FOREIGN MINISTER DISCUSSES 6 PARTY TALKS, IRAQ, KOSOVO,

UNCLAS SECTION 01 OF 03 ULAANBAATAR 000089

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SENSITIVE
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SEOUL PASS TO EAP A/S HILL
STATE FOR EAP/CM, NEA/NGA, PRM, and DRL
STATE PASS USTR FOR WINELAND

E.O. 12958: N/A
TAGS: PREL EAID ECON MARR PGOV MG IQ
SUBJECT: FOREIGN MINISTER DISCUSSES 6 PARTY TALKS, IRAQ, KOSOVO,
MORE

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.


1. (SBU) SUMMARY: FM Oyun told the Ambassador over dinner February
22 that Russia and the other six party talks (6PT) members had
responded favorably to Mongolia's proposal to host the next 6PT
Peace and Security Working Group (PSWG) meeting. Regarding the
recent announcement that the Government of Mongolia (GOM) and the
DPRK had agreed that Mongolia might receive as many as 5,000 DPRK
laborers, Oyun said complicated domestic political and legislation
requirements had yet to be resolved, likely delaying arrivals for
some time. The Ambassador sensitized Oyun to the agreement's risks
should some of these laborers seek asylum, noting USG opposition to
refoulement. Regarding Kosovo, Oyun said the GOM respects the
rights of both Serbia and Kosovo and believes the UN should play its
rightful role, so for the time-being, the GOM was in the "wait"
mode. The Ambassador briefed the FM on USG thinking regarding
troop participation arrangements in Iraq post-UNSCR. FM Oyun said
she hopes the USG will soon give agreement to Ambassador nominee
(MFA State Secretary) Bekhbat and that he might take up his duties
in March or April. Oyun responded favorably to the prospect of
transparency agreement negotiations stemming from the recent Trade
and Investment Framework Agreement (TIFA) discussions; the GOM was
very pleased with the results of the TIFA and the Consultations on
Bilateral, Regional, and Global Issues (CBRGI) policy talks. Oyun
said she had hoped to meet with Secretary Rice on the margins of the
February 25 inauguration in Seoul but understood the Secretary's
participation and schedule might not allow this; the FM is
considering visiting the U.S. later this spring. END SUMMARY.


2. (SBU) The Ambassador hosted for Foreign Minister Oyun on
February 22. MFA Acting Director General for the Americas, Middle
East and Africa Mounkhou and the DCM also attended the very cordial
two hour discussion.

SPRING VISIT TO U.S. BEING PLANNED
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3. (SBU) FM Oyun, who will accompany President Enkhbayar to the
February 25 inauguration ceremonies in Seoul said she had very much
hoped she and Secretary Rice might meet, but she understood the
Secretary's schedule and participation in those events might not

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allow this. Oyun said she would be pleased to meet with A/S Hill,
whom she had met last June during Hill's visit to Mongolia, and the
FM hoped she and the Secretary could connect during a planned trip
to the U.S. later this spring, though dates had not yet been set for
this visit.

RUSSIA OKS MONGOLIA'S HOSTING OF 6PT PSWG MEETING
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4. (SBU) FM Oyun noted Mongolia's earlier offer to host the 6PT PSWG
meeting had been favorably received by all 6PT members and the
Russians, who chair the PSWG, said they will consult once dates for
the meeting had jelled. She expressed appreciation for the USG's
support in this regard. (NOTE: Speaking just prior to FM Oyun's
arrival for the dinner, A/DG Mounkhou said A/S Hill's expression of
support for Mongolia's offer was particularly appreciated by the
GOM, coming during the February 5 visit by MFA State Secretary
Bekhbat for the Consultations on Bilateral, Regional, and Global
Issues (CBRGI) policy talks. Hill's review of the status of 6PT and
DPRK compliance performance was also very helpful to the GOM,
according to Mounkhou.)

DPRK LABOR AGREEMENT NOT A DONE DEAL
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5. (SBU) On other DPRK-related subjects, FM Oyun said the recent
visit of Construction Minister (and former MFA Vice Minister)
Tsolmon had resulted in an agreement by which Mongolia might receive

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as many as 5,000 DPRK laborers. The agreement followed-up on last
summer's visit by the DPRK Premier and reflected the GOM's desire to
develop alternative sources beyond Chinese labor. However, the

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agreement requires legislation to allow the Tugruk 180,000 (about
US$165)per month foreign labor tax to be waived. Mongolia's
parliament had not taken up the issue during the fall session and
Oyun was doubtful it would be considered during the spring session,
which begins April 5, given impending June parliamentary elections.
Some MPs had expressed concern that if an exception is made for DPRK
labor, other nations, including China, might seek similar exemptions
-- a deal breaker in Oyun's view. The issue was a bit of a leper as
well, she noted, as Labor Minister Demberel demurred on the Prime
Minister's request, asking that the FM introduce it to the Cabinet
and Parliament. Oyun said she understood that at the moment there
were fewer than 150 DPRK laborers in Mongolia.

DPRK LABOR AGREEMENT-REFUGEE CONNUNDRUM
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6. (SBU) The Ambassador took the opportunity to flag for FM Oyun the
sensitivities surrounding the possibility that some of the GOM/DPRKG
agreement's laborers might seek asylum, putting the GOM in an
awkward position, as the DPRK would almost certainly seek their
return. The USG, the Ambassador said, had repeatedly expressed its
appreciation for Mongolia's "humanitarian" treatment of refugees and
especially its policy of allowing them to be resettled in South
Korea, the U.S., or elsewhere rather than refoulement to almost
certain punishment or death in the DPRK.

MONGOLIA IN "WAIT" MODE ON KOSOVO
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7. (SBU) FM Oyun acknowledged the GOM had not yet given the U.S. a
full answer regarding recognizing Kosovo. She said the GOM respects
the right of both Serbia and Kosovo and believes the UN should play
its rightful role. So for the time-being, the GOM's approach was to
wait; it had not made a firm decision either way but could not be
among the early group to recognize Kosovo. She volunteered that
neither Russia nor China had approached the GOM to influence its
decision, despite their own well-known views on this topic. Oyun
asked several questions regarding Kosovo's status - had it been a
federal state, were the parallels with other regions, etc., which
the Ambassador answered, drawing upon his earlier experience on
Kosovo while serving with USUN.

MONGOLIA'S PARTICIPATION IN POST-UNSCR USG/GOI SOFA
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8. (SBU) Turning to Iraq, the Ambassador thanked FM Oyun for
Mongolia's continued coalition membership and support in Iraq. He
reviewed recent positive trends in security and underlined the need
for continued support. He explored the USG's thinking regarding the
evolution of security arrangements for forces in the absence of a UN
Security Council resolution, including plans for a "status of
forces" (SOFA)-like agreement with the Government of Iraq, adding
this issue had earlier only been raised with Presidential Foreign
Policy Advisor Tsogtbaatar. In the months ahead, the U.S. would
brief the GOM on this USG/GOI agreement and options for GOM
participation under it. FM Oyun sought additional information on
SOFAs the USG has with other countries and the GOM will wait for
greater clarity in the USG/GOI agreement.

FM HOPES NEW AMBASSADOR TO U.S BEKHBAT
WILL ARRIVE IN THE U.S. BY MARCH OR APRIL
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9. (SBU) State Secretary Bekhbat had been nominated to be
Mongolia's Ambassador to the U.S., FM Oyun said, the GOM was seeking
agreement from the U.S., which she hoped would soon be forthcoming.
She inquired about the process and timing for the presentation of
his credentials. Oyun acknowledged there had been some discussion
of delaying Bekhbat's departure for the U.S. until after the June
parliamentary elections, but she hoped he would arrive in the U.S.
in March or April and might soon thereafter present his credentials,
perhaps then returning briefly to hand over his State Secretary

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duties.

LAND CONFUSION EMBARASSMENT AVERTED; MAY BE RESOLVED
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10. (SBU) The Ambassador reviewed a recent land dispute in which
the two sides narrowly averted an embarrassing confrontation which
would have seen President Enkhbayar breaking ground on the Embassy's
leased land on February 21 for a new Kuwaiti-funded state library.
Intense Embassy lobbying was required to stop it (septel). Oyun
said she and other senior MFA officials had been seized by the
problem, and the President himself decided to cancel the event,
ordering another suitable site be found for the library. The
problem stemmed from a disconnect between the Mayor's office, the
Ulaanbaatar land office, and MFA, she said, adding that it appears
the Embassy's leases were never recorded with the land office, but a
resolution of the problem was in the offing. (Note: MFA Treaties
and Laws DG Altangerel has invited the DCM in February 25 to discuss
the issue, which includes a long-standing proposal for the
consolidation of the Embassy's leases.)

USTR TRANSPARENCY AGREEMENT PROPOSAL REVIEWED
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11. (SBU) The DCM summarized the results of the February 4 USTR-led
Trade and Investment Framework Agreement discussions in Washington.
He reviewed the exchanges regarding USTR's transparency agreement
proposal and described the next steps and timeline envisioned for
negotiations to begin. Oyun said she had heard of the proposal and
sees the merits of it; she agreed to support this process when the
issue is put before the cabinet.

GOM VERY PLEASED WITH CBRGI, TIFA RESULTS
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12. (SBU) While waiting for FM Oyun to arrive for dinner, A/DG
Mounkhou said the GOM was very pleased with the results of both the
CBRGI and the TIFA. In both cases, the GOM was please with the
substance of the discussions and actionable outcomes. In
particular, the GOM was impressed by the breadth of issues covered,
signifying an expansion of areas of interest and cooperation, as
well as the number of USG agencies now engaged or seeking engagement
with Mongolia.

MINTON