VZCZCXRO6841
PP RUEHSL
DE RUEHUP #0037/01 0251238
ZNY CCCCC ZZH
P 251238Z JAN 10
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 4829
INFO RUEHZG/NATO EU COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 0747
RUEHVJ/AMEMBASSY SARAJEVO 0310
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHNO/USMISSION USNATO 0488

C O N F I D E N T I A L SECTION 01 OF 03 BUDAPEST 000037 
 
SIPDIS 
 
DEPARTMENT FOR EUR/CE JAMIE MOORE, NSC FOR JEFF HOVENIER 
 
E.O. 12958: DECL: 01/21/2014 
TAGS: PREL ENRG EPET MOPS PHUM RS BK AF HU
SUBJECT: AMBASSADOR'S MEETINGS WITH SENIOR MFA OFFICIALS 
 
REF: BUDAPEST 26 
 
Classified By: Political Officer Jon Martinson, reasons 1.4.(b,d) 
 
¶1.  (C) Summary.  In separate meetings January 21 with the 
Ambassador, MFA State Secretaries Laszlo Varkonyi and Gabor 
Iklody stressed the importance of the U.S.-Hungarian 
bilateral relationship and outlined proposed cooperation 
between the Visegrad Four and the USG on Roma and energy 
issues.  Highlighting efforts to increase the civilian 
development presence in Afghanistan, Iklody requested 
assistance to identify potential partners to join with them 
in Baghlan province.  While the relationship "is better than 
it was," both State Secretaries noted that Russia remains a 
"partner and adversary."  Concerned over decreasing 
multi-national troop strengths in the Western Balkans, 
Hungary still believes MAP for Bosnia is the way forward to 
address continuing stabilization and integration efforts in 
the region.  Varkonyi stated that Hungary looks to continue 
its democratization efforts in conjunction with the 
Administration's policy on Cuba, but expressed disappointment 
with the outcome of the Copenhagen Climate conference, asking 
"how could the EU be left out of the President's meeting on 
the final document?"  Following recent EU meetings, Iklody 
assesses the new EU structure emerging from the Lisbon treaty 
as "a nightmare and chaos."  End summary. 
 
---------------------------- 
NUMBER ONE STRATEGIC PARTNER 
---------------------------- 
 
¶2. (C) Opening their meetings with the Ambassador, both State 
Secretary Varkonyi and State Secretary Iklody echoed the 
Prime Minister's and Foreign Minister's comments in their 
meetings with the Ambassador (reftel) - in Iklody's words, 
"the U.S. is the number one strategic partner for Hungary." 
Varkonyi called the political changes of 1990 "a dream come 
true for Hungary," providing the country an opportunity to 
join a family of nations in a strategic relationship based on 
shared values.  He stressed that this strong bilateral 
relationship is not dependent on any one government cycle in 
Hungary or the U.S., and this approach dominates MFA 
thinking.  Noting that Hungary will be an intersecting place 
for the next two years, with national elections, and the 
Visegrad Four (V-4) and EU presidencies dominating the 
political scene, Varkonyi underscored that nothing will shake 
the bilateral relationship.  The Ambassador thanked the 
Secretaries for Hungary's  decision to accept a detainee, 
which "set the tone" for other countries in the region to do 
the same, and agreed that the Visegrad Four and EU 
presidencies provide tremendous leadership possibilities for 
Hungary. 
 
 
¶3. (C) Iklody also expressed appreciation for the 
Administration's "new focus on Central Europe," highlighting 
regular conference calls with the regions political directors 
to discuss topics of mutual concern as mutually beneficial. 
Turning to Hungary's current V-4 presidency, Iklody outlined 
two areas for potential cooperation between the V-4 and the 
U.S.  The first focuses on the Roma issue, which he described 
as "a national, regional and European issue."  Iklody stated 
that he hopes to have a Central European V-4 strategy 
approved and launched by June, as urgent action is needed to 
change stereotypes and prejudices.  Iklody raised energy 
security as the second area for potential cooperation, 
stating it is high on the V-4 agenda.  Responding, the 
Ambassador said, that while this is an EU issue, the U.S. 
recognizes the importance and is ready to offer assistance 
where possible, to include DAS Morningstar's planned 
participation in the V-4 energy conference in February. 
Iklody stated that he is planning a visit to Washington in 
March to discuss the V-4 efforts, followed by a visit of all 
four V-4 political directors later in the spring. 
 
----------- 
AFGHANISTAN 
----------- 
 
¶4. (C) Iklody told the Ambassador that an increase in 
Hungarian development capabilities on the ground in 
Afghanistan is this government's number one development 
priority, with 50 percent of their development funding 
dedicated to Afghanistan.  Although limited by current 
budgetary constraints, Iklody stated that Hungary is 
concentrating more on civilian reconstruction and trying to 
adjust its presence in Afghanistan to match President Obama's 
 
BUDAPEST 00000037  002 OF 003 
 
 
recent strategy announcement.  As the strategy develops, he 
asked that the Embassy remain in contact to help fine tune 
Hungary's effort on the ground, commenting that the earlier 
we can build effective Afghan institutions, the earlier we 
can leave.  He also asked for assistance to help identify 
potential partners less willing to send military forces, but 
perhaps more willing to find civilian development projects. 
 
------ 
RUSSIA 
------ 
 
¶5. (C) Reflecting back on the 1990 political changes in 
Hungary, Varkonyi suggested that successive Hungarian 
governments tended to forget that Russia is a big country, a 
neighbor, and a significant trading partner.  He expressed 
his view that the pendulum has swung back to a more balanced 
relationship, noting that the relationship "is better than it 
was."  That said, Varkonyi commented that Hungary will 
continue to criticize Russian military and economic 
"aggressive moves."  Iklody said he views Russia as "our 
partner and adversary;" a partner on energy, and a competitor 
on a common neighborhood policy.  Iklody told the Ambassador 
that we all want to engage Russia, but not by sacrificing 
values, and at some point Russia will realize that they have 
no other alternative.  Referencing the "reset" Iklody said 
Hungary is looking for results, please keep us involved. 
Responding, the Ambassador underscored the importance of 
cooperating in areas where we have shared interests, but 
transparency is critical, in particular, as Russia attempts 
to expand economic and business interests in Europe. 
 
--------------- 
WESTERN BALKANS 
--------------- 
 
¶6. (C)  Turning to the Western Balkans, Iklody expressed 
concern over the current situation in Bosnia, stating that 
there is still unfinished business in our stabilization and 
integration efforts.  Noting that "we agreed to disagree" on 
MAP for Bosnia, he said currently nothing is moving forward; 
Bosnia needs encouragement and a push that MAP would provide. 
 Expressing concerned with decreasing multi-national troop 
levels in the region, Iklody commented that the Office of the 
High representative (OHR), which he believes should remain 
for now, will have "no stick" addressing issues with the 
Bosnian government with a decreased military presence behind 
him. 
 
---- 
CUBA 
---- 
 
¶7. (C) Hghlighting Hungary's international democratization 
efforts in Cuba, Iraq and Belarus - primarily through the 
government supported International Center for Democratic 
Transition (ICDT) - Varkonyi asked if the Obama 
Administration's focus on Cuba has shifted, as Hungary looks 
to continue cooperation in its efforts to promote peaceful 
change towards more open, democratic, systems.  Responding. 
the Ambassador praised Hungary's special relationship and 
ICDTs efforts, encouraging Hungary to play a "Sweden-type" 
role in this important endeavor.  Responding to the 
Ambassador's question concerning the current Spanish EU 
presidency vis-a-vis Cuba, Varkonyi stated that member States 
made it clear at a recent meeting in Madrid that, although 
Spain may have vested interests in Cuba, this is not the time 
for Spain to implement its foreign policy through the EU 
presidency.  He told the Ambassador that he does not expect 
Spain to push hard on the Cuba issue, nor does he anticipate 
any change to the current EU coordinated position on Cuba 
until there is a real shift in Cuba's actions. 
 
----------------------------- 
COPENHAGEN CLIMATE CONFERENCE 
----------------------------- 
 
¶8. (C) Varkonyi expressed disappointment in the Copenhagen 
conference's outcome, stating that President Obama's meeting 
to work out the final agreed-to document excluded the EU from 
the discussions, asking "how could the number one donor be 
left out?"  Both he and Iklody consider this more a failure 
of the EU than a hostile move by the others.  Varkonyi said 
that the EU was not able to bring good offers to the table, 
and had nothing to do with the final agreement.  Both he and 
Iklody confirmed that the EU will agree to the accord as a 
collective whole rather than as individual member States. 
 
BUDAPEST 00000037  003 OF 003 
 
 
 
------------------- 
A MORE DIFFICULT EU 
------------------- 
 
¶9. (C) Recently returning from an EU meeting in Madrid, 
Iklody reflected on the current transition to the new EU 
structure emerging from the Lisbon treaty as "a nightmare and 
chaos."  Commenting that the "EU will be a more difficult 
partner in the near term," Iklody said there is significant 
in-fighting underway as the newly created High Representative 
position has "undefined responsibilities, and the EU 
Commissioner has a strong, solid infrastructure in place." 
That said, Iklody told the Ambassador that during its EU 
presidency beginning in January 2011, Hungary wants to work 
very closely with the U.S. on common security policy and the 
trans-atlantic relationship; developing strategies together 
that, with the combined weight of the U.S. and EU, will make 
the relationship more substantial. 
 
¶10. (C) Comment.  Both Varkonyi and Iklody are career 
diplomats with whom the Embassy has excellent working 
relationships. With significant international experience, 
both have served as Ambassadors under Socialist and Fidesz 
governments, and Post anticipates that they will retain key 
foreign policy roles under the anticipated Fidesz government 
following this April's national elections.  Varkonyi was a 
strong supporter of the GOH's decision to accept a Guantanamo 
detainee, and Iklody is actively engaged across a wide 
spectrum of foreign policy issues in his role as Political 
Director.  End comment. 
KOUNALAKIS