D'ALEMA/IRAN: OPEN TO FURTHER UNSC SANCTIONS,

C O N F I D E N T I A L SECTION 01 OF 03 ROME 001949

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/13/2017
TAGS: PREL IR AF LE XF UN KNNP IT
SUBJECT: D'ALEMA/IRAN: OPEN TO FURTHER UNSC SANCTIONS,
SUGGEST MATCHING WITH NO-STRINGS NEGOTIATION OFFER

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Classified By: Ambassador Ronald P. Spogli for reasons 1.4 b and d.

Summary
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1. (C) The Ambassador engaged FM Massimo D'Alema on Iran and
Syria in a meeting on September 12, shortly after the
minister returned from trips to the EU GYMNICH, Cairo,
Jerusalem, and Ramallah. The conversation also followed
recent visits to Italy of Syrian VP al-Shara, Iranian DFM
Jalili, Israeli President Peres, and Lebanese Maronite
Patriarch Sfeir. The Ambassador stressed the importance of
pressuring Iran to meet its UNSC requirements and added that
hosting Syrian VP al-Shara sent the wrong message to
Damascus. The FM emphasized that Italy shares the U.S. goal
of avoiding a nuclear armed Iran and wants to contribute
toward concrete results. He said Italy is open to a third
round of UNSC sanctions, but warned that Russia will be an
obstacle. D'Alema suggested following a two-pronged approach
by adopting a further UNSCR while at the same time offering
to negotiate with the Iranians, without insisting on
suspension of enrichment as a pre-condition. D'Alema said he
had been forceful with Syrian VP al-Shara on the need for
cooperation on Iraq; the need to stop interfering in
Lebanon's internal politics; and the need to support PA
President Mahmoud Abbas and cease support for Hamas. He said
the Syrians had been ambiguous in their answers but showed a
potential openness towards accepting EU border monitoring
assistance which D'Alema said the EU should test. End
Summary.

Italy Requests Invite to Afghanistan Meeting
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2. (C) Since the FM had not yet heard that Italy had been
invited, late September 11, to the informal September 21
meeting on Afghanistan in Washington, he pressed the
Ambassador on the importance of including Italy. The
Ambassador clarified that the September 21 get together was a
meeting, not a conference, and that the USG was working, with
the other participants, to include Italy. D'Alema said he
would call French FM Kouchner to emphasize that Italy must be
involved in any substantive meeting on Afghanistan given the
size of its contribution. D'Alema noted that Italy had twice
the number of troops on the ground than France. Note. The
Department invited Italy to participate in the meeting, late
on September 11, via its Embassy in Washington. After
receipt of that information, the Ambassador called D'Alema
who was very pleased at the decision to include Italy. End
Note.

Iran - Offer Carrot and Stick at the Same Time
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3. (C) The Ambassador stressed the importance of maintaining
a united front and of keeping-up the pressure on Iran.
D'Alema said the GOI shares the same goal as the U.S. -
avoiding a nuclear armed Iran - and added that the current
policy isn't working. The minister said Italy is ready to
examine a third round of UNSC sanctions, but that Russia will
be an obstacle.


4. (C) D'Alema suggested, partially to appease Russia, but
also to assuage Iranian national pride, that the
international community take a two-pronged approach. He
hypothesized the UNSC proceed with a third round of sanctions
against Iran while at the same time offering to negotiate
with Iran - without preconditions. D'Alema argued that the
goal is to divide Iranian leaders, but that they and the
Iranian people are united behind the position that a
suspension of enrichment should be an "end goal" of
negotiations and not the starting point. D'Alema said he had
made a similar proposal during the recent G-8 meeting in
Germany and that the Secretary had appeared open to the idea.


5. (C) D'Alema was unaware of recent news reports of German
objections to further sanctions but seemed unconcerned and
stressed that the EU-3 has no legal standing and said
discussions should be in UNSC or EU formats.


6. (C) Domestically D'Alema stressed Italy was being a
"disciplined" ally and scrupulously watching Bank Sepah.
D'Alema emphasized that SACE was not issuing any new credit
guarantees to Iran. The Ambassador thanked him for
cooperation on Bank Sepah and said recent SACE reductions in
credit guarantees were a positive sign.

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GOI Firm with Syrian VP; Response Ambiguous
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7. (C) The Ambassador noted that receiving Syrian VP Farouk
al-Shara in Italy in early September had sent the wrong
message to Damascus. D'Alema stressed he had been invited by
the Pope because of the Pope's concern for Iraqi Christian
refugees and appreciation for Syrian action to take them in.


8. (C) D'Alema said he had taken advantage of al-Shara's
visit to deliver a forceful message that Syria: cooperate on
security in Iraq, stop interfering in Lebanon's internal
affairs, and help PA President Mahmoud Abbas and stop support
to Hamas. D'Alema said the Syrian had given ambiguous
answers on all points.

Openness re EU Syria/Lebanon Border Monitoring
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9. (C) D'Alema said Syria had flip-flopped on the issue of
an international/EU civilian Lebanon/Syria border monitoring
assistance mission (for the Syrian side of the border). He
first said yes to civilian monitors and equipment, then no,
then changing course again to say yes to equipment only.
D'Alema said the EU should test Syrian openness to the
initiative by forwarding a concrete proposal which Italy will
support.

Lebanon: Concerned over Christian Divisions
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10. (C) D'Alema said he had been disappointed with Lebanese
Maronite Patriarch Sfeir's indecisiveness and caution during
his recent visit to Rome. The minister said he had hoped
Sfeir could play a greater role in uniting the divided
Christian community and in pushing forward Constitutional
reform before the upcoming Presidential elections.

D'Alema's trips to Cairo, Jerusalem and PA
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11. (C) D'Alema said he had attended a working dinner of the
Arab League and had a long one-on-one with Egyptian President
Hosni Mubarak during his recent visit to Egypt. According to
D'Alema, Mubarak seemed re-invigorated and engaged. He had
talked at great length about his concerns over Iranian
expansion and had been critical of Syria. However, despite
his disregard for Syria's current leadership, Mubarak had
insisted that Syria, as a member of the Arab League, must be
invited to attend the November MEPP conference. Mubarak and
his Arab League colleagues also expressed their willingness
to attend the fall MEPP conference but underlined the
importance of insuring that PA President Abbas walk-away from
the conference with concrete results.


12. (C) D'Alema said his meetings with Israeli FM Livni and
with the Palestinian leadership had been very productive. He
said he and Livni had had a particularly good exchange and
noted that she had called Italy an intimate ally in their
press conference. D'Alema observed that Israel found Italy
useful as an interlocutor because Israel realizes Italy's
power to influence Israel's Arab neighbors, with whom they
have little or no direct contact. D'Alema commented that the
current Israeli leadership is particularly weak and suggested
that the USG encourage them to take advantage of the current
opportunity for progress on peace talks with the
Palestinians. The goal would be to give Abbas something to
walk away with from the November conference.

GOI To Launch October Intellectual Property Event
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13. (SBU) D'Alema was keen to discuss with the Ambassador
the importance he places in the October 24 inter-ministerial
IPR event the GOI is hosting. The Ambassador lauded the
initiative telling the minister that his involvement was a
positive sign that Italy is finally tackling this important
issue hurting both of our economies.

AMB encourages Ratification of Tax Treaty,
Delivers NASA Letter, and Extends NIAF Invite
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14. (SBU) The Ambassador raised the subject of the double

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taxation treaty signed by Italy and the U.S. in 1999. He
noted that the next step would be for the MFA to request
off-setting funding to cover foregone revenues in order to
submit the treaty for parliamentary approval. The Ambassador
provided the minister with a non-paper on the subject and the
minister agreed to forward it to the appropriate offices.
The Ambassador also delivered Secretary Rice's letter
replying to the FM's inquiry on whether NASA could carry the
Alpha Magnetic Spectrometer to the International Space
Station and regretted that our answer could not be more
positive. Finally, the Ambassador urged the minister to
consider participating in the National Italian American
Foundation's October 13 gala event; D'Alema said he would
consider it, but that his schedule looks very tight.
SPOGLI