DNSA HADLEY MEETING WITH EUROPEAN COMMISSION

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 005334

SIPDIS

C O R R E C T E D C O P Y (ADDED SIGNER)

NSC FOR FRIED AND MCKIBBEN

E.O. 12958: DECL: 12/20/2014
TAGS: PREL XF EUN USEU BRUSSELS
SUBJECT: DNSA HADLEY MEETING WITH EUROPEAN COMMISSION
PRESIDENT MANUEL JOSE DURAO BARROSO, DECEMBER 2, 2004

Classified By: Political Minister Counselor Kyle Scott. Reason: 1.4 (B
)(D)

PARTICIPANTS:

US: DNSA Steven Hadley
Ambassador Schnabel
Elliott Abrams
Dan Fried
Paul Haenle
Mike McKinley, DCM
Kyle Scott (notetaker)

EC: Manuel Barroso, President of European Commission
Joao Vale de Almeida, Chief of Cabinet
Richard Wright, Director for North America, DG
External Relations
Fernando Adnresen Guimaraes, Member of Cabinet (US
Affairs)
Mrs. Francoise Le Bail, Chief Commission Spokesperson
Gunnar Wiegand, DG External Relations (US Affairs)


1. (C) Summary: Barroso said he looked forward to
cooperation with the U.S., and has been heartened by
President Bush, remarks of his intentions to reach out to
Europe in his second term. He pledged to work to ensure the
President,s visit in February is a success. Barroso,s
goal, to build a Europe that can be America,s counterpart --
but not a counterweight. Europeans want to put the
disagreements over Iraq behind them. Barroso urged seeking a
positive agenda. The two also discussed ways to move forward
on the Middle East peace process and reform in the Broader
Middle East, support for and timing of elections in Iraq, and
the way forward on Ukraine. DNSA Hadley emphasized the
strategic importance of the EU,s December 17 decision on
Turkey. End Summary.

Improving US-European Relations
--------------


2. (C) DNSA Hadley presented Barroso a letter from President
Bush expressing the President,s commitment to working
closely with the new Commission on deepening America,s
partnership with Europe. Barroso said he fully supported the
President,s view, had been heartened by the President,s
remarks about reaching out to Europe, and welcomed his Nova
Scotia speech on America,s commitment to positive
multilateral engagement.


3. (C) Hadley said the President,s remarks were sincere.
The President believes the US and Europe have an opportunity
to make progress on our common agenda, and that is why he
committed to an early trip to Europe. The President is
convinced that the US and Europe operate best in the world if
we act together; the trip offers an opportunity to strengthen
our joint approach to common challenges. Barroso said he
looks forward to the visit, and hoped the President would
find time to send a clear signal of America,s continuing
commitment to European integration. Meetings with NATO heads
of state/government and with EU heads of state/government
were important, but Barroso suggested a signal in favor of
the Commission -- the only European Community institution --
would be welcome. In so doing, he would be continuing the
tradition of US statesmen who have consistently supported
European integration.


4. (C) Barroso said there is a debate in Europe about whether
European institutions should be strengthened in order to
create a counterweight to US power in the world. Barroso
said he believes this is unwise. Europe should integrate to
become a valuable counterpart to the United States, not a
counterweight. The fact is that Europe and the US share the
same priorities: economic progress, reform in the Broader
Middle East, a solution to the Israel-Palestinian conflict,
commitment to non-proliferation and to counter terrorism, and
increasingly must also address the issue of a more assertive
Russia. The US and Europe have been working together on all
these issues, as they have so dramatically in recent days
over the crisis in Ukraine.


5. (C) Despite this cooperation, Barroso said there was a
need to create more confidence in US-European relations.
Public support is declining, largely as a consequence of the
cleavages caused by the debates over Iraq. This is not a
clear US vs. Europe issue, he noted, because European public
opinion has also been divided on what was the proper approach
on Iraq. There is broad agreement, however, that now is the
time to put these disagreements behind us. To do so, Barroso
suggested the President,s visit would be the ideal
opportunity to lay out a new, positive agenda. Hadley
supported this approach, noting that the President takes
comfort in having a friend like Barroso at the helm of the
European Commission.
Arab-Israeli Conflict:
--------------


6. (C) DNSA Hadley said the President believes there is an
enormous opportunity to make progress in the Middle East, and
wants to seize it. Elections of a new Palestinian President
will be the first key step. The US and Europe need to work
in tandem to support the elections process, but this will be
only the first step. The President is convinced there is no
"short-cut" to peace. After the elections, the new
Palestinian democratic leadership will have to develop
democratic institutions, improve control of the security
situation, and prove that the Palestinian Authority can
become a reliable partner for Israel in making peace before
moving forward to Final Status Talks.


7. (C) Barroso agreed that the opportunity was at hand, but
suggested there was a sense of urgency coming from the
region. Regional leaders, such as Jordan, are begging the
Commission to do something now. The sooner we start, Barroso
stated, the better. Barroso noted that there is a perception
in Europe, which he shares, that this unsolved issue is
fueling terrorism; if Europe and the West are not seen as
honest brokers in seeking a settlement, it offers Islamic
extremists more fertile ground for their activities. This
can already be seen in Europe,s Muslim community. In the
short run, we should strive to provide financial and
technical support to the Palestinians to make the elections a
success and give them the capacity to manage their
territories.

Broader Middle East:
--------------


8. (C) DNSA Hadley noted that, in addition to the Middle East
peace process, there was a broader strategic opportunity to
support reform in the Middle East. This reform should not be
forced or imposed from the outside, but we should be ready to
support the voices from inside the region calling for freedom
and democracy. If we can help improve the lives of average
citizens in this region, it will also make the US and Europe
more secure. He urged Barroso to look for common projects
that Europe and the US could support. Barroso pointed to the
EU Barcelona Process, which is a long-term, multi-dimensional
program that relies on Europe,s "soft power approach" to
support reform, push for human rights progress, and
consolidation of the rule of law. He admitted that it had
not been easy in this part of the world, but he shared the
President,s commitment to freedom. Europe also wants to
support this reform process, he vowed.

Iraq:
--------------


9. (C) DNSA Hadley said that whatever our past disagreements,
all now agree that it is important for Iraq to go well. The
consequences of success or failure are enormous for all. The
real question is how to ensure success. He noted that
although we have made some progress with Europe in moving
ahead, Europe does not seem to share our sense of urgency.
He asked for Barroso,s advice on how the current situation
could be improved to achieve more European support. Barroso
said that in his confirmation hearing before the European
Parliament, he had also stressed the need to forget the past
and work for the future on Iraq. This is vitally important
for the EU; if Turkey joins, Iraq will become the Union,s
immediate neighbor.


10. (C) Europeans, Barroso suggested, will do what they can,
but the nature of their contribution will differ from country
to country: some will provide troops, others will offer debt
forgiveness, or support for the UN,s security, or technical
and financial assistance. European leaders, he believes,
understand the need for a common agenda with the US on Iraq.


11. (C) In response to Barroso,s question about the election
date, DNSA Hadley said the President,s position is firm in
that the Iraqis should stick to the planned date of January30. Our experience
in Afghanistan showed us that calls to
delay don,t gain us anything. There is no reason to believe
that delaying the elections will improve the security
situation, and getting greater Iraqi commitment to running
their own affairs can have a positive impact on the situation
over time. The preparations are going forward, and the UN is
stepping up its activities in support. The Independent
Electoral Commission of Iraq is not calling for a delay. The
US is increasing its troop strength in Iraq during the
election period. In the end, he noted, it is the Iraqis who
will make the final call on whether or not to delay the
elections.
Ukraine:
--------------


12. (C) DNSA Hadley welcomed the cooperation between the US
and EU on the unfolding elections crisis in Ukraine, and
praised the active diplomacy of Solana and the Polish and
Lithuanian presidents in Kiev. The key focus should remain
on the democratic process; whatever the outcome of current
negotiations, it must reflect the will of the Ukrainian
people. Hadley cautioned Russia should not view this in the
context of US-EU versus Russia and that it will be important
to keep the door open so that Russia can find a way to walk
back from its current position. In the end, Russia must be
ready to accept a democratic outcome. He also emphasized
that if the US and EU,s diplomatic efforts yield a positive
outcome, we will both have a stake in ensuring the continued
successof Ukraine. This may require resources to support the
Ukrainian economy.


13. (C) Barroso noted that the European Council would face a
decision in the coming days about its Association Plan for
Ukraine as part of its larger European Neighborhood Program.
Given the uncertainties in Ukraine at the moment, the Council
will have to decide whether or not to approve the program for
Ukraine. He predicted they would agree to approve the
program, but make its implementation dependent on conditions
on the ground in Ukraine. If things turn out right, the
Action Plan will provide quite generous carrots to Kiev:
market access, technical assistance and development funds.
It also includes a policy on visa access to EU Member States
-- a key incentive to Ukraine, which has a mobile work force.
He pointed out that Ukrainians were now the largest foreign
community in his native Portugal. Thus, he said the EU had
real leverage with what it is prepared to offer, but said the
policy will be clear: the quality of Europe,s relations with
Ukraine will depend on the quality of democracy in the
country.

Turkey:
--------------


14. (C) DNSA Hadley noted that the US had taken a low-key
public approach on Turkey because we realize this is a very
sensitive issue for Europe. This quiet stance should not,
however, be mistaken for a change in the US position or lack
of interest in Europe,s decision on Turkish membership.
Turkey needs to see a European vocation to continue on its
reform track. He emphasized that Turkey had made
considerable progress in meeting EU requirements for
membership and encouraged Barroso to ensure the bar is not
raised for Turkey at the late stage. Barroso responded that
the Commission,s report clearly supports beginning accession
negotiations with Turkey. He believes it will be approved on
December 17. There are serious domestic problems in some
member states, driven not only by xenophobia, but also by a
strain of Euro-federalists who believe Turkish membership
would change the very nature of Europe -- making it too big,
too diverse, and including a country in which "too much of it
is not really in Europe." Unlike previous enlargement
debates, which were conducted mainly among European elites,
the decision on Turkey is hotly debated by the European
man-on-the-street. The Commission favors Turkish accession;
Barroso hoped a positive signal would emerge on December 17.
SCHNABEL