VZCZCXYZ0006
PP RUEHWEB

DE RUEHUM #0375/01 3630715
ZNY CCCCC ZZH
P 290715Z DEC 09
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC PRIORITY 3183
INFO RUEHBJ/AMEMBASSY BEIJING 6589
RUEHMO/AMEMBASSY MOSCOW 2683
RUEHUL/AMEMBASSY SEOUL 3874
RUEHKO/AMEMBASSY TOKYO 3514
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

C O N F I D E N T I A L ULAANBAATAR 000375 
 
SIPDIS 
 
STATE FOR EAP/CM, EAP/K, S/NKP, ISN/NNPN, ISN/NESS, EEB 
ENERGY FOR KAY THOMPSON 
 
E.O. 12958: DECL: 12/29/2029 
TAGS: ECIN EMIN ENRG ETRD PGOV PREL SCUL MG
SUBJECT: MONGOLIA-DPRK ECONOMIC DISCUSSIONS CONTINUE; GOM 
ALSO CONSIDERING OTHER NUCLEAR AND EDUCATION INITIATIVES 
 
REF: EAP/CM 12/23 NIGHT NOTES TO EMBASSY ULAANBAATAR 
 
Classified By: Political Officer Dan Rakove for reasons 1.4 (b) and (d) 
 
¶1. (C) SUMMARY: Dr. UNDRAA Agvaanluvsan, professor of nuclear 
energy issues and policy at Stanford University and newly 
appointed Deputy Director of the in-house think tank of 
Mongolia's National Security Council, informed Embassy 
officers on December 26 that the DPRK and Mongolia continue 
to discuss increased bilateral trade and exchanges.  This 
will be a major topic of discussion during Foreign Minister 
Zandanshatar's visit to the DPRK at the end of January 2010. 
Undraa also discussed a separate effort by her and other 
Stanford faculty to host a US-DPRK-Mongolia trilateral 
meeting in Mongolia in Spring 2010.  Separately, Undraa 
described a proposed Mongolia Nuclear Initiative to establish 
an international uranium enrichment zone that could provide 
nuclear fuel to the region while supporting geopolitical 
stability through Mongolia's neutrality and repudiation of 
weaponization ambitions.  Finally, Undraa expressed a strong 
interest in Peabody-sponsored mining scholarships at the 
University of Arizona.  END SUMMARY. 
 
---------- 
Background 
---------- 
 
¶2. (SBU) Dr. UNDRAA Agvaanluvsaa was recently appointed as a 
Deputy Director of the National Security Council's in-house 
think tank, the Institute for Strategic Studies (ISS).  She 
told Embassy officers on December 26 that beyond her ISS 
duties she is the government's point person on nuclear 
issues.  Undraa is currently a visiting professor at Stanford 
University's Center for International Security and 
Cooperation (CISAC), but will leave the university in 
mid-March due to her new position with ISS.  Though invited 
to join FM Zandanshatar's planned visit to North Korea in 
late January 2010, her teaching obligations through March may 
prevent her attendance. 
 
-------------------------- 
GOM and DPRK Economic Ties 
-------------------------- 
 
¶3. (C) EmbOffs met with Undraa to discuss the FM's upcoming 
visit to North Korea.  Undraa confirmed that FM Zandanshatar 
will visit North Korea, and stated it would likely be in late 
January, following the conference at Davos.  He will likely 
be accompanied by Mongolia's Vice Ministers of Defense, 
Agriculture, and Labor.  In addition to discussing economic 
ties, Undraa described the meeting as an opportunity for her 
government to urge the DPRK to open up.  She recounted that 
before he became FM, the North Koreans told MP Zandanshatar 
that they needed nuclear weapons because they are "cornered." 
 Zandanshatar replied that faced with a similar geopolitical 
situation Mongolia had succeeded through greater engagement 
under its Third Neighbor Policy. 
 
¶4. (C) Heavily reliant upon Chinese labor, Undraa reported 
that Mongolia is interested in bringing in North Korean 
metallurgical experts as well as agricultural workers for 
work in Selenge Province, potentially to ship the resultant 
grain to the DPRK.  Undraa also expressed an interest in 
gaining access to DPRK ports.  The DPRK in turn is interested 
in any available economic exchanges and trade, and has sent 
and plans to continue sending prominent officials to Mongolia. 
 
¶5. (C) Embassy officers shared ref points provided by EAP/CM 
and EAP/K regarding the FM's planned trip to the DPRK.  After 
being demarched, Undraa stated it would be best for Post to 
follow-up directly with the Foreign Minister regarding U.S. 
concerns about the visit to the DPRK since she may not see 
the FM in person before the trip. 
 
-------------------------------------- 
Stanford-Based Initiatives on the DPRK 
-------------------------------------- 
 
¶5. (C) Undraa stated that she and other Stanford faculty are 
also engaged with a couple of nominally private initiatives 
on North Korea.  The first is to organize a trilateral 
US-DPRK-Mongolia meeting in Mongolia in the spring.  She 
attributed this idea to former Secretary of Defense William 
Perry, and spoke of working with professors John Lewis 
(emeritus) and Siegfried Hecker as well.  It is motivated by 
 
the notion that Mongolia enjoys good relations with both the 
US and the DPRK. 
 
¶6. (C) The second initiative is to establish remote 
diagnosing facilities in China and Mongolia for tuberculosis 
in North Korea.  This project is also a product of John Lewis 
and Undraa's discussions.  Lewis previously hosted North 
Korean health officials in the Bay Area for preliminary 
discussions.  He intends to follow up with his DPRK contacts 
as well as with the WHO.  Undraa said that she and her 
Stanford colleagues may follow-up directly with State 
Department and other US officials in Washington regarding 
these two initiatives prior to her departure from the 
university and return to Mongolia in March. 
 
--------------------------- 
Mongolia Nuclear Initiative 
--------------------------- 
 
¶7. (C) Undraa aspires to make Mongolia a supplier of enriched 
uranium to the region.  Whereas current supplies originate 
from Russia or Western countries, Undraa spoke of a Mongolia 
Nuclear Initiative (MNI) to fill a niche as a small, neutral 
country without ambitions for nuclear weapons.  Although 
Undraa allowed that political support for the initiative is 
yet unknown, the MNI envisions an international enrichment 
zone, likely in Mongolia's south or southwest, operated by 
international technical experts and designed largely for 
export to China and through Dalian to Japan if not elsewhere. 
 This proposal is inspired by the IAEA's framework for 
multinational arrangements and discussions with Stanford 
emeritus professor Burton Richter; the broader initiative 
proposes similar international zones in other regions. 
Undraa reported that a January meeting at Stanford's Hoover 
Institution involving professor Thomas Isaacs and U/S Ellen 
 
Tauscher will focus upon the idea of multinational 
arrangements. 
 
--------------------- 
Education Initiatives 
--------------------- 
 
¶8. (SBU) Undraa raised the issue of U.S.-based Peabody 
Energy's efforts to fund scholarships for Mongolian students 
to attend the University of Arizona (UA).  While at Stanford, 
Undraa has served at the Director of the Mongolian-American 
Scientific Research Center (MonAme), which focuses on 
research and training.  Post had heard previously from 
Peabody that they are seeking to fund four bachelor's degree 
scholarships at UA and two master's degree scholarships at 
the Colorado School of Mines, but this was the first 
indication of MonAme's involvement.  According to Undraa, 
MonAme will help identify and recruit Mongolian students, and 
is also working on the visit of Mary Poulton, UA's Dean of 
the School of Mining, from January 8 to 15.  MonAme is also 
participating in the steering committee exploring the pursuit 
of an American University in Ulaanbaatar. 
ADDLETON