VZCZCXYZ0011
PP RUEHWEB

DE RUEHVI #2041/01 2131204
ZNR UUUUU ZZH
P 011204Z AUG 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 8224
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY

UNCLAS VIENNA 002041 
 
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: August 1, 2007 
 
 
Mud-Throwing Between Elsner and Flttl 
 
¶1. All Austrian media report extensively on the continuation of the 
BAWAG trial where the two main figures, former BAWAG boss Helmut 
Elsner and investment banker Wolfgang Flttl have apparently 
abandoned all conventional politeness and are attacking each other 
with full force. When Flttl explained how he lost 639 million 
dollars in just three days and that the BAWAG must have been aware 
of this, Elsner accused him of betrayal and lying. Flttl, on the 
other hand, responded by saying that the BAWAG managers were either 
"complete idiots" or had been too stupid or too lazy to read the 
English version of the contract between the bank and himself. 
According to mass circulation tabloid "Neue Kronenzeitung," Flttl 
goes as far as to claim that Elsner threatened him - allegedly, the 
former BAWAG boss had indicated that if he were to go down, he would 
see to it that Flttl and his father Walter Flttl, who was formerly 
Director General of the BAWAG, would go down with him. With this 
lever, Elsner succeeded in extracting a promise from Flttl that he 
would transfer his private fortune to BAWAG. Helmut Elsner rejected 
these charges, saying that he merely "drew his [Flttl's] attention 
to the fact that it would be an enormous personal scandal for him if 
the losses were made public." With regard to Flttl's claim that 
Elsner had given him the order to continue speculating with the 
Japanese yen even after a large part of the money was already lost, 
"Die Kronenzeitung" quotes Elsner as saying that "I cannot even 
charge him with erring here. He is simply lying." 
 
Turn Your Insides Out 
¶2. This will be the motto from now on for passengers who have booked 
a flight to the US, says Oe1 morning radio news in reference to the 
new agreement between the US and the EU Commission regarding the 
transfer of passenger data to US authorities, effective August 1. 
Data protection is a critical issue in this regard - data protection 
specialists have already criticized the agreement, pointing out that 
individual states or the EU Commission have virtually no control 
over how the passenger data are used. Passengers now have to give 
their US address at the check-in as well as information such as 
credit cards and mobile phone numbers. This is expected to 
considerably delay check-in procedures. [Oe1 radio morning news] 
 
America's New Weapons Bazaar in the Middle East 
 
¶3. All Austrian media report extensively on the new US plan to 
provide massive military assistance to its allies in the Middle 
East, pointing out that there is more than generosity behind the 
expensive gifts that Secretary of State Condoleezza Rice and 
Secretary of Defense Robert Gates are to distribute during their 
 
SIPDIS 
Middle East trip. They mean excellent business for the US arms 
industry and will serve important strategic goals of the Bush 
administration. 
Centrist daily "Die Presse" analyzes the motives behind the 
extensive weapons assistance the US is planning to give to Middle 
Eastern states. There is, first of all, the desire to increase 
pressure on Iran where the fronts are still hardened on the chief 
issue of controversy between the two arch enemies:  The nuclear 
ambitions of Iran. Therefore, the Bush administration is trying to 
strengthen the Gulf states versus their neighboring military power 
Iran, while at the same time building up Israel's conventional 
defense potential to prepare that country for a possible military 
showdown with Iran. Arming Israel also serves as a warning signal in 
the direction of Syria and the Hezbollah. Finally, with its promise 
of high-tech weapons, the Bush administration wants to keep Saudi 
Arabia on its best behavior with regard to Iraq. The Saudis have so 
far been very critical of the Shiite-dominated Iraqi government and 
US intelligence services even claim to have found evidence that 
Saudi Arabia actively supports Sunni rebels in Iraq. Saudi Arabia is 
an uncertain ally in the "war against terror," writes the daily in 
reference to the counrty's al-Qaida links. This is also the reason 
why Bush's plans met with massive resistance on the part of the 
Democrats in Congress. 
 
Islamic States:  Murder of Hostages Is Barbaric Act 
 
¶4. The fate of the 21 South Koreans and one remaining German still 
being held hostage by the Taliban is still open - there has been a 
new ultimatum for the South Koreans that will expire on Wednesday at 
9:30. The government in Kabul has already rejected the demands of 
the kidnappers, saying that they did not want to encourage 
extremists by making concessions. In the meantime, the Organization 
of the Islamic Conference (OIC) has condemned the kidnappings and 
demanded the immediate release of the hostages. [Der Standard; other 
Austrian media] 
Final Act in Northern Irish Conflict 
 
¶5. After decades of bloody fighting, the British mission in Northern 
Ireland came to an end on Tuesday at midnight. After 38 years, 
London withdrew its army.  "Operation Banner" during the course of 
which more than 300,000 soldiers were sent to Northern Ireland had 
been the longest military mission in the history of the British 
armed forces. 
The governments in Britain and Northern Ireland have both welcomed 
the end of the military mission. Semi-official daily "Wiener 
Zeitung" quotes Irish Foreign Minister Dermot Ahern's statement that 
"[t]his is a further stage on the way to a completely normal, 
peaceful life in Northern Ireland." Of the 27,000 British soldiers, 
5,000 will remain in the country, writes the daily - but their role 
will be that of a "peace garrison" in the Northern Irish border town 
Crossmaglen. It is to be hoped that the British have learned from 
their Northern Irish experience, writes Martin Alioth, commentator 
for independent daily "Der Standard," in reference to further 
British military missions:  "There are numerous British who believe 
that the army rescued Northern Ireland from the apocalypse. The 
truth is grayer, however - after all, the military was only a 
neutral mediator for a brief period of time and then soon turned 
combatant, giving the IRA the opportunity to redefine the demands of 
the civil rights movement in terms of a post-colonial liberation 
war, which then degenerated into a civil war. ... Now British troops 
are needed elsewhere more urgently. But it would be dangerous if 
they exported the Northern Irish experiences one-to-one to far-away 
deserts." 
 
UN Sends Peacekeepers to Darfur 
 
¶6. After lengthy negotiations, the UN Security Council decided on 
Tuesday to send about 26,000 soldiers to the Sudanese crisis region 
Darfur - so far the most comprehensive and one of the most expensive 
missions of UN peacekeeping forces. The conflict in Darfur has 
already cost more than 200,000 lives. 
Independent daily "Der Standard" reports on the latest UN decision, 
which was also backed up by British Prime Minister Gordon Brown, who 
warned that there will be consequences if Sudan does not adhere to 
the conditions stipulated in the much-revised resolution. "In case 
of a violation of the ceasefire, there will be further sanctions," 
the daily quotes from Brown's statement. The British Prime Minister 
called Darfur "the greatest humanitarian catastrophe" the world has 
ever seen. However, the unanimity with which the resolution was 
passed could only be achieved by eliminating some of the critical 
passages from the resolution text, writes "Der Standard." In the 
final version, there is no more mention of the continuing attacks on 
the part of government troops and Janjaweed militia on civilians and 
members of assistance organizations. However, the western claim that 
the use of violence for self-defense was permissible was maintained 
- this is a guarantee that members of humanitarian organizations can 
move about freely in Darfur. 
Kilner