VZCZCXRO1547
PP RUEHLMC
DE RUEHUM #0724/01 2700906
ZNR UUUUU ZZH
P 270906Z SEP 06
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC PRIORITY 0392
INFO RUEHBJ/AMEMBASSY BEIJING 5246
RUEHUL/AMEMBASSY SEOUL 2473
RUEHKO/AMEMBASSY TOKYO 2249
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0366
RUCNDT/USMISSION USUN NEW YORK 0443
RUEKJCS/SECDEF WASHDC
RHEHNSC/NSC WASHDC
RUCPODC/USDOC WASHDC 1102

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000724 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM 
 
E.O. 12958: N/A 
TAGS: PREL EAID ETRD MG
SUBJECT: AMBASSADOR'S INITIAL CALLS ON PRESIDENT, SPEAKER, 
PM CITE EXCELLENT BILATERAL RELATIONALS 
 
 
Sensitive But Unclassified -- Not for Internet distribution. 
 
¶1. (SBU) SUMMARY: In the Ambassador's initial meetings with 
President Enkhbayar, following presenting his credentials on 
September 20, State Great Hural Speaker Nyambdorj on 
September 25, and Prime Minister Enkhbold, the Mongolian 
leaders stressed good bilateral relations, and pressed for 
early completion of a Millennium Challenge Account compact as 
well as a Free Trade Agreement.  The discussion of Mongolia's 
seventh rotation of military forces to Iraq is reported 
septel.  END SUMMARY. 
 
PRESIDENT PUSHES MCC COMPACT, FTA, PLANNING SUPPORT 
--------------------------------------------- ------ 
 
¶2. (SBU) The Ambassador arrived at post September 18, and he 
presented his credentials to President Enkhbayar the 
afternoon of September 20.  During the warm and cordial 
30-minute meeting following the credentialing ceremony, the 
President noted U.S.-Mongolia relations and cooperation were 
very good.  This cooperation could be enhanced by the 
proposed Comprehensive Partnership Framework Agreement 
(CPFA).  The GOM appreciated the USG's contributions in 
support of Mongolia's defense reform and peace-keeping 
capacity building efforts, while this also reinforced 
Mongolia's independence and its national identity.  He 
reiterated his appreciation for President Bush's November 
2005 visit to Mongolia and his acknowledgment of the U.S. as 
Mongolia's "third neighbor."  Economic and commercial ties 
could also be enhanced through the conclusion of a Free Trade 
Agreement (FTA) as well as through conclusion of a Millennium 
Challenge Corporation (MCC) compact.  The GOM also welcomed 
increased educational and cultural exchanges, he said. 
President Enkhbayar said the GOM was now preparing Mongolia's 
first-ever national development strategy, which the GOM hopes 
to have ready early next year.  Japan and Korea had offered 
planning support and the President said he would welcome USG 
assistance as well.. 
 
¶3. (SBU)  The Ambassador agreed relations were excellent and 
both sides sought to increase and broaden cooperation.  He 
noted the President's remarks at the Non-Aligned Movement 
conference in Havana the previous week had made strong points 
regarding North Korea's nuclear policy and its human rights 
performance. The Ambassador said that U.S. and Mongolia were 
making progress on improving bilateral commercial ties and 
had conducted two rounds of talks under the bilateral Trade 
and Investment Framework Agreement (TIFA), noting a third 
round of TIFA talks are now planned for early 2007.  He 
observed that both sides are working hard to conclude a MCC 
compact and that, once concluded, the compact would greatly 
expand the bilateral relationship.  He also thanked the 
President for accepting his credentials the day after the 
President's return from overseas. 
 
SPEAKER INTERESTED IN MCC, FTA, AND VISAS 
----------------------------------------- 
 
¶4. (SBU) The Ambassador's September 25 call on State Great 
Hural (parliament) Speaker Nyambdorj covered much of the same 
ground, with Nyambdorj urging that the MCC compact be 
completed as soon as possible; ditto FTA, although he also 
made a case for more visas for Mongolian students, business 
representatives, and visitors. 
 
PM EMPHASIZE COMPREHENSIVE PARNTERSHIP AGREEMENT, MCC, AND FTA 
--------------------------------------------- ----------------- 
 
¶5. (SBU) Prime Minister Enkhbold, who returned late September 
25 from his visit to the UNGA and Washington, met with the 
Ambassador the afternoon of September 26.  The PM 
congratulated the Ambassador, adding he hoped the 
Ambassador's expertise in Asian relations would help broaden 
and deepen U.S. relations with Mongolia.  He noted it had 
been 19 years since the U.S. and Mongolia had established 
diplomatic relations and he hoped to expand relations under 
the proposed CPFA as well as through the MCC compact, 
observing that some Mongolians had become skeptical about 
U.S. commitment to concluding the MCC compact.  The 
Ambassador replied that both sides had expressed strong 
political commitment to finish the MCC compact and additional 
 
ULAANBAATA 00000724  002 OF 002 
 
 
efforts were being made to finalize necessary details.  The 
PM noted that he had met President Bush recently during the 
September 19 roundtable on democracy in New York and U.S. 
support was evident for Mongolia's emerging market economy 
and democracy.  The PM also expressed the GOM's desire to 
conclude an FTA, and the Ambassador drew from his recent 
Korean experience regarding the process and required 
preparations for such a strenuous, multi-year negotiation, 
encouraging the GOM to make progress through the TIFA process. 
GOLDBECK