Identifier
Created
Classification
Origin
08ROME323
2008-03-14 11:46:00
CONFIDENTIAL
Embassy Rome
Cable title:
IRAN: FM D'ALEMA SAYS ITALY FED UP WITH EU3;
how-toVZCZCXRO5083 OO RUEHBC RUEHDE RUEHDIR RUEHFL RUEHKUK RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHRO #0323 0741146 ZNY CCCCC ZZH O 141146Z MAR 08 FM AMEMBASSY ROME TO RUEHC/SECSTATE WASHDC IMMEDIATE 9985 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHFL/AMCONSUL FLORENCE PRIORITY 2955 RUEHMIL/AMCONSUL MILAN PRIORITY 9298 RUEHNP/AMCONSUL NAPLES PRIORITY 3106
C O N F I D E N T I A L ROME 000323
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/13/2018
TAGS: PGOV KNNP PARM EUN IR IT
SUBJECT: IRAN: FM D'ALEMA SAYS ITALY FED UP WITH EU3;
EXPLAINS BANK MELLI OBJECTION
REF: 07 ROME 2477
Classified By: Ambassador Ronald P. Spogli for reasons 1.4 b and d.
C O N F I D E N T I A L ROME 000323
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/13/2018
TAGS: PGOV KNNP PARM EUN IR IT
SUBJECT: IRAN: FM D'ALEMA SAYS ITALY FED UP WITH EU3;
EXPLAINS BANK MELLI OBJECTION
REF: 07 ROME 2477
Classified By: Ambassador Ronald P. Spogli for reasons 1.4 b and d.
1. (C) In a one-on-one meeting March 13, the Ambassador told
FM D,Alema that Italy,s tactics on Iran were not working )
instead Italy was being isolated. D,Alema replied that
Italy didn,t want to be told again by a small group of
countries what it had to do without having any input. He
said others in the EU agreed with Italy's position and that
12 countries had supported Italy at the March 10 GAERC.
D,Alema continued that Italy didn,t have to be part of the
P5 plus one, but did need to be included in some kind of
wider consultation regarding EU and UNSC policy on Iran.
2. (C) Regarding Bank Melli, D'Alema said Bank Melli is
involved in a one billion USD contract to produce rail cars
for export to Iran and that between 4,000 and 6,000 jobs in
Sicily and Calabria depend on this contract. The Ambassador
asked if consulted to its satisfaction, what steps Italy
would take in general and on Bank Melli in particular.
3. (C) D,Alema said Italy would support the position
against Bank Melli, but needed time to find a way to get Bank
Melli &out of the equation" i.e. to restructure the rail car
deal so it could go forward without the involvement of Bank
Melli. More time would be helpful. He concluded by saying
that the heart of the matter for Italy was the EU process.
Italy was tired of having three of its EU partners telling
Italy what to do. Italy is taking it on the chin, he said,
while others continued to be involved in profitable business
deals with Iran.
4. (C/NF) Comment: This is the first we have heard of the
one billion dollar rail deal. D'Alema could be referring to
a 200 million Euro deal for rail cars the Italian company
Keller Meccanica, located in Sardinia, inked with the
government of Iran. SACE's chief economist told econoff on
February 29 that SACE had moved their transactions away from
U.S. sanctioned entities and did not see economic
repercussions from additional EU or UN sanctions on specific
entities. It is highly unlikely that an export involving
such a large sum could be written without some involvement
with SACE, the Italian Export Credit Agency. Over the past
year and a half, SACE officials, at all levels, have
repeatedly assured this Embassy, including the Ambassador
personally, that SACE is issuing no new export credits to
Iran. End Comment.
SPOGLI
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/13/2018
TAGS: PGOV KNNP PARM EUN IR IT
SUBJECT: IRAN: FM D'ALEMA SAYS ITALY FED UP WITH EU3;
EXPLAINS BANK MELLI OBJECTION
REF: 07 ROME 2477
Classified By: Ambassador Ronald P. Spogli for reasons 1.4 b and d.
1. (C) In a one-on-one meeting March 13, the Ambassador told
FM D,Alema that Italy,s tactics on Iran were not working )
instead Italy was being isolated. D,Alema replied that
Italy didn,t want to be told again by a small group of
countries what it had to do without having any input. He
said others in the EU agreed with Italy's position and that
12 countries had supported Italy at the March 10 GAERC.
D,Alema continued that Italy didn,t have to be part of the
P5 plus one, but did need to be included in some kind of
wider consultation regarding EU and UNSC policy on Iran.
2. (C) Regarding Bank Melli, D'Alema said Bank Melli is
involved in a one billion USD contract to produce rail cars
for export to Iran and that between 4,000 and 6,000 jobs in
Sicily and Calabria depend on this contract. The Ambassador
asked if consulted to its satisfaction, what steps Italy
would take in general and on Bank Melli in particular.
3. (C) D,Alema said Italy would support the position
against Bank Melli, but needed time to find a way to get Bank
Melli &out of the equation" i.e. to restructure the rail car
deal so it could go forward without the involvement of Bank
Melli. More time would be helpful. He concluded by saying
that the heart of the matter for Italy was the EU process.
Italy was tired of having three of its EU partners telling
Italy what to do. Italy is taking it on the chin, he said,
while others continued to be involved in profitable business
deals with Iran.
4. (C/NF) Comment: This is the first we have heard of the
one billion dollar rail deal. D'Alema could be referring to
a 200 million Euro deal for rail cars the Italian company
Keller Meccanica, located in Sardinia, inked with the
government of Iran. SACE's chief economist told econoff on
February 29 that SACE had moved their transactions away from
U.S. sanctioned entities and did not see economic
repercussions from additional EU or UN sanctions on specific
entities. It is highly unlikely that an export involving
such a large sum could be written without some involvement
with SACE, the Italian Export Credit Agency. Over the past
year and a half, SACE officials, at all levels, have
repeatedly assured this Embassy, including the Ambassador
personally, that SACE is issuing no new export credits to
Iran. End Comment.
SPOGLI