER FOX, 430 PERSONNEL FOR UN INTERNATIONAL
UNCLASSIFIED

PAGE 03 ROME 00353 12 OF 12 291714Z
SECURITY ASSISTANCE FORCE JAN 02, AND 314 PERSONNEL FOR
VARIOUS MISSIONS: UNTSO, UNIFIL, UNMEE, MINURSO, UNIKOM,
UNMIK, AND UNMOGIP.

--------------
OTHER MULTILATERAL MISSIONS
--------------
52. (U) -- MULTINATIONAL FORCE AND OBSERVERS (MFO): ITALY
CONTRIBUTES 81 PERSONNEL AND THREE NAVAL VESSELS TO THIS
MISSION.
-- EUROPEAN COMMUNITY MONITORING MISSION (ECMM): ITALY
CONTRIBUTES APPROXIMATELY 15 OBSERVERS TO THE EUROPEAN
COMMUNITY OBSERVATION MISSION IN THE FORMER REPUBLIC OF
YUGOSLAVIA (FRY).
-- RACVIAC CROATIA (UN): 2 PERSONNEL.
-- MIATM MALTA (IT): 30 PERSONNEL.
-- MINURSO SAHARA OCC (UN): 5 PERSONNEL.
-- UNIFIL LEBANON (UN): 50 PERSONNEL.
-- MONUC CONGO (UN): 3 PERSONNEL.
-- TIPH II ISRAEL (EU): 1 PERSON.
-- UNMEE ETHIOPIA-ERITREA (UN): 10 PERSONNEL.
-- UNMOGIP INDIA-PAKISTAN (UN): 7 PERSONNEL.
-- UNTSO SINAI-ISRAEL-LEBANON-EGYPT (UN): 7 PERSONNEL.
-- UNIKOM IRAQ-KUWAIT (UN): 5 PERSONNEL.
SKODON

UNCLASSIFIED

>
@@@OASYS@@@

UNCLASSIFIED PTQ1538

PAGE 01 ROME 00353 01 OF 12 291710Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA98B 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7864
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 01 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 01 OF 12 291710Z
REF: A. 02SECSTATE 219916
B. 02ROME 06091

1. (U) THE FOLLOWING IS THE UNCLASSIFIED VERSION OF EMBASSY
ROME'S BURDENSHARING REPORT (REF B.) PLEASE NOTE THE CHANGE
IN THE ESTIMATE ON FOREGONE RENT IN PARAGRAPH 37. EMBASSY
ROME'S POC FOR THE BURDENSHARING REPORT IS POL OFFICER RAFIK
MANSOUR. HE CAN BE REACHED AT (39) 06.4674.2831 OR AT
MANSOURRK@STATE.GOV. PLEASE NOTE THAT THIS REPORT USES THE
DEC 4 OFFICIAL RATE OF EXCHANGE: EURO1 = $1.0008, ROUNDED OFF
TO EURO1 = $1.

2. (U) BEGIN TEXT.

--------------
POLITICAL SITUATION
--------------

3. (U) DOMESTIC: PM BERLUSCONI AND HIS CENTER-RIGHT
COALITION REMAIN IN FIRM CONTROL OF THE PARLIAMENT. DESPITE
CONTINUED CRITICISM FROM THE CENTER-LEFT OPPOSITION,
THIS COALITION IS LIKELY TO ENDURE THROUGH ITS FULL TERM INTO
THE
SPRING OF 2006 (THE FIRST POST-WAR ITALIAN GOVERNMENT TO DO
SO). ITS MAJORITY IN PARLIAMENT IS SUFFICIENT TO ENSURE THAT
IT CAN WIN VOTES NOT ONLY ON CONTROVERSIAL DOMESTIC ISSUES,
BUT ALSO ON FOREIGN POLICY ISSUES OF CONCERN TO THE US, SUCH
AS THE DEPLOYMENT OF ITALIAN LAND FORCES TO AFGHANISTAN.
THE PRIME MINISTER REMAINS PUBLICLY SUPPORTIVE OF U.S.
POLICY, MOST NOTABLY IN HIS STATEMENTS CONCERNING POTENTIAL
MILITARY ACTION IN IRAQ.
UNCLASSIFIED

PAGE 03 ROME 00353 01 OF 12 291710Z

4. (U) THE EU: GOI PREPARATIONS FOR ITS EU PRESIDENCY,
FROM JULY THROUGH DECEMBER 2003, BEGAN TO DOMINATE ITALY'S
FOREIGN POLICY PRIORITIES TOWARDS EUROPE WHEN THE GOVERNMENT
RETURNED TO WORK IN SEPTEMBER. ITALY IS PLAYING AN ACTIVE
ROLE IN THE EUROPEAN UNION'S ONGOING CONVENTION. WHETHER THE
PRODUCT OF THIS PROCESS IS A "CONSTITUTION" AS SOME IN THE EU
HAVE CALLED FOR, OR A LESS AMBITIOUS TREATY BASED DOCUMENT,
THE GOI AGREES WITH ALMOST ALL ITS EU PARTNERS THAT IT MUST
ADDRESS STRUCTURAL CHANGES TO THE EU'S INSTITUTIONS THAT WILL
MAKE IT MORE DEMOCRATIC AND EFFICIENT, ESPECIALLY IN LIGHT OF
ENLARGEMENT. THE ITALIANS ARE HOPING TO HAVE THE CONCLUDING
SESSION OF AN INTER-GOVERNMENTAL CONFERENCE, PRESIDED OVER BY
HEADS-OF-STATE, ADOPT THE FINAL DOCUMENT BY THE END OF ITS
PRESIDENCY. ITALY IS A STRONG PROMOTER OF ESDP. NOW THAT
BERLIN PLUS (NATO/ESDP COORDINATION) ARRANGEMENTS HAVE BEEN
AGREED BETWEEN NATO AND THE EU, ITALY CAN BE EXPECTED TO BE A
MAJOR CONTRIBUTOR TO THE FIRST EU PEACEKEEPING MISSIONS IN
MACEDONIA AND (POTENTIALLY) BOSNIA.

5. (U) NATO-RUSSIA: ITALY IS A STRONG SUPPORTER OF
IMPROVED NATO-RUSSIA TIES. PM BERLUSCONI WAS THE MAIN DRIVER
BEHIND THE MAY 27-28 NATO-RUSSIA ROME SUMMIT WHICH
ESTABLISHED THE NATO-RUSSIA COUNCIL. HE IS AN ACTIVE
BOOSTER OF RUSSIA'S RAPPROCHEMENT WITH THE WEST. ITALY PLAYS
AN ACTIVE ROLE --
IN PARTNERSHIP WITH THE US AND OTHER KEY ALLIES -- IN
SUPPORTING FINANCIALLY THE DESTRUCTION OF RUSSIAN CW, AND IS
WEIGHING PROVISION OF SIMILAR SUPPORT FOR THE DECOMMISSIONING
OF RUSSIAN NUCLEAR SUBMARINES.

UNCLASSIFIED

PAGE 04 ROME 00353 01 OF 12 291710Z
6. (U) "IN TOGETHER, OUT TOGETHER" ARE WELCOME WORDS TO OUR
GOI INTERLOCUTORS AT ALL
LEVELS. EUROPE, INCLUDING ITALY, IS TAKING MORE
RESPONSIBILITY FOR ITS OWN BACKYARD BY TAKING OVER POLICING
FUNCTIONS IN BOSNIA POST IPTF. AS NOTED ABOVE, ITALY WILL BE
A KEY CONTRIBUTOR TO THE FOLLOW-ON MISSION TO NATO'S TASK
FORCE FOX. THE GOI CONTINUES TO PARTICIPATE IN SFOR AND KFOR
(INCLUDING ANOTHER KFOR COMMAND STARTING OCTOBER 2002.)
ITALY IS ALBANIA'S "BIGGEST BOOSTER," LARGEST BILATERAL
DONOR, INVESTOR, PROVIDER OF LAW ENFORCEMENT ASSISTANCE, AND
GENERAL BIG BROTHER. THIS ENGAGEMENT HELPS PROVIDE A
RELATIVELY STABLE ANCHOR IN A VOLATILE REGION.

7. (U) ITALY'S PARTICIPATION IN PFP: ITALY IS A STRONG
SUPPORTER OF THE PFP PROGRAM, WITH PARTICULAR EMPHASIS ON
IMPROVING THE CAPABILITIES AND QUALITY OF PFP COUNTRIES IN SE
EUROPE. ITALY HAS CLOSE AND EXTENSIVE TIES WITH ALBANIA,
CROATIA, ROMANIA, BULGARIA, FYROM, SLOVENIA AND SLOVAKIA AND
REGULARLY CONDUCTS BILATERAL MILITARY TALKS. DURING THE
CURRENT ROUND OF NATO ENLARGEMENT, ITALY SOUGHT TO HAVE
ROMANIA AND BULGARIA INCLUDED AND WORKED WITH ALL OF THE SE

UNCLASSIFIED

UNCLASSIFIED PTQ1540

PAGE 01 ROME 00353 02 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA99E 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7865
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 02 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 02 OF 12 291711Z
EUROPEAN CANDIDATE COUNTRIES ON ECONOMIC, POLITICAL AND
MILITARY REFORMS TO RAISE THEIR CAPABILITIES IN ORDER TO
QUALIFY FOR MEMBERSHIP.

8. (U) THE GOI HAS SPONSORED MILITARY EXCHANGES ON ISSUES
SUCH AS INTELLIGENCE SHARING, COMMUNICATIONS AND LOGISTICS
PLANNING, PORT VISITS AND EXERCISES, TRAINING SEMINARS, AND
CONSULTATIONS WITH PFP COUNTRIES AND HAS PROMOTED COOPERATION
ON DEFENSE ACQUISITION. ITALY HAS ALSO INVESTIGATED TRAINING
OPPORTUNITIES BETWEEN THE ITALIAN CARABINIERI AND MILITARY
POLICE UNITS IN LATVIA, ESTONIA, ROMANIA AND BULGARIA, AND
BETWEEN ITALIAN ALPINI TROOPS AND MOUNTAIN UNITS FROM
MACEDONIA, SLOVENIA, AND ROMANIA. ITALIAN DIVERS AND
PARACHUTISTS HAVE TRAINED WITH BULGARIAN AND ROMANIAN UNITS
AS WELL.

9. (U) NATO MED DIALOGUE: ITALY IS ALSO DEDICATED TO
BREATHING LIFE INTO NATO'S MEDITERRANEAN DIALOGUE. PM
BERLUSCONI HAS INDICATED THAT STRENGTHENING THE DIALOGUE WILL
BE A GOI PRIORITY DURING ITALY'S EU PRESIDENCY IN 2003.

10. (U) NATO ENLARGEMENT: ALL THROUGHOUT 2002, ITALY HAS BEEN
IN FAVOR OF A ROBUST NATO ENLARGEMENT, PARTICULARLY AFTER
RUSSIAN CONCERNS ABOUT ENLARGEMENT WERE ADDRESSED. THE
ITALIANS FAVORED A "BALANCED ENLARGEMENT" OF NATO, ONE THAT
WOULD INCLUDE ROMANIA AND BULGARIA. ON DECEMBER 11, IN THE
PLENARY SESSION OF THE SOUTHEAST EUROPEAN DEFENSE MINISTERS,
MINISTER MARTINO EMPHASIZED THE IMPORTANCE OF ALBANIA,
CROATIA, AND MACEDONIA SEIZING THE OPPORTUNITY OF FUTURE NATO
MEMBERSHIP TO ACCELERATE THEIR DEFENSE REFORMS AND REGIONAL
COOPERATION AND PLEDGED DIRECT ITALIAN ASSISTANCE FOR THEIR
UNCLASSIFIED

PAGE 03 ROME 00353 02 OF 12 291711Z
EFFORTS.

11. (U) OEF: ITALY WAS ONE OF THE FIRST ALLIES TO OFFER
MILITARY ASSETS FOR OPERATION ENDURING FREEDOM. THE GOI
OFFERED A SUBSTANTIAL PACKAGE CONSISTING OF HER SOLE AIRCRAFT
CARRIER, 8 HARRIER AIRCRAFT, EIGHT HELICOPTERS, TWO FRIGATES,
A SUPPLY SHIP, 8 TORNADO AIRCRAFT, AN NBC UNIT, SIX EOD
TEAMS, ONE ENGINEER UNIT, AND AN ARMOURED REGIMENT WITH
EQUIPMENT. NOT ALL ASSETS WERE CALLED UPON, HOWEVER THE
AIRCRAFT CARRIER AND FRIGATES WERE AMONG THOSE THAT OPERATED
IN THEATER FOR SEVERAL MONTHS. ITALY'S PARLIAMENT VOTED
OVERWHELMINGLY IN NOVEMBER 2001 TO APPROVE ITALIAN
CONTRIBUTIONS TO OEF, AND AGAIN IN OCTOBER 2002 WHEN
ADDITIONAL ASSETS WERE MADE AVAILABLE. THE GOI HAS ALSO
OFFERED TO BACKFILL US TROOPS SERVING WITH NATO MISSIONS IN
THE BALKANS AS ANOTHER MEANS OF SUPPORTING OEF.

12. (U) THE GOI RECENTLY AGREED TO OUR REQUEST TO DEPLOY A
LIGHT INFANTRY BATTALION (APPROXIMATELY 1000 SOLDIERS) TO
SERVE AS A MANEUVER FORCE IN AFGHANISTAN BEGINNING IN MARCH,
2003. AT THAT POINT, ITALY WILL BE SECOND ONLY TO THE US IN
GROUND FORCES AND TOTAL FORCES COMMITTED TO OEF. IN
ADDITION, TWO ITALIAN C-130J AIRCRAFT BEGAN OPERATING OUT OF
MANAS AIR BASE IN OCTOBER.

--------------
ECONOMIC SITUATION
--------------

13. (U) ITALY HAS THE WORLD'S SIXTH LARGEST ECONOMY WITH A
GDP OF ABOUT USD 1.3 TRILLION IN 2002. ITS GDP GROWTH, AN
UNCLASSIFIED

PAGE 04 ROME 00353 02 OF 12 291711Z
ESTIMATED 0.3 PERCENT IN 2002 AND 1.5 PERCENT IN 2003, WAS
SLIGHTLY BELOW THE AVERAGE OF THE 12 MEMBER STATES OF THE
EUROPEAN ECONOMIC AND MONETARY UNIONS (EMU).

14. (U) THE GOI PRESENTED ITS 2003 BUDGET TO PARLIAMENT ON
OCTOBER 2. REVISIONS ARE EXPECTED BEFORE PARLIAMENT APPROVES
THE BUDGET IN LATE DECEMBER. THE 2003 BUDGET TOTALS USD
639.7 BILLION (OR 49.0 PERCENT OF GDP),WITH A DEFICIT OF USD
19.6 BILLION (OR 1.5 PERCENT OF GDP.) A PACKAGE OF USD 20
BILLION (OR 1.5 PERCENT OF GDP) IN SPENDING CUTS IS PARTLY
OFFSET BY A STIMULUS PACKAGE OF USD 7.5 BILLION (OR 0.4
PERCENT OF GDP) IN TAX CUTS AND INVESTMENTS IN
INFRASTRUCTURE. DEFENSE MINISTRY SPENDING CUTS WILL NOT
REQUIRE CUTS IN SPENDING ON PURCHASES OF U.S. EQUIPMENT,
ACCORDING TO DEPUTY FINANCE MINISTER BALDASSARRI AND FINANCE
UNDER SECRETARY TANZI.

15. (SBU) THE GOI HAD HOPED TO HAVE SERIOUS ECONOMIC REFORMS
IN PLACE BY NOW. FINANCE MINISTER TREMONTI'S PROGRAM CALLED
FOR IMPLEMENTATION OF MAJOR TAX REFORM IN 2002 AND PENSION
REFORM SOON AFTERWARD. THE CONTINUED GLOBAL DOWNTURN,

UNCLASSIFIED

UNCLASSIFIED PTQ1541

PAGE 01 ROME 00353 03 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9A1 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7866
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 03 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 03 OF 12 291711Z
COMBINED WITH CONCERN THAT POSSIBLE ACTION IN IRAQ COULD DRAG
THE WORLD ECONOMY DOWN EVEN FURTHER, HAS COMPLICATED MATTERS.
TAX REVENUES ARE DOWN SUBSTANTIALLY, WHILE THE GOI HAS FOUND
IT VIRTUALLY IMPOSSIBLE TO CUT SPENDING.

16. (SBU) THE 2003 BUDGET IS THEREFORE A DIFFICULT
COMPROMISE. FINANCE MINISTER TREMONTI IS SEEKING TO COMBINE
FISCAL STIMULUS (TO AVOID A FURTHER SERIOUS DOWNTURN) WITH
SMALL CUTS IN CENTRAL GOVERNMENT SPENDING AND POLITICALLY
DIFFICULT CAPS ON REGIONAL AND MUNICIPAL SPENDING. THE FACT
THAT THIS BUDGET PLEASES ALMOST NO ONE MAY BE THE BEST
ARGUMENT THAT THE PAIN IS FAIRLY DISTRIBUTED.

--------------
DEFENSE POLICY/DEFENSE SPENDING
--------------

17. (U) FIGURES REGARDING THE PROPOSED ITALIAN DEFENSE BUDGET
HAVE BEEN PUBLISHED IN THE OFFICIAL DOCUMENTS TRANSMITTED BY
GOI TO THE PARLIAMENT ON OCTOBER 2. THE TOTAL MOD FUNDING
REQUEST FOR FY 2003 IS USD 19.61 BILLION, UP 3.1 PERCENT (OR
USD 590 MILLION) FROM THE MOD REQUEST FOR FY 2002. IN OTHER
TERMS, 2003 MOD APPROPRIATIONS AMOUNT TO 1.5% OF THE GDP,
COMPARED TO 1.52% OF 2002. THE DRAFT 2003 MOD BUDGET
PROVIDES A 3.1 PERCENT INCREASE, BUT ASSUMING A 1.9 PERCENT
INFLATION RATE IN 2003, THIS FIGURE REPRESENTS A MODEST
INCREASE IN REAL TERMS OVER 2002.

TABLE 1
SUMMARY OF MOD BUDGET: 2002-2003
UNCLASSIFIED

PAGE 03 ROME 00353 03 OF 12 291711Z
(IN BILLIONS OF USD)

FY 2002 FY 2003
%CHG CHG VALUE

1. NATIONAL DEFENSE 13.666 14.027
2.6 362
(AS % OF GDP) (1.09%) (1.07%)

2. DOMESTIC SECURITY
(CARABINIERI) 4.264 4.565 7.1
301
(AS % OF GDP) (0.34%) (0.35%)

3. OTHER 1.097 1.023 -6.7
-74
(AS % OF GDP) (0.1%) (0.35%)

4. TOTAL MOD
APPROPRIATIONS 19.025 19.615
3.1 590
(AS % OF GDP) (1.52%) (1.50%)
(AS % OF GOV BUDGET) (3.02%) (3.07%)

ADDENDUM:
GDP (1) 1,253 1,305 4.1
52
GOV BUDGET 630.062 639.706
UNCLASSIFIED

PAGE 04 ROME 00353 03 OF 12 291711Z
EXCHANGE RATE 1.00 1.00
SOURCE: GOVERNMENT'S 2003 BUDGET PROPOSAL (SEPTEMBER 2002).

18. (U) DEFENSE FUNCTION INCLUDES THE BUDGETS OF THE ARMY,
NAVY AND AIR FORCE AND EXCLUDES DOMESTIC SECURITY
(CARABINIERI) AND OTHER NON-ESSENTIAL MOD FUNCTIONS. THE
DEFENSE FUNCTION BUDGET FOR 2003 IS USD 14.03 BILLION, UP
2.6% OR USD 362 MILLION FROM 2002 AND IS MOSTLY DESIGNED TO
ASSURE THE CONTINUATION OF THE STRUCTURAL REFORM OF ARMED
FORCES (PERSONNEL AND OPERATIVE SPENDING) AND DEFENSE
MODERNIZATION PROJECTS (INVESTMENTS.) THE OPTIMAL
DISTRIBUTION OF DEFENSE FUNCTION SPENDING IS 70 PERCENT FOR
THE FUNCTIONING OF DEFENSE AND 30 PERCENT FOR DEFENSE
MODERNIZATION. THE 2003 BUDGET DEVOTES 76.1 PERCENT OF
OVERALL DEFENSE FUNCTION SPENDING FOR DEFENSE OPERATIONS
(74.4 PERCENT IN 2002 BUDGET) AND ONLY 23.9 PERCENT FOR
INVESTMENTS (25.6 PERCENT IN THE 2002 BUDGET.)

19. (U) AIR FORCE INVESTMENTS (USD 1,256 MILLION) ACCOUNT FOR
ALMOST FORTY PERCENT OF OVERALL ALLOTMENTS. THESE FUNDS ARE

UNCLASSIFIED

UNCLASSIFIED PTQ1543

PAGE 01 ROME 00353 04 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9B1 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7867
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 04 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 04 OF 12 291711Z
RELATED TO THE DEVELOPMENT OF THE EUROFIGHTER (THE OVERALL
COMMITMENT UP TO 2015 IS USD 18.1 BILLION, WHILE THE
COMMITMENT FOR 2003 IS USD 564 MILLION,) THE CONTINUATION OF
THE LEASING CONTACT OF THE TORNADO (THE OVERALL COMMITMENT UP
TO 2015 IS USD 1.2 BILLION, WHILE THE COMMITMENT FOR 2003 IS
USD 181.2 MILLION) AND FOR THE PURCHASE OF TRANSPORT
AIRCRAFT.

20. (U) NAVY INVESTMENTS (USD 860 MILLION) ACCOUNT FOR ABOUT
26 PERCENT OF OVERALL INVESTMENTS. THESE FUNDS ARE DEVOTED
TO:
-- THE PURCHASE OF TWO ESCORT FRIGATES OF THE CLASS ORIZZONTE
(THE OVERALL COMMITMENT UP TO 2009 IS USD 1.5 BILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 155 MILLION.)
-- THE CONSTRUCTION OF THE NEW AIRCRAFT CARRIER ANDREA DORIA
(THE OVERALL COMMITMENT UP TO 2008 IS USD 1.4 BILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 92 MILLION.)
-- THE INTERNATIONAL COOPERATION FOR MISSILE SYSTEMS
PAAMS-SAAM (THE OVERALL COMMITMENT UP TO 2014 IS USD 795
MILLION, WHILE THE COMMITMENT FOR 2003 IS USD 89 MILLION.)
-- THE ACQUISITION OF TWO NEW GENERATION SUBMARINES U212A
(THE OVERALL COMMITMENT UP TO 2007 IS USD 904 MILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 129 MILLION.)

21. (U) ARMY INVESTMENTS (USD 832 MILLION) REPRESENT ANOTHER
25 PERCENT OF OVERALL ALLOTMENTS. THESE FUNDS ARE DEVOTED TO:
-- THE PROGRAM VCC DARDO COMBAT (THE OVERALL COMMITMENT UP TO
2004 IS USD 550 MILLION, WHILE THE COMMITMENT FOR 2003 IS USD
123.9 MILLION.)
-- THE INDUSTRIALIZATION AND PRODUCTION OF 16 HELICOPTERS
NH-90 (THE OVERALL COMMITMENT UP TO 2018 IS USD 3.35 BILLION,
UNCLASSIFIED

PAGE 03 ROME 00353 04 OF 12 291711Z
WHILE THE COMMITMENT FOR 2003 IS USD 120.8 MILLION.)
-- THE REMAINING USD 408 MILLION (12 PERCENT OF TOTAL) WILL
FINANCE INTERFORCE PROJECTS LIKE THE DEVELOPMENT OF THE JOINT
STRIKE FIGHTER (THE OVERALL COMMITMENT UP TO 2012 IS USD 1.19
BILLION, WHILE THE COMMITMENT FOR 2003 IS USD 107.3 MILLION.)

TABLE 2
SUMMARY OF NATIONAL DEFENSE BUDGET: 2002-2003
(IN BILLIONS OF USD)

FY 2002 FY 2003 %
CHG CHG VALUE

1. PERSONNEL 6.578 7.023 6.8
445
(AS % OF GDP) (0.52%) (0.54%)

2. OPERATIONS 3.589 3.647 1.6
58
(AS % OF GDP) (0.29%) (0.28%)

3. INVESTMENTS 3.499 3.357 -4.1
-142
(AS % OF GDP) (0.28%) (0.26%)

4. TOTAL NATIONAL
DEFENSE
APPROPRIATIONS 13.666 14.027
2.6 341
UNCLASSIFIED

PAGE 04 ROME 00353 04 OF 12 291711Z
(AS % OF GDP) (1.09%) (1.07%)
(AS % OF GOV
BUDGET) (2.17%) (2.19%)

ADDENDUM:
GDP 1,253 1,305 4.1
52
GOV BUDGET 630.062 639.706
EXCHANGE RATE 1.00 1.00

SOURCE: GOVERNMENT'S 2002 BUDGET PROPOSAL (SEPTEMBER 2002).
THE 2002 DATA IS THE REVISED 2002 BUDGET.

--------------
AFGHANISTAN: OEF AND ISAF
--------------
22. (U) ON JAN 15, 2002 ITALY DEPLOYED A TASK FORCE COMPRISED
OF 450 SOLDIERS TO THE INTERNATIONAL SECURITY ASSISTANCE
FORCE (ISAF). THIS FORCE PROVIDED ISAF SITE SECURITY IN THE
KABUL AREA. ITALY IS PROVIDING THREE C-130 (TWO OPERATING
FROM ABU DHABI) AND LEASING ONE B-707, ONE AN-124, AND ONE

UNCLASSIFIED

UNCLASSIFIED PTQ1545

PAGE 01 ROME 00353 05 OF 12 291712Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9C0 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7868
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 05 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 05 OF 12 291712Z
IL-76 IN SUPPORT OF ISAF. ITALY PROVIDED ITS ONLY CARRIER
BATTLE GROUP TO SUPPORT COMBAT OPERATIONS IN THE NORTH
ARABIAN SEA. IT DEPLOYED MORE THAN 13 PERCENT OF ITS ENTIRE
NAVAL FORCE FOR USE IN OEF. THE "DE LA PENNE" GROUP (ONE
DESTROYER AND ONE FRIGATE) RELIEVED THE CARRIER BATTLE GROUP
ON MARCH 15, 2002. THE ITALIAN FRIGATE "EURO" TRANSITED THE
SUEZ CANAL ON MAY 8, 2002 TO RELIEVE BOTH COMBATANTS ON
STATION. CURRENTLY THE "EURO" IS STATIONED IN THE GULF OF
OMAN WITH THE CANADIAN TG 50.04. IT TOOK PART IN THE CAPTURE
OF TWO ALLEGED AL QAEDA ELEMENTS ON JULY 13, 2002 (THE FIRST
EPISODE OF EFFECTIVE LIO IN OEF.) ITALY MOVED MORE THAN
17,000 LBS. (27 CUBIC METERS) OF SUPPLIES AND EQUIPMENT FROM
BRINDISI TO ISLAMABAD, PAKISTAN ON MARCH 19, 2002.
SUPPLIES/EQUIPMENT INCLUDED A FORKLIFT AND EQUIPMENT FROM THE
WORLD FOOD PROGRAM (WFP). ON APRIL 18, 2002, ITALIAN AIR
FORCE AIRCRAFT AND A SECURITY FORCE FROM THE CARABINIERI
TRANSPORTED FORMER AFGHANISTAN KING MOHAMMED ZAHIR SHAH AND
AIA LEADER HAMID KARZAI FROM ROME TO KABUL WITHOUT INCIDENT.

23. (U) ITALY HAS ALREADY SENT 2,700 TROOPS IN SUPPORT OF
OEF, IN DEPLOYMENTS THAT ARE NOW COMPLETED. THE GOI IS NOW
PREPARING FOR THE DEPLOYMENT OF A 1,000 MAN ALPINI TASK FORCE
INTO AFGHANISTAN IN MARCH 2003. ITALY ALSO HAS 15 PERSONNEL
DEPLOYED IN SUPPORT OF OPERATION ENDURING FREEDOM IN THE
COALITION COORDINATION CENTER (CCC) OF USCENTCOM AT MACDILL
AFB, TAMPA, FL.

24. (U) ITALY'S COMMITMENTS TO OEF AND ISAF HAVE COST IT USD
170 MILLION AND USD 80 MILLION, RESPECTIVELY. ADDITIONALLY,
ITALY HAS BEEN ACTIVE IN THE FINANCIAL WAR ON TERRORISM,
FREEZING ACCOUNTS OF INDIVIDUALS AND ENTITIES CONNECTED TO
UNCLASSIFIED

PAGE 03 ROME 00353 05 OF 12 291712Z
TERRORIST ACTIVITY. IN OCTOBER, ITALY BECAME ONLY THE SECOND
COUNTRY WHICH JOINED THE U.S. IN JOINTLY DESIGNATING ENTITIES
FOR ASSET FREEZE.

25.(U) ITALY VOLUNTEERED TO SERVE AS THE LEAD NATION IN
COORDINATING INTERNATIONAL EFFORTS TO ASSIST IN THE REFORM OF
AFGHANISTAN'S JUDICIAL SECTOR, ONE OF FIVE AREAS OF REFORM
CONTRIBUTING TO AFGHANISTAN'S LONG-TERM SECURITY. IN THIS
CAPACITY, THE GOI HAS SPONSORED A NUMBER OF MEETINGS AND
HOSTED A MAJOR INTERNATIONAL DONOR CONFERENCE DECEMBER 19-20,
AS WELL AS A SEMINAR FOR AFGHAN JURISTS DECEMBER 16-17. GOI
STAFF AT ITS KABUL EMBASSY INCREASED TO ENABLE IT TO FULFILL
THIS ROLE, AS DID THE ALLOCATION OF PERSONNEL TO THE MFA'S
AFGHANISTAN DESK. ITALIAN ASSISTANCE TO AFGHANISTAN REACHED
47.5 MILLION EURO AS OF LATE NOVEMBER.

--------------
MILITARY REFORM
--------------

26. (U) ITALY CONTINUES TO EXECUTE ITS PLAN TO ESTABLISH A
PROFESSIONAL, ALL-VOLUNTEER FORCE. THE GOI'S CURRENT TARGET
IS A FULLY PROFESSIONAL FORCE OF 190,000 (APPROXIMATELY TEN
PERCENT OF WHICH WILL BE WOMEN) BY THE END OF 2005. DEFENSE
MINISTER MARTINO HOPES TO HAVE THE PROFESSIONAL FORCE IN
PLACE BY 2004 AS A COST-SAVING MEASURE. LEGISLATION TO THAT
EFFECT WAS INTRODUCED IN THE ITALIAN PARLIAMENT IN MID-2002.

27. (U) ARMY: THE ITALIAN ARMY, WHICH CONSISTED OF
APPROXIMATELY 120,000 PERSONNEL IN 2002, IS UNDERGOING
SIGNIFICANT CHANGE AS IT STRIVES TO COMPLETE ITS TRANSITION
UNCLASSIFIED

PAGE 04 ROME 00353 05 OF 12 291712Z
TO A SMALLER, MORE DEPLOYABLE, AND COMPLETELY PROFESSIONAL
FORCE. APPROXIMATELY 60,000 CONSCRIPTS REMAIN IN SERVICE AS
THE ARMY DOWNSIZES TO 112,000 VOLUNTEERS BY THE END OF 2005.
WHILE 13 BRIGADES ARE STILL LISTED AS COMPRISING THE BULK OF
FORCES, ONLY TEN BRIGADES WILL BE AVAILABLE IN THE FINAL
STRUCTURE FOR CRISIS REACTION OR HOMELAND DEFENSE MISSIONS.
THESE BRIGADES ARE EMPLOYED MUCH LIKE THE US ARMY'S
DIVISIONS. THEY ARE ALL ASSIGNED NATO MISSIONS AND MANY
COULD ALSO BE USED BY THE EU. A LITTLE OVER 6,500 ARMY
PERSONNEL ARE DEPLOYED OVERSEAS, MOSTLY IN THE BALKANS, AND
AFGHANISTAN. MAJOR ISSUES ARE: THE EXPANDING NUMBER OF
PEACEKEEPING AND OTHER TYPES OF MULTINATIONAL OPERATIONS, THE
COMPLETE INTEGRATION OF WOMEN INTO MOST OF THE UNITS, AND
ASSURING SUFFICIENT PERSONNEL ARE RECRUITED IN THE COMING
YEARS. IF THE CURRENT PACE OF RECRUITMENT CONTINUES, THE
ARMY MAY BE SHORT 15,000 PERSONNEL IN 2006. THIS SHORTFALL
DOES NOT APPEAR TO UPSET THE CURRENT LEADERSHIP, AS IT WILL
ALLOW FOR A MORE GRADUAL INCREASE IN PROFESSIONAL SOLDIERS.
MEANWHILE, THE ITALIAN ARMY IS MOVING FORWARD IN IMPROVING
ITS CAPABILITIES. ITS NEWLY CREATED MULTINATIONAL CORPS
LEVEL HIGH READINESS FORCE (LAND) HEADQUARTERS WAS OFFERED TO

UNCLASSIFIED

UNCLASSIFIED PTQ1546

PAGE 01 ROME 00353 06 OF 12 291712Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9DC 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7869
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 06 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 06 OF 12 291712Z
NATO AS AN ALLIED RAPID DEPLOYABLE CORPS AND UNDERWENT FULL
OPERATIONAL CAPABILITY TESTING WITH A MAJOR EXERCISE IN
DECEMBER 2002. THE ITALIAN ARMY ALSO CONTINUES TO ACQUIRE
MODERN WEAPONS AND COMBAT VEHICLES SUCH AS THE ARIETE TANK
AND THE DARDO ARMORED PERSONNEL CARRIER.

28. (U) NAVY: THE ITALIAN NAVY IS COMPRISED OF 34,000 MEN
AND WOMEN. THE MAIN COMPONENTS OF THE ITALIAN FLEET INCLUDE
ONE AIRCRAFT CARRIER (HELICOPTERS AND AV-8B SEA HARRIERS),
THREE AMPHIBIOUS SHIPS, APPROXIMATELY 25 FRIGATES/DESTROYERS,
EIGHT DIESEL SUBMARINES, 10 PATROL BOATS, AND 10
MINESWEEPERS. CONSTRUCTION HAS BEGUN ON A LARGE AMPHIBIOUS
SHIP,8 WHICH WILL BE CAPABLE OF ACTING AS A TROOP TRANSPORT
AND ALSO HAVE THE ABILITY TO OPERATE HELICOPTERS AND AV-8B
SEA HARRIERS, AND, EVENTUALLY, V/STOL JSFS. A TYPE 212
SUBMARINE CONSTRUCTION PROGRAM WILL
WILL REPLACE OLDER SUBMARINES. THE ITALIAN NAVY ALSO WANTS
TO ENHANCE ITS AMPHIBIOUS CAPABILITY TO PROJECT POWER BY
REFITTING ITS TWO LPDS, PROCURING NEW HELICOPTERS AND
ENLARGING ITS SAN MARCO NAVAL INFANTRY GROUP. IN 2002, THE
ITALIANS CONTINUED CO-PRODUCTION, WITH THE FRENCH, OF THE
HORIZON FRIGATE, A PROGRAM DESIGNED TO REPLACE SEVERAL OLDER
FRIGATES. THE ITALIANS HAVE A BILATERAL AMPHIBIOUS AGREEMENT
WITH THE SPANISH NAVY, WHICH HAS LED TO THE CREATION OF A
JOINT ITALIAN-SPANISH AMPHIBIOUS FORCE. THEY ARE ALSO
PROPOSING CREATION OF A NATO NAVAL HIGH READINESS FORCE USING
ITALIAN UNITS AS THE CENTERPIECE.

29. (U) AIR FORCE: THE ITALIAN AIR FORCE PROVIDES
SIGNIFICANT LOGISTICAL INFRASTRUCTURE SUPPORT TO THE US AND
NATO FORCES. HOWEVER, ITS ABILITY TO CONTRIBUTE DIRECTLY IN
UNCLASSIFIED

PAGE 03 ROME 00353 06 OF 12 291712Z
A FORCE-PROJECTION ROLE IS MODEST. THE PRIMARY MILITARY
LIMITATIONS TO OUT OF AREA OPERATIONS OF THE ITALIAN AIR
FORCE ARE: PROHIBITION OF THE USE OF CONSCRIPTS OVERSEAS,
LACK OF STRATEGIC LIFT, AND LACK OF ADEQUATE AIR REFUELING
SUPPORT FOR MORE THAN A HANDFUL OF AIRCRAFT. ADDITIONALLY,
IN THE SURFACE ATTACK ROLE, THERE ARE INSUFFICIENT
INVENTORIES OF PRECISION GUIDED WEAPONS TO SUSTAIN A BOMBING
CAMPAIGN OF MORE THAN A FEW DAYS. HOWEVER, SINCE THE END OF
THE GULF WAR, ITALY HAS MADE DRAMATIC GAINS IN IMPROVING ITS
CONVENTIONAL WAR FIGHTING ABILITY. ITALY HAS INCREASED ITS
PURCHASE OF PRECISION WEAPONS, SIGNED CONTRACTS TO PURCHASE
US-MADE AIR REFUELING AIRCRAFT, LEASED EX-US F-16 FALCONS (34
F-16A/B AIRCRAFT TO ARRIVE IN CY2003 FOR USE IN AUGMENTING
ITS FIGHTER INTERCEPTOR FORCE UNTIL THE EUROFIGHTER TYPHOON
COMES ON LINE,) PURCHASED 24 C-130J AIRCRAFT, MODIFIED SOME
TORNADO AIRCRAFT FOR SUPPRESSION OF ENEMY AIR DEFENSE ROLES
AND INCREASED TRAINING OF TORNADO FLIGHT CREWS IN THE
EMPLOYMENT OF LASER GUIDED MUNITIONS.

30. (U) THE EUROFIGHTER TYPHOON IS THE LARGEST PROCUREMENT
ITEM IN ITALY,S DEFENSE BUDGET. ALTHOUGH IT ENTERS SERVICE
IN 2004, IT WILL NOT REACH FULL OPERATIONAL CAPABILITY UNTIL
2007 OR 2008. UNTIL IT REACHES FULL OPERATIONAL CAPABILITY,
IT WILL NOT GREATLY INCREASE ITALY'S ABILITY TO PROVIDE AIR
SUPREMACY AND DEPLOYABILITY. AS A RESULT, A LARGE PART OF
ITALY,S AIR COMBAT POWER WILL RELY ON OBSOLETE F-104
STARFIGHTER AIRCRAFT (TO BE REPLACED BY THE EUROFIGHTER
TYPHOON) AND THE SURFACE ATTACK
AIRCRAFT, THE JOINT BRAZILIAN-ITALIAN AMX. ITALY WAS THE
SECOND FOREIGN CUSTOMER TO SIGN A CONTRACT TO HELP FUND,
DEVELOP AND MANUFACTURE THE JOINT STRIKE FIGHTER (JSF),AND
UNCLASSIFIED

PAGE 04 ROME 00353 06 OF 12 291712Z
THE SIZE OF ITS PARTICIPATION MAKES IT THE SECOND LARGEST JSF
PARTNER(AFTER THE UK). ITALY PLANS ON TAKING DELIVERY OF ITS
FIRST JSF IN 2012 AND WILL USE THE AIRCRAFT TO REPLACE ITS
AMX AND TORNADO AIRCRAFT IN THE SURFACE ATTACK ROLE AND
REPLACE ITS AV-8B,S ONBOARD THE CARRIER GARIBALDI AND ITS
SUCCESSOR. WITH ITALY,S REPLACEMENT OF THE F-104 BY THE
TYPHOON AND THE REPLACEMENT OF THE AMX WITH THE JOINT STRIKE
FIGHTER, ITS EMPLOYABLE COMBAT POWER WILL SIGNIFICANTLY
INCREASE.

31. (U) CARABINIERI: THE CARABINIERI ARE, TECHNICALLY, THE
FOURTH ELEMENT OF THE ITALIAN ARMED FORCES, AND REPORT TO THE
MINISTER OF DEFENSE. WHILE MOST CARABINIERI RESPONSIBILITIES
ARE FOR DOMESTIC SECURITY AND POLICE, CARABINIERI FORCES PLAY
A LEADING ROLE IN MSU OPERATIONS IN THE BALKANS, AFGHANISTAN,
AND ARE IN MANY RESPECTS THE MODEL FOR INTERNATIONAL FORCES
BRIDGING THE GAP BETWEEN MILITARY PEACEKEEPING AND CIVILIAN
POLICING FUNCTIONS. ADDITIONALLY, PURSUANT TO A
LONG-STANDING AGREEMENT WITH THE US ARMY, ITALY PROVIDES TWO
CARABINIERI COMPANIES ON A FULL-TIME BASIS TO THE US ARMY'S
SOUTHERN EUROPEAN TASK FORCE TO ASSIST IN FORCE PROTECTION

UNCLASSIFIED

UNCLASSIFIED PTQ1547

PAGE 01 ROME 00353 07 OF 12 291713Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9F0 291713Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7870
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 07 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 07 OF 12 291713Z
AND LAW ENFORCEMENT ON BASES USED BY THE US ARMY IN ITALY.

--------------
ITALY'S CONTRIBUTION TO THE COMMON DEFENSE
--------------
HOST NATION SUPPORT:

32. (U) -- ITALY PROVIDES FOR USG USE OF SEVEN PRINCIPAL
MILITARY BASES AND NUMEROUS SMALLER LOCATIONS, ALL ON A
NO-FEE BASIS, A UNIQUELY ADVANTAGEOUS ARRANGEMENT FOR THE US
DEFENSE BUDGET. THESE STRATEGICALLY LOCATED INSTALLATIONS
PERMIT A FORMIDABLE US FORCE CAPABILITY VIA THREE AIRBASES,
ONE STAGING BASE, ONE LARGE AMMUNITION AND EQUIPMENT BASE AND
TWO HOMEPORTS - ONE WITH THE ONLY ATLANTIC REGION
MAINTENANCE/REPAIR TENDER SHIP PRIMARILY FOR NUCLEAR POWERED
SUBMARINES. US FLEET AND SUBMARINE OPERATIONS IN THE
MEDITERRANEAN WOULD BE SERIOUSLY HAMPERED WITHOUT THIS
CAPABILITY.
-- ITALIAN CIVIL AND MILITARY SECURITY FORCES PROVIDE
INVALUABLE ANTI-TERRORIST PROTECTION TO US SHIPS TRANSITING
ITALIAN PORTS AND MILITARY BASES UTILIZED BY USG ALONG WITH
ARMED CARABINIERI SECURITY OF SENIOR US OFFICERS STATIONED OR
TRANSITING ITALY AND OTHER DIGNITARIES, AS NECESSARY.
-- A ROBUST TELECOMMUNICATIONS INFRASTRUCTURE ENHANCES US
MILITARY DATA AND VOICE TRANSMISSION WHILE REDUCING
REQUIREMENTS FOR US MILITARY EQUIPMENT AND PERSONNEL THROUGH
A SUSTAINED AVAILABILITY OF LEASED TELECOMMUNICATIONS
CIRCUITS.
-- HOST NATION ASSURANCES FOR SAFE LINES OF COMMUNICATIONS
(AIRPORTS, SEA PORTS, RAILWAYS, HIGHWAYS, AIR ROUTES)
FACILITATE THE SURGE OF US MILITARY PERSONNEL AND EQUIPMENT
UNCLASSIFIED

PAGE 03 ROME 00353 07 OF 12 291713Z
DURING TIMES OF CRISIS OR CONFLICT THROUGH THREE SHARED
CIVILIAN/MILITARY AIRFIELDS WITH BASING OF US AIRCRAFT.
-- UNPARALLELED AUTHORIZATION OF A US/NATO MUNITIONS STORAGE
FACILITIES ON ITALIAN SOIL PERMITS INVALUABLE SOURCE FOR A
PRE-POSITIONED STAGING MUNITIONS CAPABILITY TO EXERCISES AND
CONTINGENCIES INCLUDING THE WAR ON TERRORISM.
-- CONVENIENT ACCESS TO MILITARY TRAINING AND EXERCISE RANGES
ALLOWS THE US MILITARY TO CONDUCT INDISPENSABLE LAND MANEUVER
EXERCISES, LIVE-FIRE TRAINING, PARACHUTING, AND AIR TRAINING
ACTIVITIES.
-- NO-COST LOAN OF 16 ITALIAN ARMY "CENTAURO" WHEELED ARMORED
VEHICLES TO THE US ARMY SIGNIFICANTLY AIDED THE
TRANSFORMATION OF NEW INTERIM BRIGADE COMBAT TEAMS TO DEVELOP
OPERATIONAL CONCEPTS, TACTICS AND PROCEDURES FOR A MOBILE GUN
SYSTEM.
-- ITALY HAS BEEN VERY RESPONSIVE TO SECURITY CONCERNS AS
EXEMPLIFIED WITH A 10-20 PERCENT INCREASE OF ARMED FORCES TO
SUPPLEMENT US AND CONTRACT GUARD PERSONNEL RESPONSIBLE FOR
PERIMETER SECURITY OF US/NATO-UTILIZED INSTALLATIONS.
-- PROVIDED ADDITIONAL VALUABLE LAND IN SUPPORT OF THE F-16
BEDDOWN AT AVIANO AIR BASE.
DEFENSE SPENDING:

33. (U) -- ITALIAN CONTRIBUTION TO BILATERAL AND MULTILATERAL
COOPERATIVE PROGRAMS FOR THE DEVELOPMENT OF NEW WEAPON
SYSTEMS HAS BEEN NOTHING SHORT OF OUTSTANDING. THEIR
PARTICIPATION REDUCES UNIT COSTS WHILE BOLSTERING A VITAL US
DEFENSE INDUSTRIAL BASE AS EXEMPLIFIED THROUGH THE JOINT
STRIKE FIGHTER PROGRAM (JSF),MEDIUM EXTENDED AIR DEFENSE
SYSTEM, MINI-INFORMATION DISTRIBUTION SYSTEM, F-16 FIGHTER
AIRCRAFT LEASE, LIGHTWEIGHT 155MM HOWITZER DEVELOPMENT, AND
UNCLASSIFIED

PAGE 04 ROME 00353 07 OF 12 291713Z
SEVERAL MISSILE UPGRADE PROGRAMS.
-- DIRECT PROCUREMENT OF US MANUFACTURED MAJOR DEFENSE
EQUIPMENT PROMOTES AMERICAN PRODUCTS AND INTEROPERABILITY
WHILE LENGTHENING AVAILABILITY OF PRODUCTION LINES AND
PRESERVING A US INDUSTRIAL BASE AS DEMONSTRATED THROUGH THE
PURCHASE OF 200 LOCKHEED-MARTIN JSF AIRCRAFT, FIVE GENERAL
ATOMICS PREDATOR UNMANNED ARIEL VEHICLES, AND LARGE-SCALE
PURCHASES OF FIVE TYPES OF RAYTHEON MISSILES.
-- ITALY AGGRESSIVELY PROCURES US-BASED TRAINING VALUED AT
OVER 60 MILLION DOLLARS PER YEAR IN ORDER TO TRAIN ITS
MILITARY PERSONNEL. THIS IMMENSE EXPENDITURE SUBSIDIZES
OPERATING COSTS AND HELPS SUSTAIN US MILITARY ACADEMIC
INSTITUTIONS.

ROLES AND MISSIONS:

34. (U) -- INVALUABLE PRODUCT SHARING OF ITALIAN MILITARY
INTELLIGENCE WITH US COUNTERPARTS CONSTITUTES A NOTEWORTHY
PORTION OF THE INTELLIGENCE COLLECTION AND ANALYSIS WORKLOAD
ESSENTIAL TO MAINTAINING FULL COVERAGE OF THE MEDITERRANEAN
REGION.

UNCLASSIFIED

UNCLASSIFIED PTQ1549

PAGE 01 ROME 00353 08 OF 12 291713Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9FE 291713Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7871
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 08 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 08 OF 12 291713Z
-- THE STRATEGIC AND PROMINENT IMPORTANCE OF THE NATO
COMBINED AIR OPERATIONS CENTER, HOSTED AND SUPPORTED BY
ITALY, AUGMENTS THE MANAGEMENT OF MILITARY AIR OPERATIONS IN
THE MEDITERRANEAN INCLUDING THE SENSITIVE BALKAN REGION.
-- CRUCIAL SEARCH AND RESCUE SERVICE PROVIDED BY THE ITALIAN
COAST GUARD IS REFINED THROUGH THE OPERATION OF A
SOPHISTICATED DISTRESS SIGNAL MONITORING SYSTEM THAT EXCEEDS
ICAO PROCEDURES AND MARITIME LAW AND IS RESPONSIVE TO BOTH
MILITARY AND CIVILIAN AIRCRAFT AND SHIPS.
-- THE CAPABILITY OF AN IMPRESSIVE ITALIAN AIR FORCE
SUPPRESSION ENEMY AIR DEFENSE (SEAD) SYSTEM PLAYS A VITAL
ROLE FOR THE PLANNING OF COMBINED AIR OPERATIONS AGAINST US
AND NATO ADVERSARIES.
-- ORCHESTRATION OF ITALIAN AIR OPERATIONS CREATES A
DEFENSIVE SHIELD FOR OVER 30,000 US MILITARY PERSONNEL AND
THEIR FAMILIES IN ADDITION TO PORTS, FACILITIES AND EQUIPMENT
USED FOR US MILITARY OPERATIONS.
-- DYNAMIC INTERACTION AND COOPERATION OF ITALIAN SENIOR
POLITICAL AND MILITARY LEADERS SUBSTANTIALLY REDUCES COST AND
COMPLEXITY FOR CONDUCTING US MILITARY OPERATIONS IN THE
REGION DESPITE INTERNAL CRITICISM FOR ALLOWING US/NATO
OPERATIONS ON ITALIAN SOIL.
-- EXTENSIVE CONTRIBUTIONS TO OPERATION ENDURING FREEDOM,
GENERATED THROUGH THE SUPPORT OF THE ITALIAN MINISTRY OF
DEFENSE AND PARLIAMENT, INCLUDE THE INTEGRATION AND
EMPLOYMENT OF RECONNAISSANCE, REFUELING, AND GROUND OFFENSIVE
AIRCRAFT, ARMORED, INFANTRY, AVIATION, ENGINEERING, AND
EXPLOSIVE ORDNANCE DISPOSAL TEAMS, AND A LARGE CARABINIERI
MILITARY POLICE UNIT.

DIRECT COST SHARING - MISCELLANEOUS
UNCLASSIFIED

PAGE 03 ROME 00353 08 OF 12 291713Z

35. (U) UNDER ARTICLE VIII, PARAGRAPH 5 OF THE NATO SOFA,
ITALY IS RESPONSIBLE FOR PAYING 25 PERCENT OF ALL NATO SOFA
CLAIMS ARISING OUT OF ACTS OR OMISSIONS OF DOD PERSONNEL IN
THE PERFORMANCE OF OFFICIAL DUTY. DURING CY02, ITALY'S 25
PERCENT SHARE OF ALL NATO SOFA CLAIMS PAID ON BEHALF OF THE
UNITED STATES WAS APPROXIMATELY 705,000 USD. THIS FIGURE
INCLUDES ITALY'S 650,000 USD SHARE OF A 2.6 MILLION USD
JUDGMENT ENTERED IN CY02 BY AN ITALIAN COURT THAT REFLECTS
PARTIAL PAYMENT OF A PROPERTY DAMAGE CLAIM ARISING OUT OF THE
FEBRUARY 1998 USMC AIR MISHAP AT CAVALESE (CERMIS).
ADDITIONALLY, ITALY PROVIDES NATO SOFA CLAIMS ADJUDICATION
AND LITIGATION DEFENSE SERVICES IN ITALIAN COURT AT NO COST
TO THE UNITED STATES. DURING CY02, THE VALUE OF THESE
SERVICES WAS APPROXIMATELY 500,000 USD.

36. (U) PURSUANT TO A 1982 MOU BETWEEN ITALY AND THE UNITED
STATES, ITALY PERMITS DOD TO CONDUCT RADIO AND TELEVISION
BROADCASTING SERVICES TO US DOD PERSONNEL STATIONED IN ITALY.
AT PRESENT, ITALY PROVIDES 36 FREQUENCIES AT NO COST TO THE
UNITED STATES TO SUPPORT DOD'S IN-COUNTRY TERRESTRIAL
BROADCAST OPERATIONS. BASED ON QUOTES OBTAINED IN CY02 BY
DOD'S AMERICAN FORCES NETWORK SOUTH (AFNS) TO PURCHASE OR
LEASE ADDITIONAL FREQUENCIES IN CASES WHERE NEEDED
FREQUENCIES COULD NOT BE OBTAINED FROM THE ITALIAN
GOVERNMENT, WE ESTIMATE THE ANNUAL LEASE COST, ON THE OPEN
MARKET, FOR AFNS'S EXISTING 36 FREQUENCIES WOULD BE 2.5
MILLION USD.

--------------
INDIRECT COST SHARING
UNCLASSIFIED

PAGE 04 ROME 00353 08 OF 12 291713Z
--------------
FOREGONE RENT:

37. (U) -- RECOGNITION OF ITALY,S CONTRIBUTION TO COMMON
DEFENSE IS BEST ILLUSTRATED THROUGH NO-COST SAVINGS FOR THE
RENTAL OR LEASE PROPERTY TO US FORCES, UTILIZATION OF FIXED
STRUCTURES, UTILITY CONNECTIONS TO BASE PERIMETERS (ALTHOUGH
THE US PAYS LOCAL ACCESS FEES,) EXTERNAL SECURITY FOR
INSTALLATIONS, AND TRAINING RANGES.
-- USG COST SAVINGS OF RENTAL OR LEASE OF PROPERTY ARE
MAXIMIZED THROUGH CLOSE COORDINATION AND COOPERATION OF
US/GOI MIXED COMMISSION BOARD.
-- HIGHLIGHTS OF NO-COST SAVINGS BENEFITS ARE REFLECTED
THROUGH A FAIR MARKET VALUE COMPARISON OF SIMILAR PROPERTIES
SOLD IN 2002. USING THIS COMPARISON, THE USG SAVED A TOTAL
OF ABOUT 8.8 MILLION DOLLARS IN 2002 IN FOREGONE RENT.
-- NO-COST SAVINGS ARE FURTHER BROKEN DOWN INTO RESPECTIVE
MILITARY SERVICES TO ACCOUNT FOR THE TREMENDOUS BENEFIT:
USNAVEUR HAS ACCESS TO 4 SITES THAT ENCOMPASS 577 ACRES OF
LAND, USAREUR UTILIZES 10 SITES COMPRISED OF 3,184 ACRES, AND
USAFE HAS ACCESS TO 20 SITES CONSISTING OF OVER 250 ACRES.

UNCLASSIFIED

UNCLASSIFIED PTQ1550

PAGE 01 ROME 00353 09 OF 12 291713Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DAA0C 291714Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7872
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 09 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 09 OF 12 291713Z
THE COST OF EACH ACRE OF LAND VARIES DEPENDING ON AGRICULTURE
OR COMMERCIAL UTILIZATION.
-- DURING RECENT BOMBING CAMPAIGNS, ITALY CLOSED TWO CIVILIAN
AIRPORTS TO COMMERCIAL TRAFFIC AND SUSPENDED MOST COMMERCIAL
FISHING IN THE ADRIATIC SEA IN ORDER TO SUPPORT USG/NATO
INTERESTS. GOI SUBSIDIZED THE COMMERCIAL FISHING AND AIRLINE
INDUSTRIES FOR THEIR LOSS IN REVENUE.

TAX CONCESSIONS/CUSTOMS/TOLLS/DUTY:

38. (U) ITALY'S MOST IMPORTANT BURDENSHARING CONTRIBUTION IN
THIS CATEGORY IS EXEMPTION FROM ITALY'S VALUE ADDED TAX (VAT,
KNOWN IN ITALY AS IVA) ON THE COST OF GOODS AND SERVICES
PROCURED BY THE U.S. FORCES IN ITALY FOR
OFFICIAL/INSTITUTIONAL PURPOSES. WITHOUT SUCH RELIEF THE IVA
TAX RATE WOULD BE 20 PERCENT ON THE VAST MAJORITY OF
PURCHASES MADE BY DOD IN ITALY. THERE IS ALSO COMPLETE
RELIEF FROM THE 10-40 PERCENT CUSTOMS DUTY ON PROPERTY DOD
IMPORTS INTO ITALY FOR OFFICIAL/INSTITUTIONAL PURCHASES,
INCLUDING PERSONAL PROPERTY DOD PERSONNEL SHIP UNDER DOD
TRAVEL ORDERS WHEN ENTERING COUNTRY ON PCS OR TDY/TAD.
ADDITIONALLY, APPROXIMATELY 220 MILLION USD OF GOODS AND
SERVICES ARE SOLD IN ITALY EACH YEAR TO ELIGIBLE PATRONS OF
DOD'S COMMISSARIES AND EXCHANGES FREE FROM IVA AND CUSTOMS
DUTIES. ADDITIONALLY, ITALY AND THE UNITED STATES HAVE A
LONG-STANDING DIPLOMATIC AGREEMENT THAT ALLOWS RATIONED
TAX-FREE SALES OF GASOLINE, MOTOR OIL, DIESEL FUEL, AND
CERTAIN OTHER PETROLEUM PRODUCTS TO ELIGIBLE U.S. DOD
PERSONNEL FOR USE IN THEIR PRIVATELY-OWNED MOTOR VEHICLES AND
IN THEIR HOMES.

UNCLASSIFIED

PAGE 03 ROME 00353 09 OF 12 291713Z
39. (U) OTHER FORMS OF TAX RELIEF PROVIDED BY ITALY TO THE
U.S. FORCES AND DOD PERSONNEL STATIONED IN ITALY INCLUDE: (1)
FULL EXEMPTION FROM PORT FEES FOR DOD GOODS LOADED OR
OFF-LOADED ON AT ITALIAN MILITARY AND CIVILIAN PORTS, (2)
FULL RELIEF FROM ITALY'S VEHICLE CIRCULATION TAX ("ROAD TAX")
FOR ALL DOD OFFICIAL VEHICLES AND THE FIRST PRIVATELY-OWNED
VEHICLE OWNED BY A DOD MILITARY MEMBER OR DOD CIVILIAN
EMPLOYEE, THE COST WHICH AVERAGES 300 USD PER VEHICLE, AND
(3) FULL RELIEF FROM ITALY'S AUTOMOBILE INSURANCE TAX ON THE
FIRST PRIVATELY-OWNED VEHICLE OWNED BY A DOD MILITARY MEMBER
OR DOD CIVILIAN EMPLOYEE, THE COST WHICH AVERAGES 80 USD FOR
EACH DOD MEMBER WHO HAD ONE OR MORE POVS REGISTERED UNDER THE
"ALLIED FORCES ITALY" REGISTRATION SYSTEM.

40. (U) SUMMARY OF ESTIMATED ITALIAN TAXES/CUSTOMS/DUTY
CONCESSIONS FOR CY02 FOLLOWS, IN USD MILLIONS

1. OFFICIAL PURCHASES OF GOODS, SERVICES, MATERIALS
AND SUPPLIES: 100

2. OFFICIAL IMPORT EXEMPTIONS: 100

3. POL PURCHASES (OFFICIAL AND PERSONAL): 100

4. TOLLS: 0

5. VALUE ADDED TAXES AND CUSTOMS DUTIES
ON PERSONAL PURCHASES: 75

6. POSTAL: 0

UNCLASSIFIED

PAGE 04 ROME 00353 09 OF 12 291713Z

7. UTILITIES: 8.5

8. TELECOMMUNICATIONS: 0

--------------
GRANT AID
--------------
41. (U) WHEN COMPARING G8 MEMBER COUNTRIES' AID CONTRIBUTIONS
AS A PERCENTAGE OF GDP, ITALY RANKS NEXT TO LAST (THE U.S.
RANKS LAST,) AT 0.1 PERCENT. ITALY GIVES LESS THAN THE AGREED
OECD AVERAGE OF 0.24 PERCENT OF GDP. DESPITE OFFICIAL
STATEMENT OF THE INCREASE TO 0.7 PERCENT OF GDP IT IS
UNREALISTIC TO EXPECT THAT ITALY WILL EVER BE ABLE TO KEEP UP
WITH THE NORTHERN EUROPEAN COUNTRIES, WHICH MEET AND EXCEED
OECD TARGETS. ITALY,S LIMITED FOREIGN ECONOMIC ASSISTANCE
PROGRAM IS CONSEQUENTLY TARGETED AT A FEW KEY REGIONS.

42. (U) ITALIAN PRIORITIES HAVE BEEN STABLE SINCE 1995. ITALY
ASSERTS ITS NATIONAL PRIORITIES AND AGENDA WITH ITS BILATERAL

UNCLASSIFIED

UNCLASSIFIED PTQ1551

PAGE 01 ROME 00353 10 OF 12 291714Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DAA14 291714Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7873
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 10 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 10 OF 12 291714Z
ASSISTANCE PROGRAMS. BILATERAL ASSISTANCE (PROVIDED BY THE
MINISTRIES OF FOREIGN AFFAIRS AND TREASURY) FOR 2002 (REVISED
BUDGET) WAS USD 475 MILLION, BUT THE 2003 BUDGET CALLS FOR A
2.7 PERCENT INCREASE TO USD 488 MILLION, 0.1 PERCENT OF TOTAL
GOVERNMENT SPENDING, THE SAME PERCENTAGE OF 2000 AND 2001.

43. (U) ITALY PREFERS, WHEN POSSIBLE, TO WORK THROUGH
MULTILATERAL INSTITUTIONS TO MANAGE ASSISTANCE PROGRAMS,
RATHER THAN SELF-MANAGE AS USAID DOES. ITALIAN BILATERAL
ASSISTANCE IS ALWAYS IN THE FORM OF PROJECTS, RATHER THAN
BALANCE OF PAYMENTS FINANCING OR CASH. ITALY RARELY FUNDS AN
INFRASTRUCTURE PROJECT, AND IS MOSTLY INTERESTED IN
ENVIRONMENT, AGRICULTURE, AND EDUCATION. RECIPIENT COUNTRIES
PROPOSE PROJECTS, WHICH ARE THEN CONSIDERED BY THE FOREIGN
MINISTRY FOR FUNDING. ON THE GROUND, ITALIAN AID WORKERS
COLLABORATE (WHICH DOES NOT IMPLY THEY ALWAYS AGREE) WITH
THEIR COUNTERPARTS FROM OTHER COUNTRIES TO ENSURE THAT
OVERALL AID PROJECTS WORK WELL. IN ROUGHLY TWENTY RECIPIENT
COUNTRIES OF BILATERAL ASSISTANCE, ITALY USES 'TECHNICAL
LOCAL UNITS' WHICH CONSIST OF ONE OR TWO ITALIANS AND OTHER
LOCAL STAFF. THESE UNITS ARE HEADQUARTERED WITHIN ITALIAN
EMBASSIES ABROAD. IN OTHER COUNTRIES, PROGRAMS ARE OVERSEEN
DIRECTLY BY THE EMBASSY, WITHOUT THE HELP OF A TECHNICAL
LOCAL UNIT.

44. (U) FOLLOWING THE MONTERREY CONFERENCE IN JULY IN THE
2003-2006 BUDGET PLANNING DOCUMENT THE GOI TOOK THE
COMMITMENT TO INCREASE THROUGH 2003 THE AID/GDP RATIO TO 0.33
PERCENT. THIS COMMITMENT, LIKE THAT ON DEFENSE, CONFLICTS
WITH THE CONSTRAINTS RELATED TO THE CRITICAL BUDGET SITUATION.

UNCLASSIFIED

PAGE 03 ROME 00353 10 OF 12 291714Z
TABLE 3
ITALY'S SPENDING FOR BILATERAL ASSISTANCE: 2002-2003
BY GOVERNMENT SOURCE
(IN MILLIONS OF USD UNLESS OTHERWISE INDICATED)

FY 2002 FY 2003 %
CHG CHG VALUE

1. MINISTRY OF 455 488
7.4 33
FOREIGN AFFAIRS

COOPERATION FOR 454 487 7.4
33
DEVELOPMENT OF
WHICH:
-- AID TO LESS 452 486
7.4 34
DEVELOPED
COUNTRIES (LDC)
-- HUMANITARIAN 1 1 -
-
ASSISTANCE
2. MINISTRY OF 20 0
-100.0 -20
TREASURY

3. TOTAL 475 488
2.7 13
(% OF GOV BUDGET) (0.1%) (0.1%)

UNCLASSIFIED

PAGE 04 ROME 00353 10 OF 12 291714Z
4. ADDENDUM:
GOV BUDGET 630,062 639,706
EXCHANGE RATE 1.00 1.00

SOURCE: GOI'S 2003 PROPOSED BUDGET.

--------------
ASSISTANCE TO NATO ASPIRANT COUNTRIES
--------------

45. (U) THE MFA ECONOMIC ASSISTANCE DEPARTMENT CONFIRMED THAT
ITALIAN ECONOMIC ASSISTANCE TO NATO ASPIRANT COUNTRIES IS
LIMITED TO MACEDONIA AND ALBANIA.

--------------
MACEDONIA
--------------

46. (U) AFTER THE FIRST HUMANITARIAN AND EMERGENCY
INTERVENTION OF 1991 CAUSED BY THE FLOW OF REFUGEES FROM

UNCLASSIFIED

>
@@@OASYS@@@

UNCLASSIFIED PTQ1538

PAGE 01 ROME 00353 01 OF 12 291710Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA98B 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7864
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 01 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 01 OF 12 291710Z
REF: A. 02SECSTATE 219916
B. 02ROME 06091

1. (U) THE FOLLOWING IS THE UNCLASSIFIED VERSION OF EMBASSY
ROME'S BURDENSHARING REPORT (REF B.) PLEASE NOTE THE CHANGE
IN THE ESTIMATE ON FOREGONE RENT IN PARAGRAPH 37. EMBASSY
ROME'S POC FOR THE BURDENSHARING REPORT IS POL OFFICER RAFIK
MANSOUR. HE CAN BE REACHED AT (39) 06.4674.2831 OR AT
MANSOURRK@STATE.GOV. PLEASE NOTE THAT THIS REPORT USES THE
DEC 4 OFFICIAL RATE OF EXCHANGE: EURO1 = $1.0008, ROUNDED OFF
TO EURO1 = $1.

2. (U) BEGIN TEXT.

--------------
POLITICAL SITUATION
--------------

3. (U) DOMESTIC: PM BERLUSCONI AND HIS CENTER-RIGHT
COALITION REMAIN IN FIRM CONTROL OF THE PARLIAMENT. DESPITE
CONTINUED CRITICISM FROM THE CENTER-LEFT OPPOSITION,
THIS COALITION IS LIKELY TO ENDURE THROUGH ITS FULL TERM INTO
THE
SPRING OF 2006 (THE FIRST POST-WAR ITALIAN GOVERNMENT TO DO
SO). ITS MAJORITY IN PARLIAMENT IS SUFFICIENT TO ENSURE THAT
IT CAN WIN VOTES NOT ONLY ON CONTROVERSIAL DOMESTIC ISSUES,
BUT ALSO ON FOREIGN POLICY ISSUES OF CONCERN TO THE US, SUCH
AS THE DEPLOYMENT OF ITALIAN LAND FORCES TO AFGHANISTAN.
THE PRIME MINISTER REMAINS PUBLICLY SUPPORTIVE OF U.S.
POLICY, MOST NOTABLY IN HIS STATEMENTS CONCERNING POTENTIAL
MILITARY ACTION IN IRAQ.
UNCLASSIFIED

PAGE 03 ROME 00353 01 OF 12 291710Z

4. (U) THE EU: GOI PREPARATIONS FOR ITS EU PRESIDENCY,
FROM JULY THROUGH DECEMBER 2003, BEGAN TO DOMINATE ITALY'S
FOREIGN POLICY PRIORITIES TOWARDS EUROPE WHEN THE GOVERNMENT
RETURNED TO WORK IN SEPTEMBER. ITALY IS PLAYING AN ACTIVE
ROLE IN THE EUROPEAN UNION'S ONGOING CONVENTION. WHETHER THE
PRODUCT OF THIS PROCESS IS A "CONSTITUTION" AS SOME IN THE EU
HAVE CALLED FOR, OR A LESS AMBITIOUS TREATY BASED DOCUMENT,
THE GOI AGREES WITH ALMOST ALL ITS EU PARTNERS THAT IT MUST
ADDRESS STRUCTURAL CHANGES TO THE EU'S INSTITUTIONS THAT WILL
MAKE IT MORE DEMOCRATIC AND EFFICIENT, ESPECIALLY IN LIGHT OF
ENLARGEMENT. THE ITALIANS ARE HOPING TO HAVE THE CONCLUDING
SESSION OF AN INTER-GOVERNMENTAL CONFERENCE, PRESIDED OVER BY
HEADS-OF-STATE, ADOPT THE FINAL DOCUMENT BY THE END OF ITS
PRESIDENCY. ITALY IS A STRONG PROMOTER OF ESDP. NOW THAT
BERLIN PLUS (NATO/ESDP COORDINATION) ARRANGEMENTS HAVE BEEN
AGREED BETWEEN NATO AND THE EU, ITALY CAN BE EXPECTED TO BE A
MAJOR CONTRIBUTOR TO THE FIRST EU PEACEKEEPING MISSIONS IN
MACEDONIA AND (POTENTIALLY) BOSNIA.

5. (U) NATO-RUSSIA: ITALY IS A STRONG SUPPORTER OF
IMPROVED NATO-RUSSIA TIES. PM BERLUSCONI WAS THE MAIN DRIVER
BEHIND THE MAY 27-28 NATO-RUSSIA ROME SUMMIT WHICH
ESTABLISHED THE NATO-RUSSIA COUNCIL. HE IS AN ACTIVE
BOOSTER OF RUSSIA'S RAPPROCHEMENT WITH THE WEST. ITALY PLAYS
AN ACTIVE ROLE --
IN PARTNERSHIP WITH THE US AND OTHER KEY ALLIES -- IN
SUPPORTING FINANCIALLY THE DESTRUCTION OF RUSSIAN CW, AND IS
WEIGHING PROVISION OF SIMILAR SUPPORT FOR THE DECOMMISSIONING
OF RUSSIAN NUCLEAR SUBMARINES.

UNCLASSIFIED

PAGE 04 ROME 00353 01 OF 12 291710Z
6. (U) "IN TOGETHER, OUT TOGETHER" ARE WELCOME WORDS TO OUR
GOI INTERLOCUTORS AT ALL
LEVELS. EUROPE, INCLUDING ITALY, IS TAKING MORE
RESPONSIBILITY FOR ITS OWN BACKYARD BY TAKING OVER POLICING
FUNCTIONS IN BOSNIA POST IPTF. AS NOTED ABOVE, ITALY WILL BE
A KEY CONTRIBUTOR TO THE FOLLOW-ON MISSION TO NATO'S TASK
FORCE FOX. THE GOI CONTINUES TO PARTICIPATE IN SFOR AND KFOR
(INCLUDING ANOTHER KFOR COMMAND STARTING OCTOBER 2002.)
ITALY IS ALBANIA'S "BIGGEST BOOSTER," LARGEST BILATERAL
DONOR, INVESTOR, PROVIDER OF LAW ENFORCEMENT ASSISTANCE, AND
GENERAL BIG BROTHER. THIS ENGAGEMENT HELPS PROVIDE A
RELATIVELY STABLE ANCHOR IN A VOLATILE REGION.

7. (U) ITALY'S PARTICIPATION IN PFP: ITALY IS A STRONG
SUPPORTER OF THE PFP PROGRAM, WITH PARTICULAR EMPHASIS ON
IMPROVING THE CAPABILITIES AND QUALITY OF PFP COUNTRIES IN SE
EUROPE. ITALY HAS CLOSE AND EXTENSIVE TIES WITH ALBANIA,
CROATIA, ROMANIA, BULGARIA, FYROM, SLOVENIA AND SLOVAKIA AND
REGULARLY CONDUCTS BILATERAL MILITARY TALKS. DURING THE
CURRENT ROUND OF NATO ENLARGEMENT, ITALY SOUGHT TO HAVE
ROMANIA AND BULGARIA INCLUDED AND WORKED WITH ALL OF THE SE

UNCLASSIFIED

UNCLASSIFIED PTQ1540

PAGE 01 ROME 00353 02 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA99E 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7865
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 02 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 02 OF 12 291711Z
EUROPEAN CANDIDATE COUNTRIES ON ECONOMIC, POLITICAL AND
MILITARY REFORMS TO RAISE THEIR CAPABILITIES IN ORDER TO
QUALIFY FOR MEMBERSHIP.

8. (U) THE GOI HAS SPONSORED MILITARY EXCHANGES ON ISSUES
SUCH AS INTELLIGENCE SHARING, COMMUNICATIONS AND LOGISTICS
PLANNING, PORT VISITS AND EXERCISES, TRAINING SEMINARS, AND
CONSULTATIONS WITH PFP COUNTRIES AND HAS PROMOTED COOPERATION
ON DEFENSE ACQUISITION. ITALY HAS ALSO INVESTIGATED TRAINING
OPPORTUNITIES BETWEEN THE ITALIAN CARABINIERI AND MILITARY
POLICE UNITS IN LATVIA, ESTONIA, ROMANIA AND BULGARIA, AND
BETWEEN ITALIAN ALPINI TROOPS AND MOUNTAIN UNITS FROM
MACEDONIA, SLOVENIA, AND ROMANIA. ITALIAN DIVERS AND
PARACHUTISTS HAVE TRAINED WITH BULGARIAN AND ROMANIAN UNITS
AS WELL.

9. (U) NATO MED DIALOGUE: ITALY IS ALSO DEDICATED TO
BREATHING LIFE INTO NATO'S MEDITERRANEAN DIALOGUE. PM
BERLUSCONI HAS INDICATED THAT STRENGTHENING THE DIALOGUE WILL
BE A GOI PRIORITY DURING ITALY'S EU PRESIDENCY IN 2003.

10. (U) NATO ENLARGEMENT: ALL THROUGHOUT 2002, ITALY HAS BEEN
IN FAVOR OF A ROBUST NATO ENLARGEMENT, PARTICULARLY AFTER
RUSSIAN CONCERNS ABOUT ENLARGEMENT WERE ADDRESSED. THE
ITALIANS FAVORED A "BALANCED ENLARGEMENT" OF NATO, ONE THAT
WOULD INCLUDE ROMANIA AND BULGARIA. ON DECEMBER 11, IN THE
PLENARY SESSION OF THE SOUTHEAST EUROPEAN DEFENSE MINISTERS,
MINISTER MARTINO EMPHASIZED THE IMPORTANCE OF ALBANIA,
CROATIA, AND MACEDONIA SEIZING THE OPPORTUNITY OF FUTURE NATO
MEMBERSHIP TO ACCELERATE THEIR DEFENSE REFORMS AND REGIONAL
COOPERATION AND PLEDGED DIRECT ITALIAN ASSISTANCE FOR THEIR
UNCLASSIFIED

PAGE 03 ROME 00353 02 OF 12 291711Z
EFFORTS.

11. (U) OEF: ITALY WAS ONE OF THE FIRST ALLIES TO OFFER
MILITARY ASSETS FOR OPERATION ENDURING FREEDOM. THE GOI
OFFERED A SUBSTANTIAL PACKAGE CONSISTING OF HER SOLE AIRCRAFT
CARRIER, 8 HARRIER AIRCRAFT, EIGHT HELICOPTERS, TWO FRIGATES,
A SUPPLY SHIP, 8 TORNADO AIRCRAFT, AN NBC UNIT, SIX EOD
TEAMS, ONE ENGINEER UNIT, AND AN ARMOURED REGIMENT WITH
EQUIPMENT. NOT ALL ASSETS WERE CALLED UPON, HOWEVER THE
AIRCRAFT CARRIER AND FRIGATES WERE AMONG THOSE THAT OPERATED
IN THEATER FOR SEVERAL MONTHS. ITALY'S PARLIAMENT VOTED
OVERWHELMINGLY IN NOVEMBER 2001 TO APPROVE ITALIAN
CONTRIBUTIONS TO OEF, AND AGAIN IN OCTOBER 2002 WHEN
ADDITIONAL ASSETS WERE MADE AVAILABLE. THE GOI HAS ALSO
OFFERED TO BACKFILL US TROOPS SERVING WITH NATO MISSIONS IN
THE BALKANS AS ANOTHER MEANS OF SUPPORTING OEF.

12. (U) THE GOI RECENTLY AGREED TO OUR REQUEST TO DEPLOY A
LIGHT INFANTRY BATTALION (APPROXIMATELY 1000 SOLDIERS) TO
SERVE AS A MANEUVER FORCE IN AFGHANISTAN BEGINNING IN MARCH,
2003. AT THAT POINT, ITALY WILL BE SECOND ONLY TO THE US IN
GROUND FORCES AND TOTAL FORCES COMMITTED TO OEF. IN
ADDITION, TWO ITALIAN C-130J AIRCRAFT BEGAN OPERATING OUT OF
MANAS AIR BASE IN OCTOBER.

--------------
ECONOMIC SITUATION
--------------

13. (U) ITALY HAS THE WORLD'S SIXTH LARGEST ECONOMY WITH A
GDP OF ABOUT USD 1.3 TRILLION IN 2002. ITS GDP GROWTH, AN
UNCLASSIFIED

PAGE 04 ROME 00353 02 OF 12 291711Z
ESTIMATED 0.3 PERCENT IN 2002 AND 1.5 PERCENT IN 2003, WAS
SLIGHTLY BELOW THE AVERAGE OF THE 12 MEMBER STATES OF THE
EUROPEAN ECONOMIC AND MONETARY UNIONS (EMU).

14. (U) THE GOI PRESENTED ITS 2003 BUDGET TO PARLIAMENT ON
OCTOBER 2. REVISIONS ARE EXPECTED BEFORE PARLIAMENT APPROVES
THE BUDGET IN LATE DECEMBER. THE 2003 BUDGET TOTALS USD
639.7 BILLION (OR 49.0 PERCENT OF GDP),WITH A DEFICIT OF USD
19.6 BILLION (OR 1.5 PERCENT OF GDP.) A PACKAGE OF USD 20
BILLION (OR 1.5 PERCENT OF GDP) IN SPENDING CUTS IS PARTLY
OFFSET BY A STIMULUS PACKAGE OF USD 7.5 BILLION (OR 0.4
PERCENT OF GDP) IN TAX CUTS AND INVESTMENTS IN
INFRASTRUCTURE. DEFENSE MINISTRY SPENDING CUTS WILL NOT
REQUIRE CUTS IN SPENDING ON PURCHASES OF U.S. EQUIPMENT,
ACCORDING TO DEPUTY FINANCE MINISTER BALDASSARRI AND FINANCE
UNDER SECRETARY TANZI.

15. (SBU) THE GOI HAD HOPED TO HAVE SERIOUS ECONOMIC REFORMS
IN PLACE BY NOW. FINANCE MINISTER TREMONTI'S PROGRAM CALLED
FOR IMPLEMENTATION OF MAJOR TAX REFORM IN 2002 AND PENSION
REFORM SOON AFTERWARD. THE CONTINUED GLOBAL DOWNTURN,

UNCLASSIFIED

UNCLASSIFIED PTQ1541

PAGE 01 ROME 00353 03 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9A1 291711Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7866
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 03 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 03 OF 12 291711Z
COMBINED WITH CONCERN THAT POSSIBLE ACTION IN IRAQ COULD DRAG
THE WORLD ECONOMY DOWN EVEN FURTHER, HAS COMPLICATED MATTERS.
TAX REVENUES ARE DOWN SUBSTANTIALLY, WHILE THE GOI HAS FOUND
IT VIRTUALLY IMPOSSIBLE TO CUT SPENDING.

16. (SBU) THE 2003 BUDGET IS THEREFORE A DIFFICULT
COMPROMISE. FINANCE MINISTER TREMONTI IS SEEKING TO COMBINE
FISCAL STIMULUS (TO AVOID A FURTHER SERIOUS DOWNTURN) WITH
SMALL CUTS IN CENTRAL GOVERNMENT SPENDING AND POLITICALLY
DIFFICULT CAPS ON REGIONAL AND MUNICIPAL SPENDING. THE FACT
THAT THIS BUDGET PLEASES ALMOST NO ONE MAY BE THE BEST
ARGUMENT THAT THE PAIN IS FAIRLY DISTRIBUTED.

--------------
DEFENSE POLICY/DEFENSE SPENDING
--------------

17. (U) FIGURES REGARDING THE PROPOSED ITALIAN DEFENSE BUDGET
HAVE BEEN PUBLISHED IN THE OFFICIAL DOCUMENTS TRANSMITTED BY
GOI TO THE PARLIAMENT ON OCTOBER 2. THE TOTAL MOD FUNDING
REQUEST FOR FY 2003 IS USD 19.61 BILLION, UP 3.1 PERCENT (OR
USD 590 MILLION) FROM THE MOD REQUEST FOR FY 2002. IN OTHER
TERMS, 2003 MOD APPROPRIATIONS AMOUNT TO 1.5% OF THE GDP,
COMPARED TO 1.52% OF 2002. THE DRAFT 2003 MOD BUDGET
PROVIDES A 3.1 PERCENT INCREASE, BUT ASSUMING A 1.9 PERCENT
INFLATION RATE IN 2003, THIS FIGURE REPRESENTS A MODEST
INCREASE IN REAL TERMS OVER 2002.

TABLE 1
SUMMARY OF MOD BUDGET: 2002-2003
UNCLASSIFIED

PAGE 03 ROME 00353 03 OF 12 291711Z
(IN BILLIONS OF USD)

FY 2002 FY 2003
%CHG CHG VALUE

1. NATIONAL DEFENSE 13.666 14.027
2.6 362
(AS % OF GDP) (1.09%) (1.07%)

2. DOMESTIC SECURITY
(CARABINIERI) 4.264 4.565 7.1
301
(AS % OF GDP) (0.34%) (0.35%)

3. OTHER 1.097 1.023 -6.7
-74
(AS % OF GDP) (0.1%) (0.35%)

4. TOTAL MOD
APPROPRIATIONS 19.025 19.615
3.1 590
(AS % OF GDP) (1.52%) (1.50%)
(AS % OF GOV BUDGET) (3.02%) (3.07%)

ADDENDUM:
GDP (1) 1,253 1,305 4.1
52
GOV BUDGET 630.062 639.706
UNCLASSIFIED

PAGE 04 ROME 00353 03 OF 12 291711Z
EXCHANGE RATE 1.00 1.00
SOURCE: GOVERNMENT'S 2003 BUDGET PROPOSAL (SEPTEMBER 2002).

18. (U) DEFENSE FUNCTION INCLUDES THE BUDGETS OF THE ARMY,
NAVY AND AIR FORCE AND EXCLUDES DOMESTIC SECURITY
(CARABINIERI) AND OTHER NON-ESSENTIAL MOD FUNCTIONS. THE
DEFENSE FUNCTION BUDGET FOR 2003 IS USD 14.03 BILLION, UP
2.6% OR USD 362 MILLION FROM 2002 AND IS MOSTLY DESIGNED TO
ASSURE THE CONTINUATION OF THE STRUCTURAL REFORM OF ARMED
FORCES (PERSONNEL AND OPERATIVE SPENDING) AND DEFENSE
MODERNIZATION PROJECTS (INVESTMENTS.) THE OPTIMAL
DISTRIBUTION OF DEFENSE FUNCTION SPENDING IS 70 PERCENT FOR
THE FUNCTIONING OF DEFENSE AND 30 PERCENT FOR DEFENSE
MODERNIZATION. THE 2003 BUDGET DEVOTES 76.1 PERCENT OF
OVERALL DEFENSE FUNCTION SPENDING FOR DEFENSE OPERATIONS
(74.4 PERCENT IN 2002 BUDGET) AND ONLY 23.9 PERCENT FOR
INVESTMENTS (25.6 PERCENT IN THE 2002 BUDGET.)

19. (U) AIR FORCE INVESTMENTS (USD 1,256 MILLION) ACCOUNT FOR
ALMOST FORTY PERCENT OF OVERALL ALLOTMENTS. THESE FUNDS ARE

UNCLASSIFIED

UNCLASSIFIED PTQ1543

PAGE 01 ROME 00353 04 OF 12 291711Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9B1 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7867
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 04 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 04 OF 12 291711Z
RELATED TO THE DEVELOPMENT OF THE EUROFIGHTER (THE OVERALL
COMMITMENT UP TO 2015 IS USD 18.1 BILLION, WHILE THE
COMMITMENT FOR 2003 IS USD 564 MILLION,) THE CONTINUATION OF
THE LEASING CONTACT OF THE TORNADO (THE OVERALL COMMITMENT UP
TO 2015 IS USD 1.2 BILLION, WHILE THE COMMITMENT FOR 2003 IS
USD 181.2 MILLION) AND FOR THE PURCHASE OF TRANSPORT
AIRCRAFT.

20. (U) NAVY INVESTMENTS (USD 860 MILLION) ACCOUNT FOR ABOUT
26 PERCENT OF OVERALL INVESTMENTS. THESE FUNDS ARE DEVOTED
TO:
-- THE PURCHASE OF TWO ESCORT FRIGATES OF THE CLASS ORIZZONTE
(THE OVERALL COMMITMENT UP TO 2009 IS USD 1.5 BILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 155 MILLION.)
-- THE CONSTRUCTION OF THE NEW AIRCRAFT CARRIER ANDREA DORIA
(THE OVERALL COMMITMENT UP TO 2008 IS USD 1.4 BILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 92 MILLION.)
-- THE INTERNATIONAL COOPERATION FOR MISSILE SYSTEMS
PAAMS-SAAM (THE OVERALL COMMITMENT UP TO 2014 IS USD 795
MILLION, WHILE THE COMMITMENT FOR 2003 IS USD 89 MILLION.)
-- THE ACQUISITION OF TWO NEW GENERATION SUBMARINES U212A
(THE OVERALL COMMITMENT UP TO 2007 IS USD 904 MILLION, WHILE
THE COMMITMENT FOR 2003 IS USD 129 MILLION.)

21. (U) ARMY INVESTMENTS (USD 832 MILLION) REPRESENT ANOTHER
25 PERCENT OF OVERALL ALLOTMENTS. THESE FUNDS ARE DEVOTED TO:
-- THE PROGRAM VCC DARDO COMBAT (THE OVERALL COMMITMENT UP TO
2004 IS USD 550 MILLION, WHILE THE COMMITMENT FOR 2003 IS USD
123.9 MILLION.)
-- THE INDUSTRIALIZATION AND PRODUCTION OF 16 HELICOPTERS
NH-90 (THE OVERALL COMMITMENT UP TO 2018 IS USD 3.35 BILLION,
UNCLASSIFIED

PAGE 03 ROME 00353 04 OF 12 291711Z
WHILE THE COMMITMENT FOR 2003 IS USD 120.8 MILLION.)
-- THE REMAINING USD 408 MILLION (12 PERCENT OF TOTAL) WILL
FINANCE INTERFORCE PROJECTS LIKE THE DEVELOPMENT OF THE JOINT
STRIKE FIGHTER (THE OVERALL COMMITMENT UP TO 2012 IS USD 1.19
BILLION, WHILE THE COMMITMENT FOR 2003 IS USD 107.3 MILLION.)

TABLE 2
SUMMARY OF NATIONAL DEFENSE BUDGET: 2002-2003
(IN BILLIONS OF USD)

FY 2002 FY 2003 %
CHG CHG VALUE

1. PERSONNEL 6.578 7.023 6.8
445
(AS % OF GDP) (0.52%) (0.54%)

2. OPERATIONS 3.589 3.647 1.6
58
(AS % OF GDP) (0.29%) (0.28%)

3. INVESTMENTS 3.499 3.357 -4.1
-142
(AS % OF GDP) (0.28%) (0.26%)

4. TOTAL NATIONAL
DEFENSE
APPROPRIATIONS 13.666 14.027
2.6 341
UNCLASSIFIED

PAGE 04 ROME 00353 04 OF 12 291711Z
(AS % OF GDP) (1.09%) (1.07%)
(AS % OF GOV
BUDGET) (2.17%) (2.19%)

ADDENDUM:
GDP 1,253 1,305 4.1
52
GOV BUDGET 630.062 639.706
EXCHANGE RATE 1.00 1.00

SOURCE: GOVERNMENT'S 2002 BUDGET PROPOSAL (SEPTEMBER 2002).
THE 2002 DATA IS THE REVISED 2002 BUDGET.

--------------
AFGHANISTAN: OEF AND ISAF
--------------
22. (U) ON JAN 15, 2002 ITALY DEPLOYED A TASK FORCE COMPRISED
OF 450 SOLDIERS TO THE INTERNATIONAL SECURITY ASSISTANCE
FORCE (ISAF). THIS FORCE PROVIDED ISAF SITE SECURITY IN THE
KABUL AREA. ITALY IS PROVIDING THREE C-130 (TWO OPERATING
FROM ABU DHABI) AND LEASING ONE B-707, ONE AN-124, AND ONE

UNCLASSIFIED

UNCLASSIFIED PTQ1545

PAGE 01 ROME 00353 05 OF 12 291712Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9C0 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7868
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 05 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 05 OF 12 291712Z
IL-76 IN SUPPORT OF ISAF. ITALY PROVIDED ITS ONLY CARRIER
BATTLE GROUP TO SUPPORT COMBAT OPERATIONS IN THE NORTH
ARABIAN SEA. IT DEPLOYED MORE THAN 13 PERCENT OF ITS ENTIRE
NAVAL FORCE FOR USE IN OEF. THE "DE LA PENNE" GROUP (ONE
DESTROYER AND ONE FRIGATE) RELIEVED THE CARRIER BATTLE GROUP
ON MARCH 15, 2002. THE ITALIAN FRIGATE "EURO" TRANSITED THE
SUEZ CANAL ON MAY 8, 2002 TO RELIEVE BOTH COMBATANTS ON
STATION. CURRENTLY THE "EURO" IS STATIONED IN THE GULF OF
OMAN WITH THE CANADIAN TG 50.04. IT TOOK PART IN THE CAPTURE
OF TWO ALLEGED AL QAEDA ELEMENTS ON JULY 13, 2002 (THE FIRST
EPISODE OF EFFECTIVE LIO IN OEF.) ITALY MOVED MORE THAN
17,000 LBS. (27 CUBIC METERS) OF SUPPLIES AND EQUIPMENT FROM
BRINDISI TO ISLAMABAD, PAKISTAN ON MARCH 19, 2002.
SUPPLIES/EQUIPMENT INCLUDED A FORKLIFT AND EQUIPMENT FROM THE
WORLD FOOD PROGRAM (WFP). ON APRIL 18, 2002, ITALIAN AIR
FORCE AIRCRAFT AND A SECURITY FORCE FROM THE CARABINIERI
TRANSPORTED FORMER AFGHANISTAN KING MOHAMMED ZAHIR SHAH AND
AIA LEADER HAMID KARZAI FROM ROME TO KABUL WITHOUT INCIDENT.

23. (U) ITALY HAS ALREADY SENT 2,700 TROOPS IN SUPPORT OF
OEF, IN DEPLOYMENTS THAT ARE NOW COMPLETED. THE GOI IS NOW
PREPARING FOR THE DEPLOYMENT OF A 1,000 MAN ALPINI TASK FORCE
INTO AFGHANISTAN IN MARCH 2003. ITALY ALSO HAS 15 PERSONNEL
DEPLOYED IN SUPPORT OF OPERATION ENDURING FREEDOM IN THE
COALITION COORDINATION CENTER (CCC) OF USCENTCOM AT MACDILL
AFB, TAMPA, FL.

24. (U) ITALY'S COMMITMENTS TO OEF AND ISAF HAVE COST IT USD
170 MILLION AND USD 80 MILLION, RESPECTIVELY. ADDITIONALLY,
ITALY HAS BEEN ACTIVE IN THE FINANCIAL WAR ON TERRORISM,
FREEZING ACCOUNTS OF INDIVIDUALS AND ENTITIES CONNECTED TO
UNCLASSIFIED

PAGE 03 ROME 00353 05 OF 12 291712Z
TERRORIST ACTIVITY. IN OCTOBER, ITALY BECAME ONLY THE SECOND
COUNTRY WHICH JOINED THE U.S. IN JOINTLY DESIGNATING ENTITIES
FOR ASSET FREEZE.

25.(U) ITALY VOLUNTEERED TO SERVE AS THE LEAD NATION IN
COORDINATING INTERNATIONAL EFFORTS TO ASSIST IN THE REFORM OF
AFGHANISTAN'S JUDICIAL SECTOR, ONE OF FIVE AREAS OF REFORM
CONTRIBUTING TO AFGHANISTAN'S LONG-TERM SECURITY. IN THIS
CAPACITY, THE GOI HAS SPONSORED A NUMBER OF MEETINGS AND
HOSTED A MAJOR INTERNATIONAL DONOR CONFERENCE DECEMBER 19-20,
AS WELL AS A SEMINAR FOR AFGHAN JURISTS DECEMBER 16-17. GOI
STAFF AT ITS KABUL EMBASSY INCREASED TO ENABLE IT TO FULFILL
THIS ROLE, AS DID THE ALLOCATION OF PERSONNEL TO THE MFA'S
AFGHANISTAN DESK. ITALIAN ASSISTANCE TO AFGHANISTAN REACHED
47.5 MILLION EURO AS OF LATE NOVEMBER.

--------------
MILITARY REFORM
--------------

26. (U) ITALY CONTINUES TO EXECUTE ITS PLAN TO ESTABLISH A
PROFESSIONAL, ALL-VOLUNTEER FORCE. THE GOI'S CURRENT TARGET
IS A FULLY PROFESSIONAL FORCE OF 190,000 (APPROXIMATELY TEN
PERCENT OF WHICH WILL BE WOMEN) BY THE END OF 2005. DEFENSE
MINISTER MARTINO HOPES TO HAVE THE PROFESSIONAL FORCE IN
PLACE BY 2004 AS A COST-SAVING MEASURE. LEGISLATION TO THAT
EFFECT WAS INTRODUCED IN THE ITALIAN PARLIAMENT IN MID-2002.

27. (U) ARMY: THE ITALIAN ARMY, WHICH CONSISTED OF
APPROXIMATELY 120,000 PERSONNEL IN 2002, IS UNDERGOING
SIGNIFICANT CHANGE AS IT STRIVES TO COMPLETE ITS TRANSITION
UNCLASSIFIED

PAGE 04 ROME 00353 05 OF 12 291712Z
TO A SMALLER, MORE DEPLOYABLE, AND COMPLETELY PROFESSIONAL
FORCE. APPROXIMATELY 60,000 CONSCRIPTS REMAIN IN SERVICE AS
THE ARMY DOWNSIZES TO 112,000 VOLUNTEERS BY THE END OF 2005.
WHILE 13 BRIGADES ARE STILL LISTED AS COMPRISING THE BULK OF
FORCES, ONLY TEN BRIGADES WILL BE AVAILABLE IN THE FINAL
STRUCTURE FOR CRISIS REACTION OR HOMELAND DEFENSE MISSIONS.
THESE BRIGADES ARE EMPLOYED MUCH LIKE THE US ARMY'S
DIVISIONS. THEY ARE ALL ASSIGNED NATO MISSIONS AND MANY
COULD ALSO BE USED BY THE EU. A LITTLE OVER 6,500 ARMY
PERSONNEL ARE DEPLOYED OVERSEAS, MOSTLY IN THE BALKANS, AND
AFGHANISTAN. MAJOR ISSUES ARE: THE EXPANDING NUMBER OF
PEACEKEEPING AND OTHER TYPES OF MULTINATIONAL OPERATIONS, THE
COMPLETE INTEGRATION OF WOMEN INTO MOST OF THE UNITS, AND
ASSURING SUFFICIENT PERSONNEL ARE RECRUITED IN THE COMING
YEARS. IF THE CURRENT PACE OF RECRUITMENT CONTINUES, THE
ARMY MAY BE SHORT 15,000 PERSONNEL IN 2006. THIS SHORTFALL
DOES NOT APPEAR TO UPSET THE CURRENT LEADERSHIP, AS IT WILL
ALLOW FOR A MORE GRADUAL INCREASE IN PROFESSIONAL SOLDIERS.
MEANWHILE, THE ITALIAN ARMY IS MOVING FORWARD IN IMPROVING
ITS CAPABILITIES. ITS NEWLY CREATED MULTINATIONAL CORPS
LEVEL HIGH READINESS FORCE (LAND) HEADQUARTERS WAS OFFERED TO

UNCLASSIFIED

UNCLASSIFIED PTQ1546

PAGE 01 ROME 00353 06 OF 12 291712Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9DC 291712Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7869
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 06 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 06 OF 12 291712Z
NATO AS AN ALLIED RAPID DEPLOYABLE CORPS AND UNDERWENT FULL
OPERATIONAL CAPABILITY TESTING WITH A MAJOR EXERCISE IN
DECEMBER 2002. THE ITALIAN ARMY ALSO CONTINUES TO ACQUIRE
MODERN WEAPONS AND COMBAT VEHICLES SUCH AS THE ARIETE TANK
AND THE DARDO ARMORED PERSONNEL CARRIER.

28. (U) NAVY: THE ITALIAN NAVY IS COMPRISED OF 34,000 MEN
AND WOMEN. THE MAIN COMPONENTS OF THE ITALIAN FLEET INCLUDE
ONE AIRCRAFT CARRIER (HELICOPTERS AND AV-8B SEA HARRIERS),
THREE AMPHIBIOUS SHIPS, APPROXIMATELY 25 FRIGATES/DESTROYERS,
EIGHT DIESEL SUBMARINES, 10 PATROL BOATS, AND 10
MINESWEEPERS. CONSTRUCTION HAS BEGUN ON A LARGE AMPHIBIOUS
SHIP,8 WHICH WILL BE CAPABLE OF ACTING AS A TROOP TRANSPORT
AND ALSO HAVE THE ABILITY TO OPERATE HELICOPTERS AND AV-8B
SEA HARRIERS, AND, EVENTUALLY, V/STOL JSFS. A TYPE 212
SUBMARINE CONSTRUCTION PROGRAM WILL
WILL REPLACE OLDER SUBMARINES. THE ITALIAN NAVY ALSO WANTS
TO ENHANCE ITS AMPHIBIOUS CAPABILITY TO PROJECT POWER BY
REFITTING ITS TWO LPDS, PROCURING NEW HELICOPTERS AND
ENLARGING ITS SAN MARCO NAVAL INFANTRY GROUP. IN 2002, THE
ITALIANS CONTINUED CO-PRODUCTION, WITH THE FRENCH, OF THE
HORIZON FRIGATE, A PROGRAM DESIGNED TO REPLACE SEVERAL OLDER
FRIGATES. THE ITALIANS HAVE A BILATERAL AMPHIBIOUS AGREEMENT
WITH THE SPANISH NAVY, WHICH HAS LED TO THE CREATION OF A
JOINT ITALIAN-SPANISH AMPHIBIOUS FORCE. THEY ARE ALSO
PROPOSING CREATION OF A NATO NAVAL HIGH READINESS FORCE USING
ITALIAN UNITS AS THE CENTERPIECE.

29. (U) AIR FORCE: THE ITALIAN AIR FORCE PROVIDES
SIGNIFICANT LOGISTICAL INFRASTRUCTURE SUPPORT TO THE US AND
NATO FORCES. HOWEVER, ITS ABILITY TO CONTRIBUTE DIRECTLY IN
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PAGE 03 ROME 00353 06 OF 12 291712Z
A FORCE-PROJECTION ROLE IS MODEST. THE PRIMARY MILITARY
LIMITATIONS TO OUT OF AREA OPERATIONS OF THE ITALIAN AIR
FORCE ARE: PROHIBITION OF THE USE OF CONSCRIPTS OVERSEAS,
LACK OF STRATEGIC LIFT, AND LACK OF ADEQUATE AIR REFUELING
SUPPORT FOR MORE THAN A HANDFUL OF AIRCRAFT. ADDITIONALLY,
IN THE SURFACE ATTACK ROLE, THERE ARE INSUFFICIENT
INVENTORIES OF PRECISION GUIDED WEAPONS TO SUSTAIN A BOMBING
CAMPAIGN OF MORE THAN A FEW DAYS. HOWEVER, SINCE THE END OF
THE GULF WAR, ITALY HAS MADE DRAMATIC GAINS IN IMPROVING ITS
CONVENTIONAL WAR FIGHTING ABILITY. ITALY HAS INCREASED ITS
PURCHASE OF PRECISION WEAPONS, SIGNED CONTRACTS TO PURCHASE
US-MADE AIR REFUELING AIRCRAFT, LEASED EX-US F-16 FALCONS (34
F-16A/B AIRCRAFT TO ARRIVE IN CY2003 FOR USE IN AUGMENTING
ITS FIGHTER INTERCEPTOR FORCE UNTIL THE EUROFIGHTER TYPHOON
COMES ON LINE,) PURCHASED 24 C-130J AIRCRAFT, MODIFIED SOME
TORNADO AIRCRAFT FOR SUPPRESSION OF ENEMY AIR DEFENSE ROLES
AND INCREASED TRAINING OF TORNADO FLIGHT CREWS IN THE
EMPLOYMENT OF LASER GUIDED MUNITIONS.

30. (U) THE EUROFIGHTER TYPHOON IS THE LARGEST PROCUREMENT
ITEM IN ITALY,S DEFENSE BUDGET. ALTHOUGH IT ENTERS SERVICE
IN 2004, IT WILL NOT REACH FULL OPERATIONAL CAPABILITY UNTIL
2007 OR 2008. UNTIL IT REACHES FULL OPERATIONAL CAPABILITY,
IT WILL NOT GREATLY INCREASE ITALY'S ABILITY TO PROVIDE AIR
SUPREMACY AND DEPLOYABILITY. AS A RESULT, A LARGE PART OF
ITALY,S AIR COMBAT POWER WILL RELY ON OBSOLETE F-104
STARFIGHTER AIRCRAFT (TO BE REPLACED BY THE EUROFIGHTER
TYPHOON) AND THE SURFACE ATTACK
AIRCRAFT, THE JOINT BRAZILIAN-ITALIAN AMX. ITALY WAS THE
SECOND FOREIGN CUSTOMER TO SIGN A CONTRACT TO HELP FUND,
DEVELOP AND MANUFACTURE THE JOINT STRIKE FIGHTER (JSF),AND
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PAGE 04 ROME 00353 06 OF 12 291712Z
THE SIZE OF ITS PARTICIPATION MAKES IT THE SECOND LARGEST JSF
PARTNER(AFTER THE UK). ITALY PLANS ON TAKING DELIVERY OF ITS
FIRST JSF IN 2012 AND WILL USE THE AIRCRAFT TO REPLACE ITS
AMX AND TORNADO AIRCRAFT IN THE SURFACE ATTACK ROLE AND
REPLACE ITS AV-8B,S ONBOARD THE CARRIER GARIBALDI AND ITS
SUCCESSOR. WITH ITALY,S REPLACEMENT OF THE F-104 BY THE
TYPHOON AND THE REPLACEMENT OF THE AMX WITH THE JOINT STRIKE
FIGHTER, ITS EMPLOYABLE COMBAT POWER WILL SIGNIFICANTLY
INCREASE.

31. (U) CARABINIERI: THE CARABINIERI ARE, TECHNICALLY, THE
FOURTH ELEMENT OF THE ITALIAN ARMED FORCES, AND REPORT TO THE
MINISTER OF DEFENSE. WHILE MOST CARABINIERI RESPONSIBILITIES
ARE FOR DOMESTIC SECURITY AND POLICE, CARABINIERI FORCES PLAY
A LEADING ROLE IN MSU OPERATIONS IN THE BALKANS, AFGHANISTAN,
AND ARE IN MANY RESPECTS THE MODEL FOR INTERNATIONAL FORCES
BRIDGING THE GAP BETWEEN MILITARY PEACEKEEPING AND CIVILIAN
POLICING FUNCTIONS. ADDITIONALLY, PURSUANT TO A
LONG-STANDING AGREEMENT WITH THE US ARMY, ITALY PROVIDES TWO
CARABINIERI COMPANIES ON A FULL-TIME BASIS TO THE US ARMY'S
SOUTHERN EUROPEAN TASK FORCE TO ASSIST IN FORCE PROTECTION

UNCLASSIFIED

UNCLASSIFIED PTQ1547

PAGE 01 ROME 00353 07 OF 12 291713Z
ACTION PM-00

INFO LOG-00 NP-00 AID-00 AMAD-00 ACQ-00 CA-01 CIAE-00
SRPP-00 EUR-00 UTED-00 VC-00 TEDE-00 INR-00 IO-00
LAB-01 VCE-00 AC-01 NSAE-00 ACE-00 IRM-00 SSO-00
SS-00 TEST-00 PMB-00 PRM-00 DRL-01 SAS-00 /004W
-------------- 2DA9F0 291713Z /38
O 291637Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 7870
INFO SECDEF WASHDC IMMEDIATE
ALL NATO POST COLLECTIVE PRIORITY
JOINT STAFF WASHDC PRIORITY
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 07 OF 12 ROME 000353

SIPDIS

STATE FOR PM/B - SENIOR ADVISOR
STATE ALSO FOR EUR/WE AND EUR/RPM
DOD FOR OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP,
OASD/ISA/NESA, OASD/ISA/BTF AND OSD/PA AND EU

E.O. 12958: N/A
TAGS: PREF, MCAP, MARR, NATO, IT
SUBJECT: ITALY: 2003 REPORT TO CONGRESS ON ALLIED
CONTRIBUTIONS TO THE COMMON DEFENSE

UNCLASSIFIED

PAGE 02 ROME 00353 07 OF 12 291713Z
AND LAW ENFORCEMENT ON BASES USED BY THE US ARMY IN ITALY.

--------------
ITALY'S CONTRIBUTION TO THE COMMON DEFENSE
--------------
HOST NATION SUPPORT:

32. (U) -- ITALY PROVIDES FOR USG USE OF SEVEN PRINCIPAL
MILITARY BASES AND NUMEROUS SMALLER LOCATIONS, ALL ON A
NO-FEE BASIS, A UNIQUELY ADVANTAGEOUS ARRANGEMENT FOR THE US
DEFENSE BUDGET. THESE STRATEGICALLY LOCATED INSTALLATIONS
PERMIT A FORMIDABLE US FORCE CAPABILITY VIA THREE AIRBASES,
ONE STAGING BASE, ONE LARGE AMMUNITION AND EQUIPMENT BASE AND
TWO HOMEPORTS - ONE WITH THE ONLY ATLANTIC REGION
MAINTENANCE/REPAIR TENDER SHIP PRIMARILY FOR NUCLEAR POWERED
SUBMARINES. US FLEET AND SUBMARINE OPERATIONS IN THE
MEDITERRANEAN WOULD BE SERIOUSLY HAMPERED WITHOUT THIS
CAPABILITY.
-- ITALIAN CIVIL AND MILITARY SECURITY FORCES PROVIDE
INVALUABLE ANTI-TERRORIST PROTECTION TO US SHIPS TRANSITING
ITALIAN PORTS AND MILITARY BASES UTILIZED BY USG ALONG WITH
ARMED CARABINIERI SECURITY OF SENIOR US OFFICERS STATIONED OR
TRANSITING ITALY AND OTHER DIGNITARIES, AS NECESSARY.
-- A ROBUST TELECOMMUNICATIONS INFRASTRUCTURE ENHANCES US
MILITARY DATA AND VOICE TRANSMISSION WHILE REDUCING
REQUIREMENTS FOR US MILITARY EQUIPMENT AND PERSONNEL THROUGH
A SUSTAINED AVAILABILITY OF LEASED TELECOMMUNICATIONS
CIRCUITS.
-- HOST NATION ASSURANCES FOR SAFE LINES OF COMMUNICATIONS
(AIRPORTS, SEA PORTS, RAILWAYS, HIGHWAYS, AIR ROUTES)
FACILITATE THE SURGE OF US MILITARY PERSONNEL AND EQUIPMENT
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PAGE 03 ROME 00353 07 OF 12 291713Z
DURING TIMES OF CRISIS OR CONFLICT THROUGH THREE SHARED
CIVILIAN/MILITARY AIRFIELDS WITH BASING OF US AIRCRAFT.
-- UNPARALLELED AUTHORIZATION OF A US/NATO MUNITIONS STORAGE
FACILITIES ON ITALIAN SOIL PERMITS INVALUABLE SOURCE FOR A
PRE-POSITIONED STAGING MUNITIONS CAPABILITY TO EXERCISES AND
CONTINGENCIES INCLUDING THE WAR ON TERRORISM.
-- CONVENIENT ACCESS TO MILITARY TRAINING AND EXERCISE RANGES
ALLOWS THE US MILITARY TO CONDUCT INDISPENSABLE LAND MANEUVER
EXERCISES, LIVE-FIRE TRAINING, PARACHUTING, AND AIR TRAINING
ACTIVITIES.
-- NO-COST LOAN OF 16 ITALIAN ARMY "CENTAURO" WHEELED ARMORED
VEHICLES TO THE US ARMY SIGNIFICANTLY AIDED THE
TRANSFORMATION OF NEW INTERIM BRIGADE COMBAT TEAMS TO DEVELOP
OPERATIONAL CONCEPTS, TACTICS AND PROCEDURES FOR A MOBILE GUN
SYSTEM.
-- ITALY HAS BEEN VERY RESPONSIVE TO SECURITY CONCERNS AS
EXEMPLIFIED WITH A 10-20 PERCENT INCREASE OF ARMED FORCES TO
SUPPLEMENT US AND CONTRACT GUARD PERSONNEL RESPONSIBLE FOR
PERIMETER SECURITY OF US/NATO-UTILIZED INSTALLATIONS.
-- PROVIDED ADDITIONAL VALUABLE LAND IN SUPPORT OF THE F-16
BEDDOWN AT AVIANO AIR BASE.
DEFENSE SPENDING:

33. (U) -- ITALIAN CONTRIBUTION TO BILATERAL AND MULTILATERAL
COOPERATIVE PROGRAMS FOR THE DEVELOPMENT OF NEW WEAPON
SYSTEMS HAS BEEN NOTHING SHORT OF OUTSTANDING. THEIR
PARTICIPATION REDUCES UNIT COSTS WHILE BOLSTERING A VITAL US
DEFENSE INDUSTRIAL BASE AS EXEMPLIFIED THROUGH THE JOINT
STRIKE FIGHTER PROGRAM (JSF),MEDIUM EXTENDED AIR DEFENSE
SYSTEM, MINI-INFORMATION DISTRIBUTION SYSTEM, F-16 FIGHTER
AIRCRAFT LEASE, LIGHTWEIGHT 155MM HOWITZER DEVELOPMENT, AND
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PAGE 04 ROME 00353 07 OF 12 291713Z
SEVERAL MISSILE UPGRADE PROGRAMS.
-- DIRECT PROCUREMENT OF US MANUFACTURED MAJOR DEFENSE
EQUIPMENT PROMOTES AMERICAN PRODUCTS AND INTEROPERABILITY
WHILE LENGTHENING AVAILABILITY OF PRODUCTION LINES AND
PRESERVING A US INDUSTRIAL BASE AS DEMONSTRATED THROUGH THE
PURCHASE OF 200 LOCKHEED-MARTIN JSF AIRCRAFT, FIVE GENERAL
ATOMICS PREDATOR UNMANNED ARIEL VEHICLES, AND LARGE-SCALE
PURCHASES OF FIVE TYPES OF RAYTHEON MISSILES.
-- ITALY AGGRESSIVELY PROCURES US-BASED TRAINING VALUED AT
OVER 60 MILLION DOLLARS PER YEAR IN ORDER TO TRAIN ITS
MILITARY PERSONNEL. THIS IMMENSE EXPENDITURE SUBSIDIZES
OPERATING COSTS AND HELPS SUSTAIN US MILITARY ACADEMIC
INSTITUTIONS.

ROLES AND MISSIONS:

34. (U) -- INVALUABLE PRODUCT SHARING OF ITALIAN MILITARY
INTELLIGENCE WITH US COUNTERPARTS CONSTITUTES A NOTEWORTHY
PORTION OF THE INTELLIGENCE COLLECTION AND ANALYSIS WORKLOAD
ESSENTIAL TO MAINTAINING FULL COVERAGE OF THE MEDITERRANEAN
REGION.

UNCLASSIFIED

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2003ROME00353 - Classification: UNCLASSIFIED