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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: May 28, 2008 
 
 
GOVERNMENT TO ACT ON FUEL PRICES 
 
¶1. The Austrian government, under pressure to act against rising 
fuel prices, has said it will respond by introducing a series of 
countermeasures. Vice-Chancellor and Finance Minister Wilhelm 
Molterer (OeVP) told ORF radio this morning that both commuter and 
mileage allowances will be raised "considerably," in order to take 
some of the financial burden off those most hard hit by record fuel 
prices. The move came after a number of provincial governors joined 
automobile clubs in calling for a reduction in fuel taxes and price 
controls. The Governor of Tyrol, Herwig van Staa (OeVP) suggested a 
special conference on the issue and Salzburg's Governor Gabi 
Burgstaller (SPOe) also demanded a reduction in fuel taxes. The 
Vice-Chancellor ruled out a reduction of these taxes, however. 
Responding to recent demands to act against growing fuel prices, 
Vice-Chancellor and Finance Minister Wilhelm Molterer (OeVP) 
underscored in an interview aired on ORF radio's early morning news 
Morgenjournal that "considerable increases of commuter and mileage 
allowances, a large-scale initiative towards boosting competition, 
and a proposal at the European level for a speculation tax" are 
among the measures the Austrian government intends to implement in 
this area. Molterer is to present the package in the Council of 
Ministers today, and detailed figures are to be published following 
the cabinet meeting. The Minister dismissed calls for fuel tax cuts, 
arguing that this "would send the wrong signal," given that part of 
the tax goes towards financing the Austrian climate protection 
funds. 
Meanwhile, centrist daily Die Presse in a feature article looks into 
why "oil and gasoline prices are at a record high, despite the fact 
that there is no market shortage of oil. While the costs of oil 
production have virtually stayed the same, speculation and growing 
demand from China and India have caused prices to skyrocket." 
Analyzing the "era of oil," the Presse predicts that "in the long 
term, oil prices will continue to rise." Among the "manifold 
reasons" for this development is the "growing power of the oil 
producing cartel OPEC, the ever-growing global demand and dwindling 
oil reserves." 
 
 
DOCTORS HELD STRIKE MEETING 
 
¶2. Talks are to continue this afternoon between Austrian Healthcare 
Minister Andrea Kdolsky (OeVP) and doctors' representatives on 
health reform, following a crisis meeting with some 2,000 doctors 
gathered at the Austria Center in Vienna on Tuesday evening to 
discuss strike action. Agreement on continued talks came between the 
head of the Vienna Medical Chamber Walter Dorner and Austria's 
Finance Minister Wilhelm Molterer. The threat of strikes is not off 
the table, however, and the planned action would close all doctors' 
offices for three days from June 16, during the European Soccer 
Championship. Doctors have said they oppose government plans to 
allow chemists to supply patients with cheaper generic versions of 
medicines prescribed, and re-structuring of health fund 
administration. Mass-circulation daily Kurier on its front page 
reports on the "doctors' complaints," saying "they are concerned the 
planned healthcare reform will be to their and the patients' 
disadvantage."  Despite the conflict and massive criticism, "hectic 
negotiations" on a political solution continue between the doctors, 
the medical chamber and the government. Like the Kurier, 
mass-circulation tabloid Kronen Zeitung writes about a "face-to-face 
discussion" between Medical Chamber boss Walter Dorner and 
Vice-Chancellor and Finance Minister Wilhelm Molterer. Talks aimed 
at resolving the issue "are in full swing at all levels concerned," 
and are to "continue until the last moment." The tabloid adds, 
however, that "it remains to be seen whether the compromise 
proposals that may have come into play are substantial enough to 
sway the doctors." 
 
 
"A REPUBLICAN WITH A SENSE FOR HITTING THE RIGHT NOTES" 
 
¶3. On May 24, foreign affairs editor Christoph Prantner of liberal 
daily Der Standard published a portrait of Ambassador-Designate 
David Girard-diCarlo. By nominating the 65-year-old Republican, 
Prantner says, the US "President wants to send a distinguished 
lawyer from Pennsylvania as US Ambassador to Vienna. Girard-diCarlo 
is Chairman of the law firm Blank Rome LLP in Philadelphia, as well 
as Managing Director of the lobbying company Blank Rome Government 
Relations LLC in Washington." And, according to one of his 
Republican colleagues quoted in the Philadelphia Inquirer, "he is 
'one of the smartest guys you could meet.'" Friends have also 
described Mr. Girard-diCarlo as a "big fan of music, who will 
certainly hit all the right notes in Vienna," says Prantner. In his 
portrait of Ambassador-Designate David Girard-diCarlo, published in 
May 24 in liberal daily Der Standard, foreign affairs editor 
Christoph Prantner points out that in the "ranking of the 'Texans 
for Public Justice,' David Girard-diCarlo is listed as a 'ranger,' 
which puts him on a par with Susan Rasinski McCaw, who left her post 
as US Ambassador in Vienna in November 2007, and New York 
businessman Charles Gargano, who should have succeeded McCaw." The 
"distinguished lawyer from Pennsylvania" was "born in a Philadelphia 
suburb, and the first member of his family who made it to college." 
He is an expert for economic and trade law as well as for government 
affairs, has worked with various law firms since the 1970s, and has 
acted as head of Blank Rome since the early 1990s, thus "taking his 
place among the US establishment for good. A good lobbyist, 
Girard-diCarlo also maintained contacts to Democrats, but his true 
affiliation is with the Republicans. He already collected money for 
George H. W. Bush, who then put him on the Board of Directors of the 
railroad company Amtrak. Later, he supported Tom Ridge for Governor 
of Pennsylvania. These days, the lawyer once again serves as "money 
man" for Republican presidential candidate John McCain. 
Girard-diCarlo is married, Knight of the Papal Order of St. Gregory, 
and holder of several awards bestowed by the Jewish Community in the 
US. Friends claim that he is a big fan of music and will certainly 
hit the right notes in Vienna." 
 
 
MCCAIN CALLS FOR DOWNSIZING OF US NUCLEAR WEAPON ARSENAL 
 
¶4. Republican candidate John McCain has said he wants to reduce the 
number of his country's nuclear weapons, should he become US 
President in November. "The Cold War has been over for 20 years, and 
it is time for measures to downsize considerably the atomic weapons 
arsenals worldwide," he told supporters in Denver, Colorado. In what 
Austrian media describe as "barely veiled criticism of incumbent 
George W. Bush," McCain emphasized the United States needed to 
"assume the kind of leading role again the world expects from us - 
along the tradition of US Presidents who committed themselves to 
reducing the nuclear threat to humanity." According to a report on 
independent provincial daily Salzburger Nachrichten online, 
Republican candidate John McCain has said that as President he would 
reduce the number of US nuclear weapons, and emphasized the 
necessity for "measures to downsize considerably the atomic weapons 
arsenals worldwide." At the same time, he dismissed as "naove" the 
strategy voiced by Democratic presidential hopeful Barack Obama, to 
directly discuss their controversial nuclear programs with Iran and 
North Korea. Negotiations alone would not cause "hostile states" to 
abandon their nuclear ambitions, McCain argued. However, he also 
rejected the notion, put forward by some of the Bush 
administration's "hawks," that the proliferation of atomic weapons 
can be stopped with military means only. The use of force must 
always be the last, never the first resort, the Salzburger 
Nachrichten quotes McCain. 
 
 
IAEA SAYS SUSPICIONS REMAIN OVER IRAN NUCLEAR PROGRAM 
 
¶5. The Vienna-based International Atomic Energy Agency (IAEA) says 
it is still seriously concerned about Iran's alleged research into 
nuclear weapons, and has called on Teheran to provide more 
information on its nuclear program. In a report to the UN Security 
Council, the IAEA says Iran is holding back information on 
high-explosives testing relating to its nuclear ambitions. Iran has 
dismissed Western intelligence suggesting it has covertly studied 
how to design atomic bombs as "baseless, forged or irrelevant." 
Liberal daily Der Standard says that in the wake of the latest IAEA 
report on Iran's nuclear ambitions, Germany has threatened to 
increase pressure on Tehran over the issue. Berlin "wants some 
answers in connection with the IAEA report," the daily says, and 
quotes German Foreign Minister Frank-Walter Steinmeier, who 
stressed: "A number of questions have remained unanswered, regarding 
which we are pushing for quick answers." Iran had as yet failed to 
prove without doubt that it is willing to cooperate with the 
international community, Steinmeier added. 
Meanwhile, in her commentary on the international community's 
"helpless states," foreign affairs writer for the Standard Julia 
Raabe said: "Despite three UN sanction rounds and multiple appeals, 
Iran can obviously afford to determine where to grant insight and 
where not. Sometimes, it is more cooperative than at other times. In 
the IAEA reports, it is always the listing of many details and 
singular events that indirectly amounts to an evaluation. But 
always, they reveal the helplessness of the international community 
which has no effective means to get Iran to engage in real 
cooperation. The West has no choice but to continue its 
carrot-and-stick strategy. EU chief diplomat Javier Solana will soon 
present Tehran with an incentive package, as was already done in 
2006 - and was rejected at the time. US calls for a tough course 
have become quieter in recent days:  In November a new President 
will be elected. Perhaps that is a chance. For the time being, 
Tehran continues to do what it wants." 
 
 
NEPAL SET TO BECOME REPUBLIC 
 
¶6. Nepal is due to become a republic today, as the constituent 
assembly is about to take steps to formally abolish the monarchy 
after hundreds of years and prepare a new constitution. Once the 
assembly declares the monarchy officially over, King Gyanendra and 
his family will be given up to 30 days to vacate the royal palace. 
The king was stripped of all his powers two years ago after he gave 
up direct rule following widespread popular protests. The removal of 
the monarchy is a victory for the country's Maoist rebels, who 
fought a 10-year civil war to end the king's rule. 
 
MCCLELLAN CRITICIZES BUSH OVER IRAQ 
 
¶7. Former White House spokesperson Scott McClellan says in his soon 
to be published book that President George W. Bush "veered terribly 
off course" and was "not open and forthright" on Iraq. In the memoir 
due out next week McClellan also suggests President Bush relied on 
"propaganda" to sell the US-led Iraq War. The Washington press corps 
was too easy on the administration during the run-up to the war, the 
former spokesperson added. 
Kilner