ITALY'S EU PRESIDENCY: CYPRUS DISCUSSIONS WITH SCC

C O N F I D E N T I A L ROME 004150 SIPDIS DEPT FOR EUR/WE, EUR/SE, EUR/ERA E.O. 12958: DECL: 09/11/2013 TAGS: PREL CY TU GR IT EUN SUBJECT: ITALY'S EU PRESIDENCY: CYPRUS DISCUSSIONS WITH SCC WESTON CLASSIFIED BY: POLITICAL MINISTER COUNSELOR TOM COUNTRYMAN. REASONS: 1.5 (B) AND (D). ¶1. (C) SUMMARY: ON SEPTEMBER 8, SPECIAL COORDINATOR FOR CYPRUS TOM WESTON DISCUSSED UPCOMING ELECTIONS IN NORTHERN CYPRUS AND TURKEY'S ROLE IN THE PEACE PROCESS, INCLUDING THE UNHELPFUL "CUSTOMS UNION AGREEMENT" SIGNED RECENTLY WITH NORTHERN CYPRUS. IN SEPARATE MEETINGS, PRIME MINISTER BERLUSCONI'S SENIOR DIPLOMATIC ADVISOR GIOVANNI CASTELLANETA AND THE MFA'S DEPUTY DIRECTOR GENERAL FOR EUROPEAN AFFAIRS FRANCESCO BASCONE TOLD WESTON THAT ITALY FULLY SUPPORTS US INITIATIVES TO CONVINCE ALL PARTIES THAT THE ANNAN PLAN WAS THE ONLY WAY FORWARD IF A SOLUTION TO THE CONFLICT WAS TO BE IMPLEMENTED PRIOR TO CYPRUS' MAY 2004 EU ACCESSION. END SUMMARY. ¶2. (C) SCC WESTON LAID OUT USG VIEWS ON THE STATE OF PLAY AND THE WAY AHEAD. THERE WERE MANY STICKY SITUATIONS WHICH COULD ARISE IF CYPRUS ACCEDES TO THE EU WITHOUT THE ANNAN PLAN IN PLACE. THE OBVIOUS ONE IS A DIVIDED NATION IN THE EU. THERE IS ALSO THE FACT THAT TURKEY'S HOPES TO JOIN THE UNION WILL IN PART REST WITH A COUNTRY IT DOES NOT RECOGNIZE. TURKEY'S RECENT "CUSTOMS UNION AGREEMENT" WITH THE NORTH DOES NOT HELP, AND WE HOPE THAT ITALY, AS EU PRESIDENT, WOULD MAKE THAT CLEAR TO ERDOGAN. WE HAD ALSO URGED THE EUROPEAN COMMISSION IN BRUSSELS TO MAKE ITS POSITION ON THE "CUSTOMS UNION" CLEAR TO THE TURKS EARLY AND FIRMLY. THIS MESSAGE WOULD BE NEGATIVE, AND EARLY EXPRESSION OF IT COULD HEAD OFF FURTHER SHENANIGANS IN SUPPORT OF DENKTASH. ¶3. (C) CASTELLANETA SAID THAT BERLUSCONI HAD EXPRESSED CONCERN OVER THE DEAL TO ERDOGAN OVER THE WEEKEND, EMPHASIZING THAT IT WAS IN VIOLATION OF TURKISH AGREEMENTS WITH THE EU. CASTELLANETA ALSO HAD A FEW INTERESTING OBSERVATIONS BASED ON THE PMS' TALK. ERDOGAN HAD BEEN CLEAR THAT HE COULDN'T BE FLEXIBLE AND MOVE MUCH ON CYPRUS RIGHT NOW, BUT THAT AFTER DEALING WITH THE QUESTION OF TURKISH TROOP DEPLOYMENT TO IRAQ, HE MIGHT BE ABLE TO APPLY MORE PRESSURE ON DENKTASH. CASTELLANETA SAID THAT THE ITALIANS WOULD THUS FOCUS ON ERDOGAN, AND CYPRUS PRESIDENT PAPADOPOULOS AT THE UNGA AND INTERGOVERNMENTAL CONFERENCE OPENING ON OCTOBER 4, AS THEIR "TARGETS" IN WORKING THE CYPRUS ISSUE. ¶4. (C) BASCONE SAID THAT ITALY UNDERSTANDS THE IMPORTANCE OF DECEMBER'S ELECTIONS IN NORTHERN CYPRUS AND WANTED TO COLLABORATE AS NEEDED IN THIS REGARD. HE AGREED WITH WESTON'S ASSESSMENT THAT DENKTASH COULD NOT BE ALLOWED TO STEAL THE ELECTIONS, BUT WAS SKEPTICAL THAT THE OPPOSITION HAD A GOOD CHANCE FOR VICTORY SINCE SO MANY IN NORTHERN CYPRUS DEPENDED ON THE CURRENT REGIME FOR JOBS AND ECONOMIC ASSISTANCE. WHEN WESTON LAID OUT THE USG'S THREE-PRONGED APPROACH TO HELPING ENSURE CLEAN ELECTIONS - PRIVATE DIPLOMACY WITH ANKARA, PRESS COVERAGE OF THE ELECTORAL SITUATION, AND A EUROPEAN-LED ELECTIONS MONITORING EFFORT - CASTELLANETA SUGGESTED THAT A FEW ITALIAN MPS COULD TRAVEL TO CYPRUS ON A PERSONAL BASIS TO EXAMINE THE PRE-ELECTION SITUATION. HE ALSO TOOK ON BOARD WESTON'S POINT THAT HIGHLIGHTING INCIDENTS OF CONCERN IN THE NORTH FOR THE EUROPEAN PRESS WAS IMPORTANT. NOTE: SCC WESTON DID JUST THAT DURING A PRODUCTIVE PRESS BRIEFING SUBSEQUENT TO HIS MEETINGS WITH CASTELLANETA AND BASCONE. ¶5. (U) SCC WESTON HAS CLEARED THIS CABLE. SEMBLER NNNN 2003ROME04150 - Classification: CONFIDENTIAL