Identifier
Created
Classification
Origin
04ROME1928
2004-05-19 07:38:00
SECRET
Embassy Rome
Cable title:  

ALENIA SPAZIO AND CHINA - DETAILS ON CONTINUED AND

Tags:  ETTC PARM PREL TSPA IT CH EXPORT CONTROLS 
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S E C R E T ROME 001928 

SIPDIS


STATE FOR PM/DTCP, NP/NPC/ECNP, EUR/WE
DOD FOR SPACE POLICY - RITCHESON; DEFENSE TECHNOLOGY
SECURITY/SPACE DIVISION - WALDING; C3I - MANNO
JOINT STAFF FOR J-5 - WHALEN

E.O. 12958: DECL: 05/18/2014
TAGS: ETTC PARM PREL TSPA IT CH EXPORT CONTROLS
SUBJECT: ALENIA SPAZIO AND CHINA - DETAILS ON CONTINUED AND
FUTURE COOPERATION

REF: A. 03 ROME 4744

B. 03 STATE 283728

C. 03 ROME 2977

Classified By: Economic Minister-Counselor Scott Kilner for Reasons 1.5
(d) and (e)

S E C R E T ROME 001928

SIPDIS


STATE FOR PM/DTCP, NP/NPC/ECNP, EUR/WE
DOD FOR SPACE POLICY - RITCHESON; DEFENSE TECHNOLOGY
SECURITY/SPACE DIVISION - WALDING; C3I - MANNO
JOINT STAFF FOR J-5 - WHALEN

E.O. 12958: DECL: 05/18/2014
TAGS: ETTC PARM PREL TSPA IT CH EXPORT CONTROLS
SUBJECT: ALENIA SPAZIO AND CHINA - DETAILS ON CONTINUED AND
FUTURE COOPERATION

REF: A. 03 ROME 4744

B. 03 STATE 283728

C. 03 ROME 2977

Classified By: Economic Minister-Counselor Scott Kilner for Reasons 1.5
(d) and (e)


1. (S) Summary: Alenia Spazio (AS) CEO Maurizio Tucci and
Director General Carlo Penazzi told emboffs May 13 that
contacts between the company and Chinese space officials over
the last six months had revealed several potential areas of
further cooperation: telecommunications; manned space
programs; and scientific satellites and moon exploration. In
a candid conversation over lunch with Ecmin, accompanied by
Science Counselor and econoff, Tucci and Penazzi discussed
Alenia Spazio's resumption of contacts in December 2003 with
the Chinese Academy for Space Technology (CAST) and the
Shanghai Academy for Space Technology (SAST). Tucci also
passed to Ecmin a "company confidential memo" providing
information on Alenia Spazio's activity with CAST and SAST
from the December 2003 visit of Alenia executives China up
to the present. Our discussion also covered Alenia Spazio's
relationship with NASA and with ASI, the Italian space agency
(reported septel). End summary.


2. (S) Tucci, who visited China himself in early April
(accompanying an EU delegation led by Research Commissioner
Philippe Busquin),where he met with CAST president Jia-Jun,
told us that he was impressed by the increasingly advanced
technology of the Chinese space sector, especially in terms
of launch capabilities. Rather than seeking to import whole
systems, the Chinese were now interested primarily in
importing components - Tucci specifically mentioned their
need for microelectronics, such as those used in
transponders. Tucci added that the Chinese recognized that
the company's ability to export sensitive goods and
technology to China was constrained by Italian export
controls. Overall, he said, Chinese officials' attitude on
space technology was that China would eventually be able to

produce such components domestically, regardless of foreign
export controls. Tucci added that since talks resumed last
December, AS has had no discussions with the Chinese on data
relay satellites. He made no mention of any further talks
with the Chinese on navigation systems, either.


3. (S) According to the Alenia Spazio (AS) document given to
us by Tucci, the December 2003 visit of AS executives to CAST
and SAST was followed shortly thereafter (no specific date
given) by the visit of a delegation from CAST's manned space
division to Alenia Spazio's Turin facilities. AS employees
made a return visit to CAST on March 30-April 1, 2004. The
document then provides Alenia Spazio's analysis of some
technical and operational aspects of the planned cooperation
in the following three areas:

-- Telecommunications: CAST designated China Great Wall
Industries Corporation (CGWIC) as the purchasing company for
on-board telecommunication equipment (no further details were
provided),as previously specified in a request for proposal
(RFP) forwarded by CAST to AS. On April 29, 2004, AS asked
CGWIC to issue an end-user statement for the proposed
equipment. In the meantime, AS contacted the GOI regarding
the potential issuance of export licenses for the proposed
items. AS believes these items are being procured
competitively, with at least three other companies having
been asked by CAST to provide a quotation.

-- Manned Infrastructure: CAST confirmed its interest in AS
technologies and products, including in the areas of
shielding from micrometeoroids and debris; design and welding
procedures for pressurized structures; and thermal controls
for modules.

-- Scientific satellites and moon exploration: CAST is
interested in cooperating with AS on future scientific
missions, particularly with regard to satellites to study the
effect of solar activity on the earth's atmosphere. These
projects were being implemented in close cooperation with the


European Space Agency and other national space agencies. CAST
would also like to collaborate with AS in the development of
a surface rover for lunar exploration.

Though AS is interested in all three sectors outlined above,
AS notes in the document that in all the areas except
telecommunications, government-to-government (perhaps space
agency-to-space agency) agreements would be needed to allow
such cooperation to move forward.


4. (S) Tucci told Ecmin that the brief (45 minute) visit of
Chinese Premier Wen Jiabao to AS headquarters in Rome on May
7 had been essentially a photo opportunity, with no business
discussions taking place. He pointed out that AS had taken
care to shield Wen and his staffers from seeing any sensitive
equipment or operations (notably those connected to Cosmos
SkyMed),adding that GOI officials had also pressed AS to
ensure its facility was not compromised in any way by the
visit.


5. (S) Comment: Tucci continued to impress us with his
willingness to share details of Alenia Spazio's contacts with
Chinese space officials, including in a written document
(which appeared to be drafted specifically for USG
consumption). AS continues to look to China as an important
element in reinvigorating the company's operations, though it
appears in the near term that there may be fewer commercial
prospects there for AS than was the case last summer. We
expect to hear further details on AS discussions with China
at the next round of bilateral talks on dual-use export
controls, now being planned for June. End comment.

Visit Rome's Classified Website:
http://www.state.sgov.gov/p/eur/rome/index.cf m

SKODON


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2004ROME01928 - Classification: SECRET