AMBASSADOR DAALDER'S MEETING WITH THE HUNGARIAN

C O N F I D E N T I A L SECTION 01 OF 03 BUDAPEST 000556 SIPDIS DEPARTMENT FOR EUR/CE JAMIE LAMORE. PLEASE PASS TO NSC JEFF HOVENIER E.O. 12958: DECL: 07/26/2019 TAGS: PREL PGOV MCAP NATO EUN ZL AF HU SUBJECT: AMBASSADOR DAALDER'S MEETING WITH THE HUNGARIAN PRIME MINISTER REF: BUDAPEST 320 AND PREVIOUS Classified By: Acting P/E Counselor Jon Martinson, reasons 1.4 (b,d) ¶1. (SBU) Summary. Ambassador Daalder, accompanied by the Charge, met Hungarian Prime Minster Gordon Bajnai at Papa Airbase July 27. Bajnai reflected on the first 100 days of his administration, stating he places first priority on the value-based relationships found within NATO and the EU. Commenting that he is working to repair Hungary's international image "damaged" by the current economic crisis and political in-fighting, the Prime Minister touched on four issues: Afghanistan, Kosovo, the western Balkans, and energy. Responding, Ambassador Daalder acknowledged the importance to NATO of energy security in Europe and thanked the PM for Hungary's continued support in Afghanistan and Kosovo. Expressing agreement with Hungary's views on Kosovo of the need to "measure the milestones" before withdrawal of KFOR troops, the Ambassador outlined his views on how to address the various challenges in the western Balkans. In closing, Bajnai commented that the GOH was considering whether to accept Guantanamo detainees but had not made a final decision. End summary. -------------- PRESSED OUR OWN RESET BUTTON -------------- ¶2. (C) In a July 27 meeting on the margins the Strategic Airlift Consortium's activation of the 12-nation C-17 Heavy Airlift Wing at Papa Airbase, Hungary, Prime Minister Gordon Bajnai - joined by Minister of Defense Imre Szekeres, Hungary's NATO Ambassador Istvan Kovacs, and new National Security Advisor David Koranyi - summarized his efforts during the first 100 days of his government. Stating that "we have pressed our own reset button," the Prime Minister said his government places priority on value-based relationships, noting that his first trip was to NATO, the EU and then Austria in order to strengthen those bonds. Bajnai commented that such value-based relations take precedence over interest-based relationships, citing Hungary's economic relationships with Russia and China. Acknowledging that "we've suffered from past economic mistakes, and these, coupled with political in-fighting, do not give Hungary a good international reputation," the PM said he is working to restore Hungary's good reputation and status. Continuing, Bajnai said, "I am trying to lead a government of common sense, and although I have to cut five percent in GDP-based spending over two years, I can feel life blood returning to our veins." -------------- OFFERING SOLUTIONS, NOT PROBLEMS -------------- -------------- Afghanistan -------------- ¶3. (C) Prime Minister Bajnai said that "Hungary's aim is to be part of solutions, not part of the problem." He then addressed four key concerns: Afghanistan, Kosovo, the western Balkans, and energy. On Afghanistan, Bajnai stated that "we will maintain our presence next year, and as long as there is a need." He said that Hungary views its ISAF participation and contributions at Papa as good symbols of Hungary being part of the solution. Responding to the Ambassador's query, Bajnai said that the GOH will consider how to support training Afghan troops as well (including possibly sending a second OMLT to southern Afghanistan). The Ambassador expressed appreciation for Hungary's support of the mission in Afghanistan, including its Special Forces unit without caveats. Stressing that Afghanistan "is not a U.S. mission, rather it is a common mission," Ambassador Daalder noted that we await General McChrystal's assessments on how to proceed, with an expectation that he will place greater emphasis on training of the Afghan army and police. While this may require two to three billion dollars a year to improve ANA and ANP capabilities, the Ambassador noted in the long run, this investment will be less expensive than continued deployment of coalition forces to the region. -------------- Kosovo -------------- ¶4. (C) Focusing next on Kosovo, Bajnai said that "we should BUDAPEST 00000556 002 OF 003 not move too fast, we need to stop at every corner and examine the milestones," stressing that Hungry believes in an incremental approach to withdrawing troops, not one based on timelines. The Ambassador expressed agreement with the PM's approach, commenting that we cannot afford to lose gains already made by moving too fast. Noting that the Vice President and the Deputy Secretary of State were recently in the region, the Ambassador outlined the USG's serious engagement with Serbia, including the Ambassador's suggestion that a NAC visit to the region might include a visit to Belgrade to provide a good opportunity to listen to Serbian leadership. The Ambassador also acknowledged the importance to Hungary of stability in the region, stating that Hungary is well situated to help Serbia make good decisions. -------------- Western Balkans -------------- ¶5. (C) Moving on to the western Balkans, the PM said the situation "is not going in the right direction," stating that countries already "in the club" (NATO, EU) are trying to exclude others from membership. Bajnai said this creates long-term strategic concerns for those countries standing in the queue, as there is a great potential for "political backsliding." If the possibility and promise of accession is lifted, the PM said this only strengthens nationalist movements in those countries. Commenting that Hungary sees its role as a "promoter, and coach in the western Balkans," Bajnai noted that although Serbia is increasingly friendly, and the current leadership is western-oriented, "we must be careful to ensure that the queues to Western memberships keep moving." ¶6. (C) In response, Ambassador Daalder said the U.S. strongly supported enlargement of NATO to the Western Balkans. The Ambassador added we have clear rules and a clear process for membership in NATO, and ultimately Montenegro and Bosnia have to make the necessary reforms to be considered for membership. NATO could help, but the responsibility is theirs. Regarding Macedonia, the Ambassador commented that the U.S. supports efforts by Special Representative Nimitz to achieve an agreement between Greece and Macedonia, but if we lose this opportunity, it will be many years before we solve the problem. The Ambassador added the "name issue" is the only impediment to Macedonian accession to NATO. Continuing, the Ambassador agreed that the current Croatia/Slovenia relationship needs to be addressed. He noted Slovenia's objections to Croatian membership in NATO were overcome, and so we are hopeful that its current objections to Croatia's EU membership similarly will be resolved. In this way, Ambassador Daalder noted, the aspirations of European nations to join multilateral organizations can quicken long-delayed resolution of conflicts. -------------- Energy Security -------------- ¶7. (C) Regarding energy security, Bajnai noted that Hungary currently holds the Visegrad Four Presidency and said he plans to work towards a coordinated energy policy. Highlighting efforts to diversify energy supplies via liquid natural gas through Croatia from the Adriatic and the Nabucco pipeline (but not an alternative to the South Stream project),the PM expressed his concern over Russian inroads into the Hungarian gas company MOL through recent purchase of 21 percent of the shares in the corporation. Bajnai said he took issue with Russia's protestations over the GOH's efforts to limit the Russian company's influence (reftel),recently asking Russia's Budapest Ambassador "what would the Russian government say/do if the Hungarian government or largest Hungarian gas company tried to take a 20 percent interest in Gazprom?" While commenting that free market economies function in this way, Ambassador Daalder underscored the USG's support for efforts to diversify energy supplies in Europe, noting that we do not want to repeat the gas crises of the past two years. ¶8. (C) Comment. As in previous meetings, Bajnai appeared very confident, well informed, and somewhat unexpectedly - with his past focus on economic and financial issues - very conversant discussing a range of security issues with broader international implications. Although Defense Minister Szekeres sat in on the meeting, the fact that the Prime Minister did not call upon Szekeres to address current or future MOD activities, reflected the PM's confidence to BUDAPEST 00000556 003 OF 003 address them on his own. Additionally, noting that he just passed the 100-day milestone as Prime Minister, Bajnai conveyed a very strong feeling that his efforts at restructuring the Hungarian economy - although very unpopular - were having a positive effect. As a final note, Bajnai briefly commented that the GOH had not yet made a decision concerning acceptance of Guantanamo detainees. End comment. ¶9. (U) Ambassador Daalder has cleared this cable. LEVINE