VZCZCXRO2876
RR RUEHLMC
DE RUEHUM #0454/01 2190058
ZNR UUUUU ZZH
R 070058Z AUG 07
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC 1366
INFO RUEHKU/AMEMBASSY KUWAIT 0018
RUEHUL/AMEMBASSY SEOUL 2884
RUEHBJ/AMEMBASSY BEIJING 5711
RUEHKO/AMEMBASSY TOKYO 2600
RUEHML/AMEMBASSY MANILA 1430
RUEHBK/AMEMBASSY BANGKOK 1508
RUEHLO/AMEMBASSY LONDON 0171
RUEHRH/AMEMBASSY RIYADH 0017
RUEHGB/AMEMBASSY BAGHDAD 0057
RUEHAM/AMEMBASSY AMMAN 0002
RUEHEG/AMEMBASSY CAIRO 0008
RUEHDO/AMEMBASSY DOHA 0010
RUEATRS/DEPT OF TREASURY WASHDC
RUCPODC/USDOC WASHDC 1349
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0670
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000454 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO EAP/CM, NEA/ARP, AND CA/OCS 
STATE PASS USAID FOR ANE FOR D. WINSTON 
DOC FOR ITA AND ZHEN GONG CROSS 
TREASURY FOR TT YANG 
BANGKOK AND MANILA FOR AID 
LONDON AND MANILA FOR USEDS TO EBRD, ADB 
 
E.O. 12958: N/A 
TAGS: EAID PREL EINV ECON PGOV MG KU
SUBJECT: ON A FALCON'S WING: THE EMIR OF KUWAIT VISITS MONGOLIA 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION 
 
¶1. (SBU) SUMMARY. The Emir of Kuwait met with senior Mongolian 
officials regarding trade, cultural, and security affairs, before 
taking a vacation in the Mongolian countryside.  Although the 
Mongolian-Kuwait bilateral trade relationship remains minuscule, 
mostly trade in falcons, Kuwait has provided or committed to provide 
nearly US$30 million in aid to Mongolia in the form of grants and 
soft loans for infrastructure and construction projects. END 
SUMMARY. 
 
Emir's Official and Ceremonial Meetings 
--------------------------------------- 
 
¶2. (SBU) The Emir of Kuwait, Sheikh Al-Ahmad Al-Jabar Al-Sabah, paid 
a state visit to Mongolia on July 30, 2007, before taking off for 
short holiday in the Mongolian country-side from July 31 thru August 
¶3.  The Emir held a day's worth of meetings with the Ministers of 
Trade and Industry, Foreign Affairs, and Finance, as well as 
Mongolian President N. Enkhbayar.  After these meetings, the Emir 
laid a wreath at the base of Mongolia's revolutionary hero, 
Sukhbaatar, and paid his respects at the recently completed monument 
to Chinggis Khaan and his family. (Note: In 1258, Chinggis Khaan's 
grandson, Khulagu Khan, obliterated the Abbasid Caliphate and 
leveled Baghdad, ending the Islamic Golden Age.) 
 
¶3. (SBU) Mongolian news reports and our official contacts did not 
report on the Emir's countryside progress. However, an Israeli 
distributor of Speed-Queen washers and dryers reported to Commoff 
that her firm had been contracted to provide industrial size laundry 
equipment for the washing needs of the Emir and his entourage, who 
had commissioned a series of palatial gers (felt tents or yurts, in 
Russian) for the Emir's visit. 
 
Mongolia With Kuwait Against Iraq; Bond of Falcons 
--------------------------------------------- ----- 
 
¶4. (SBU) Mongolia and Kuwait established diplomatic relations in 
1975 but relations remained inert until 1990.  Two factors caused an 
up-tick. First, Mongolia lent "moral" support to Kuwait during the 
Iraqi invasion, raising Mongolia's profile before the Kuwaitis. 
Second, by the early 1990's Mongolia had become (and remains) a 
prime source of hunting falcons for Kuwait and other Gulf States. 
(Note: The current export price for a Mongolian falcon, a GOM-run 
monopoly, hovers around US$7,000, with some 40-50 birds being 
exported each year.) 
 
Agreements Signed But Details Thin 
---------------------------------- 
 
¶5. (SBU) During the July 30 sessions, Kuwait and Mongolia signed 
agreements to facilitate intergovernmental relations, agriculture, 
trade, culture, education, and technology.  However, details on what 
sort of trade, cultural, and technology would be included in these 
agreements are thin on the ground. (Comment: The actual level of 
trade between Mongolia and Kuwait remains extremely small - perhaps 
no more than US$350,000 for the falcons; and so, for all the talk of 
trade, neither the Kuwaitis nor the Mongolians could nor would 
provide much detail on what sort of items, beyond falcons, would 
become mainstays of a robust trade relationship.  Mongolia has 
sought to export halal meats processed by its western Muslim Kazakh 
minority but has yet to overcome transportation and 
refrigeration/sanitation requirements.) 
 
Of Trade and Aid 
---------------- 
 
¶6. (SBU) Although trade volumes remain low, Kuwait has provided both 
 
ULAANBAATA 00000454  002 OF 002 
 
 
soft loans and grants to the GOM.  Loans of approximately US$20 
million have covered the cost of a hydroelectric plant in western 
Mongolia and for new paved roads in central Mongolia. To our 
knowledge, the Kuwaitis funded these projects without conducting 
much due diligence into the actual need for them; rather they simply 
responded to GOM requests. In addition to the loans, Kuwait has 
granted the GOM US$12 million to for a new building to house 
Mongolia's Parliament. (Note: Before the Emir's visit, Mongolian 
officials, according to several press reports, had begun to opine 
that the US$12 million was insufficient to build a new parliament; 
and so, reportedly seem to have struck some deal with the Government 
of Turkey to fund the rest of the construction.) 
 
¶7. (SBU) In addition, Kuwait and Mongolia agreed to deepen 
cooperation between the two nations within United Nations frameworks 
and those of other international organizations, especially those 
committed to enhancing security in the Asia Pacific region. Kuwait 
also offered to provide support for a falcon breeding program and 
for assisting Mongolia to combat such natural disasters as severe 
winters and drought. (Note: One wag wondered if Mongolia would be in 
a better position to advise Kuwait on severe winters, but agreed 
that Kuwait certainly cornered the market on droughts.) 
 
Minton