UNCLAS SECTION 01 OF 06 ULAANBAATAR 000642

SIPDIS

SENSITIVE
SIPDIS

STATE PASS PEACE CORPS, OPIC AND EXIMBANK
STATE PASS EPA
STATE FOR EAP/CM
USAID FOR D. WINSTON
BANGKOK AND MANILA FOR USAID
TREASURY FOR T.T. YANG
USDA FOR FAS FOR N. SAKLAH

E.O. 12958: N/A
TAGS: PGOV EMIN ETRD PREL SOCI MG RU CM
SUBJECT: Snapshot of Mongolia's North Central Selenge Province

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION


1. (SBU) SUMMARY: Mongolia's central northern Selenge aimag
(province) hopes to develop mining, agricultural production and
tourism. Selenge has generally good relations with its Russian
neighbor, but the Russians remain bureaucratic and uncooperative in
facilitating border crossing. During the DCM's November 1-2 visit,
local politicians told him the province's two parties cooperate and
accommodate, eschewing combative confrontation. While unemployment,
education, medical care, and housing are all common concerns,
women's groups leaders cited the need for continuing education
opportunities, access to micro-finance, and business plan/grant
writing skills. Peace Corps Volunteers working in education and
health care are much appreciated, and as is the case virtually
everywhere, more PCVs were requested. USAID-funded GER Initiative
and Judicial Reform Project are making important contributions to
small-scale business development and rule of law and governance
through court automation, respectively. Many expressed interest in
developing sister city or other relationships with U.S. professional
organizations. The DCM also called on the 150th Battalion in Darkhan
to express thanks for their participation in PKO. END SUMMARY.

Touching Bases in Selenge; PKO Stop
--------------


2. (U) DCM (then Charge) visited Sukhbaatar, the capital of Selenge
aimag (province) November 1-2 He met with Selenge Aimag officials,
met separately with ruling and opposition party leaders, visited the
Russian/Mongolia border crossing point for vehicles and also
observed the immigration and customs processing of an out-bound
train, met with three women's groups' leaders, including one focused
on violence against women, visited PCVs at their school and hospital

work sites, held a press event with local media, and lunched with
English language teachers and their star student. He also paid a
brief call on the 150th Peacekeeping Operations Battalion in Darkhan
enroute back to Ulaanbaatar on November 2. In his meetings, the DCM
highlighted the 20th anniversary of the establishment of diplomatic
relations, noted the strength of the bilateral relationship as
strong friends and allies, summarized the results of President
Enkhbayar's trip to the U.S. including the signing of the Millennium
Challenge Account Compact, and sought views on local issues and
opportunities for bilateral cooperation.

Selenge Governor Pitches Mining, Agriculture, Tourism; Seeks US
Investment, Contacts
--------------


3. (U) Selenge Governor Bayarmagnai said the aimag has 43,000 square
kilometers and is comprised of 17 soums (counties) and 49 baggs
(districts). Selenge is renowned as Mongolia's food basket,
producing 57% of all agricultural crops including 40% of the
nation's vegetables. The region's herds are not the largest but
tend to be of much higher quality. In this regard, he said he would
welcome the opportunity to cooperate with U.S. agricultural
university or research institute. Mining in Selenge accounts for
just over 50% of the country's gold
and almost 100% of the iron ore production. Bayarmagnai hoped
American firms would also consider investing in the mining sector,
and the DCM noted a number of U.S. firms such as Peabody Energy had
already expressed interest in working in Mongolia. In general, the
aimag's infrastructure is good and it boasts a free trade zone
(FTZ), though the zone has not been very active, the Governor said.
He sought USG technical assistance in improving the FTZ and
attracting U.S. firms.


4. (U) Governor Bayarmagnai also welcomed the prospect of increasing
the numbers of Peace Corps Volunteers working in the aimag, sought
increased

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opportunities for English language education exchanges, and hoped
sister city or sister state programs could be pursued with similar
geographic
regions such as North or South Dakota, Wyoming, Montana, or
Colorado. The DCM said the Embassy would look into whether
Sukhbaatar might be added as a venue for visiting Embassy speakers
as well as DVC/teleconferencing presentations and English language
training programs. The Governor also lauded the USAID-funded GER
Initiative and Judicial Reform Project which are making important
contributions to small-scale business development and rule of law
and governance through court automation, respectively.

Local Politics - Accommodation Not Confrontation
-------------- --


5. (U) Selenge's Citizen's Khural (parliament) and Mongolian
People's Revolutionary Party (MPRP, the national ruling party and
the much-changed successor to the former Communist Party) Chairman
Mr. Javkhlan said the 35 member Khural is comprised of 21 MPRP
members, 13 Democratic Party (DP) members and one independent. The
MPRP has 15 of 17 soum governors and the DP has two. Javkhlan said
the two parties cooperated and did not engage in acrimonious debate
as happens at the national level. (COMMENT: This is a common refrain
among aimag politicians that local politics focuses on accommodation
as compared to Ulaanbaatar's propensity for confrontation.)
Regarding the MPRP's prospects for next year's parliamentary
elections, Javkhlan said he felt the party had "delivered" in the
aimag and thus was poised to win again. He said the MPRP would have
no problem fielding women candidates for 30% of the jobs.


6. (U) At the moment, the Khural is pondering its next four-year
plan which will focus on developing family-run businesses and small
and medium enterprises. He noted that a little progress had been
made in recent years with some 3,000 families now engaged in small
scale farming and vegetable production. Javkhlan complained that
the aimag's taxes and contributions to the central government
greatly exceeded what it got back in the way of investment. The
khural was also looking at limiting hunting as some species were
under pressure as well as logging for fear that the aimag's forests
will be depleted in the near future.
Democratic Party Defining Goals,
Building for 2008
--------------


7. (SBU) Six local DP leaders told the DCM they had just completed a
survey of families in the aimag's soums to determine how they might
best formulate their 2008 election platform. Families were
interested in improving educational opportunities, especially
vocational education, and medical care. The DP also wants to move
forward with mining development and supports the initiative for
responsible and transparent mining. DP leaders visited the Boroo
Gold Mine (a Canadian investment) in the aimag's southern region and
were impressed with what they saw in terms of using local labor,
environmental protection, and community stewardship. They hope for
more investment in iron ore and coal as well as agricultural
development and FTZ industrial development.


8. (SBU) Asked to assess the then on-going debate within the MPRP to
dismiss Prime Minister Enkhbold (now a fact), DP leaders said this
was the first time within the MPRP that there had been open and
constructive criticism, something that had been common place in the
DP for some time. The MPRP faced many criticisms, including growing
corruption and a lack of progress in addressing other real problems
such as employment, inflation, education, medical care, etc. The
MPRP had used last year's budget surplus to buy votes, opting to
provide subsidies to children, newly weds, etc. rather than invest
in the country, one DP rep noted. (COMMENT: He conveniently forgot
that it was actually initially a DP proposal commandeered by the

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MPRP, with the DP then engaging in and partially succeeding in a
bidding war.) Asked whether selecting (soon-to-be PM) Bayar as the
MPRP leader was significant, one DP leader said Bayar was an astute
politician, noting the MPRP had won the elections when Bayar had
hand-picked the MPRP's slate.


9. (U) DP reps asked for funding to support and train local
candidates, especially to teach fund raising techniques. The DCM
replied the USG could not engage in funding political parties, nor
could it favor one party over another but must treat all equally.
He said he would look into what training the USG had been provided
to all parties and would ascertain whether training materials might
be shared. DP reps also asked about how Congress handles its
constituency work and the DCM offered to provide some background
materials in this regard.

Local Media Reps Interested in Enkhbayar Trip, Corruption, MCC,
Visit and Cooperation Prospects
-------------- ---


10. (U) Local media reps were interested in President Enkhbayar's
trip to the U.S. and the MCA Compact, as well as how the Compact's
investments would be insulated from corruption. The DCM underscored
the media's role as watchdog and urged that they "shine a bright
light" on anything that smacks of corruption as well as bringing
allegations to the attention of Mongolia's Anti-corruption Agency.
Media reps were interested in any USG in-country training programs
or visits to the U.S. for journalists as well as prospects for
cooperation with U.S. media organizations and sister city
counterparts, should such a relationship develop.

Border Forces Appreciate Cooperation with U.S.
-------------- -


11. (SBU) During an office call on local Border Forces Commander
Batsukh, Batsukh said he appreciated U.S.-Mongolian
military-to-military cooperation, continued contact with the
Embassy's Defense Attache Office, and the USG's provision of radio
systems for the Border Forces. He noted that four of his soldiers
had completed tours in Iraq and all spoke very highly of their
contacts with American forces. He said 60% of his troops are
professionals and the remainder were one-year conscripts. Batsukh
said his unit is comprised of seven larger units, three subunits and
17 smaller units responsible for covering the 421 kilometer border
with Russia. Cooperation with the Russians was generally good and
the two sides take the lead in monitoring and enforcing different
segments of the border. Unlike Mongolia's western border areas,
where Batsukh had recently served, violations in Selenge were few in
number, averaging around 14-15 events involving about 20 persons
total per year, and were largely benign, not involving weapons nor
exchanges of fire.

Russians Uncooperative at Border Crossing Point
-------------- --


12. (SBU) At the Altanbulag border crossing point 25 kilometers
east of Sukhbaatar, the DCM observed a well-organized operation and
modern facilities designed to process 500 vehicles and 2,000 people
per day but which was actually only handling about 70-100 cars and
trucks and 200-300 people daily. About 40 vehicles were backed up
on the Mongolian side and there was no observable activity on the
Russian side. Border Forces LTC Altankhuu complained there was no
reason for the Russians to "go slow" and not process the waiting
vehicles and passengers, adding that this was a common practice.
While the Mongolians conducted routine spot checks of luggage and
cargos, the Russians tended to look at "absolutely everything,"
forcing Mongolians to empty and repack suitcases and often pay large
"customs fines" for exceeding limits on imports into Russia.

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Altankhuu attributed this to Russian bureaucratic mentality and
Putin's aggressiveness. National and local governor talks had not
improved conditions, he said. Altankhuu made one soft pitch for more
computers at this check point to help speed processing. (COMMENT:
This border crossing area is reminiscent of Berlin of old, with
thickets of barbed wire, watchtowers, and a raked "no man's land"
between their fences - as if anyone would defect in either
direction.)

Train Crossing Also Slow on the Russian Side
--------------


13. (SBU) During the evening of November 1 the DCM watched border
forces process an outbound Chinese train that originated in Beijing
about to cross into Russia enroute to Moscow. Once the passenger
cars had been separated from the locomotive (Russian, Chinese and
Mongolian locomotives are used in their own territories; ridership
follows suite - more Russians on Russian trains, etc.), Border
Forces cordon off the cars and immigration processing begins. LTC
Altankhuu said the numbers of passengers vary from lows of 70 to 100
in the winter months to 300 to 400 during the summer travel season,
with six international trains being processed daily. Processing
typically takes 20 to 30 minutes in the winter and 30 to 50 minutes
in the summer. DCM watched as about 40 passports were processed
that evening, including a few German, Russian, and two U.S.
passports, the rest being Chinese. Altankhuu said the train then
proceeds to the neighboring Russian border point to undergo Russian
processing, which can run anywhere from two to several hours.
(COMMENT: Indeed former Ambassador Slutz spent several hours stuck
on the Russian side.)

Violence Against Women: Shelter an Important Step
-------------- --------------


14. (SBU) Ms. Gereltuya, the head of a local violence against women
NGO, guided the DCM on a tour of a newly established women's
shelter, the only one in the region and one of Mongolia's first
shelters. She said the shelter currently accommodated two women and
their four children. Over the past year, 123 cases of violence
against women had been reported and referred to this NGO. Except
for two rape cases, the remainder involved family violence across
the full spectrum of education and income levels; almost all
involved alcohol. She estimated only one in six cases are reported
in part because of how such cases are handled. Should a woman call
the police, the police would come, investigate, and take the
husband/boyfriend to the police station to spend the night, but then
the wife/girlfriend would have to bail the perpetrator out the next
day, often resulting in more anger and greater expense. The local
police were cooperating and, despite some additional training, had
yet to modify their interview techniques from treating victims as
criminals rather than victims. She hopes to expand training
programs for victims to give women alternatives.

Trafficking In Persons Not a Problem - Yet
--------------


15. (SBU) Ms. Gereltuya and the leaders of two other women's group
told the DCM over dinner November 1 that trafficking in persons
(TIP) did not appear to be a serious problem in the aimag. There
were no known cases in recent years, but they were aware that there
might be TIP problem associated with the border crossing points of
people being trafficked to/from China and Russia. Ms. Gereltuya
said Border Forces and local police officials had been very
cooperative and receptive to training programs designed to help them
spot TIP.

Women's Worries: Continuing Education, Micro-finance, Business
Plan/Grant Writing

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-------------- -


16. (U) Regarding other women's issues, the three women's groups
leaders complained about the lack of adult continuing education.
Once women had completed university training in Ulaanbaatar or
nearby Darkhan, there were few opportunities to upgrade or update
their educations. In turn, this meant the aimag would lag further
and further behind in embracing new technologies and techniques.
This also encouraged further "brain drain" as the better performers
moved to UB for better opportunities, salaries, etc. The women also
emphasized the importance of expanding access to micro-finance to
enable women to start up businesses, and they noted women rarely had
access to collateral needed to gain such loans. The leaders also
noted the need for additional training, especially in the
countryside, to develop business plans and write grant requests.

Hospital's Concerns and Desires
--------------


17. (U) Dr. Jigjidsuren told the DCM that the Sukhbaatar hospital
faced a number of challenges and problems. The hospital did not
have enough doctors and those it did have tended to be elderly
physicians training many years ago in the Soviet Union. It was
difficult to attract and retain new doctors. The hospital's limited
facilities and range of treatments contributed to this dearth of new
doctors, who tended to leave once they'd mastered these, and
encourages patients to seek treatment in UB, Russia or China. Often
there are few or no backups when a staff member is sent elsewhere
for training. The hospital itself was old and suffered from many
shortcomings such as a leaky roof, cold in the winter, etc. Dr.
Jigjidsuren was interested in information on the MCA Compact's
medical project, distance learning, distance diagnostics, and
possible hospital-to-hospital connections via the sister city
program. He is also interested in public private partnerships with
U.S. firms. (COMMENT: While Dr. Jigjidsuren has focused on his
hospital's shortcomings, DCM noted that this hospital appeared
well-organized, cleaner than most, and the staff moved with energy
and purpose. A tour of the hospital with PCV Julie White revealed a
number of innovations, including a playroom/waiting room for tots
and an exercise, physical therapy room, for example.)

English Language Learning Challenges
--------------


16. (U) During a visit to PCV Jessica Pic's high school English
language class, the DCM learned that the school's teachers had only
recently shifted from teaching Russian to English. The school is
now rejiggering its English language program and developing
additional resources. All are deeply grateful for the contributions
made by PCV Pic and they seek additional PCVs as well as training
for their teachers and equipment and materials.

PKO Battalion Visited, Thanked
--------------


17. (U) Enoute back to UB on November 2, the DCM paid a brief call
on the 150th PKO Battalion in Darkhan. After meeting with the
unit's commander, Colonel Bayarmagnai (an Iraq veteran), the DCM
addressed a small gathering of about 15 soldiers, members of an
English language training program, while the rest of the unit's 350
soldiers (the unit is at half-strength) were out on a 30 kilometer
field march. Among the 15 soldiers were two that had served in Iraq
(one did two tours), four that had served in Afghanistan, and
several that had just returned from a UN mission in Sierra Leone.
The DCM thanked them for their service to peace, freedom for the
Iraqi and Afghani people, and for being strong friends and allies.
Colonel Bayarmagnai, MARFORPAC embedded Marine trainers, and the DCM
visited the Marines' local civic action project, a jointly-built

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basketball court funded by the Marines. The court was in use even
with snow on the ground and temperatures hovering at the freezing
mark.
MINTON