ON A FALCON'S WING: THE EMIR OF KUWAIT VISITS MONGOLIA

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000454 SIPDIS SENSITIVE SIPDIS STATE PASS TO EAP/CM, NEA/ARP, AND CA/OCS STATE PASS USAID FOR ANE FOR D. WINSTON DOC FOR ITA AND ZHEN GONG CROSS TREASURY FOR TT YANG BANGKOK AND MANILA FOR AID LONDON AND MANILA FOR USEDS TO EBRD, ADB E.O. 12958: N/A TAGS: EAID PREL EINV ECON PGOV MG KU SUBJECT: ON A FALCON'S WING: THE EMIR OF KUWAIT VISITS MONGOLIA SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) SUMMARY. The Emir of Kuwait met with senior Mongolian officials regarding trade, cultural, and security affairs, before taking a vacation in the Mongolian countryside. Although the Mongolian-Kuwait bilateral trade relationship remains minuscule, mostly trade in falcons, Kuwait has provided or committed to provide nearly US$30 million in aid to Mongolia in the form of grants and soft loans for infrastructure and construction projects. END SUMMARY. Emir's Official and Ceremonial Meetings -------------- ¶2. (SBU) The Emir of Kuwait, Sheikh Al-Ahmad Al-Jabar Al-Sabah, paid a state visit to Mongolia on July 30, 2007, before taking off for short holiday in the Mongolian country-side from July 31 thru August ¶3. The Emir held a day's worth of meetings with the Ministers of Trade and Industry, Foreign Affairs, and Finance, as well as Mongolian President N. Enkhbayar. After these meetings, the Emir laid a wreath at the base of Mongolia's revolutionary hero, Sukhbaatar, and paid his respects at the recently completed monument to Chinggis Khaan and his family. (Note: In 1258, Chinggis Khaan's grandson, Khulagu Khan, obliterated the Abbasid Caliphate and leveled Baghdad, ending the Islamic Golden Age.) ¶3. (SBU) Mongolian news reports and our official contacts did not report on the Emir's countryside progress. However, an Israeli distributor of Speed-Queen washers and dryers reported to Commoff that her firm had been contracted to provide industrial size laundry equipment for the washing needs of the Emir and his entourage, who had commissioned a series of palatial gers (felt tents or yurts, in Russian) for the Emir's visit. Mongolia With Kuwait Against Iraq; Bond of Falcons -------------- -------------- ¶4. (SBU) Mongolia and Kuwait established diplomatic relations in 1975 but relations remained inert until 1990. Two factors caused an up-tick. First, Mongolia lent "moral" support to Kuwait during the Iraqi invasion, raising Mongolia's profile before the Kuwaitis. Second, by the early 1990's Mongolia had become (and remains) a prime source of hunting falcons for Kuwait and other Gulf States. (Note: The current export price for a Mongolian falcon, a GOM-run monopoly, hovers around US$7,000, with some 40-50 birds being exported each year.) Agreements Signed But Details Thin -------------- ¶5. (SBU) During the July 30 sessions, Kuwait and Mongolia signed agreements to facilitate intergovernmental relations, agriculture, trade, culture, education, and technology. However, details on what sort of trade, cultural, and technology would be included in these agreements are thin on the ground. (Comment: The actual level of trade between Mongolia and Kuwait remains extremely small - perhaps no more than US$350,000 for the falcons; and so, for all the talk of trade, neither the Kuwaitis nor the Mongolians could nor would provide much detail on what sort of items, beyond falcons, would become mainstays of a robust trade relationship. Mongolia has sought to export halal meats processed by its western Muslim Kazakh minority but has yet to overcome transportation and refrigeration/sanitation requirements.) Of Trade and Aid -------------- ¶6. (SBU) Although trade volumes remain low, Kuwait has provided both ULAANBAATA 00000454 002 OF 002 soft loans and grants to the GOM. Loans of approximately US$20 million have covered the cost of a hydroelectric plant in western Mongolia and for new paved roads in central Mongolia. To our knowledge, the Kuwaitis funded these projects without conducting much due diligence into the actual need for them; rather they simply responded to GOM requests. In addition to the loans, Kuwait has granted the GOM US$12 million to for a new building to house Mongolia's Parliament. (Note: Before the Emir's visit, Mongolian officials, according to several press reports, had begun to opine that the US$12 million was insufficient to build a new parliament; and so, reportedly seem to have struck some deal with the Government of Turkey to fund the rest of the construction.) ¶7. (SBU) In addition, Kuwait and Mongolia agreed to deepen cooperation between the two nations within United Nations frameworks and those of other international organizations, especially those committed to enhancing security in the Asia Pacific region. Kuwait also offered to provide support for a falcon breeding program and for assisting Mongolia to combat such natural disasters as severe winters and drought. (Note: One wag wondered if Mongolia would be in a better position to advise Kuwait on severe winters, but agreed that Kuwait certainly cornered the market on droughts.) Minton