ITALY WELCOMES PROPOSED DEFENSE EXPORT CONTROLS

UNCLAS ROME 000150 SIPDIS STATE FOR PM/DDTC AND PM/DTCP E.O. 12958: N/A TAGS: PARM PREL ETTC IT SUBJECT: ITALY WELCOMES PROPOSED DEFENSE EXPORT CONTROLS DIALOGUE REF: A. 03 SECSTATE 348141 ¶B. 03 ROME 3842 ¶1. THIS IS AN ACTION REQUEST. PLEASE SEE PARAGRAPHS 3 AND 4. ¶2. ECONOFF DELIVERED REF. A INVITATION FROM PM DAS ROBERT MAGGI TO DIEGO UNGARO, DIRECTOR OF THE MFA'S OFFICE OF DEFENSE INDUSTRY AND SENSITIVE TECHNOLOGY TRANSFERS, ON JANUARY 8. UNGARO WAS GENERALLY POSITIVE ABOUT THE PROPOSED DIALOGUE ON DEFENSE EXPORT CONTROLS AND SAID THAT HE PLANS TO ATTEND THE MARCH 23 MEETING. HE NOTED THAT THE PROPOSED DIALOGUE DOVETAILS WITH THE PUSH MADE BY ITALY DURING ITS 2001 G-8 PRESIDENCY TO INCREASE COORDINATION ON DEFENSE EXPORT CONTROLS. IN THAT REGARD, UNGARO ADDED THAT, AS PART OF IMPLEMENTING A "FORMAL FRAMEWORK FOR FUTURE DIALOGUE," PARTICIPANTS MAY WISH TO CONSIDER IMPLEMENTATION OF A MORE FORMAL MEANS OF PARTNER COUNTRY NOTIFICATIONS OF LICENSE DENIALS. IN TERMS OF INDUSTRIAL TRENDS, UNGARO SUGGESTED THERE WILL BE INTEREST BY ITALY (AND OTHERS) IN DISCUSSING BUY AMERICA RESTRICTIONS AS THEY APPLY TO DEFENSE PROCUREMENT (THOUGH HE ACKNOWLEDGED THE USG'S SUCCESSFUL EFFORTS IN 2003 TO BLOCK A CONGRESSIONAL PROPOSAL THAT WOULD HAVE TIGHTENED SUCH RESTRICTIONS). HE NOTED PARTICULAR INTEREST IN WHETHER THE FRENCH AND GERMAN GOVERNMENTS HAD AGREED TO PARTICIPATE IN THE MARCH 23 MEETING. ¶3. ACTION REQUESTED: UNGARO WOULD WELCOME FURTHER CLARIFICATION REGARDING THE INVITATION, INCLUDING WHETHER THE U.S. PROPOSES TO DISCUSS SOLELY ARMAMENTS EXPORTS, OR WISHES ALSO TO INCLUDE A DISCUSSION OF DUAL-USE EXPORT CONTROLS. ¶4. ADDITIONAL ACTION REQUESTED: UNGARO ALSO EMPHASIZED THE GOI'S CONTINUED STRONG INTEREST IN CONTINUING THE BILATERAL DIALOGUE ON DUAL-USE EXPORT CONTROLS INITIATED LAST JULY (REF. B) AND WOULD WELCOME CURRENT WASHINGTON THINKING ON THE TIMING OF THE NEXT ROUND, AS WELL AS POTENTIAL TOPICS OF INTEREST. SKODON NNNN 2004ROME00150 - Classification: UNCLASSIFIED