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DE RUEHUM #0017/01 0140655
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R 140655Z JAN 08
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RUEATRS/DEPT OF TREASURY WASHINGTON DC
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RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ EPA WASHINGTON DC 0040

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000017 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM AND OES 
STATE PASS USTR 
 
E.O. 12958: N/A 
TAGS: PGOV ECON EAID SOCI SENV MG
SUBJECT: For Mongolia's Green Party, Hope Springs Eternal 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION. 
 
¶1. (SBU) SUMMARY: Mongolia's Green Party hopes for a political 
resurrection in upcoming parliamentary elections, after more than 15 
years of disappointments.  The party's new co-chair, successful 
businessman Dr. D. Enkhbat, feels the Greens could finally benefit 
from widespread anger at the major parties and pick up as many as 
eight seats in the June 2008 elections.  Critics dismiss this as 
wishful thinking, calling Enkhbat another in a long line of 
Mongolian businessman exploiting the political system for private 
gain.  With the exception of its insistence on the closure of most 
small-to-medium gold mining operations in the country on pollution 
grounds, the Green Party takes an unclear stance on many key issues, 
including development of the Oyu Tolgoi copper and gold deposit, and 
how to combat corruption and growing pollution in Ulaanbaatar. 
Enkhbat blames the ruling Mongolian People's Revolutionary Party 
(MPRP) and the Democrat Party (DP) for destroying trust in the 
country's political system, and accuses President Enkhbayar of 
managing a network of corruption, which will not end until he is out 
of power.  END SUMMARY. 
 
Green Dreams 
------------ 
 
¶2. (SBU) In a meeting with Acting E/P Chief, the Mongolian Green 
Party's freshly minted co-chair, Mr. D. Enkhbat, (in the job only 
two months), said his party was undergoing a process of regeneration 
as June 2008 parliamentary elections draw near.  He was confident 
the Greens would secure eight of Parliament's 76 seats as part of a 
"civil coalition" with the Citizens' Will Party, headed by MP and 
now Foreign Minister S.Oyun, and possibly with the People's Party, 
led by MP L.Gundalai.  Enkhbat believes such gains are possible due 
to growing frustration with the Government of Mongolia (GOM) over 
worsening pollution and corruption, as well as increased 
environmental and ecological awareness.  He also thought the Greens, 
as a Mongolian "third way," could provide an attractive alternative 
to the two major parties, but conceded that public distrust of the 
entire political system caused by two decades of MPRP and 
Democrat-led mismanagement and corruption could hinder gains. 
 
¶3. (SBU) Cynics, however, claim that Mr. D. Enkhbat, a millionaire 
and former head of Magicnet, Mongolia's first Internet company, is 
simply a self-promoter and political opportunist, exploiting the 
party's number three listing on the ballot to squeeze himself into 
Parliament.  (Note: Parties are listed on Mongolian ballots based on 
date of original registration, thereby ensuring that the former 
communist MPRP forever maintains pole position.  End Note.)  Cynics 
say winning eight seats is wishful thinking for a party that has 
never succeeded in winning a single seat in any parliamentary 
election. 
 
Policies Unclear 
---------------- 
 
¶4. (SBU) Enkhbat complained that pro-environment stances were now 
fashionable in political circles, and accused other political 
parties of hypocrisy.  These concerns for the environment are 
nothing more than "crocodile tears of those with vested, conflicting 
interests" who have little intention of following through on 
pro-environment campaign rhetoric.  Many parliamentarians, for 
example, own businesses with abominable environmental records, or 
else receive support from such industries. 
 
¶5. (SBU) Even so, the Greens' own support of environmental issues 
appears to have been eclipsed by its focus on ecological and social 
issues.  Enkhbat argued this to be the key to solving many of the 
environmental problems Mongolia now faces.  For example, residents 
of ger (yurt) districts will continue to burn coal and cut down 
trees for firewood if their economic situation remains poor.  But 
when questioned on policies or proposals to improve their living 
conditions, or on the party's plans to fight corruption or find 
solutions to the out-of-control pollution levels in Ulaanbaatar, 
Enkhbat was vague and short on specifics. 
 
On Oyu Tolgoi 
------------- 
 
ULAANBAATA 00000017  002 OF 002 
 
 
 
¶6. (SBU) His abstract, almost philosophical position on the Rio 
Tinto/Ivanhoe Oyu Tolgoi (OT) copper/gold mine deal seemed based 
more on emotion rather than facts.  He said Ivanhoe's former 
President Robert Friedland had poisoned his company's reputation in 
Mongolia after a speech to investors a few years back.  According to 
Enkhbat, in that speech, Friedland seemed to claim that the GOM was 
in his pocket; that Ivanhoe could ride rough-shod over the 
environment in the south Gobi because it was devoid of people; and 
that, anyway, civil society and environmental NGOs were either 
ineffective or non-existent in Mongolia. Enkhbat would not say 
whether he or the Green Party would support the 34% government share 
of the project currently under review by Parliament, or if he 
preferred 50%, or even 100%.  He stressed repeatedly, however, that 
he is a businessman who understands the needs of mining investors. 
 
¶7. (SBU) Enkhbat believes (as do many Mongolians) that the current 
government, riddled with corruption, cannot possibly be trusted to 
strike a fair deal for Mongolia on OT or any other mining 
development.  He accused President Enkhbayar of overseeing a 
"network of corruption" and said the Prime Minister, be it the 
incumbent Bayar or his predecessor, Enkhbold, was powerless to 
affect it, despite their best intentions.  As long as Enkhbayar was 
in power, he said, nothing could be expected to change. 
 
Seeking Closure Of Artisanal, Small, 
and Medium-Sized Gold Mines 
---------------------------------- 
 
¶8. (SBU) On one position he was adamantly clear: the Green Party 
would call for the closure of all gold mines except for the handful 
that are equipped with modern mining technologies such as Canadian 
Boroo Gold.  Gold mining, particularly artisanal mining, was 
destroying the environment and causing social upheaval, he said. 
 
Fewer But Unrelentingly Green, 
Even After All These Years 
------------------------------ 
 
¶9. (SBU) Mongolia's Green Party was formed shortly after the fall of 
the Socialist system in 1991.  Enkhbat stated that in the early 
1990s, party membership rose to 18,000 members, but this number is 
probably inflated (a common practice among all political parties in 
Mongolia).  Membership numbers were decimated after an ill-fated 
union with the Democrats in 1996.  When the coalition broke apart, 
the Greens were only a stump of their former selves as members 
remained with the Democrats.  Another coalition with the Civil Will 
Party before the 2000 elections, under the banner "Environmentally 
Friendly and Ethically Clean!", also failed after an MPRP landslide 
victory in parliamentary elections.  Today, membership stands at 
about 3,000, mostly die-hard Green Party faithful from the 1990 
heydays.  The party hopes to repeat the success of their brethren in 
Germany and Sweden, and many in the party's leadership have studied 
and/or lived in Germany. 
 
Goldbeck