ITALY WILL BE GENEROUS TO CYPRUS; NO FIGURE READY

C O N F I D E N T I A L ROME 001423

SIPDIS


USEU FOR AID LERNER

E.O. 12958: DECL: 04/08/2014
TAGS: PREL PHUM IT CY EUN
SUBJECT: ITALY WILL BE GENEROUS TO CYPRUS; NO FIGURE READY
FOR DONORS' CONFERENCE

REF: STATE 76346

CLASSIFIED BY: POL MINISTER COUNSELOR TOM COUNTRYMAN. REASON: 1.5 (B)(
D).


1. (U) MFA'S TURKEY/GREECE/CYPRUS OFFICE DIRECTOR GIOVANNI
RICCIULI TOLD POLOFF THAT DEPUTY DIRECTOR-GENERAL FOR
EUROPEAN AFFAIRS FRANCESCO BASCONE WILL HEAD THE ITALIAN
DELEGATION TO THE APRIL 15 CYPRUS PRE-DONORS'CONFERENCE IN
BRUSSELS.


2. (C) RICCIULI EXPRESSED APPRECIATION FOR THE US PLEDGE
OUTLINED IN REFTEL, AND PROMISED THAT ITALY WOULD ALSO MAKE A
GENEROUS CONTRIBUTION TO THE INTERNATIONAL COMMUNITY'S
EFFORTS TO ENSURE THE SUCCESS OF THE COMPREHENSIVE SETTLEMENT
PLAN. ITALY WOULD NOT, HOWEVER, BE READY TO TABLE A PRECISE
FIGURE FOR ITS DONATION ON APRIL 15. ITALY WANTS TO USE THE
PRE-DONORS' CONFERENCE TO DISCUSS SPECIFIC PROPOSALS FOR
CHANNELING FUNDS BEFORE DECIDING HOW MUCH OF ITS "SCARCE"
INTERNATIONAL AID BUDGET IT WILL ALLOCATE TO CYPRUS.


3. (C) ITALY IS ALSO WORKING HARD, INTERNALLY AND WITH ITS
EU PARTNERS, ON METHODS TO CONVINCE GREEK CYPRIOTS THAT IT IS
IN THEIR INTERESTS TO VOTE "YES" ON THE SETTLEMENT PLAN ON
APRIL 24. RICCIULI CONCEDED THAT SINCE ACCESSION IS CERTAIN,
AND ALL SIDES KNOW IT, IT IS DIFFICULT TO USE EU MEMBERSHIP
AS AN INCENTIVE. THERE ARE HOWEVER, OTHER TOOLS AT THE EU'S
DISPOSAL. DEVELOPMENT FUNDS THAT THE GREEK CYPRIOTS ARE
EXPECTING COULD BE CONDITIONED ON PROGRESS TOWARDS
UNIFICATION - NOT JUST A "YES" VOTE, BUT TO REAL POLITICAL
WILL IN NICOSIA TO ADHERE TO THE TERRITORY TRANSFER SCHEDULE
AND OTHER STABILIZATION COMPONENTS OF THE SETTLEMENT PLAN.
ANOTHER OPTION UNDER DISCUSSION AT THE MFA IS A SERIES OF
PUBLIC STATEMENTS BY THE ITALIAN GOVERNMENT, CAREFULLY
CRAFTED SO THAT NO INDIVIDUAL GROUP FEELS TARGETED, OUTLINING
THE BENEFITS OF A "YES" VOTE AND THE LONG TERM COSTS,
POLITICAL AND ECONOMIC, OF THE REFERENDUM'S DEFEAT ON EITHER
SIDE OF THE GREEN LINE. RICCIULI ASKED THAT WE KEEP THIS
LAST OPTION CLOSE-HOLD UNTIL APPROVED BY SENIOR MFA OFFICIALS.

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2004ROME01423 - Classification: CONFIDENTIAL