Identifier
Created
Classification
Origin
08BUDAPEST691
2008-07-10 14:06:00
CONFIDENTIAL
Embassy Budapest
Cable title:  

RIDING THE RANGE AND MENDING FENCES: GYURCSANY'S

Tags:  PREL ENRG PGOV HU 
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VZCZCXRO3847
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #0691/01 1921406
ZNY CCCCC ZZH
P 101406Z JUL 08
FM AMEMBASSY BUDAPEST
TO RUEHAH/AMEMBASSY ASHGABAT PRIORITY 0059
RUEHTA/AMEMBASSY ASTANA PRIORITY 0026
RUEHKB/AMEMBASSY BAKU PRIORITY 0135
RUEHC/SECSTATE WASHDC PRIORITY 3174
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 000691 

SIPDIS

DEPARTMENT FOR EUR/NCE; PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/08/2013
TAGS: PREL ENRG PGOV HU
SUBJECT: RIDING THE RANGE AND MENDING FENCES: GYURCSANY'S
TRIP TO CENTRAL ASIA

Classified By: A/DCM ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D)

THE EASTERN APPROACHES

C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 000691

SIPDIS

DEPARTMENT FOR EUR/NCE; PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/08/2013
TAGS: PREL ENRG PGOV HU
SUBJECT: RIDING THE RANGE AND MENDING FENCES: GYURCSANY'S
TRIP TO CENTRAL ASIA

Classified By: A/DCM ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D)

THE EASTERN APPROACHES


1. (C) The GoH is working to mend fences with the U.S.
through a series of moves highlighted by Prime Minister
Gyurcsany's trip to Central Asia July 7 ) 9.


2. (C) According to Foreign and Security Policy Advisor
Karoly Banai, the trip was designed to demonstrate that
Hungary is committed to "do more than talk about Nabucco."
Indeed, Gyurcsany has used his stops in Azerbaijan and
Turkmenistan to call publicly for another Nabucco Summit and
to emphasize the importance of Central Asian suppliers in
making the project a reality.


3. (C) Where the PM would go, Banai emphasized, is as
significant as where he would not. Gyurcsany had "readily
agreed" with his recommendation that the trip not include a
stop in Kazakhstan and the "political liability" of "yet
another meeting with Putin" at a CSIS event there. (Note:
Banai added that a separate, bilateral trip to Kazakhstan is
likely in the fall. His goal, however, is to combine the
trip with a stop in Georgia to show support for Tbilisi's
NATO aspirations. End Note.)


4. (C) Though Banai hopes that "the visit will speak for
itself," he outlined the basic goal as underscoring Hungary's
readiness to "dedicate assets to make Nabucco happen."
Acknowledging that "sequencing is important" and that Nabucco
is "a very important security priority," Banai concluded that
"we're not rushing South Stream ) we want to rush Nabucco."
Banai's predecessor - and close Gyurcsany friend - Klara
Akots underscored the same message to us on July 9,
commenting that "we hope Washington notices how far the Prime
Minister is going to explore for gas."

CRITICISM FROM WITHIN THE MSZP; ENTHUSIASM FROM THE PRIME
MINISTER


5. (C) But even those who agree with the priority on Nabucco
have been privately critical of the trip. MSzP MP Vilmos
Szabo, Deputy Chair of the Foreign Relations Committee, tells
us off-line that the trip was poorly timed, coming "days
after Medvedev had been to the region to buy up all the gas."
A loyal party soldier, Szabo nonetheless questioned

Gyurcsany's credibility as host of a Nabucco Summit, citing
the trip as "yet another idea no one could talk the PM out
of."

GYURCSANY DISCOVERS GAS


6. (C) Szabo's reservations notwithstanding, Gyurcsany
returned from the trip - including a 6 hour meeting with
Turkmen President Berdimuhamedow - convinced that "the gas is
there." As he told Ambassador Foley in a brief discussion
July 10, however, he believes the lack of political will
represents a greater challenge than the "technical
questions." Media outlets here, for example, report that
Berdimuhamedow had made clear that Nabucco is "not a priority
for his country" and had made "no commitments" to supply it.
Nonetheless, Gyurcsany confirmed his offer to hold a "Nabucco
Summit" at the Heads of Government level next summer, to
include all supplier nations, consortium members, and the EU
and U.S. According to Gyurcsany, the leaders of both
Azerbaijan and Turkmenistan agreed to participate. The Prime
Minister also promised to circulate a written summary of his
trip to us and to all Nabucco consortium members.

"HARMONY IS OUR POLICY"


7. (C) The desire to put our bilateral relationship back on
track also featured prominently in the MFA's Chiefs of
Mission conference last week. In a meeting with Ambassador
Foley July 8, State Secretary Laszlo Varkonyi noted that
Foreign Minister Goncz had told the assembled Ambassadors
that "America is our number one ally." While acknowledging
that "great powers and small countries will have different
perspectives on issues like energy," Varkonyi emphasized that
"our policy is total harmony with the United States." Toward
that end, he had encouraged all Hungarian ambassadors to take
a more activist posture on democracy promotion efforts
consistent with our Freedom Agenda.


8. (C) Varkonyi also encouraged us to "maintain seamless
consultations" through our own election season. He noted
Foreign Minister Goncz's interest in a "low-key" visit to

BUDAPEST 00000691 002 OF 002


Washington on the margins of the UNGA, and expressed his own
desire for Washington consultations on Iraq and the Broader
Middle East, Afghanistan, Cuba, and Democracy Promotion in
the fall. The GoH's Nabucco Ambassador, Mihalj Bayer, would
also like to make another trip to Washington.

ACCENTUATING THE POSITIVE, ILLUMINATING THE NEGATIVE


9. (C) The GoH is clearly trying to regain a degree of its
credibility with Washington. Although Varkonyi emphasized
that "we professionals must avoid domestic politics," even
his senior staff privately lament the public focus on the
strain in our relationship. The MFA's Americas Director
noted at the July 4th reception that he is "losing sleep"
over a recent spate of articles in the press questioning
Hungary's fundamental orientation. By contrast, Szabo and
others within the MSzP believe that Gyurcsany actually feels
more confident of his position in the near term, having
demonstrated that minority government can work in practice.


10. (C) Comment: Gyurcsany's trip is a significant ) if
largely symbolic ) step to answer the very public questions
regarding Hungary's foreign policy. We should give due
recognition to the GoH's efforts, particularly the offer to
host another Nabucco Summit. In doing so, however, we should
make clear that the familiar pattern of public commitment and
private disappointment cannot continue. In particular, we
should continue to encourage the GoH to improve its
transparency with regards to South Stream. We have no doubt
that work is continuing on this front, and have made the
point that our relationship can withstand candid discussion
better than it can unpleasant surprises. End comment.


11. (U) Post welcomes any insights on the Gyurcsany trip
from Embassies Baku and Ashgabat.


Foley