AUSTRIAN MEDIA HIGHLIGHTS: April 10, 2007

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SUBJECT: AUSTRIAN MEDIA HIGHLIGHTS: April 10, 2007


Chance to Back Out Of Eurofighter Deal?


1. Austrian Chancellor Alfred Gusenbauer of the SPOe, and the head
of the parliamentary inquiry into the Eurofighter deal, Peter Pilz
of the Green Party, believe the country's chances to get out of the
purchase contract have increased. Last week new documents surfaced
which allegedly confirmed business arrangements between Austrian
"Airchief" Eric Wolf and Erhard Steininger, the lobbyist for EADS,
worth around 88,000 Euros. Wolf will be questioned by the Defense
Ministry's disciplinary committee today.
All Austrian media report on the "offensive" against "Airchief" Wolf
and his wife over allegations of a conflict of interest, which might
provide the grounds for backing out of the Eurofighter contract.
Eric Wolf has been accused of partiality in the decision to purchase
the jets, after reports surfaced last week showing that he was the
authorized representative of a firm that benefited from business
connected to EADS. Social Democrat Guenther Kraeuter who also sits
on the parliamentary panel investigating the purchase of the
Eurofighters, says this apparent conflict of interest could be
possible grounds for getting out of the contract to buy the jets.
The Social Democrats have been against purchase of the jets from the
beginning, the Wiener Zeitung notes. Similarly, independent
provincial daily Salzburger Nachrichten quotes Chancellor Gusenbauer
as saying Austria's chances to cancel the purchase deal had now
increased. Cash flows from EADS lobbyist Steiniger to the
advertising company of Wolf's wife "clearly violate the very
specific clause stating no one connected with the process of
awarding the contract for the jets is permitted to profit from the
deal," Gusenbauer pointed out. Centrist daily Die Presse meanwhile
suggests that the SPOe's push to back out of the purchase contract
is threatening to split the coalition government, as the OeVP
continues to defend the deal.


Gusenbauer Pleased with Coalition


2. Chancellor Alfred Gusenbauer has said he is pleased so far with
the work of the coalition government of his Social Democrats (SPOe)
and the People's Party (OeVP). He pointed out the coalition partners
had worked together to complete a "double budget" for 2007 and 2008,
and had also been able to work on a social correction of pension
reform and to propose a joint strategy for climate control.
Chancellor Alfred Gusenbauer in an interview with Austrian Press
Agency APA says he is pleased with the work of the coalition
government. The Chancellor emphasized the OeVP had come out of a
"long-time deadlock on social political themes" and had now opened
the window to more cooperation. Gusenbauer stressed that after three
months of coalition government, much had been worked out between the
two parties. Next week, talks will be held in Brussels over the
question of places for foreign medical students in Austrian
universities and on Austria's quota for greenhouse gas emissions,
semi-official daily Wiener Zeitung notes. Here in Vienna talks will
also be held with NGOs on a number of items.




Anger over Iran's Nuclear Ambitions


3. The United States and other Western powers have strongly
criticized Iran's announcement on Monday that it had begun
industrial-scale nuclear fuel production. Washington is seeking to
bring more diplomatic pressure on Iran, and has emphasized Tehran is
continuing to defy the international community and is further
isolating itself. Iranian President Mahmoud Ahmadinejad stated on
Monday that his country had "joined the nuclear club of nations."
Semi-official daily Wiener Zeitung quotes a White House spokesperson
as stressing the United States is "deeply concerned" about Iran's
announcement on Monday it had reached industrial-scale uranium
enrichment capabilities. Restrictions or limitations by Tehran of
its cooperation with the International Atomic Energy Agency were
"unacceptable," the spokesperson added. Likewise, Moscow labeled
Ahmadinejad's move a "direct challenge to the world community."
Liberal daily Der Standard reports on Tehran's "breakthrough in
uranium enrichment," pointing out that the extent to which the
recent UN sanctions against Iran have become effective remains
doubtful: Mohammed Baker Solkadr, Iranian General and Deputy
Interior Minister, who has been put on the list of travel-embargoed
persons, was allegedly able to leave the country unhindered and
visit Russia only last week. The daily also reports that Iran's
President Ahmadinejad has underscored he would not permit other
countries to curb Iran's nuclear capabilities. ORF online news
meanwhile quotes Michael Levi, an expert with New York's Council on
Foreign Relations, as pointing out, "Politically, it is more
important to put up 30,000 centrifuges than actually have them up
and running regularly." Levi expressed his doubt about the veracity
of Ahmadinejad's statements. The expert also underscored that the
international community was "making the mistake of taking Iran and
its frightening claims all too seriously."


Demonstration in Iraq


4. In Iraq, tens of thousands of people waving Iraqi flags staged a
peaceful demonstration in the city of Najaf in the southern part of
the country yesterday to demand the withdrawal of US forces. The
protests came four years to the day after Baghdad fell to the
invading American troops. Foreign observers argue the climate of
fear and oppression during Saddam Hussein's rule may contribute to
the fact that Iraqis today are incapable of peacefully addressing
the country's unresolved ethnic, religious and political conflicts.
Like all Austrian media reporting on developments in Iraq,
semi-official daily Wiener Zeitung says that among Iraqis the "call
for a US pullout keeps getting louder." Independent provincial daily
Salzburger Nachrichten writes about "fear, anger and frustration in
Iraq," and argues that four years after Saddam Hussein's regime was
toppled, "despair and resignation are predominant" in the country.
In their struggle for survival, many Iraqis these days are "clinging
to their ethnic or religious groups, and foreign observers have
compared the situation in Iraq to a "pressure cooker, where the lid
suddenly blows off." Meanwhile, liberal daily Der Standard argues
that the US security plan to "reestablish law and order in the Iraqi
capital is last hope and final chance for many people in Baghdad to
avert compete chaos."


US to Move against China over Intellectual Property Claims


5. The United States is bringing legal action against China over
what it calls inadequate protection against counterfeiting American
goods. US Trade Representative Susan Schwab stressed China had
failed to protect intellectual property rights which cost US
companies billions of dollars every year.
Austrian radio early morning news Morgenjournal quotes US Trade
Representative Susan Schwab about Washington's dispute with China
over intellectual property rights: "We see specific, significant
World Trade Organization-related problems that bilateral dialogue
simply has not been able to resolve. Current Chinese laws impede
effective attacks on piracy and counterfeiting. Legitimate
audiovisual products and publications continue to face serious
problems with market access."
McCaw