IRAQ DONORS PLEDGES: AMBASSADOR PRESSES ITALIAN

C O N F I D E N T I A L ROME 004661

SIPDIS


E.O. 12958: DECL: 10/10/2013
TAGS: EAID IT IZ PREL EUN
SUBJECT: IRAQ DONORS PLEDGES: AMBASSADOR PRESSES ITALIAN
PRIME MINISTRY

REF: STATE 286648

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


1. (C) AMBASSADOR SEMBLER MET WITH PRIME MINISTER
BERLUSCONI'S CLOSEST ADVISOR, UNDERSECRETARY IN THE PM'S
OFFICE GIANNI LETTA, FOR 30 MINUTES ON OCTOBER 9 TO URGE --
IN THE STRONGEST TERMS -- THAT THE ITALIAN GOVERNMENT MAKE
THE MOST GENEROUS PLEDGE POSSIBLE AT THE UPCOMING MADRID
DONORS' CONFERENCE. THE AMBASSADOR (ACCOMPANIED BY DCM AND
ECMIN),TOLD LETTA THAT THE UNITED STATES GOVERNMENT WAS
LOOKING TO ITALY ONCE AGAIN FOR LEADERSHIP, JUST AS ITALY HAS
LED SO MANY TIMES IN THE PAST. NOTING THAT IRAQ'S NEEDS HAVE
BEEN ASSESSED AT $55 BILLION (COMBINED WORLD BANK/IMF/UN AND
CPA ESTIMATES),THE AMBASSADOR SAID IT WAS ESSENTIAL THAT,
NOT JUST THE EU AS A WHOLE, BUT EVERY INDIVIDUAL MEMBER
STATE, MAKE THE MOST GENEROUS PLEDGE. BEYOND A HARD
COMMITMENT FOR 2004, WE NEEDED INDICATIVE PLEDGES FOR 2005-7.
IRAQ IS A CRITICAL COUNTRY, THE AMBASSADOR STRESSED, WHOSE
RECONSTRUCTION AND STABILITY IS EVERY BIT AS ESSENTIAL TO
EUROPE AS TO THE U.S.


2. (C) LETTA RESPONDED THAT THE AMBASSADOR'S MESSAGE -- AND
THE HIGH IMPORTANCE OF THE MADRID CONFERENCE TO THE UNITES
STATES -- WAS CRYSTAL CLEAR AND VERY WELL TIMED. THE
CONFERENCE HAD OF COURSE BEEN DISCUSSED WITHIN THE GOI, BUT
NO FIRM DECISIONS HAD BEEN TAKEN. A CABINET LEVEL MEETING
WOULD CONSIDER THE MATTER THE FOLLOWING DAY (FRIDAY, OCTOBER
10),AND LETTA PROMISED TO CONVEY THE UNITED STATES' VIEWS
DIRECTLY TO PM BERLUSCONI IN ADVANCE OF THAT MEETING.


3. (C) THE AMBASSADOR THANKED LETTA. IN CONCLUDING, HE
RECALLED THAT PRESIDENT BUSH HAD TOLD PM BERLUSCONI AT
CRAWFORD THAT, DESPITE THE UNITED STATES' OWN BUDGETARY
DIFFICULTIES, WE WOULD PRESS FORWARD WITH A MAJOR FINANCIAL
COMMITMENT TO IRAQ. WE HOPED THAT ITALY WOULD DO THE SAME.


4. (C) IN SEPARATE MEETINGS, ECMIN ALSO RAISED REFTEL
DEMARCHE AND AMB'S MEETING WITH LETTA, WITH MFA DIRECTOR
GENERAL FOR THE MIDDLE EAST RICARDO SESSA AND DG FOR ECONOMIC
AFFAIRS GIANDOMENICO MAGLIANO. SESSA NOTED THAT SECRETARY
POWELL AND FM FRATTINI HAD DISCUSSED THE MADRID CONFERENCE IN
THEIR OCTOBER 9 PHONE CALL. SESSA DESCRIBE THE US AND ITALY
AS "ON THE SAME PAGE." THE MFA WOULD NOW HAVE TO SEE HOW
MUCH MONEY IT COULD GET OUT OF THE ITALIAN FINANCE MINISTRY.
MAGLIANO SAID THAT HIS DIRECTORATE WAS FOCUSED PRIMARILY ON
THE PRIVATE SECTOR MEETINGS IN MADRID, WHICH HE DESCRIBED AS
A VERY POSITIVE STEP FORWARD, EVEN IF HE WISHED THAT MEETING
COULD BE LARGER AND INCLUDE MORE COMPANIES. MAGLIANO
STRESSED THAT PRIVATE SECTOR INVOLVEMENT WAS CRITICAL NOT
ONLY FOR THE LONGER TERM DEVELOPMENT OF IRAQ, BUT BECAUSE THE
PROSPECT OF "COMMERCIAL PAYBACK" DOWN THE ROAD WOULD MAKE IT
POLITICALLY EASIER FOR GOVERNMENTS TO EXPLAIN LARGE DONATIONS
IN MADRID TO DOMESTIC CONSTITUENCIES.
SEMBLER

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2003ROME04661 - Classification: CONFIDENTIAL