GOA DENIES RANSOM PAID FOR HOSTAGE RELEASE

C O N F I D E N T I A L SECTION 01 OF 02 VIENNA 001663

SIPDIS

DEPARTMENT FOR EUR/CE

E.O. 12958: DECL: 11/13/2018
TAGS: PGOV PREL PTER AU
SUBJECT: GOA DENIES RANSOM PAID FOR HOSTAGE RELEASE

VIENNA 00001663 001.2 OF 002


Classified by: DCM Scott F. Kilner for reasons 1.4 (b) and
(d).


1. (U) Summary: Top GOA officials have denied media
speculation that Austria had paid up to 5 million euros for
the release of two hostages held by an al Qaeda affiliate in
Mali since February 2008. According to some reports, a
charity fund run by a son of Libyan leader Gaddafi paid the
ransom. FM Plassnik averred that the release of the two
Austrian tourists was exclusively the result of "persistent
diplomacy" and praised Malian President Toumani Toure for his
role in obtaining the release of the hostages. Austrian
opposition parties FPO and BZO plan to query the FM on the
details of the hostage affair in parliament. End Summary.

Hostages Taken in February
--------------


2. (U) The two Austrian tourists, Andrea Kloiber (43) and
Wolfgang Ebner (51),were kidnapped in southern Tunisia in
February 2008 while driving in the Sahara. Their kidnappers,
who identified themselves as "al Qaeda in the Islamic
Maghreb," later transferred them to an area believed to be in
northeastern Mali. The group demanded the release of Islamic
extremists imprisoned in Algeria and Tunisia, and the
withdrawal of Austrian military personnel from Afghanistan.
(Note: There are only four Austrian military staff officers
in Afghanistan. End Note). Austria later placed a government
negotiator and military intelligence officers in Bamako and
reportedly worked extensively through multiple diplomatic
channels to secure the release of the two tourists. A source
in the Malian security forces reportedly said on November 1
that Ebner and Kloiber were released in a region that borders
Mauritania and Algeria. Ebner and Kloiber arrived in Vienna
November 1 in relatively good health. Meanwhile, they have
provided limited insights into their 252-day ordeal.

Ransom Rumors
--------------


3. (U) While the exact circumstances of their release remain
unclear, rumors have circulated in the Austrian press that
Austria paid -- directly or indirectly -- millions of euros
in ransom and/or made certain commitments to provide funds.
Tellingly, Austrian media in early November picked up
speculation by the Algerian daily "Liberte" that Libyan
strongman Gaddafi had paid between 3 million and 5 million
euros to Islamic extremists connected to the kidnappers
through a charity called the Gaddafi Foundation. (Note: The
same organization is believed to have been involved in the
freeing of German and Austrian hostages kidnapped in the
Sahara in 2003. End Note). Liberte alleged that Gaddafi had
acted after the late Austrian right wing politician Joerg
Haider urged Gaddafi's son Seif el-Islam al-Gaddafi, a
long-time friend of Haider, to ask the Libyan leader to help
free the hostages.


4. (U) Feeding on such speculation, the Austrian daily "Der
Standard" quoted an unnamed Austrian military official close
to the negotiations as saying, "I know that a ransom was
paid. However, the sum was lower than some are saying. They
(the kidnappers) got a lot less than what they wanted." The
source further insinuated that Austria had committed to
provide funds for humanitarian and infrastructure projects in
the area, which would be paid out through development aid
channels.

FM Calls Rumors "Half-Truths"
--------------


5. (U) In reaction to escalating rumors, FM Plassnik,
together with Defense Minister Darabos and Interior Minister
Fekter, dismissed those reports as "half-truths" and
underlined that Austria had not paid any ransom. The release
of the two hostages was the result of "firmness, persistence
and diplomacy...as well as Austria's excellent standing in
Africa," Plassnik told reporters. Plassnik specifically
praised Malian President Toumani Toure for his role in
freeing the Austrians. Toure asserted on November 1 that his
country had not received any money or made any financial
transaction in order to free the hostages. According to
Toure, the release was due to the efforts of the Malian
secret service and local elders who served as mediators. "I
want to say clearly that Mali did not receive any money for
some kind of financial transaction" related to the
kidnapping, he said.


6. (U) Meanwhile, Kloiber and Ebner have begun divulging some
details of their captivity to the public. In a TV interview
November 5, Ebner said he believed he and Kloiber survived
thanks to their Austrian nationality, as their kidnappers

VIENNA 00001663 002 OF 002


made it clear they would have "killed immediately" any "Jews,
Americans, Brits, Frenchmen, or Danes." They said their
abductors at times numbered up to 60.

Comment: Affair Could Influence FM's Future
--------------


7. (C) It is difficult to judge the credibility of the ransom
rumors. Clearly, the MFA's tight-lipped approach to the
matter has not served to dispel such speculation. The
opposition FPO and BZO remain skeptical and hav announced
their intention to query the FM in anupcoming parliamentary
session. One of FM Plassnik's harshest critics, the tabloid
"Kronenzeitung" hasrepeatedly faulted Plassnik in recent
monts for lack of progress in the hostage crisis, urgig her
to work through the EU rather than alone. Public perceptions
of her role in the crisis could affect her chances of
continuing as FM in the new government currently being formed.

Comment (cont.): A Searing Experience for MFA
--------------


8. (C) Regardless of the impact on Plassnik's future, this
hostage episode has clearly had a searing impact on senior
levels of the Austrian MFA. At the end of an already long,
late afternoon meeting on another subject with the Ambassador
and DCM recently, MFA Secretary General Kyrle unburdened
himself for another 30 minutes. Kyrle emotionally described
having chaired 144 sessions of the GOA's interministerial
hostage crisis group, through countless twists, turns,
dead-ends and frustrated hopes over the last eight months:
"an awful experience," he lamented. Kyrle's main substantive
point was that, in the GOA's analysis, virtually the entire
Sahel region of north Africa has become a lawless zone in
which Salafist al-Qaida groups can operate unhindered. These
groups form a coherent, organized network, which divide the
region into "emirates," all tied to a "headquarters" in
Algeria. Kyrle said the GOA knew for a fact that key figures
in this latest hostage episode were the same individuals
involved in the 2003 kidnappings (para 3). This situation in
North Africa, Kyrle argued passionately, posed a far greater
security threat to Europe than "Somali pirates," and was
severely underestimated by most members of the European
Union. Finally, Kyrle gave the Ambassador a copy of a
newspaper article from the "Courier International," which he
said paints a very accurate picture of the relationship
between al-Qaeda and Toureg tribes in the region (copy sent
to EUR/CE/Saint-Andre).
GIRARD-DICARLO