Cablegate: Secretary Bodman, Italian Minister Sign Agreements

VZCZCXYZ0002
PP RUEHWEB

DE RUEHRO #2438/01 3411151
ZNR UUUUU ZZH
P 071151Z DEC 07
FM AMEMBASSY ROME
TO RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 9505
INFO RUEHBS/AMEMBASSY BRUSSELS PRIORITY 1734

UNCLAS ROME 002438

SIPDIS

SIPDIS

DEPARTMENT PASS TO DOE
DEPARTMENT FOR L/T
BRUSSELS FOR USEU - THOMAS SMITHAM

E.O. 12958: N/A
TAGS: ENRG PREL IT

SUBJECT: SECRETARY BODMAN, ITALIAN MINISTER SIGN AGREEMENTS
ON ENERGY R&D AND GNEP

REF: ROME 2317

1. (U) Summary. In a November 13 meeting, Secretary of
Energy Bodman and Italian Minister of Economic Development
Bersani discussed the future of nuclear energy in Italy, the
Global Nuclear Energy Partnership (GNEP), and bilateral
cooperation in energy research and development. Bersani
signed the GNEP Statement of Principles at the end of the
meeting. Bodman and Bersani also signed a bilateral
agreement on cooperation in energy research and development
(text in paragraph 5). End summary.

2. (U) Minister Bersani opened the meeting by welcoming
Secretary Bodman and declaring his readiness to sign the

SIPDIS
bilateral agreement on energy research and development
cooperation and the GNEP Statement of Principles. Bersani
noted the agreement covers ""the most significant energy
technologies,"" and will yield concrete results. He said
there is a need to find new solutions to the energy
challenges facing the EU and United States, and that clean
coal and nuclear power will likely play an important role in
meeting future energy needs. Referring to the 1987
referendum that had the de facto effect of banning nuclear
power generation in Italy, Bersani said that ""Italy is not
out of nuclear power generation, it has only been suspended.""
GNEP can play an important role in changing Italian
attitudes towards nuclear power, according to Bersani.

3. (U) Secretary Bodman noted the need to follow-up on the
signing of the bilateral agreement with concrete actions. He
proposed the GOI send scientists to visit the National
Renewable Energy Laboratory (NREL) and National Energy
Technology Laboratory to see the research U.S. scientists are
doing in the areas covered by the bilateral agreement.
Bodman agreed that GNEP can play an important role in
overcoming Italian skepticism regarding nuclear power. The
global demand for electricity will increase 50 percent over
the next 20 years, and nuclear power will play an important
role in meeting this growing demand. Bodman underscored that
one of GNEP's goals is to allow nuclear power generation
while limiting the opportunities for proliferation of nuclear
weapons. Following Bodman's remarks, Bersani and Bodman
signed the bilateral agreement and GNEP Statement of
Principles in front of the press.

4. (U) In separate meetings with Italy's lead for the Major
Economies Meeting on Energy Security and Climate Change (MEM)
process, Dr. Valeria Termini, and with officials of the
Italian electricity parastatal ENEL, DOE PDAS for Energy
Efficiency and Renewable Energy John Mizroch welcomed visits
by Italian researchers (from the GOI and/or a pool of firms)
to DOE facilities in his program area, including NREL. The
Italian side, which included staff from the Prime Minister's
office in both meetings, responded positively to Mizroch's
suggestion.

5. (U) Begin text of bilateral agreement on cooperation in
energy research and development.

AGREEMENT BETWEEN

THE DEPARTMENT OF ENERGY
OF THE UNITED STATES OF AMERICA

AND

THE MINISTRY OF ECONOMIC DEVELOPMENT
OF THE ITALIAN REPUBLIC

IN THE FIELD OF ENERGY RESEARCH AND DEVELOPMENT

Whereas the Government of the United States of America and
the Government of the Italian Republic are parties to the
Agreement for Scientific and Technological Cooperation of
April 1, 1988, as amended and extended (the ""S&T Agreement"");

Whereas the United States Department of Energy and the
Ministry of Industry, Commerce and Handicraft of the Italian
Republic concluded a Memorandum of Understanding in the field
of Energy Research and Development on December 5, 1985,
including the May 2, 1990, Implementing Agreements on energy
policy consultations and enhanced joint collaboration and
exchange of information (hereinafter ""the 1985 Agreement""),
which expired on December 5, 1991;

Whereas the United States Department of Energy and the
Ministry of Industry, Commerce and Handicraft of the Italian

Republic concluded a Memorandum of Understanding in the field
of Energy Research and Development on May 26, 1995, on energy
policy consultations and enhanced joint collaboration and
exchange of information (hereinafter ""the 1995 Agreement""),
which expired on May 26, 2005;

Whereas the United States Department of Energy (hereinafter
""DOE"") and the Ministry of Economic Development of the
Italian Republic (hereinafter ""MSE"") (collectively
hereinafter ""the Parties"") believe that the cooperative
activities in the field of research and development,
information exchange and consultation on energy policy
undertaken pursuant to the 1985 Agreement, the 1990
Implementing Agreements, and the 1995 Agreement were mutually
beneficial;

Whereas the Parties have a common interest in continuing
activities undertaken pursuant to the 1985 Agreement, the
1990 Implementing Agreements, and the 1995 Agreement, and in
undertaking new cooperative activities in the field of energy
research and development;

Now therefore the Parties agree as follows:

ARTICLE I

1. The objective of cooperation under this Agreement is to:

- continue, for the mutual benefit of the Parties, the
balanced exchange of energy technology information related to
various energy fields, such as clean coal energy, hydrogen,
nuclear energy, bio-energy, and other basic energy sciences;

- conduct related joint research and development and joint
planning activities which will be further defined in project
annexes to this Agreement; and

- continue periodic bilateral energy policy consultations
through annual meetings of subcommittees in any of the
planned activities as defined in the annexes to this
Agreement.

2. This Agreement is subject to and governed by the S&T
Agreement.

ARTICLE II

Cooperation under this Agreement may include, but is not
limited to the following:

1. Exchange of scientific and technical information, and
results and methods of research and development on a periodic
basis in a manner agreed to by the Coordinators designated by
Article III;

2. Organization of seminars and other meetings on agreed
energy topics in the areas enumerated in Article I in a
manner agreed to by the Coordinators;

3. Survey visits by specialists of a Party to the energy
research facilities or projects of the other Party at the
invitation of the host institution;

4. Exchange of materials, instruments, components, and
equipment for testing;

5. Exchange of personnel for participation in agreed
research, development, demonstration, analysis, design,
experimental, and training activities;

6. Joint projects in the form of experiments, tests, design
analysis, or other technical collaborative activity;

7. Joint funding of specific research and development
projects which may be undertaken in connection with other
qualified organizations or persons in a manner agreed to by
the Coordinators;

8. Joint funding of specific demonstration activities and
dissemination of the results of such projects; and

9. Other such forms of cooperation as may be proposed and
jointly agreed in writing by the Parties.

ARTICLE III

1. A Coordinator shall be designated by each Party to
supervise the implementation of this Agreement. As mutually
agreed, the Coordinators shall meet to evaluate all aspects
of the cooperation under this Agreement. These meetings shall
be held alternately in the United States and Italy.

2. Under the direction of the Parties, the Coordinators
shall approve and monitor all cooperative activities to be
carried out under this Agreement.

3. The Coordinators shall review and evaluate any newly
proposed activities and the status of cooperation under this
Agreement. They also shall give appropriate guidance and
directions to working groups, as defined in Article III,
paragraph 4, and to the project managers of activities
developed under this Agreement. If so requested, the
Coordinators may give advice to the Parties regarding the
progress and future of the cooperative activities established
under this Agreement.

4. The Coordinators shall, as necessary and appropriate,
establish informal working groups in any of the areas of
cooperation under this Agreement to facilitate implementation
of projects which may be undertaken in those areas.

5. At least annually, the Coordinators shall advise the
Coordinator for the S&T Agreement of the status of
cooperative activities undertaken under this Agreement.

ARTICLE IV

1. Proposals for cooperation under this Agreement may be
presented by either Party or its designated representatives
to the Coordinators for approval.

2. Each cooperative activity identified in Article II,
paragraphs 4-8 which is approved by the Coordinators shall be
described in writing in a Project Annex to this Agreement.
Such Annexes shall contain detailed procedures for the
implementation of the cooperative activity, including but not
limited to the contributions by each Party (costs and
cost-sharing), schedules, and responsibilities of each Party.

3. Each Project Annex concluded by the Parties shall be
subject to and refer to this Agreement.

ARTICLE V

The following provisions shall apply concerning exchanges of
equipment pursuant to this Agreement:

1. By mutual agreement, a Party may provide equipment to be
utilized in a joint activity. In such case, the sending Party
shall supply to the host Party, as soon as possible, a
detailed list of the equipment to be provided, together with
the relevant specifications and appropriate technical
documentation related to the use, maintenance, and repair of
the equipment.

2. Title to the equipment and necessary spare parts supplied
by the sending Party to the host Party for use in joint
activities shall remain in the sending Party, and the
property shall be returned to the sending Party upon
completion of the joint activity, unless otherwise agreed.

3. Equipment provided pursuant to this Agreement shall be
brought into operation at the host establishment only by
agreement of the Parties.

4. The host establishment shall provide the necessary
premises for the equipment, shall provide for utilities such
as electric power, water, and gas, and normally shall provide
materials to be tested, in accordance with the agreed
technical requirements.

5. The responsibility and expenses for the transport of
equipment and materials from the United States of America by
plane or ship to an authorized port of entry in Italy
convenient to the ultimate destination, and also
responsibility for its safekeeping, and insurance en route,
shall rest with DOE.

6. The responsibility and expenses for the transport of
equipment and materials from Italy by plane or ship to an

authorized port of entry in the United States of America
convenient to the ultimate destination, and also
responsibility for its safekeeping and insurance en route,
shall rest with Italian organizations designated by MSE for
each Annex.

7. Equipment provided pursuant to this Agreement for use in
joint activities shall be considered to be scientific, not
having a commercial character.

ARTICLE VI

The following provisions shall apply concerning assignments
or exchanges of personnel under this Agreement:

1. Whenever an assignment or exchange of personnel is
contemplated, each Party shall ensure the selection of
qualified personnel with skills and competence necessary to
conduct the activities planned under this Agreement. Each
such assignment or exchange of personnel shall be mutually
agreed in advance by an exchange of letters between the
Parties, referencing this Agreement and its pertinent
intellectual property provisions.

2. The sending Party shall be responsible for the salaries,
insurance, and allowances to be paid to its staff or its
contractors.

3. The sending Party shall pay for the travel and living
expenses of its staff or its contractors when staying at the
establishment of the host Party, unless otherwise agreed.

4. The host Party shall help locate adequate accommodations
for the sending Party's staff or its contractors (and their
families) on a mutually agreeable, reciprocal basis.

5. The host Party shall provide all necessary assistance to
the staff of the sending Party or its contractors as regards
administrative formalities, such as making travel
arrangements.

6. The sending Party shall inform its staff and contractors
of the need to conform to the general rules of work and
safety regulations in force at the host establishment.

ARTICLE VII

1. Unless otherwise agreed, all costs resulting from
cooperation pursuant to this Agreement shall be the
responsibility of the Party that incurs them.

2. Each Party shall conduct the activities provided for in
this Agreement, and its Annexes, subject to its applicable
laws and regulations; activities under and pursuant to this
Agreement and Annexes shall be subject to the availability of
appropriated funds.

ARTICLE VIII

All information, material or equipment transferred under this
Agreement and any related Annex shall be appropriate and
accurate to the best knowledge and belief of the transmitting
Party, but the transmitting Party does not warrant the
suitability of the information, material or equipment
transmitted for any particular use or application by the
receiving Party or any third party. Information, material or
equipment developed jointly by the Parties shall be
appropriate and accurate to the best knowledge and belief of
the developing Parties. No Party warrants the accuracy of
the jointly developed information or the suitability of the
material or equipment for any particular use or application
by either Party or by any third party.

ARTICLE IX

1. This Agreement shall enter into force upon signature and
shall remain in force for five (5) years. The Agreement shall
be renewed automatically for one additional 5-year period
unless either Party informs the other in writing at least six
(6) months prior to the date of expiration.

2. This Agreement may be amended or extended by written
agreement of the Parties.

3. This Agreement may be terminated upon one (1) year's
advance notification in writing by either Party.

4. All joint efforts and experiments not completed at the
expiration or termination of this Agreement may be continued
until their completion under the terms of this Agreement.

DONE at Rome, this thirteenth day of November, 2007, in
duplicate in the English language, which shall be the
authentic text. A translation of the Agreement into the
Italian language shall be prepared by MSE, which shall be
considered equally authentic upon an exchange of letters
between the Parties confirming its conformity with the
English language text.

FOR THE DEPARTMENT OF ENERGY FOR THE MINISTRY OF ECONOMIC
OF THE UNITED STATES OF DEVELOPMENT OF THE ITALIAN
AMERICA: REPUBLIC:

End text of agreement.
SPOGLI"

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