SALE OF FAST BOATS TO IRAN

S E C R E T ROME 005717

SIPDIS


NOFORN

STATE FOR EUR/WE, EUR/PRA, NP/ECNP, INR/SPM, NEA/NGA,
PM/RSAT

E.O. 12958: DECL: 12/24/2013
TAGS: PARM ETTC PREL EIND IR IT EXPORT CONTROLS
SUBJECT: SALE OF FAST BOATS TO IRAN

REF: A. ROME 5680


B. ROME 5552

C. STATE 338477

D. ROME 5202 AND PREVIOUS

CLASSIFIED BY: ACTING ECONOMIC MINISTER KATHLEEN REDDY FOR REASONS 1.5
(A) (B) AND 1.6X6.


1. (S) FURTHER TO REF A, GABRIELE CHECCHIA, DIPLOMATIC
ADVISOR TO PRODUCTIVE ACTIVITIES (INDUSTRY) MINISTER ANTONIO
MARZANO, CALLED A/ECMIN TO REPORT THAT MINISTER MARZANO HAD
SPOKEN WITH FOREIGN MINISTER FRATTINI ON THE MARGINS OF THE
DECEMBER 23 COUNCIL OF MINISTERS' MEETING REGARDING THE
EXPORT FROM ITALY OF FB DESIGN FAST BOATS TO IRAN.


2. (S) CHECCHIA REPORTED WHAT EMBASSY ALREADY KNEW FROM
OTHER CHANNELS, THAT TWO BOATS HAD DEPARTED ITALY "A FEW
WEEKS AGO." HE SAID THE GOI WAS TRYING TO HALT THE VENICE
DEPARTURE OF A THIRD BOAT, BUT THAT ONLY FM FRATININI COULD
DO THIS. A/ECMIN THEN CALLED GIANCARLO CURCIO, CHIEF OF
STAFF TO MFA DIRECTOR GENERAL FOR ECONOMIC AFFAIRS MAGLIANO,
TO FOLLOW UP. CURCIO SAID THE FM IN FACT DID NOT CURRENTLY
HAVE AUTHORITY TO STOP FURTHER SHIPMENTS, AND THAT HE WOULD
CALL CHECCHIA TO CLARIFY THAT POINT.


3. (S) CHECCHIA LATER CALLED A/ECMIN TO SAY THAT THE FM WILL
TRANSMIT A LETTER TO THE FINANCE MINISTRY "IN THE NEXT DAYS"
TO SEE IF THE GOI CAN BUY THE BOATS THAT HAVE NOT YET LEFT
ITALY. (NOTE: WE UNDERSTAND IRAN HAD ORDERED FOUR FB DESIGN
FAST BOATS.) CHECCHIA CONCEDED, HOWEVER, THAT THIS MAY NOT
STOP THE VENICE SHIPMENT OF THE THIRD BOAT. HE REITERATED
THAT THE GOI COULD NOT SEIZE THE BOATS BECAUSE THE FIRM MIGHT
TAKE LEGAL ACTION AGAINST THE GOVERNMENT SINCE IT HAD NO
LEGAL AUTHORITY TO SEIZE THEM.


4. (S) CHECCHIA ALSO SAID PRODUCTIVE ACTIVITIES MINISTER
MARZANO WILL CALL A MEETING BY YEAR-END TO DISCUSS THE LEGAL
OPTIONS AVAILABLE TO THE GOI. CHECCHIA DID NOT THINK,
HOWEVER, THAT ALL MINISTRIES WOULD SUPPORT A DECREE LAW,
BECAUSE FORBIDDING EXPORT OF THESE BOATS HAS ECONOMIC
IMPLICATIONS FOR THE FIRM(S) INVOLVED AND FOR PERSONS
EMPLOYED BY THOSE FIRMS. CHECCHIA SAID HE WOULD LIKE TO
DISCUSS WITH US HOW TO ADDRESS THE ECONOMIC ASPECTS OF
DENYING EXPORT RIGHTS TO THESE FIRMS.


5. (S) COMMENT. WE INTERPRET CHECCHIA'S LAST POINT THAT THE
GOI WANTED TO DISCUSS WITH US "THE ECONOMIC ASPECTS OF
DENYING EXPORT RIGHTS TO THESE FIRMS" AS A SUGGESTION THAT
THE USG BUY THE BOATS OURSELVES TO PREVENT THEM GOING TO
IRAN. THIS SUGGESTION AND THE GOI'S INTER-AGENCY CONFUSION
REFLECT THE DISARRAY IN WHICH THE GOI FINDS ITSELF AS IT
SEARCHES FOR A MEANS TO BLOCK SHIPMENTS WHICH ARE NOT BARRED
BY ANY ITALIAN LAW. WE ARE NOT CONFIDENT THAT THE GOI WILL
BE ABLE TO DRAFT, APPROVE, AND IMPLEMENT A NEW DECREE LAW IN
TIME TO STOP THE SHIPMENT OF THE THIRD FB BOAT.
NEVERTHELESS, WE BELIEVE WE SHOULD CONTINUE PUSHING THE GOI
IN THAT DIRECTION, IF ONLY TO SET A PRECEDENT AND CREATE A
LEGAL MECHANISM WHICH CAN BE EMPLOYED IN THE FUTURE. END
COMMENT.

SEMBLER

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2003ROME05717 - Classification: SECRET