AUSTRIAN MEDIA HIGHLIGHTS: September 14, 2006

UNCLAS SECTION 01 OF 02 VIENNA 002749 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: KPAO AU OPRC SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: September 14, 2006 Conspiracy Seen in Floettl Case ¶1. The leader of the opposition Social Democrats (SPOe),Alfred Gusenbauer, says he suspects a government plot to discredit his party ahead of next month's elections is behind allegations made by Wolfgang Floettl, one of those at the center of the Bawag bank scandal. The SPOe has denied Floettl's claims that he gave the party money in the late 1990s. According to semi-official daily Wiener Zeitung, Gusenbauer says Floettl may have made the claim in order to receive a lighter punishment on charges tied to his speculative business dealings in the Caribbean, which are thought to have cost bank Bawag more than one billion Euros. There have also been media reports that Floettl left documents related to his deals for Bawag in a safe in Bratislava. Wolfgang Floettl also reportedly met in the Slovakian in July with representatives from the Austrian State Prosecutor's Office and the financial market authority, which oversees the Austrian banking system One in Three Voters Undecided ¶2. With less than three weeks to go until the October 1 general election in Austria, surveys show the number of undecided voters is exceptionally high this time. Only 44 percent of Austrians say they have made up their mind on which party to support. Young voters in particular have stated they are as yet undecided. Centrist daily Die Presse explains that 29 percent of voters have said they have "no clue" yet which party they are going to vote for October 1. Another 27 percent still have only a "vague idea" whom they will support on election day. The daily also points to what it calls a "remarkable" fact: Since the beginning of the Imas polling institute's surveys on voters' support in June the number of undecided voters has not grown smaller. The current situation, Imas believes, is partially due to the large number of parties running in the election and the domestic policy turmoil in Austria since the emergence of the scandal surrounding the union-owned bank Bawag. The majority of undecided voters are under 30, the Presse adds. Fifth TV Debate ¶3. The fifth televised political debate between Minister for the Environment Josef Proell for the OeVP and FPOe leader Heinz-Christian Strache showed the two parties apparently have very little in common. Proell accused Strache of having chosen the "hooligan sector" and ruled out an OeVP coalition with the Freedom Party. On ORF radio early morning news Morgenjornal, reporter Peter Daser summarized the debate: "A coalition with the FPOe is out of the question, OeVP Minister Proell stressed at the beginning of the debate: 'With the FPOe under your leadership, Mr. Strache, there will certainly be no coalition with the OeVP. You've voluntarily stated that you've put yourself in the hooligan sector, and it's a good thing you've made that clear,' Proell stressed. Strache, in turn, complained his party was being 'excluded.' He had 'noted that the Chancellor is ostracizing us, and the same goes for Mr. Gusenbauer [of the SPOe], who publicly said he would never form a coalition with us,' said Strache. There was also disagreement between Proell and Strache on topics including the EU -- where the OeVP representative praised its benefits, while the FPOe boss pointed to what he called its 'dangers' - and on the Eurofighter. For Proell, the interceptor jets are a guarantee for security, but Strache claims they are a waste of money. And while Strache warned against 'mass immigration,' Proell criticized the FPOe for fueling fears - something the Minister considers dangerous." EU'S Change of Course ¶4. With Spain's decision to send all illegal immigrants back to their countries of origin, thousands of Africans are facing deportation. These drastic measures are seen as a change of course regarding immigration policies on the part of Spain and the European Union, says mass-circulation daily Kurier. Annan on Iraq War ¶5. UN Secretary General Kofi Annan has told journalists most Middle East leaders regard the US-led invasion of Iraq as a "disaster" for the region. Speaking after his recent tour of the Middle East, Annan stressed that the timing of any US withdrawal was now a key issue, with some leaders wanting the US to stay and stabilize Iraq, while others are pushing for an immediate withdrawal. ORF radio early morning news Morgenjournal quotes UN Secretary General Kofi Annan as saying: "In a way, the US has found itself in a position where it cannot stay, and where it cannot leave." Solana - Larijani Meeting off ¶6. A meeting scheduled for today between the EU's foreign policy chief Javier Solana and Iran's top nuclear negotiator Ali Larijani has been postponed. Instead, aides to the two envoys are to meet. No reason has been given for the sudden change. ORF radio early morning news Morgenjournal also says that at a meeting of the International Atomic Energy Agency's board of governors in Vienna, the United States has called for a rapid move towards imposing sanctions on Iran for failing to suspend uranium enrichment as required by the UN Security Council. US Ambassador to UNVIE Gregory Schulte stressed: "We would like to hear that Iran will suspend its enrichment activities and cooperate with the IAEA. We have yet to hear that, I say with regret." Meanwhile, Iranian President Mahmoud Ahmadinejad today said he is open to what he called "new conditions" to resolve the nuclear standoff. He stated he believes talks could end the dispute. McCaw