THE SECRETARY'S SEPTEMBER 14 MEETING WITH

C O N F I D E N T I A L STATE 131603

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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.
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The Secretary
EUR A/S Daniel Fried
PA A/S Sean McCormack
Steve Beecroft
Marc Nordberg, EUR note taker

Hungary
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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.

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Domestic Situation Stable
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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.

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GOH Supports Nabucco
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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.

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Hungary Misunderstood on Russia, Eager to Help on CFE
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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.

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Basing C-17s in Hungary
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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.

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Continuing Work in Afghanistan
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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.

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Same View on Kosovo
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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.

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Goncz Wants PM Visit to Washington
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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

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White House, but that this fall is already very busy for
the President.

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Visa Waiver Program Making Progress
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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

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to work with Congress to move forward on VWP.

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Hungary Active in Cuba
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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

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protected refugees from Guantanamo.
RICE