A/S FRIED'S DISCUSSIONS ON BILATERAL RELATIONS,

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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

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Secretary Fried commended GoH activism on Cuba and called for

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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

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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."

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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.


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