RESTRICTED
014364
MDHTAN 9109
THE NEW PARTIES HAD ASKED HIM TO CONTINUE TO PURSUE EXISTING FOREIGN POLICIES. HE UNDERSTOOD THERE WERE SOME CONCERNS OVER ARRANGEMENTS FOR THE FORTHCOMING ROYAL VISIT (COMMENT: IT IS UNCLEAR WHAT HE HAD IN MIND) BUT HE COULD ASSURE US THAT THERE WOULD BE NO PROBLEMS. ON TERRORISM HE SHARED OUR CONCERNS. THERE WAS ALREADY GOOD CO-OPERATION WITH THE US, AUSTRIA, THE FRG AND FRANCE.
HE WAS WILLING TO EXTEND THIS TO THE UK. HE THOUGHT IT POSSIBLE TO REACH AGREEMENT FOR THE UK TO KEEP THE EMBASSY BUILDING FOR A LONG TIME. AMBASSADOR GYORKE INTERJECTED THAT RECIPROCITY WAS IMPORTANT. THERE WAS INTEREST IN A HUNGARIAN CULTURAL CENTRE IN LONDON. ON THE BRITISH CULTURAL CENTRE, HORN NOTED THAT PAST RESTRICTIONS HAD BEEN ABOLISHED. ALFOLDLY (MFA) COMMENTED THAT CERTAIN CHANGES HAD TO BE MADE TO THE BILATERAL CULTURAL AGREEMENT. THEREAFTER THERE WERE NO OBSTACLES TO ACQUIRING THE BUILDING IN QUESTION.
5. TURNING TO SPECIFIC HUNGARIAN CONCERNS, HORN ASKED THE BRITISH GOVERNMENT TO GIVE INCENTIVES TO UK COMPANIES TO OPERATE IN HUNGARY AND TO URGE BRITISH BANKS TO BE MORE ACTIVE. HE SOUGHT SUPPORT FOR CONCLUDING AN IMF STAND-BY ARRANGEMENT IN EARLY MARCH. THIS WAS NOT BECAUSE OF ELECTORAL CONSIDERATIONS BUT BECAUSE ECONOMIC PROBLEMS REQUIRED URGENT SOLUTIONS. ON COCOM HE DETECTED NO REAL PROGRESS, DESPITE HUNGARIAN WILLINGNESS TO GIVE NON- TRANSFERENCE GUARANTEES TO THE US. HEREFERRED TO OBSTACLES TOP HUNGARIANS TRAVELLING TO HONG KONG AND TO THE PROPOSED OPENING OF A REPRESENTATIONAL OFFICE THERE. HE EXPRESSED APPRECIATION FOR UK SUPPORT FOR THE NEW INTERNATIONAL PETO INSTITUTE : ISRAEL HAD NOW GIVEN ONE MILLION DOLLARS AND OTHERS WOULD FOLLOW. HE REGRETTED NO PROGRESS HAD BEEN MADE ON VISAS. YET ITALY HAD RECENTLY ABOLISHED THEM AND THE FRG WOULD FOLLOW SHORTLY.
6.
THE SECRETARY OF STATE SAID THAT BRITISH BUSINESSES WOULD MAKE THEIR OWN DECISIONS ON PARTICIPATION IN THE HUNGARIAN ECONOMY BUT HE USED EVERY OPPORTUNITY TO DRAW THEIR ATTENTION TO THE MANY POSSIBILITIES FOR INVESTMENT HERE. WE WERE FOLLOWING THE IMF NEGOTIATIONS CLOSELY. IN COCOM, DISCUSSIONS MOVED SLOWLY BUT CERTAIN CONTROLS HAD ALREADY BEEN REVISED, PROCESSING OF APPLICATIONS WAS FASTER AND ASSURANCES OF NON-TRANSFERENCE WERE BEING CON- SIDERED. ON HONG KONG, VISA POLICY FOR EAST EUROPEAN BUSINESSMEN HAD ALREADY BEEN RELAXED. IN THE LONGER TERM A TRADE OFFICE MIGHT BE POSSIBLE. WE WOULD PASS HUNGARIAN CONCERNS TO THE HONG KONG GOVERNMENT. THE SECRETARY OF STATE PRAISED THE WORK OF THE PETO INSTITUTE AND HOPED TO VISIT ON A FUTURE OCCASION. UK VISA POLICY
PAGE 2 RESTRICTED
No comments yet.
Private notes are available after approval.