AMBASSADOR'S INITIAL CALLS ON PRESIDENT, SPEAKER,

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000724 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/CM E.O. 12958: N/A TAGS: PREL EAID ETRD MG SUBJECT: AMBASSADOR'S INITIAL CALLS ON PRESIDENT, SPEAKER, PM CITE EXCELLENT BILATERAL RELATIONALS Sensitive But Unclassified -- Not for Internet distribution. ¶1. (SBU) SUMMARY: In the Ambassador's initial meetings with President Enkhbayar, following presenting his credentials on September 20, State Great Hural Speaker Nyambdorj on September 25, and Prime Minister Enkhbold, the Mongolian leaders stressed good bilateral relations, and pressed for early completion of a Millennium Challenge Account compact as well as a Free Trade Agreement. The discussion of Mongolia's seventh rotation of military forces to Iraq is reported septel. END SUMMARY. PRESIDENT PUSHES MCC COMPACT, FTA, PLANNING SUPPORT -------------- -------------- ¶2. (SBU) The Ambassador arrived at post September 18, and he presented his credentials to President Enkhbayar the afternoon of September 20. During the warm and cordial 30-minute meeting following the credentialing ceremony, the President noted U.S.-Mongolia relations and cooperation were very good. This cooperation could be enhanced by the proposed Comprehensive Partnership Framework Agreement (CPFA). The GOM appreciated the USG's contributions in support of Mongolia's defense reform and peace-keeping capacity building efforts, while this also reinforced Mongolia's independence and its national identity. He reiterated his appreciation for President Bush's November 2005 visit to Mongolia and his acknowledgment of the U.S. as Mongolia's "third neighbor." Economic and commercial ties could also be enhanced through the conclusion of a Free Trade Agreement (FTA) as well as through conclusion of a Millennium Challenge Corporation (MCC) compact. The GOM also welcomed increased educational and cultural exchanges, he said. President Enkhbayar said the GOM was now preparing Mongolia's first-ever national development strategy, which the GOM hopes to have ready early next year. Japan and Korea had offered planning support and the President said he would welcome USG assistance as well.. ¶3. (SBU) The Ambassador agreed relations were excellent and both sides sought to increase and broaden cooperation. He noted the President's remarks at the Non-Aligned Movement conference in Havana the previous week had made strong points regarding North Korea's nuclear policy and its human rights performance. The Ambassador said that U.S. and Mongolia were making progress on improving bilateral commercial ties and had conducted two rounds of talks under the bilateral Trade and Investment Framework Agreement (TIFA),noting a third round of TIFA talks are now planned for early 2007. He observed that both sides are working hard to conclude a MCC compact and that, once concluded, the compact would greatly expand the bilateral relationship. He also thanked the President for accepting his credentials the day after the President's return from overseas. SPEAKER INTERESTED IN MCC, FTA, AND VISAS -------------- ¶4. (SBU) The Ambassador's September 25 call on State Great Hural (parliament) Speaker Nyambdorj covered much of the same ground, with Nyambdorj urging that the MCC compact be completed as soon as possible; ditto FTA, although he also made a case for more visas for Mongolian students, business representatives, and visitors. PM EMPHASIZE COMPREHENSIVE PARNTERSHIP AGREEMENT, MCC, AND FTA -------------- -------------- ¶5. (SBU) Prime Minister Enkhbold, who returned late September 25 from his visit to the UNGA and Washington, met with the Ambassador the afternoon of September 26. The PM congratulated the Ambassador, adding he hoped the Ambassador's expertise in Asian relations would help broaden and deepen U.S. relations with Mongolia. He noted it had been 19 years since the U.S. and Mongolia had established diplomatic relations and he hoped to expand relations under the proposed CPFA as well as through the MCC compact, observing that some Mongolians had become skeptical about U.S. commitment to concluding the MCC compact. The Ambassador replied that both sides had expressed strong political commitment to finish the MCC compact and additional ULAANBAATA 00000724 002 OF 002 efforts were being made to finalize necessary details. The PM noted that he had met President Bush recently during the September 19 roundtable on democracy in New York and U.S. support was evident for Mongolia's emerging market economy and democracy. The PM also expressed the GOM's desire to conclude an FTA, and the Ambassador drew from his recent Korean experience regarding the process and required preparations for such a strenuous, multi-year negotiation, encouraging the GOM to make progress through the TIFA process. GOLDBECK