ARMS SALES TO VENEZUELA

UNCLAS ROME 001996 SIPDIS SIPDIS STATE PLEASE PASS TO ISN/CATR, EUR/PRA, AND EUR/WE E.O. 12958: N/A TAGS: ETRD ETTC PARM SP VE IT SUBJECT: ARMS SALES TO VENEZUELA REF: A. STATE 112031 ¶B. STATE 110041 ¶C. ROME 01915 Sensitive but unclassified. Not for internet distribution. ¶1. (SBU) Summary. A/ECMIN met July 7 with Simone Bemporad, Finmeccanica's Senior Vice President for Media Relations and International Affairs, and Camillo Pirozzi, Head of Public Affairs and Institutional Relations, to discuss Finmeccanica's proposed sale of naval guns to the Venezuelan navy. A/ECMIN orally delivered Ref A talking points, which Pirozzi and Bemporad said they would take back to Finmeccanica. While they were receptive to our points, Bemporad and Pirozzi stopped short of saying Finmeccanica would not pursue this sale. Post will report delivery of Ref B talking points regarding Finmeccanica's contract in Iran septel. End Summary. ¶2. (SBU) A/ECMIN began by thanking Finmeccanica for consulting the USG on the proposed sale. Drawing on Ref A points, she said that President Chavez was becoming increasingly authoritarian and was acquiring weapons in excess of Venezuela's legitimate self-defense needs. She further noted the USG had demarched the Government of Spain (GOS) and Navantia (the Spanish company building the patrol boats on which the guns will be installed) on supplying arms to Venezuela. She said we had not told the GOS clearly that we would not allow U.S. exports in support of the construction of these patrol boats. ¶3. (SBU) A/ECMIN also noted the USG had designated Venezuela as not fully cooperating with U.S. anti-terrorism efforts and, for this reason, will not permit the export or retransfer of defense articles or defense services to Venezuela effective October 1, 2006. Bemporad took A/ECMIN's points on board, stating "Now we have an answer," and said that he would relay these points to senior Finmeccanica management. ¶4. (SBU) Comment. Although Finmeccanica sought USG views on the proposed sale, we note that neither Bemporad nor Pirozzi explicitly said Finmeccanica would not go forward with the sale. As reported Ref C, it is Finmeccanica policy to seek USG approval before entering into contracts with states of concern or in cases where the USG might object for foreign policy reasons. We asked Finmeccanica to inform us of the final decision on the proposed sale, and we will follow up with Finmeccanica. End comment. SPOGLI