Identifier
Created
Classification
Origin
07ULAANBAATAR658
2007-11-23 09:21:00
CONFIDENTIAL
Embassy Ulaanbaatar
Cable title:  

BAYAR VOTED IN AS MONGOLIAN MP, TAKES AIM AT

Tags:  PGOV PREL ECON SOCI MG 
pdf how-to read a cable
VZCZCXRO3681
PP RUEHLMC RUEHPB
DE RUEHUM #0658/01 3270921
ZNY CCCCC ZZH
P 230921Z NOV 07
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC PRIORITY 1676
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0029
RUEHBK/AMEMBASSY BANGKOK PRIORITY 1631
RUEHBJ/AMEMBASSY BEIJING PRIORITY 5864
RUEHHI/AMEMBASSY HANOI PRIORITY 0080
RUEHJA/AMEMBASSY JAKARTA PRIORITY 0193
RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0215
RUEHKU/AMEMBASSY KUWAIT PRIORITY 0025
RUEHML/AMEMBASSY MANILA PRIORITY 1540
RUEHMO/AMEMBASSY MOSCOW PRIORITY 1978
RUEHPF/AMEMBASSY PHNOM PENH PRIORITY 0040
RUEHPB/AMEMBASSY PORT MORESBY PRIORITY 0029
RUEHGO/AMEMBASSY RANGOON PRIORITY 0023
RUEHUL/AMEMBASSY SEOUL PRIORITY 3045
RUEHGP/AMEMBASSY SINGAPORE PRIORITY 0360
RUEHKO/AMEMBASSY TOKYO PRIORITY 2741
RUEHVN/AMEMBASSY VIENTIANE PRIORITY 0034
RUEHSH/AMCONSUL SHENYANG PRIORITY 0381
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 ULAANBAATAR 000658 

SIPDIS

SIPDIS

STATE FOR EAP/CM
STATE PASS USDA FAS WASHDC

E.O. 12958: DECL: 11/23/2017
TAGS: PGOV PREL ECON SOCI MG
SUBJECT: BAYAR VOTED IN AS MONGOLIAN MP, TAKES AIM AT
RISING CONSUMER PRICES

REF: ULAANBAATAR 641

Classified By: Ambassador Mark Minton for Reason 1.4 (d).

C O N F I D E N T I A L SECTION 01 OF 02 ULAANBAATAR 000658

SIPDIS

SIPDIS

STATE FOR EAP/CM
STATE PASS USDA FAS WASHDC

E.O. 12958: DECL: 11/23/2017
TAGS: PGOV PREL ECON SOCI MG
SUBJECT: BAYAR VOTED IN AS MONGOLIAN MP, TAKES AIM AT
RISING CONSUMER PRICES

REF: ULAANBAATAR 641

Classified By: Ambassador Mark Minton for Reason 1.4 (d).


1. (C) SUMMARY: As expected, Mongolia's Parliament elected
S.Bayar as Prime Minister on November 22, with 67 of 69 MPs
present voting in support. Bayar, an English-speaking former
diplomat who leads the ruling Mongolian People's
Revolutionary Party (MPRP),accepted the Seal of Government
and said he would discuss the composition of a coalition
Government with other political parties and President
N.Enkhbayar. (The PM is expected to provide a draft Cabinet
list to Enkhbayar before the President leaves on November 24
for state visits to the United Arab Emirates, Kuwait and
Qatar.) In remarks to the press, Bayar indicated that his
first priority, after setting up a new Government, would be
to focus on rising consumer prices. Bayar did not shed any
light on who he would invite to serve in the next Cabinet but
indicated that it would not include Republican Party leader
B.Jargalsaikhan or People's Party chief Gundalai. Bayar also
reiterated his view that the current Cabinet, with 18
members, is too large. On November 21, the ROK Ambassador
told Ambassador Minton that he views Bayar as a "capable" and
"strong" leader, and that strong leadership is what Mongolia
needs at this time. The same day, influential MP Munkh-Orgil
predicted to the Ambassador that Bayar will exercise
discipline over his Cabinet and ensure that policies are not
open to reinterpretation. END SUMMARY.


2. (U) As expected, the Mongolian Parliament voted in S.Bayar
as the country's 25th Prime Minister on November 22.
Sixty-seven of the 69 MPs present at the plenary session (out
of 75 total) voted in support of Bayar, who is head of the
ruling (and formerly communist) Mongolian People's
Revolutionary Party (MPRP). The eventual rise to PM of
Bayar, a 51-year-old, English-speaking former diplomat, was
essentially a foregone conclusion following the events of
October 27, when Bayar unseated former PM M.Enkhbold as MPRP

Chairman (reftel).

LIPS SEALED ON CABINET PLANS
--------------


3. (U) After accepting the Seal of Government from Enkhbold
and his Cabinet, Bayar said he would discuss the composition
of a new Cabinet with other political parties and President
N.Enkhbayar. Bayar was expected to provide a list of
prospective Cabinet ministers to Enkhbayar before the
President leaves on November 24 for state visits to the
United Arab Emirates, Kuwait and Qatar. (Note: During the
President's stay in the UAE, the two countries are to sign
protocols on aviation, labor, veterinary services and
wildlife conservation. In Kuwait, oil- and education-related
agreements are to be concluded, while in Qatar, cooperation
is to be formalized on investment promotion, youth exchanges,
veterinary services and commerce. End Note.) The President
will have seven working days to respond to Bayar's draft
Cabinet lineup, but even if the President were to fail to
respond, PM Bayar would be able to submit his choices to
Parliament for approval, first by the relevant Standing
Committees and then by the full Parliament.

RISING PRICES A MAJOR CONCERN
--------------


ULAANBAATA 00000658 002 OF 002



4. (U) Also on November 22, Bayar indicated in remarks to the
press that his first priority, after setting up a new
Government, would be to focus on rising consumer prices. He
did not explain what this effort would entail, but in a
November 6 meeting with the Ambassador, Bayar said he planned
to rein in inflation (approaching 13 percent this year),
paying particular concern to the prices of basic goods. He
added that other issues of key interest to the Mongolian
people include corruption and major mining projects. (Note:
Bayar told the Ambassador that he hopes a GOM contract with
mining giant Rio Tinto will be signed on the Oyu Tolgoi
deposit during the first three months of 2008. End Note.)

GUNDALAI, JARGALSAIKHAN LEFT OUT
--------------


5. (C) Bayar did not shed any light on key members of the
coalition Government he will form but did indicate that it
would not include Republican Party leader B.Jargalsaikhan or
People's Party chief Gundalai. Bayar also reiterated his
view that the current 18-person Cabinet "is too huge,"
leading to speculation that the new Cabinet would consist of
15 to 17 members. In a November 21 meeting with the
Ambassador, influential MPRP member Munkh-Orgil, who chairs
Parliament's Legislative Standing Committee, described Bayar
as a strong leader who will exercise discipline over his
Cabinet and ensure that policies set by the PM are not open
to reinterpretation by Cabinet ministers.

ROK AMBASSADOR: BAYAR "CAPABLE," "STRONG"
--------------


6. (C) Over dinner with the Ambassador on November 21, South
Korean Ambassador Park characterized Bayar as a "capable" and
"strong" leader, adding that strong leadership is what
Mongolia needs at this time.
MINTON