MADRID DONORS' CONFERENCE: ITALY CONSIDERING 100

C O N F I D E N T I A L ROME 004764 SIPDIS STATE ALSO FOR E, EUR PDAS RIES, EB/CBA AND EB/IFD E.O. 12958: DECL: 10/17/2008 TAGS: EAID EFIN IT IZ PREL EUN SUBJECT: MADRID DONORS' CONFERENCE: ITALY CONSIDERING 100 MILLION EURO PLEDGE REF: A. STATE 294287 ¶B. SECSTATE 287995 ¶C. ROME 4661 ¶D. ROME 4665 Classified By: Acting Deputy Chief of Mission Scott Kilner for reasons 1.5 (B)(D). ¶1. (C) Summary. We have been told on a confidential basis that Prime Minister Berlusconi has proposed to his cabinet a Madrid Conference pledge of 100 million euros for 2004. A final decision, however, has not been taken yet. The Italian delegation to Madrid will be led by FM Frattini and dominated by Foreign Ministry representatives. At this point, no senior Finance Ministry official will join the delegation. End Summary. SECRETARY'S ORAL MESSAGE SIPDIS -------------- ¶2. (C) With Foreign Minister Frattini still in Brussels and Ambassador Sembler outside of Rome, Acting DCM delivered the Secretary's oral message on the Madrid Donors' Conference to SIPDIS Frattini's Acting Chief of Cabinet, Michele Baiano, the morning of October 17 (leaving a written text for the minister). A/DCM stressed that adoption of UNSCR 1511 should serve as a catalyst for us all to make the Madrid Conference an historic success. We appreciated that FM Frattini would head the Italian delegation. We looked forward to a generous and robust Italian financial contribution. ¶3. (C) Baiano promised to convey the Secretary's message to Frattini immediately upon his return to Rome. Recalling Frattini's latest telephone discussion of the issue with the Secretary, he said the Foreign Minister was very focused on SIPDIS the Madrid conference. Baiano agreed that the U.N. Resolution was a most welcome development, which would undoubtedly add momentum to the Madrid Conference. He was hopeful that the resolution would spur more European governments to send their respective foreign ministers to Madrid. ¶4. (C) In response to A/DCM's question regarding prospects for an Italian pledge, Baiano (please strictly protect) confided that Prime Minister Berlusconi has proposed to his cabinet a pledge of 100 million euros for 2004. That amount is currently under discussion and no final action has been taken, he stressed. Nevertheless, Baiano appeared confident that the final figure would not be too far from that amount. He had no information regarding possible outyear commitments. ITALIAN GOVERNMENT AND PRIVATE SECTOR REPRESENTATION -------------- -------------- ¶5. (U) Iraq Task Force Deputy Director Luigi Maccotta told EconOff on October 15 that Italy's delegation to the Madrid Conference will include the following Foreign Ministry representation: (a) Foreign Minister Frattini; (b) Cesare Ragaglini, Frattini's Chief of Staff; (c) Ricardo Sessa, DG for the Middle East and Director of the Iraq Task Force; (d) Michele Valensise, MFA Spokesman and Director of the Press Office; (e) Dr. Siciniano, an Iraq expert from the MFA's Directorate for Development Assistance; and (f) Maccotta himself. At this time, no Finance Ministry representation is anticipated. ¶6. (U) With respect to Italian participation in the private sector meeting, Dr. Laura Travaglini, Middle East Area Manager for Italy's largest employers' association (Confindustria),gave EconOff an updated and expanded list of Italian participants (Ref D ). The new delegation will include thirteen people total: seven from industry associations, two from Italian Government ministries, and four from the private sector. The names and institutional affiliations of the delegates are as follows: (a) Laura Travaglini, Confindustria; (b) Fabio Pizzino, Assoc. of Chambers of Commerce (Unioncamere); (c) Giacomo De Gennaro, Foreign Trade Commission (ICE); (d) Cecilia Satta, National Building Construction Industry Assoc. (ANCE); (e) Giuliano Ceradelli, Assoc. of Engineering Organizations (OICE); (f) Dario Cappelletti, National Electronic Industry Association (ANIE); (g) National Plant Construction Industry Assoc.(ASSISTAL) rep TBD; (h) Tullio Di Pietro,Industry Ministry; (i) Mario Fugazzola, Foreign Ministry; (j) Mario Bonechi, Techint, SpA.; (k) Francesco Nanotti, Telecom Italia; (l) Annalisa Biondi, Finmeccanica SpA; (m) Mario Fugazzola, Office Director in the MFA's Bureau of Multilateral Economic and Financial Cooperation. ¶7. (C) Comment: Embassy has continued to press the GOI for a generous pledge in Madrid at every opportunity (Ref C). At an October 15 ceremony to honor Italian soldiers returning from Afghanistan, Amb. Sembler spoke to Prime Minister Berlusconi, reminding him of conversations with the President at Crawford regarding Iraq; the PM responded that he had "received our message" and that he would do what he could. At a small October 16 dinner for visiting EXIM Bank President Merrill, the Ambassador again drove home the importance of the Madrid Conference with MFA Director General for Economic Affairs Magliano. Acting DCM phoned Prime Ministry Undersecretary Letta (Berlusconi's closest advisor) on October 17 to ensure that Letta was aware of British and Japanese pledge announcements; Letta confirmed that no final GOI decision on a pledge has been made yet. A/DCM also phoned Finance Minister Tremonti's Diplomatic Advisor, Carlo Baldocci, to again make the case for Madrid. Baldocci confirmed that Tremonti was not/not planning to attend, but undertook to make sure that Tremonti was fully aware that Treasury Secretary Snow would be there. End Comment. SEMBLER NNNN 2003ROME04764 - Classification: CONFIDENTIAL