A/S FRIED'S DISCUSSIONS ON BILATERAL RELATIONS,

C O N F I D E N T I A L SECTION 01 OF 03 BUDAPEST 001164 SIPDIS SIPDIS DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING E.O. 12958: DECL: 07/11/2012 TAGS: PREL PGOV KDEM HU SUBJECT: A/S FRIED'S DISCUSSIONS ON BILATERAL RELATIONS, KOSOVO, AND CUBA Classified By: ACTING DCM ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) ¶1. (C) Summary: In separate meetings with MFA State Secretaries Laszlo Varkonyi and Ivan Udvardi, Assistant SIPDIS Secretary Fried commended GoH activism on Cuba and called for SIPDIS similar leadership on issues including Russia and energy security. Varkonyi formally requested a meeting for FM Goncz with Secretary Rice later this summer, and also pressed for a POTUS meeting with PM Gyurcsany later this year. A/S Fried outlined our way forward on Kosovo, making clear our resolve in response to Udvardi's repeated questions regarding the possibility of a further delay or a deal with the Russians. End Summary. "A MINOR IN RUSSIAN STUDIES" ... AND A MORE MAJOR ROLE IN EUROPEAN STRATEGY? ¶2. (C) Accompanied by Ambassador-designate Ferenc Somogyi and Director General for the Americas Szilveszter Bus, State Secretary Varkonyi reviewed GoH efforts in Cuba and SIPDIS Afghanistan, emphasizing the GoH's commitment to continued activism on these fronts. (Note: We could not help but note that Varkonyi, normally the soul of discretion but nonetheless often sorely tried by Ambassador Simonyi, introduced as Somogyi as "the man who will be our best Ambassador ever in Washington." End Note.) A/S Fried applauded Hungarian efforts to support a democratic transition in Cuba, noting that their actions have "won you important friends you didn't know you had." ¶3. (C) A/S Fried urged the GoH to demonstrate the same initiative with regard to other issues on "the frontiers of freedom." Recognizing that Varkonyi's portfolio does not include Russia, he commented that "whatever your major, we all have a minor in Russian studies." "An inward-looking Hungary," he continued, "cannot help us address an aggressive Russia." Though at pains to point out that his portfolio does not include Russia (a division of labor that has apparently been the source of some friction at the MFA), Varkonyi took the point, noting that "there are economic realities involved" but emphasizing that "we need to be more forthcoming with Washington" and to "avoid the trap of Russia." CONSULTATIONS AT HIGH LEVELS ... AND THE HIGHEST LEVELS? ¶4. (C) Emphasizing the importance of high-level consultations, Varkonyi formally requested a meeting between FM Goncz and Secretary Rice, suggesting a meeting in late August but indicating the GoH's flexibility re scheduling. He also requested a POTUS meeting for PM Gyurcsany, indicating that the Prime Minister is planning on a broader US trip focused on commercial promotion but advising that "he will not travel without at least this brief Washington component." A/S Fried agreed to take both issues back to Washington for consideration. (Note: Embassy views on the proposed Gyurcsany visit will follow septel. End Note.) ¶5. (C) Responding to Varkonyi's questions on the Visa Waiver issue, A/S Fried underscored our commitment to continued efforts to make good on the President's pledge to find a solution that "works for Hungary." CUBA: WELCOMING DOMESTIC CONSENSUS, IGNORING HAVANA'S CRITICISM ¶6. (C) In a brief discussion of Cuba, Varkonyi indicated that the GoH is already discussing a follow-up event to the recent conference hosted by the ICDT, describing Hungary's efforts to promote a democratic transition as "one of the few topics on which there is consensus." Varkonyi also commented that he is "99% sure" that the GoH will formally offer to accept 30 of the 38 refugees recently interviewed at Guantanamo, a move A/S Fried warmly welcomed. Varkonyi joked that he "knows we're on the right track because the Cuban government protests Hungary's actions every other week." He welcomed Hungary's membership in the club that "gets criticized by dictators." AFGHANISTAN: THE AMBITION TO SUCCEED ¶7. (C) On Afghanistan, Varkonyi indicated that the GoH is considering a further extension of its PRT in Baghlan province beyond 2008 in order to complete implementation of its civil reconstruction projects. (Note: FM Goncz was unable to meet with A/S Fried as she was leading a multi-party delegation to Kabul and Baghlan. End Note.) Hungary's assistance to Afghanistan "could have been controversial at a time of domestic austerity," but he proudly pointed out that "no one has questioned our efforts." BUDAPEST 00001164 002 OF 003 A/S Fried encouraged the GoH to give favorable consideration to NATO's call for the deployment of OMLTs in Afghanistan, commenting that the Alliance must have "the ambition to succeed." IRAN: OVERTURES FROM TEHRAN ¶8. (C) Varkonyi closed with assurances that the GoH will continue to "carefully consider" and "channel" into EU deliberations USG views on issues including North Korean, Iraq, Iran, and the broader Middle East. With particular respect to Iran, Varkonyi noted that the Iranian DGPA had recently travelled to Budapest offering "business opportunities" for Hungary. He took A/S Fried's point regarding Iran's vulnerability to international financial sanctions, emphasizing that Hungary has not responded to Iran's overtures in light of US concerns. KOSOVO: CONCERN IN BUDAPEST; DENIAL IN BELGRADE ¶9. (C) In a separate meeting with State Secretary Udvardi, A/S Fried made clear our intention to press forward on status, referring to a Security Council Resolution as "ideal but not necessarily attainable." We are prepared to consider language that is "silent on status" but any negotiations must focus on "the terms of the divorce - not on reconciling the dysfunctional family." The status quo is unsustainable, Fried concluded, and none should doubt our resolve. "We went to war without a resolution," he emphasized, "and we can make peace without one if need be." ¶10. (C) An essential element of that peace, he continued, will be a path to a European future for Serbia. But Serbia must accept - if not embrace - the inevitability of Kosovo's independence and begin "planning for the morning after" rather than "succumbing to irredentism." "The problem," he concluded, "won't go away," and "denial will only increase Serbia's isolation." ¶11. (C) Udvardi (who has previously expressed reservations re the Ahtisaari plan),pressed for a Security Council resolution in order to "maintain stability in Serbia" and preserve the status of ethnic Hungarians in Vojvodina. He also appealed for further negotiations including the Russians. ¶12. (C) A/S Fried minimized the prospects of constructive Russian engagement, warning that "we cannot deliver Moscow if Europe is weak. "Giving Moscow a veto over Europe's future," he continued, would set "an astonishing precedent." He expressed concern regarding renewed European division over the Balkans, asking for Hungarian efforts to warn Belgrade "not to paint itself into a corner." He warmly welcomed the GoH's initiative to include a Serbian contribution in its PRT in Afghanistan. ¶13. (C) Udvardi responded that Moscow "has no direct interest in Serbia" and is only using Kosovo as a means to an end. Although he commented that "we have not discussed the issue with Russia at all," he urged us to "find Moscow's price." A/S Fried warned that some prices - such as abandonment of Central Europe at Yalta - cannot be paid. ¶14. (C) Udvardi pledged continued efforts to reach a European consensus, including on EU consideration of Serbia as a candidate country despite widespread "enlargement fatigue." A/S Fried noted the importance of "the EU card," and asked FM Goncz to urge Serbian officials to "plan for Europe" in her July 24 meetings in Belgrade consistent with our view that "Budapest must find its voice" in the region and beyond (septel). ¶15. (C) Turning to NATO enlargement in closing, Udvardi made clear the GoH's strong support for Croatia's membership as "our priority among the three candidates." ¶16. (C) Comment: Given the careful delineation of issues between the two State Secretaries, it is clear that there are both personal rivalries and substantive differences within the MFA. Udvardi went much further than in previous contacts in expressing concern re the role of a Resolution. Further, in fact, than the Prime Minister in a subsequent meeting (septel). Discussion of Kosovo was the exception in an otherwise very positive review of a bilateral relationship that is, as A/S Fried noted, "less about classicial issues between our two countries and more about our efforts around the world." End Comment. ¶17. (U) A/S Fried has cleared on this message. BUDAPEST 00001164 003 OF 003 FOLEY