AUSTRIAN MEDIA HIGHLIGHTS: September 20, 2006

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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