FM FRATTINI INSISTS IGC SECURITY ARCHITECTURES ARE

S E C R E T ROME 005093

SIPDIS


DEPT FOR EUR/ERA, EUR/RPM, EUR/WE

E.O. 12958: DECL: 11/10/2013
TAGS: PREL IT EUN ESDP NATO
SUBJECT: FM FRATTINI INSISTS IGC SECURITY ARCHITECTURES ARE
NO THREAT TO TRANSATLANTIC RELATIONS; PREDICTS CONSTITUTION
WILL BE FINISHED UNDER ITALIAN PRESIDENCY

REF: STATE 310984

Classified By: DCM EMIL SKODON. REASON: 1.5 (B)(D).


1. (S) SUMMARY: Italian FM Frattini reiterated to Ambassador
Sembler that "structured cooperation" would be inclusive
(open to all 25 EU members) and implemented in coordination
with NATO. He noted that an "encouraging statement" on
European security initiatives from Secretary Powell would
help him to counteract the view put forward by certain of
Italy's European partners that the US is opposed to Europe
strengthening itself under any conditions. Despite the
considerable amount of work remaining on the constitution,
Frattini is confident the details can be ironed out and
agreed to by the end of the Italian Presidency. Italy is
prepared to increase its financial contributions for
elections in Afghanistan. Frattini confirmed that Italy "has
stopped, and will keep stopped" deliveries of Fast Boats to
Iran. The Ambassador reiterated to Frattini our concerns
over the negative impact restrictions on the import of
products employing biotechnology have on trade and overall
bilateral relations. End Summary


2. (S) On November 10, FM Franco Frattini, accompanied by
Chief of Cabinet Cesare Ragaglini and Political Director
Giancarlo Aragona, met at our request with Ambassador Sembler
to review the state of play in the
Constitution/Intergovernmental Conference process, especially
as it relates to "structured cooperation" in European defense
architectures. The Ambassador was accompanied by DCM Emil
Skodon and Poloff (notetaker). We also raised a number of
other US-EU and bilateral issues, including Afghanistan,
Galileo, Fast Boat sales to Iran and biotechnology.


3. (C) Frattini insisted that the current debate in the IGC
on European security architectures was a means to forming
closer cooperation with NATO. This is the view PM Berlusconi
put forward at the October 16 European Council meeting and
Frattini himself has emphasized with his fellow foreign
ministers. Starting with Berlin-plus as a base, "structured
cooperation" would be inclusive and implemented in full
coordination with NATO. The article in the draft
constitution dealing with the mutual defense clause (40.7)
will also be revised to address US concerns that it not
undermine NATO treaty article 5 commitments.


4. (C) Frattini said that the November 18 US-EU Troika in
Brussels would be a good opportunity to clear up
misconceptions held by the US on structured cooperation. He
noted that an "encouraging statement" on European security
initiatives from Secretary Powell would help him to
counteract the view put forward by certain of Italy's
European partners that the US has no confidence in Europe and
is simply opposed to Europe strengthening itself under any
conditions. Otherwise, continued Frattini, the Italian
Presidency could find itself increasingly isolated in
defending US equities in the IGC.


5. (C) DCM noted that in order for Secretary Powell to
deliver a positive statement, we would need to have a
clearer, more detailed understanding of just where the IGC
would take ESDP. Aragona promised to get this information to
Washington in time to feed into preparations for the
Secretary's trip to Brussels, possibly starting with a phone

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call to EUR PDAS Ries later on November 10. Aragona
explained that structured cooperation was simply a method
through which the EU could establish criteria for countries
to join in defense planning and operations. These criteria
would be agreed at 25, and the structure would be open to all
25 member states, as long as they qualified and wanted to
join.


6. (C) Frattini told the Ambassador that the constitution was
the most important challenge currently facing the EU. The
organization is difficult to manage at 15; at 25 it will be
impossible using current structures. For Frattini the main
direction of the IGC should be towards creating a Europe that
is able to play a role on the international stage, forging
closer ties with the US, and implementing "economic and
political cohesion" within Europe.


7. (C) This is a difficult moment in IGC negotiations,
admitted Frattini. The IGC must seek compromises to balance
the positions of various camps vying for the best possible
deal from the constitution; for instance, balancing the
desires of smaller countries seeking one commissioner per
Member State with the need to revise Nice treaty structures
which give Spain near equal voting power to that of Italy,
though it has only about one-half the population. One
possibility under study is to revise numbers in the European
Parliament to more accurately reflect population figures.
Frattini is confident the details can be ironed out and
agreed to by the end of the Italian Presidency. The
alternative would be an impossible situation in which the
Irish Presidency had only a few weeks to close the process
prior to enlargement. Frattini said he would table a
compromise proposal in about 3 weeks (presumably just after
the Naples FM IGC conclave November 28-29). Then, said
Frattini, the Member States will have to decide.

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Afghanistan
--------------


8. (C) Frattini told the Ambassador that he had spoken to
Secretary Powell a few days ago and underlined that Italy was

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prepared to increase its financial contributions for
elections, pledging 5 million of the total 25 million Euro
promise from the EU. He said that Italy might be prepared to
allocate an additional 5 million Euros depending on the
response from its EU partners. Germany and the "northern
countries" support increased contributions, Frattini
continued, but France was being difficult, citing the
deteriorating security situation and increased drug
trafficking as reasons to withhold aid.

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Galileo
--------------


9. (C) In response to the Ambassador's comments on this
issue, Aragona disagreed with our view that a strong
political push was needed now to close the issue. He said
more work was required to develop a strong technical base, as
a prerequisite for dialogue at a political level. Regarding
US concerns that the December EU Transport Council might take
decisions without fully considering foreign policy and
security ramifications, Frattini promised to speak to Italy's
Transport Minister (Lunardi) about US views and suggest that
the technical process not get too far out ahead of the
political.

--------------
Iran Fast Boats
--------------


10. (S) Frattini confirmed that through an "informal
arrangement" with the manufacturer, Italy "has stopped, and
will keep stopped" deliveries of Fast Boats to Iran.

--------------
Biotech
--------------


11. (C) The Ambassador closed the meeting by touching on
agricultural biotechnology, the one truly contentious issue
in US-Italian bilateral relations. He highlighted US
concerns over a rumored draft decree to severely restrict, if
not ban, biotech cultivation from Italian regions in which
"traditional products" are grown (see septel). Since every
region in Italy has products which fall into that category,
the decree would effectively exclude future sales of US
biotech seeds to Italy. Biotech restrictions were a serious
issue which the Ambassador noted he has raised with PM
Berlusconi. Sales of US produced seeds to Italy have fallen
from USD 70 million to USD 9 million over the past four
years. The US Congress, Speaker Hastert in particular, has
taken note of this situation and the damage it is doing to
agricultural exports from the US to Italy. The Ambassador
also noted that it would not help the bilateral trade

imbalance should the decree become law. Frattini said that
he was aware of US biotech concerns, as is PM Berlusconi, and
that Agriculture Minister Alemanno favored taking a harder
line on biotech than EU regulations required. Frattini's
personal view is that he is completely in favor of
biotechnology products, especially in light of what they can
possibly do to improve the lot of poor nations.
SEMBLER


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2003ROME05093 - Classification: SECRET