THE SECRETARY'S SEPTEMBER 14 MEETING WITH

C O N F I D E N T I A L STATE 131603 SIPDIS SIPDIS E.O. 12958: DECL: 09/14/2017 TAGS: PGOV PREL HU SUBJECT: THE SECRETARY'S SEPTEMBER 14 MEETING WITH HUNGARIAN FOREIGN MINISTER KINGA GONCZ, 1:15 PM, WASHINGTON (U) Classified by EUR A/S Daniel Fried, for reasons 1.4 (B) and (D) ¶1. (U) Participants: U.S. -------------- The Secretary EUR A/S Daniel Fried PA A/S Sean McCormack Steve Beecroft Marc Nordberg, EUR note taker Hungary -------------- FM Kinga Goncz Appointed Ambassador Ferenc Somogyi State Secretary Laszlo Varkonyi Acting Chief of Cabinet Gyorgy Varga DCM Viktor Szederkenyi, note taker ¶2. (U) SUMMARY: On September 14, Hungarian FM Kinga Goncz and the Secretary discussed energy security, Russia, Hungary's Afghan PRT, and Kosovo. Goncz asked for assistance on Hungary's offer to host the Strategic Airlift Capability consortium, joining the Visa Waiver Program, and, scheduling a visit by the Prime Minister to Washington. The Secretary and Goncz also discussed activities to promote democratic change in Cuba. END SUMMARY. -------------- Domestic Situation Stable -------------- ¶3. (C) FM Goncz opened the meeting by briefly explaining that the past year was not easy for Hungary (meaning politically difficult for the government). However, the political situation has stabilized over the past year and while economic reforms needed to reduce the deficit are painful, the Hungarian public supports them. -------------- GOH Supports Nabucco -------------- ¶4. (C) Goncz said Hungary is interested in the Nabucco pipeline since it will need additional gas supplies by 2012, but is frustrated at scant progress over the past five years. The GOH hosted a conference on Nabucco September 14 to try and jump start the project. Goncz mentioned that Azerbaijan does not have enough gas to fill Nabucco, so Europe would need to look to Turkmenistan or Iran for additional supplies. The Secretary immediately replied that, because of UN sanctions, Iran was not a reliable supplier of gas, particularly as the international community was likely to continue to isolate Iran over its nuclear program. Instead, the U.S. would help Central Asia develop gas exports. -------------- -------------- Hungary Misunderstood on Russia, Eager to Help on CFE -------------- -------------- ¶5. (C) Goncz categorically stated that its policies toward Russia are misunderstood. Hungary clearly shares NATO and EU values, but must deal with Russia for energy imports and as a market for exports. The Secretary clarified that the USG wants Hungary to have good relations with Russia. Because the CFE treaty is a key factor for regional stability, Goncz offered that Hungary be among the first states to ratify the Adapted CFE Treaty if Russia responds positively to the American proposal for resolving obstacles to the A/CFE's entry into force. The Secretary appreciated the offer. She explained that Russia has valid concerns about the current CFE treaty and the U.S. would work with Russia to try and keep them from pulling out of the treaty. The Secretary stated that the U.S. tries to cooperate with Russia, but pointed out that there are some topics on which the USG must stand firm, such as Georgia's sovereignty or alternate energy supplies. Goncz added that Hungary will soon open a diplomatic mission in Georgia. -------------- Basing C-17s in Hungary -------------- ¶6. (C) Goncz made a plea for USG support for Hungary to base Strategic Airlift Capability (SAC) C-17 aircraft at Papa Airbase. She argued that Hungary is doing everything requested to, meet SAC's requirements, and that Hungary would be a cost effective solution. Furthermore, since the Czechs and Poles would benefit from hosting missile defense installations, the U.S. is training its soldiers in Bulgaria, and Romania will host the next NATO Summit, Hungary would like to host SAC. The Secretary promised to raise this issue with Secretary of Defense Gates. -------------- Continuing Work in Afghanistan -------------- ¶7. (C) Goncz recently visited Afghanistan, and Hungary has decided to extend its leadership of the PRT in Pol-e- Khomri. Hungary has projects in job creation, construction and police training that need more time to Maximize their impact. Hungary will also take on management of Kabul airport. -------------- Same View on Kosovo -------------- ¶8. (C) The Secretary stated that Russian FM Lavrov recently told her that Russia is pleased with the constructive mood of the Kosovo negotiations. That said, however, the Secretary observed that it will be difficult to find an acceptable agreement. With no agreement, the international community will need to act on the Ahtisaari recommendations for Kosovo's supervised independence. In that case, the Secretary expressed her hope the EU could maintain consensus and offer the Serbs a clear European Perspective. While she expects neither Serbia nor Russia would accept an independent Kosovo, if faced with a united front, she thought both would tolerate an independent Kosovo. The Secretary also thought Russia would not use Kosovo as a precedent for recognition of Abkhazia's independence. That would be a dangerous move. Goncz agreed. She is pleased with the current negotiations; they will not solve the status issue, but build Confidence. She-added that Hungary is working to promote consensus within the EU. -------------- Goncz Wants PM Visit to Washington -------------- ¶9. (C) Goncz said PM Gyurcsany would like to visit Washington and meet with President Bush soon. The Secretary replied that she would discuss this with the SIPDIS White House, but that this fall is already very busy for the President. -------------- Visa Waiver Program Making Progress -------------- ¶10. (SBU) Goncz said the recent VWP legislation was a good first step, but that Hungary would like to see greater flexibility in the program. Since Hungary will join the Schengen zone on January 1, Goncz thought similar progress on visa-free travel to the U.S. would be timely. The Secretary confirmed that the administration would continue SIPDIS to work with Congress to move forward on VWP. -------------- Hungary Active in Cuba -------------- ¶11. (C) Goncz said the Hungarian Embassy in Havana is more actively engaging with the Cuban opposition. The Embassy provides internet access to Cubans and has imported literature explaining Hungary's democratic transition. At the same time, the Embassy is looking to expand contacts With regime officials to share the Hungarian experience and promote a peaceful transition. The Cuban government has reacted with mixed messages, on the one hand criticizing Hungary for these activities, while at the same time sending a new ambassador to Budapest. The Secretary thanked Hungary for recently accepting 28 Cuban SIPDIS protected refugees from Guantanamo. RICE