Identifier
Created
Classification
Origin
06VIENNA141
2006-01-18 07:23:00
CONFIDENTIAL
Embassy Vienna
Cable title:  

AMBASSADOR'S MEETING WITH PM SCHUESSEL

Tags:  PREL EU AU IR RU 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 000141 

SIPDIS

E.O. 12958: DECL: 01/16/2016
TAGS: PREL EU AU IR RU
SUBJECT: AMBASSADOR'S MEETING WITH PM SCHUESSEL

Classified By: Ambassador Susan R. McCaw for reasons 1.4 (b)(d).

C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 000141

SIPDIS

E.O. 12958: DECL: 01/16/2016
TAGS: PREL EU AU IR RU
SUBJECT: AMBASSADOR'S MEETING WITH PM SCHUESSEL

Classified By: Ambassador Susan R. McCaw for reasons 1.4 (b)(d).


1. (C) Summary. During his first meeting in Vienna with
Ambassador McCaw, Austrian Chancellor Schuessel confirmed
full EU support for a unified front toward Iran and expressed
a strong desire to work with the United States in the
Balkans. The Chancellor saw the Russian-Ukraine gas
agreement as an "interim solution." Energy policy would
remain a focus of Austria's EU Presidency, even though "quick
results" were unlikely. The Chancellor also thought that
public attitudes toward the European Union were not as
negative as is often painted. Ambassador was accompanied in
the meeting by DCM (notetaker). End Summary.


--------------
RUSSIA-UKRAINE
--------------


2. (C) Amb. McCaw opened the discussion by complimenting
Schuessel's government for its swift reaction to the
Russia-Ukraine gas crisis on the first day of Austria's EU
Presidency. Schuessel agreed this had been a "very, very
worrisome" development. Austrian Economics Minister
Bartenstein, he claimed, was able to play a mediating role in
finding a solution, thanks to Bartenstein's strong contacts
with both Ukrainian and Russian energy officials, as well as
with Raiffeisen Bank (which has taken a stake in
Rosukrenergo). The Chancellor called the solution "a very
complicated interim agreement," but he thought that Ukraine
had come out better than most observers realized. "According
to our sources, Ukraine thought they were going to have to
pay about $120/mm/ton, rather than the $95 agreed," he said.


3. (C) Schuessel confirmed that energy will remain a focus
of the Austrian EU Presidency, including at the March
European Summit, but that "quick results" were unlikely. One
important impediment was that so many aspects of energy
security -- including supply sources, grid safety, and
reserve strategy -- remained the preserve of member states,
not the Union. The Chancellor also noted that Austria had a
four-month supply of gas reserves -- the highest level in the
entire EU.

--------------
IRAN
--------------


4. (C). The Ambassador expressed the importance of a
rock-solid, united front vis-a-vis Iran in view of recent
developments. Schuessel stated the EU3 had the full backing

of all 25 member states and that all 25 were unified behind
the current strategy. The Chancellor stressed, however, the
importance of carefully thinking through not just the next
step, but four or five steps down the road. "If Iran does
not respond to the resolutions of the U.N Security Council,
what then? What tools do we really have at our disposal to
pressure the government?" he asked. Schuessel expressed
doubt that either Europe or the U.S. understood internal
Iranian dynamics well enough to predict how the regime would
respond to outside pressure. (Schuessel questioned whether
Ahmedinejad had the support of the Iranian business/merchant
class, a critical group and one that would be most impacted
by any economic sanctions.) "Ahmedinejad is not crazy," the
Chancellor added, "but is pursuing a calculated, if risky,
strategy."

--------------
AFGHANISTAN
--------------


5. (C) Amb. McCaw thanked the Chancellor for Austria's
contributions to Afghan stabilization and reconstruction to
date, including the 93 election monitors, and asked the GOA
to make a generous pledge at the upcoming London conference.
Schuessel did not respond directly, reflecting that
Afghanistan had always been "used and manipulated" by its
neighbors. He feared such meddling would continue to be the
norm.

--------------
BALKANS
--------------


6. (C) The Ambassador told Schuessel that the U.S. was eager
to work with the Austrian EU Presidency on promoting
democracy, certainly in the Balkans but also further afield.
Schuessel replied that Balkan issues were always very
difficult, but there were encouraging signs at present. The
granting of EU candidate status to Macedonia in December was
a very important step. Bosnia remained extremely tricky, but
Schuessel said he held new High Rep Schwarz-Schilling in the
highest regard (having known him well for 30 years). The
Chancellor also noted Austria's material support for the
Kosovo status negotiations through provision of an office to
Ahtisaari's team in Vienna.


7. (C) On the Kosovo talks, Schuessel pointed to the
"enormous influence" of the U.S. upon Kosovar Albanians.
Austria's ties (and Schuessel's personally),in contrast,
were much closer to Serbia than to Kosovar Albanians. The
Chancellor therefore advocated close US-Austrian
collaboration, but also an informal division of labor, with
each country bringing its weight to bear where its influence
was greatest.

-------------- --------------
PUBLIC VIEWS TOWARD EUROPE...AND AUSTRIAN POLITICS
-------------- --------------


8. (C) Schuessel said that Austria would try to use its EU
Presidency to promote the notion of a "European Way of Life"
as something everyone could be proud of. A new spirit of
solidarity was needed to dampen rivalries among member
states, and between competing EU institutions, which
Schuessel argued had become too intense. The Chancellor
maintained, however, that public attitudes toward the EU were
not really as negative as they are often painted. It was
claimed, for example, that the Austrian public's attitude
toward Brussels was the most critical of all member states.
However, an internal poll he had commissioned recently showed
in fact a 58 percent majority agreeing that Austria had been
right to join the European Union. The same poll also showed,
for the first time, the Chancellor's People's Party ahead of
the Socialists by a nose in advance of elections later this
year. "People are not so stupid," Schuessel concluded.

MCCAW