Identifier
Created
Classification
Origin
04ROME2224
2004-06-10 13:30:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:  

U.S.-EU AIR SERVICES AGREEMENT: GOI VIEWS AS "NOT

Tags:  EAIR IT EUN AVIATION 
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UNCLAS ROME 002224 

SIPDIS


SENSITIVE

STATE FOR EB/TRA BYERLY, EUR/WE, EUR/ERA
DOT FOR PGRETCH
USDOC FOR DE FALCO

E.O. 12958: N/A
TAGS: EAIR IT EUN AVIATION
SUBJECT: U.S.-EU AIR SERVICES AGREEMENT: GOI VIEWS AS "NOT
RIPE"

REF: A. ROME 2190

B. STATE 124593

C. ROME 1893

SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION

UNCLAS ROME 002224

SIPDIS


SENSITIVE

STATE FOR EB/TRA BYERLY, EUR/WE, EUR/ERA
DOT FOR PGRETCH
USDOC FOR DE FALCO

E.O. 12958: N/A
TAGS: EAIR IT EUN AVIATION
SUBJECT: U.S.-EU AIR SERVICES AGREEMENT: GOI VIEWS AS "NOT
RIPE"

REF: A. ROME 2190

B. STATE 124593

C. ROME 1893

SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION


1. (SBU) FOLLOWING UP ON REF. A DISCUSSIONS, ECMIN MET THE
MORNING OF JUNE 10 WITH EMIGLIO MARAINI, DIPLOMATIC ADVISOR
TO TRANSPORT MINISTER LUNARDI, SHORTLY BEFORE THE TWO WERE TO
DEPART FOR THE TRANSPORT COUNCIL IN LUXEMBOURG. MARAINI
ESSENTIALLY CONFIRMED WHAT WE HAD HEARD IN OUR EARLIER
MEETINGS, BUT WITH GREATER CLARITY, PRECISION AND CANDOR.


2. (SBU) MARAINI STRESSED THAT THE BERLUSCONI GOVERNMENT,
AND TRANSPORT MINISTER LUNARDI PERSONALLY, REMAINED COMMITTED
TO FURTHER LIBERALIZATION OF U.S.-EU CIVAIR SERVICES.
INITIALLY, LUNARDI HAD NOT BEEN PERSUADED BY ARGUMENTS
AGAINST PROCEEDING WITH A FIRST-STEP AGREEMENT AT THIS TIME.
ULTIMATELY, HOWEVER, THE SNOWBALLING CRISIS AT ALITALIA
CAUSED HIM TO CHANGE HIS MIND.


3. (SBU) ALITALIA IS CURRENTLY IN THE MIDST OF DEVELOPING A
NEW BUSINESS PLAN WITH THE HELP OF MCKINSEY & CO., MARAINI
CONTINUED, BUT THE PLAN WOULD NOT BE READY FOR AT LEAST
ANOTHER WEEK OR TWO. THEREAFTER, DISCUSSIONS WITH THE EU
COMMISSION ON STATE AID AND RELATED MATTERS WOULD HAVE TO
FOLLOW. WITH SO MUCH IN FLUX, IT WAS POLITICALLY ALMOST
IMPOSSIBLE FOR THE GOI TO ENDORSE -- AT THIS MOMENT -- A NEW
CIVAIR FRAMEWORK THAT WOULD INCREASE COMPETITION ON
ALITALIA'S ROUTES TO THE U.S.


4. (SBU) WITH RESPECT TO CABOTAGE, MARAINI SAID THAT THIS
WAS A EUROPE-WIDE CONCERN WHICH THE GOI SHARED
PHILOSOPHICALLY; A FINAL AGREEMENT WOULD HAVE TO BE
"BALANCED." BUT HE CANDIDLY ADMITTED IT WAS NOT A
MAKE-OR-BREAK NATIONAL INTEREST FOR ITALY, SINCE ALITALIA
WOULD NOT BE IN ANY POSITION TO TAKE ADVANTAGE OF SUCH RIGHTS
FOR THE FORESEEABLE FUTURE.


5. (SBU) MARAINI PREDICTED THAT THE TRANSPORT COUNCIL
DISCUSSION WOULD BE "DIFFICULT." THE DYNAMICS WERE
UNCERTAIN, GIVEN THE PRESENCE OF THE NEW MEMBER STATES. BUT
IT WAS CLEAR THAT THE UK WAS ADAMANTLY OPPOSED TO A
FIRST-STEP AGREEMENT. ("YOUR BRITISH COUNTERPART WILL BE
COMING TO SEE ME IN AN HOUR TO ARGUE THE EXACT OPPOSITE,"
MARAINI SMILED.) THE GERMANS WERE RIGHT NEXT TO THE BRITISH.
DUTCH AND FRENCH POSITIONS WERE MORE AMBIGUOUS, BUT MARAINI
WAS CERTAIN THE FRENCH WOULD BE PLEASED TO SEE THE AGREEMENT
STALL. HE WAS FURTHER CONVINCED THAT DE PALACIO HAD COME TO
REALIZE THAT AN AGREEMENT WAS NOT WITHIN REACH AT THIS
COUNCIL MEETING, AND WOULD NOT GO TO THE MAT ACHIEVE IT.


6. (SBU) IN SHORT, MARAINI CONCLUDED, A FIRST-STEP
AGREEMENT WAS "NOT RIPE" FOR CONCLUSION BY THE U.S.-EU
SUMMIT. HE PROFESSED OPTIMISM, HOWEVER, THAT THE DUTCH WOULD
TAKE UP THE NEGOTIATIONS EARLY-ON IN THEIR PRESIDENCY, AND
THAT A SUCCESSFUL CONCLUSION WOULD BE ATTAINABLE BY THE END
OF THE YEAR. HE ALSO BELIEVED THAT AS SOON AS ALITALIA HAD
DEVELOPED AN AGREED TURNAROUND PLAN, THE GOI WOULD BE ABLE TO
SUPPORT A U.S.-EU AIR SERVICES AGREEMENT.

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SEMBLER

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2004ROME02224 - Classification: UNCLASSIFIED