REQUEST FOR PRESIDENTIAL ADVOCACY ON GE PROPULSION OFFER FOR FRENCH-ITALIAN SHIP PROJECT

C O N F I D E N T I A L ROME 001465

SIPDIS


STATE FOR EB/CBA (MERMOUD) AND EUR/WE
COMMERCE FOR 534 BIS
COMMERCE ALSO FOR MAC/EUR, USFCS/ADVOCACY
SECDEF FOR USDATL/IC, USDP, AND USDP/DSCA

E.O. 12958: DECL: 04/29/2015
TAGS: ETRD BEXP PREL IT FR BUY AMERICA
SUBJECT: REQUEST FOR PRESIDENTIAL ADVOCACY ON GE PROPULSION
OFFER FOR FRENCH-ITALIAN SHIP PROJECT

REF: PARIS 2902

Classified By: Ambassador Mel Sembler for Reasons 1.5 (b) and (d)


1. (C) Action Request: Embassy Rome seconds Embassy Paris'
recommendation (reftel) that it would be helpful to have
President Bush send an advocacy letter to Italian Prime
Minister Silvio Berlusconi, in addition to French President
Jacques Chirac, in support of General Electric's bid to
provide the propulsion system for the joint French-Italian
Multi-Mission Frigates (FREMM). ODC contacts within the
Italian Ministry of Defense have indicated that they believe
UK Prime Minister Tony Blair has advocated directly with
Berlusconi on behalf of GE's competitor, Rolls Royce. We
cannot independently verify such contacts, however.


2. (SBU) We believe an advocacy letter should emphasize GE's
partnership with the U.S.-Italian firm Avio to supply the
engine turbines for the FREMM project, which would contribute
positively to Italian employment. We are unaware of any
benefits to Italian workers that would follow a decision to
choose Rolls Royce to supply the propulsion systems.


3. (C) Embassy Rome has been working with GE for several
years to support their bid on the FREMM propulsion system.
Italian navy contacts have told us recently, however, that
the navy is concerned that the GE engines may not meet their
technical specifications with regard to power (the Italian
navy would prefer engines capable of reaching 28 knots or
more).

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2005ROME01465 - Classification: CONFIDENTIAL