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P 101242Z APR 07
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TAGS: OPRC KPAO AU
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: April 10, 2007 
 
 
Chance to Back Out Of Eurofighter Deal? 
 
¶1. Austrian Chancellor Alfred Gusenbauer of the SPOe, and the head 
of the parliamentary inquiry into the Eurofighter deal, Peter Pilz 
of the Green Party, believe the country's chances to get out of the 
purchase contract have increased. Last week new documents surfaced 
which allegedly confirmed business arrangements between Austrian 
"Airchief" Eric Wolf and Erhard Steininger, the lobbyist for EADS, 
worth around 88,000 Euros. Wolf will be questioned by the Defense 
Ministry's disciplinary committee today. 
All Austrian media report on the "offensive" against "Airchief" Wolf 
and his wife over allegations of a conflict of interest, which might 
provide the grounds for backing out of the Eurofighter contract. 
Eric Wolf has been accused of partiality in the decision to purchase 
the jets, after reports surfaced last week showing that he was the 
authorized representative of a firm that benefited from business 
connected to EADS. Social Democrat Guenther Kraeuter who also sits 
on the parliamentary panel investigating the purchase of the 
Eurofighters, says this apparent conflict of interest could be 
possible grounds for getting out of the contract to buy the jets. 
The Social Democrats have been against purchase of the jets from the 
beginning, the Wiener Zeitung notes. Similarly, independent 
provincial daily Salzburger Nachrichten quotes Chancellor Gusenbauer 
as saying Austria's chances to cancel the purchase deal had now 
increased. Cash flows from EADS lobbyist Steiniger to the 
advertising company of Wolf's wife "clearly violate the very 
specific clause stating no one connected with the process of 
awarding the contract for the jets is permitted to profit from the 
deal," Gusenbauer pointed out. Centrist daily Die Presse meanwhile 
suggests that the SPOe's push to back out of the purchase contract 
is threatening to split the coalition government, as the OeVP 
continues to defend the deal. 
 
 
Gusenbauer Pleased with Coalition 
 
¶2. Chancellor Alfred Gusenbauer has said he is pleased so far with 
the work of the coalition government of his Social Democrats (SPOe) 
and the People's Party (OeVP). He pointed out the coalition partners 
had worked together to complete a "double budget" for 2007 and 2008, 
and had also been able to work on a social correction of pension 
reform and to propose a joint strategy for climate control. 
Chancellor Alfred Gusenbauer in an interview with Austrian Press 
Agency APA says he is pleased with the work of the coalition 
government. The Chancellor emphasized the OeVP had come out of a 
"long-time deadlock on social political themes" and had now opened 
the window to more cooperation. Gusenbauer stressed that after three 
months of coalition government, much had been worked out between the 
two parties. Next week, talks will be held in Brussels over the 
question of places for foreign medical students in Austrian 
universities and on Austria's quota for greenhouse gas emissions, 
semi-official daily Wiener Zeitung notes. Here in Vienna talks will 
also be held with NGOs on a number of items. 
 
 
 
 
Anger over Iran's Nuclear Ambitions 
 
¶3. The United States and other Western powers have strongly 
criticized Iran's announcement on Monday that it had begun 
industrial-scale nuclear fuel production. Washington is seeking to 
bring more diplomatic pressure on Iran, and has emphasized Tehran is 
continuing to defy the international community and is further 
isolating itself. Iranian President Mahmoud Ahmadinejad stated on 
Monday that his country had "joined the nuclear club of nations." 
Semi-official daily Wiener Zeitung quotes a White House spokesperson 
as stressing the United States is "deeply concerned" about Iran's 
announcement on Monday it had reached industrial-scale uranium 
enrichment capabilities. Restrictions or limitations by Tehran of 
its cooperation with the International Atomic Energy Agency were 
"unacceptable," the spokesperson added. Likewise, Moscow labeled 
Ahmadinejad's move a "direct challenge to the world community." 
Liberal daily Der Standard reports on Tehran's "breakthrough in 
uranium enrichment," pointing out that the extent to which the 
recent UN sanctions against Iran have become effective remains 
doubtful: Mohammed Baker Solkadr, Iranian General and Deputy 
Interior Minister, who has been put on the list of travel-embargoed 
persons, was allegedly able to leave the country unhindered and 
visit Russia only last week. The daily also reports that Iran's 
President Ahmadinejad has underscored he would not permit other 
countries to curb Iran's nuclear capabilities.  ORF online news 
meanwhile quotes Michael Levi, an expert with New York's Council on 
Foreign Relations, as pointing out, "Politically, it is more 
important to put up 30,000 centrifuges than actually have them up 
and running regularly." Levi expressed his doubt about the veracity 
of Ahmadinejad's statements. The expert also underscored that the 
international community was "making the mistake of taking Iran and 
its frightening claims all too seriously." 
 
 
Demonstration in Iraq 
 
¶4. In Iraq, tens of thousands of people waving Iraqi flags staged a 
peaceful demonstration in the city of Najaf in the southern part of 
the country yesterday to demand the withdrawal of US forces. The 
protests came four years to the day after Baghdad fell to the 
invading American troops. Foreign observers argue the climate of 
fear and oppression during Saddam Hussein's rule may contribute to 
the fact that Iraqis today are incapable of peacefully addressing 
the country's unresolved ethnic, religious and political conflicts. 
Like all Austrian media reporting on developments in Iraq, 
semi-official daily Wiener Zeitung says that among Iraqis the "call 
for a US pullout keeps getting louder." Independent provincial daily 
Salzburger Nachrichten writes about "fear, anger and frustration in 
Iraq," and argues that four years after Saddam Hussein's regime was 
toppled, "despair and resignation are predominant" in the country. 
In their struggle for survival, many Iraqis these days are "clinging 
to their ethnic or religious groups, and foreign observers have 
compared the situation in Iraq to a "pressure cooker, where the lid 
suddenly blows off." Meanwhile, liberal daily Der Standard argues 
that the US security plan to "reestablish law and order in the Iraqi 
capital is last hope and final chance for many people in Baghdad to 
avert compete chaos." 
 
 
US to Move against China over Intellectual Property Claims 
 
¶5. The United States is bringing legal action against China over 
what it calls inadequate protection against counterfeiting American 
goods. US Trade Representative Susan Schwab stressed China had 
failed to protect intellectual property rights which cost US 
companies billions of dollars every year. 
Austrian radio early morning news Morgenjournal quotes US Trade 
Representative Susan Schwab about Washington's dispute with China 
over intellectual property rights: "We see specific, significant 
World Trade Organization-related problems that bilateral dialogue 
simply has not been able to resolve. Current Chinese laws impede 
effective attacks on piracy and counterfeiting. Legitimate 
audiovisual products and publications continue to face serious 
problems with market access." 
McCaw