SPAIN CONFIRMS NEED FOR DIPLOMATIC CLEARANCE

UNCLAS MADRID 001346

SIPDIS

SENSITIVE

DEPARTMENT FOR OES/OA AND EUR/WE

E.O. 12958: N/A
TAGS: KRVC KTIA PHSA SENV SP
SUBJECT: SPAIN CONFIRMS NEED FOR DIPLOMATIC CLEARANCE
REQUEST FOR U.S. COMMERCIAL VESSEL

REF: SECSTATE 52463 AND PREVIOUS


1. (U) ECONCOUNS and ESTHOFF made reftel points April 7 to
MFA International Economic Affairs Director General (A/S
equivalent) Emilio Fernandez-Castano, urging Spain to not/not
require a formal diplomatic clearance for 3U Technologies or
other future U.S. commercial enterprise vessels operating
within Spain's Exclusive Economic Zone (EEZ).
Fernandez-Castano, who was joined by MFA Deputy Director
General Pablo Montesino-Espartero and Coordinator for Land,
Sea and Air Issues Juan Luis Munoz de Laborde Bardan, said
that while his office sought to foster a more intense
economic relationship with the U.S., and thus viewed 3U's
project in a positive light, a review by the MFA's lawyers
had indicated that a diplomatic clearance request would be
required before the GOS could authorize 3U's activities.


2. (U) Fernandez-Castano said Spanish legislation
implementing Law of the Sea Treaty (UNCLOS) obligations
required a clearance in 3U's case. The MFA had reviewed in
detail 3U's proposed activities and had determined that they
do not/not qualify for the UNCLOS exemptions for commercial
cable laying and maintenance vessels. Fernandez-Castano
argued that these exemptions were for vessels that would lay
or maintain communication cables that would actually connect
persons/entities and could not be applied to vessels like 3U
that would lay and test temporary cables as part of
experimental research. Thus, the MFA does not/not accept the
argument made in reftel nonpaper that 3U's venture is "purely
commercial." Spain believes the endeavor includes "research"
elements and thus requires a formal diplomatic clearance
request.


3. (U) Elaborating on his point, Fernandez-Castano
repeatedly stressed that the U.S. is a friend and ally of
Spain and that Spain wants more intensive commercial ties
with the U.S. The problem, he explained, was one of legal
precedent. Were Spain to permit 3U to operate without a
diplomatic clearance, vessels from other less friendly
states/entities (he mentioned China and North Korea as
examples) could then try to operate within the Spanish EEZ
without prior notification. Spain would thus hold firm to
its request for a diplomatic clearance request for 3U.


4. (U) De Laborde said that his office, in hopes of speeding
the approval process, had sought the requisite
inter-ministerial clearances for 3U, even though the MFA had
not yet received our diplomatic clearance request. He
reported that he had received all the necessary written
clearances except for that of the Ministry of Defense. He
indicated that he had received a verbal clearance from
Defense and was simply waiting for the written confirmation.
De Laborde suggested that should the U.S. agree to make a
diplomatic clearance request for 3U, his office would approve
it within days (not weeks). Fernandez-Castano reiterated
that the approval of 3U's activities is not in question; they
would be approved. Spain simply needs a diplomatic note to
protect its legal equities.


5. (SBU) COMMENT: Embassy Madrid believes that Spain will
hold firm on this issue and will not permit 3U to operate
without a diplomatic clearance. We recommend that the
Department authorize this Embassy to deliver the diplomatic
clearance note as requested by the GOS. Given our legal
disagreement with Spain over whether 3U's activities should
require a diplomatic clearance, we presume it would be
possible to caveat such a clearance request with language
that would serve to defend U.S. legal equities vis-a-vis
UNCLOS interpretation. 3U is losing money every day that
this drags on. We would hope the Department could find a way
to continue to engage Spain over this set of issues without
damaging U.S. corporate interests.
MANZANARES