VZCZCXRO6322
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #0107 0311615
ZNY CCCCC ZZH
P 311615Z JAN 08
FM AMEMBASSY BUDAPEST
TO RUEHKB/AMEMBASSY BAKU PRIORITY 0114
RUEHBW/AMEMBASSY BELGRADE PRIORITY 1113
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0623
RUEHPS/USOFFICE PRISTINA PRIORITY 0751
RUEHC/SECSTATE WASHDC PRIORITY 2437
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L BUDAPEST 000107 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR EUR DAS BRYZA, EUR/NCE, EUR/SCE, AND 
EUR/RUS; PLEASE PASS TO NSC FOR ADAM STERLING 
 
E.O. 12958: DECL: 01/31/2013 
TAGS: PREL RU AZ ECON ENRG HU
SUBJECT: PM'S FOREIGN POLICY ADVISOR ON KOSOVO, AZERBAIJAN 
 
REF: STATE 9670 
 
Classified By: A/DCM ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) 
 
¶1.  (SBU) Prime Minister Gyurcsany's Foreign and Security 
Policy Advisor, Ambassador Karoly Banai, updated Ambassador 
Foley on Hungary's policy re Kosovo and Azerbaijan in a 
meeting January 31. 
 
KOSOVO: MAKING IT CLEAR TO MOSCOW 
 
¶2.  (C) Banai noted that PM Gyurcsany had called in the 
Russian Ambassador January 30 to make clear the GoH's 
position on Kosovo, conveying to him that: 
 
Hungary regards regional stability as being of paramount 
importance; 
Hungary believes regional stability can be maintained and 
will be advanced by Kosovo independence; and, 
Hungary will recognize Kosovo. 
 
Banai added that Hungary continues to look for an "EU 
platform" that will enable it to move as "neither the first 
nor the last" of a large initial wave.  He added that Hungary 
would be pleased to participate in an international steering 
group, but would want to do "whatever it could" in such a way 
as to make clear that it is not "anti-Serbian" given its 
"neighborhood concerns." 
 
¶3.  (C) Banai reported that the Russian Ambassador had 
conveyed Moscow's "differing view," specifically its 
"difficulty accepting" arguments in favor of Kosovo's 
independence.  He commented that Moscow will not recognize 
Kosovo and will not "go along" with its presence in the UNSC. 
 Banai concluded that the meeting had been important to 
"resolve any ambiguity regarding Hungary's position."  (Note: 
The Russian Ambassador here is still best known for his 
outburst at an opposition party event last year, when he 
pointed his finger at a party official and used the Communist 
phrase "do we understand each other?" in an attempt to 
silence his criticisms of Russian policy.  End Note.) 
 
AZERBAIJAN: ALIYEV ON THE WAY 
 
¶4.  (C) Banai noted that PM Gyurcsany had spoken with Azeri 
President Aliyev on the margins of the WEF in Davos, with 
discussion focusing on improving cooperation between MOL and 
SOCAR.  They had also agreed that Aliyev will visit Budapest 
February 18 ) 19 in order to discuss energy cooperation and 
other issues including increased Azeri student exchanges to 
Hungary.  Banai added that the government might also organize 
a business forum on the margins to promote deeper commercial 
ties, citing the "highly irregular" step of two meetings in 
quick succession as proof of Hungary's interest in Azerbaijan 
as a "major supplier for Nabucco." 
 
¶5.  (C) Banai advised that the government has encouraged MOL 
Chairman Hernady to sign an MOU with SOCAR "as quickly as 
possible."  Although Aliyev had indicated that a MOL 
concession is unlikely given the presence of larger 
international companies on the ground, he was receptive to 
both MOL investment in Azerbaijan and to a potential SOCAR 
office in Budapest to help improve its connectivity to 
Europe.  Ambassador Foley took advantage of the discussion to 
provide reftel points regarding increased Azeri capacity, 
congratulating the GoH on its proactive steps toward "a wise 
investment." 
 
¶6.  (C) Comment: Hungary's proactive steps to make clear its 
Kosovo policy and to improve ties with Baku are welcome signs 
that the government is not wholly consumed with its domestic 
political straits.  We will remain in close touch with GoH 
officials, encouraging them to use the upcoming Aliyev visit 
to move negotiations forward for a major supply contract with 
Azerbaijan as a means to increase their political and 
economic investment in Nabucco.  DAS Bryza's visit will be a 
key element of our efforts.  End Comment. 
 
FOLEY