VZCZCXRO6840
RR RUEHIK
DE RUEHUP #0792/01 3070603
ZNR UUUUU ZZH
R 030603Z NOV 09
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC 4620
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RHFJUSC/HQS US CUSTOMS SERVICE WASHINGTON DC

UNCLAS SECTION 01 OF 04 BUDAPEST 000792 
 
SIPDIS 
 
EU/CE FOR JMORE, INL FOR JLYLE 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM PREL PGOV HU
SUBJECT: HUNGARY INCSR PART I 
 
REF: STATE 097228 
 
BUDAPEST 00000792  001.2 OF 004 
 
¶1. (U) Summary:  Hungary continues to be a primary narcotics transit 
country between Southwest Asia and Western Europe due to its 
combination of geographic location, a modern transportation system, 
and the unsettled political and social climate in the neighboring 
countries of the former Yugoslavia.  Since the collapse of communism 
in Europe, Hungary has become a significant consumer of narcotics as 
well.  Drug abuse, particularly among persons under 40 years of age, 
rose dramatically during the nineties.  Recent trends suggest that 
drug abuse is now hitting a plateau, but experimentation with drugs 
is beginning at an earlier age.  Marijuana is the most popular 
illicit drug in Hungary, followed by Ecstasy (MDMA) and 
amphetamines, LSD and other hallucinogens, cocaine, and finally 
heroin.  In the lead up to its accession to the European Union in 
May 2004, Hungary adopted and amended much of its narcotics-related 
legislation to ensure harmonization with relevant EU narcotics law. 
Since 1999, the Ministry of Social Affairs and Labor has been the 
lead ministry in all matters related to narcotics issues.  Hungary 
continues to expand the collection and reporting efforts of its 
National Focal Point (NFP).  The NFP was established in February 
2004 to report valid, comparable and reliable data on drug abuse 
trends to the European Monitoring Center for Drugs and Drug 
Addiction.  Hungary met Schengen Standards for border control and 
joined the Schengen area on December 21, 2007.  Hungary is a party 
to the 1988 UN Drug Convention.  End summary. 
¶2. (U) Status of Country:  Hungary continues to be a primary transit 
route for illegal narcotic smuggling from Southwest Asia and the 
Balkans into Western Europe.  It is also a primary transit route for 
narcotics from Western Europe into the Balkans.  According to the 
Hungarian National Bureau of Investigation (NBI), foreign organized 
crime, particularly Albanian, Turkish, Serbian, and Kosovar, 
controls the transit and sale of narcotics in Hungary.  Domestic 
cultivation of drugs is relatively limited, but Hungarian law 
enforcement agencies note the recent increase of Vietnamese groups 
involved in sophisticated indoor cannabis cultivation.  Officials 
report that cocaine, which just a few years ago was considered a VIP 
drug, is becoming increasingly popular as its street price declines. 
 The new national drug strategy for 2010-2018 is expected to have 
legislative approval by the end of 2009. 
COUNTRY ACTIONS AGAINST DRUGS IN 2009 
¶3. (U) Policy Initiatives:  The Hungarian government developed its 
new national drug strategy for 2010-2018 this year.  Ministry 
officials expect the cabinet to present the final proposal to 
Parliament in October 2009, with legislative approval by the end of 
the year.  According to the Directorate for the National 
Co-ordination of Drug Affairs, the new strategy contains no major 
changes from the current strategy and is fully in line with the 
European Union's drug strategy.  It is based on prevention, 
treatment, and supply reduction.  The Drug Prevention Coordination 
Committee, created in 1998, facilitates the implementation of the 
country's national counter-narcotics strategy and coordinates among 
different ministries and national authorities to combat drug abuse. 
It is co-chaired by the Minister of Health and the Minister of 
Social Affairs and Labor.  The Hungarian National Focal Point, which 
was established in 2004, is charged with the compilation of an 
annual report of data for the European Monitoring Center for Drugs 
and Drug Addiction.  The National Drug Prevention Institute (NDPI) 
was set up in 2000 to provide technical and financial support for 
drug action teams in cities with populations over 20,000.  The NDPI 
encourages the creation of local fora composed of officials of local 
government institutions, law enforcement agencies, schools and 
non-governmental organizations to create local drug strategies 
customized for local needs. 
 
¶4. (U) In July 2009, the Institute for Forensic Sciences, with the 
support of the Directorate for the National Co-ordination of Drug 
Affairs, launched a new project to enhance the monitoring of active 
substances in critical drugs.  The goal of the project was to 
monitor the purity divergence of illegal substances most likely to 
cause drug death through overdose.  When rare or dangerous 
components are detected in samples, The Institute of Forensic 
Sciences forwards this information to the National Focal Point and 
other relevant organizations.  As an early warning system, the 
Ministry of Social Affairs and Labor considers the project 
successful in reducing overdose deaths. 
¶5. (U) Hungary continued to maintain strong regional expert 
relations with neighboring countries, including Croatia and Romania. 
 The countries collaborated on initiatives including regular study 
visits and expert conferences to facilitate information exchange in 
the drug policy field.   In cooperation with the Netherlands, 
Hungary also assisted Serbia, Montenegro, and Macedonia in preparing 
national drug strategies as part of their European Union 
pre-accession process.  Within the framework of the Central Dublin 
Group, Hungary was co-chair of the Balkans Regional Group with 
Austria in 2009 and will continue to co-chair the regional group in 
¶2010.  In its role as co-chair, Hungary helps to assess the 
situation in the Balkans and develop its regional contacts. 
¶6. (U) Law Enforcement Efforts: Hungary met Schengen standards for 
border control at the end of December 2007, and joined the Schengen 
 
BUDAPEST 00000792  002.2 OF 004 
 
 
area.  The Hungarian Border Guards were merged with the Hungarian 
National Police (HNP) and greater cooperation, information sharing, 
and efficiency in border interdiction was reported.  Accession to 
the European Union (EU) provided Hungarian border guards and 
national police forces with greater access to modern electronic 
detection equipment provided by the European Union to certain 
high-threat border posts.  This equipment was initially installed in 
2003, and has continued to result in improved border interdiction of 
all types of contraband.  Expanded investigative authorities and 
cooperation between the Hungarian border guards and the Hungarian 
national police, coupled with investigative agreements with 
neighboring countries, have also played a significant role in 
increasing Hungary's ability to interdict shipments of narcotics. 
Despite these successes, Hungary continues to be a significant 
trans-shipment point for narcotics destined for, and sent from, 
Western Europe.  The Hungarian Ministry of Finance and the national 
headquarters of the Customs and Finance Guard supported 
anti-narcotics and anti-smuggling activities as well.  These groups 
jointly planned and staged actions related to crime and border 
security that were specifically designed to prevent drug trafficking 
and a wide range of illicit transit and smuggling activities. 
¶7. (U) According to the National Focal Point (NFP), in 2008 there 
were 5,459 drug-related criminal proceedings in Hungary, a 17% 
increase over 2007.  This breaks a two-year trend of declining 
drug-related criminal proceedings, from a high of 7,616 in 2005 to a 
five-year low of 4,667 in 2007.  83.4% of illicit drug offenses 
involved demand-related activities, most often personal use. 
Supply-related criminal offenses (offering, supplying, distributing, 
trafficking, etc.) were 16.14% of all offenses.  Based on the 2008 
criminal offense data, the NFP concludes that drug-related criminal 
offenses are now less influenced by previous changes in the legal 
environment. 
¶8. (U) The National Bureau of Investigation (NBI) notes that 
drug-related law enforcement activities used to be primarily focused 
on Budapest, where the drug problem was fairly contained.  In recent 
years, however, law enforcement officials observe that drug abuse 
and drug-related criminal offenses have spread to other large cities 
around Hungary.  Many observers inside and outside of the government 
have cited insufficient asset forfeiture laws as a main stumbling 
block in disrupting criminal organizations involved in the drug 
trade. 
¶9. (U) The cooperation between the HNP and the U.S. Drug Enforcement 
Administration (DEA) Office in Vienna, Austria, has improved 
dramatically within the past year, with DEA describing the current 
relationship as "outstanding."   DEA and the National Bureau of 
Investigation share information and coordinate joint international 
money laundering and drug trafficking operations. 
 
 
¶10. (U) Corruption: As a matter of government policy, Hungary does 
not encourage or facilitate the illicit production or distribution 
of drugs or substances, or the laundering of proceeds from illegal 
drug transactions.  The Hungarian Government aggressively enforces 
its narcotics-related laws.  In addition, it takes administrative 
steps (e.g., the regular re-posting of border guards) to reduce the 
temptation for corruption whenever it can.  It is difficult, 
however, to assess accurately the scope and success of Hungarian 
efforts to combat corruption, as the GOH treats corruption-related 
information and prosecutions as classified national security 
information. 
¶11. (U) Agreements and Treaties: Hungary is party to the 1961 UN 
Single Convention, as amended by the 1972 Protocol, the 1971 UN 
Convention on Psychotropic Substances, and the 1988 UN Drug 
Convention.  A mutual legal assistance and an extradition treaty 
between the U.S. and Hungarian Governments have been in force since 
¶1997.  These agreements have paved the way for closer cooperation 
between U.S. and Hungarian law enforcement agencies.  In addition, 
in December 2006 the Hungarian National Assembly ratified the UN 
Convention against Transnational Organized Crime and its protocols 
against trafficking in persons and migrant smuggling.  The United 
States and Hungary also have a bi-lateral extradition treaty in 
effect.  Hungary is a party to the UN Corruption Convention. 
 
¶12. (U) Cultivation/Production: The National Bureau of Investigation 
(NBI) reports that marijuana is the only illicit drug domestically 
cultivated in Hungary.  In the past year, Hungarian authorities have 
reported an increase in more sophisticated marijuana cultivation, 
primarily by Vietnamese groups.  In the recent past, domestic 
marijuana cultivation was limited to relatively small-scale and 
unsophisticated operations.  Current trends indicate that organized 
groups are now purchasing entire buildings for larger-scale, indoor 
production centers.  These groups have access to expensive 
technology which professionalizes the cultivation process and 
increases output. According to Hungarian authorities, these groups 
are involved in both the cultivation and distribution of marijuana, 
essentially controlling the entire supply chain.  They have also 
attempted to forge closer ties with Turkish groups involved in 
heroin trafficking.  The NBI reports that there are virtually no 
synthetic laboratories operating in Hungary. 
 
BUDAPEST 00000792  003.2 OF 004 
 
 
¶13. (U) Drug Flow/Transit: Hungary is a narcotics importer country 
as well a transit route between countries.   Narcotics enter the 
country via routes frequently controlled by criminal groups. 
According to The National Bureau of Investigation (NBI), synthetic 
drugs come primarily from the Netherlands.  Organic drugs, such as 
heroin and cocaine, follow different routes.  Heroin generally comes 
from Turkey and passes through Hungary on its way to Western Europe. 
 The NBI reports that Albanian, Turkish, Serbian, and Kosovar groups 
are involved in the trafficking of heroin through Hungary.  The NBI 
also reports that they are noticing a recent change in the 
trafficking of cocaine.  Cocaine, which used to enter Hungary 
primarily from the Netherlands, now arrives directly from Spain, 
presumably from sources in Central and South America. 
¶14. (U) According to local authorities, the majority of illicit drug 
flow into Hungary crosses the country's land borders, often from 
Austria and Slovakia.  Narcotics are also smuggled into Hungary 
through Budapest's Ferihegy International Airport.  The NBI reports 
that five years ago they were seizing larger shipments of narcotics, 
sometimes around 200 kilograms a shipment.  They have noticed a 
recent change in which organized crime is moving smaller, but more 
frequent, quantities of narcotics across borders. 
¶15. (U) Synthetic drugs have distinct transit patterns. Ketamine, 
which is a popular anesthetic in veterinary medicine but is also 
used as a recreational drug, primarily enters Hungary from Slovakia. 
 Gamma Hydroxybutyrate (GHB) and Gamma Butyrolactone (GBL), on the 
other hand, generally arrive from sources in Western Europe. 
Narcotics precursors, such as acetic acid anhydride, pass through 
Hungary from the Czech Republic and Slovakia on their way to Serbia 
and other Balkan countries.  Hungarian authorities report that 
Serbian organized crime is involved in this trade. 
¶16. (U) Domestic Programs/Demand Reduction: Hungarian ministry 
officials report the drug abuse is significantly higher among youth 
between the ages of 12-25 and truly addicted drug abusers are more 
commonly found in the 25-34 age group.  The majority of addicted 
drug abusers are male, with an average age of 25 years, and use 
amphetamines, heroin, or Ecstasy. 
¶17. (U) Much of the drug prevention outreach in Hungarian schools is 
subcontracted to NGOs and other organizations.  According to the 
Hungarian National Focal Point (NFP), in 2008 the Ministry of Social 
Affairs and Labour and the Ministry of Education and Culture jointly 
issued tender invitations for school-based health promotion and drug 
prevention programs in the amount of HUF 170 million (USD 925,000). 
As a result of this funding, 30,090 primary school students (aged 
10-14) and 54,860 secondary school students (aged 14-18) 
participated in drug prevention programs.  In addition to 
school-based drug prevention programs, Hungarian authorities have 
identified 162 service providers of out-of-school drug prevention 
programs. The Ministry of Education and Culture also granted HUF 5 
million (USD 27,000) to support drug prevention training courses for 
teachers.  In one particular course dealing with addictive 
substances, nearly 100 teachers participated. 
¶18. (U) Public schools in Hungary include several drug prevention 
and health promotion programs in their normal education program. 
The life skills program is the largest of the counter-narcotics 
programs and was developed in the early nineties with INL assistance 
through USIA.  Through 2005, the fifteen year program has trained 
nearly 12,000 teachers and educators.  Community-based prevention 
efforts are primarily focused on the teen/twenties age group and 
provide information about the dangers of substance abuse while 
emphasizing active and productive lifestyles as a way of limiting 
exposure to drugs. 
¶19. (U) According to the Ministry of Health and the NFP, the total 
number of users receiving both inpatient and outpatient treatment 
during 2008 was 14,353, a 6.7% increase from 2007.  Local 
authorities in Hungary are implementing harm reduction programs to 
counter the societal impact of drug abuse.  According to the NFP, in 
2008 there were eighteen service providers operating needle/syringe 
programs (NSPs) in Hungary, with four of them located in Budapest 
and fourteen of them located outside of Budapest.  In 2008 new NSPs 
were launched in three towns (Salgstarjn, Kaposvr and Oroshza), 
improving the needle/syringe program coverage of the regions outside 
of Budapest.  In 2008 both the number of distributed and returned 
syringes increased significantly outside of Budapest.  Since 2007 
buprenorphine-naloxone has been a possible substitution treatment in 
Hungary.  Since October 2008 a daily dose of 8 mg of 
buprenorphine-naloxone has been financed by the social insurance 
fund.  Methadone treatment is still the preferred substitution 
treatment in Hungary, but buprenorphine-naloxone is being used more 
and more frequently. 
¶20. (U) The 2003 amendment to Hungarian counter-narcotics 
legislation was designed to shift the focus of criminal 
investigations from consumers to dealers.  Before this amendment was 
enacted, Hungarian civil rights advocates claimed that the Hungarian 
narcotics law, among the toughest on users in Europe, subjected even 
casual users to stiff criminal penalties, while addicts were often 
exempted from prosecution.  The 2003 amendment called the "diversion 
program" allowed police, prosecutors, and judges to place drug users 
in a six-month government-funded treatment program or mandate 
participation in a counseling program instead of prison.  Drug 
 
BUDAPEST 00000792  004.2 OF 004 
 
 
addicts are encouraged to attend treatment centers while casual 
users are directed to prevention and education programs.  The 
amendment also provided judges with more alternatives and 
flexibility when sentencing drug users.  According to Ministry of 
Health data, 2,660 drug users participated in diversion programs in 
¶2008.  This marks the second straight year in which the number of 
drug users participating in diversion programs has decreased. 
¶21. (U) There is some debate about the success of the diversion 
program in Hungary.  Some political groups, in particular, talk 
about a return to tougher penalties for drug use. Within the 
government, however, there is agreement that diversion, while not 
perfect, has helped to further the legal distinction between drug 
users and drug suppliers.  It is also seen by many as a success 
simply by providing many drug users with an alternative to criminal 
procedures. 
U.S. POLICY INTITIATIVES AND PROGRAMS 
¶22. (U) Bilateral Cooperation: The primary USG focus in support of 
the GOH counter-narcotics efforts is through training and 
cooperative education at the International Law Enforcement Academy 
(ILEA).  In addition, the DEA maintains a regional office in Vienna, 
Austria, that is accredited to Hungary to work with local and 
national Hungarian authorities.  DEA and the Hungarian National 
Bureau of Investigation (NBI) share information and coordinate joint 
international money laundering and drug trafficking operations.  A 
joint FBI/NBI task force identifies, investigates, and 
disrupts/dismantles criminal organizations in Hungary and the 
surrounding region. 
 
¶23. (U) Road Ahead: The USG continues to support and encourage 
Hungarian efforts regarding drug prevention, treatment, and supply 
reduction.  The USG also continues to support GOH law enforcement 
efforts through training programs and seminars at the ILEA as well 
as through specialized in-country programs. 
 
LEVINE