AUSTRIAN MEDIA HIGHLIGHTS: September 13, 2007

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: September 13, 2007


Three Islamists Arrested in Austria


1. Three Islamists arrested in Vienna are said to have had ties to
terrorist network al Qaeda. The two men and one woman are suspected
of having produced and published a video message, which -- according
to ORF radio -- "indirectly" threatened attacks against Austria and
Germany, unless they withdrew their military personnel from
Afghanistan. Speaking on ORF television yesterday, Austrian Interior
Minister Guenther Platter from the OeVP emphasized there was no
direct evidence of a terrorist act being planned in Austria. He
stressed, however, that al Qaeda had apparently increased its
recruiting activities in Austria. According to the Minister, the
suspects are Austrian citizens and second-generation migrants from
Arab countries. According to the Director of Public Security, Eric
Buxbaum, surveillance had revealed that the suspects were part of a
network which discussed obtaining explosives, but he also
underscored there was no evidence of a direct threat. The video
appeared on the internet in March this year.
All Austrian media prominently report on the arrest of three
Islamists in Vienna, who are suspected of having produced a video
indirectly threatening attacks against Austria and Germany, unless
the two countries withdrew their soldiers from Afghanistan.
Mass-circulation daily Kurier notes that this was the first time a
threat from circles believed to have closer ties with al Qaeda was
issued directly against Austria. After the message was posted on the
internet in March 2007, the Austrian Federal Office for the
Protection of the Constitution and Counter-Terrorism (BvT) had
launched the most extensive anti-terror operation in its history,
which was carried out in cooperation with German and US intelligence
services. Following months of investigations, the three suspects
were arrested on Wednesday, the Kurier writes. Mass-circulation
tabloid Oesterreich points out that the "al Qaeda activist 'Amir'
was born in Austria - and ended up shooting threat videos."
According to the newspaper, one of "bin Laden's mouthpieces was
arrested in Vienna with his terror cell." Semi-official daily Wiener
Zeitung says that "well-integrated Muslims are spreading fear - but
Interior Minister Platter does not a see a direct threat" of an
attack in Austria. Liberal daily Der Standard quotes Platter as
describing the suspects as "quasi franchisees of al Qaeda." The
Minister also underscored that there is no evidence to suggest a
connection between the recently foiled attacks in Germany and the
three second-generation Muslims arrested in Vienna this week.
Meanwhile, centrist daily Die Presse suggests that the "children of
migrants and persons having converted to Islam, who are usually
perceived as the nice and inconspicuous guys from next door, have
become the perfect recruiting material for al Qaeda in Europe."


Meinl Bank in Trouble


2. The Austrian financial market authorities have turned their eyes
to Meinl Bank, as they are broadening their investigation of
suspected market manipulation on the part of the listed property and
investment firm Meinl European Land (MEL). The inquiry into MEL's
dealings began three weeks ago after it became known that MEL
triggered big losses in its share price with a buy-back of its own
shares.
All major Austrian media report on the Austrian financial market
authorities' investigation of Meinl Bank in connection with
suspected market manipulation by the listed property and investment

firm Meinl European Land (MEL). MEL incurred massive losses in its
share price with a buy-back of its own shares, and Meinl Bank was
responsible for placing the shares and collected commissions on the
deals, semi-official daily Wiener Zeitung says. The authorities are
trying to establish how MEL and Meinl Bank interacted, who the owner
or owners of the 150 million shares in question are, and whether MEL
should have informed its share-holders about the buy-back in advance
rather than only while it occurred. If MEL and Meinl Bank are found
to have violated market laws, they could face severe fines. Stock
market experts are calling for an overhaul of market legislation in
light of this potential scandal, says the daily. Independent
provincial daily Salzburger Nachrichten points out that Meinl Bank
could be faced with a "torrent of legal actions," and the Chamber of
Labor is already looking at whether a class action lawsuit might be
an option.


Putin Sacks Government


3. Russian President Vladimir Putin dissolved the governing cabinet
yesterday and appointed a little known official, Viktor Zubkov, as
the new Prime Minister. Putin explained that he needed to appoint a
government better suited to the election campaign and to "prepare
the country for life after the election." The move has led to
speculation in Russia that Zubkov may replace Putin as President
when he retires next year.
Reporting on Russian president Vladimir Putin's decision to dissolve
his governing cabinet, independent provincial daily Salzburger
Nachrichten points out that this was something of a surprise move,
as the majority of experts had expected that deputy head of
government Sergei Ivanov would be appointed as cabinet leader. This
latest development is yet another pirouette performed by the Russian
President: By replacing the rather drab Prime Minister Mikhail
Fradkov with a new candidate to take his orders, the Kremlin boss is
keeping alive the speculation over his successor, the daily says.
Similarly, mass-circulation tabloid Kronen Zeitung calls Putin's
move a "succession thriller. Once again, the Russian President is
shaking things up in a rather mysterious way." And mass-circulation
daily Kurier believes Vladimir Putin has "set the course for his
succession."


Interview with Kofi Annan


4. A leading Austrian daily publishes and interview with former UN
Secretary General Kofi Annan, who argues he believes "we could have

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prevented the war in Iraq."
In an interview with centrist daily Die Presse, Kofi Annan looks
back at his time as UN Secretary General, stressing that the
"position (of UN boss) is unlike any other job. It's extremely
challenging, but someone has to do it." He was "grateful to the US"
for its support in his election to the post, and he "always
cooperated well with all governments, including the United States.
If that changed, it was because of the Iraq crisis. You can almost
draw a line between the time before and after the attacks of
September 11. The tensions that emerged during the Iraq crisis
affected not only the UN Secretariat General, but US allies the
world over." He does not believe any war should ever be accepted as
unavoidable, but "it was obvious the US wanted to become active in
Iraq. Many of us worked very hard on making it possible for the UN
inspectors to do their job. We tried until the last minute to
prevent the war: we talked to governments; we tried it in the
Security Council. The fact that we saw the war coming - whether in
2002 or early 2003 - was never going to be an excuse to simply sit
back and say the war is unavoidable, there's nothing we can do."
Annan argues that the war in Iraq could have been avoided, "if the
inspectors had been given more time to do their work; if every UN
member country had agreed to play by the rules and wait for a
Security Council resolution and to only become active after that
resolution. In that case, there would not have been a war. But when
some nations decided to act outside the Security Council, the
'unavoidable' happened."
McCaw