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P 240711Z NOV 06
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UNCLAS VIENNA 003392 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/AGS, INR/EU, AND EUR/PPD FOR YVETTE SAINT-ANDRE 
 
OSD FOR COMMANDER CHAFFEE 
 
WHITEHOUSE FOR NSC/WEUROPE 
 
 
E.O. 12958: N/A 
TAGS: KPAO AU OPRC
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: November 22, 2006 
 
 
Crucial Day for the SPOe and the OeVP 
 
¶1. Coalition negotiations resume today between the Social Democrats 
and the People's Party. Party leaders Alfred Gusenbauer and Wolfgang 
Schuessel are to discuss issues aimed at paving the way for a grand 
coalition. Although Schuessel in an interview ruled out a coalition 
with the FPOe, Austrian media agree a grand coalition is likely 
still a long way off. 
Ahead of the resumption today of coalition talks between the SPOe 
and the OeVP, Economics Minister Martin Bartenstein (OeVP) Tuesday 
dampened hopes for a quick agreement between the two parties. He 
told journalists at an energy conference in Brussels that the talks 
would require "several weeks," semi-official daily Wiener Zeitung 
quotes.  He also said the discussions over potentially divisive 
issues "were only just beginning." The Minister rejected speculation 
that the Conservatives were playing for time in hopes of forcing 
elections after failing to reach an agreement with the SPOe: "Nobody 
wants early elections, including the OeVP," the daily quotes 
Bartenstein. 
Meanwhile, mass-circulation daily Kurier lists the obstacles in the 
way of an OeVP-SPOe agreement: the controversial Eurofighter 
purchase and the course of Asutria's security policy; education; 
finances and tax reform proposals; social issues and family policy; 
and domestic security and immigration. 
 
 
Bank Committee Calls Grasser 
 
¶2. The parliamentary committee investigating Austria's banking 
sector has invited 16 witnesses to testify before the committee 
starting next Monday. The list  includes current Finance Minister 
Karl-Heinz Grasser as well as his predecessor, Rudolf Edlinger of 
the Social Democrats. 
When Austrian Finance Minister Karl-Heinz Grasser and his 
predecessor from the SPOe Rudolf Edlinger testify before the 
parliamentary investigative committee  looking into the banking 
scandals, they will be asked about the role of state officials in 
monitoring the boards of directors of Austria's major banks. Both 
the Social Democrats and the People's Party say they hope the 
committee can finish its probe by the end of the year. 
 
 
Third Parties behind Iraqi Destabilization? 
 
¶3. Iraqi expert and politician Rajaa Al-Khuzai, in Vienna by 
invitation of Women without Borders, discussed women's politics in 
Iraq and the forces she believes are responsible for her country's 
destabilization, including "third parties" such as Iraq's neighbors, 
with an Austrian daily. 
Iraqi medical doctor and politician Rajaa Al-Khuzai told liberal 
daily Der Standard the general impression among Iraqis is that they 
can no longer understand what is happening in their country today. 
Like many others, she believes third parties, including neighboring 
states that do not want democracy in Iraq, or possibly even 
al-Qaeda, might be responsible for the ongoing problems, such as 
militias that are apparently operating from within the government. 
Al-Khuzai, who is currently in Vienna by invitation of Women without 
Borders, recalls the years of terror under Saddam Hussein. The 
Iraqis, she emphasized, were "truly happy" to be liberated by the 
Americans, but then things did not turn out the way they had hoped. 
Khuzai, one of the three women to be voted into the first Iraqi 
National Assembly in 2005, has long been pushing women's issues, and 
deplores in particular the growing number of Iraqi widows: "The 
government does not care about the huge number of widows. Its 
representatives are far too busy killing each other off." Currently, 
the work of most NGOs in Iraq has also been suspended, she adds, 
explaining it has become too dangerous as women are looked upon as 
"easy targets." 
 
 
Lebanese Minister Murdered 
 
¶4. There has been international condemnation of the assassination 
yesterday of anti-Syrian Lebanese Industry Minister Pierre Gemayel, 
who was shot in his car in a Christian area of Beirut. The leader of 
the anti-Syrian coalition Saad Hariri has blamed Syria for the 
killing, but Damascus has denied any involvement. The US has labeled 
the assassination a "terrorist act," with Under Secretary of State 
Nicholas Burns saying America was "shocked by this attack." 
All Austrian media report on the assassination of Lebanon's Industry 
Minister Pierre Gemayel. ORF radio's Morgenjournal says Gemayel's 
murder "could be part of a campaign by Hezbollah to mobilize the 
Lebanese people outside the government and parliament in order to 
gain more influence. US President George Bush suggested yesterday 
that Syrian intelligence services might be behind the killing - and 
others likely share his assessment."  The US President "has backed 
the Lebanese government and accused Syria and Iran of fomenting 
instability and violence in the region," according to ORF radio. 
Meanwhile, the UN Security Council yesterday approved plans for a 
tribunal to try those suspected of assassinating former Lebanese 
Prime Minister Rafik Hariri. Six Lebanese ministers opposed to the 
tribunal resigned last week, leaving Premier Siniora with a skeleton 
cabinet. Tensions are high after the latest assassination, observers 
say. 
 
Bush Deserted by Supporters 
 
¶5. The Washington correspondent for an Austrian tabloid says that 
Republicans, including leading party members and long-term 
presidential advisors, are increasingly distancing themselves from 
President George Bush and his Iraq strategy. 
Washington correspondent for mass-circulation tabloid Kronen Zeitung 
Hans Janitschek suggests that Republicans are increasingly 
distancing themselves from President Bush's foreign policy: 
Suddenly, no one wants to be associated with the war in Iraq any 
longer, Janitschek says, naming Richard Perle, who recently admitted 
he completely underestimated the Iraqi resistance but blames the 
President for developments in Iraq. Likewise, former Deputy Defense 
Secretary Paul Wolfowitz no longer wants anything to do with Iraq, 
 
SIPDIS 
although he was an enthusiastic supporter of the US-led military 
campaign. David Frum, who coined the "axis-of-evil" phrase, is also 
stabbing his former boss in the back, claiming George Bush is 
responsible for the US failure in Iraqi, according to Janitschek. 
 
Syria and Iraq 
 
¶6. Austrian media analyze the "historic reconciliation" between 
Syria and Iraq after the two countries resumed diplomatic relations 
after an interruption of 25 years. The move comes as Iraqi Premier 
Jalal Talabani, and Syrian President Bashar al-Assad plan to meet 
with Iranian President Mahmoud Ahmadinejad in Tehran later this 
month. 
The two former Mideast rivals are aiming for a rapprochement, 
independent provincial daily Salzburger Nachrichten writes on the 
resumption of diplomatic relations between Iraq and Syria. Damasacus 
and Baghdad's re-established ties are likely to have a considerable 
impact on Middle East regional policy, the daily argues, pointing to 
the upcoming meeting in Tehran of the Iraqi, Iranian and Syrian 
leaders whose objective is to save Iraq, according to the paper. 
Also, voices in Europe and the US are increasingly urging inclusion 
of formerly ostracized Syria and Iran in the Iraqi peace project. 
The discussion has led to hectic diplomatic initiatives in the 
Middle East, as the countries in the region want to be well 
positioned in time for the expected changes, the daily writes. 
 
Iran Remains Bone of Contention 
 
¶7. Days ahead of the next International Atomic Energy Agency meeting 
Iran has again fuelled the conflict over its nuclear program by 
applying for IAEA support for construction of a heavy water reactor 
in Arak. 
According to liberal daily Der Standard, Tehran wants the IAEA to 
support its compliance with security standards in the Arak project. 
Although the matter is usually no more than routine, in Iran's case 
the situation is more complicated, as a heavy water reactor produces 
plutonium as a by-product, the daily explains. Therefore, the EU and 
the US are pushing for a rejection of the Iranian support 
application, pointing to IAEA resolutions calling on Tehran to 
"reconsider" the reactor's construction. Standard quotes UNVIE PAO 
Matthew Boland as emphasizing the "widespread mistrust of Iran's 
nuclear program," and the "risk of plutonium being diverted for use 
in a weapon." 
McCaw