VZCZCXYZ0023
PP RUEHWEB

DE RUEHVI #2525/01 2711118
ZNR UUUUU ZZH
P 281118Z SEP 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 8692
RUEKJCS/OSD WASHDC PRIORITY
RHEHAAA/WHITEHOUSE WASHDC PRIORITY

UNCLAS VIENNA 002525 
 
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 28, 2007 
 
More Money for Provinces and Communities 
 
¶1. The good economic figures have made it possible:  Austria's 
provinces and communities will get a considerably larger share from 
federal tax revenues. An agreement on revenue sharing was concluded 
between the federal government and the provinces and communities, 
according to which the former will provide an additional 320 million 
euros, among them 100 million which are earmarked for improving the 
health system and hospitals. The agreement is valid for six years, 
starting 2008 - so far, revenue sharing agreements have always been 
for four years only. [Kurier, p. 1 and 3; other Austrian media] 
In exchange for the increased portfolio, the provinces and 
communities have committed to bearing part of the costs for a 
minimal guaranteed income and health care plans of the government, 
reports centrist daily "Die Presse."  However, the additional 
expenses for those areas are limited to 66 million euros. The deal 
between federal government and the provinces and communities will be 
financed with the revenues from Austria's good economic development. 
No plans were made for saving money, which has led some experts to 
voice criticism. The daily quotes expert for reforms in the 
executive sector, Bernd Raschauer, as pointing out that the chance 
for medium-term reforms was missed, for instance with regard to 
housing assistance and health care. According to Raschauer, simply 
giving more money is no incentive for changes. "Missed opportunities 
for structural reforms" were likewise identified by President of the 
Austrian Chamber of Commerce, Christoph Leitl, writes independent 
daily "Der Standard." 
 
Austrian Competition in New York 
 
¶2. Federal Chancellor Alfred Gusenbauer and Minister for European 
and International Affairs Ursula Plassnik were trying to outdo each 
other when it comes to who has the upper hand in representing 
Austria at the United Nations General Assembly this week. While the 
Chancellor had his meetings with Bush, Schwarzenegger, Gore and 
Clinton, Plassnik even had to fight for her traditional right to 
hold a speech before the General Assembly - the Chancellor's office 
had wanted to claim this right on Gusenbauer's behalf. All in all, 
the Chancellor's trip was perfectly stage-managed - a clear success 
for the foreign policy offensive of the SPOe.  [Die Presse, p. 6] 
 
Reluctant Kosovo Talks in New York 
 
¶3. On the sidelines of the UN General Assembly on Friday, the 
highest political representatives of Serbia and Kosovo will finally 
hold direct talks. The EU, the US and Russia have arranged for the 
meeting. Although both parties insist on their positions, a solution 
should be achieved by December. However, expectations are low - it 
is generally assumed that the most likely scenario is the 
declaration of an independent for Kosovo on the part of Pristina. In 
this case, the US has already announced its intention to 
unilaterally acknowledge Kosovo. The government in Belgrade is 
likewise preparing for such a scenario - which it holds to be an 
illegal situation, a kind of "political underworld," as Serbia's 
Prime Minister has called it.  [Der Standard, p. 4; other Austrian 
media] 
According to independent daily "Der Standard," Serbia insists on its 
territorial integrity which was confirmed in UN resolution 1244 and 
the UN Charter and has announced diplomatic measures against those 
countries that agree to grant Kosovo unilateral recognition. For the 
Kosovarian government, on the other hand, independence is a must. 
Prime Minister Agim Ceku has announced its readiness to talk about 
the relations between two sovereign states and explain a detailed 
plan about how an independent Kosovo will be administered. Centrist 
daily "Die Presse," on the other hand, refers to the frantic search 
for "creative solutions" on the part of the contact group 
(consisting of the US, Russia, France, Britain), and here especially 
the so-called "Hong Kong model." It would make Kosovo a special 
administrative area for a certain limited time. However, Viennese 
Balkan expert Vedran DQihic is highly skeptical of this plan and is 
quoted by the daily as stating: "The political elite in Pristina 
cannot accept this. And if the US forces it to accept it, this could 
spark off a new outbreak of violence." 
 
Junta Threatens Extreme Action 
 
¶4. Burma's Generals are now cracking down hard on the protest 
movement in the country. According to eye witnesses, on Thursday, 
troops arbitrarily opened fire on people and buildings alike. There 
were at least 10 victims, among them two foreign photo journalists. 
Hundreds of demonstrators were arrested. The violent action of the 
government has not lead to abatement of the protests. International 
crisis diplomacy is under way, but diplomats keep its contents 
secret. The fall of the junta would also jeopardize billions in 
 
SIPDIS 
investments, especially for China, but also for France, India, Japan 
and South Korea. [Salzburger Nachrichten p. 9; other Austrian 
media] 
In the meantime, Burma's neighboring states of China, Thailand, and 
India fear that they will be hit by refugee waves and are trying to 
ensure stability since freedom and democracy in the country were 
never on their list of priorities, writes independent daily 
"Salzburger Nachrichten." Analyzing the situation, the daily comes 
to the conclusion that "this junta seems determined to sit out the 
uprising until - as has happened earlier - the international 
community once again loses interest in Burma and the forgotten 
nation will once again relapse into the old isolation and 
anonymity." One potential hope is a possible palace revolution on 
the part of defecting troops. However, the daily is quick to point 
out that many of the soldiers are part of the minorities that are 
now persecuted and found a home in the army - which is why they are 
now ready to do its bidding. In the meantime, the EU is working on 
"targeted sanctions," reports independent daily "Der Standard." The 
ambassadors of all the 27 EU states have formed committees that are 
supposed to work out respective proposals. Likewise, US President 
George W. Bush has advocated support for the "courageous" citizens 
of Burma. He called on the soldiers and police forces not to use 
violence. In addition, the United States has announced stricter 
economic sanctions against 14 members of the Burmese military junta, 
writes the daily. 
 
US Senate Wants to Divide Iraq 
 
¶5. In view of the continuing violence in Iraq, US Senators have 
proposed a resolution in favor of a division of Iraq according to 
ethnic groups. The proposal was brought forward by Democratic 
Senator Joe Biden on Wednesday, and more than 20 Republicans also 
supported it.  The Bush administration rejects the idea of a 
division of the country; Iraq's neighboring countries Saudi-Arabia 
and Turkey have likewise objected to the plan. In the meantime, 
Iraq's President Nuri al-Maliki, in his address to the United 
Nations, has asked the international community for more assistance 
for the Iraqi reconstruction efforts. [Wiener Zeitung, p. 7] 
McCaw