ITALY: CONSIDERING FINANCIAL SUPPORT FOR HARIRI

C O N F I D E N T I A L SECTION 01 OF 02 ROME 000170 SIPDIS SIPDIS E.O. 12958: DECL: 02/06/2018 TAGS: PGOV PREL PHUM KDEM EFIN EINV LE SY IT SUBJECT: ITALY: CONSIDERING FINANCIAL SUPPORT FOR HARIRI TRIBUNAL; UNLIKELY TO REACH DECISION SOON REF: STATE 10786 Classified By: Political Minister Counselor Jonathan Cohen for reasons 1.4 b and d Summary -------------- ¶1. (C) Poloff delivered reftel points and dip note February 4 to MFA Levant Office Director Carlo Formosa who had just returned from a trip to Lebanon with MFA Director General for the Middle East Cesare Ragaglini. Formosa said Italy remains committed to Lebanon's stability, democracy, and economic development and was heavily invested both financially and militarily. He said Italy strongly supported the Special Tribunal and was considering a possible contribution, though given Italy's government crisis, would be unlikely to make any new commitments until a new Italian government is in place in the spring. He said Italy had no plans to publicly condemn Syrian or Iranian interference in Lebanon, but preferred to maintain a certain level of contact to encourage positive behavior changes. End Summary. Concern re Possible loss of Consensus for Sleiman -------------- -------------- ¶2. (C) Formosa reported that during their January 31 - February 2 trip he and Ragaglini met with PM Siniora, Parliament President Berri, LAF Commander Sleiman, Saad Hariri, Maronite Patriarch Sfeir, outgoing Energy Minister Fneish, Defense Min. Murr, Social Affairs Min. Nayla Muawwad, Telcon Min. Marwan Hamade, Shaikh Muhammad Rashid Kabbani, interim president of Shiite Supreme Council Abd al-Amir Qabalan, and Samir Geagea and Amin Gemayel. Formosa said Italy was concerned to hear that Hizballah and possibly Aoun were withdrawing support for LAF Commander Sleiman's presidential candidacy. Without a consensus candidate, Formosa said he saw no way out of the deadlock. Even with consensus on a presidential candidate, he doubted the parties could reach consensus on cabinet composition, and didn't think the opposition would accept anything less than a 10-10-10 distribution of cabinet positions. Economic Assistance for Tribunal & Lebanon -------------- ¶3. (C) Formosa expressed Italy's strong support for the international tribunal and noted that the GOI was in the process of considering a contribution. However, he said a decision would be unlikely until a new Italian government took office (note. elections will be held in mid-April with a new government expected to take office by early-to-mid May. end note.) He noted that during discussions in Beirut he found wide-spread support for the Tribunal, even from pro-Syrian figures which caused him to question the Tribunal's efficacy as a "stick" for Syria. ¶4. (SBU) Lebanon Desk officer Michele Tommasi provided poloff a list of all Italian foreign assistance in Lebanon in 2007-2008 to demonstrate the already significant effort Italy is making on this front. According to the list, in 2007-2008 Italy provided: 132 million euro in "soft loans"; 5 million euro in regularly planned aid for agriculture and health; distributed an additional 30 million euro in 2007 that were pledged during the 2006 Stockholm conference for post-conflict reconstruction (including 5 million euro to the Lebanese government for reconstruction of the Sofar bridge on the Beirut-Damascus highway). Italy has disbursed 30 million of its 120 million euro 2007 Paris Donors Conference pledge which included 10 million euro in direct assistance to the Lebanese government for recovery, reconstruction, and reform. In 2008 Italy will disburse the remaining 90 million euro pledged at Paris and has asked parliament for a new annual allotment of 25 million euro. Formosa underscored Italy's large commitment to UNIFIL, noting that Italy remains the single largest troop contributor with over 2500 troops. GOI to Continue Public Support for Lebanon... -------------- ¶5. (SBU) Formosa said Italy would continue to make strong public statements in support of PM Siniora and the need for unconditional presidential elections. He noted that in January 2008, FM D'Alema had made four public statements expressing "vivid solidarity" with the government of Lebanon, calling for an end to the political/institutional stalemate by electing a President, and stating "Italy's intent to remain engaged to protect Lebanon's autonomy, sovereignty and independence." But unlikely to Publicly Condemn Syria/Iran ROME 00000170 002 OF 002 -------------- ¶6. (C) Formosa said the GOI was unlikely to make public statements condemning Syrian and Iranian interference in Lebanon or to threaten sanctions against Syria. He said Italy remained convinced that constructive engagement was more productive than public isolation. In Italy's analysis, isolation of Syria would not likely prompt a positive behavior change and would probably push Syria closer to Iran. He noted that Ragaglini explained to local media in Beirut (when asked) that Italian contacts with Syria and Iran were "not at Lebanon's expense" but rather efforts to support Lebanon's future. Due to the government crisis, the GOI had no plans to make any senior-level bilateral visits anywhere including Syria and/or Iran. SPOGLI