EU ARMS EMBARGO ON CHINA: MORE ITALIAN VIEWS

C O N F I D E N T I A L ROME 001590

SIPDIS


E.O. 12958: DECL: 04/22/2014
TAGS: PARM PREL MASS IT EUN
SUBJECT: EU ARMS EMBARGO ON CHINA: MORE ITALIAN VIEWS


REF: A. ROME 1342

B. SECSTATE 68263

CLASSIFIED BY: POLITICAL MINISTER-COUNSELOR TOM COUNTRYMAN FOR REASONS
1.5 (B) AND (D)


1. (C) EMBASSY OFFICERS ON APRIL 7 AND APRIL 22 FURTHER
ENGAGED ITALIAN OFFICIALS (REF A COVERS OUR INITIAL CONTACTS)
TO PRESS U.S. CONCERNS ABOUT EU CONSIDERATION OF LIFTING ITS
ARMS EMBARGO ON CHINA. DIEGO UNGARO, DIRECTOR OF THE MFA'S
OFFICE OF DEFENSE INDUSTRY AND SENSITIVE TECHNOLOGY
TRANSFERS, TOLD ECONOFF EARLIER THIS MONTH THAT ITALY
RECOGNIZED THE POTENTIAL IMPLICATIONS OF ENDING THE EMBARGO
ON DEFENSE INDUSTRIAL COOPERATION. UNGARO, A PROPONENT OF
THE U.S.-ITALY DEFENSE TRADE RELATIONSHIP, THOUGHT THERE
WOULD CONTINUE TO BE A LACK OF CONSENSUS WITHIN THE EU ON
ENDING THE SANCTIONS, AT LEAST IN THE NEAR TERM, GIVEN THE
STRONG HUMAN RIGHTS CONCERNS IN MANY MEMBER STATES (INCLUDING
ITALY) AND WITHIN THE EUROPEAN PARLIAMENT. UNGARO SUGGESTED
IT MIGHT BE POSSIBLE TO STRENGTHEN THE EU CODE OF CONDUCT ON
ARMS EXPORTS INTO A LEGALLY-BINDING INSTRUMENT, ALTHOUGH HE
GAVE NO INDICATION THAT THIS WAS ANYTHING MORE THAN HIS
PERSONAL OPINION.


2. (C) POLMILOFF ON WEDNESDAY RAISED THE EMBARGO AND ITS LINK
TO OUR ONGOING DEFENSE TRADE REVIEW (REF B) WITH BRIG. GEN.
GIUSEPPE BERNARDIS, CHIEF OF ACQUISITIONS IN THE NATIONAL
ARMAMENTS DIRECTORATE. BERNARDIS IS A STRONG SUPPORTER OF
THE U.S.-ITALY DEFENSE INDUSTRIAL RELATIONSHIP. "I HAVE
SPENT THE LAST FIVE YEARS TRYING TO STEER ITALY INTO CLOSER
COLLABORATION WITH THE U.S.," HE EMPHASIZED. BERNARDIS SAID
HE WAS AWARE OF OUR CONCERNS AS THEY HAD BEEN CONVEYED TO
ITALIAN MOD OFFICIALS AT THE MARCH 30 U.S-ITALY DEFENSE
INDUSTRIAL CONFERENCE IN WASHINGTON. HE ACKNOWLEDGED THAT
CHINA HAD TO BE HANDLED CAREFULLY BECAUSE OF ITS POTENTIAL TO
BECOME A MILITARY SUPERPOWER AND THE LACK OF CLARITY ON
"WHICH WAY IT WOULD GO". BERNARDIS WAS INTERESTED IN KNOWING
WHETHER SECRETARY POWELL HAD RAISED THE EMBARGO ISSUE WITH FM
FRATTINI DURING THEIR APRIL 20 MEETING. POLMILOFF ASSURED
BERNARDIS THAT PREVENTING ARMS SALES TO CHINA WAS A PRIORITY
FOR THE SECRETARY AND FOR OTHER SENIOR U.S. POLICYMAKERS.


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2004ROME01590 - Classification: CONFIDENTIAL