OECD - EXPORT CREDITS; BRIBERY WORKING GROUP

UNCLAS ROME 004125

SIPDIS

PARIS FOR USOECD

E.O. 12958: N/A
TAGS: ECON ETRD EFIN IT OECD EXPORT CONTROLS
SUBJECT: OECD - EXPORT CREDITS; BRIBERY WORKING GROUP

REF: STATE 205372


1. (U) As instructed, EconOff delivered reftel demarche
November 15 to Roberto Pecoraio, Director of the Legal
Department for SACE, Italy's Export Credit Agency. Pecoraio
said in general Italy supported the OECD Secretariat's
proposed Action Statement on Measures to Deter Bribery (in
granting export credits),but needed to work out additional
details on the statement's legal wording. He welcomed
coordination with the United States.


2. (U) Acting Minister Counselor also discussed reftel
points with MFA Deputy Director General Massimo Leggeri
November 19, who expressed support for a strengthened Action
Statement, but repeated SACE's concern on legal wording.


3. (U) DCM then delivered reftel demarche to Ministry of
Justice (MOJ) Under Secretary Pasquale Guiliano December 20.
While Guiliano did not respond to DCM's points, he took the
opportunity to express the GOI's strong displeasure on the
alleged failure of the United States to support the GOI
candidate for the Vice-Chair of the OECD Working Group on
Bribery in International Business Transactions (WG).
Giuliano continued at length to vent his anger and asked the
DCM to convey the GOI's view to the Ambassador. The DCM
replied that the Ambassador had met with Justice Minister
Castelli November 15, but the Minister had not broached the
subject. Guiliano responded tersely by observing that good
relations are defined by helping one another achieve one's
goals.


4. (U) DCM, in an effort to introduce a positive note, then
raised the February 2006 second Italy-U.S. peer evaluation of
Japan's anti-bribery practices (since the WG could not reach
a consensus on the first report in 2005.) She noted the
second peer evaluation is an opportunity for Italy and the
United States to continue their cooperation on WG matters.
Guiliano replied that Maria Rosaria Marino, a magistrate,
will be part of the Italian team, although no decision has
been made yet on other members. Giuliano said Marino speaks
excellent English.


5. (U) COMMENT: The Guiliano meeting took place more than a
month after we asked to meet with the MOJ. The delay was
most likely a signal of the MOJ's continuing spleen over its
perception that the United States did not declare support for
Italy's candidate for the WG Vice-Chair early enough to make
a difference. (We heard the same charge during our MFA
call.) Given the continuing rancor, we suggest looking
closely at options to smooth ruffled feathers to avoid a
meltdown on future U.S.- Italian initiatives on WG goals.
End comment.
SPOGLI