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### Viewing cable 09ROME1048, SCENESETTER FOR ITALIAN MINISTER CLAUDIO SCAJOLA'S

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09ROME1048 | 2009-09-11 11:11 | 2011-03-21 11:11 | CONFIDENTIAL//NOFORN | Embassy Rome

`

    VZCZCXRO3347
    PP RUEHAG RUEHROV RUEHSL RUEHSR
    DE RUEHRO #1048/01 2541139
    ZNY CCCCC ZZH
    P 111139Z SEP 09
    FM AMEMBASSY ROME
    TO RUEHC/SECSTATE WASHDC PRIORITY 2645
    INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
    RUEHFL/AMCONSUL FLORENCE PRIORITY 3784
    RUEHMIL/AMCONSUL MILAN PRIORITY 0214
    RUEHNP/AMCONSUL NAPLES PRIORITY 3993
    RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
    RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 03 ROME 001048

    NOFORN
    SIPDIS

    DOE FOR ENERGY SECRETARY CHU
    DOE FOR A/S DAVID SANDALOW
    DOE FOR INTERNATIONAL ENERGY COOPERATION DAS YOSHIDA
    DOE FOR OFFICE OF NUCLEAR ENERGY DAS MCGINNIS
    DOC FOR ENERGY, ...

    SUBJECT: SCENESETTER FOR ITALIAN MINISTER CLAUDIO SCAJOLA'S
    VISIT TO WASHINGTON

    REF: A) ROME 878 B) ROME 678 C) ROME 283 C) 08 ROME
         1191

    ROME 00001048  001.2 OF 003

    Classified By: A/DCM Barbara Leaf for reasons 1.4b and d

    1.(C/NF) SUMMARY: Italian Economic Development Minister
    Claudio Scajola will visit Washington September 29 as part of
    a week-long tour of the United States. Scajola is one of
    Italy's most powerful cabinet officers. He and his staff have
    told us that they consider this a very important visit. The
    key event will be a September 29 meeting with Energy
    Secretary Chu. At this meeting Scajola hopes to sign
    agreements on research and development and on industrial
    cooperation on nuclear power.  Scajola's visit is an
    excellent opportunity to promote and protect the rights of
    U.S. firms that wish to participate in Italy's multi-billion
    dollar nuclear power project. This is also an opportunity for
    us to push for greater Italian cooperation on European Energy
    Security, and to ask for Scajola's support for the launch in
    Italy of DoE's Megaports (radiation detection in container
    ports) program. The Italian delegation is also seeking a
    meeting with USTR Kirk and hopes to raise several
    economic/commercial issues. Given the importance that GOI
    officials are attaching to Scajola's trip, and its potential
    for advancing key pieces of our bilateral agenda, post urges
    Washington agencies to assist the Italian Embassy in making
    sure that the visit proceeds smoothly. End Summary

    SCAJOLA TO THE U.S.
    ------------------

    ¶2. (C/NF) On September 27, Claudio Scajola, Italy's Minister
    for Economic Development, will travel to the United States.
    Scajola's long-planned and several times delayed trip comes
    in part as a follow-up to his meeting in Rome this Spring
    with U.S. Energy Secretary David Chu (at the G8 Energy
    Ministerial). Scajola, a long-time collaborator of Prime
    Minister Silvio Berlusconi, heads what amounts to a
    super-ministry in the GOI.  Although his title is Minister
    for Economic Development, his portfolio does not include
    overseas development assistance.  Instead, he has
    responsibility for a very wide range of Italian economic and
    commercial activity, including telecommunications, energy,
    trade, and intellectual property rights.  He is Italy's de
    facto Energy Minister.

    MEETING AT DOE WITH SECRETARY CHU
    ----------------------------------

    ¶3. (C/NF) The centerpiece of Scajola's visit will be his
    September 29 call on Secretary Chu. Scajola's staff
    frequently remind us of the high regard in which Scajola
    holds Secretary Chu. Scajola believes that Chu's May visit to
    Rome marked the beginning of a warm professional friendship;
    Scajola clearly sees this visit to Washington as a
    reciprocation of Chu's May visit. In Washington Scajola hopes
    to sign a Research and Development agreement that has been
    under discussion for some time, and a new ""Industrial
    Cooperation Agreement"" on nuclear power that Scajola first
    proposed during his May 2009 bilateral meeting with Secretary
    Chu.

    RESEARCH AND DEVELOPMENT AGREEMENT
    ----------------------------------

    ¶4. (SBU) The research and development agreement has been
    under discussion for some time. We understand, however, that
    requested Italian revisions and the possible need for EURATOM
    approval could scuttle chances for a September 29 signing.
    On 8 September Scajola's staff told us that they consider it
    very important for this agreement to be signed on September
    ¶29.  (COMMENT:  In terms of U.S. interests, we think the
    Industrial Coopertion agreement is more important than the
    R&D agreement.  We also think that while Scajola would like
    to sign both, staff claims notwithstanding, he too is more
    interested in the Industrial Cooperation agreement.)

    ROME 00001048  002.2 OF 003

    INDUSTRIAL COOPERATION AGREEMENT
    -------------------------------

    ¶5. (C/NF) Since his appointment in Spring 2008, Scajola has
    been leading the charge in Italy for a return to nuclear
    power. USG efforts to promote and protect the interests of
    U.S. firms in this multi-billion dollar project suffered a
    major blow in February 2009 when Italy announced an
    Italo-French agreement that would allow French firms to build
    the first four of Italy's new nuclear reactors.  At their May
    2009 bilateral meeting in Rome, Scajola seemed to pre-empt
    Secretary Chu's expected call for a level playing field by
    offering to negotiate a like agreement with the U.S.
    Secretary Chu agreed to work out such a deal, and DoE staff
    have been working with the Italian Embassy in Washington on
    text with the aim of signing it on September 29.

    ¶6. (C/NF) We have recently seen indications that Scajola has
    another reason for supporting the involvement of U.S. firms
    in Italy's re-nuclearization.  The Franco-Italian agreement
    had the effect of denying opportunities to Italian firms that
    hoped to help build the new plants.  One of these firms,
    Ansaldo Nucleare, has close ties to Westinghouse, one of the
    U.S. firms most interested in obtaining Italian contracts.
    Ansaldo Nucleare and Westinghouse are expected to formally
    announce a consortium agreement in Washington on September
    ¶29.  Ansaldo Nucleare is based in Scajola's home region of
    Liguria.  So if Westinghouse gets a piece of the action,
    Ansaldo -- Scajola's hometown company -- benefits.
    (COMMENT: We need all the help we can get in our advocacy
    efforts for U.S. firms.  If Scajola also has a local interest
    in seeing U.S. firms obtain contracts, that is an advantage
    we should seize and maximize to U.S. benefit.)  Scajola's
    visit represents a critical opportunity to get this
    Industrial Cooperation agreement signed.  A failure to secure
    this agreement is likely to make it significantly more
    difficult for U.S. firms to win contracts in Italy's
    substantial nuclear power project.

    EUROPEAN ENERGY SECURITY
    - - - - - - - - - - - -

    ¶7. (C/NF) Prime Minister Silvio Berlusconi's close personal
    ties with Vladimir Putin and the very strong corporate ties
    between Italian energy parastatal ENI and Russia's Gazprom
    often put Italy squarely at odds with U.S. and EU energy
    security efforts. Italy's energy policy too often reflects
    Russian, rather than European, priorities.  For example, the
    Italian government is deeply ambivalent about the EU's
    Nabucco Caspian pipeline, and ENI is poised to help GAZPROM
    construct Black Sea and Baltic Sea pipelines that will only
    deepen EU's dependence on Russia. ENI, 30 percent owned by
    the Italian Government, often appears to dictate GOI energy
    policy and uses its influence, through the GOI, to block EU
    energy market liberalization plans. Italy is taking some
    steps in the right direction: In addition to the nuclear
    power effort, one of the Caspian ""Southern Corridor""
    projects, the proposed Turkey-Greece-Italy (TGI) pipeline
    will be built by an Italian company. Liquid Natural Gas
    projects promise further diversification.  It would be
    helpful if during his time in Washington, Minister Scajola
    were to hear in clear terms our long-standing concerns about
    European energy security. He should be reminded that we hope
    Italy will support European efforts to diversify energy
    sources, types and routes, particularly through the ""Southern
    Corridor"" projects -- including Nabucco -- intended to bring
    alternative Caspian gas to the EU.  COMMENT: Scajola is more
    concerned about and active on energy security issues than any
    other senior member of the GOI, so we would be preaching to
    the choir here.  This would, however, give Scajola useful
    ammunition to bring home: a strong message to PM Berlusconi
    in particular that Washington is concerned about Italy's
    energy security actions.

    MEGAPORTS
    ---------

    ROME 00001048  003.2 OF 003

    ¶8. (C/NF) Post has been working for several years to convince
    the Italian government to support the launching in Italy of
    DoE's Megaports program, an effort that would put radiation
    detectors in key shipping ports.  Because of the strong
    influence of organized crime in Italian ports, it is
    especially important that this program be implemented in
    Italy. Unfortunately, Italian officials continue to drag
    their feet. To break this impasse, it is critical at this
    point for Secretary Chu to solicit Scajola's advice and
    support in getting Megaports launched in Italy.

    POSSIBLE ISSUES FOR USTR
    ------------------------

    ¶9. (SBU) On 8 September the Italian Ministry of Foreign
    Affairs gave us a preview of other issues that Scajola may
    raise in Washington.  The Italians are seeking a meeting with
    USTR Kirk, but we understand that meeting has not been
    confirmed as of yet.  If the Italian delegation does have an
    opportunity to raise economic/commercial concerns, we are
    told that they would include: ""Buy American"" issues,
    anti-dumping actions affecting Italian pasta, U.S. customs
    treatment of Italian gold jewelry, Italian concerns regarding
    certain Cuba-related certifications affecting trade in
    nickel, and Italy's interest in participating in railroad
    infrastructure projects in the United States.

    PLANNING CONCERNS
    -----------------

    ¶10. (C/NF) Post has picked up on what appear to be some
    organizational problems with regard to this visit at the
    Italian Embassy in Washington. This may be the result of
    summer-time staffing gaps there. Scajola's fear-based
    management style may also be a factor.  Given the number of
    key U.S. interests that will be affected by the visit, We ask
    that Washington agencies, especially State, DoE, and USTR,
    work closely with the Italian Embassy in an effort to smooth
    the way for this visit. Scajola has a reputation for being
    proud, demanding, and protocol conscious.

    COMMENT
    -------

    ¶11. (C/NF) Scajola's visit provides us with significant
    opportunities to make progress on a wide variety of U.S.
    interests.  We could bolster the position of U.S. firms
    seeking opportunities in the multi-billion dollar Italian
    nuclear project, make progress on Italy's problematic energy
    security policies, and perhaps even get Megaports going in
    Italy.
    THORNE

`