GUIDANCE REQUEST: POTENTIAL MILITARY TRANSFER TO

C O N F I D E N T I A L BUDAPEST 000333 SIPDIS SIPDIS E.O. 12958: DECL: 03/05/2017 TAGS: PREL MARR HU LY SUBJECT: GUIDANCE REQUEST: POTENTIAL MILITARY TRANSFER TO LIBYA Classified By: P/E COUNSELOR ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) ¶1. (C) This is an action message. Please see para 6 for action request. ¶2. (SBU) MFA Director for Non-Proliferation Andras Toth called PolEcon Counselor March 5 to discuss an "urgent and discreet issue." ¶3. (C) He explained that the GoH is currently considering a Libyan request to purchase replacement batteries for "sigint and jamming equipment" purchased from Hungary in 1981. (Note: Toth did not have all the technical details in response to our inquiry, but described the transfer as small and said the equipment in question is the Hungarian version of Russian technology from the 1970s commonly referred to as the "Sahara." End note.) ¶4. (C) Toth added that a Libyan delegation had visited Hungary in late January to discuss the sale - unbeknownst to the MFA. Toth stated that he had vigorously protested this step within the interministerial body which advises the national licensing authority on arms transfers, as standard practice calls for licenses to be reviewed in principle before any negotiations begin. With the support of the MFA at the State Secretary (UnderSecretary-equivalent),he had argued that the transfer could cause diplomatic problems with Washington in order to win a temporary delay. ¶5. (C) Having temporarily blocked review of the transfer, Toth now asked for our opinion of the proposed transfer, commenting that he is committed to upholding appropriate restrictions on arms transfers. He admitted, however, that he perceives our relationship with Libya as having "evolved considerably," and conceded that he "does not want to be more Catholic than the Pope." ¶6. (C) If Washington voices no objections to the proposed transfer, it is our impression that the MFA will fall off its objections to the proposed transfer, whatever their criticism of the process to date. We request Department's guidance in order to respond to Toth before the next meeting of the interministerial review body on March 10. Minimize Considered FOLEY