SCENESETTER FOR THE MAY 3-5 VISIT BY THE ATTORNEY

UNCLAS VIENNA 001227

SIPDIS

SENSITIVE
SIPDIS

DOJ PLEASE PASS TO BRUCE SWARTZ, BRIAN ROEHRKASSE AND
ANDREW BEACH; DHS PLEASE PASS TO DENNIS SEQUEIRA, MARC
SOREL AND CYNTHIA BERGMAN

E.O. 12958: N/A
TAGS: EUN PREL PTER AU
SUBJECT: SCENESETTER FOR THE MAY 3-5 VISIT BY THE ATTORNEY
GENERAL AND THE DHS DEPUTY SECRETARY

REF: A. VIENNA 1224

B. VIENNA 540

CORRECTED COPY OF VIENNA 1224. CHANGES IN REFERENCE LINE AND
PARAGRAPH 18.

--------------
Welcome To Vienna
--------------


1. (U) The Austrians are looking forward to your attendance,
and that of Deputy Secretary Jackson, at the May 3-5 JHA
Ministerials. These meetings constitute one of the more
significant events of the six-month Austrian Presidency of
the European Council.


2. (SBU) Austrian-U.S. relations have a solid base in the
common values of democracy and civil rights. Austria's
international activities contribute to our shared vision of a
world of peace, freedom, democracy and prosperity. Austria
holds the rotating Presidency of the EU Council for the first
half of 2006, giving us the opportunity to work with the
government at an unusually high level of intensity.


3. (SBU) Within the traditional "honest broker" role of the
EU Presidency country, Austria has used its chairmanship of
EU organs to focus attention on the economic and social
development of the western Balkans. Austria plays a vital
role in international peacekeeping missions there and
elsewhere. Austria especially stresses its engagement with
the new EU member states to its east. In addition, Austria
is promoting the U.S.-EU Transatlantic Partnership -- in
particular its economic aspects -- during its presidency.
Austria looks forwards to hosting the U.S.-EU summit in
Vienna this June.

--------------
The JHA Ministerials
--------------


4. (SBU) The initial May 3 U.S.-EU Ministerial meeting is a
follow-on to the ministerial with European leaders that you
and Secretary Chertoff co-hosted in Washington last October.
Your primary host for this event will be Austrian Minister of
the Interior Liese Prokop. Minister of Justice Karin
Gastinge will co-host. You last met both of them in October
2005 in Washington.


5. (SBU) The second ministerial on the morning of May 4 will
be the first-ever U.S.-Russia-EU multi-presidency meeting.
This will focus on JHA-related issues such as combatting
terrorism and organized crime and corruption. Russian
participants will include Minister of the Interior Nurgaliev,
FSB Director Patrushev and Presidential adviser Viktor
Ivanov.


6. (SBU) The final piece of the puzzle will be a massive
EU-sponsored gathering of Ministers of the Interior from 27
EU member states and aspirants, plus those countries which
border the European Union and which are the focus of the EU's
new neighborhood policy. The Austrians proposed this
meeting, and it is still a work in progress. The Austrians
initially invited some 70 ministers, but now expect only half
that number to attend. This offers the opportunity to meet
bilaterally with some of your colleagues on the margins of
the conference.

--------------
Political Situation
--------------


7. (SBU) Chancellor Wolfgang Schuessel's Austrian People's
Party (OVP) governs Austria in coalition with the Alliance
Future Austria (BZO). Schuessel faces parliamentary
elections in fall 2006. He remains more popular than his
party, which has lost a series of state elections since
taking office in 2000. However, the opposition Social
Democrats, who have led in polls for more than a year, have
suffered from the fallout of large speculation losses in a
bank the Trade Union Association owns. The election, once an
uphill battle for Schuessel, now appears to be a tossup.
Still, Schuessel cannot hope to form a new government with
his current coalition partner, which is in the process of
disintegration. Many observers expect the elections to
result in a grand coalition of the People's Party and the

Social Democrats, but a coalition of either of the major
parties with the Greens is also a possibility.

--------------
Promoting Democracy and Freedom
--------------


8. (SBU) Under Schuessel, Austria has played an active role
in advancing freedom and stability in the southeastern
Europe. Austria's foreign policy agenda for the presidency
starts in the Balkans, where Schuessel has been a solid
partner for the U.S. Austria assumed a EUFOR command in
Bosnia on November 30, 2005. The government has placed no
caveats on the use of its 600 troops in Kosovo and over 300
troops in Bosnia. As EU Council President, Schuessel has
facilitated progress on status questions in Kosovo and
elsewhere. Austrian diplomats are playing key roles, working
closely with the U.S. and with UN Special Envoy Martti
Ahtisaari. A broader area of emphasis for the Austrian
presidency is the EU's "New Neighborhood" policy. The
Austrians have sought to promote democracy and reform in
Belarus and share U.S. views on dictator Lukashenko.


9. (SBU) Austria has made modest but important contributions
to stability in Iraq: police trainers at the Iraqi Police
Academy in Jordan, humanitarian aid, substantial debt relief,
and offers of export credit guarantees. The Foreign
Ministry has sent a Special Envoy to Baghdad for the duration
of Austria's EU Presidency. Austria has twice sent troops to
Afghanistan, most recently in fall 2005 to assist the German
Provincial Reconstruction Team in Konduz with election
security.


10. (SBU) In the Broader Middle East, Austria has encouraged
the identification of common values as a response to
extremism. In November, Austria kicked off its presidency by
hosting a conference on "Islam in a Pluralistic World," which
Iraqi and Afghan Presidents Talabani and Karzai attended.
This event reinforced the message of the Bahrain Forum for
the Future conference and supported our broad goals. The
Austrian presidency has also led the EU effort to encourage
dialogue with the Muslim world in the wake of the Danish
cartoon controversy. In this connection, Austria will also
host an April 7-9 Conference of European Imams, which EU
Commission President Barroso plans to attend.

--------------
Economic Prosperity and Development
--------------


11. (SBU) Austrian business, especially in the financial
sector, has delivered real benefits to the area between
Austria and the Russian border. Austrian banks are important
in the region, holding almost a quarter share of the region's
banking sector. The stability they bring has been a basis
for commercial investment and development. USG officials
have been actively working with Austrian government and
financial interlocutors on issues of concern relating to
illicit finance, anti-money laundering/counter-terrorist
financing and WMD proliferation in the region.


12. (SBU) The Austrian bank Raiffeisen has found itself in
the spotlight because its subsidiary, Raiffeisen
International AG (RIAG),was instrumental in the January
natural gas deal between Russia and Ukraine. RUE was key in
"unblocking" the dispute. RIAG serves as a trustee for two
beneficial owners in the RUE joint venture with Gazprom. On
April 25, RIAG confirmed that the beneficial owners were
Ukrainian businessman Dmitry Firtash and Ukrainian banker
Ivan Fursin. The Austrian press has speculated that Firtash
is a close associate of Semyon Mogilevich, who is under
indictment in the U.S. for money laundering.


13. (SBU) The Austrians are skeptical on Turkish EU
membership, but have allowed accession talks to proceed.
However, Schuessel has repeatedly emphasized that Turkey must
meet all criteria for membership. Further, in his view, the
EU also has a lot of "homework" still to do before it will be
ready to absorb Turkey as a member state.


14. (SBU) Austrian firms have sought a strong presence in
the Middle East. Austrian business has made strides in
reestablishing itself in Iraq, and the Austrian government
opened a small Trade Office in Erbil in December. Austrian
Airlines was planning to become the first western airline to

institute regular flights to Iraq, but has postponed its
inaugural flight because of the security situation there.
Austrian development policy focuses on Official Development
Assistance, committing resources to a few "priority
countries" in order to maximize impact. The Austrians prefer
to channel emergency response through the EU, although they
made generous bilateral offers for assistance after Hurricane
Katrina.


15. (SBU) Austria has traditionally had close commercial
relations with Iran. An Austrian arms manufacturer sold
high-power sniper rifles to Iran in 2005 before the Austrian
government halted further deliveries. Iran recently shelved
plans to open a large trade center in the Austrian state of
Burgenland because of start-up difficulties.

--------------
Security Agenda
--------------


16. (SBU) Austria is a strong partner in stemming financial
flows to terrorists. Our law enforcement cooperation with
Austria has generally been flexible and effective. The
Austrian government has made anti-corruption and law
enforcement cooperation a cornerstone of the presidency.
Austria had previously taken the lead for the EU in
coordinating law enforcement activities in Central and
Eastern Europe and Central Asia. Working with EU External
Relations Commissioner Benita Ferrero-Waldner, a former
Austrian Foreign Minister (and Schuessel protege),the
Austrian EU presidency is encouraging stability and
development in the region.

--------------
DOJ Activities
--------------


17. (SBU) The Legal Attache's Office has established an
excellent working relationship with Austrian law enforcement
officials. The office provided training and assistance to
many senior officers, including Dr. Gert Rene Polli, Director
of the Austrian Federal Office for the Protection of the
Constitution and for Counterterrorism (BVT),who visited FBI
headquarters in October 2005 and received special briefings
on FBI Counterterrorism investigations. The Legal Attache's
office also organized an Austrian BKA mission to New Orleans
in the wake of Hurricane Katrina. In February 2006 Dr.
Herwig Haidinger, Director of the Austrian Federal Criminal
Office (BKA),visited Washington, San Diego and New York on a
trip which included discussions on counter-terrorism,
homeland security and Transnational and Organized Crime with
the FBI. This April, the Legal Attache office hosted a
Terrorist Financing seminar in Budapest for the Austrian BVT
and other EU member countries. In addition, the Legal
Attache hosted two other Counterterrorism seminars for
Austrians and EU partners in the fall of 2005 in Washington.
To date, 36 officers from the BKA and 4 from the BVT have
attended the FBI National Academy.

--------------
DHS Activities
--------------


18. (SBU) The DHS/ICE office in Vienna services 13
countries in the region. Cooperation with Austrian law
enforcement authorities is excellent and several
investigations into organized crime groups involved in human
trafficking/smuggling and child exploitation are ongoing.
There have been recent successes in working with the Austrian
government in the area of prevention and transfer of WMD and
licensable technology being illegally smuggled through the
region. The ICE Attache recently coordinated Operation
Falcon, involving the execution of more than 120 search
warrants in Austria on individuals suspected of child
exploitation. Further investigation involve money laundering
by two Austrians that defrauded European investors of over
$50 million are ongoing. The office is overseeing several
high profile Balkan War Crimes offenders currently living in
the United States. With direct flights to the United States,
the ICE Attache office coordinates with Austrian Border
Control regarding Customs and Border Protection issues and
investigations of passport and identity fraud that occur on
an almost daily basis.


19. (SBU) The DHS/CIS office covers a wide range of

immigration services and benefits functions covering a
13-country area of Eastern Europe. Petitions and waiver
applications adjudicated by CIS include: orphan/adoption
applications, waivers of inadmissibility, requests for
abandonment of resident status, immediate relative petitions
and appeals associated with these applications. There is
also a sizeable refugee caseload of Iranian religious
minorities that are interviewed and adjudicated by the CIS
staff. In fiscal year 2006 CIS will process approximately
2,000 refugees for resettlement in the United States.
Kilner