FINANCE MINISTER GETS THE MESSAGE ON TAX TREATY

UNCLAS BUDAPEST 000444 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR EUR/NCE AND EB TREASURY FOR XAA HENRY LOUIE AND XLI JESSE EGERT E.O. 12958: N/A TAGS: EFIN PREL HU SUBJECT: FINANCE MINISTER GETS THE MESSAGE ON TAX TREATY REF: BUDAPEST 430 ¶1. (SBU) In a meeting with Ambassador Foley April 29 (other issues septel),Finance Minister Janos Veres underscored his commitment to expediting resolution of the outstanding issues in our bilateral tax treaty (REFTEL). ¶2. (SBU) Veres confirmed that the GoH will be prepared to resume negotiations on July 7, adding that his Ministry will be ready to continue "into the summer" as necessary. ¶3. (SBU) If reaching "overall agreement" on the text of the ntire agreement appears to be too time-consuming, Veres proposed as a potential compromise that both sides be prepared to consider a "separate protocol" to address the specific issues of tax avoidance and limitation of benefits. Veres recognized our deadline and acknowledged that "these are the key points," suggesting that both sides keep this prospect as "Plan B" for now but leave the option open for reconsideration as necessary in August or September. Foley