VZCZCXYZ0046
PP RUEHWEB

DE RUEHVI #1204/01 1291443
ZNR UUUUU ZZH
P 091443Z MAY 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 7242
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY

UNCLAS VIENNA 001204 
 
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 09, 2007 
 
 
Tensions over Eurofighters 
 
¶1. There are new tensions in the SPOe-OeVP coalition government over 
the parliamentary inquiry into the Eurofighter purchase. 
Vice-Chancellor and Finance Minister Wilhelm Molterer of the 
People's Party has criticized Defense Minister Norbert Darabos of 
the Social Democrats over his handling of the negotiations with the 
Eurofighter company. Molterer complained that the government is not 
being kept in the loop regarding the Defense Minister's policy. 
Meanwhile, Chancellor Alfred Gusenbauer has said the OeVP should not 
represent the interests of Eurofighter manufacturer EADS in the 
matter. 
In connection with the controversy over the interceptors for 
Austria's armed forces, Austrian media continue to report that 
Defense Minister Norbert Darabos has said he doesn't expect the 
first group of Eurofighter jets, due for inspection next week, to 
pass a product test. Semi-official daily Wiener Zeitung quotes 
Darabos as stressing officials from the ministry are likely to find 
problems with the fighter jets meeting specifications set out in the 
purchase contract with Austria. Technicians are already at the 
Eurofighter works in Germany. Problems also remain with acquiring US 
held releases for the software, according to the Minister. The 
Eurofighters' manufacturer EADS has declined to comment on Darabos' 
view that the plane won't meet product standards. The Wiener Zeitung 
adds that head of the Eurofighter company Aloysius Rauen has told an 
Austrian parliamentary inquiry his firm is ready to discuss a 
settlement of the disputed contract to buy 18 jets, but not a 
complete cancellation of the deal. Eurofighter has broken off talks 
with the Austrian government on the two billion Euro contract. 
Meanwhile, independent provincial daily Salzburger Nachrichten runs 
the front-page headline "Eurofighter: Fischer should put his foot 
down," and writes that the OeVP has called for the Austria President 
to resolve the deadlock by making clear in his capacity as commander 
in chief of the Austrian armed forces that the security of the 
country was not a game of poker. 
 
 
US Outrage over OMV Deal 
 
¶2. ... headlines an Austrian daily, suggesting that Washington's 
opposition to Austrian energy provider OMV's interests in Iran's 
natural gas reserves has now led to "massive diplomatic tensions" 
between Austria and the US. Washington has threatened to block 
Austria's application for a seat on the UN Security Council, should 
the OMV's Iran deal be realized, high-ranking Austrian diplomats 
told the daily. 
Reporting on Washington's opposition to OMV's planned business deal 
with Iran and rumors that the US might block Austria's application 
for a UNSC seat, semi-official daily Wiener Zeitung quotes the 
American Embassy in Vienna as emphasizing that currently the US "has 
not taken any position on Austria's candidacy for the Security 
Council." Therefore, "it would be purely hypothetical to talk about 
it at this point." 
The daily also reports that according to a new report by the 
conservative American Enterprise Institute, Austria is one of the 
top seven investors in Iran. Sanctions imposed on Iran don't rule 
out economic contacts, but the institute has suggested withdrawing 
investment could be used to pressure Iran to abandon its nuclear 
program. France headed the list of investors, the Wiener Zeitung 
notes. Meanwhile, Austria's trade delegate to Tehran, Karl Hartlieb, 
says the institute's figures are misleading and that Europe believes 
trade with Tehran is one of the best ways to resolve political 
tensions. 
 
 
Iran Ends Blockade of UN Non-Proliferation Meeting 
 
¶3. Iran has ended its blockade of the agenda at an IAEA meeting in 
Vienna aimed at strengthening the Nuclear Non-Proliferation Treaty. 
The decision will allow the NPT review to continue as planned. 
Initially, Tehran had refused to accept a compromise on the wording 
of the agenda. One delegate said on Monday it appeared Iran wanted 
the meeting to fail, as it had opposed wording that mentioned the 
need for full compliance with the 1970 treaty, which is reviewed 
every five years. 
Iran's decision to end its blockade of and IAEA meeting's agenda on 
strengthening the Nuclear Non-proliferation Treaty will permit the 
NPT review to continue as planned, semi-official daily Wiener 
Zeitung says. Tehran accepted a compromise proposal put forward by 
South Africa at the last minute, which prevented a premature 
termination of the conference as called for by Japan. Tehran had 
opposed wording that mentioned the "need for full compliance with 
the treaty," which is up for review every five years. This week's 
meeting of the International Atomic Energy Agency is in preparation 
for the 2010 conference, and is scheduled to run until Friday. 
United Nations sanctions have been imposed on Iran over its refusal 
to give up uranium enrichment. Meanwhile, the Wiener Zeitung quotes 
EU foreign policy chief Javier Solana as describing recent 
discussions with Tehran on its nuclear program as "very difficult." 
Talks between Solana and Iran's top nuclear negotiator Ali Larijani 
were held in Turkey last month, and according to Solana the problem 
was in convincing Iran to suspend the enrichment of uranium for the 
duration of further talks. He said he has hopes for another meeting 
with Iran's chief nuclear negotiator in the near future. 
 
 
More Violence in Iraq 
 
¶4. Violence continues in Iraq, with at least 68 people having been 
killed or found dead yesterday. A suicide car bomber killed over two 
dozen people in a Shiite city, and this morning a truck bomb killed 
twelve people in the Kurdish city of Erbil. Meanwhile, in the US the 
Democrats have presented a new proposal for additional funding for 
the military efforts in Iraq. The plan envisages funding for the 
next three months to be approved by the House of Representatives. In 
late July, Representatives will then have to decide whether to 
allocate additional money for either continuing or terminating the 
US military operation. 
Analyzing recent developments in Iraq and the fallout of the Sharm 
el-Sheikh conference on the country's future, foreign editor for 
liberal daily Der Standard Gudrun Harrer writes: "In some ways 
things are just as before the Iraq invasion in March 2003: The 
language of international relations continues to build castles in 
the air, which are a far cry from reality in Iraq. Now, the 
international community, meeting in Sharm el-Sheikh, concluded the 
'International Compact with Iraq,' designed to "boost the dynamism 
of national (Iraqi) consensus and international support. But so far 
the dynamism has failed to materialize, much as the notion of a 
national consensus. Besides, support is a fickle thing. In the ICI, 
the international community pledges long-term assistance, tied to a 
return performance from Iraq. (...) But what if Iraq fails to reach 
the goals put forward by the international community in the ICI? 
Will the international community simply call the Iraq project 
finished? Even optimists consider the conference's results no more 
than 'encouraging.' Something along the lines of 'the important 
thing is that everyone was there.' After all, we've become quite 
humble." 
McCaw