MONGOLIAN GOVT SEEKS UPDATES ON PENDING BILATERAL

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000459

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/CM
STATE PASS USTR FOR STRATFORD AND WINELAND
STATE PASS EXIM, OPIC, AND TDA
NSC FOR HANLE
MCC FOR REID, HALLMARK, AND STORCH
USDOC FOR ZHENGONG CROSS
USDA FOR NICOLA SAKHLEH

E.O. 12958: N/A
TAGS: PREL EAID PGOV MARR MG
SUBJECT: MONGOLIAN GOVT SEEKS UPDATES ON PENDING BILATERAL
AGREEMENTS

SENSITIVE BUT UNCLASSIFIED- NOT FOR INTERNATION DISTRIBUTION


1. (U) This is an action cable. See actionS requested in para 9.


2. (SBU) SUMMARY: Mongolian Foreign Ministry Americas Deputy
Director General Mounkhou invited the DCM to the Ministry on August
8 to requestupdates on several pending bilateral agreements ahead of
President Enkhbayar's anticipated October visit to Washington. DG
Mounkhou asked for clarity on the status of the Millennium Challenge
Account (MCA) Compact Agreement, the Comprehensive Partnership
Framework Agreement, and the Cultural Heritage Agreement, The GOM
also asked that President Enkhbayar's visit be an "official" visit,
expressed continued concern about reductions in USAID assistance to
Mongolia, and called on the USG to increase the number of
scholarships for Mongolian university students. END SUMMARY.


3. (SBU) Mounkhou, MFA Director General for the Americas, Africa
andMiddle East, told DCM on August 8 that the Government of Mongolia
would like to conclude several pending bilateral agreements in
conjunction with President Enkhbayar's proposed visit to Washington
in mid- to late October. Mounkhou said:

-- The MCA Compact Agreement is working its way through the GOM
bureaucracy and, as far as the Mongolian side is concerned, will be
ready for finalization in the near future.

-- Regarding the (GOM-proposed) Comprehensive Partnership Framework
Agreement, the GOM would like a formal USG response. He added that
the GOM would then respond accordingly.

-- A year ago, the USG proposed a Cultural Preservation Agreement.
The GOM seeks an update on the status of this agreement. If the
agreement cannot be concluded in the near future, the GOM is
interested in concluding it at a later point.


4. (SBU) The DCM noted good progress was being made by both sides
toward concluding the MCA Compact Agreement, and said he would
convey to Washington the request for a responses with respect to the
other agreements.

"OFFICIAL" VISIT SOUGHT
--------------


5. (SBU) The MFA asked whether President Enkhbayar's envisioned
October visit to Washington was categorized as "official." DCM said
this was a White House call. Mounkhou then made clear that the
Mongolians favor an official visit, given the high level of
bilateral relations, the fact that President Bush personally issued
the invitation to President Enkhbayar, and this year the two nations
celebrate the 20th anniversary of the establishment of diplomatic
ties. Mounkhou noted that two had held an office meeting during the
2004 Summit and the GOM hoped this year's meeting would be bumped to
a higher level.

FOLLOWUP QUESTION ON ASSISTANCE
--------------


6. (SBU) On the issue of reduced USAID assistance to Mongolia, the
D/DG pointed out that Foreign Minister Enkhbold had sought EAP
Assistant Secretary Christopher R. Hill's assistance in preserving
and expanding assistance levels. Mounkhou said MFA hoped it might
receive a response from A/S Hill in this regard.

SCHOLARSHIP INCREASE DESIRED
--------------


7. (SBU) D/DG Mounkhou said the GOM sought an increase in the number
of U.S. scholarships offered to Mongolian university students,
adding that this issue also was discussed with A/S Hill, but that no
response had reached the GOM. DCM said that the request is still
being examined, and urged the Mongolians to recognize that education
in the United States, unlike in Mongolia, is highly decentralized,
and handled largely at the state and local level. Viewed on a

ULAANBAATA 00000459 002 OF 002


nationwide scale, the DCM added, the number of overall scholarships
to Mongolians has increased over the past year or so. D/DG Mounkhou
then said that if the U.S. side has any positive news about
scholarships for Mongolians, the GOM would be delighted if that
information could be conveyed during President Enkhbayar's visit.

M.O.U. ON W.M.D.-COMPONENT DETECTION; PSI
--------------


8. (SBU) The DCM asked where the Mongolian side stood on the
proposed Memorandum of Understanding regarding assistance on
preventing WMD proliferation under on UNSC 1540. Mounkhou replied
that the Cabinet had accepted the MOU, which had been submitted to a
Standing Committee. (Note: Word reached us on August 9 that the GOM
has designated the Ministry of Finance as the signer of the MOU, and
that it would be ready for signing possibly during the upcoming
visit of a U.S. Department of Energy border inspection team's visit
at month's end.) Mounkhou also understood that progress had been
made regarding the possibility of concluding a Proliferation
Security Initiative (PSI) agreement and promised an update on its
status in the next few days.


9. (U) ACTION REQUESTED: Post would appreciate receiving responses
to the questions posed at Washington's earliest convenience.