MFA STATE SECRETARY BEKHBAT PREVIEWS TRIPS BY

C O N F I D E N T I A L SECTION 01 OF 02 ULAANBAATAR 000124 SIPDIS SIPDIS STATE DEPT FOR EAP/CM E.O. 12958: DECL: 03/21/2018 TAGS: PREL PGOV ECON SOCI MG SUBJECT: MFA STATE SECRETARY BEKHBAT PREVIEWS TRIPS BY SENIOR OFFICIALS REF: ULAANBAATAR 118 Classified By: Ambassador Mark C. Minton for Reason 1.4 (d). ¶1. (C) SUMMARY: The State Secretary (and soon to be Ambassador to the U.S.) of Mongolia's Foreign Ministry, Kh. Bekhbat, told the Ambassador that President N. Enkhbayar will attend a business forum on the Chinese island of Hainan in April and head to New York in October to attend the UN General Assembly, where "he has been invited to lead discussions" on issues related to Landlocked Developing Countries. During the Ambassador's March 20 farewell luncheon for Bekhbat, Bekhbat also noted upcoming travel by Prime Minister S. Bayar to Russia and Belgium, and by Foreign Minister S. Oyun to China and Russia. The Ambassador reviewed developments in the bilateral relationship that might demand Bekhbat's attention in the near- and mid-term, including controversial amendments to Mongolia's law on mineral resources; the evolving future status of U.S. and coalition forces, such as Mongolia, in Iraq; Mongolia's Trafficking in Persons (TIP) situation; and the dispute over Mongolia's New York property taxes. END SUMMARY. ¶2. (C) MFA State Secretary Kh. Bekhbat described upcoming travel plans for the President, PM, and FM. -- President Enkhbayar will attend the April 11-13 Boao Forum for Asia (BFA) on China's Hainan island, before traveling on to Hong Kong for unspecified business. In August, the President will attend the Beijing Olympics (or at least the Opening Ceremonies). (Note: During February bilateral policy talks in Washington, Bekhbat renewed President Enkhbayar's invitation to President Bush to visit Mongolia and also explored the possibility of meeting on the fringes of the Beijing Olympics. End Note.) In October, Enkhbayar is likely to visit the United Nations, where "he has been invited to lead discussions" on issues related to Landlocked Developing Countries. Bekhbat believed the two Presidents could meet, perhaps, at that time. -- Prime Minister Bayar is scheduled to visit Moscow on April 10 and/or 11. (Specific goals for the visit have not been made public.) From April 14 to 17, Bayar is to visit Brussels for meetings with European Union officials. (No further information was immediately available.) In early May, PM Bayar is to make a one-day working visit to China. (It is unclear where in China, or for what purpose.) -- Foreign Minister Oyun will visit Beijing from March 24 to 27 and then accompany PM Bayar on his April 10-11 visit to Moscow. Bekhbat noted that FM Oyun's brief meeting with Secretary Rice in Seoul in late February was fruitful and SIPDIS that the FM had invited the Secretary to visit Mongolia. ¶3. (C) The Ambassador reviewed with Ambassador-Designate Bekhbat developments in the bilateral relationship that might demand Bekhbat's attention in the near- and mid-term. Specifically, the Ambassador discussed controversial amendments to Mongolia's law on mineral resources; the evolving future status of U.S. and coalition forces in Iraq; Mongolia's Trafficking in Persons (TIP) situation; and the dispute over New York property taxes. ¶4. (C) Regarding mining, the Parliament is expected to approve, during its March 25-29 recess session, a number of controversial amendments to the law on mineral resources. The Ambassador noted profound concern among mining companies over ambiguities in the legislation (reftel),particularly regarding the definition of "strategic deposits" and "adjacent properties," as well as the stipulation that the GOM or ill-defined "Mongolian entities" must own 51% of all strategic deposits. The Ambassador said he hoped the GOM would not forget that no amount of legislation will result in large-scale mineral extraction unless the economics of a deal make sense to mining firms. State Secretary Bekhbat ULAANBAATA 00000124 002 OF 002 acknowledged these concerns but felt such concerns were unfounded, adding that the GOM remains very interested in attracting U.S. businesses. ¶5. (C) On Iraq, the Ambassador observed that the surge has dampened violence and noted the continuing need for coalition forces beyond June, the end date for Mongolia's current, ninth rotation in Iraq. Beyond that, the Ambassador said, the U.S. is exploring a Status of Forces-like Agreement or similar document with the Government of Iraq in which third-party forces might participate; the USG will explore this more fully with the GOM in the months to come. Bekhbat said the GOM has already "started thinking about 2009." ¶6. (C) On the TIP issue, the Ambassador noted the State Department's responsibility to report on progress in the fight against trafficking. DCM and Econ/Pol Chief said the USG had noted positive GOM efforts in this regard and added that further actions, particularly those resulting in TIP convictions, would be welcome. Bekhbat said the GOM would welcome USG assistance in the fight against TIP. MFA Americas Bureau Acting Director Mounkhou said that, in his view, counter-TIP efforts in Mongolia were undermined by the absence of a witness protection program. ¶7. (C) The Ambassador observed that Bekhbat will likely have to deal with the issue of property-tax payments that New York authorities have demanded of the GOM (among others). Bekhbat said that "more countries at the UN are becoming objectors" to this action. The Ambassador encouraged the GOM to discuss the issue bilaterally, a move far preferable to the courts or the Host Country Committee. Bekhbat was noncommittal on this point. ¶8. (C) Bekhbat, who will depart for the U.S. on March 25 to take up his new position as Mongolia's Ambassador to the U.S., had met earlier on March 20 with the PM and the Speaker, and was to call later that day on the President. Bekhbat indicated he was grateful to the White House and the State Department for their cooperation in arranging his early credentialling ceremony with POTUS. MINTON