Military

DATE=12/21/03

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL/AUSTRIA (L-O)

NUMBER=2-311086

BYLINE=MELANIE SULLY

DATELINE=VIENNA

CONTENT=

VOICED AT:

INTRO: Israel is restoring full diplomatic relations with Austria. Israel broke off relations almost four years ago when an Austrian government was created to including the radical right Freedom Party under Jörg Haider. Melanie Sully reports from Vienna.

TEXT: Israel issued a communiqué Sunday confirming it will appoint Avraham Toledo as its new ambassador to Austria.

The ambassador was recalled in February 2000 in protest against the formation of a government including Jörg Haider's populist Freedom Party.

Mr. Haider stands accused of anti-Semitism and pro-Nazi sympathies, something he has always denied.

The European Union also slapped sanctions on Austria but months later resumed normal relations.

Mr. Toledo says Israel's decision to follow suit now is connected with the Austrian government's initiative in providing compensation for victims of Nazi persecution.

///TOLDEO ACT///

I think they also did several things in the field of taking responsibility for the Nazi era and for what happened here in Austria. In the last election the Freedom Party from 27 percent became 10 percent and after elections in Upper Austria and Tyrol even eight percent.

///END ACT///

Mr. Haider is no longer leader of the Freedom Party but remains governor of the state of Carinthia, a post he could lose next year.

His popularity with voters has dramatically fallen and he is unlikely to get the support of other parties for re-election next March.

This week Mr. Haider once again provoked criticism by comparing President Bush with Saddam Hussein and calling Israel a dictatorship. (Signed)

NEB/MS/RH