can compile file with pdflatex from command line but not Auctex

[Uwe Brauer]

Hi

Currently I am running a compiled master auctex version 
commit 2151c3831fcf

The problem I face turns me crazy. I have to compile a bunch of files,
basically all from the same author, and all must be compiled with
pdf(la)tex, which I can from the command line.

However if I try to run it via Auctex, auctex only uses latex not
pdflatex and then compilation errors pop up.

There most be something in the setting of that file, that confused
auctex.
I attach a simplified version

Any help would be appreciated

Uwe Brauer 
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