VZCZCXYZ0000
PP RUEHWEB

DE RUEHUP #0070/01 0171534
ZNY CCCCC ZZH
P 171534Z JAN 07
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 0639
INFO RUEHBUL/AMEMBASSY KABUL 0072
RUEHMD/AMEMBASSY MADRID 0108
RUEHMO/AMEMBASSY MOSCOW 0540
RUEHBS/USEU BRUSSELS
RUEHUB/USINT HAVANA 0006

C O N F I D E N T I A L BUDAPEST 000070 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING 
 
E.O. 12958: DECL: 01/11/2012 
TAGS: PGOV PREL MOPS MARR PHUM KDEM ECON
SUBJECT: MFA ON CUBA, AFGHANISTAN, AND RUSSIAN OIL CUT-OFF 
 
REF: A) BUDAPEST 45 B) 06 BUDAPEST 2452 
 
Classified By: POL/C ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) 
 
¶1.  (C) Summary: Ambassador Foley met with MFA State 
Secretary Varkonyi January 11 to review the state of play on 
 
SIPDIS 
key issues following her return from the EUR Chiefs of 
Mission Conference.  Varkonyi outlined GoH initiatives to 
promote a democratic transition in Cuba, including the 
addition of embassy staff in Havana, emphasizing the GoH's 
commitment to continued activism despite clear signs of 
displeasure from the Cuban regime.  On Afghanistan, he 
described continued interagency friction in coordinating PRT 
efforts but expects the GoH to have additional projects up 
and running by March at the latest.  Turning briefly to the 
recent cut-off of oil from Russia, he expressed "shock" over 
Moscow's action and noted the GoH's recognition that 
"alternate sources are ultimately the only leverage."  End 
Summary. 
 
CUBA: "ON THE JOB" 
 
¶2.  (C) Following discussion of the President's New Way 
Forward in Iraq (ref a), Varkonyi welcomed word of Secretary 
Rice's praise for Hungary during discussion of Cuba at the 
recent EUR Chiefs of Mission Conference.  He indicated that 
FM Goncz would likely be "receptive" to making public remarks 
at the time of Castro's passing, and emphasized that he is 
available "24 hours a day."  He also questioned the 
Ambassador closely to see if our inquiry was driven by "any 
specific intelligence" regarding Castro's condition, but 
accepted our response that the international community should 
be preparing now to act in the post-Castro environment. 
 
¶3.  (C) Given the uncertainty regarding Castro's condition, 
Varkonyi noted that the GoH had decided to postpone 
consideration of a follow-up to the recent Coral Gables 
conference for "4 - 6 weeks."  This period will also allow 
the GoH to gauge Cuban reaction to their agrement request for 
their new Ambassador, which he expected to move forward next 
week.  If Havana does not act in "the normal time frame," it 
will represent another shot across the bow following their 
cancellation of the November meeting of the Hungary-Cuba 
Joint Economic Group and their more recent decision to 
withdraw their Ambassador from Budapest.  Varkonyi added that 
this move had been framed as a "normal rotation," but has 
little doubt that it is another indicator of Havana's concern 
regarding Hungary's activism.  So, he continued, is the 
increased surveillance of the Hungarian Embassy in Havana. 
 
¶4.  (C) Nevertheless, he continued, the Hungarian Embassy 
continues its engagement on the ground, most recently 
donating office equipment (including DVD players) to the 
Cuban opposition.  He advised that the GoH will add another 
officer to its embassy staff in Havana in February, and is 
prepared to send one more this summer.  He expressed 
particular appreciation at the Secretary's recognition that 
"we are on the job." 
 
¶5.  (C) He expressed less satisfaction with the EU's 
position, noting Spain had not demonstrated "the ambition to 
go with its influence."  He expects Cuba to feature 
prominently in the upcoming meeting of the EU's Latin 
American forum. 
 
AFGHANISTAN: FORWARD PROGRESS AND FRUSTRATION 
 
¶6.  (C) Turning to Afghanistan, Varkonyi predicted that the 
MFA will shortly have its development proposals finalized and 
believes that implementation efforts will begin on March 1 
"at the latest."  He underscored that projects in Afghanistan 
will receive two-thirds of Hungary's entire international 
development budget, and noted that the GoH plans to designate 
a "facilitating partner" from the NGO community to supervise 
projects on the ground rather than "trying to supervise 
things from Budapest." 
 
¶7.  (C) Despite this progress, Varkonyi conceded that the 
GoH's inter-governmental committee on Afghanistan is still 
the site of "differing interests and priorities."  The MoD 
tends to see security as the preeminent concern, and the 
Prime Minister's office remains the source of frustration, 
particularly in their resistance to "letting the MFA take on 
the coordinating role."  Varkonyi looked forward to upcoming 
PRT training in Hungary to be provided by USAID and agreed on 
the importance of assembling the right attendees. 
ENERGY SECURITY: MFA AWARE ... BUT NOT RESPONSIBLE 
 
¶8.  (C) Commenting on the brief cut-off of oil supplies from 
Russia and responding to Ambassador Foley's observation that 
diversification of sources represents "the only real 
leverage," Varkonyi agreed that "even a blind man can see 
what Russia has in mind."  He admitted that the GoH was in a 
"state of shock" following the recent cut-off, and remained 
"very serious" about pursuing other sources of energy and 
capitalizing on the EU's growing awareness of the problem. 
He had travelled to Qatar and Libya recently - accompanied by 
officials from the Hungarian Oil Company - and noted that FM 
Goncz would be in the Middle East next month.  He was at 
pains to emphasize, however, that energy policy is not in the 
MFA's purview. 
 
BILATERAL ISSUES: FROM TRAVEL TO TRAFFICKING 
 
¶9. (C) Concluding with a brief review of bilateral issues, 
Varkonyi reviewed upcoming travel including Parliamentary 
Speaker Szili's upcoming trip to the U.S., the NATO 
Ministerial Meeting "pencilled in" on FM Goncz's schedule, 
and trips to the region by EUR and DHS officials.  With 
respect to the Visa Waiver Program, he expressed strong 
reservations re the prospect of hiring a lobbying firm to 
represent the GoH in Washington, underscoring his "faith in 
the President's remarks in Tallinn" and confidence in the 
existing framework.  He noted the upcoming TIP report and 
emphasized Hungary's "ambition to reach the highest 
category." 
 
 
 
 
MINIMIZE CONSIDERED 
FOLEY