FAST BOATS TO IRAN: COMPANY PRESSES GOI

S E C R E T ROME 002964

SIPDIS


STATE FOR EUR/WE, EUR/PRA, NP/ECNP, INR/SPM

E.O. 12958: DECL: 07/30/2014
TAGS: ETTC EIND PREL IT IR EXPORT CONTROLS
SUBJECT: FAST BOATS TO IRAN: COMPANY PRESSES GOI

REF: A. ROME 2829

B. ROME 776

Classified By: Acting Economic Minister Counselor Kathleen Reddy for Re
asons 1.5 (a),(b) and (d)


1. (S) The Italian Ministry of Productive Activities (MPA)
continues to be pressed by Italian fast boat manufacturer FB
Design to allow it to resume business with Iran, according to
Amedeo Teti, Director General for Commercial Agreements -
Foreign Trade. Teti himself contacted econoff July 28 to
relay this information, noting that the company's request had
been conveyed to Massimo Goti, Director General for
Productive Development and Competitiveness at the MPA.


2. (S) In response to Teti's inquiry regarding current U.S.
thinking on Iran, econoff reiterated the message that the
U.S. delegation had delivered to the GOI during the June 23
Bilateral Dual Use Export Control Consultations (ref A).
Econoff told Teti that Iran remained a serious threat to
coalition forces in the Persian Gulf, and the U.S. continued
to strongly oppose the export of any items to Iran that might
augment its naval capabilities. Teti thanked econoff for the
information, and noted that the Ministry would continue to
maintain its restrictions on FB Design exports to Iran.


3. (S) Note: FB Design's business with Iran was the subject
of an official letter to the firm, co-signed by Teti and Goti
on February 26, 2004, that prohibited the company from
exporting any additional high-speed boats to Iran, as well as
the provision of related technical assistance and components
(ref B). That letter also required the company to submit for
Ministry review any future proposed exports to Iran. (Teti
did not indicate whether the company's most recent contact
with the Ministry consisted of a request for review of a
particular export, however.) End note.


4. (S) Comment: Embassy was encouraged by the willingness of
Teti (one of Italy's most senior trade officials) to brief us
on FB Design's contacts with the GOI, and by his statement
that the Ministry of Productive Activities would maintain its
restrictions on the company's exports to Iran. The company's
inquiry to the Ministry indicates its hesitancy to engage in
business with Iran behind the GOI's back, and also
demonstrates that the Goti/Teti letter appears to have at
least some teeth, despite its ad hoc nature. Embassy will
seek an update from Teti on the company's contacts with the
GOI following the August vacation period. End comment.

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2004ROME02964 - Classification: SECRET