SCENESETTER FOR VISIT OF ADMIRAL THAD W. ALLEN,

C O N F I D E N T I A L MADRID 000502

SIPDIS

FOR ADMIRAL ALLEN

E.O. 12958: DECL: 05/06/2018
TAGS: PREL PTER SMIG SNAR SP
SUBJECT: SCENESETTER FOR VISIT OF ADMIRAL THAD W. ALLEN,
COMMANDANT, U.S. COAST GUARD, MAY 12-13, 2008

Classified By: CHARGE D'AFFAIRES HUGO LLORENS, REASONS 1.4(B) AND (D).


1. (SBU) Summary: The Embassy Madrid Country Team warmly
welcomes your visit. It will provide an important
opportunity to highlight the importance we place on the
relationship, particularly as it concerns our strategic
interests such as the fight against terrorism and
transnational crime. We also enjoy a strong military to
military relationship. Spain has long fought a domestic
terrorist threat from ETA and suffered tragically from
Islamic extremism in the 2004 Madrid train bombings.
Additionally, Spain is a key market and point of entry to
Europe for Latin American narcotics traffickers and faces a
large and growing challenge from illegal immigration and
alien smugglers. We have a great deal in common when it
comes to counter-terrorism and law enforcement, and we need
to be innovative in finding new and improved avenues for
bilateral cooperation against the common threats we face.
End summary.

Itinerary
--------------


2. (C) In addition to a Country Team briefing, you will be
meeting with Spanish Chief of Naval Operations Admiral
General Sebastian Zaragoza. Zaragoza has been CNO since
2004, and may be replaced this year, although nothing has
been announced. Zaragoza is a good friend of the Embassy and
decidedly pro-U.S. He speaks warmly of the Eisenhower
Administration's decision to seek a closer relationship with
Spain, which he says marked the beginning of the
modernization of the Spanish Navy. Zaragoza's commands at
sea included a minesweeper, a rescue vessel, and a frigate.
On shore, he served with NATO in Naples (the first Spanish
officer to do so) and has been Chief of Plans for the Defense
Staff, Chief of Staff for the Director of Defense Policy,
President of the Spanish Section of the U.S.-Spain Permanent
Committee (which administers our bilateral defense
cooperation agreement),and Chief of the Plans Division of
the Navy Staff.


3. (C) You will also meet with the new Director General of
the National Police and Civil Guard, Francisco Javier
Velasquez. He has been on the job for three weeks. His
background is political rather than law enforcement. His
most recent position was Secretary of State for Tourism. Not
only is Velasquez new to the job, but the job is relatively
new to Spain. The Director General (Mando Unico) was created
in 2005 with a view towards encouraging Spain's two national
police forces to work more harmoniously. This is a work in
progress.

Counter-Terrorism
--------------


4. (C) Spain is an al-Qaeda target and a critical player in
U.S.-EU counter-terrorism efforts due to its proximity to the
Maghreb and a population that includes more than one million
Muslims, mostly immigrants. Al-Qaeda has called for attacks
to recapture the medieval "Al Andalus." The Spanish enclaves
of Ceuta and Melilla in Morocco are a fixation for some
extremists. On March 11, 2004, Madrid suffered bloody train
bombings perpetrated by Islamic extremists. The Spanish
Government considers the threat from Islamic terrorism to be
one of its top national security priorities and has
identified numerous Islamic extremist groups operating within
its borders. The Spanish are actively pursuing Islamic
extremism terrorism-related investigations and have scores of
suspects in jail. Public opinion polling shows nearly three
quarters of Spaniards worried about the threat of Islamic
fundamentalism, more than in the U.S. or Europe as a whole.


5. (C) Bilateral cooperation is strong. Spain pursues an
aggressive agenda in law enforcement, judicial, and
information-sharing efforts with us. One example is the
HSPD-6 agreement we signed in 2007 to facilitate the sharing
of information between our national counter-terrorism
authorities. Spain participates in the Container Security
Initiative (in the ports of Algeciras, Barcelona, and
Valencia) and the Megaports Initiative to detect radioactive
cargo (in the port of Algeciras with anticipated expansion to
Barcelona and Valencia in the upcoming year). Spain also
participates in the Proliferation Security Initiative.
Stovepipes within the Spanish system and interagency
rivalries are a continuing challenge both for them and us.
In addition to the threat from Islamic extremists, Spain has
been fighting the domestic terrorists of the Basque
Fatherland and Liberty (ETA) for four decades.


Counter-Narcotics
--------------


6. (SBU) The Spanish Government ranks drug trafficking as one
of its most important law enforcement concerns and maintains
excellent relations with U.S. law enforcement. We are eager
to find ways to increase bilateral cooperation and to
encourage Spain to engage more aggressively with law
enforcement authorities in key Latin American countries.
Spain remains the principal entry, transshipment, and
consumption zone for the large quantities of South American
cocaine and Moroccan cannabis destined for European consumer
markets, and is also a major source and transit location for
drug proceeds returning to South and Central America.
Colombia appears to be the largest supplier of cocaine from
Latin America, although some information suggests an increase
in shipments from Bolivia, via Venezuela and Argentina by
vessel or plane to the Iberian Peninsula. Spain's strategic
location, combined with the lack of a language barrier, has
enabled South American drug trafficking organizations to
establish themselves with relative ease.


7. (SBU) Spain also faces a sustained flow of hashish from
its southern neighbors, Morocco and Algeria, which makes
maritime smuggling across the Mediterranean a large-scale
business. Seizures of multi-ton loads of Moroccan hashish
are not uncommon, some of it brought into Spain by illegal
immigrants. The majority of the heroin that arrives in Spain
is transported via the Balkan route from Turkey. The
National Police have identified established Turkish
trafficking organizations that distribute the heroin once it
is smuggled into Spain. For two years in a row, Spanish
authorities have seized near-record amounts of cocaine and
heroin. Many of the more significant seizures were a result
of the close cooperation between the Spanish authorities and
the DEA Madrid Country Office. In May 2007, Spain hosted the
International Drug Enforcement Conference (IDEC) in Madrid,
the first time IDEC had been held outside of the Western
Hemisphere. Also in 2007, Spain and six other EU countries
deepened their counter-narcotics cooperation by signing an
international agreement creating the Maritime Analysis and
Operations Center (MAOC),headquartered in Lisbon.

Law Enforcement Agencies
--------------


8. (C) There is no exact USCG equivalent in Spain. The
premier Spanish law enforcement agencies are the National
Police and the Civil Guard, both of which fall under the
Ministry of Interior. Their jurisdictions overlap to a
significant degree, although historically the Civil Guard has
a stronger presence in rural areas and small towns. Both
agencies have investigative jurisdiction over all types of
crimes including alien smuggling, human trafficking,
terrorism and terrorist financing, and narcotics. The
National Police also have jurisdiction over documentation for
nationals and foreigners (passports, residence cards, and
national identity documents). The Civil Guard's authorities
include contraband and customs control. The Spanish Customs
Service, under the Ministry of the Treasury, also carries a
mandate to enforce anti-drug legislation at Spain's borders
and in Spanish waters. Spain's Organized Crime Intelligence
Center (CICO) coordinates (with varying degrees of success)
counter-narcotics operations among various government
agencies, including the National Police, Civil Guard, and
Customs Service. Although it does not have a domestic law
enforcement function, the Spanish Navy acts on the high seas
and also has assets operating in coastal waters.


9. (C) Spanish authorities maintain active links with
JIATF-S. The Commander of USSOUTHCOM and the Director of
JIATF-S both visited Spain in 2007 to encourage even greater
cooperation, and the Spanish Chief of Defense will visit
USSOUTHCOM this month. We hope these interactions will yield
concrete results in terms of greater Spanish engagement in
interdicting the flow of drugs and money from and to Latin
America. CICO has a liaison officer assigned to JIATF-S.
DEA Madrid works closely with Spanish counterparts to
follow-up on information shared between DEA Tampa, which
handles PANEX North, and JIATF-S. Operation
All-Inclusive-Spain, from February to May 2007, was an
excellent example of such cooperation.

Immigration and Alien Smuggling
--------------


10. (U) Historically Spain received few immigrants, but the

rapidly increasing prosperity of recent decades has changed
that. Immigrants now account for about ten percent of the
population. There are over three million registered
immigrants. Latin America (mainly Ecuador, Colombia,
Bolivia, and Argentina) is the largest source region. There
is also a strong Romanian element. However, the single
largest nationality is Moroccan, with 600,000 registered.
There is also a large Pakistani community -- more than 60,000
living in the Barcelona area alone -- most of them
unaccompanied young men. In general, Spain has been
welcoming to immigrants (many Latin Americans have found
their way into the military),but a souring economy may
change that. Spain is also awakening to the danger illegal
immigration represents in terms of terrorism and organized
crime. Reports of illegal immigrants arriving from North
Africa via mother ships receive significant press play as do
frequent arrivals of boatloads of illegal immigrants in the
Canaries. The Civil Guard has responsibility for policing as
well as social and humanitarian functions with respect to
illegal immigration. Of the three routes for illegal
immigration (air, land, and maritime),the maritime flow has
expanded most significantly with the appearance of small
boats (pateras or cayucos). During the Summer of 2006 these
small boats carried over 30,000 illegal immigrants to the
Canaries. The Civil Guard manages a coordination and
communications center in Las Palmas. From this center,
Spanish and EU air and sea operations are directed against
maritime alien smuggling. The center's objectives are
deterrence, interdiction, and rescue. The center has brought
about a significant reduction in illegal immigration to the
Canary Islands. Members of the National Police and Civil
Guard are also deployed in Africa (Morocco, Cape Verde,
Senegal, and Mauritania) in Project Sea Horse. This includes
liaison, equipment, and training. Numerous other projects
are underway to work in concert with other countries to stem
the flow of illegal immigration (e.g., joint projects with
Morocco related to Ceuta and Melilla, FRONTEX, and the
Euro-Africa Conference).

Military and Diplomatic Cooperation
--------------


11. (C) Spanish military cooperation is important. 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
over 4,000 flights and 250 port calls a year in Spain. The
Spanish military, particularly the Navy, is pro-U.S. and
pro-NATO. The Navy employs the AEGIS system in its frigates,
is eager to acquire Tomahawk, and is interested in the Joint
Strike Fighter. Spanish defense industry is a supplier to
the U.S. As you know, the USCG has so far bought eight
EADS-CASA CN-235-300M maritime patrol aircraft ($245 million
total). Although the Zapatero government has imposed a
ceiling of 3,000 on troop deployments, Spain has troops in
Lebanon (1,100),Afghanistan (750),Kosovo (500),Bosnia
(260),and a smattering of others in various UN & EU observer
missions.


12. (C) 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. Nonetheless,
its commitment to KFOR remains firm. Spain is supportive of
U.S. efforts towards Middle East peace. Driven by the twin
threats of terrorism and illegal immigration, Spain is also
increasing its engagement with the countries of North and
Western Africa.


13. (C) Spain invests heavily in Latin America and wields
significant influence there. Like the U.S., Spain wants
strong democratic and free market institutions in the region.
We have sharply differing views on Cuba. Spain believes it
can encourage change via engagement. We take every
opportunity to remind the Spanish that the Cuban regime is
only interested in survival and that the Cuban dissidents
need and deserve the active and visible support of
democracies everywhere. On Venezuela, the socialists' early
efforts at constructive engagement with Chavez have gone
sour. Nevertheless, Spain appears to be going ahead with the
sale of four ocean-going patrol ships and four Coast
Guard-type high seas patrol ships (plans to sell aircraft to
Venezuela were scuttled when the U.S. objected to the
transfer of U.S. technology in the aircraft).

Political and Economic Climate
--------------


14. (C) President Zapatero's center left Spanish Socialist

Workers, Party (PSOE) was the victor in the March 9 general
election. Zapatero's new cabinet includes Spain's first-ever
female Minister of Defense, Carme Chacon. Alfredo Perez
Rubalcaba will remain in place as Minister of Interior. The
principal opposition party remains the center right Popular
Party (PP). The Spanish public is skeptical of U.S. foreign
policy but supportive of good bilateral relations.


15. (SBU) Spain has enjoyed one of the fastest growing
economies in Europe, but growth is slowing significantly. A
housing boom that had contributed greatly to growth for
several years ended abruptly last year and prices are
stagnating, construction slowing, and unemployment and
inflation rising. U.S. investment has long been important to
the economy (more so than bilateral trade),but the tables
have turned. In 2007, Spain was the fourth largest foreign
investor in the U.S., with particular emphasis in banking,
construction, and renewable energy.

Conclusion
--------------


16. (U) Again, we are looking forward to your visit. As the
second Zapatero government gets underway, we need to set the
stage for ever-improving cooperation in the fight against
terrorism and transnational crime. We face common threats,
the Spanish law enforcement and military services are
capable, and Spain sits in a strategic location. There is
much we can do together.
Llorens