EU/CHINA ARMS EMBARGO; MFA PROVIDES DETAILS ON

C O N F I D E N T I A L ROME 004646

SIPDIS


E.O. 12958: DECL: 12/06/2014
TAGS: PREL PHUM MARR IT CI EUN HUMAN RIGHTS
SUBJECT: EU/CHINA ARMS EMBARGO; MFA PROVIDES DETAILS ON
FINI/CIAMPI'S BEIJING REMARKS


Classified By: DCM EMIL SKODON. REASON: 1.4 (B)(D)


1. (C) Summary: MFA Political Director Giulio Terzi told DCM
that there was "nothing new" in what Italy said to the
Chinese on the EU arms embargo during the Italo-China Summit.
He said that Italy would support lifting the embargo in
Brussels, but that support would be linked to positive
signals from Beijing on human rights and strengthening the
Code of Conduct. Notwithstanding Terzi,s disclaimers, it
appears the Italians have moved from an &on the fence,
leaning against8 position to one of barely qualified support
for lifting the embargo. End Summary.


2. (C) Terzi called in DCM December 6 to explain President
Ciampi's and FM Fini's comments on the EU/China Arms Embargo
reported in that morning's press. A number of wire services
and Italian dailies reported that Ciampi and Fini had called
for lifting the embargo during their visit to Beijing for the
Italy-China Summit (see para 6 for more detail on reported
comments).


3. (C) Terzi, on his first day as PolDir, was accompanied by
Americas DG Ludovico Ortona and Far East Office Director
Cristina Ravaglia; poloff accompanied DCM. Terzi made clear
that he had received instructions from Fini to explain in
more detail the reported comments. Terzi claimed that there
was "nothing new" in what was said to the Chinese during the
Summit. Italy continues to share US concerns regarding the
effect sales of sophisticated weapons systems to China could
have on regional stability, and the signals lifting the
embargo could send regarding its human rights situation.


4. (C) DCM commented that the USG understanding was that a
definite EU decision to lift the embargo was not/not likely
in December, and asked if this understanding needed to be
revised in light of Fini,s comments. Terzi said that there
was unlikely to be any acceleration to the debate in
Brussels, so it was therefore unclear whether the EU would
reach consensus to lift the embargo during the Dutch
Presidency. He underlined that if there is a "positive move"
to lift, Italy will join the decision. Terzi added that Fini
had told his interlocutors in Beijing that any "evolution" in
Brussels would require "concrete steps" towards an improved
human rights situation in China, including moves towards
Tibet, that would indicate China is on the right path.


5. (C) DCM told Terzi that the USG remainsopposed to lifting
the embargo, and would be Qoncerned about the apparent shift
in the ItalQan position. At the least, we hoped Italy would
advocate definite steps from China on huma rights before the
emrgo was lifted rather re
action, and also Qncluded some binding
pQvent individual member st floodgates to arms sa
Italy did not want ttrategic
imbalance l`l u, confirmed that
Italy looks with favor at the lifting of the embargo on the
export of arms and is actively working to make it possible."
Fini told the press that Italy "has always been of the
opinion that maintaining the embargo on the sales of arms to
China is in contrast with the spirit of the strategic
partnership" between the EU and China. In response to press
speculation that Fini and Ciampi's statements were a quid pro
quo for China's support for Italy's views on UNSC reform,
Fini said that "there was not, and there is not, an exchange
with China between lifting the arms embargo by the EU and
Italy's position on UN reform."


7. (C) Comment: Terzi worked hard to downplay his Formin,s
comments in Beijing. Nevertheless, they are disappointing.
Our understanding until now had been that the Italians were
on the fence about lifting the embargo and would go along
with the EU consensus. Now it appears they have decided to
advocate openly for a consensus that provides early lifting
of the embargo in return for a code of conduct and
unspecified human rights concessions from the Chinese. Given
the large contingent of Italian business people who
accompanied Ciampi and Fini to Beijing, hopes of more access
to the growing Chinese market probably lie behind the shift
in the Italian position. End Comment.

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NOTE: PARA NUMBERING (NO PARA#6) AND GARBLE
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2004ROME04646 - Classification: CONFIDENTIAL