AUSTRIAN MEDIA HIGHLIGHTS: September 28, 2007

UNCLAS VIENNA 002525 SIPDIS 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: OPRC KPAO AU SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: September 28, 2007 More Money for Provinces and Communities ¶1. The good economic figures have made it possible: Austria's provinces and communities will get a considerably larger share from federal tax revenues. An agreement on revenue sharing was concluded between the federal government and the provinces and communities, according to which the former will provide an additional 320 million euros, among them 100 million which are earmarked for improving the health system and hospitals. The agreement is valid for six years, starting 2008 - so far, revenue sharing agreements have always been for four years only. [Kurier, p. 1 and 3; other Austrian media] In exchange for the increased portfolio, the provinces and communities have committed to bearing part of the costs for a minimal guaranteed income and health care plans of the government, reports centrist daily "Die Presse." However, the additional expenses for those areas are limited to 66 million euros. The deal between federal government and the provinces and communities will be financed with the revenues from Austria's good economic development. No plans were made for saving money, which has led some experts to voice criticism. The daily quotes expert for reforms in the executive sector, Bernd Raschauer, as pointing out that the chance for medium-term reforms was missed, for instance with regard to housing assistance and health care. According to Raschauer, simply giving more money is no incentive for changes. "Missed opportunities for structural reforms" were likewise identified by President of the Austrian Chamber of Commerce, Christoph Leitl, writes independent daily "Der Standard." Austrian Competition in New York ¶2. Federal Chancellor Alfred Gusenbauer and Minister for European and International Affairs Ursula Plassnik were trying to outdo each other when it comes to who has the upper hand in representing Austria at the United Nations General Assembly this week. While the Chancellor had his meetings with Bush, Schwarzenegger, Gore and Clinton, Plassnik even had to fight for her traditional right to hold a speech before the General Assembly - the Chancellor's office had wanted to claim this right on Gusenbauer's behalf. All in all, the Chancellor's trip was perfectly stage-managed - a clear success for the foreign policy offensive of the SPOe. [Die Presse, p. 6] Reluctant Kosovo Talks in New York ¶3. On the sidelines of the UN General Assembly on Friday, the highest political representatives of Serbia and Kosovo will finally hold direct talks. The EU, the US and Russia have arranged for the meeting. Although both parties insist on their positions, a solution should be achieved by December. However, expectations are low - it is generally assumed that the most likely scenario is the declaration of an independent for Kosovo on the part of Pristina. In this case, the US has already announced its intention to unilaterally acknowledge Kosovo. The government in Belgrade is likewise preparing for such a scenario - which it holds to be an illegal situation, a kind of "political underworld," as Serbia's Prime Minister has called it. [Der Standard, p. 4; other Austrian media] According to independent daily "Der Standard," Serbia insists on its territorial integrity which was confirmed in UN resolution 1244 and the UN Charter and has announced diplomatic measures against those countries that agree to grant Kosovo unilateral recognition. For the Kosovarian government, on the other hand, independence is a must. Prime Minister Agim Ceku has announced its readiness to talk about the relations between two sovereign states and explain a detailed plan about how an independent Kosovo will be administered. Centrist daily "Die Presse," on the other hand, refers to the frantic search for "creative solutions" on the part of the contact group (consisting of the US, Russia, France, Britain),and here especially the so-called "Hong Kong model." It would make Kosovo a special administrative area for a certain limited time. However, Viennese Balkan expert Vedran DQihic is highly skeptical of this plan and is quoted by the daily as stating: "The political elite in Pristina cannot accept this. And if the US forces it to accept it, this could spark off a new outbreak of violence." Junta Threatens Extreme Action ¶4. Burma's Generals are now cracking down hard on the protest movement in the country. According to eye witnesses, on Thursday, troops arbitrarily opened fire on people and buildings alike. There were at least 10 victims, among them two foreign photo journalists. Hundreds of demonstrators were arrested. The violent action of the government has not lead to abatement of the protests. International crisis diplomacy is under way, but diplomats keep its contents secret. The fall of the junta would also jeopardize billions in SIPDIS investments, especially for China, but also for France, India, Japan and South Korea. [Salzburger Nachrichten p. 9; other Austrian media] In the meantime, Burma's neighboring states of China, Thailand, and India fear that they will be hit by refugee waves and are trying to ensure stability since freedom and democracy in the country were never on their list of priorities, writes independent daily "Salzburger Nachrichten." Analyzing the situation, the daily comes to the conclusion that "this junta seems determined to sit out the uprising until - as has happened earlier - the international community once again loses interest in Burma and the forgotten nation will once again relapse into the old isolation and anonymity." One potential hope is a possible palace revolution on the part of defecting troops. However, the daily is quick to point out that many of the soldiers are part of the minorities that are now persecuted and found a home in the army - which is why they are now ready to do its bidding. In the meantime, the EU is working on "targeted sanctions," reports independent daily "Der Standard." The ambassadors of all the 27 EU states have formed committees that are supposed to work out respective proposals. Likewise, US President George W. Bush has advocated support for the "courageous" citizens of Burma. He called on the soldiers and police forces not to use violence. In addition, the United States has announced stricter economic sanctions against 14 members of the Burmese military junta, writes the daily. US Senate Wants to Divide Iraq ¶5. In view of the continuing violence in Iraq, US Senators have proposed a resolution in favor of a division of Iraq according to ethnic groups. The proposal was brought forward by Democratic Senator Joe Biden on Wednesday, and more than 20 Republicans also supported it. The Bush administration rejects the idea of a division of the country; Iraq's neighboring countries Saudi-Arabia and Turkey have likewise objected to the plan. In the meantime, Iraq's President Nuri al-Maliki, in his address to the United Nations, has asked the international community for more assistance for the Iraqi reconstruction efforts. [Wiener Zeitung, p. 7] McCaw