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P 131342Z SEP 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 8565
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UNCLAS VIENNA 002406 
 
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: September 13, 2007 
 
 
Three Islamists Arrested in Austria 
 
¶1. Three Islamists arrested in Vienna are said to have had ties to 
terrorist network al Qaeda. The two men and one woman are suspected 
of having produced and published a video message, which -- according 
to ORF radio -- "indirectly" threatened attacks against Austria and 
Germany, unless they withdrew their military personnel from 
Afghanistan. Speaking on ORF television yesterday, Austrian Interior 
Minister Guenther Platter from the OeVP emphasized there was no 
direct evidence of a terrorist act being planned in Austria. He 
stressed, however, that al Qaeda had apparently increased its 
recruiting activities in Austria. According to the Minister, the 
suspects are Austrian citizens and second-generation migrants from 
Arab countries. According to the Director of Public Security, Eric 
Buxbaum, surveillance had revealed that the suspects were part of a 
network which discussed obtaining explosives, but he also 
underscored there was no evidence of a direct threat. The video 
appeared on the internet in March this year. 
All Austrian media prominently report on the arrest of three 
Islamists in Vienna, who are suspected of having produced a video 
indirectly threatening attacks against Austria and Germany, unless 
the two countries withdrew their soldiers from Afghanistan. 
Mass-circulation daily Kurier notes that this was the first time a 
threat from circles believed to have closer ties with al Qaeda was 
issued directly against Austria. After the message was posted on the 
internet in March 2007, the Austrian Federal Office for the 
Protection of the Constitution and Counter-Terrorism (BvT) had 
launched the most extensive anti-terror operation in its history, 
which was carried out in cooperation with German and US intelligence 
services. Following months of investigations, the three suspects 
were arrested on Wednesday, the Kurier writes.  Mass-circulation 
tabloid Oesterreich points out that the "al Qaeda activist 'Amir' 
was born in Austria - and ended up shooting threat videos." 
According to the newspaper, one of "bin Laden's mouthpieces was 
arrested in Vienna with his terror cell." Semi-official daily Wiener 
Zeitung says that "well-integrated Muslims are spreading fear - but 
Interior Minister Platter does not a see a direct threat" of an 
attack in Austria. Liberal daily Der Standard quotes Platter as 
describing the suspects as "quasi franchisees of al Qaeda." The 
Minister also underscored that there is no evidence to suggest a 
connection between the recently foiled attacks in Germany and the 
three second-generation Muslims arrested in Vienna this week. 
Meanwhile, centrist daily Die Presse suggests that the "children of 
migrants and persons having converted to Islam, who are usually 
perceived as the nice and inconspicuous guys from next door, have 
become the perfect recruiting material for al Qaeda in Europe." 
 
 
Meinl Bank in Trouble 
 
¶2. The Austrian financial market authorities have turned their eyes 
to Meinl Bank, as they are broadening their investigation of 
suspected market manipulation on the part of the listed property and 
investment firm Meinl European Land (MEL). The inquiry into MEL's 
dealings began three weeks ago after it became known that MEL 
triggered big losses in its share price with a buy-back of its own 
shares. 
All major Austrian media report on the Austrian financial market 
authorities' investigation of Meinl Bank in connection with 
suspected market manipulation by the listed property and investment 
 
firm Meinl European Land (MEL). MEL incurred massive losses in its 
share price with a buy-back of its own shares, and Meinl Bank was 
responsible for placing the shares and collected commissions on the 
deals, semi-official daily Wiener Zeitung says. The authorities are 
trying to establish how MEL and Meinl Bank interacted, who the owner 
or owners of the 150 million shares in question are, and whether MEL 
should have informed its share-holders about the buy-back in advance 
rather than only while it occurred.  If MEL and Meinl Bank are found 
to have violated market laws, they could face severe fines. Stock 
market experts are calling for an overhaul of market legislation in 
light of this potential scandal, says the daily. Independent 
provincial daily Salzburger Nachrichten points out that Meinl Bank 
could be faced with a "torrent of legal actions," and the Chamber of 
Labor is already looking at whether a class action lawsuit might be 
an option. 
 
 
Putin Sacks Government 
 
¶3. Russian President Vladimir Putin dissolved the governing cabinet 
yesterday and appointed a little known official, Viktor Zubkov, as 
the new Prime Minister. Putin explained that he needed to appoint a 
government better suited to the election campaign and to "prepare 
the country for life after the election." The move has led to 
speculation in Russia that Zubkov may replace Putin as President 
when he retires next year. 
Reporting on Russian president Vladimir Putin's decision to dissolve 
his governing cabinet, independent provincial daily Salzburger 
Nachrichten points out that this was something of a surprise move, 
as the majority of experts had expected that deputy head of 
government Sergei Ivanov would be appointed as cabinet leader. This 
latest development is yet another pirouette performed by the Russian 
President: By replacing the rather drab Prime Minister Mikhail 
Fradkov with a new candidate to take his orders, the Kremlin boss is 
keeping alive the speculation over his successor, the daily says. 
Similarly, mass-circulation tabloid Kronen Zeitung calls Putin's 
move a "succession thriller. Once again, the Russian President is 
shaking things up in a rather mysterious way." And mass-circulation 
daily Kurier believes Vladimir Putin has "set the course for his 
succession." 
 
 
Interview with Kofi Annan 
 
¶4. A leading Austrian daily publishes and interview with former UN 
Secretary General Kofi Annan, who argues he believes "we could have 
 
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prevented the war in Iraq." 
In an interview with centrist daily Die Presse, Kofi Annan looks 
back at his time as UN Secretary General, stressing that the 
"position (of UN boss) is unlike any other job. It's extremely 
challenging, but someone has to do it." He was "grateful to the US" 
for its support in his election to the post, and he "always 
cooperated well with all governments, including the United States. 
If that changed, it was because of the Iraq crisis. You can almost 
draw a line between the time before and after the attacks of 
September 11. The tensions that emerged during the Iraq crisis 
affected not only the UN Secretariat General, but US allies the 
world over." He does not believe any war should ever be accepted as 
unavoidable, but "it was obvious the US wanted to become active in 
Iraq. Many of us worked very hard on making it possible for the UN 
inspectors to do their job. We tried until the last minute to 
prevent the war: we talked to governments; we tried it in the 
Security Council. The fact that we saw the war coming - whether in 
2002 or early 2003 - was never going to be an excuse to simply sit 
back and say the war is unavoidable, there's nothing we can do." 
Annan argues that the war in Iraq could have been avoided, "if the 
inspectors had been given more time to do their work; if every UN 
member country had agreed to play by the rules and wait for a 
Security Council resolution and to only become active after that 
resolution. In that case, there would not have been a war. But when 
some nations decided to act outside the Security Council, the 
'unavoidable' happened." 
McCaw