On September 14, 1987, Israel and Hungary agreed to open interest sections with a maximum of five diplomats in each other's countries. The Hungarian interest section in Tel Aviv was to have been established at the Swedish embassy and the Israeli interest section in Budapest at the Swiss embassy. This low level of diplomatic representation was to facilitate economic, trade, cultural, and humanitarian cooperation between the two countries and to help remove obstacles to consular relations.

In 1988 both Israeli foreign minister Shimon Peres and Israeli prime minister Yitzak Shamir visited Hungary. Hungary designated Shamir's visit as private to avoid offending Arab states. Hungary sought to use both visits to strengthen trade and cultural relations with Israel. Western observers regarded these high-level contacts as another step to the reestablishment of full diplomatic relations.

Data as of September 1989