VZCZCXRO1705
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #2462/01 3451418
ZNY CCCCC ZZH
P 111418Z DEC 06
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 0514
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBUL/AMEMBASSY KABUL 0070
RUEHUB/USINT HAVANA 0004

C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 002462 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING 
 
E.O. 12958: DECL: 12/06/2016 
TAGS: PREL PGOV MOPS CVIS HU
SUBJECT: MFA FULLY ENGAGED ON AFGHANISTAN 
 
REF: BUDAPEST 2383 
 
Classified By: POL/C ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) 
 
¶1.  (C) MFA Assistant Secretary Varkonyi reviewed the state 
of play on Afghanistan, Cuba, and the Visa Waiver Program in 
an informal conversation with Ambassador Foley December 6. 
The MFA is increasingly taking on the leadership role in 
coordinating interagency efforts on the reconstruction and 
development aspects of Hungary's PRT and is actively pursuing 
funding from various international sources.  They are also 
mapping out next steps on Cuba, including the assignment of a 
new Chief of Mission in Havana.  Varkonyi warmly welcomed the 
President's recent remarks on the Visa Waiver Program, and 
assured us the GoH is hard at work to address the technical 
questions raised by President Solyom regarding the US-EU 
passenger data sharing arrangments in order to move forward 
as quickly as possible.  End Summary. 
 
AFGHANISTAN: MOVING TOWARD IMPLEMENTATION 
 
¶2.  (C) A/S Varkonyi reviewed the current status of GoH 
reconstruction and development projects, confirming the GoH's 
intention to focus on priorities including police training 
and employment generation.  Specifically, the GoH plans to 
construct a brick factory and pasta factory, with the latter 
directed at returnees to Baghlan province.  They will also 
implement a project for the production of rugs intended to 
support women's empowerment.  They have established contacts 
with Afghan President Karzai's brother, who has "interests in 
the province," in order to coordinate their efforts.  The MFA 
has also identified year-end funds to help Pashtu returnees 
to the province raise chickens, and will be donating medical 
equipment in addition to its humanitarian donation for flood 
relief. 
 
¶3.  (C) Although the 500 million forint (approximately USD 
2.6 million) for police training will not be available until 
January 1, the MFA has funded the visit of an advance team 
from the Ministry of Justice and Law Enforcement so they will 
be "ready to go."  The GoH is working hard to access EU funds 
for police training, and believes the Union will focus on the 
issue given their sensitivity to "the perception of problems." 
 
¶4.  (C) This is part of a broader GoH campaign to identify 
international funding sources.  Varkonyi noted FM Goncze's 
personal outreach to her counterparts from Greece, Iceland, 
and Luxembourg on the margins of the Riga Summit, expressing 
particular optimism regarding the prospect of "funding or 
personnel" from Athens but underscoring their intention to 
remain in touch with capitals.  He is personally in contact 
with Qatari officials re potential cooperation on educational 
projects, and assured us that Hungary puts the PRT "on the 
agenda of every bilateral meeting."  Although the MFA will 
lose Laszlo Vizi, who will depart as the MFA's senior 
coordinator on assistance and development for an overseas 
post, Varkonyi noted that Vizi will be replaced by a "very 
senior official" with "35 years' experience in development." 
 
THE MFA AUDITIONS FOR A LEADING ROLE 
 
¶5.  (C) Varkonyi candidly noted "friction" among GoH agencies 
over the PRT but emphasized that he is increasingly 
optimistic.  The MFA already controls one-third of the funds 
allocated for the PRT and is taking the lead in fact if not 
in name.  Other agencies are "willing if not well-staffed or 
well-funded," and he believes "rationale is prevailing: in 
other words, the MFA will be in charge." 
 
¶6.  (C) Varkonyi and his colleagues from the MFA made clear 
that they share our reservations regarding State Secretary 
Gemesi in the Prime Minister's Office, referring to the GoH's 
coordination problems as "less about structure than 
personality."  He added that "this problem is being felt 
everywhere," and commented that "a solution is underway." 
The MFA is already quietly moving an ambitious - and 
expensive - "distance learning" proposal from the PM's Office 
to the back burner, explaining that they will apply for EU 
funding support but see little logic in putting "50% of our 
PRT funding" into the project. 
 
¶7.  (C) Varkonyi also noted that a Hungarian delegation 
including International Center for Democratic Transition 
(ICDT) Director Istvan Gyarmati will be in Afghanistan on 
December 16.  They look forward to their meetings with 
Embassy Kabul and would welcome additional suggestions for 
contacts with IC and Afghan officials. 
 
CUBA: NEW AMBASSADOR; NEW INITIATIVES 
 
BUDAPEST 00002462  002 OF 002 
 
 
 
¶8.  (C) Turning to Cuba, Varkonyi conveyed his sense that the 
GoH's actions to date, particularly FM Goncz's remarks in 
Coral Gables, had gone created Cuban frustration.  He noted 
that a summary of a draft proposal by the International 
Center on Demcratic Transition (ICDT) had found its way to 
the Cuban Ambassador in Budapest, prompting an official 
diplomatic protest and raising the question of "how far and 
how fast" the GoH can move forward without risking their 
access in Cuba. 
 
¶9.  (C) They are using that access now to do "whatever is 
possible," including: 
 
Undertaking visits to the families of political prisoners; 
Working with EU partners to establish an internet cafe in 
Havana; 
Making available literature on Hungary's democratic 
transition; 
Planning a film festival featuring classic Hungarian films 
(including "The Witness," a scathing parody of the communist 
system); and, 
Continuing preparations to host Cuban alumni of student 
exchange programs. 
 
¶10.  (C) Varkonyi also highlighted the GoH's nomination of 
well-known journalist Janos Horvat to be Hungary's new 
Ambassador in Havana.  He emphasized that the activist, 
creative, and media-savvy Horvat would be "very different" 
from the incumbent and commented that "the change is the 
right thing to do," but expressed concern that Horvat will 
confront a long agrement process from the Cuban regime. 
 
¶11.  (C) Finally, Varkonyi indicated that he is considering a 
trip to Mexico and Brazil to discuss other ways to engage in 
international efforts to effect a democratic transition in 
Cuba. 
 
VISA WAIVER PROGRAM: "SO HAPPY WE DON'T WANT ANYTHING TO 
SPOIL IT" 
 
¶12.  (SBU) Varkonyi closed by expressing the GoH's great 
happiness over the President's recent remarks re the Visa 
Waiver Program.  "We are," he remarked, "so happy we don't 
want anything to spoil it."  That's why the GoH is hard at 
work to address President Solyom's technical concers 
regarding the US-EU Passenger Data Sharing Agreement and to 
move forward on formal ratification as quickly as possible. 
 
Minimize Considered. 
 
FOLEY