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### Viewing cable 08MADRID6, SPAIN SCENESETTER FOR CODEL LIEBERMAN - CORRECTED

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MADRID6 | 2008-01-02 11:11 | 2010-12-08 23:11 | UNCLASSIFIED | Embassy Madrid

`

    VZCZCXRO3110
    PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
    DE RUEHMD #0006/01 0021151
    ZNR UUUUU ZZH
    P 021151Z JAN 08
    FM AMEMBASSY MADRID
    TO RUEHC/SECSTATE WASHDC PRIORITY 4032
    INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
    RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 0329
    RUEHBUL/AMEMBASSY KABUL PRIORITY 0157
    RUEHLA/AMCONSUL BARCELONA PRIORITY 3223

` `

    UNCLAS SECTION 01 OF 04 MADRID 000006

    SIPDIS

    SIPDIS

    FOR H - PLEASE PASS TO CODEL LIEBERMAN

    E.O. 12958: N/A
    TAGS: OREP PREL SP
    SUBJECT: SPAIN SCENESETTER FOR CODEL LIEBERMAN - CORRECTED
    CABLE PARAGRAPH 13

    MADRID 00000006 001.2 OF 004

    ¶1. (SBU) Summary: I warmly welcome Senator and Mrs.
    Lieberman to Madrid. When you arrive, Spain will be emerging
    from the Holidays and starting to focus on what is likely to
    be a very competitive March 9 general election. Although the
    media here prefers to focus on differences in the U.S.-Spain
    relationship resulting from Spain's 2004 withdrawal from
    Iraq, cooperation is excellent in areas of common interests -
    fighting terrorism and organized crime, strengthening NATO
    and the Transatlantic security relationship, and in promoting
    the spread of democracy in many areas of the world. As the
    Hispanic population of the United States continues to grow,
    and as Spanish increasingly becomes our second national
    language, Spain has the potential to be an even closer U.S.
    partner. End summary.

    Counter-Terrorism and Law Enforcement
    -------------------------------------

    ¶2. (SBU) U.S.-Spain relations were seriously damaged by
    President Zapateros's decision soon after his reelection in
    2004 to precipitously withdraw Spanish forces from Iraq.
    However, over the last several years both countries have made
    a concerted and successful effort to rebuild the relationship
    based on strong mutual interests in counter-terrorism,
    fighting narcotics trafficking and organized crime, and
    rapidly expanding economic ties. The real bilateral story is
    found in novel initiatives such as the HSPD-6 agreement we
    signed in September to facilitate the sharing of information
    between our national counter-terrorism authorities. Spain is
    home to a large and growing Muslim population. The March 11,
    2004, train bombings were a shock to Spain (21 of the
    suspects were convicted here in October). Spain remains a
    target of Islamic extremists; al-Qaeda has called for attacks
    to recapture the medieval "Al Andalus". The Spanish are
    actively pursuing Islamic extremist terrorism-related
    investigations and have scores of suspects in jail. Neither
    has the threat of ETA terror gone away: two Spanish Civil
    Guard officers were murdered in France in early December by
    the Basque terrorist group.

    ¶3. (SBU) Narcotics trafficking is another area of common
    concern. Andean cocaine is a serious problem here, and
    Colombian trafficking organizations are active in Spain.
    Money laundering is another serious issue. 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.

    Security and Diplomatic Cooperation
    -----------------------------------

    ¶4. (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. Spain is
    also interested in the Joint Strike Fighter. We need to keep
    this military-to-military relationship strong.

    ¶5. (SBU) Spain has 750 troops with ISAF in Afghanistan and a
    provincial reconstruction team in Badghis province. They
    have contributed some 150 million Euros in Afghan
    reconstruction funds. Planning is underway to allow the
    Spanish to train and equip an Afghan Army company, which we
    hope will be a prelude to the training and equipping of a
    full battalion. 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 and about 700 in Kosovo.

    ¶6. (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 Kosovo, Iran, and
    missile defense. It 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.

    ¶7. (SBU) Spain is second only to the U.S. in terms of
    economic and political influence in Latin America. Spain

    MADRID 00000006 002.2 OF 004

    wants strong democratic and free market institutions in the
    region. Nevertheless, we have sharp differences over Cuba.
    Spain's socialist government has opted for engagement,
    claiming it can encourage regime elements who want change.
    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. At the most recent Iberoamerican
    Summit, King Juan Carlos publicly interrupted a Chavez tirade
    about former Spanish President Aznar, telling the Venezuelan
    President to "shut up." The government is uncomfortably
    situated between Spanish companies who fear Chavez will move
    against their Venezuela interests and the strong public
    support for the King.

    Economy
    -------

    ¶8. (SBU) Spain has one of the fastest growing economies in
    Europe. In fact, the economy has grown in each of the last
    15 years, and per capita GDP passed Italy's in 2006. In the
    last several years, a housing boom has contributed greatly to
    growth, but as elections approach, housing prices are
    stagnating, construction is slowing, and unemployment and
    inflation are staring to creep up. U.S. investment has long
    been important to the economy (more so than bilateral trade),
    but the tables have turned. This year, Spain has been the
    fourth largest foreign investor in the U.S., with particular
    emphasis in banking, construction, and renewable energy. In
    the latter sector, Spain has the world's largest and third
    largest wind power firms, and Spanish firms also are active
    in U.S. solar and biofuels projects.

    Elections
    ---------

    ¶9. (SBU) Spain will hold a general election March 9, and the
    campaign will just be heating up as you arrive. The ruling
    Spanish Socialist Workers' Party (PSOE) candidate is
    President Jose Luis Rodriguez Zapatero. Despite a strong
    economy, a budget surplus, and a variety of social spending
    initiatives, the early polls indicate a close race.
    Nevertheless, the polls also suggest Partido Popular (PP)
    candidate Mariano Rajoy has had limited success getting his
    message out. The PSOE will run on the economy and its social
    programs. The PP will argue the economy is softening and
    that the PSOE has made too many concessions to Basque and
    Catalan regional governments, is weak on ETA, and soft on
    illegal immigration. Foreign affairs is unlikely to be a key
    issue, but the PSOE will remind voters it got Spain out of
    Iraq while the PP will say Spain's international prestige has
    slipped.

    Jewish Community in Spain
    -------------------------

    ¶10. (SBU) Full religious freedom only returned to Spain in
    1978 with the establishment of a democratic constitution. In
    practice, Spain is still an overwhelmingly Catholic country,
    although Protestant and Islamic believers are increasingly
    important demographically. Estimates of the size of the
    Jewish community in Spain vary from 50,000 to 100,000
    faithful, primarily concentrated in urban areas including
    Madrid and Barcelona. The Spanish Federation of Jewish
    Communities (FCJE) signed an agreement with the Spanish
    government in 1992 establishing Judaism as one of the "deeply
    rooted faiths" of Spain. Certain local and regional
    governments, among them Toledo, Segovia, and Sevilla, have
    sought to capitalize on Jewish tourism by publicizing the
    romantic aspects of the Sephardic community in
    pre-Inquisition Spain while downplaying the expulsion.
    Nevertheless, anti-Semitism remains an undercurrent in Spain;
    swastikas and other graffiti appear periodically on buildings
    and in neighborhoods associated with Judaism or the
    pre-expulsion Sephardic presence. Neo-Nazi propagandists and
    ultra-rightists remain present in Spain, most significantly
    along the Mediterranean coast in Valencia and Barcelona, but
    also in all major cities. In Madrid, skinheads, Falangists
    and Franco supporters make their presence known through
    infrequent demonstrations and marches, as well as by
    harassing the growing immigrant population.

    ¶11. (SBU) The USG is currently engaging with the GOS over the
    2007 exhumation of three pre-expulsion Sephardic cemeteries
    in Andalucia and Catalunya. In each case the cemeteries were

    MADRID 00000006 003.2 OF 004

    uncovered by accident during excavation for construction or
    road projects, and in each instance the local authorities did
    not handle the graves in keeping with strict Jewish dictates,
    more likely out of ignorance than malice. Based on interest
    from concerned Americans, among them Representative Edolphus
    Towns, Chairman Warren Miller of the U.S. Commission for the
    Preservation of America's Heritage Abroad, and Rabbi David
    Niederman of the United Jewish Organization, I, my DCM and
    our Consul General in Barcelona have expressed our concern to
    the Spanish government that these culturally and religiously
    sensitive sites need to be protected and handled in a manner
    in keeping with the wishes of the Jewish community in Spain.
    Because each municipal government has jurisdiction in affairs
    dealing with cemeteries, the government has sought to place
    the responsibility on each local jurisdiction. The FCJE and
    local Jewish organizations have lobbied the national and
    local governments to enact a national protocol for addressing
    any future excavations and are hoping to secure funding to
    research the location and condition of other cemeteries that
    have been lost for centuries. The exhumed remains have since
    been re-interred in other Jewish cemeteries with religious
    authorities present.

    ¶12. (SBU) Critics have accused the Spanish government of
    taking anti-Israel stances with respect to both the Middle
    East Peace Process and the 2006 Israel-Lebanon conflict,
    while the government has strongly refuted allegations of
    anti-Semitism and Israel bashing. Spain's Foreign Minister
    Moratinos is a frequent visitor to the region, and he made a
    controversial visit to Damascus and Beirut in 2007 in which
    he was photographed with the number two of Hizballah.
    Nevertheless, he claims to enjoy a good relationship with
    Israeli FM Livni and is planning a fence-mending trip to
    Israel in the coming months.

    Pisarro Painting Claim
    ----------------------

    ¶13. (SBU) During your conversation with Ambassador Ana
    Salomon, you may wish to mention the claim of Claude
    Cassirer, an elderly American citizen, for a Camille Pissarro
    painting ("Rue Saint Honore") now at the Thyssen Bornemisza
    Museum in Madrid, Spain's appeal of a U.S. district court
    ruling that U.S. courts have jurisdiction is now before the
    9th Circuit. The Nazis forced Mr. Cassirer's grandmother to
    sell the painting in 1939. Baron Hans Heinrich
    Thyssen-Bornemisza acquired it in 1976. In the early 1990's,
    the Spanish Government purchased the collection and built the
    current museum. In 1958, Mrs. Cassirer received a DM 120,000
    restitution payment for the disappearance and provisional
    dispossession of the painting, but retained full right to the
    painting. Were Mr. Cassirer to win his claim, he would be
    obliged to reimburse this amount to the German authorities.
    Pursuant to the 1998 Washington Conference Principles on Nazi
    Confiscated Art, Cassirer's attorneys offered to discuss the
    claim with the Government of Spain in 2002 but the government
    refused. Spain also refused to engage in a mediation process
    that was part of the district court proceedings. The
    Washington Conference accepted the Principles by consensus,
    in which the Spanish representative joined. Dealers,
    claimants and holders of artworks generally heed the
    principles. Spain correctly points out that the principles
    provide for states to "act within the context of their own
    laws", and notes that claimant has not filed a claim in
    Spain. But the Principles also call on parties to achieve
    just and fair solutions on an expeditious basis and to
    develop and use alternative dispute resolution mechanisms.
    In December 2007, Ambassador Salomon told Ambassador J.
    Christian Kennedy, the Special Envoy for Holocaust Issues,
    that the new Spanish Minister of Culture might take a more
    constructive view of this claim. In June 2005, the then
    Special Envoy raised the issue in Madrid with museum and
    government officials, to no avail. Earlier correspondence
    between the Envoy and the Spanish Ambassador in Washington
    was also without result. We recommend you urge Ambassador
    Salomon and others as appropriate to engage with Cassirer to
    find a mutually acceptable solution.

    Conclusion
    ----------

    ¶14. (SBU) Again, I am looking forward to your visit. While
    we want to avoid being an issue in the Spanish elections, we
    do need to remind Spain that the bilateral relationship is
    founded on strong mutual interests such as counter-terrorism
    and law enforcement. Regardless of who wins in March,
    terrorists, drug traffickers, and alien smugglers will

    MADRID 00000006 004.2 OF 004

    continue to see both our countries as targets. We have much
    work to do together.
    AGUIRRE

`