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E.O. 12958: N/A 
TAGS: OPRC KPAO AU
 
SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: June 21, 2007 
 
 
EU Leaders to Discuss New Treaty 
 
¶1. EU heads of government are preparing to meet in Brussels today to 
discuss a treaty to help the union work more effectively. A draft 
tabled by Germany recommends deep reforms, but not a constitution - 
an idea rejected by French and Dutch voters two years ago. Whether 
progress can be made at the summit remains to be seen, as Britain, 
and Poland in particular, have repeatedly voiced their opposition to 
some aspects of the proposal. According to the media, Austria's 
position in Brussels is to try and preserve as much of the original 
constitutional draft as possible. Austrian Chancellor Alfred 
Gusenbauer told ORF radio he hopes that "ultimately, reason will 
prevail" in the debate. 
Austrian media report on the German proposal to EU states that they 
should drop the idea of a constitution at the summit beginning in 
Brussels today. According to ORF radio, a paper circulated by 
Germany as current EU President says the constitutional concept is 
abandoned, but recommends deep reforms to streamline decision-making 
in the EU. Poland and Britain continue to warn that they could veto 
progress on a new treaty unless changes are made to the current 
draft. In an interview with mass-circulation provincial daily Kleine 
Zeitung, Austrian Foreign Minister Ursula Plassnik said that despite 
the tensions, she is "optimistic" regarding the outcome of the 
summit, although "we still have a lot of work ahead of us." However, 
"it won't do to make the 'problem children' publicly look like 
fools. We can only find a solution, if we work together. Only 
together can we make progress. It is therefore also in our interest 
to try and understand the concerns of countries like Poland." 
Plassnik warned that "creating a rift within Europe won't get us 
anywhere; it is not the formula for European integration. Europe's 
power does no lie in division, but in cooperation." Meanwhile, in an 
interview with mass-circulation tabloid Oesterreich, Austrian 
Chancellor Alfred Gusenbauer said he expects a "particularly 
difficult summit. Key questions remain unresolved. But we will take 
the time that is necessary for a compromise." Regarding Poland, he 
explained he "understand Warsaw's position in principle. The EU is 
based on shared sovereignty, though. Thus, Poland's call for 
solidarity works both ways, and it is solidarity with the European 
project that is required these days. We need a European Union that 
is able to act and that is in touch with the people." 
 
 
US Warns Government and OMV against Iran Deal 
 
¶2. All major Austrian media report on a PAS-facilitated backgrounder 
with high-ranking US Embassy representatives, who explained to 
journalists in Vienna on Wednesday the US concerns over OMV's 
planned large-scale gas deal with Tehran.  "Rather intensive" and 
"high-level talks" have been held with the Austrian government and 
OMV in order to convince the Austrians of the political 
implications, should they go ahead with the deal. Furthermore, 
international concerns over Iran's nuclear ambitions make the timing 
of the deal highly questionable, the US diplomats said. Applying the 
Iran Sanctions Act would be "a last resort," however, they added. 
ORF online news, sourcing Austrian Press Agency APA, reports that 
"following the first warnings from Washington, high-ranking US 
government representatives have now traveled to Vienna to repeat the 
threat of sanctions, should the Austrian energy provider go ahead 
with the planned deal." 
Reporting like all major Austrian media on the PAS-facilitated 
backgrounder with high-ranking US Embassy representatives, who 
discussed Washington's position regarding the OMV's planned gas deal 
with Iran with journalists in Vienna, semi-official daily Wiener 
Zeitung headlined "USA increasing pressure on OMV." Washington won't 
tolerate any deviation from the economic boycott aimed at forcing 
Iran to its knees in the dispute over its nuclear ambitions, the 
daily added. Concern over the possibility that OMV could be doing 
the ground work for other energy companies, including Shell, Total 
or Repsol, which are only waiting for someone to break the blockade 
against Iran, might have provoked Washington's explicit warning, the 
Wiener Zeitung suggested. 
Likewise, mass-circulation tabloid Kronen Zeitung said the US "is 
threatening to punish OMV."  The Americans are "pestering OMV over 
its planned gas deal with Iran. The project is immoral; it 
threatened the reputation of the energy company, and must not be 
pushed through, because otherwise OMV could be punished. The 
Austrian energy provider has meanwhile dismissed the criticism, 
saying that all laws were being observed," the Kronen Zeitung wrote. 
The tabloid quoted a US Embassy diplomat as emphasizing that "you 
can't just say 'business is business' in Iran's case." 
Liberal daily Der Standard stated that the US wants to get OMV to 
abandon its planned gas deal with Iran and has warned that "OMV's 
reputation could suffer." The "high-ranking US diplomats had to 
admit that the US does not have much to go on against OMV's 
interests in Iran," the daily wrote. Still "should all US talks with 
the Austrian government and OMV fail to bear fruit, should the 
preliminary agreement become a binding contract and money be 
transferred, the first-ever application of the Iran Sanctions Act 
could be an option,"  which could damage OMV's reputation, the 
Standard quoted the US Embassy representatives. 
Centrist daily Die Presse headlined "US wants to 'blacklist' OMV," 
and suggested that although the United States has said it could 
impose sanctions against OMV, should the energy provider go ahead 
with its large-scale business deal with Iran, these warnings are 
"barely more than empty threats. Washington has urged OMV to agree 
to a break in negotiation with Tehran, pointing to the boost the 
deal could give Iran's regime at a critical stage in the 
international community's efforts to motivate Tehran to abandon its 
nuclear program. However, the US government is well aware that the 
dispute with OMV is of a symbolic rather than factual nature: They 
don't want to be accused of having done nothing, should the OMV's 
new business partner Iran suddenly turn out to have acquired nuclear 
weapons," the Presse argued. 
Mass-circulation daily Kurier quoted the US Embassy representatives 
as stressing that "we do not want the Iran deal to proceed." It is 
the "wrong project at the wrong time in the wrong place: After all, 
the regime in Tehran supports international terrorism, ignores human 
rights, and is blithely pushing ahead with its more than 
questionable nuclear program." Although the "Iran Sanctions Act has 
never been applied so far, it could become more than just an idle 
threat, given that both the US Republicans and the Democrats have 
been calling for tougher economic sanctions against Iran and its 
business partners, and are busily working on a new draft law," the 
Kurier said. 
 
 
Meeting Planned Between Abbas and Olmert 
 
¶3. Movement seems to be possible in the deadlocked Middle East peace 
process with a planned meeting between Palestinian President Mahmoud 
Abbas and Israeli Prime Minister Ehud Olmert in Egypt next week. A 
proposal has also been submitted to nominate a new special envoy for 
the Middle East. According to US media reports, outgoing British 
Premier Tony Blair could be appointed to the job. Meanwhile, 
President Abbas has condemned the militant group Hamas as "murderous 
terrorists and coup plotters" in response to the group's takeover of 
Gaza last week. In his first speech since the takeover, Abbas ruled 
out talks with Hamas, but underscored the crisis should not prevent 
peace negotiations with Israel. Hamas has reacted angrily, with the 
group's leader in Lebanon dismissing Abbas' speech as "full of 
lies," wrote liberal daily Der Standard. 
 
 
Taliban to Target Kabul 
 
¶4. The Taliban in Afghanistan are now changing their strategy to 
target the capital Kabul according to a spokesperson for the 
militants. In an interview with British news network BBC, the 
spokesperson said the Taliban were recovering after NATO had 
infiltrated the group and killed some of its leaders, and added that 
his group is now adopting the same tactics as insurgents in Iraq, 
according to ORF radio early morning news Morgenjournal. 
Kilner