AUSTRIA: DEMARCHE DELIVERED ON OECD ENLARGEMENT

UNCLAS VIENNA 001242 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ECON OECD EUN AU SUBJECT: AUSTRIA: DEMARCHE DELIVERED ON OECD ENLARGEMENT AND FINANCING REFORM REF: STATE 62464 ¶1. On March 11, EconUnit Chief discussed reftel points with Ulrike Magloth, Director of the Austrian Federal Chancellery's International Economic Affairs office. On Russia, Magloth expressed appreciation for the USG position from the April OECD Executive Council in Special Session. For Austria, it was important to send a signal to Russia that accession negotiations can start. However, Austria agrees with the U.S. that Russia "has a long way to go" on market policies and democratic reform. Magloth said that Austria would support insertion of language admonishing Russia for more commitment to reforms. ¶2. On enlargement, Magloth said that the GoA understands that a package deal, with all eight non-OECD EU Member States acceding simultaneously, is unrealistic. The GoA accepts that the process must proceed step-by-step. Austria does support the immediate accession of Estonia and Slovenia, with some "vague language" alluding to future discussions with the remaining six EU non-members. Magloth noted that, without all 27 EU Member States at the table, it was difficult to formulate a common EU position, and it was equally difficult for third nations to ascertain an EU position accurately. ¶3. On reforming the scale of contributions, Magloth stated that the GoA would not accept a "major reform." The GoA believes that the 2005 reforms, which increased Austria's contribution, was significant. The GoA might agree to "moderate changes," but it would not support a major overhaul. Kilner