Foreign Relations of the United States, 1981–1988, Volume X, Eastern Europe

331. Telegram From the Department of State to the Embassy in Hungary¹

96007.

Washington, April 1, 1987, 0522Z

SUBJECT

• Vice President Bush Meets With Hungarian Party Secretary Szuros.

1. C—Entire text.

2. Summary: In his meeting with the Vice President 03/26, Hungarian Party Secretary Szuros emphasized his country’s strong interest in improving economic relations with the United States, particularly acquisition of new U.S. investments and increased trade. He stressed General Secretary Kadar’s satisfaction with the overall state of U.S./Hungarian relations. The Vice President said we hoped to increase trade in high-tech areas such as aircraft consistent with our national security controls. We also wanted increased cooperation in combatting terrorism, narcotics control and education exchanges. He encouraged Szuros to promote Hungary’s continued political liberalizaion which he said was essential for improvement of the overall relationship. End summary.

3. Hungarian Party Secretary for Foreign Affairs Matyas Szuros called on the Vice President 3/26 to review United States/Hungarian relations. Szuros was accompanied by Hungarian Ambassador Hazi. Vice Presidential Assistant Donald Gregg and EUR/EEY Acting Director Perito also participated. Following are highlights of the conversation.

4. Szuros began by stating that General Secretary Kadar warmly recalled the Vice President’s visit to Budapest.² He said Kadar’s personal message to the Vice President was that Hungary was working hard to improve our bilateral relationship and the Vice President’s visit to Budapest had been important in this effort. He said Kadar had asked him to tell the Vice President he was prepared to forget about the Vice President’s speech in Vienna.³ The Vice President responded that his concern about the speech was it may have placed Kadar in a difficult position.

5. Szuros said Hungary wanted to increase its economic cooperation with the United States, particularly in the areas of U.S. investment, participation in joint ventures and trade. Szuros said he had given high priority to meetings with U.S. businessmen and had discovered a growing interest in Hungary which, he said, pleased him very much. He said Kadar hoped the Vice President would help promote U.S. commercial interest in Hungary.

6. The Vice President replied that the United States was interested in selling civil aircraft to Hungary but such sales had to be consistent with our national security controls. He noted there is currently a debate within the U.S. administration on export licensing but expressed the view that sensitive technologies with military application would continue to be subject to restrictions. However, we would be willing to discuss such issues in a frank manner with the Hungarians.

7. Turning to other aspects of the relationship, the Vice President said we were interested in promoting educational exchanges with Hungary and improving cooperation on counter-terrorism and narcotics control. Further, the Vice President urged Szuros to promote political liberalization in Hungary which he said was necessary for continued improvement in our overall relationship.

8. In response, Szuros said Hungary was prepared to cooperate with the United States in suppressing terrorism, noting our joint response to the attempted assassination of the Colombian Ambassador in Budapest.⁴ Among socialist countries, Szuros said, Hungary was most active in cooperating with the United States.

9. Responding to the Vice President’s question, Szuros said Hungary was pushing ahead with new economic reforms which were supported by Kadar and the entire government leadership. The biggest problems facing Hungary now were depressed international markets for Hungary’s primary exports, adverse weather conditions and industrial inefficiency. He said Hungary hoped for greater political liberalization but regrettably there had been some setbacks.

10. In closing, Szuros said Kadar asked him to express his support for a U.S./Soviet INF agreement. The Vice President said it appeared prospects were improved since the Soviets also seem to desire such a pact.

Shultz

1. Source: Department of State, Central Foreign Policy File, D870250–0422. Confidential; Priority. Sent Priority for information to Munich. Drafted by Robert Perito (EUR/EEY); cleared by Donald Gregg (OVP), Pascoe, Terry Snell (EUR/EEY), and Richard Boucher (S/S–O); approved by Simons.
2. See Documents 322 and 323.
3. See Document 21.
4. Not found.