MONGOLIAN PRESIDENT VISITS KUWAIT

C O N F I D E N T I A L KUWAIT 001692 SIPDIS SIPDIS DEPT FOR NEA/ARP E.O. 12958: DECL: 11/28/2017 TAGS: PREL EINV ECIN EPET KU SUBJECT: MONGOLIAN PRESIDENT VISITS KUWAIT Classified By: CDA MISENHEIMER FOR REASONS 1.4 (B) AND (D) ¶1. (U) On November 26th, Mongolian President Nambaryn Enkhbayar arrived in Kuwait for a four-day official visit at the invitation of Kuwait,s Amir, Shaykh Sabah Al-Ahmed Al Sabah. The stated objective of the visit was to strengthen the bilateral relationship between Kuwait and Mongolia, specifically in the economic and cultural spheres. Newspaper reports state that President Enkhbayar recently signed a memorandum of understanding (MOU) to increase cooperation between the Kuwait Petroleum Corporation (KPC) and the Mineral Resources and Petroleum Authority of Mongolia (MRPAM). Furthermore, the two countries agreed to expand their cooperation in other fields such as agriculture, the environment, education, communication, science and technology. The GOK also agreed to provide financial assistance for the construction of a new Parliamentary Palace in Mongolia, as well as a grant to build a public library in Ulaanbaatar. Lastly, Kuwait and Mongolia have agreed to launch a joint institute for scientific research in Mongolia. ¶2. (U) President Enkhbayar,s visit reciprocates the Kuwaiti Amir,s visit to Mongolia in July 2007. The Mongolian Prime Minister also visited Kuwait in November 2006 for meetings with Kuwaiti FM Shaykh Dr. Mohammed Sabah Al-Salem Al Sabah. The Amir has publicly stated in the past that he intends to transform Kuwait into a major trade and financial center. Shaykh Nasser Sabah Al-Ahmed Al Sabah, the Amir,s son and the Minister for Amiri Diwan Affairs, has been active in cultivating international relationships in an effort to diversify Kuwait,s economic foundations. ¶3. (C) On November 28, Poloff met with Ministry of Foreign Affairs Asia Director Rashed Al-Hajeri, who was personally present at the Amir,s meeting with President Enkhbayar in Mongolia earlier this year, and at the MOU negotiations in Kuwait this week. He noted that Kuwait intends to improve economic relations with Mongolia and provide a boost to its economy through direct investment and bilateral cooperation. When queried why Kuwait was keen on developing its relationship with a relatively underdeveloped country, Al-Hajeri said that economic ties between the two countries have a substantial history dating back to the time of the Silk Road. He noted that Kuwait had approached other Central Asian nations in the past, but that instability in the region had caused the GOK to postpone its plans for economic investment in the region. He also pointed out that Islamic culture had spread among the countries of the Silk Road in the past, and that this shared heritage facilitated greater cooperation among the their countries now. ¶4. (SBU) COMMENT: While Mongolia may appear to be a curious choice for a trading partner, Kuwait is clearly lagging behind its GCC neighbors in diversifying its domestic economy, and it is seeking to diversify its international trade and seek new destinations for foreign direct investment. According to Al-Hajeri, Kuwait has attempted to cultivate economic partnerships with other Central Asian nations, but has put these initiatives on hold temporarily until the political situation in those countries stabilizes. END COMMENT. ********************************************* * For more reporting from Embassy Kuwait, visit: http://www.state.sgov.gov/p/nea/kuwait/?cable s Visit Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ********************************************* * LENDERKING