This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS FRANKFURT 005551 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PINR TBIO GM
SUBJECT: Baden-Wuerttemberg FDP Head / Minister Doering 
Resigns Amid Scandal 
 
 
Sensitive but unclassified; not for internet distribution. 
 
¶1.  (U) SUMMARY:  On June 18, Baden-Wuerttemberg (B-W) 
Economics Minister and Deputy Minister President Walter 
Doering (FDP - Free Democrats) resigned from his positions 
as economic minister, FDP state chairman and deputy chairman 
of the national FDP, keeping only his elected mandate in the 
B-W State Parliament.  Doering's resignation in the wake of 
the Flow-Tex corruption scandal has thrown the state party 
into chaos.  B-W Liberals selected Bundestag member Birgit 
Homburger to replace Doering as state chairperson and FDP 
state caucus chief Ernst Pfister as B-W economics minister. 
The affair is likely to strengthen the CDU's hold on power 
in Baden-Wuerttemberg.  END SUMMARY. 
 
¶2.  (U) Doering's resignation came after weeks of 
revelations concerning his alleged involvement with the Flow- 
Tex company, which was convicted of fraud in Germany's 
largest white-collar scandal in recent decades. 
Contradictory statements by Doering and his staff about Flow- 
Tex's funding of a 1999 poll commissioned by Doering gave 
the impression that the minister had misrepresented his 
dealings with Flow-Tex.  The Stuttgart prosecutor's office 
searched Doering's office and the office of former personal 
aide Margot Haussmann, announcing that expanded 
investigations against Doering for accepting political 
favors and giving false testimony, prompting Doering to 
resign (effective July 1). 
 
¶3.  (U) The burgeoning scandal and Doering's surprise 
resignation threw the B-W FDP into turmoil.  The favored 
candidate, Bundestag member and FDP labor-policy 
spokesperson Dirk Niebel, turned down the opportunity to 
succeed Doering, citing national-level ambitions in Berlin. 
After a marathon weekend meeting, the B-W FDP executive 
committee presented Bundestag member Birgit Homburger as the 
new state party leader (to be confirmed at a special FDP 
convention on July 17).  Doering's successor as economics 
minister and deputy minister-president will be FDP caucus 
leader Ernst Pfister (deputy FDP state chairman Michael 
Theurer challenged Pfister's nomination but lost the 
divisive battle). 
 
COMMENT 
------- 
 
¶4.  (SBU) Political insiders express concern over 
Homburger's ability to lead the state FDP from Berlin and 
Pfister's potential as economics minister and deputy 
minister-president.  Most observers view Pfister -- a 
teacher by training (like Doering) with scant business 
experience -- as an affable but uncharismatic figure and ill- 
prepared for a leadership role. 
 
¶5.  (SBU) Doering's resignation will strengthen Christian 
Democrats in the CDU-FDP coalition and may lead Minister- 
President Teufel (CDU) to reshuffle the state cabinet.  With 
Doering's fall, the CDU has an even better chance to gain an 
absolute majority in 2006 state elections.  Over the years, 
Doering had reduced the B-W FDP to a one-man show, leaving 
little room for up-and-comers in the party's ranks.  The 
Flow-Tex scandal and the FDP's inability to find strong new 
leadership mean that the party is likely to lose visibility 
and support in Baden-Wuerttemberg, a traditional stronghold. 
END COMMENT. 
 
BODDE