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Viewing cable 07VIENNA392, AUSTRIAN MEDIA HIGHLIGHTS: February 14, 2007

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Reference ID Created Released Classification Origin
07VIENNA392 2007-02-14 12:35 2011-08-26 00:00 UNCLASSIFIED Embassy Vienna
VZCZCXYZ0006
PP RUEHWEB

DE RUEHVI #0392/01 0451235
ZNR UUUUU ZZH
P 141235Z FEB 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 6343
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY
UNCLAS VIENNA 000392 
 
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: February 14, 2007 
 
 
Extradited:  Elsner Back in Vienna 
 
1. Former Bawag boss Helmut Elsner arrived in Vienna yesterday after 
a months-long tug of war between Elsner and his lawyers, who claimed 
the ex-Bawag boss had a weak heart and could not be transported from 
his French residence to Vienna for trial, and the law enforcement 
authorities who doubted the validity of Elsner's claimed illness and 
kept pushing for his extradition. His lawyer had only recently 
announced that Elsner would have to undergo heart surgery in 
February - however, on Tuesday, two doctors examined him and 
declared him sufficiently fit for return to Austria. 
Upon his return, Elsner was taken to a prison in the 8th district of 
Vienna where a decision about his remand period will be made on 
Wednesday. Elsner will certainly have to face charges including 
forgery of balance sheets and fraud in connection with his 
involvement in the Bawag scandal which led to the bank's being sold. 
Starting date for the trial of  Elsner and the other accused has not 
yet been fixed - Elsner could face a prison sentence of up to 10 
years. In addition, there is a claim for damages pending from the 
Austrian central organization of trade unions, the VGB. Minister of 
Justice Maria Berger, in a joint press conference with Bawag 
prosecutor Georg Krakow, explained that Elsner's transfer to Austria 
was the result of perfect cooperation between Austrian and French 
law enforcement authorities, writes independent daily "Der 
Standard." 
 
Steyr Weapons in Iraq 
 
2. The export license for 800 Steyr-Mannlicher sniper guns to Iran 
was defended by Minister of the Interior G|nther Platter on Tuesday. 
He refused to comment on reports according to which a part of this 
delivery has meanwhile turned up in Iraq. He stressed that in the 
future, export of weapons would be closely monitored. The export 
license had been granted under Platter's predecessor Ernst Strasser 
in November 2004. ORF online reports that the US Embassy in Vienna 
did not yet confirm the discovery of the sniper guns in Iraq. 
Embassy spokesman William Wanlund stated that "we will look into 
these reports, but we cannot yet confirm their validity, adding 
that, if the reports turned out to be true, this would be 
"profoundly disturbing." 
Steyr-Mannlicher Managing Director Franz Holzschuh has pointed out 
the possibility that precision guns can be copied, and is cited by 
centrist daily "Die Presse" as complaining that his company is "a 
political pawn." However, the daily notes that the Steyr H-50 guns 
have been a political irritant between the US and Austria for years. 
 In December 2005, Steyr-Mannlicher was subjected to a US embargo - 
the company was no longer allowed to deliver weapons to the US, 
however, the ban has in the meantime been lifted (sic).  Austrian 
Press Agency "APA" reported on the criticism voiced by Greens 
spokesman Peter Pilz of the OeVP government officials who were 
responsible for approving the sale of the sniper guns. He criticized 
that "attack weapons" had been delivered to the "friends of terror" 
in Iran and referred to the fact that former US Ambassador to 
Austria Lyons Brown, at his courtesy call to the new Minister of the 
Interior Liese Prokop in January 2005, had demanded a stop to the 
deliveries.  Pilz also renewed his charges against Gert Rene Polli, 
head of the Office for the Protection of the Constitution and Fight 
Against Terrorism, who is supposed to have played a key role in the 
deal. 
 
Media Reaction to the Weapons Deal Controversy 
 
3. Foreign affairs writer for centrist daily "Die Presse" Oliver 
Grimm comments on the Austrian weapons deal with Iran, claiming that 
"[s]uch news makes your hair stand on end:  Iraqi terrorists use 
Austrian sniper guns to chase American and British soldiers. Austria 
sponsors Islamist terror - even more:  it profits from it. A 
scandal! - or perhaps not. (...) Whether it is a scandal or simply a 
mix-up, one thing is clear:  Austria's system of weapons export 
needs reform. When in 2004, the Foreign Ministry made no objections 
to the planned export to Iran, allies in nearby Iraq were already 
engaged in heavy fighting with Shiite militia. That their Iranian 
brothers in faith really needed 800 sniper guns simply for chasing 
drug smugglers, hopefully not even the most naove member of the 
Foreign Ministry believed." 
 
US Is Active Against Climate Change 
 
4. US Ambassador in Brussels Boyden Gray gave an interview to 
centrist daily "Die Presse," in which he criticized EU climate 
goals. 
The US defends itself against charges from Europeans that it does 
not act decisively against climate change. In the interview, Amb. 
Gray states that the EU may formulate ambitious goals to fight air 
pollution, but we follow up with concrete measures," and goes on to 
outline some of the measures taken by the Bush administration, such 
as his goal of reducing gasoline demand by 20 percent in the next 
ten years. The US Ambassador also points out that his country is 
planning to step up the development and use of biological fuels. "It 
is going to be our technology which will reduce the greenhouse gas 
emissions worldwide. The EU plan to reduce CO2 emissions by at least 
20 percent until 2020 contained hardly any details of how this goal 
was to be achieved," Gray said.  He also was skeptical about 
Europe's formulation of ambitious goals when the technology for 
their realization is still lacking. 
 
More Attacks in Lebanon 
 
5. Wednesday marks the second anniversary of the murder of former 
Prime Minister Rafik Hariri, and attacks launched Tuesday gave rise 
to concerns that violence might once again escalate in Lebanon. At 
least three were killed and 20 more injured in two almost 
simultaneous attacks on small busses that were on their way to 
Beirut. On the actual anniversary, thousands of people are expected 
to pay tribute to the memory of Hariri in Beirut. 
 
North Korea Agrees to Turn Off Nuclear Plant 
 
6. It is confirmed that the North Korean regime has agreed to turn 
off its Yongbyon nuclear power plant within 60 days in exchange for 
urgently required economic assistance and oil supplies. North Korea 
also consented to once again admit IAEA inspectors into the country. 
It is unclear, however, whether this agreement will last - in the 
past, the Stalinist regime in Pyongyang has always found pretexts 
for undermining similar agreements. Moreover, some in the US are 
skeptical:  Former US Ambassador to the UN John Bolton condemned the 
agreement as sending the "wrong signal" to North Korea. It is 
unclear whether the US Congress will grant the money for expensive 
economic assistance programs. 
Semi-official daily "Wiener Zeitung" points out that it's not just 
Republican hardliners such as Bolton, but also Democrats who are 
beginning to voice criticism, albeit in a more subdued manner, 
arguing that the agreement could have been concluded earlier. As 
early as 1994, former President Clinton had worked out a similar 
agreement. However, the Bush administration sees important 
differences:  This time, China is behind the agreement as well, thus 
making it harder for the North Koreans to break the agreement 
without angering its powerful neighbor, analyzes "Wiener Zeitung." 
Also new is the fact that working groups will explore ways to reduce 
tensions on the Korean peninsula. As yet unresolved is the question 
of what will happen to the existing nuclear arsenal in North Korea. 
"Wiener Zeitung" refers to estimates that the DPRK has the capacity 
to produce six to ten nuclear warheads. The uranium enrichment 
program, whose existence the North Koreans have always denied, was 
likewise not mentioned. Japan is critical of the deal, refusing to 
pitch in with oil deliveries as long as the fate of the Japanese 
citizens, who were abducted to North Korea in the seventies, is not 
resolved." 
 
Putin For Middle East Conference 
 
7. After meeting with Jordanian King Abdullah on Tuesday, Russian 
President Vladimir Putin has proposed a Middle East conference which 
would include Syria and Lebanon. During his visit to Amman, the 
Russian President also met with Palestinian President Mahmoud Abbas. 
After the agreement between Fatah and Hamas for a government of 
national unity, Palestinian Prime Minister Haniyeh had called on the 
EU and the Middle East quartet, consisting of EU, UN, Russia and the 
US, to end the boycott of his government. 
McCaw