1. (U) Hungarian authorities remain fully supportive of the
GWOT, including through its deployment of a Provincial
Reconstruction Team in Afghanistan. The Hungarian government
also supports USG initiatives against al-Qaida and other
terrorist organizations both within its borders and abroad.
The Hungarian government continues to fully implement
domestic legislation to ensure compliance with EU norms re
financial transactions and money laundering.



2. (U) Hungary is not a safe haven for terrorists. The
Hungarian government closely monitors potential extremists.
There are no known terrorist groups operating openly in
Hungary.



3. (U) The Hungarian government has maintained its
commitment to safeguarding Americans and U.S. interests.
Officials maintain a close dialogue with US officials on
terrorism and continue to express their willingness to take
legal action against those tied to terrorist organizations.
There have been no terrorist acts against American nationals
or U.S. interests.



4. (U) Cooperation with U.S. and regional officials on
export and border controls remains outstanding as Hungary
continues preparations to join the Schengen zone. Throughout
2006, Hungarian officials aggressively developed and pursued
leads to cooperate with U.S. officials in preventing the
transshipment of hazardous materials. Efforts to improve its
technical ability to trace and control dangerous materials
continue, consistent with its EU membership.



5. (U) Embassy POC for Terrorism issues is Political
Counselor Eric V. Gaudiosi (GaudiosiEV2@state.gov; Embassy
Budapest Extension 4670)

REEKER