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P 250901Z SEP 09
FM AMEMBASSY ULAANBAATAR
TO SECSTATE WASHDC PRIORITY 3041
INFO AMEMBASSY NEW DELHI PRIORITY 
AMCONSUL MUMBAI PRIORITY 
AMEMBASSY BEIJING 
AMEMBASSY MOSCOW 
AMEMBASSY SEOUL 
AMEMBASSY TOKYO 
NSC WASHINGTON DC

C O N F I D E N T I A L ULAANBAATAR 000283 
 
 
STATE FOR EAP/CM AND FOR SCA/INS 
 
E.O. 12958: DECL: 09/25/2019 
TAGS: PREL SCUL ENRG ECON MG
SUBJECT: MONGOLIAN PRESIDENT TALKS EDUCATION, URANIUM, AND 
BUDGETARY ASSISTANCE IN INDIA 
 
Classified By: Political Section Chief Andrew K. Covington, Reasons 1.4 
 (b) and (d) 
 
¶1. (C) Summary: We met with Director Ganbold of the Asia 
Department at the Ministry of Foreign Affairs and Trade 
(MFAT) on September 22 to discuss President Elbegdorj's 
recently completed travel to India.  This was Elbegdorj's 
first trip abroad as president.  Ganbold stated the primary 
focus of the trip was educational exchanges and 
opportunities, but that trade (especially regarding uranium), 
budgetary assistance, investment, and agriculture also 
figured prominently.  Mongolia and India signed a memorandum 
of understanding on the supply of uranium to India and will 
continue to discuss the role India may play in Mongolia's 
nuclear energy plans.  Ganbold also confirmed that India is 
providing $25 million in soft loans to Mongolia for budget 
support.  End Summary. 
 
---------------------- 
BACKGROUND ON THE TRIP 
---------------------- 
 
¶2. (SBU) President Elbegdorj traveled to New Delhi, Agra, 
Gaya, and Mumbai in India from September 13 to 17 as his 
first official travel abroad since his June 18 inauguration. 
Accompanying him were his wife, Bolormaa; Foreign Minister 
Batbold; Education, Culture and Science Minister Otgonbayar; 
Presidential Chief of Staff Dorligjav; National Security 
Advisor Batchimeg; Public Relations Advisor Ganbaatar; 
Security and Foreign Policy Standing Committee Chair and MP 
¶Z. Enkhbold (DP); Mongolia-India Interparliamentary Group 
Chair and MP D. Odbayar (MPRP); former PM and current MP 
Amarjargal (DP), and MFAT Asia Department Director Ganbold. 
 
¶3. (C) Ganbold confirmed that the selection of India as 
Elbegdorj's first destination as president was officially due 
to India being the first country to invite Elbegdorj for an 
official visit after his election, which conveniently 
eliminated the problem of choosing between Mongolia's two 
giant neighbors - Russia or China - for his first official 
foreign visit.  (Note: Elbegdorj departed Mongolia for the 
UNGA on September 20 on his second official trip abroad.  End 
Note.) 
 
--------------------- 
EDUCATIONAL EXCHANGES 
--------------------- 
 
¶4. (SBU) Ganbold stated that educational and cultural 
exchanges were the central focus of the trip.  A key element 
was Mongolia's request for funding to expand enrolment and to 
purchase a new building for the Indian-Mongolian joint school 
in Ulaanbaatar, which India agreed to do.  The approximate 
cost to the GOI will be $1 million.  Until this month, the 
school covered grades 8-12 only.  With the agreement now in 
place, the school has mustered its first class of first 
graders and will continue to do so in coming years until 
grades 1-12 are filled out, with peak enrollment projected to 
be 640 students.  By comparison, the International School of 
Ulaanbaatar has a K-12 student body population of 
approximately 250. 
 
¶5. (SBU) India will also expand a program in which Mongolian 
students visit India for periods of two weeks to six months 
to engage in focused study of information technology, 
English, engineering, and other subjects.  India has doubled 
these exchanges to 120 per year.  Some Mongolians have noted 
to us that India's student visa requirements are less onerous 
than those of the United States and other more developed 
countries. 
 
¶6. (SBU) Ganbold said the GOM is seeking that information 
technology figure prominently in educational exchanges -- 
specifically that such exchanges provide the seed human 
capital and infrastructure investments that can grow IT 
parks, software firms, and outsourcing to Mongolia.  He said 
the Indians responded positively to Mongolian plans to 
partner with India to this end and that the two sides may 
integrate such plans into a memorandum of understanding that 
is intended to cap the bilateral talks to take place in Delhi 
in December (see para 7). 
 
--------------------------------- 
COMMERCIAL ENGAGEMENT AND URANIUM 
--------------------------------- 
 
¶7. (SBU) Ganbold stated the two sides agreed to convene an 
"intergovernmental economic committee" in Delhi in December. 
The meetings will focus on ways to open up trade, investment, 
and agriculture cooperation.  A similar session was held in 
Ulaanbaatar in the past but was "still modest," according to 
Ganbold, and that both sides are seeking to expand the 
significance and scope of the exchange.  Ganbold said 
Education, Culture and Science Minister Otgonbayar will head 
the Mongolian delegation in December. 
 
¶8. (C) Ganbold also discussed the MOU Mongolia signed to work 
toward supplying uranium to India.  Ganbold described this as 
a "framework document" designed to clarify intent but not to 
specify how such sales will be carried out (whether through 
Indians who will operate mines in Mongolia or through third 
countries that will extract uranium).  At a separate event 
late last week, the Indian Charge d'Affairs in Ulaanbaatar 
told Econoff that he did not expect any of these specific 
decisions to be made soon, but that he had already been 
contacted by the Russian Embassy to discuss possibilities for 
exporting Mongolian uranium to Russia for processing and 
later re-export to India. 
 
¶9. (C) Ganbold stated the Indians approached the Mongolians 
with plans to work together on civil nuclear energy 
cooperation.  India is aware that Mongolia's coal power 
plants are aging, too few in number, and in need of upgrades, 
and that Mongolia possesses some six percent of the world's 
uranium.  The GOI has therefore invited Mongolians to India 
on study programs that provide the full range of expertise 
required to develop a nuclear energy industry in Mongolia, 
from uranium exploration and extraction to nuclear reactor 
design.  When asked how soon Mongolia might be in a position 
to produce nuclear energy, he said at least 15 or 20 years 
would be necessary. 
 
¶10. (C) Comment: Mongolia-India diplomatic relations date 
back nearly 55 years and have been particularly robust in 
Mongolia's democratic era, thanks largely to extensive 
historical and cultural ties, particularly through the link 
of Buddhism.  The departing Indian Ambassador to Mongolia, 
Yogeshwar Varma, was heavily engaged in broadening the 
relationship.  One of his predecessors, the late Ambassador 
Bakula,  established a Buddhist monastery and meditation 
center adjacent to the historic Gandan Monastery in downtown 
Ulaanbaatar.  The two sides are seeking to expand the 
commercial side of the relationship, in particular through 
the lens of uranium.  The educational aspect of this latest 
visit, with its IT and English focus, is geared toward 
eventual expansion of commercial relations.  Ganbold 
indicated the two sides will leverage the upcoming 55th 
anniversary to arrange additional visits and conferences to 
promote educational and commercial links.  End Comment. 
 
 
HILL