Identifier
Created
Classification
Origin
06VIENNA3248
2006-11-07 10:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:
DEMARCHE TO AUSTRIA ON DEBT RELIEF --
how-toVZCZCXRO1677 OO RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV DE RUEHVI #3248 3111042 ZNR UUUUU ZZH O 071042Z NOV 06 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 5432 INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHSW/AMEMBASSY BERN PRIORITY 1084 RUEHBY/AMEMBASSY CANBERRA PRIORITY 0206 RUEHOT/AMEMBASSY OTTAWA PRIORITY 0470 RUEHUL/AMEMBASSY SEOUL PRIORITY 0159 RUEHTC/AMEMBASSY THE HAGUE PRIORITY 1007 RUEHKO/AMEMBASSY TOKYO PRIORITY 0354 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS VIENNA 003248
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/AGS - SAINT-ANDRE
E.O. 12958: N/A
TAGS: ECON EFIN IZ AU
SUBJECT: DEMARCHE TO AUSTRIA ON DEBT RELIEF --
INTERNATIONAL COMPACT WITH IRAQ
REF: STATE 181094
UNCLAS VIENNA 003248
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/AGS - SAINT-ANDRE
E.O. 12958: N/A
TAGS: ECON EFIN IZ AU
SUBJECT: DEMARCHE TO AUSTRIA ON DEBT RELIEF --
INTERNATIONAL COMPACT WITH IRAQ
REF: STATE 181094
1. (SBU) Charge delivered reftel demarche on November 6 to
Ralph Scheide, the Austrian MFA's Director for the Middle
East and Africa. Charge especially urged that Austria
forgive the remaining 20 percent of Iraq's debt.
2. (SBU) Scheide noted that Austria's forgiveness of 80
percent of Iraq's debt had represented debt relief amounting
to approximately one percent of Austria's GDP. He said it
would be extremely difficult for Austria to forgive more
debt, or to provide a grant in the amount of remaining debt.
He reported that Iraq expenditures were taking a large share
of Austria's available development funds, leaving Austrian
development authorities with very little discretion to fund
priorities elsewhere. (Note: As government coalition talks
enter their second month, the federal government cannot pass
a new budget. In each month, it can only spend one-twefth
of the previous year's budget. This leaves ery little room
for major new initiatives. End note.)
3. (SBU) However, Scheide said that if th Paris Club
discussed further debt relief for Irq, Austria would
naturally consider the issue agin in that cotext.
4. (SBU) Post will continu to press this point with
Austrian officials.
Pillips
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/AGS - SAINT-ANDRE
E.O. 12958: N/A
TAGS: ECON EFIN IZ AU
SUBJECT: DEMARCHE TO AUSTRIA ON DEBT RELIEF --
INTERNATIONAL COMPACT WITH IRAQ
REF: STATE 181094
1. (SBU) Charge delivered reftel demarche on November 6 to
Ralph Scheide, the Austrian MFA's Director for the Middle
East and Africa. Charge especially urged that Austria
forgive the remaining 20 percent of Iraq's debt.
2. (SBU) Scheide noted that Austria's forgiveness of 80
percent of Iraq's debt had represented debt relief amounting
to approximately one percent of Austria's GDP. He said it
would be extremely difficult for Austria to forgive more
debt, or to provide a grant in the amount of remaining debt.
He reported that Iraq expenditures were taking a large share
of Austria's available development funds, leaving Austrian
development authorities with very little discretion to fund
priorities elsewhere. (Note: As government coalition talks
enter their second month, the federal government cannot pass
a new budget. In each month, it can only spend one-twefth
of the previous year's budget. This leaves ery little room
for major new initiatives. End note.)
3. (SBU) However, Scheide said that if th Paris Club
discussed further debt relief for Irq, Austria would
naturally consider the issue agin in that cotext.
4. (SBU) Post will continu to press this point with
Austrian officials.
Pillips