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P 291106Z MAY 07
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SIPDIS 
 
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E.O. 12958: N/A 
TAGS: OPRC KPAO AU
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: May 24, 2007 
 
 
Elsner Claims Memory Loss 
 
¶1. The former head of the Bawag bank, Helmut Elsner, appearing for a 
second time before the parliamentary inquiry into bank supervision 
in Austria, has claimed he cannot answer a number of questions 
because of memory loss following a recent heart bypass operation. 
Elsner faces charges of fraud and false accounting at the bank. He 
also refused to answer questions on the grounds that this could 
jeopardize his trial on those charges, which has been scheduled for 
July. 
Reporting on former bank Bawag boss Helmut Elsner's appearance 
before the parliamentary inquiry into bank supervision in Austria, 
semi-official daily Wiener Zeitung also noted that the current Bawag 
chief, Ewald Nowotny, has waived Elsner's agreement to maintain the 
confidentiality of bank activities undertaken when he held his 
 
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former position. During his first hearing before the parliamentary 
banking committee, Elsner had claimed bank confidentiality prevented 
him from answering most of the questions. Justice authorities in 
Vienna however, said the former banker must answer questions on some 
Bawag transactions and on a suspected bankruptcy.  Elsner, who is 
currently in detention in Vienna awaiting his July trial, was 
released from a rehabilitation clinic in the province of Carinthia 
about two weeks ago following a heart bypass operation. 
 
 
No Solution on Town Signs 
 
¶2. A meeting yesterday between Austrian Chancellor Alfred Gusenbauer 
and Carinthian Governor Joerg Haider to discuss ways to resolve the 
controversy over bi-lingual town signs in Austria's southernmost 
province was not successful. Although Haider emphasized afterwards 
that his discussion with the Chancellor had been "highly 
constructive," he insists that any solution can only be based on 
broad agreement across party boundaries, according to ORF online 
news. 
 
 
Putin in Vienna 
 
¶3. All Austrian media continue to report on Russian President 
Vladimir Putin's official visit to Austria. Yesterday, Putin and 
Austrian President Heinz Fischer discussed a range of issues 
including human rights, economic relations and the status of Kosovo. 
Austrian media emphasized in particular that Putin said at a press 
conference that Russia must listen to criticism of his government's 
record on press freedom and democracy, but that he pointed out other 
countries, including Austria, have also been noted for not always 
observing human rights. Austrian and Russian business leaders signed 
deals yesterday said to be worth more than three billion Euros. The 
Russian President will end his visit by laying a wreath at the 
Russian memorial on Schwarzenbergplatz later this morning. 
All Austrian media report extensively on the official visit to 
Austria of Russian President Vladimir Putin. According to 
semi-official daily Wiener Zeitung, Putin's visit resulted in 
billion-Euro deals, with about 30 companies concluding agreements 
worth about three billion Euros, but it brought no rapprochement on 
the issue of Kosovo. Like many Austrian media outlets, the daily 
emphasized the "open and fair dialogue" with Putin, and quotes the 
Russian President as promising Austria that its natural gas supply 
contracts with Russia were guaranteed in the long run, as existing 
agreements are valid until 2027. Similarly, mass-circulation tabloid 
Kronen Zeitung quoted Putin, who emphasized "Austria can count on 
Russia" when it comes to its gas supplies. In addition, the tabloid 
headlined "Austria trip is to reconcile Putin and the EU," and 
suggests that Brussels is hoping the Russian President's visit to 
Vienna will lead to an improvement of the EU's strained relations 
with Russia. Liberal daily Der Standard quoted Putin as admitting 
that Russia "needs to listen to the criticism it is facing." Still, 
the daily argues, despite the kind words and conciliatory tones, the 
Russian President remained tough on key issues. Putin also dismissed 
criticism from countries that "adopt a patronizing attitude towards 
Russia, something which Austria has not done." Centrist daily Die 
Presse focused on Putin's opposition to US plans for a missile 
defense system in Eastern Europe. The daily quotes the Russian 
President as warning against a renewed arms race and stressing that 
Europe "does not need any new weapons systems." There has been "no 
change in our position on the US system, and there won't be one, 
either, as we've not heard anything new from the Americans" on the 
issue, Putin said at a press conference. 
 
 
Clinton Visits Vienna 
¶4. Former US President Bill Clinton is to be the guest of honor at 
the AIDS Life charity gala in Vienna's Schoenbrunn Palace today. In 
addition, Chancellor Alfred Gusenbauer will present the former 
President with a one-million-dollar donation from Austria to the 
HIV/AIDS initiative run by the William J. Clinton Foundation. The 
former US President is also expected to attend the Vienna 
Philharmonic Orchestra's Concert for Europe at Schoenbrunn, wrote 
ORF online news. 
 
 
US Calls For New Iran Sanctions 
 
¶5. The United States said it will push for a new set of sanctions 
against Iran for defying UN demands to suspend its uranium 
enrichment program. The call came after the UN's nuclear watchdog 
released a report in Vienna yesterday saying Tehran was stepping up 
enrichment and obstructing inspections. The IAEA's Director General, 
Mohamed ElBaradei, has been criticized by Washington for appearing 
to suggest that Iran might have to be allowed some basic enrichment 
capabilities, Austrian radio noted. 
Reporting on developments in the controversy over Iran's nuclear 
ambitions, ORF radio in its early morning news program Morgenjournal 
quoted Iran's envoy to the IAEA as saying the IAEA Director 
General's assessment of Iran's enrichment capabilities should be 
accepted: "This is a very important point. As Mr. El Baradei has 
announced, America and Western countries should accept the new 
reality and adapt themselves to it." Meanwhile, in liberal daily Der 
Standard, foreign editor and Middle East expert Gudrun Harrer 
suggests that Tehran "is running out of time in the UN Security 
Council." The IAEA's latest report on Iran emphasized that for the 
Agency "certain aspects" regarding the goal and the specifics of the 
Iranian nuclear program still remain unclear. 
McCaw