VZCZCXYZ0014
PP RUEHWEB

DE RUEHVI #1176/01 1271338
ZNR UUUUU ZZH
P 071338Z MAY 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 7214
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY

UNCLAS VIENNA 001176 
 
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: OPRC KPAO AU
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: May 07, 2007 
 
 
Committee to Hear Defense Minister, Eurofighter Boss 
 
¶1. Eurofighter boss Aloysius Rauen and Defense Minister Norbert 
Darabos (SPOe) will be interviewed by the parliamentary 
investigative committee looking into the Austrian Eurofighter 
purchase deal today. The committee will also demand that Darabos 
provide them with a copy of the expert opinion assessing the deal 
with jet producer EADS. The Defense Minister meanwhile announced at 
a press conference yesterday that the Eurofighter company had broken 
off talks with the government on the deal to buy 18 interceptors. 
ORF online news describes as an "indirect duel" today's meeting 
before the parliamentary committee looking into Austria's 
interceptor purchase of Defense Minister Norbert Darabos and 
Eurofighter boss Aloysius Rauen, pointing out the two men are 
meeting only a day after it emerged that Austria and EADS broke off 
talks on the deal. Mass-circulation tabloid Kronen Zeitung runs the 
front-page headline "Playing poker over cost reduction: Darabos 
threatens to cancel the jet deal."  Darabos believes the Eurofighter 
manufacturer is getting "increasingly nervous," given the suspicion 
of illegal cash flows in connection with the Eurofighter bid. 
Likewise, in an interview with mass-circulation tabloid Oesterreich, 
Darabos underscored that his impression is that EADS "is more and 
more under pressure in Austria because of what has emerged about the 
deal." Darabos is convinced the Eurofighter company is "getting 
nervous," as it has "recently been trying to increase pressure on 
me. They wanted a compromise, and quickly. But I kept telling them 
the matter would not be concluded before the investigative 
committee's findings are on the table." It is now up to the 
parliamentary committee to "present proof that there is a connection 
between EADS lobbyist Steininger and the Eurofighter deal," the 
Minister emphasized. He dismissed the EADS announcement that the 
first jets will be delivered in May, stressing that he would "not 
allow a single interceptor to land in Austria" before he had 
received all releases, contracts, flight authorizations and 
clarifications with NATO and the US. 
 
 
Bawag Reconsiders Ban on Cubans 
 
¶2. The Bawag bank has reversed its decision of last month to close 
down accounts held by Cuban citizens. Bawag claimed it was forced to 
do so after the bank's sale to the American private equity company 
Cerberus. Following widespread criticism, Bawag now says an 
agreement has been reached between Cerberus and US financial 
officials, which will make it possible for the bank to continue 
doing business with Cuban citizens. 
Like all Austrian media, semi-official daily Wiener Zeitung reports 
on the Bawag bank's move to reverse its decision to shut down 
accounts held by citizens of Cuba. Citing a trade embargo Washington 
imposed on Havana in 1961, under which US firms and their 
subsidiaries are banned from dealing with Cuban citizens, Bawag 
claimed it had been forced to close the accounts of Cuban nationals 
after it was sold to Cerberus. Following widespread criticism, Bawag 
now says an agreement has been reached between Cerberus and US 
financial officials, which will make it possible for the bank to 
continue doing business with Cuban citizens. The move to shut out 
the Cubans ignited a storm of protests, the Wiener Zeitung reports. 
Criticism came from across the Austrian political spectrum, as well 
as from some European Union officials, and human rights groups. The 
daily explains that the US frowns on any business deals which it 
thinks will help nations it considers rogue states, such as Iran and 
North Korea. Thus a recent deal between Iran and Austrian's OMV to 
development oil fields also led to criticism from Washington. 
 
 
Interview with Ambassador McCaw 
 
¶3. US Ambassador to Austria Susan McCaw gave an interview to a 
regional Austrian daily, talking about the significance of freedom 
and democracy, US President George Bush, the war on terror, economic 
issues and her impressions of Austria. 
In an interview with regional daily Oberoesterreichische 
Nachrichten, US Ambassador to Austria Susan McCaw describes the 
US-Austrian relations: "I believe our relations are strong and exist 
on many levels. We have very close economic ties, and I think that 
politically, too, our relations are very good. Of course, there are 
differences of opinion on certain aspects of politics, but on the 
whole we share the same values. I see that there still is room for 
improvement, however. I am a fervent advocate of student exchanges, 
for example. We need to make sure that young people from Austria and 
the US get to know and better understand the respective other 
country. I've made this one of the priorities of my ambassadorship." 
 Criticism of US policies, particularly in the wake of the Iraq war, 
has not only sprung up in Austria, "but all over Europe. Iraq 
created a rift between our countries. Many people were obviously not 
happy with our actions; it was a controversial issue. But I believe 
that many countries are above these questions at the political 
level. They have recognized reality: We are there; we need to help 
the honest Iraqis; we need to support the emerging democracy there, 
not only with the assistance of the US, but within the entire 
international community. Regarding popularity, there are still many 
questions on America's position. But it is my job to go out there 
and talk about our views with the Austrians." 
 
 
Sarkozy Wins in France 
 
¶4. In the run-off election in France on Sunday, Conservative 
presidential candidate Nicolas Sarkozy won 53 percent of the votes, 
defeating his Socialist rival Sgolhne Royal. Voter turnout was high 
at about 85 percent. In a first statement, Sarkozy called for unity 
and said the French people voted for change. Over 35,000 people 
gathered in central Paris last night to celebrate the UMP 
candidate's victory, while elsewhere hundreds of people staged 
protests and set fire to cars. 
All Austrian media report on the election victory in France of UMP 
presidential candidate Nicolas Sarkozy. In its analysis, liberal 
daily Der Standard writes about "Sarko's announced triumph," 
pointing out it had been clear early Sunday afternoon that the 
Conservative candidate would win the run-off vote. With Sarkozy, a 
"get-going, can-do politician will move into the Elyse Palace," the 
daily says, adding however, that unusually, "after some time in the 
presidential palace, the super-reformer mutate into pragmatics." It 
remains to be seen, whether the election triumph goes to the 
power-hungry Sarkozy's head in the end," the daily writes. Centrist 
daily die Presse, notes that Sarkozy is a "winner who has polarized 
his country for quite some time." In addition, he will be the "most 
powerful and simultaneously most controversial president" in Europe. 
"'Speedy Sarko' has reached his goal," with "hard work, cleverness, 
and a generous amount of chutzpah," the Presse writes. His 
supporters say he is "determined," while his opponents complain his 
"ruthless thirst for power." 
World leaders have been congratulating Nicolas Sarkozy, including EU 
Commission President Jos Manuel Barroso, who said he is confident 
the new French president will play a driving role in resolving the 
EU's institutional questions and in consolidating a political 
Europe. US President George W. Bush telephoned to offer his 
congratulations and said he expected good relations with Sarkozy, 
who has made a priority of repairing the damage to French-US 
relations caused by tension over the Iraq war. Other US political 
leaders have also welcomed Sarkozy's win. 
McCaw