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Dayna R Robison  09/20/2006 11:12:06 AM  From  DB/Inbox:  Dayna R Robison

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: September 12, 2006 
 
 
Floettl Incriminates SPOe, Vranitzky 
 
¶1. Investment banker Wolfgang Floettl, who has come under fire in 
connection with the scandal surrounding union-owned bank Bawag, 
claims he also transferred "several tens of thousands of Euros" to 
the SPOe and former Chancellor Franz Vranitzky in 1999. Vranitzky 
has confirmed the receipt of the money, but says it was a private 
consultancy fee, which he had not forwarded to the SPOe. 
According to newly established Austrian daily Oesterreich, these 
revelations could have "dramatic" consequences for the SPOe. With 
less than three weeks to go until the October 1 general elections, 
the Social Democrats are finding themselves caught up even more 
deeply in the Bawag quagmire, the daily says. 
 
Election Outcome Open, Surveys Show 
 
¶2. Three surveys on the upcoming general election in Austria on 
October 1 by polling institutes OGM, Market and Gallup show the OeVP 
in the lead, followed closely by the SPOe. The Greens and the FPOe 
are competing for third place according to the surveys, and the BZOe 
and maverick MEP Hans-Peter Martin's party for place four. 
The results of the surveys by polling institutes OGM, Market and 
Gallup are as follows: All three pollsters see the OeVP in first 
place with 38 percent of the votes. Both OGM and Gallup say the SPOe 
would currently get 35 percent, while Market shows a 34 percent 
result for the Social Democrats. OGM says the FPOe would win nine 
percent of the votes at this point, eight percent according to 
Market, and only seven percent according to Gallup. For the Greens 
OGM forecasts 10 percent, Market suggests 11 percent and Gallup 12 
percent of the votes. Market and Gallup both show a three-percent 
result for the BZOe, and OGM expects two percent of support. 
Hans-Peter Martin's list could win five percent according OGM and 
Market, and four percent according to Gallup, semi-official daily 
Wiener Zeitung writes. 
 
New Debate on Tax Reform 
 
¶3. Finance Minister Karl-Heinz Grasser presented a first draft tax 
reform proposal to be implemented by the next Austrian government on 
Monday. Proposed measures for the tax cuts of about 3 billion Euros 
include reducing top tax brackets. This would require a balanced 
national budget and cutting expenses by about four billion Euros, 
Grasser stressed. 
 
 
US Ambassador Reviews Progress Since 9/11 Attacks 
 
¶4. Speaking in Wels, Upper Austria, on the fifth anniversary of the 
September 11, 2001 terrorist attacks on the United States, US 
Ambassador to Austria Susan McCaw discussed their impact on the US 
and its place in the world, and reviewed progress in the struggle 
against terrorism. 
In her speech, Ambassador McCaw said the September 11 attacks on the 
World Trade Center in New York and the Pentagon in Washington 
"showed how a single event can change the course of history" and 
"forced Americans to take a good, hard look at ourselves and the 
world we live in." The United States has revised its immigration 
policies, and has also obtained "substantial international 
cooperation" in the effort to cut off terrorist financing, Austrian 
Press Agency APA quotes Ambassador McCaw. She expressed her 
appreciation to Austria for taking steps to strengthen the judicial 
system to "identify, freeze and seize terrorist financial assets." 
The United States has had to explore "unknown legal territory" where 
"legal precedents are not well established" to identify and 
prosecute terrorists while ensuring that fundamental citizens' 
rights are protected, the Ambassador continued. The Ambassador also 
emphasized that global security "is inextricably linked to the 
success of freedom and democracy in the Middle East." She concluded: 
"We want to work in partnership with nations throughout the world in 
ways that will result in greater peace and prosperity, and a better 
life for people everywhere. 
 
 
Gunfire Near US Embassy Damascus 
 
¶5. The US Embassy in Damascus, Syria, is reported to have come under 
attack, with reports of heavy gunfire and explosions. 
Sourcing Arab news network Al Arabiya, ORF online news writes that 
the well-protected US embassy in the Syrian capital has apparently 
been attacked. The Syrian authorities have confirmed the reports at 
this point. Several attackers are said to have been killed, ORF 
online adds. Relations between Washington and Damascus have been 
strained for years. The Bush administration has accused the Syrian 
leadership and President Bashar al Assad of supporting extremists in 
Iraq, in Lebanon and in the Palestinian territories, ORF online news 
explains. 
 
Hamas-Fatah Cooperation 
 
¶6. Palestinian rival parties Hamas and Fatah are reported to have 
struck a deal on forming a national unity government. President 
Mahmoud Abbas has announced a government reshuffle within the next 
few days. The sudden agreement came in the face of a looming 
financial collapse, which weakened Abbas' position. 
Palestinians are now hoping the formation of a unity government will 
convince international aid donors to end their boycott of the 
Palestinian authority. Abbas is expected to dissolve the Hamas-led 
government within 48 hours, Austrian media say. Independent 
provincial daily Salzburger Nachrichten calls the development an 
attempt at "rebooting" progress in the Middle East Palestinian 
conflict.  A Palestinian political analyst quoted by the daily, 
however, is skeptical: "Both sides have often pushed for 
rapprochement in the past," he says.  "I'll believe the promises 
when I see ministers from both sides standing side by side and 
taking the oath of office." 
 
 
Bush Discusses War on Terror 
 
¶7. US President George W. Bush has marked the fifth anniversary of 
the September 11 attacks on the United States with a speech 
describing the war on terror as a "struggle for civilization." In a 
televised address from the White House, he warned that failing to 
face the enemy now would create a new threat in the future. 
ORF radio's early morning news Morgenjournal quotes President Bush 
as warning that, "if we do not defeat these enemies now, we will 
leave our children to face a Middle East overwhelmed by terrorist 
states and radical dictators armed with nuclear weapons. We are in a 
war that will set the course for this new century and determine the 
destiny of millions across the world." Senior Democrats accused 
President Bush of using the September 11 anniversary for political 
purposes, ORF radio adds. 
 
ORF Washington correspondent Joerg Winter comments: "Bush's address 
was aired on prime-time television, with millions of Americans 
watching. Once again, the President attempted to rally a nation that 
has grown tired of fighting to back his war on terror. This fight 
was more than just a military conflict, Bush suggested, adding that 
it was the most important ideological battle of the 21st century, 
and the most important test for the US since the end of the Cold 
War. The war on terror was the requirement for peace and stability 
in the Middle East. The President also directly addressed al Qaeda 
leader Osama bin Laden, stressing that America's message for him was 
clear: No matter how long it takes, America is going to find bin 
Laden and bring him to justice." 
 
 
US Welcomes Progress in Iran dispute 
 
¶8. The US envoy to the International Atomic Energy Agency has 
welcomed progress made by the EU on talks with Iran over its 
disputed nuclear program. Speaking at the beginning of an IAEA board 
of governors' meeting in Vienna, Ambassador Gregory Schulte said it 
was "encouraging" that progress was made, but added Washington still 
intends to push for sanctions at the UN Security Council if Tehran 
refuses to halt uranium enrichment. 
 
 
New Al Qaeda Threat 
 
¶9. On the fifth anniversary of the 9/11 attacks, terrorist 
organization al Qaeda released a new video message, which was aired 
by US TV network CNN. On what an Austrian tabloid calls a "highly 
professional and technically sophisticated" tape, al Qaeda's number 
two, Ayman al-Zawahiri, says new attacks are being prepared. He also 
called on Muslims worldwide to step up resistance against the US. 
Liberal daily Der Standard also reports on the message, and quotes 
Ayman al-Zawahiri as claiming that Western leaders were "not aware 
of the actual extent of the disaster." The bin Laden deputy's 
allusions to the situation in Lebanon suggest the recording is 
fairly recent, the daily adds. 
McCaw