VZCZCXRO4333
RR RUEHLMC RUEHVK
DE RUEHUM #0006/01 0040041
ZNR UUUUU ZZH
R 040041Z JAN 08
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC 1784
INFO RUEHUL/AMEMBASSY SEOUL 3114
RUEHLO/AMEMBASSY LONDON 0246
RUEHML/AMEMBASSY MANILA 1590
RUEHBJ/AMEMBASSY BEIJING 5925
RUEHBK/AMEMBASSY BANGKOK 1676
RUEHKO/AMEMBASSY TOKYO 2810
RUEHSH/AMCONSUL SHENYANG 0426
RUEHVK/AMCONSUL VLADIVOSTOK 0210
RUEHMO/AMEMBASSY MOSCOW 2044
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RHMFIUU/HQ EPA WASHINGTON DC 0032
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHPH/CDC ATLANTA GA

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000006 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM and EAP/EX, 
MANILA AND LONDON PASSS TO ADB, EBRD USEDS 
BANGKOK FOR USAID RDMA 
 
E.O. 12958:  N/A 
TAGS: MG
SUBJECT: WARNING: TAINTED LOCAL VODKA KILLS 11 IN MONGOLIA 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION. 
 
1.(SBU) SUMMARY, INTRODUCTION, AND COMMENT: During New Year's 
celebrations in Mongolia, eleven people died, four remain in 
critical condition, and scores were hospitalized of the 60-plus 
persons affected from drinking methanol-tainted vodkas produced by 
"Aziin Chono" or Asian Wolf (AW), an alcoholic beverage production 
company located in the Baganuur district east of Ulaanbaatar. The 
Government of Mongolia (GOM) responded with great urgency to this 
serious event.  Its emergency and law enforcement agencies, 
responding to quick, decisive Cabinet leadership, coordinated their 
activities effectively by identifying and isolating tainted 
products, apprehending potential culprits quickly, and swiftly 
notifying the public of the problem.  However, some officials are 
concerned that the Cabinet-mandated  certification of all alcohol 
products sold in Mongolia by January 20 is premature and beyond the 
GOM's capacity to execute.  It remains to be seen whether the GOM 
may have over-reacted with total ban on all vodka sales until safety 
can formally assured of each product as well as its demand for 
complete certification and. At the moment, no one is complaining of 
not being able to imbibe, although retailers and customers may 
become impatient if the ban extends into the February 8-10 Lunar New 
Year. END SUMMARY, INTRODUCTION, AND COMMENT. 
 
Cheap Vodka The Wrong Holiday Spirit! 
------------------------------------- 
 
¶2. (SBU) According to the Mongolian State Specialized Inspection 
Agency (SSIA), AW bottles seven types of cheap vodkas (Tugruk 1,200 
or about US$1 a bottle), heavily in demand during the holiday period 
and primarily distributed in eastern Mongolia.  The SSIA reported 
that these bottled vodkas contained methanol spirits normally used 
for non-food, industrial purposes. The allowed level of methanol 
spirit in beverage is 0.05 to 0.1 %, but these vodkas contained 
methanol amounts ranging from 9.5% to 31%. 
 
AW Production Manager Reportedly the Perpetrator; 
Methanol Supposedly Traced to Chinese Traders 
--------------------------------------------- ---- 
 
¶3. (SBU) Mongolian officials did not consider Asian Wolf's Director 
a suspect in the poisonings as the Director himself of Asian Wolf 
Company was poisoned by his own vodka and remains hospitalized. 
Instead investigators have turned to a production manager, a 
relative of the poisoned Director, who admitted to investigators 
that that tainted vodkas were made of two 600 liter barrels of 
spirits purchased by brothers called Bayarbaatar and Bayarsaikhan. 
These brothers stated that they bought those spirits from some 
nameless Chinese traders two years ago. TV reports claim that the 
production manager was supposed to have used a more expensive 
ethanol spirit to produce the vodkas but employed the cheaper 
spirits sold by the two brothers  without the knowledge of the Asian 
Wolf's senior management. The police are continuing their 
investigation and have detained the brothers for further 
questioning. 
 
Swift Notification 
------------------ 
 
¶4. (U)The SSIA warned the public, especially those in eastern 
provinces, by radio, TV, and papers, not to buy any vodka produced 
by Asian Wolf Company. Fortunately, no cases of methanol poisoning 
have been reported in the eastern provinces. 
 
Cabinet Takes Specific, Decisive Action. . . 
-------------------------------------------- 
 
¶5. (SBU) The seriousness of the issue was highlighted by direct 
Cabinet-level involvement in the case. During the most recent 
Cabinet meeting (January 2), the Cabinet ordered that the GOM 
provide necessary medicines to the victims; find and destroy all 
tainted vodkas immediately; inspect all alcoholic beverages for 
 
ULAANBAATA 00000006  002 OF 002 
 
 
quality and health before January 20; cease issuance of special 
license to produce alcoholic beverages and inspect operations of 
alcohol production companies; and establish a working group to 
prepare proposals on how to improve the control of spirit product 
imports, distribution and concepts on food safety. That working 
group will be headed by Deputy Prime Minister Enkhbold. 
 
. . .But are Cabinet Mandates too tough? 
---------------------------------------- 
 
¶6. (SBU) However, our contacts at the SSIA report that this Cabinet 
mandate is a daunting task.  There are 114 vodka producing companies 
in Mongolia.  In every aimag there are at least 2-3 alcoholic 
drink-making factories, very often owned by local governors or 
officials in the name of their family members who have received 
special licenses to produce vodka from officials who have vested 
interests in the continued production of spirits. Cheap local vodka 
is reportedly often made from illegally imported Chinese spirits, 
many often used for technical and industrial purposes. In addition, 
many firms import wines and spirits, which presumably will have to 
be tested.  Given the sheer volume of products, it is unlikely that 
the inspection apparatus can comply with the January 20 deadline. 
In fact, a comprehensive inspection may take months, and given that 
the Lunar New Year's celebration requires the consumption of vodka 
and other potables, it is unlikely that the GOM will be able to hold 
line on a comprehensive ban on all alcohol products. 
 
Certification Requirements and Sales Ban: 
GOM's Reaction An Over-reaction? 
----------------------------------------- 
 
¶7. (SBU)  Officials said that each barrel could yield some 3,000 
liters of vodka.  Asian Wolf brands are bottled in half-liter 
containers, suggesting a production run of 12,000 bottles of pure 
methanol-poisoned vodka, though the figure could be much higher 
given it was apparently diluted with other liquids.  SSIA officials 
and the State Police ordered all Asian Wolf products seized.  In 
addition, officials banned all alcohol sales for the Baganuur 
District of Ulaanbaatar where most of the fatalities and victims 
lived.  The government has banned the sale of vodka in the capital 
city for an indefinite period. As of January 2, 2007 about 300,000 
bottles of alcoholic drinks in shops were sealed off and not for 
sale.  (Note:  An Emboff observed the liquor area of one supermarket 
on January 1 had been cordoned off and bottles were being removed 
from the shelves.) However, sources have told our Commercial Officer 
that despite the ban, under the table sales of certain brands of 
canned and bottled alcoholic beverages are occurring at bars and 
retail outlets. 
 
Minton