Identifier
Created
Classification
Origin
05VIENNA3024
2005-09-12 10:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:
AUSTRIAN VIEWS ON DEVELOPMENT: DEVELOPMENT ISSUES
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS VIENNA 003024
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN AU UNGA
SUBJECT: AUSTRIAN VIEWS ON DEVELOPMENT: DEVELOPMENT ISSUES
AT THE HLE AND INNOVATIVE SOURCES FOR FINANCING DEVELOPMENT
REF: A) STATE 162146 B) STATE 160880
UNCLAS VIENNA 003024
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN AU UNGA
SUBJECT: AUSTRIAN VIEWS ON DEVELOPMENT: DEVELOPMENT ISSUES
AT THE HLE AND INNOVATIVE SOURCES FOR FINANCING DEVELOPMENT
REF: A) STATE 162146 B) STATE 160880
1. (U) Econ Unit Chief delivered ref A and B talking points
to Thomas Nader, Director (A/S-level) of the MFA's
Multilateral Development Cooperation Division on September 6
and to Thomas Wieser, Director General (U/S-level) of the
Ministry of Finance's Economic Policy and Financial Markets
Directorate on September 8. Post also conveyed the USG
position on the declaration on innovative financing (ref A)
to Elisabeth Udof-Strobl, Director General of the Ministry of
Economy's Tourism and Historical Sites Directorate; Manfred
Bialonczyk, Head of the Ministry of Transportation's Aviation
and Navigation Division; and Anna Maria Hochhauser, Secretary
General of the Austrian Chamber of Commerce.
Development Issues in the UN High Level General Assembly
-------------- --------------
2. (SBU) Nader said the GoA supported the USG on the
substance of the three structural changes to the development
chapter: acknowledging the efforts and achievements since the
Millennium Summit and Monterey Conference; recognizing the
multifaceted contributions to development assistance,
especially trade and FDI; and elaborating governance issues
more prominently in the development chapter. However, from a
procedural standpoint, Nader questioned whether pushing for
modifications "at such a late date" might not encounter
resistance from certain G-77 members and encourage others to
put forward more frivolous and controversial changes.
Declaration on Innovative Sources of Financing
-------------- -
3. (SBU) Both Nader and Wieser stated that Austria had not
yet decided whether to support the declaration, because
Austria agreed with some parts of the declaration, e.g., a
reference to ODA targets, but it would not endorse an
international finance facility (IFF). Nader regretted that
Spain, France, and Germany had not consulted with other EU
Member States before launching this initiative.
4. (SBU) ODA Targets: Nader noted that Member States had
affirmed their commitment to reach an ODA level of 0.7% of
GDP by 2015, so re-affirming this target would be perfectly
acceptable. Nader and Wieser noted that current ODA levels
were not sufficient to achieve the Millennium Development
goals. Innovative financing sources for ODA were necessary,
but donors should concurrently increase and maximize the
benefits of non-ODA sources of assistance, such as trade
liberalization and FDI.
5. (SBU) Airline Tax: Wieser maintained that the effects of
a small airline tax on consumers and the airline industry
would be marginal. Austria could support such a tax, but
only if it were universally mandatory, and would thus not
distort competition. Wieser admitted that there were widely
varying views within the EU on whether and how to implement
an airline tax. Wieser noted that Chancellor Schuessl had
suggested earlier this summer, in order to provoke a
discussion, that the EU could earmark some of the proceeds
from an airline tax for the EU's general budget revenues, as
well as for ODA. On September 9, Finance Minister Karl-Heiz
Grasser publicly stated Austria's opposition to a voluntary
airline tax, noting that it would have a negative impact on
passengers and airlines.
6. (SBU) IFF: Wieser and Nader were adamant that Austria
would not participate in any IFF development schemes. Wieser
noted that the proposed IFF scheme might effect a decline in
ODA in out-years, as governments pay back the IFF bonds from
their assistance budgets. Moreover, according to Wieser, the
IFF scheme could crowd out other forms of assistance, e.g.,
trade, and there are legitimate concerns about the absorptive
capacities of some developing countries. Wieser added that
Austria, like the U.S., did not want to pay for current
development assistance out of future aid budgets.
Brown
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN AU UNGA
SUBJECT: AUSTRIAN VIEWS ON DEVELOPMENT: DEVELOPMENT ISSUES
AT THE HLE AND INNOVATIVE SOURCES FOR FINANCING DEVELOPMENT
REF: A) STATE 162146 B) STATE 160880
1. (U) Econ Unit Chief delivered ref A and B talking points
to Thomas Nader, Director (A/S-level) of the MFA's
Multilateral Development Cooperation Division on September 6
and to Thomas Wieser, Director General (U/S-level) of the
Ministry of Finance's Economic Policy and Financial Markets
Directorate on September 8. Post also conveyed the USG
position on the declaration on innovative financing (ref A)
to Elisabeth Udof-Strobl, Director General of the Ministry of
Economy's Tourism and Historical Sites Directorate; Manfred
Bialonczyk, Head of the Ministry of Transportation's Aviation
and Navigation Division; and Anna Maria Hochhauser, Secretary
General of the Austrian Chamber of Commerce.
Development Issues in the UN High Level General Assembly
-------------- --------------
2. (SBU) Nader said the GoA supported the USG on the
substance of the three structural changes to the development
chapter: acknowledging the efforts and achievements since the
Millennium Summit and Monterey Conference; recognizing the
multifaceted contributions to development assistance,
especially trade and FDI; and elaborating governance issues
more prominently in the development chapter. However, from a
procedural standpoint, Nader questioned whether pushing for
modifications "at such a late date" might not encounter
resistance from certain G-77 members and encourage others to
put forward more frivolous and controversial changes.
Declaration on Innovative Sources of Financing
-------------- -
3. (SBU) Both Nader and Wieser stated that Austria had not
yet decided whether to support the declaration, because
Austria agreed with some parts of the declaration, e.g., a
reference to ODA targets, but it would not endorse an
international finance facility (IFF). Nader regretted that
Spain, France, and Germany had not consulted with other EU
Member States before launching this initiative.
4. (SBU) ODA Targets: Nader noted that Member States had
affirmed their commitment to reach an ODA level of 0.7% of
GDP by 2015, so re-affirming this target would be perfectly
acceptable. Nader and Wieser noted that current ODA levels
were not sufficient to achieve the Millennium Development
goals. Innovative financing sources for ODA were necessary,
but donors should concurrently increase and maximize the
benefits of non-ODA sources of assistance, such as trade
liberalization and FDI.
5. (SBU) Airline Tax: Wieser maintained that the effects of
a small airline tax on consumers and the airline industry
would be marginal. Austria could support such a tax, but
only if it were universally mandatory, and would thus not
distort competition. Wieser admitted that there were widely
varying views within the EU on whether and how to implement
an airline tax. Wieser noted that Chancellor Schuessl had
suggested earlier this summer, in order to provoke a
discussion, that the EU could earmark some of the proceeds
from an airline tax for the EU's general budget revenues, as
well as for ODA. On September 9, Finance Minister Karl-Heiz
Grasser publicly stated Austria's opposition to a voluntary
airline tax, noting that it would have a negative impact on
passengers and airlines.
6. (SBU) IFF: Wieser and Nader were adamant that Austria
would not participate in any IFF development schemes. Wieser
noted that the proposed IFF scheme might effect a decline in
ODA in out-years, as governments pay back the IFF bonds from
their assistance budgets. Moreover, according to Wieser, the
IFF scheme could crowd out other forms of assistance, e.g.,
trade, and there are legitimate concerns about the absorptive
capacities of some developing countries. Wieser added that
Austria, like the U.S., did not want to pay for current
development assistance out of future aid budgets.
Brown