SPAIN: SCENESETTER FOR VISIT OF SECRETARY WINTER,

S E C R E T MADRID 000351

SIPDIS

NOFORN
SIPDIS

NAVY FOR LCDR TODD NETHERCOTT
DEPARTMENT FOR KEVIN OPSTRUP AND ELAINE SAMSON, EUR/WE
OSD FOR CDR TODD SQUIRE

E.O. 12958: DECL: 03/19/2018
TAGS: PREL MARR SP
SUBJECT: SPAIN: SCENESETTER FOR VISIT OF SECRETARY WINTER,
MARCH 30 - APRIL 1

REF: A. MADRID 288

B. MADRID DAO IIR 6 889 0124 08

Classified By: Ambassador Eduardo Aguirre for reasons 1.4(b) and (d).


1. (C) SUMMARY: I warmly welcome your visit to Madrid, and I
look forward to traveling with you to visit Spain's largest
shipbuilder, Navantia, in the Galician town of El Ferrol.
When you arrive, Spain will be emerging from Easter holidays
and the aftermath of the March 9 general election, and all
focus will be on the formation of a new government. Although
the media here prefers to focus on differences in the
U.S.-Spain relationship resulting from Spain's 2004
withdrawal from Iraq, military-to-military cooperation is
excellent, as is cooperation in areas of common interest such
as fighting terrorism and organized crime and promoting the
spread of democracy in many areas of the world. We think of
Spain as a trusted (if some would say under-performing) ally
and a solid NATO partner, committed to strengthening the
Transatlantic security relationship. We know Spain could do
more in Afghanistan and elsewhere, and with fewer national
caveats. We wish they would consider doing less to help the
likes of Venezuela. Your visit will be a welcome boost to
the already pro-U.S. Spanish Navy, and a good starting point
for continued and constructive cooperation. End summary.

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NOTIONAL SCHEDULE
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2. (C) When you arrive on Sunday evening, I look forward to
having dinner with you at my Residence. On Monday morning,
March 31, before you meet with Spanish officials, we propose
that you take time to sit down, perhaps over breakfast, with
me and members of the Mission's Country Team and Pol-Mil
working group. We would like to prevail upon you to preside
over an awards ceremony here at the Embassy to honor six of
our Spanish naval colleagues as well as the U.S. Defense and
Naval Attache, who is retiring from this post as a Captain.
In addition, it would be great if we could do a photo
opportunity for you with our stellar Marine Security Guard
detachment (six and one) before leaving the Embassy. Outside
the U.S. Mission, you will see Spanish Chief of Defense
(CHOD) GEN Felix Sanz Roldan. We hope to secure appointments
with Minister of Defense Jose Antonio Alonso and other key
interlocutors. If time permits, I recommend you visit the
Spanish Naval Museum. Finally, GEN Sanz and I will accompany
you to your evening audience with King Juan Carlos I. I
would be privileged to host a larger dinner in your honor
thereafter to give you a chance to interact less formally
with the President of Spanish shipbuilder Navantia, Secretary
General for Defense Policy Luis Cuesta, the CHOD, the
Director General of Armament and Materiel who is also Spain's
National Armaments Director, and a host of Spanish Navy flag
officers. Spanish Chief of Naval Operations Admiral Zaragoza
has designated his deputy, ADM Beltran Bengoechea, to
represent him as Zaragoza will be out of the country during
your visit. On April 1, you will travel to Navantia's
shipyard in El Ferrol, in northwestern Galicia, for a full
schedule of briefings and a tour of the facility where the
Spanish Navy's F-100 class and Norwegian Navy's F-310 class
frigates are built. Our Spanish contacts are graciously
hosting this portion of your visit and will pull out all the
stops.

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SECURITY AND DIPLOMATIC COOPERATION
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3. (SBU) Spanish military cooperation matters. The bases of
Rota and Moron are strategic hubs, midway between the U.S.
and Afghanistan and Iraq. U.S. planes and ships account for
around 5,000 flights and 250 port calls a year in Spain. The
Spanish military is pro-U.S. and pro-NATO. The navy employs
the AEGIS system in its frigates and has been working for
five years to acquire the Tomahawk missile system. To date,
the Tomahawk sale has not been notified to Congress. Spain
is also interested in the Joint Strike Fighter. The GOS has
requested the LAIRCM aircraft protection suite, asking that
we treat their inquiry with the utmost sensitivity, and await
a response from the U.S. Air Force. We need to keep this

military-to-military relationship strong.


4. (C) Spain has nearly 800 troops supporting ISAF in the
Afghanistan theater of operations, to include a provincial
reconstruction team in Badghis province. They have
contributed some 150 million Euros in Afghan reconstruction
funds. Negotiations are underway to allow the Spanish to
train and equip an additional Afghan National Army company,
which we hope will be a prelude to the training and equipping
of a ull battalion. Looking ahead to the NATO Summit that
begins in Bucharest just a day after your visit ends, Spanish
President Zapatero has said he looks forward to discussing
issues of "shared interest" with President Bush. The United
States and the Allies are looking to Spain and other
ISAF-contributing countries to step up and do even more, by
providing Guardia Civil personnel, maneuver forces, and
police and other trainers to Afghanistan. On Iraq, Spain has
contributed $22 million to the Basrah Children's Hospital and
a further $28 million in development funding for Iraq. Spain
has nearly 1,100 troops with UNIFIL in Lebanon, over 500 in
Kosovo, and 260 in Bosnia. As of December 2007, a Spanish
general commands Operation Althea or EUFOR, the EU Mission in
Bosnia. Spain has also offered two transport aircraft and
logistics support personnel to the EU Mission to Chad.


5. (SBU) On the diplomatic front, Spain in recent years has
more often been a follower than a leader, looking to stay
within EU consensus on issues such as Iran and missile
defense. Spain has yet to recognize Kosovo, having resisted
doing so prior to Spain's March 9 elections. It is concerned
about what it calls the "legality" of the unilateral
declaration of independence and the potential example to
Basque and Catalan nationalists in Spain. Nonetheless, its
commitment to KFOR and the EU mission to Kosovo remains firm.
Spain is more forward-leaning on the Middle East peace
process, undoubtedly driven by FM Moratinos' long personal
involvement in the issue. Moratinos was an eager participant
in the Annapolis Conference and helped ensure Spain made a
robust pledge of support for the Palestinian Authority during
the recent Paris donors' conference. Driven by the twin
threats of terrorism and illegal immigration, Spain is also
increasing its engagement with the countries of North and
Western Africa.

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SPANISH MILITARY SALES TO VENEZUELA
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6. (S/NF) You will recall that in November 2005, Venezuela
signed a USD $1.5 billion deal with Navantia, formerly Izar,
for the purchase of four ocean-going patrol ships and four
Coast Guard-type high seas patrol ships. The missions of
these ships will reportedly be vigilance and protection of
the fishing zones, drug enforcement, anti-smuggling
operations, and protection of maritime traffic. The first
two boats are under construction at San Fernando, in the Bay
of Cadiz, in southern Spain. All eight vessels are on track,
with the first scheduled for delivery in September 2008.
Navantia plans to deliver the remaining BVL Coastal Patrol
Boats as follows: one in January 2009, one in July 2009, and
one in January 2010. The POVZEE Ocean Patrol vessel will be
delivered as follows: one in December 2009, one in June
2010, one in December 2010, and one in June 2011. Despite
the fact the first keel has been laid, we are on the lookout
for any indications of diminished Spanish political will to
go through with these sales, and any hint that Venezuela
might yet back out. Our contacts in Spain's Ministry of
Foreign Affairs share our concerns about the increasingly
confrontational and undemocratic behavior of Venezuelan
President Hugo Chavez. Chavez's rudeness toward the Spanish
delegation at an Ibero-American Summit in Chile in November
2007 forced the Spanish King to ask him to "shut up."
Venezuela's alleged involvement in supporting the FARC and
Chavez's interference in the early March escalation of
tensions between Colombia and Ecuador have also received
negative coverage here.


7. (S/NF) Latin American press reporting from as early as May
2006 references Venezuelan interest in Spanish submarines.
We now have reason to believe Venezuela is talking to
Navantia about a possible submarine sale (ref B). At the

quarterly Management Group Meeting (MGM) for the F-100
program hosted by Navantia from February 12-14 in San
Fernando, Spain, a senior-level Navantia employee indicated
Navantia was working with Venezuela on different projects and
that Venezuela was interested in the Spanish- and
French-built Scorpene. Without initiating discussion of this
potential Venezuelan project, I would nonetheless like to
seize any opportunity that may present itself during your
visit to El Ferrol and your discussions with Navantia to
question Spain's continued defense sales to such an
unreliable and erratic partner.

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POLITICAL OUTLOOK POST-SPANISH ELECTIONS
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8. (C) The Spanish Socialist Workers' Party (PSOE) was the
victor in the March 9 general election (ref A),winning 43.64
percent of the vote. The electoral campaign was closely
fought, despite a relatively strong economy, a budget
surplus, and a variety of social spending initiatives.
Though foreign affairs is not a key issue for most voters,
the PSOE reminded Spanish voters it got Spain out of Iraq.
Voting was without incident, although on March 7 a former
PSOE city councilman, Isaias Carrasco, was shot dead in the
Basque Country town of Mondragon. Although there has been no
claim of responsibility, everyone assumes ETA was
responsible. The murder led to widespread calls for voters
to turn out in force as a way of protesting the murder and
may have slightly pushed up voter participation, which was
more than 75 percent. President Jose Luis Rodriguez
Zapatero, in power since 2004, must now form alliances to
reach the absolute majority required to govern. The PSOE's
votes translated into 169 congressional seats out of a total
of 350. Congress is set to convene April 1, during your
visit, and the King will almost certainly ask Zapatero to
form a government. Since he is seven seats short of an
absolute majority, Zapatero will have to negotiate a pact
with one or more of the smaller parties. He is likely to
form a pact with the Basque Nationalist Party (PNV),which
has six seats. It is possible he will also pact with the
Galician Nationalist Bloc (BNG),but the BNG only has two
seats out of 350. In any case, we expect Zapatero will again
be sworn in as President of Government around April 9. In
the week following the election, he received a congratulatory
letter and phone call from President Bush, which he was quick
to publicize.

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CONCLUSION
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9. (C) Again, I am looking forward to your visit. It will be
the first and highest-level of several distinguished U.S.
military visits during the first week in April, and as such
it presents an opportunity to set the tone for cooperating
with the second Zapatero government from its earliest days.
It will also help us set the bar high for Spain going into
the NATO Summit in Bucharest. We need to remind Spain that
our naval cooperation reinforces a bilateral relationship
that is founded on strong mutual interests such as
counter-terrorism and law enforcement. Terrorists, drug
traffickers, and alien smugglers will continue to see both
our countries as targets, the people of Afghanistan will
continue to need our help, and undemocratic leaders like Hugo
Chavez are unlikely to be good stewards of our collective
military resources. We have much work to do together.
AGUIRRE