AUSTRIAN MEDIA HIGHLIGHTS: February 28, 2007

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: February 28, 2007


Company Chief Complains about Eurofighter Inquiry


1. Eurofighter company boss Aloysius Rauen complained that his firm
has been disadvantaged by details leaked to the public from an
Austrian parliamentary inquiry into the purchase of 18 Eurofighter
jets for use by the Austrian armed forces. Rauen said that concerns
about corporate security and damage to the company's competitiveness
were the only reason some witnesses had declined to answer questions
at the inquiry. Committee chairman Peter Pilz, dismissed Rauen's
comments.
Responding to Eurofighter company boss Aloysius Rauen's claims that
concerns about damage to the Eurofighter company's competitiveness
were the reason some witnesses had declined to answer questions at
the parliamentary inquiry, committee chairman Peter Pilz emphasized
the public had a right to know about the contract, including the
whereabouts of some two-thirds of the 6.6 million Euros given to an
Austrian PR firm to promote purchase of the jets. A lobbyist for
Eurofighter manufacturer EADS, Erhard Steininger, who was supposed
to answer questions Tuesday morning, is reportedly abroad. The
Social Democrats, who now head the Austrian coalition government,
have proposed that the contract be cancelled, but EADS says it's too
late. The jets have been ordered but not delivered, semi-official
daily Wiener Zeitung writes. Meanwhile, mass-circulation daily
Kurier reports the delivery date of the jets is approaching. The
jets' manufacturer has scheduled the first test flights for March.
Cancellation of the purchase deal with EADS, as proposed by the
Social Democrats in their election campaign last year, is becoming
increasingly unlikely, the Kurier notes.


Austrian Army to Cut Bosnia Contingent


2. The reduction by more than half to 2,500 soldiers of the European
Union's stabilization force in Bosnia-Herzegovina will also impact
the Austrian military deployed there. It is expected that before
fall the Austrian contingent will be "drastically reduced," Austrian
media report, sourcing Defense Ministry circles.
Defense Minister Norbert Darabos has announced that 150 to 160 of
the 274 Austrian soldiers currently stationed in Bosnia-Herzegovina
could be pulled out later this year. Nevertheless, the Western
Balkans remains the key location for Austrian peacekeepers, a
spokesperson for Darabos said. He added that the European Union is
planning an "operative reserve force," which could be deployed
quickly in case of a deterioration of the security situation in
Bosnia-Herzegovina or in Kosovo. Austria would participate in the
600-strong EU force, semi-official daily Wiener Zeitung says.


Gusenbauer in Prague


3. Austria's Social Democratic Chancellor, Alfred Gusenbauer, was in
the Czech Republic Tuesday for talks with the country's Conservative
Prime Minister Mirek Topolanek and with President Vaclav Klaus.
Gusenbauer was continuing a series of visits to neighboring
countries since being sworn in as Chancellor in January. Main topic
of discussion was Austria's concern about the safety of the Czech
nuclear power plant at Temelin, near the border between the two
countries.
Austria considers the Czech nuclear power plant at Temelin unsafe to
operate, while Prague says it poses no danger. Last week Austrian
environmentalists blockaded the border to show their concern about
Temelin which has always been a bone of contention between the two
countries. The relationship was not helped when, in December, all
five parties in the Austrian parliament voted to take legal action
against the Czech Republic over Temelin. The government in Prague
said it regretted the action, writes semi-official daily Wiener
Zeitung. Meanwhile, mass-circulation tabloid Kronen Zeitung suggests
there was some success for Gusenbuer on his "tricky Temelin
mission." Both countries have agreed to set up a parliamentary
committee with Austrian and Czech MPs to address the unresolved
security issues. Despite this development, the government in Vienna
is looking at options to take legal action under international law
against the Czech Republic. Overall, however, Austrian media
emphasize that Austrian-Czech relations remain good.


Pentagon Dismisses Iran War Allegations


4. The Pentagon has dismissed allegations the US is preparing for
military operations against Iran. Chairman of the Joint Chief of
Staff Gen. Peter Pace stressed during a Senate hearing in Washington
yesterday that such reports are not true. Asked whether he could
rule out war, Pace answered that this was "definitely" the case.
Iran, meanwhile, remains unimpressed by the growing international
pressure in the dispute over its nuclear program. Iranian Foreign
Minister Manouchehr Mottaki said Tuesday his country would never
suspend uranium enrichment.
Meanwhile, writes semi-official daily Wiener Zeitung, Chairman of
the Joint Chiefs of Staff Gen. Peter Pace in a report to Congress
says the United States' military operations in Iraq and Afghanistan
are increasingly hampering the US armed forces' ability to react
adequately to other potential conflicts. Although the Pentagon wants
to improve US military capacities, it could take years for the risk
of an inadequate US military response to be reduced to an acceptable
degree again, an additional Pentagon report. Pace's report was
presented to Defense Secretary Robert Gates at the beginning of this
year, and did not take into account President Bush's decision to
deploy an additional 21,500 troops to Iraq, the Wiener Zeitung
writes, adding that the wars in Iran and Afghanistan are weakening
the US military.


US To Attend Key Iraq Conference


5. The United States has said it is willing to attend a conference
on security in Iraq next month that will include representatives
from Iran and Syria. The Bush administration has so far resisted
calls by Members of Congress and experts to directly engage with
Iran and Syria, and accused both countries of supporting Iraqi
militants. At a Senate hearing Tuesday, US Secretary of State Rice
said the Bush administration supports the Iraqi government's new
diplomatic offensive.
ORF online news reports on the upcoming Iraq security conferences
that mid-level representatives from the US and Iraq's neighbors are
to meet in Baghdad for a first conference next month. State
Department spokesperson Sean McCormick explained that participants
will discuss ways to reduce violence in Iraq. He did not rule out
bilateral talks between the US and Iranian representatives on the
margins of the conference. In April, the Iraqi government wants to
host a second, top-level conference with its neighboring states and
representatives from the most important industrial nations. Like the
first meeting, the second conference is to address the question of
how to stabilize Iraq, Secretary of State Rice said. She also
stressed she hopes Iran and Syria will accept the Iraqi invitation
to the March conference, ORF online news quotes.


Commissioner on EU and Palestinians


6. EU Commissioner for External Relations Benita Ferrero-Waldner,
speaking in Jerusalem, said the European Union will consider
gradually engaging with the incoming Palestinian unity government,
if it recognizes Israel and renounces violence.
ORF radio early morning news Morgenjournal quotes EU External
Relations Commissioner Benita Ferrero-Waldner as stressing that the
EU has to "see what a new national unity government would be like,
what would be its program, and what would be its actions."
Palestinian officials have said their unity government should be
unveiled by Friday.
McCaw