AUSTRIAN MEDIA HIGHLIGHTS: September 20, 2006

UNCLAS SECTION 01 OF 02 VIENNA 002801 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 20, 2006 Tough Word Duels ¶1. As expected, no common ground was identified in the eighth of the TV debates between party leaders - Tuesday night, Greens boss Alexander van der Bellen and FPOe party leader Heinz-Christian Strache, whose parties are fighting for third place in the upcoming national elections, engaged in a debate characterized by sharp rhetoric, especially over immigration policy. (ORF online) Latest Prediction Before Chancellor Duel: OeVP 37%, SPOe 34% ¶2. A cross section of all current polls regarding the Oct. 1 national elections reveals the OeVP ahead of the SPOe by three percentage points. This sets the background for the much-anticipated Thursday duel between Chancellor Schuessel and his challenger Alfred Gusenbauer. (Neue Kronenzeitung) Elsner to Appear Before the Judge ¶3. Former Bawag boss Helmut Elsner is due to appear before a judge that will decide about his extradition to Austria. Elsner is currently hospitalized in Aix-en-Provence and it is still unclear whether he will take part in the court hearing. The prosecutor in Vienna has been informed by French authorities that Elsner's condition has not worsened since his arrest and that his hospitalization was a "precautionary measure." This contradicts earlier reports that his health had deteriorated dramatically. In connection with the Bawag affair, Carinthia's Provincial Governor Joerg Haider has once again surfaced with an attempt to assume the role of investigator: With the help of a Bawag fax which was leaked to him, he is trying to establish that money changed hands between Wolfgang Flttl and socialist trade unionists, which, Haider says, are the main SPOe donors. Independent daily "Der Standard" reports that the Haider fax is not new, nor does it prove the Flttl-SPOe connection. It merely establishes a connection between Bawag/Flttl and a company called "Galonia Etablissement" in Liechtenstein. This company was officially mentioned in an inspection report of August 2006 and it is connected with Martin Schlaff, who was last heard of as investment partner of former OeVP boss Josef Taus, who visited Elsner before his arrest in France. New US Class Action Suit ¶4. A class action lawsuit in connection with the union-owned bank Bawag scandal has been filed in the United States. "Global Management" has sued for damages on behalf of 3,000 Refco clients. The documents reportedly were forwarded to Vienna via the US Embassy in Austria. In the meantime though, Baway boss Ewald Nowotny has come forward to deny that the bank was affected by the lawsuit - "the charges leveled against us have been overtaken by more recent events," Nowotny said, asserting that the threatened lawsuit against Bawag was no longer an issue. "Global Management recently rephrased the charges and, in the new text, Bawag is no longer mentioned. The charges are now leveled against former Refco-boss Phillip Bennett and a number of other Refco managers. It is suspected that Global Management has at the last minute agreed to an out of court settlement between the Bawag and the Refco victims," writes economic daily "Wirtschaftsblatt." Bush, Ahmadinejad Appear Before UN ¶5. US President Bush and Iran's President Mahmoud Ahmadinejad have made their positions clear before the UN General Assembly - the Iranian President again declaring his country's nuclear programs were peaceful and transparent, and Bush calling upon Iran to abandon its nuclear weapons ambitions. Ahmadinejad did not take part in a reception hosted by Kofi Annan in which Bush participated. Centrist daily Die Presse writes about an "exchange of blows" and a "rhetorical crossing of swords" between the two Presidents at the UN. George Bush harshly attacked the Iranian regime, stressing at the same time, however, that the "Iranian people deserve the chance to shape their own future." In addition, the US President emphasized that Washington would prefer a diplomatic solution to the controversy over Iran's nuclear ambitions, and said the US had "nothing against Iran pursuing a peaceful nuclear program." Liberal daily Der Standard reports that President Bush also pushed for international support of his Middle East democratization program. Furthermore, the US President underscored America's respect for Islam. Mahmoud Ahmadinejad's appearance before the UN General Assembly was also eagerly awaited, the Presse says. However, he had already made clear ahead of the UN Assembly meeting that Iran was not willing to compromise in the nuclear dispute. Riots Shock Hungary ¶6. A wave of violent protests has hit Hungary - Prime Minister Gyurcsany wants to stop the unrest, for which he blames right-wing extremists. The majority of Hungarians, however, are described as angry and deeply frustrated with the government. The opposition has called upon Gyurscany to resign, but the Prime Minister seems unimpressed by this, saying he wants to restore peace and order. Hungary is suffering from an economic crisis with unemployment rising as consistently as the budget deficit, which is expected to amount to 6.7 percent of the gross domestic product. This fact has led the EU to reprimand Hungary, blaming the bad economic situation on an inefficient, overblown bureaucracy, among other factors. Gyurscany was quoted by centrist daily "Die Presse" as calling the events in Budapest the "longest and darkest night in the Hungarian Republic" and urging the authorities to take "more resolute action." Tanks in the Heart of Bangkok ¶7. The Thai army has initiated a coup against Prime Minister Thaksin and the military has declared a nationwide state of emergency and martial law. The coup had been expected for a few months - the military has been increasingly divided over allegiance to Thaksin, who is charged with abuse of power and corruption. There are indications he and his family were engaged in business deals for which they paid no taxes. Criticism regarding his conflicting interests was not something that Thaksin could bear, writes centrist daily "Die Presse" in reference to his repression of the media and the fact that he ignored all calls for his resignation. His authoritarian style and the growing corruption in the country increasingly disappointed the Thais. The military named General Sondhi Boonyaratkalin Acting Prime Minister - he is a loyal follower of King Bhumibol Adulyadej, reports ORF online. The royal family is a stabilizing factor in Thailand, the daily points out, noting that during this crisis all TV stations ran pictures of them. Also, the new Prime Minister is Muslim and therefore might be able to resolve the bloody conflict with Muslim insurgents in the southern part of the country, points out ORF online. Koizumi Era Ends ¶8. On Wednesday, Japan's Prime Minister Junichiro Koizumi is expected to vacate his seat as Chairman of the Liberal-Democratic Party and head of government. Cabinet spokesman Shinzu Abe will take over both functions. Koizumi initiated economic reforms, cut back the power of the bureaucracy and party establishments and left an indelible mark on Japan's politics. Koizumi's successor, Shinzu Abe, is described as nationalistic, a defender of Japan's role in World War II, and a possible destabilizer who could create new conflicts in the region. His goal is to stop China's ascent of China to leadership status in Asia. This will be difficult since the economies of both countries are closely intertwined. Japan could seek alliances with India and Australia and some of the Central Asian republics of the former Soviet Union, speculates centrist daily "Die Presse," adding that this would make further confrontations between Beijing and Tokio unavoidable. Abe has also announced his intention to alter the post-war constitution to the effect that Japan will obtain the right to self-defense, a regular army and participation in military missions on foreign soil, and possibly even nuclear weapons. This in combination with Abe's interpretation of history could be dangerous, warns "Die Presse" and points out that the change of power in Japan is viewed with unease by some of its neighbors and even by Abe's critics in his own country. McCaw