Foreign Blue Book Eng by variablepitch339

VIEWS: 75 PAGES: 55

									MONGOLIAN FOREIGN POLICY BLUE BOOK

Ulaanbaatar 2000

CONTENTS FOREWORD BY MINISTER CHAPTER ONE 1. Mongolia‘s international environment 2. Basic goals of Mongolia’s foreign policy 2.1.Global society and culture of cooperation 2.2.Ensuring democracy, human rights, human security 2.3.Developmental diplomacy 2.4.Human capital development 3. Foreign policy strategy 3.1.Bilateral relations 3.2.Multilateral relations and processes 3.3.Foreign and economic cooperation 3.4.Information diplomacy CHAPTER TWO 1. Relations of priority importance 1.1. Russian Federation 1.2. People‘s Republic of China 1.3 United States of America 1.4 Japan 2. Relations with countries of Asia Pacific 2.1. ROK and DPRK 2.2. India 2.3. Canada 2.4. ASEAN countries 2.5. Australia
This Blue Book has been issued by the Ministry of External Relations of Mongolia in June 2000 in Mongolian and English. The Blue Book was prepared by the Policy Planning and Coordination Department, Ministry of External Relations. Editors acknowledge the financial support for publication rendered by the Mongolian Ambassador in Cairo K. Sairaan.

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3. Relations with European countries 3.1. Federal Republic of Germany 3.2. United Kingdom of Great Britain and Northern Ireland 3.3. France 3.4. Scandinavian countries 3.5. European Union 3.6. Countries of Central and Eastern Europe 3.7. Turkey

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4. Central Asian countries 5. Middle East 6. Latin American countries CHAPTER THREE 1 . United Nations 1.1. Disarmament 1.2. Economic and Social Development 1.3. Environment 1.4. Human rights 2. ASEAN Regional Forum (ARF) CHAPTER FOUR 1. Foreign trade policy 1.1. Purpose of foreign trade policy 1.2. General principles 1.3. Trade policy and practical operations 1. 4. Sector policy 1.5. Multilateral cooperation 1.6. Regional and bilateral cooperation 2. Developmental cooperation policy 2.1. Foreign aid receiving policy 2.2.Present institutional arrangements for foreign aid coordination, information and monitoring 2.3. Measures needed for better foreign aid coordination and management 2.4. Aid utilization and external financing requirements 3. Foreign investment promotion policy 3.1. Investment promotion conditions and environment 3.2. The aim and purpose of the foreign investment promotion policy 3.3. Current situation of foreign direct investment 3.4. Internal legal environment 3.5. External legal environment Appendices

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FOREWORD BY MINISTER I am pleased to present to you this very first edition of Mongolia’s Foreign Policy Blue Book. This Book is the first ever attempt to introduce to the interested public both at home and abroad the goals and priorities of Mongolia’s foreign policy as defined and practiced at the turn of the 21st century. As in many other parts of the world, Mongolia’s foreign policy of the past decade has been profoundly affected by the end of the bipolar confrontation, the country’s embrace of democracy, human rights and market economy, and the emerging dynamics of globalization. In the face of evolving political and economic realities in the world and the growing complexity of issues related to peace and development, Mongolia has chosen to open herself up to the broader world by strengthening her bilateral ties and engaging more actively in various multilateral processes. It is my firm belief that only enhanced cooperation with others, including cooperation with civil societies, can best serve our goal of advancing our small-and-developing country perspective. Mongolia’s multi-pillared foreign policy which took shape in the 1990s signified our desire to maintain balanced and good-neighborly relations with our neighbors, Russia and China, build closer relations with such important nations as the USA, Japan, Germany, the ROK, and many other countries, and take a more active part in global and regional efforts aimed at preserving peace and security, promoting development and strengthening democracy. Our recent membership in such organizations as the WTO and the ASEAN Regional Forum, our active work within the United Nations serve as important avenues for advancing these goals. To us, the Mongols, the blue color has always had strong association with Mongolian statehood. Since time immemorial Mongolia was called the Land of the Eternal Blue Sky. And I see some symbolism in the fact that our Foreign Policy Book should have been called a Blue Book. I am confident that this book will be of help to all those who are interested in Mongolia, and I am sure that many more Blue Books will follow in the years ahead to keep the public informed of what the Mongols are doing to preserve their national security and advance their national prosperity.

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Minister for External Relations

Nyamosor Tuya 2000-06.20

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MONGOLIAN FOREIGN POLICY BLUE BOOK CHAPTER ONE 1. MONGOLIA’S INTERNATIONAL ENVIRONMENT Active, visionary foreign policy pursued by Mongolia, continuity and coherence of its diplomatic efforts was a major contributing factor that enabled the country to consolidate its independence and sovereignty throughout the XX century. It maintained the above features of the foreign policy since the 1990s and as a result Mongolia is entering the new century with restored national pride and firmly ensured place in the world politics. XXI century – century of globalization, universality of democracy, rapid development of science and technology offers historic opportunities to Mongolia. Relatively favorable external environment opened broad perspectives for pursuing an independent and multi-pillared foreign policy. A policy that truly upholds Mongolia’s national interests, enables to accelerate its economic development and ensure its national security. New progress in information technology provides an opportunity to overcome adversities of land-locked location and develop rapidly relying on the intellectual capacity of the Mongolian people. On the other hand, non-traditional threats that have a cross-border impact are becoming increasingly dangerous. Along with the taditional threats such as the proliferation of weapons of mass destruction and ballistic missile technology, ethnic disputes and conflicts, an array of non-traditional threats such as international terrorism, organized crime, drug trafficking, environmental degradation, population migration, global climate change constitute an increasing danger to regional and international stability. Thus the past decade while presenting historic opportunities to determine our foreign policy goals independently it also has brought the greater 6 7

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challenge of making fuller use of the present favorable conditions. Under these circumstances an active, innovative and rational foreign policy is the main instrument for safeguarding the country’s national interests and ensuring advancement of the Mongolian people. Mongolia is entering the XXI century confident in her capacity to address the challenge, make full use of the new opportunities, optimistic in her future, and accordingly hereby is charting out the basic goals and the directions of her foreign policy activities. 2. BASIC GOALS OF MONGOLIA’S FOREIGN POLICY In the new century Mongolia will continue to adhere to the principles laid down in the Concept of National Security and the Concept of Foreign Policy adopted by the State Great Hural (Parliament) of Mongolia in 1994. These principles will serve as the stable and long term basis of its foreign policy. Indoing so we closely follow the provisions of the Concept of foreign policy which says that “In formulating Mongolia`s foreign policy and determining its priority directions and objectives, flexible approach shall be applied, paying close attention to the development of international relations and to the regional and world political situations”. On the one hand, advance of globalization, increasing interdependency in all parts of the planet, spread of democratic ideals, the technological progress and rapid development of information technology, on the other hand deep political, social, economic transformation in Mongolia, determine the contents of the foreign policy and diplomatic activities, aimed at ensuring security and prosperity of the country. 2.1. Global society and culture of cooperation As a result of unprecedented progress in information technology access to and the availability of information increased, activities of civic societies gained momentum. Today when mankind is faced with a num8

ber of trans-boundary economic, social and environmental problems culture of mutually beneficial cooperation has acquired an outstanding importance. Hence, the Concept of Foreign Policy emphasizes that Mongolia‘s “foreign policy objectives reside in …following the trends of advancement of human society, maintaining friendly relations with all countries, strengthening its position in the international community”. The effects of globalization are increasingly felt in Mongolia, for example on international arena the evolutionary changes unfolding in political, social, economic, military and environmental fields in the AsiaPacific region impact directly or indirectly on Mongolia. At present the choice before us is not whether Mongolia will participate or not in globalization process, on the contrary, the question is how to improve our competitiveness in order to enter global relations in the increasingly interdependent world. The main objective of government policy, including the foreign policy, is to seize the opportunity to accelerate economic and social development of the country through devising the means of the most effective participation in the process. One of the priorities of our foreign policy is to ensure the security and prosperity of Mongolia … “by forming a network of relationships based on political, economic other interests with influential countries in the region and in the world,” and by promotion development co-operation. 2.2. Ensuring Democracy, Human rights and Human security “Ensuring the existence of the Mongolian people and their culture” is defined as a vital national interest of Mongolia in the Concept of Foreign Policy. It reconfirmed democracy and respect of human rights as the irreversible choice made by the Mongolian people. Therefore, one of the priorities of the foreign policy is contribute to ensuring human security, development of civil society, promotion of human dignity and the rule of law in Mongolia. NGOs and 9

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individuals will play a very important role in the implementation of this objective and the government will assist them in every way in area of foreign relations. 2.3. Developmental Diplomacy

Effective participation in the process of globalization, overcoming challenges through cooperation with other countries, consistency in enhancing democracy and human rights, open and free economy are the main objectives before us. To achieve these ends, Mongolia pursues multi-pillared foreign policy.

An important objective of the foreign policy is to assist private businesses in a comprehensive manner, bearing in mind the significance of the co-operation with private entrepreneurs in addressing many developmental issues. Expanding exports and foreign investments are important means of accelerating the country’s development. The government is keen to create more favorable conditions for businesses in Mongolia for penetrating new export markets and strengthening its position in already existing markets through foreign trade and investment policies by creating an open and private sectorled economic system and an environment conducive to fair and healthy competition. 2.5. Human Capital Development XXI century is the information technology century. Consequently, a development strategy based on knowledge and intellectual potential is the most promising strategy. In the new century, the pace of economic development of the nations will be determined to a greater degree not by its geographic location or the abundance of natural resources but by the education level of its population and rationality of its utilization. Hence, information technology opens up to the land-locked Mongolia, new opportunities to speed up its economic development through expansion of its foreign trade, cultural and humanitarian exchanges, making fuller use of intellectual capacity of its people. Therefore, it is clear that development of human resources and improvement of education of its people constitute one of the foundations for Mongolia’s future development. Thus this objective is an important goal of the foreign policy.

3. FOREIGN POLICY STRATEGY 3.1. Bilateral relations The foreign policy strategy of Mongolia is both multi-pillared and multidimensional. This strategy contains the following goals. Mongolia will develop and expand its friendly relations with the Russian Federation and the People’s Republic of China on the principles of good-neighborliness, mutual benefit and equality, in a balanced manner on a long-term basis. This is a priority of our foreign policy. In the framework of the multi-pillared foreign policy Mongolia strives, first and foremost, to develop its relations with the global and regional powers and befriend with as many countries and supporters as possible. Moral, political, financial support of industrialized states, such as the United States of America, Japan are called to play an exceptionally important role in consolidating the new economic and social achievements to speed up the transition into the market economy. Therefore, deepening political dialogue and economic cooperation with the United States of America, developing relations of comprehensive partnership with Japan, expanding our relations with members of the European Union such as the Federal Republic of Germany, Great Britain, France among others are the priorities of our foreign policy. Mongolia is a North East Asian country and the developments on the Korean peninsula continue to have a direct impact on Mongolia’s se11

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curity. As a country that enjoys good and stable relations with both Koreas, Mongolia can and should contribute to the consolidation of stability and peace in the sub-region. Importance is given to the intensification of our relations in political, economic and social sectors with the Republic of Korea. Particular significance is attached to the stable development of long-standing relations with the Democratic People’s Republic of Korea. Mongolia devotes special attention to the expansion of historically important and rich relations with Republic of India and with countries of Asia Pacific, in particular, ASEAN members, Canada, Australia. By improving contacts with the Central and Eastern Europe with which Mongolia enjoys traditional ties it will open new export markets and new sources of investment. Mongolia attaches special significance to the renewal of trade and economic relations with the members of the Commonwealth of Independent States, in particular with Central Asian States that are embarked on the road of political and economic transition and have been for many years traditional export markets of Mongolia. In our relations with these states Mongolia, while keeping and strengthening the past positive heritages, adopts a flexible attitude taking into account the potential of developing our relations in the new circumstances. 3.2. Multilateral relations and processes Mongolia’s active participation in multilateral processes and international economic organizations such as the activities of the United Nations, World Trade Organization and ASEAN Regional Forum is an essential prerequisite for the consolidation of its international position and the advancement of its national interests. We believe that the processes unfolding in North East Asia will have 12

deep imprints on the national security of Mongolia. Increased cooperation among the influential powers of the region during the past few years is highly encouraging. Exchange of summit visits demonstrates the outstanding importance of dialogue and mutual cooperation. Mongolia firmly believes that through both bilateral efforts and multilateral negotiations we can make our own contribution to insuring the stability in the region. In doing so Mongolia will strive towards extensive utilization of the first and second track dialogue mechanisms, actively support projects aimed at creation of transport, communications and energy networks, actively participate in regional cooperation on defusing the effects of world climate changes and prevention of environmental pollution. Contributing to the strengthening and implementation of international arms control regime will remain a strategic goal of Mongolia. Mongolia is a party to the Nuclear non-Proliferation Treaty, the Conventions on Destruction of Chemical and Bacteriological Weapons, the Comprehensive Nuclear Weapons Test Ban Treaty and a firm supporter of the nonproliferation regime. Therefore, Mongolia holds the view that the consistent implementation of these important Treaties will play a significant role in safeguarding of regional peace and stability.

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3.3. Foreign and economic cooperation Foreign trade, investment and development cooperation have become one of the major factors contributing to the generation of the national wealth and new jobs. The government strives to create favorable market environment for producers, service providers and entities involved in foreign trade. Customs tariffs, domestic taxes and fees will serve as a means of insuring an optimal interrelationship between foreign and domestic markets. Mongolia as a member of the World Trade Organization (WTO) supports trade liberalization that became a prevailing global tendency and policy. In the pursuit of the policy of trade liberalization Mongolia, while taking into account specific requirements of the national development, seeks to enjoy fully special and differential treatment granted to developing countries in accordance with the WTO decisions and multilateral trade agreements. Incorporating into the trade policy the means and methods of promoting the imports that would encourage the introduction of the modern technologies of manufacturing and services is of great significance for supporting the economic growth. Based on the relatively high education level of the population Mongolia also seeks to expand and diversify the services sector (e.g. banking, financing, insurance, auditing, tourism etc.), while increasing its share in the GDP. Mongolian exports may be diversified through the development of education and culture, which could in turn be achieved through the endeavor to attract research and studies by foreign scholars and students on the basis of the improved education program and standards, as well as the provision of intensive support to the national arts and culture, science and information technology development. 14

The Government in utilizing the export promoting mechanisms, such as loan guarantees, soft loans, tax holidays and relieves, government procurement and other financial support, shall take into consideration the legal rules and regulations of the WTO governing the subsidies. 3.4 Information diplomacy The government attaches a significance to expanding the knowledge by the Mongolian public of the objectives of the country’s foreign policy and activities of its diplomatic service as well as enhancing an accurate and sound understanding by the outside world about this small country. Public diplomacy efforts aim at increasing mutual understanding between Mongolia and other countries, enhancing our understanding about foreign entities and the public, informing them about Mongolia. Diplomatic and consular missions of Mongolia abroad undertake various activities in this area with the assistance of Mongolian citizens, organizations and local public. Implementation of the basic objectives of Mongolia’s foreign policy is based not only on the activities of the government agencies but also rely extensively on the network of relations and cooperation between private citizens, non-governmental organizations and business people. Therefore, the government attaches a special focus to supporting the cooperation between private citizens, NGOs and business people.

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CHAPTER TWO
The Chapter 2 is mainly devoted to bilateral relations. Major dimensions of Mongolia’s external relations such as priority relations with Russia, the People’s republic of China, the United States of America, Japan, relations with other countries of the Asia Pacific region, Europe and Central Asia are described in this chapter.

Bilateral relations developed by Mongolia with other countries are essentially the cornerstone of its external relations. As an independent sovereign state, Mongolia pursues a policy aimed at maintaining friendly relations with all nations of the world. Within this general policy framework, a priority is attached to developing bilateral ties with the countries that play an exceptionally important role in terms of economic, trade relations as well as have an important impact on Mongolia’s security environment.

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1. RELATIONS OF PRIORITY IMPORTANCE Two neighbors

Mongolia is a relatively small country sandwiched geographically between the two major powers. It has 3485 km common border line with the Russian Federation and 4677 km border line with the People’s Republic of China (PRC). A foreign policy priority for Mongolia is to maintain balanced relations with the Russian Federation and the PRC; develop on a long-term and equal basis good-neighborly, friendly relations and mutually beneficial cooperation. The relations are developed in accordance with the principles enshrined in the Treaties on Friendly Relations and Cooperation concluded by Mongolia with the two neighbors. The principles are mutual respect for independence, sovereignty, the territorial integrity of each other, mutual non-aggression, noninterference in internal affairs, development of mutually beneficial and equal relations and peaceful coexistence. The parties agreed that they will not take part in military-political alliances with third countries against each other, will not conclude treaties which would endanger the sovereignty and security of each other and will not concede its territory to third country to the detriment of security and sovereignty of each other. These are exemplary provisions that could be followed by others in maintaining good-neighborly relations. Mongolia has fully settled the border demarcation issue with the two neighbors and in 1996 Mongolia, the Russian Federation and the PRC signed in Beijing the Protocol on western and eastern meeting points of the border lines. For the first time in the history of relations between the three countries meeting points of the border lines were demarcated and ratified. There are no unresolved matters of fundamental nature in the MongolianRussian and the Mongolian-Chinese relations. All issues that arise in the process of cooperative relations can fully be solved in a friendly and peaceful way. 18

The Russian Federation and the PRC are Mongolia’s main trading partners. Given that the Russian Federation is a traditional market for Mongolia’s exports and the PRC is the world’s most populous nation there is a need to make more effective use of the potentials of economic cooperation with the two neighbors. Discussions on major economic projects involving the three countries are underway and the projects have a potential to contribute to the deepening of tripartite cooperation and economic integration. 1.1.Russian Federation Mongolia views its relationship with the Russian Federation as one of its foreign policy priorities. Thus the long term, stable development of goodneighborly, equal and mutually beneficial ties in all areas with the Russian Federation is perceived as essential in Mongolia. The Treaty on Friendly Relations and Cooperation signed in 1993 established a new legal foundation for the development of bilateral ties and endorsed the current level of relations between Mongolia and the Russian Federation. The principles enshrined in the Treaty are observed in the goodneighborly relations between the two countries. Mongolia and the Russian Federation have a rich tradition of developing cooperation in all areas including political, economic, trade, cultural spheres, education, health, science and technology. The bilateral relations came to stagnation due to certain reasons in the early 1990s. However, the relations have intensified under new circumstances and on a new foundation over the last few years. A regular exchange of high level visits has been taking place since the mid1990s aimed at raising the level of political dialogue between the two countries. A working meeting held in 1999 between the Presidents of the two countries and an exchange of visits by the ministers for external relations and foreign affairs played an important role in defining the development of the bilateral relations in the XXI century. 19

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The legal and organizational framework of bilateral economic cooperation is being revised. Various new documents are signed in order to adjust the inter-ministerial and agency relationship to the new conditions. Although the trade turnover between the two countries has decreased compared to the earlier period, the Russian Federation has remained one of Mongolia’s main trading partners. In 1999, 29.2 percent of Mongolia’s imports came from the Russian Federation and 13.4 percent of Mongolia’s exports went to its northern neighbor. Trade with the Russian Federation constituted 22.7 percent of the total Mongolian foreign trade turnover. The Russian Federation continues to be the main supplier of some industrial goods such as lubricants, electric energy and spare parts among others. The ministers for external relations and foreign affairs of the two countries on a number of occasions discussed the issue of expanding the trade relations. The decision to establish a Joint working group on trade liberalization was taken. The first meeting of the Joint working group took place in October 1999. At the meeting a framework of activities by the Joint working group was defined and the parties exchanged views on solutions to problems that exist in bilateral trade. At the next meeting the issues related to expanding the cooperation between the two countries, decreasing tariff and non-tariff barriers to traditional Mongolian exports to the Russian Federation, creation of favorable environment for the stable performance of the joint Mongolia-Russian companies and border trade will be discussed. Currently, 160 Russian and Mongolian-Russian joint companies are registered in Mongolia that operate in areas such as mining, transportation, service among others. Regions of Mongolia and the Russian Federation that are situated in geographic proximity from each other or have common borders are 20

beginning to develop direct ties. During the visits to Mongolia by leading officials from several regions of the Russian Federation, issues of border cooperation were discussed and a number of agreements were signed. The delimitation and demarcation of borders between Mongolia and the Russian Federation in its Tagno Tuva section was carried out between 1959 and 1960 and the remaining part in 1978-1979. During the 1990s, the border line was inspected and the western and eastern meeting points between Mongolia, Russia and China were delimited. The Agreement between the government of Mongolia and the government of the Russian Federation on travel arrangements by nationals of the two countries was signed in 1995. The work is being undertaken to gradually to waive visa requirements between the two countries. Mongolia will continue the policy of developing good-neighborly relations and mutually beneficial cooperation with Russia on a stable, longterm basis. Mongolia’s short term objectives include the enhancement of the regular political dialogue, creation of a more favorable environment for the expansion of trade, especially development of economic and humanitarian contacts with the border regions, creation of a free trade zone, active participation in joint economic projects with Russia, China and other nations. 1.2.People’s Republic of China Another important foreign policy priority of Mongolia is the long-term, stable development of good-neighborly relations, equal and mutually beneficial cooperation with the People’s Republic of China (PRC) on the basis of universally accepted norms and principles of international law. During the 50 years since the establishment of the diplomatic relations 21

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with the PRC bilateral relations between the two countries had their ups and downs due to certain historic reasons. After 1989, through the joint efforts of the two countries the bilateral relations have been fully normalized. At present cooperation is developing successfully in political, trade, economic, cultural, scienctific and technological as well as in educational and humanitarian spheres. The Treaty on Friendly Relations and Cooperation between Mongolia and the PRC signed in 1994 provides the legal foundation for the bilateral relations. During the state visit by the President of Mongolia to the PRC in 1998, the Joint Declaration by Mongolia and the PRC was issued confirming the principles and spirit of the Treaty. Since the normalization of relations, the two countries have exchanged visits by heads of states, prime ministers, speakers of the parliament, ministers of external relations and foreign affairs. The visits enhanced mutual understanding and confidence between the two countries, and played an important role in outlining the main directions of the development of relations in the XXI century. At present there are over 50 agreements governing bilateral relations and cooperation between the two countries. Mongolia and China have fully demarcated their common border lines. The Border Treaty and the Border Protocol were concluded in 1962 and in 1964 respectively, and the border line was delimited and demarcated. Between 1982-1984 a joint inspection of the border line was carried out and in 1991 the Treaty on Border Regime and the Agreement on Ports of Entry were signed. In 1999 the Mongolian government took a decision to carry out a joint border line inspection. In 1999 the share of trade with the PRC accounted for 31.4 percent of Mongolia’s total trade turnover. In the same year 13.5 percent of Mongolia’s imports came from the PRC and 57.0 percent of export 22

went to its southern neighbor. By 1999 a total of 413 Chinese and Mongolian-Chinese joint companies were registered in Mongolia, and US$ 66.5 million were invested into the Mongolian economy. Most of the joint companies are engaged in mining, construction and engineering among others. At present there are two ports of entry operating on a permanent basis and nine ports of entry operating on a seasonal basis. These ports are playing an important role in developing direct ties and border trade between bordering regions of the two countries. Direct cooperation has been established between aimaks1 and cities of the two countries. Cooperative relations already have been established between Ulaanbaatar and Beijing, Ulaanbaatar and Tianjing, between the Uvurhangai aimak and Liaoning province, the Tuv aimak with Ulaantsav aimak, Erdenet city with Bugat city, Dornod aimak with Hulunbuir aimak, Umnogobi aimak with Alsha aimak, Gobi Altay aimak with Hami region. Mongolia has pursued and will continue to pursue a policy of developing on a stable and long-term basis good-neighborly relations, equal and mutually beneficial cooperation with its southern neighbor. The goal here will be to preserve the current level of relations, maintain regular political dialogue, to develop economic and humanitarian relations between bordering regions and aimaks, and to participate in the implementation of the projects and programs aimed at developing an extensive transportation networks including roads. 1.3.United States of America Whereas the relationship with the two immediate neighbors of Mongolia - Russia and China remains to be a top priority in Mongolia’s foreign policy, from the country’s development and national security perspective, the expansion of the relations with highly developed countries from 23

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the East and West is also a top priority agenda. In this sense, development of relations and cooperation with the United States of America (USA) is fully consistent with the national interests of Mongolia. Since the establishment of diplomatic ties between the two countries in 1987, the bilateral relationship has been dynamically developing and as the democratic reforms continue to deepen in Mongolia, the USA support for the country has strengthened leading to expansion of bilateral relations and highlevel political dialogue. The President of Mongolia, the Prime Minister, the Speaker of the Parliament as well as members of the Mongolian Government and Parliament have paid official and working visits to the USA over the past years. The Secretary of State of the USA James Baker visited Mongolia twice in 1990 and 1991 and the Secretary of State Madeleine Albright visited Mongolia in 1998. A meeting between the Presidents of the two countries took place in New York in 1995. The same year, the First Lady Mrs. Hillary Rodham Clinton visited Mongolia. Moreover, a number of high-ranking Government officials, senators and military officers from the USA have visited Mongolia. These visits have played an important role in advancing swiftly the level of relations between Mongolia and the USA and laid foundations for rapid development of mutual cooperation in a short span of time. Since 1991, the Congress of the USA has adopted a number of resolutions in support of Mongolia’s democracy, free elections and transition to market economy; a strong indication of support by the USA for Mongolia in the eyes of the world community. The United States have been consistently and fully supportive of Mongolia’s political and economic reforms, providing assistance both through bilateral and multilateral links. With conclusion of Trade Agreement between the Governments of Mongolia and the USA in 1991, favorable conditions were created for expan24

sion of trade relations between the two countries. The Congress of the USA decided in 1999 to make Mongolia’s normal trade relations status permanent and in July of the same year the President of the USA made a decision to include Mongolia in the Trade Preferential System. Thus Mongolia received most favorable conditions for expansion of its trade relations with the USA and there are no quota limits for the Mongolian products to export into the US market. In 1999, trade with the USA occupied 8.9 percent of the total trade turnover of Mongolia. 52 US and joint US-Mongolian companies in wool and cashmere processing, oil exploration, mining and garment areas are operating today in Mongolia. In recent years, Mongolian textile products acquired an access to the US market. In order to expand relationship between Mongolia and the USA, a policy of creation of favorable conditions for furthering the political dialogue between the two countries, strengthening of the legal basis of bilateral relations, expansion of trade and increase of direct investment will be pursued. A special attention will be attached to training of young Mongolian professionals, introduction of scientific and technological innovations and cooperating in the social area. The government of Mongolia encourages expansion of cooperation between the non-governmental organizations and individuals of the two countries. 1.4. Japan As a major Asian country with highly developed economy and considerable influence in world affairs, Japan has an important place in Mongolia’s foreign policy. The Joint Declaration on Friendly Relations and Cooperation between Mongolia and Japan issued during the visit of Mr. Natsagyn Bagabandi, President of Mongolia, to Japan in May 1998, set an objective to develop bilateral relations at the level of comprehensive partnership. The Declaration defined principles of sustainable development of long-term relations between Mongolia and Japan in all fields and was of a great importance in strengthen25

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ing of the mutual understanding between the peoples of the two nations. Since the establishment of diplomatic ties between Mongolia and Japan in 1972 until the early 1990s the bilateral relationship has continuously advanced. With the end of the Cold War, which brought about tremendous changes in the world including democratic reforms in Mongolia, the bilateral relations reached new heights creating favorable conditions for their expansion in all areas. The Government of Japan has supported Mongolia’s democratic reforms from the beginning both through bilateral and multilateral channels and rendered all forms of assistance. Moreover, the Japanese Government hosted six meetings of Mongolia’s donor community jointly with the World Bank and it is a leading bilateral donor to Mongolia. Over the past period, heads of state and government of Mongolia have paid official visits to Japan. From the Japanese side, Prime Ministers Toshiki Kaifu and Keizo Obuchi visited Mongolia in 1990 and 1999 respectively. In 1999, Mongolia’s Foreign Minister paid an official visit to Japan. While furthering relations of comprehensive partnership, it is important to hold dialogue between the governments and political parties of the two countries through various channels in order to increase mutual understanding and confidence. Bilateral consultations on political issues and coordination of the two countries’ activities on the international arena are also important. An objective is to create a favorable environment for strengthening the legal framework for co-operation between the two countries. Expansion of bilateral trade, increasing direct investment, raising efficiency of utilization of the ODA provided by Japan, development of tourism and expansion of new forms of bilateral cooperation are important objectives. The two sides have initialed and will soon sign the investment agreement. 26

The cooperation in the fields of culture, education, science and technology, health and social welfare will focus on training of young Mongolian professionals, profiting from scientific and technological cooperation and resolving social issues faced by Mongolia. The Government of Mongolia supports enhanced contacts and cooperation between local authorities, non-governmental organizations as well as individuals of the two countries.
2. RELATIONS WITH COUNTRIES OF ASIA PACIFIC

Since the 1990s the Asia-Pacific region became a priority direction in Mongolia’s foreign policy. It emanates from Mongolia’s desire to join political and economic integration processes taking place in the region,thus, setting up institutional links in order to create favorable conditions for the country’s development. On the other hand, geographically, functionally as well as in terms of civilizational and national identity Mongolia is undeniably an Asia Pacific, in particular Northeast Asian nation. Thus, the Asia Pacific region is naturally chosen as one of top priority directions of the Mongolia’s foreign policy. Today Mongolia is actively working on expanding bilateral relations with the countries of the region, strengthening its position in the region and joining regional multilateral political and economic processes. Events on the Korean peninsula have a serious impact on the security of the Asia Pacific region and overall international security. It is understandable that the strengthening of peace and stability on the Korean peninsula fully meets the interests and aspirations of Mongolia. Therefore, Mongolia supports all efforts aimed at peaceful co-existence, joint progress and removing threats of armed conflicts on the peninsula.

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There is a pressing need to cooperate closely within the framework of regional efforts on the solution to the issue related to the Korean peninsula. Inter-Korean dialogue is particularly important for the security on the peninsula and processes such as four-party talks contribute to easing of tensions and implementation of the objective to establish a lasting peace. One of the fundamental ingredients for maintaining peace and stability in the region is the strict observance of nuclear non-proliferation regime. Mongolia can contribute to maintaining stability at the regional and subregional levels through both bilateral efforts and multilateral dialogues. Mongolia, through official and unofficial channels, will take an active part in implementation of joint economic projects designed to establish regional transport and energy networks, co-operation of regional countries in preventing global climate changes and environmental degradation. 2.1.Relations with the ROK and the DPRK Mongolia strives to maintain a balanced relationship with both Koreas. We believe, it is important to actively develop relations with the Republic of Korea (ROK) in political, economic and other areas. Mongolia has preserved its traditional ties with the Democratic People’s Republic of Korea (DPRK) by developing bilateral relations on a stable basis. Mongolia views that engaging the DPRK in the regional multilateral dialogue process is an important step for enhancing the stability in the region. Within the framework of this policy, in the Joint Declaration released during the visit of Mr. Kim Dae Jung, President of the Republic of Korea, Mongolia expressed its supports for the ROK’s policy of engagement towards the DPRK. The DPRK’s proposal on a peaceful re-unification of its country is welcomed by Mongolia as a common aspiration of the Korean people. 28

It is essential to utilize the opportunities emerging with the expansion of the regional economic cooperation, especially within bilateral and multilateral projects such as “Tumen River Project” among others. Since the establishment of diplomatic relations between Mongolia and the Republic of Korea in 1990, bilateral relations and cooperation have been successfully developing in political, economic, cultural, educational and humanitarian fields. In the past years the President of Mongolia, Speaker of the Parliament, Prime Minister, Minister for External Relations paid visits to the ROK and the President of the ROK, Speaker of the National Assembly, Minister of Foreign Affairs and Trade paid visits to Mongolia. The first summit meeting between the two sides took place in 1991. Mr. Kim Dae Jung, President of the ROK, paid a state visit to Mongolia in May of 1999. The visit played an important role in deepening bilateral relations and bringing them into new heights in the 21st century and enhancing the development of mutually complementary cooperation. The Prime Minister of Mongolia Mr. Rinchinnyamyn Amarjargal paid an official visit to the Republic of Korea in November 1999. The visit was an important event in implementing the agreements reached during the summit talks and reaffirmed the policy of developing bilateral relations and cooperation. It had a special significance as main areas of expansion of bilateral economic cooperation in the new century were identified during the visit. Economic relations between Mongolia and the ROK have been developing at rapidly. Trade turnover between the two countries has significantly increased with South Korea becoming one of Mongolia’s major trading partners. The Republic of Korea has supported from the onset Mongolia’s 29

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democratic reforms. There are opportunities to increase further the trade and economic cooperation between the two countries through joint utilization of natural resources and advanced technology. Cooperation in the field of culture and education has expanded with establishment of direct links between artistic organizations, institutions of higher education and scientific establishments of the two countries. Continued exchange between youth of the two countries, joint conduct of scientific studies and linguistic research will open new opportunities for expanding bilateral cooperation. Since the establishment of diplomatic relations with the Democratic People’s Republic of Korea half-a-century ago, bilateral relations and cooperation have been cordially developing on a stable basis. Mongolia stands for a stable development of long standing ties and cooperation with the DPRK. After the Korean war, the Mongolian people extended humanitarian assistance to the Korean people bringing up more than 200 Korean orphaned children in Mongolia. In the early 1990s relations between Mongolia and the DPRK entered a brief period of stagnation. Starting from the mid-1990s, there has been a tendency for a revival of long standing relations and cooperation between Mongolia and the DPRK. In the last three years the Prime Minister, Minister of External Relations and State Secretary of the Ministry of External Relations of Mongolia have visited the DPRK. Members of Mongolian Parliament, representatives of political parties visited the DPRK to commemorate the 50th Anniversary of the establishment of diplomatic relations between the two countries. Regular meetings and exchange of views between the two sides contributed to stability in the bilateral relations and strengthening of peace and security in North East Asia.

Mongolia and the DPRK are countries with traditional, long standing economic and commercial relations. It is important for both sides to exert every effort to develop economic cooperation and to form a legal basis for it. The mutual cooperation in cultural and humanitarian fields has been developing for a long period on a stable basis. Public organizations and friendship societies of the two countries cooperate and regularly exchange visits. This facilitates further expanding of bilateral cooperation in the field of culture and contributes the deepening of the mutual understanding between Mongolian and Korean peoples. 2.2.India It is important to develop bilateral relations with India, the country with which Mongolia has ancient historical, religious and cultural links. India was one of the first countries to recognize Mongolia and establish diplomatic ties with it. Moreover, India provided significant support to Mongolia in becoming a member of the United Nations in 1961. Since the establishment of diplomatic relations between the two nations, the bilateral relations and cooperation in political, economic, cultural and humanitarian areas have been developing on a stable basis. The two sides have regularly exchanged high-level visits. In the last six years, the President of Mongolia and Speaker of the Parliament paid visits to India, and the Indian Vice Presidents visited Mongolia. The Treaty on Friendly Relations and Cooperation between Mongolia and India, the major legal basis for bilateral relations, was signed during the visit of the President of Mongolia to India in February of 1994. A number of other important documents such as agreements on avoidance of double taxation, mutual support for investment and legal assistance were concluded during the visit.

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India has participated in the meetings of Mongolia’s donor community from the beginning and given particular attention to the assistance in the area of human resource development. Despite the fact that the two countries are geographically distant from each other, a basis for the development of trade and economic cooperation has been laid. India plays an increasingly important role in the world affairs and Mongolia attaches significance to enhancing political dialogue with India and in further expanding economic, cultural and humanitarian cooperation. 2.3. Canada The Government of Canada has supported Mongolia’s democratic reforms from the onset and started to develop multilateral cooperation within framework of international organizations such as the IMF, World Bank and Asian Development Bank. Canada plays an important role in multilateral dialogue processes on Asia Pacific security and economic cooperation and the two countries share similar views on many regional issues. Mongolia is interested in advancing bilateral relations, carrying out regular exchange of views on regional security issues as well as cooperating in the peace-keeping area. Mongolia will pay greater attention to expanding development cooperation with Canada within the framework of multilateral co-operation. More emphasis will be placed on increasing investments from Canada in trade, mining and agriculture. Training of Mongolian professionals, exchanges between institutions of higher education and expansion of contacts between NGO’s of the two countries will be pursued in the humanitarian field. 2.4. ASEAN countries The Association of South East Asian Nations (ASEAN) plays a 32

significant role in maintenance of security and development of cooperation in the Asia Pacific region and made a crucial contribution to creation and development of the regional security dialogue process – the ASEAN Regional Forum (ARF). Mongolia is looking for new ways and means to expand its relations with ASEAN member countries and revitalize its traditional ties with Vietnam and Laos. Mongolia and Vietnam have long standing traditional relations. Taking into account Vietnam’s growing role in Asia Pacific region and its increasing participation in the regional political and economic integration, Mongolia aims at revitalizing its ties with Vietnam. The official visit paid by Mr. Punsalmaagiin Ochirbat, President of Mongolia, to Vietnam in 1994 laid a foundation for the development of long standing traditional relations and cooperation under new circumstances. The President of the Socialist Republic of Vietnam Mr. Tran Duc Luong paid the state visit to Mongolia in April 2000. During the visit the Agreement on friendly relations and cooperation was signed between Mongolia and Vietnam. The visit by the President of Vietnam to Mongolia made an important contribution to creating and enhancing a favorable environment for the expansion of the long-standing, traditional friendly relations between the two countries, to enhancing Mongolia’s close cooperation in the Asia Pacific region with one of its the influential countries, and furthering Mongolia’s efforts to join political and economic integration processes in the region. Favorable conditions are being created for development of trade and economic cooperation with the Kingdom of Thailand. The 33

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recent opening of the Mongolian Embassy in Bangkok gave an important impetus to expanding bilateral relations and cooperation. Thailand has been supporting the democratic changes in Mongolia. The visits paid by Her Royal Highness Princess Maha Chakri Sirindhorn to Mongolia in 1992 and Mr. Punsalmaagiin Ochirbat, President of Mongolia, to Thailand in 1994 contributed to mutual understanding between Mongolian and Thai peoples and were an important expression of Mongolia’s interest in developing cooperation with Thailand and other South East Asian countries. Thailand has been providing assistance to Mongolia in developing human resources. The Mongolia-Philippines cooperation at bilateral and regional levels has been developing steadily. The special envoy of the President of Mongolia visited the Philippines in 1995. The visit resulted in issuing a joint communiqué which declared that the sides agreed to hold political dialogue on a regular basis, develop economic cooperation in state and private sectors and increase direct investment. In the same communiqué it was pointed out that the Philippines expressed its understanding and support for Mongolia’s aspiration to expand cooperation with the Asia Pacific Economic Cooperation (APEC) and ASEAN member nations. The high-level visits exchanged between Mongolia and Malaysia were of great importance. Mr. Puntsagiin Jasrai, Prime Minister of Mongolia, at the invitation of the Prime Minister of Malaysia paid an official visit to this country in 1995. At the invitation of the Mongolian Government, Hon. Dato Seri Dr. Mahathir Bin Mohammad, Prime Minister of Malaysia, paid an official visit to Mongolia in 1997. This visit was an important event that enhanced closer cooperation between the two countries and created favorable conditions for Mongolia to join the multilateral processes in the Asia Pacific region. An agreement was reached to waive visa requirements for mutual travels by the citizens of Mongolia and Malaysia. In the year 2000 the 30th anniversary of the establishment of diplomatic 34

relations between Mongolia and Singapore will come. Since the launch of democratic reforms in Mongolia, bilateral relations have been activated. Mongolia has been putting efforts to develop broader cooperation with Singapore. Agreements on trade, investment and air links are in effect between the two countries. Visa requirements are waived for Mongolian and Singapore citizens to travel to both countries. Companies with investment from Singapore operate mainly in the field of retailing sector. The ASEAN is an important center of global economic development and a major multilateral organization in South East Asia. Therefore development of bilateral political, trade and economic relations with the members of the ASEAN, cooperation within the framework of the ASEAN Regional Forum and ensuring their support in Mongolia’s effort to join the Asia Pacific Economic Cooperation (APEC) will remain an important direction of Mongolia’s foreign policy. 2.5. Australia Australia was one of first counties to support democratic reforms in Mongolia and provided political and economic assistance from the onset. Programs on general management, development of mining management, education, improvement of water supply as well as training of Mongolian professionals are being implemented as agreed by two sides in 1993. A number of Mongolian students are receiving education in fields of management, business, law, public administration and international relations on Australian Government scholarships. It serves as an example of a fruitful cooperation between the two countries. The wrok is underway to conclude an agreements on mutual support of investment and avoidance of double taxation that would give an impetus to trade and economic relations between Mongolia and Australia.

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3. RELATIONS WITH EUROPEAN COUNTRIES

The support and assistance from the European Union member countries are of an exclusive importance for the consolidation of Mongolia’s economic and social reforms and the acceleration of transition to the market economy. The revitalization of traditional ties with countries of Central and Eastern Europe will open export markets and new investment sources. 3.1. Federal Republic of Germany In the Concept of Mongolia’s Foreign Policy and the Government Action Program, the Federal Republic of Germany is described as Mongolia’s main partner in Europe. Promotion of relations and cooperation with Germany, one of the advanced economies in the world, is of great importance for democratic process and development of market economy in Mongolia. As a major country with a considerable influence in global affairs and economic development, Germany has been consistently supporting Mongolia’s democratic reforms from its onset not only at the bilateral level but also within the framework of global institutions. Throughout the last decade, the two sides have regularly exchanged highlevel visits. The Joint Declaration on the fundamentals of relations between Mongolia and the FRG was signed during the visit of President Ochirbat P. to Germany in 1995. It laid down grounds for a long-term stable development of bilateral relationship in all areas. The official visit by Mr. Roman Hertzog, Federal President of Germany to Mongolia in 1998, was a similarly important event. Germany is supporting Mongolia not only through bilateral relations but also within the framework of multilateral institutions specifically within the European Union, UN Development Program, G-8, international monetary and financial institutions. It pursued a policy of including Mongolia in major projects implemented by these institutions and supported Mongolia within the donor community. 36

Preserving the present level of the bilateral relations with Germany, in order to increase mutual confidence, Mongolia will pursue a policy of carrying out a regular dialogue between the two governments and major political parties. Significance will be attached to the expansion of mutually beneficial trade cooperation, increase of direct investments, improvement of efficiency of the ODA utilization. Mongolia will work for the creation of overall favorable conditions for enriching the bilateral cooperation. Mongolia will continue to develop its cooperation with Germany in the fields of culture, education, science and technology, health and social welfare. The cooperation will be focused on promotion of language studies, joint research and protection of cultural and historical heritage. More focus will be given to the training of Mongolian professionals, profiting from cooperation in areas of science and technology. The government will support establishment of ties and development of cooperation between local authorities and NGOs of the two countries. 3.2. United Kingdom of Great Britain and Northern Ireland Diplomatic relations between Mongolia and the United Kingdom of Great Britain and Northern Ireland were established in 1963. The United Kingdom was the first industriaized country to formally recognize Mongolia in the early 1960s. Since the establishment of diplomatic relations, the bilateral political relationship developed on a stable basis within the political context of that period, and the two sides have been exchanging delegations at different levels. The democratic reforms in Mongolia have had a favorable impact on the advancement of the bilateral relations. The United Kingdom supported the democratic process in Mongolia from its very beginning. One example of it was the communiqué released from G-7 Meeting in London in 1991 where it congratulated Mongolia for her achievements in political and economic reforms and called on other countries to support Mongolia. 37

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The President of Mongolia P. Ochirbat and the Prime Minister R. Amarjargal visited the United Kingdom in April 1996 and March 2000 respectively. In the last decade, inter-parliamentary relations between the two countries have been developing actively. The cooperation between Mongolia and the United Kingdom is developing successfully in various areas such as communication, energy, mining, agriculture, industry and education. The United Kingdom is one of Mongolia’s ten major foreign trade partners and is one of the main foreign investors to Mongolia. The bilateral cooperation in educational, cultural and humanitarian fields is developing actively, and a round-table meeting on the issues of bilateral cooperation became a good tradition. 3.3. France Diplomatic relations between the two countries were established in 1965. Mongolia attaches importance to the development of relations with France, a permanent member of the UN Security Council, an influential country in the European Union that conducts an active policy on the world arena. France has been consistently supporting Mongolia’s democratic reforms since 1990 and has become one of the donor countries for Mongolia. Whereas until the 1990s the two countries had maintained mainly interparliamentary relations, starting from 1990, the Prime Minister of Mongolia, Chairman of State Great Hural as well as Government ministers have visited France. President Ochirbat’s visit to France in 1996 was an important event that boosted our bilateral dialogue. Cooperation between Mongolia and France has been successfully developing in areas of communication, energy, geology, mining, health and tourism. There are opportunities for continued development of cooperation in other areas. Based on the Cultural Agreement concluded between the two countries in 1968, Mongolian-French cooperation in 38

culture, science and technology has been successfully developing and steadily expanding. 3.4. Scandinavian countries In recent years, ties between Mongolia and the Scandinavian countries have been gradually expanding and cooperation began to develop in many areas. Mongolia established diplomatic relations with Finland in 1963, Sweden in 1964, and with Denmark and Norway in 1968. The Concept of Mongolia’s foreign policy and the Government Action Program put forward an objective to develop a mutually beneficial cooperation with European countries, including the Scandinavian countries that play a significant role and participate actively in the United Nations social and economic programs. In November 1997, the Speaker of the Parliament R. Gonchigdorj paid an official visit to Finland, Sweden and Norway. In 1995 Prime Minister of Mongolia, in 1998 the Minister for External Relations paid an official visit to Denmark. In February 2000, The Minister for External Relations made an official visit to Finland, Norway and Sweden. The visits were an important step in raising the level of political ties with the Scandinavian countries. The assistance and support extended by the Scandinavian countries were a significant contribution to the intensifying the transition of Mongolia to market economy relations. Mongolia aims at developing and promoting the cooperation with local authorities, NGOs, and individuals of these countries, advancing economic and cultural ties. In order to consolidate the legal basis for economic cooperation the work on concluding agreements on the promotion and protection of investments and for the avoidance of double taxation is underway. 39

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3.5. European Union Diplomatic relations between Mongolia and the European Union (EU) were established on 1 August 1989. The Prime Minister of Mongolia paid a visit to the EU in 1992 and Speaker of the Parliament visited the European Parliament in 1993. In 1995 the President of Mongolia visited European Union and in 1996 the EU Commissioner paid a visit to Mongolia. These visits played important role in furthering the bilateral relations. Conclusion of Agreement on Trade and Economic Cooperation in 1992 and Agreement on Sale of Textiles in 1995 serve as a legal basis for bilateral relations. These agreements were prolonged in 1998. Since 1993 Mongolia has been included in the TACIS Program, a technical assistance program designed for the Central and Eastern Europe as well as the Commonwealth of Independent States. In 19921996 The EU provided Mongolia with assistance of 36 million Euro and implemented over 60 projects. Whereas the total trade turn-over between the two sides for 1993 was $US 46.8 million, in 1999 it almost doubled reaching $US 83.5 million. Today over 10 percent of the total foreign trade of Mongolia goes to the EU. Since 1991 the EU has included Mongolia in its General Trade Preference System and the list of EU’s partner countries entitled to receive investment from the Union and loans from the European Investment Bank. This year Mrs. Nyamosor Tuya, Minister of External Relations of Mongolia held a meeting with Mr. Javier Solana, Representative on EU Common Foreign and Security Policy and exchanged views on a wide range of issues.

3.6.Countries of Central and Eastern Europe Mongolia had extensive relations with countries of the Central and Eastern Europe for over 50 years developing cooperation in all areas including political, economic, trade and cultural fields. Since the early 1990s, however, due to the breakdown of old mechanisms of cooperation among others, the level of bilateral relations have drastically decreased. In order to develop relations under new circumstances, Mongolia has started concluding agreements that laying the foundation for the revival of bilateral relations and economic cooperation with these countries. Exchange of high-level visits with the countries of the Central and Eastern Europe is of an increasing importance for a more regular political dialogue and growth in trade and economic cooperation. The President of Mongolia paid an official visit to Hungary in 1995, the Czech Republic and Poland in 1999. Meanwhile, the Eastern European countries are displaying a renewed intrests in their traditional market and partners. The Czech Republic reestablished its Embassy, Poland informed about their decision to re-establish its Embassy in Mongolia. In recent years these countries have shown their interest to restore their joint ventures with Mongolia, participate in the privatization and investment in its economy. Education and culture are the fields where cooperation with countries of the Central and Eastern Europe is continuously advancing. As both sides are interested in restoring traditional links between state, public and local organizations and business entities of Mongolia and Eastern European countries, the Government’s support is essential in this regard. In further developing relations with the countries of the Central and Eastern Europe, creation and strengthening of legal basis for bilateral relations and cooperation will be areas of greater attention. In this regard, Poland, the 41

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Czech Republic and Hungary are seen as important partners. Mongolia sets the following objectives in expanding bilateral cooperation with countries of the Central and Eastern Europe: expansion of trade and economic relations, support of direct investment from these countries, restoration of traditional cooperation in the field of processing industry. 3.7.Turkey The fact that Mongolian and Turkic-speaking tribes lived throughout many centuries shoulder to shoulder left a deep imprint on history, culture and traditions of our two nations. Diplomatic relations between Mongolia and Republic of Turkey were established in 1969. However until 1990 the political relationship was not active. As a result of democratic reforms in Mongolia, new opportunities have emerged for the expansion of Mongol-Turkish relations in political, economic, commercial, cultural, educational and scientific areas. The Turkish Embassy in Ulaanbaatar was opened in 1996 and the Mongolian Embassy in Ankara - in 1997. The Minister of External Relations, the Speaker of the Parliament, the President of Mongolia paid official visits to Turkey in 1992, 1993, 1998 respectively. The Vice Chairman of the Great National Assembly of Turkey visited Mongolia in 1994 and the President of Turkey in 1995. During these visits a number of important documents were signed that serve as a legal basis for Mongolia-Turkey relations. In 1999 the total trade turn-over between the two countries reached $US 579.8 thousand. Turkish investment in Mongolia for the same year was $US 1.417.000, mainly in small and medium-scale enterprises, services and trade. As of now 11 Turkish companies are operating in Mongolia. Turkish International Cooperation Agency’s (TICA) assistance pro42

vided for Mongolia in 1994-1999 reached $US 928.2 thousand. There are greater opportunities for cooperation between Mongolian and Turkish academicians, scientists and organizations in restoration of Turkic period monuments on the territory of Mongolia, their study, preservation, promotion as well as development of tourism on their basis.

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4. CENTRAL ASIAN COUNTRIES

Mongolia established diplomatic relations with newly independent nations of Central Asia and stands for promotion of mutually beneficial cooperation with these countries. We have concluded treaties on friendly relations and cooperation with Kazakhstan and Kyrgyzstan. The President, the Prime Minister, the Chairman of State Great Hural of Mongolia paid an official visit to Kazakhstan. The President and the Prime Minister of Kazakhstan have paid official visits to Mongolia. Mongolia and Kazakhstan have concluded a Treaty on Friendly Relations and Cooperation as well as agreements on trade and economic relations and payments. During the visit of the President of Mongolia to Kazakhstan in 1998, the two sides issued the Joint Declaration. A Joint Communiqué was issued during the visit by the President of Kazakhstan to Mongolia in 1999. During the visit by the President of Mongolia to Kyrgyzstan in December,1999 the two sides issued a Joint Declaration. In accordance with the bilateral agreement, some 65,000 Mongolian citizens of Kazakh origin are working in Kazakshtan. Starting from 1994 the issue related with their legal status has been settled according to the Treaty on coordination of the issue of citizenship of Mongolian Kazakhs residing in Kazakhstan on voluntary basis and labor contracts. From these people around 30 thousand Kazakhs have requested to change their Mongolian citizenship into Kazakh. As of now 7,400 people have become Kazakh citizens, while the remaining requests are under consideration. A feasibility study is being done on re-opening of Ulaanbaatar-Almaty air link. A feasibility study is being conducted at Kazakhstan’s Institute of Roads on construction of 30 km long Bayan Ulgii-Tsagaannuur road. Mongolia views exchange of opinions with Central Asian countries on the regional security issues as important and it is our policy to support 44

the proposal on declaration of the region as a nuclear weapon-free zone. We believe the Kazakhstan’s proposal on cooperation and confidence building in Asia as one of channels to exchange opinions among Central Asian countries and build confidence.
5. MIDDLE EAST

Mongolia established diplomatic relations with Algeria in 1961, Iraq in 1962, Egypt in 1963. These were the first countries of this region with whom Mongolia established diplomatic relations. Since the 1990s, Mongolia pursued the policy of developing mutually beneficial relations and cooperation with all countries in the region. Thus Mongolia has established diplomatic relations with Israel and some countries of the Persian Gulf. So far Mongolia has established diplomatic relations with all but one country in the region. Emir of Kuwait was the first highest ranking dignitary from the region to pay an officiall visit to Mongolia in 1995. The Minister for External Relations of Mongolia visited Oman, Egypt, United Emirates, Israel, Kuwait in 1996. The President of Mongolia visited Kuwait in 1998. The visits played an important role in expanding Mongolia’s relations with the countries in the region. It is important to develop Mongolia’s cooperation with these countries based on the principles enshrined in the UN Charter and coordinate our positions on issues of common interest within the Non-aligned movement, cooperate with these countries within the framework of the UN and other international organizations on issues such as rights of the land-locked countries, security of small states among others. Mongolia carefully follows the recent progress achieved in theMiddle East peace process and efforts by the involved parties to normalize their relations.

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6. LATIN AMERICAN COUNTRIES

CHAPTER THREE The Chapter 3 defines the role of multilateral diplomacy in achieving foreign policy strategic objectives. Participation of Mongolia in international organizations and processes of priority importance such as the United Nations, its specialized agencies, and the ASEAN Regional Forum is decribed in the chapter. Mongolia’s policy in the XXI century will be determined by multi-dimensions. It will participate in the activities of such international organizations and multilateral processes as the United Nations, WTO, ARF to advance its national interests and effectively utilize their potentials. We are of the view that process unfolding in the North East Asia region will have an important repercussion on the national security of Mongolia. It is encouraging that in the past few years the cooperation among the major actors of the region is on the increase. The outcome of these mutual visits demonstrate clearly the importance of dialogue and cooperation. Mongolia is convinced that it can make its modest contribution to the insurance of stability in region and the sub-region on the basis of bilateral efforts and multilateral talks .

Mongolia pursues the policy of developing mutually beneficial cooperation with the Latin American countries bilaterally and/or within the framework of international organizations. Mongolia established diplomatic relations with Peru in 1997 and Salvador in 1998. Thus, at present, diplomatic relations are established with 16 Latin American countries, and Mongolia cooperates with many of them within the framework of international organizations. There are potential areas of cooperation with the Latin American countries, particularly with Chile and Peru, such as copper processing, minerals mining, and agriculture. Since 1999, there is tendency towards revival in the Mongolian-Cuban relations. The Government of Mongolia and the Government of the Republic of Cuba have signed an Agreement on mutual protection and promotion of investments, Agreement on economic, scientific, and technical cooperation, and the Protocol of the I-st session of the Mongolian-Cuban Intergovernmental commission on economic, scientific and technical cooperation. These agreements have been of importance in establishing the legal basis for bilateral, mutually beneficial cooperation in fields such as trade and scientific and technical cooperation; in creating a proper mechanism for resolution of trade-related disputes and providing mutual preferences; and in enhancing the confidence of business community of the two country in the bilateral trade.

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1.THE UNITED NATIONS

Mongolia was admitted to the United Nations Organizations in 1961. For Mongolia, cooperation with the United Nations is an important factor of its security and development and one of the priorities of its multi-pillar foreign policy. It attaches great importance to cooperating with the UN in addressing the pressing global problems related to international peace and cooperation, social and economic development, democracy, human rights and environment protection. Mongolia fully shares the aspirations of the member countries to reform the United Nations with a view to make an organization financially stable, able to cope successfully with the challenges of the 21st century and carry out efficient and dynamic activities. Mongolia is of the view that the forthcoming Millenium Assembly and the Millenium Summit will be of pivotal significance in shaping the future stand and role of the United Nations . 1.1. Disarmament Mongolia stands in favor of a comprehensive approach to disarmament issues and considers it important to reduce all types of armaments, to realize all international treaties and agreements in the field of disarmament and to strengthen their verification mechanisms. The conclusion of the Comprehensive Test Ban Treaty constituted an important step towards the elimination of the weapons of mass destruction and alleviation of the dangers of a nuclear war. Mongolia has signed and ratified this Treaty which bans comprehensively all nuclear tests and provides an opportunity to participate effectively in the international verification system for countries which possess that potential. It has a special significance to Mongolia, situated between the two nuclear powers. 48

Mongolia stresses the need for intensification of the talks on halting the production of fissile material for nuclear weapons or other nuclear explosive devices and for conclusion of a relevant verifiable treaty. Mongolia supports the efforts to conclude a Multilateral Treaty on Security Guarantees and considers that the nuclear powers should provide wider security guarantees to non-nuclear states and signatories of the Nuclear Non-Proliferation Treaty. Mongolia supports the establishment of nuclear weapon-free zones in various parts of the world as a step conducive to international and regional peace and stability. In 1992, Mongolia proclaimed its territory as a nuclear-weapon-free zone. Adoption by the 53rd session of the UN General Assembly of a resolution on “International security and the nuclear free status of Mongolia” has become an important milestone in consolidating Mongolia’s security. In February 2000 the State Great Khural /Parliament/ passed the National Law on Mongolia’s nuclear weapon-free status. Since 1969 when Mongolia joined the Disarmament Committee, it has been actively involved in the work of the Conference on Disarmament, by taking part in negotiating treaties and agreements on disarmament issues. Mongolia supports the strengthening of disarmament and verification regimes envisaged by the Chemical and Biological Weapons Conventions. It also supports the international efforts to curb the proliferation of conventional weapons, in particular, of small and light arms. Mongolia is in favor of banning antipersonnel mines as inhumane and dangerous weapon and supports in principle the efforts and initiatives by the international community along the line. However, Mongolia has not yet acceded to the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-personnel Mines and on Their Destruction, taking at this stage a gradual approach to this issue. 49

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Mongolia holds the view that to increase transparency and to raise the significance of the UN Register of Conventional Arms, its scope should be expanded to include more types of armaments. As a staunch supporter of UN peacekeeping operations, Mongolia stands for improving their efficiency and accentuating the preventive diplomacy. It has decided to participate in UN peace keeping operations and to this end signed a Memorandum of Understanding concerning contributions on UN Stand-by Arrangements with the United Nations. 1.2. Economic and Social Development Mongolia supports the increased focus on social and economic issues in the activities of the United Nations, a more active UN involvement in development field and enhancement of international development cooperation. Mongolia sponsored a number of UN General Assembly resolutions related to economic development, environment, role of cooperatives, rural women and education for all. In our view it is important to intensify the developmental activities of the UN, its specialized agencies and international trade and financial institutions as well as improve their coordination. Mongolia has been actively working in the UN on issues related to land locked developing countries. The resolution on “Specific Actions Related to the Particular Needs and Problems of the Land Locked Developing Countries” submitted by Mongolia together with the Group of 77 was adopted by the 54th session of the United Nations General Assembly. As a follow-up to the consultative meeting of the North East Asian countries on Transit transportation of land locked developing countries held 50

in 1997 in Ulaanbaatar in cooperation with the United Nations Conference on Trade and Development/UNCTAD/ and the United Nations Development Program, Mongolia has hosted in May 2000 the first negotiating meeting of experts from the People’s Republic of China, Mongolia and the Russian Federation to develop a Draft Agreement on Transit Transportation. Since 1963, Mongolia is effectively cooperating with the United Nations Development Program /UNDP/. Under the on-going country program for 1997-2001 the United Nations Development Program and the United Nations Population Fund will provide funding from their core resources equal to $ 27,0 million for implementation of various projects in Mongolia. Continued co-operation with regional organizations is in the focus of our activities. Mongolia joined the Economic and Social Commission for Asia and the Pacific (ESCAP ) in 1962. Following the ESCAP decision to include Mongolia into the Asian highway network program, Mongolia has been implementing from 1996 a highway development project with soft loan provided by the Asian Development Bank. Within the framework of the regional cooperation, it pays special attention to the Northeast Asian sub-region. Mongolia was the initiator of resolutions adopted by the Commission on economic and environmental cooperation in Northeast Asia. Mongolia also participates in the Tumen River Area Development Program being implemented with UN support. In 1999 it hosted a meeting of participants to this project in Ulaanbaatar. Mongolia has good cooperative relationship and is implementing different projects in co-operation with other UN specialized agencies such as World Health Organization, Food and Agricultural Organization, World Intellectual Property Organization, International Labor Organization, International Atomic Energy Agency. At present discussions are under way for concluding country programs with the International 51

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Atomic Energy Agency and the United Nations Industrial Development Organization. Mongolia pays special attention to the implementation of global objectives on social development put forward by the UN conferences on children, women, disabled ,elder persons, population and social development held in the 1990s in Vienna, Cairo, Copenhagen, Beijing and Istanbul by integrating them into national social and economic policies and strategies. Mongolia in cooperation with the UN agencies working in our country has implemented the “One World ” project as a follow-up to the UN Conferences under which it has organized a series of national conferences on population and development, women and development, human rights, children’s rights and social development. Mongolia is cooperating closely with the relevant UN bodies in the field of crime prevention, in particular, narcotic drug use and organized crimes, receiving assistance and legal advice on elaboration of relevant national programs, drafting pertinent laws and implementing joint projects on capacity-building of the national police and other law enforcement organizations. 1.3. Environment Environmental protection is an important priority objective of the Mongolian Government. At present, over ten projects and national programs are being implemented in this field with the assistance and support of international organizations and donor countries, such as the Program on sustainable development of Mongolia in XXI century, State policy on ecology, National Program on ecological education, National program on protecting the biological diversity, National program on desertification, National program on natural reservations, project on ecological management capacity building, National program on miti52

gating natural disaster etc. In the field of environmental protection Mongolia is actively cooperating with United Nations Environmental Program, United Nations Development Program, World Meteorological Organization, Economic and Social Council for Asia and the Pacific and other international organizations. Mongolia adhered to almost all major international agreements and conventions on environment. Joining these important international instruments provides Mongolia with an opportunity to participate in international and regional cooperation and to receive assistance in solving its environmental problems. 1.4. Human rights In the area of human rights Mongolia adheres to the provisions of its Constitution, internationally recognized principles of human rights, the Universal Declaration of Human Rights, International Pact on Economic, social and cultural rights as well as International Pact on Civil and Political Rights, 1993 Vienna Declaration and the Program of Action. Mongolia regularly submits its national reports on the implementation of its commitments under these international human rights instruments to the relevant committees for their consideration. Mongolia collaborates with the UN agencies in bringing the national legislature in harmony with international legal norms , in training national judicial, police and other relevant personnel, in building the national capacity for ensuring the respect of human rights by receiving professional advice, technical and financial assistance.

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2. ASEAN Regional Forum Since the end of the Cold war the countries of the Asia Pacific region actively pursued multilateral economic and political cooperation and one visible example of such cooperation is the ASEAN Regional Forum (ARF) that started its activities in 1994. Currently the multilateral process of the ARF will not substitute existing bilateral security arrangements but is a complementary mechanism to bilateral dialogues processes. Mongolia joined the ARF in July 1998 and it constitutes an achievement of the active policy in the Asia Pacific region. The process presents an institutional channel that will enhance Mongolia’s ties with the region, an opportunity to become an integral part of the strategic community and increase the number of friends in the region. Mongolia seeks to have a constructive, active and regular participation in the ARF activities while taking into account availability of its own resources. Confidence building measures, preventive diplomacy discussions are the priority directions of Mongolia’s participation. Particular significance is attached to enhancing trust and confidence in the military and non-military areas. Mongolia supports the gradual, evolutionary approach taken by the ARF on the issue of its development and attaches an importance to preventing conflicts in the region, creating norms of peaceful resolution of disputes. Exchanges of views that are taking place within the framework of the ARF on the issues of the concept and principles of preventive diplomacy play an important role for the advancement of the process in accordance with the three-stage development concept. Since Mongolia joined the process it has participated regularly in 54

its major working mechanisms such as the Ministerial meeting, Senior official meetings, Inter-sessional group meetings. The Minister for External Relations of Mongolia has participated for the first time in the ARF Ministerial meeting in July 1999. The 3 rd Meeting of the ARF Heads of Defense Universities, Colleges and Institutions was organized in Ulaanbaatar in September 1999. This was the first ARF event held in Mongolia that contributed to increasing transparency and confidence in the military area, enhancing ties of the military institutions of Mongolia and its officials with the Asia Pacific regions.

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CHAPTER FOUR The chapter four describes development diplomacy including policies pursued in foreign trade, foreign investment promotion and policy on development cooperation.

1. FOREIGN TRADE POLICY

Trade liberalization was one of Mongolia’s major reforms undertaken during the transition from the centrally planed economy to the market economy. As a result all entities and individuals in Mongolia were vested with the right to engage freely in trading activities and 23820 entities were registered with the General Taxation Authority by the first quarter of 1999. According to the 1999 preliminary estimates Mongolia’s foreign trade turnover reached $ 761.4 million which was equal to 75 % of the GDP. Mongolia traded with over 60 countries. The above facts illustrate that the foreign trade has become one of the major factors contributing to the generation of the national wealth and new jobs. Notwithstanding this certain measures are still required to create more favorable trading conditions both at the international as well as domestic level. 1.1. Purpose of foreign trade policy The foreign trade policy of Mongolia is focused primarily on promoting and ensuring the following purposes through the application of trade measures: · ensuring sustainable economic development · promoting the development of national industries and services; · ensuring national and efficient use and distribution of national resources; 56 57

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· increasing the share of the Mongolian exports on the world market, with the view to ensure better foreign trade balance · creating healthy and fair competitive environment · diversifying the national production and manufacturing; · improving the distribution and supply of products and goods on the domestic market; · increasing trade turnover; · contributing to the implementation of the national security policy through protecting the environment and the health of population. The ultimate objective of the Mongolian Foreign Trade Policy is to promote sustainable development of social economic growth, improve creation of job opportunities and improve living standards of the Mongolian people. 1.2. General principles Mongolia will be adhering to the following principles in developing, reforming and implementing its trade policy: · Strengthening and ensuring economic security. The primary sources of the Mongolian foreign trade policy are: 1) the trade-related provisions embedded in the National Security Concept and the Foreign Policy Concepts, 2) the commercial laws and regulations which constitute the foundation of the trade and economic legal environment. The primary objective of our foreign trade policy is to contribute to ensuring the national security through preventing negative phenomena such as becoming a raw material supply base of another country or falling under the pressure of an international organisation or any other country resulting in the dependency from or domination of them. · Linking with foreign trade policy aims and objectives. Any decision and actions aimed at regulating trade activities undertaken by government and non-government organizations within the legal framework are to be guided by the above mentioned aims and goals. 58

· Taking into consideration trends prevailing in the world trade relations, continuing the policy of trade liberalization and maintaining trade relations on the basis of principles of mutual equality and benefit are seen to be important for ensuring the growth of the national economy. However, with due regard to fact that the enterprises which are formed and which have survived in the free competitive environment have stronger viability vis-à-vis those which are formed under protectionist regime, the policy of supporting a just emerging ‘infant industry’ until such time when the new industry ‘grows stronger’ may be chosen to be pursued, if it is established to be necessary. · Complying with WTO aims and legal system. Today, when the WTO provides equal legal regulations to the multilateral trade system and expands the role and functions of trade diplomacy in international relations, there is a need emerging for Mongolia to reflect its interests in and coordinate its activities with this organization. As a member of the WTO, Mongolia avoids undertaking of any individual actions which contradict the aims of the WTO. The individual actions are needed the decisions will be made on following criteria: whether the expected outcomes resulting from the implementation of certain actions/ for example, increasing or decreasing tariffs/ comply with the WTO laws and regulations · Complementing other trade related actions, policy objectives and reciprocity on the development of national social and economic sectors. The foreign trade policy should be implemented in close relationship with national industrial and service development policy, programs, projects, and other policy related actions and should compliment activities on the implementation of the aims reflected in those policies. · Ensuring transparency and openness of trade related laws and regulations, disseminating information to business sector. In order to expand foreign trade and economic relations of Mongolia, the government is pursuing the policy of ensuring stability of domestic laws and 59

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regulations regulating trade, is broadly promoting and ensuring transparency of information dissemination and research on foreign and domestic business environment, and working on the intensification of information exchange. 1.3. Trade policy and practical operation 1.3.1. Tariff policy. Mongolia shall follow the principles in processing and implementing the customs tariff policy on import goods and products based on non-discrimination and reciprocity. · The main principle is developing and pursuing a rational tariff system that reflects the necessity and peculiarity of every specific economic sector. It is vitally important to gradually change the tariff policy that is budget revenue oriented into a rational tariff system in order to enhance foreign trade and create a favorable structure of production and consumption. Therefore, it is appropriate to research carefully when making any decisions in changing the tariff system the final impact on every economic sector that will be involved in the entire economy and customs tariff rather than considering the influence on the state budget only. Accordingly Mongolia will adopt the following basic policies: setting a lower customs tariff on the industrial machinery and equipment that would support Mongolia’s industries encouraging the tariff policy the manufacturing of the value added finished products and setting higher customs tariff on products which are produced and are able to be produced in Mongolia, however, keep the tariff within the obligations owed to the WTO. Also Mongolia takes into consideration the world’s common tendency related to customs tariff on tobacco, alcohol and attempts exquisite goods and tries to reflect it in its customs tariff policy. · Lowering the customs tariff as the competitiveness of an economic sector, benefiting from the customs tariff, increases. Economically promising and important sectors and fields may be protected and supported for a certain period of time, and as the competitiveness and quality of 60

the finished product increases the customs tariff rate of similar and substituting products will be lowered stage by stage. · Coordinating and interconnecting the customs tariff system with the real foreign trade conditions and environment. As a developing country, Mongolia will consider that if the customs tariff will be much lower than those of other countries (especially, the major trade partners) and if the customs tariff is not lowered proportionately in conjunction with the change of other countries tariffs there will be negative impacts on domestic economic sectors. · Mongolia shall follow the WTO tariff laws and regulations and shall abide by the ceiling binding rates indicated in the WTO Schedule of tariffs. Under the Customs Tariff Law (1996) Mongolia maintains tripple column tariff system consisting of the ordinary, MFN and preferential rates, and some 260 tarifflines are included in the WTO Schedule. The Mongolian ceiling binding under the WTO, except for those items stated otherwise in the WTO Schedule, is 20 percent. The tariff Schedule and the commitments therein shall be taken into consideration when policy decisions are made. · In following the above principles Mongolia will take into account the fact that tariffs are the only lawful under the WTO instrument for affording protection to domestic producers vis-à-vis foreign competitors. Mongolia will respect its obligations before the WTO to reduce the protection of domestic producers through regular tariff negotiations with other WTO member countries. 1.3.2. Non-tariff measures. Interconnected and coordinated application of the tariff and non-tariff regulations that bolster liberal trade while strengthening competitive environment is seen to be more effective for the economy. Since the Tokyo Round the GATT/WTO member countries have been negotiating the non-tariff measures with the view to make their own trade regulations more liberal, making the non61

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tariff measures less trade restrictive. This was to ensure non-impairment by the non-tariff measures of the trade liberalization effects achieved through the tariff reduction. Mongolia will observe the above principles as well. · If unavoidably necessary, for protecting any economic sector, Mongolia will be endeavoring to resort to tariffs, and avoid the use of quantitative restrictions and prohibitions. · Improvement of standards’ systems and non-use of them for any trade restriction is important for introducing technology into social and economy. · The use of licensing system, sanitary and phytosanitary regulations for the purpose of protecting the safety and health of human, animal and plant life, and their application without posing any barrier to open trade would ensure more stable economic development in the future. · Mongolia will observe and respect its responsibilities under multilateral environmental agreements and the WTO. In accordance with the objectives of ensuring sustainable development as set out in the Rio Declaration and other relevant agreements on the environment, Mongolia will be attaching high importance to the introduction a new, environmentally friendly technology. · It’s very important to improve and develop sound rules of origin, as well as rational taxation and customs valuation systems and use them so that they do not pose any unnecessary barrier to trade. 1.3.3. Loan guarantee, soft loans, tax relieves and exemption, direct financial support and government procurement. Government will be examining and ensuring the compliance of Mongolia with the WTO rules in this respect. Ministries or agencies within the frame of their policies should be working out the amount and form of subsidies. 62

Government may seek for the possibilities of providing some support to a certain field and sector until such time when its products gain relatively credible position in the world market. This may prove to be beneficial for the development of the export-oriented production. In case of the subsidized imports which cause or threaten to cause damages to the like domestic products or which could substitute domestic production, Mongolia may impose counterveiling duties on such imports. Should the activities carried out by the importer be of dumping nature, and thus cause or may cause damages to the domestic producers, Mongolia, taking into account the relevant requirements, may undertake antidumping measures. 1.3.4. Government procurement. Since the Government is a big customer influencing the market supply and demand correlation it is crucial for the government to develop better coordinated goods and services procurement policies. In doing such activities the government ought to comply with general rule of fair competition. Project implementing companies and organizations involved in important infrastructure sectors that have heavy dependence on foreign aid and loans (telecommunications, transportation, communications) are to be selected on the basis of open and fair international tender biddings and this would be of a future influence to sectors strengthening and improving their quality. 1.4. Sector policy The realization of trade policy shall reside on the general economic development policy and on sectoral policies. Sectoral economic policies are to be developed by the appropriate ministries or agencies, whereas the sale of products produced in those sectors will be subject to the trade policy. Long-term development strategy of Mongolia is to gradually increase a portion of value added products in the Mongolian export structure and 63

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expand exports in general. Maintaining open policy towards advanced manufacturing and services technologies and applying them in the import policy are the main aspects that would support economic growth. A detailed market research on Mongolia’s export potentials in services field (e.g. banking, financial, insurance, auditing and tourism) towards its neighbors and other countries of the region is necessary. The services sector expansion could be achieved on the basis of comparatively high level of education of Mongolia’s population. An increased share of the services sector output in the GDP should be sought. If Mongolia would support its modern and national arts and culture, as well as the scientific and technological R&D, information technology development and improve the quality of university education, then, this may lead to the initiation of a new area of export. Its very important to carry on agricultural production based on latest scientific achievements. Extension service should be strengthened and extended. It is also important to improve veterinary services and sanitary and hygiene standards accordingly. 1.5. Multilateral cooperation Mongolia’s foreign activities have always aimed at expanding trade and economic cooperation with all countries. Mongolia is 134th country that has becomes the member of the WTO and therefore, the goods and services originating in Mongolia are entitled to have a market access on non-discriminatory basis. The Mongolian government will be seeking to realize the rights provided under the WTO legal system and support its export, i.e. ensure access of its godds and services to markets of member states on an equal non-discriminatory footing and without unjustifiable barriers. By doing such activities at the global organizations level Mongolia also will participate in regional trade, economic cooperation mechanisms and 64

will continue to protect its own economic interests through these mechanisms’ legal settings. The bilateral negotiations of China and Russia on the WTO accession with the member states are giving Mongolia an opportunity to benefit from their concessions agreed as a result of accession negotiations. To further explore and expand these opportunities the government of Mongolia will continue to work within legal framework of the WTO. 1.6. Regional and bilateral cooperation In order to expand markets for the Mongolian goods and promote import of advanced technologies and high quality products Mongolia will not limit its efforts to multilateral cooperation only. Within the framework of bilateral cooperation Mongolia will be seeking to protect its trade interests and will be making efforts to consolidate the results achieved within the multilateral cooperation in order to increase its trade turnover.

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2.DEVELOPMENTCOOPERATIONPOLICY.

Since 1991 the donors have been extending their assistance to Mongolia with the view to support its people’s choice for democracy, open society and market economy. The balance of payment support, aid in kind, humanitarian and relief activities as well as project assistance were the forms in which the donor assistance was implemented. The Official Development Aid rendered by the donors and international organizations has been of crucial importance in the process of reforming the Mongolian society, furthering the transition to the market economy and improving the socio-economic infrastructure. It has been the cornerstone of curbing the economic crisis. Since 1991 the Donors’Assistance Group Meetings have been held six times in Tokyo and once in Ulaanbaatar. During the period from 1991 to June 2000 the donors committed over USD 2.3 billion, of which over 70 percent was disbursed. This makes Mongolia one of the bigger recipients in terms of the aid per capita. During the last Seventh Assistance Group meeting the donors pledged US$ 320 million to Mongolia for the next 18 months as an expression of their strong support for the economic and social reforms, as well as democracy building and good governance. In undertaking the aid commitments the donors took into account the difficult trading conditions of Mongolia, and the need for restructuring the banking financial and other sectors. They also urged the Government of Mongolia to take urgent actions to reform and strengthen the banking and financial system, identify the privatization of the most valued enterprises, enhance the efficiency and quality of the social services over the short and medium terms. 2.1. Foreign Aid receiving policy The Government policy on the foreign aid aims at implementing the 66

Government Reform Agenda, focusing primarily on ensuring the macroeconomic stabilization, establishment of an efficient government structure, infrastructure development, private sector support, the social sector problem solving. Alongside developing a private sector-led economy with higher efficiency the Mongolian Government has set as an objective of high priority the issue of setting up a rational structure of the social sector and preserving the pristine nature of the environment. The project - related loans and assistance continue to constitute the bulk of the official foreign aid provided by the donor countries and international organizations. Most of this aid has been allocated to the development of infrastructure, a priority area of Mongolia’s development. Additionally, a part of foreign resources will be committed to macro - economic stabilization and social development in the form of non - project assistance and loans. It will include activities aimed at creating a healthy banking and financial system, building up the financial capacity, ensuring human resource development, reforming public administration, alleviating the poverty, reducing unemployment and protecting the environment. 2.2. Present Foreign Aid coordination, information and monitoring institutional arrangements At present the “Rule on coordination of the Official Development Assistance from foreign countries and international organizations received through the Government of Mongolia” approved by virtue of the Government Rezolution No 93,1999 is the main instrument regulating the relations arising from the receipt, utilization and control of foreign aid. The rule alsois to coordinate the activities of organizations participating in aid implementation and sets their responsibilities. 67

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This rule provides for the following: The establishment of the Foreign Investment and Foreign Aid Coordination Council, an inter-ministerial consultative body, which is to issue recommendations related to policy measures, submit them to the Cabinet for formal approval, and supervise their implementation: Assigning the Ministry of External Relations with the role of the channel to present aid issues to foreign countries; carry on negotiations and conclude agreements; make official assessments on aid programmes and projects as to their consistency with the concepts of National Security, External Economic Policy of Mongolia and aid utilization priorities; monitor the implementation and coordination of grant aid received through bilateral and multilateral channels. Assigning the Ministry of Finance with the role of an institution to identify aid priorities and requirements, define foreign aid needs for a given year, make analysis, issue a government guarantee, conclude loan agreements and relending contracts, coordinate and manage debt service activities. Assigning the line ministries with the task of submitting sectoral srategy papers and documents and loan requests to the Ministry of Finance, while filing grant assistance requests to the Ministry of External Relations, coordinating the implementation and providing aid related information. The responsibility and accountability of every borrower to the effect that the borrower must pay the interest and principle of their loan fully and submit aid utilization reports on time, upon the failure of which the right for further request for foreign aid is exhausted. The Information exchange arrangement under which the line ministries must submit a report on aid utilization twice a year to the Ministry of Finance and Ministry of External Relations which are to further provide 68

the governemnt institutions with aid related information and submit semiannual as well as annual foreign aid implenentation report to the Foreign Investment and Foreign Aid Coordination Council and the Cabinet meeting. A UNDP financed project aimed at strengthening and supporting the coordination and management of external development resources is underway at the Ministry of External Relations. 2.3. Measures needed for better foreign aid coordination and management Through upgrading the efficiency of the use of foreign aid and rationalizing its disbursement Mongolia would be able to achieve the objective ensuring faster deevlopment, improving the living standards of the population and heightening their health and education levels. In order to provide sustainable institutional framework and cease the release of further temporary decisions there is a strong need to have the Law on Foreign Aid which would provide economic safety, define more clearly powers and authority of the institutions. The drafting of this law is underway and is being discussed. 2.4. Aid utilization and external financing requirements Assistance and support provided by more than 40 bilateral and multilateral donors have played and will continue to play important role in strengthening democracy, expediting the transition and improving the living standards of people. Organization of training, provision of policy support, financing of reforms in major sectors, infrastructure development support, resolution of issues relating to social services during the transition period, formation of the institutional structure. 69

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During the period from 1991 to 1999 the rate of aid commitments averaged USD 210 million annually, and the disbursement averaged USD 170 million per year. As it is evident from following Figure, the aid disbursement growth is relatively stable.
3 0 0 ,0 0 0 .0 0 2 5 0 ,0 0 0 .0 0 2 0 0 ,0 0 0 .0 0

From the perspective of the sectoral composition of the foreign aid and loans provided in the period between 1991-1999 24 percent was devoted to infrastructure development, namely, energy, roads and transportation and telecommunication’s sector, 30 percent – to economic management improvement, 15 percent- to social welfare sector. The figure below shows share of loans and grants in the total donor assistance commitments and in its actual disbursement for the period from 1991 and 1999:
ODA BY SECTOR 1991-1994 AGR OTH 3% ENY 21% 15% IND 7%

US$ Thous

1 5 0 ,0 0 0 .0 0 1 0 0 ,0 0 0 .0 0 5 0 ,0 0 0 .0 0 0 .0 0 1991 1992 1993 1994 1995 1996 1997 1998 1999

ODA BY SECTOR 1995- 1999
OTH I ND 9% 5% M R 14% TRP 5% TRP 18% SW 20% AGR 6% ENY 23%

C o m m itm e n ts

D is b u r s e m e n ts

SW 15% TRP 5%

Aid utilization figures show that in the early years the assistance was predominantly BOP or emergency assistance, amounting, for instance, to 61 percent of the total in 1991-1994. In 1994-1999 this amount decreased to 25 percent, while the share of the capital assistance/project financing increased. For example, if the capital assistance/project financing accounted for 21 percent of the overal assistance, in the last 5 years this figure has risen to 49 percent.
COMMITMENT BY ODA TYPE 1991-1994 TA 18%

MR 30%

TEL 3%

DISBURSEMENTS BY ODA TYPE 1991-1994
TA 19%

CA 21%

BOP 61%

CA 21%

BOP 60%

The years from 1999 to 2002 will play a decisive role for enhancing Mongolia’s economic stabilization and establishing a strong foundation for the future development. Major economic objectives of the Mongolian government over the medium term is to enhance the macro-economic stabilization, intensify structural reforms in economic and social sectors, institute the private sector-led new economic structure, lay the necessary foundations for creating a relatively self-sufficient economic structure and on this basis rapidly develop export-oriented production and service sectors, as well as increase domestic savings.
COMMITMENT 1991-1999
DISBURSEMENTS 1991-1999

COMMITTMENTS BY ODA TYPE 1995-1999
TA 26% BOP 25%

DISB URSEM ENTS BYO TYPE 1995-1999 DA

TA 27%

BOP 25%

Grants 34%
Loans 46%

CA 49%

CA 48%

Loans 66%

Grants 54%

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3. FOREIGN INVESTMENT PROMOTION POLICY

Within the framework of the above objectives priority areas for utilization of foreign aid and loans in implementing investment projects are defined as follows: Ensuring the macro-economic stabilization and implementing the structural reform program l Development of production infrastructure l Development of social infrastructure and strengthening the social security network l Support for the private sector In the nearest future the assistance and cooperation of the donor international banks, financial institutions and countries will remain an important factor for the achievement of the objective of the establishment of a private-sector-led economy on the basis of the macro-economic stabilization, through:
l l l l l l

3.1. Investment promotion conditions and environment Mongolia offers the following competitive advantages and favorable environment for investors: stable political environment and open economy; strategic & easy access to the giant markets of Russia and China; extensive and largely untapped natural resources; favorable legal conditions well educated and high literacy population; clean and undisturbed environment a hospitable and friendly culture

3.2. The aim and purpose of the foreign investment promotion policy The core objectives of the Government policy on foreign direct investment promotion are to maintain independence and economic security of Mongolia, to develop infrastructure, and to increase export oriented domestic production and service. Foreign investment policy will be directed to interconnecting the foreign investment sector and sequence with the policy on economic development structure, and to harmonizing the sector specific development and production, expedient percentage of a specific country participation with the national economic security. Mongolian Government has been supporting and promoting foreign direct investment since its first years of economic transition, and FDI has became one of the important factor in making up for domestic capital recourses shortcoming (deficiency), in running an entity in market economy, in improving management, in introducing advanced technology, in reducing unemployment, in increasing export and in improving the competitiveness of Mongolian products. 73

Ensuring an internal and external balanced environment; Deepening the structural adjustment reforms; Acceding new market; Encouraging the foreign direct investment; Increasing internal saving

The government is making a special attention to the issues of economic stabilization, financial sector reform, deepening the reform in the infrastructure sector, public administration reform issues and support of foreign direct investment. The donor assistance would play an important role in supporting the Government efforts in this respect not only in the medium term also in the long term perspective.

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3.3. Current situation of foreign direct investment “Foreign Investment Law” was one of the firsts among the most required laws to be passed during the transmission period to the market economy. It was passed in 1990 by the former People’s Ikh Khural (Parliament) of Mongolia and was amended in 1993. Currently China, Japan, the South Korea, USA and Russia are the leading foreign investors in Mongolia. Since 1990 till 2000.02.01 there have been registered and operating approximately 1273 wholly owned companies and joint ventures with the total investment of US $ 284 million. In 1997 and 1998 Mongolian Government with the World Bank successfully organized Investors conference on oil, mining, natural gas, agroindustry and tourism sectors. As a result the number and quality of foreign investment in Mongolia have increased. Since 1997 USA, Canadian and Australian investors started showing their interest in mining and oil sectors. Potential investors from Russia are also increasing and intensifying their participation in these sectors. The foreign investment is also broadening structurally in sectors such as passenger transportation, telecommunication, wool and cashmere finished product manufacturing, garment production and mining. “One Stop Service Center” was established at the Foreign Investment and Foreign Trade Agency (FIFTA) by the decision of the Mongolian Government in order to make the registration of foreign investors efficient and to make the access to customs or taxation authorizations easier. 3.4. Internal legal environment Since it’s transition to the free market economy in 1990 the Government of Mongolia has renewed and adhered its laws and regulations in confor74

mity with the free market economy system. It was in 1990 when such laws as Foreign Investment Law, Securities Law, Currency Settlements Law, Partnership and Company Law, etc which have significant economic importance were ratified in the first place. The Foreign Investment Law protects properties and interests of foreign investors, legalizes types and forms of foreign investment as well as tax preferences extended to foreign investors. A government implementing service Foreign Trade and Foreign Investment Agency was set up to identify leading investment sectors and to implement and facilitate foreign investment policy. According to the Foreign Investment Law entities with foreign investment shall enjoy the following guaranties and protection: · Foreign investment within the territory of Mongolia shall enjoy the legal protection guaranteed by the Constitution, this law and other legislation which is consistent with those laws and as guaranteed by the international treaties to which Mongolia is a party. Foreign investment within the territory of Mongolia shall not be nationalized or unlawfully expropriated. Mongolia shall accord to foreign investors no less favorable treatment in respect of the possession, use, and disposal of their investments than that accorded Mongolian investors.

· ·

Foreign investors shall enjoy the following rights: · To possess, use, and dispose of their property including the repatriation of investments which contributed to the registered capital of a business entity with foreign investment. To manage or to participate in managing a business entity with foreign investment. To transfer their rights and obligations to other persons in accordance with the law. 75

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· ·

To transfer their returns and profit abroad. Foreign investor enjoys the right to lease the land for the period of 60 years and extend it once for a period of up to 40 years.

ment. During the last 10 years Mongolia has signed the “Agreement on Mutual Protection and Encouragement of Investment” with 23 countries and the “Agreement on Avoidance of Double Taxation” with 9 countries. Mongolia has also acceded to the Washington Convention on Investment Dispute Settlement as well as to the Seoul Convention on Investment Insurance.

A business entity with foreign investment shall be granted the tax preferences set out below effective from the date production activities start: · Power and thermal plants and their transmission networks, roads, railways, air-cargo and engineering constructions, and basic telecommunications networks shall be exempt from tax for 10 years and be entitled to 50 percent tax relief for the following 5 year period. Mining and processing of mineral resources (except precious metals), oil and coal, metallurgy, chemical production, machinery, and electronics shall be exempt from tax for 5 years and be entitled to 50 percent tax relief for the following 5 year period. If other business entities with foreign investment exports more than 50 percent of its production, it shall be exempt from tax for 3 years and be entitled to 50 percent tax relief for the following 3 year period. Technological machinery listed in the equity fund of a business entity with foreign investment shall be exempt from VAT (13%) and customs duty (5%). If foreign investors reinvest income owing to them in the same business entity with foreign investment which provided that income, the taxable income of that business entity shall be entitled to a deduction.

·

·

·

·

3.5. Legal external environment Since 1990, Mongolian Government has made significant effort in creating favorable external environment for the attraction of foreign invest76 77

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Annex

1. PROGRAMME OF GOVERNMENT ACTIVITIES 2. STRUCTURE OF THE MINISTRY OF EXTERNAL RELATIONS 3. FOREIGN TRADE 4. FOREIGN INVESTMENT 5. DIPLOMATIC MISSIONS AND CONSULATES OF MONGOLIA 6. ADDRESSES OF MONGOLIAN DIPLOMATIC & CONSULAR REPRESENTATIVES 7. ADDRESSES OF THE FOREIGN EMBASSIES TO MONGOLIA 8. MONGOLIA’S MEMBERSHIP IN INTERGOVERMENTAL ORGANIZATIONS INTERNATIONAL

9. LIST OF THE MULTILATERAL AGREEMENTS TO WHICH MONGOLIA IS A PARTY 10. COUNTRIES WITH WHICH MONGOLIA MAINTAINS DIPLOMATIC RELATIONS

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Annex 1

Asia and Pacific To pursue an active policy in the Asia and Pacific region. To set a target of accessing to the APEC and to coordinate with the policy of domestic renovation of economy and legislation. To view as priority to develop bilateral relations with the countries of the region when putting the aim of participating in the economic cooperation and political negotiations of the region. To set a target of expanding relations and cooperation established with Japan to the level of comprehensive partnership. To develop traditional relations and cooperation with India according to the concept of agreement on friendly relations and cooperation made between Mongolia and India. To pay special attention to raise the level of political relations established with the Republic of Korea, Australia and Canada and to expand cooperation. To develop friendly relations with the countries of Latin America in the framework of international organizations and to start establishing trade and economic relations with the countries of Latin America with the strong position in Asia and Pacific region. To set a target of participating in negotiations on development AsiaEurope political and economic cooperation. Europe To strengthen partnership relations with the European Union and to set a target of enhancing cooperation with the member countries and especially with Germany, Great Britain and France. To develop mutually beneficial cooperation with other European countries, especially with Scandinavian countries. Central Asia and Middle East To develop mutually beneficial relations with the countries of Central Asia to set a target to cooperate in the field of protection of national security of the region.

PROGRAMME OF GOVERNMENT ACTIVITIES FOREIGN POLICY To pursue the foreign policy aimed at safeguarding independence and sovereignty of the state through emphasizing importance of national interest and friendly relations, consolidation of the position of Mongolia in the international community and enhancement of humanitarian relations. To continue the foreign multi-based policy of the former Government, to pursue an active balanced foreign policy compatible with national interests. To emphasize importance of maintaining good relations based on equality with the neighboring countries. To pursue the policy of balancing economic interests of the countries strategically important to Mongolia. To view the relations established with the Russian Federation, People’s Republic of China and the United States of America as priority and in connection with the development of international and regional relations. To expand good neighborhood relations and mutually beneficial relations based on equality according to the concept and provisions of the agreement on friendly relations and cooperation made between Mongolia and the Russian Federation and to continue revision of the legal basis of the relations. To pursue the policy of sustainable development of friendly, mutually beneficial relations and cooperation based on equality with the People’s Republic of China according to the provisions of the agreement of Mongolia and the People’s Republic of China. To expand the cooperation established with the United States of America as a core of our foreign policy in order to strengthen transition to the market economy and democracy and to safeguard the independence of Mongolia and national security.

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To expand relations with the countries of Middle East and to pay special attention at development of trade and economic cooperation. To put efforts for peaceful and sustainable development. In order to ensure the national security of Mongolia, consolidation of the position in the international arena and economic development, to actively participate in the activities of the United Nations and other international organizations to put efforts of efficient use of the capacity. In this regard to actively support efforts of the international community aimed at safeguarding peace and security, democracy, human rights, sustainable development, protection of environment and resolvement of social issues.

Annex 2 STRUCTURE OF THE MINISTRY OF EXTERNAL RELATIONS

Minister
N.Tuya

State Secretary O.Ochirjav Policy Planning & Coordination Department, Director Ts.Batbayar Foreign Trade& Economic Cooperation Department, Director A.Munkhbat Political Department, Director Kh.Behbat International Organizations Department, Director D.Ganhuyag Law Department, Director G.Seseer Information & Monitoring Department, Director D.Ganbold Public Administrative Department, Director D.Enkhbat Protocol Division, Chief P.Urjinlkhundev Center of Foreign policy study Head of center G.Tomorchuluun Foreign Trade & Foreign Invenstment Agency, Head of Agency D.Jargalsaihan

Diplomatic & Consular Missions

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18 Luxembourg 19 Moldavia 20 Holland 21 Norway 22 Poland 23 Portugal 24 Romany 25 Russia 26 Slovak 27 Span 28 Sweden 29 Switzerland 30 Ukraine 31 England 32 Yugoslavia Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import Export Import total Export Import total Export Import total Export Import total Export Import total 19,5 19,5 3493,1 1675,6 5168,7 232,1 809,1 1041,2 19,6 6782,2 6801,8 5,8 51,2 57 0,8 2637 2637,8 40585,6 150243,9 190829,7 122 122 0,1 461,5 461,6 18,4 324,7 343,1 70528 1160,9 77688,9 62,7 1486,5 1549,2 12782,3 3589,4 16371,7 64,8 53,7 2,4 56,1 101138,8 58470,8 159609,6 62,9 62,9 469,3 469,3 8991,7 8103,1 17094,8 962,9 962,9 132 146 135,8 527,5 678,7 2,3 137,1 117,6 119,6 119,6 947,7 947,5 87 90,5 53,3 130 129,9 199,1 7,2 7,6 50,5 80,7 55 305,5 102,5 105,3 53,4 70,9 55,3 69,7 273,7 286,2 103 97 100,7 209 209 173,6 173,6 174,8 140,3 129 3628,5 967,1 3876,8 0,3 41,8 42,1 24 4220,1 4244,1 1,4 15 16,4 42020,1 138910,4 180930,5 9,6 133,8 143,4 239,5 239,5 13 1007,5 1020,5 578,6 2321,6 2900,2 31,2 1571,4 1602,6 13481,5 3793,4 17274,9 16,8 16,8 191688,3 63959,9 255648,2 253,7 253,7 3653,3 8006,4 11659,7 103,5 57,7 75 0,1 5,2 4 122,4 62,2 62,4 700 0,6 0,6 103,5 92,5 94,8 109,7 117,5 51,9 51,9 70,6 310,3 297,4 0,8 200 204,7 49,8 105,7 103,4 105,5 110,7 105,5 31,4 30 189,5 109,4 160,2 54,1 54,1 40,6 98,8 68,2

Annex 3 FOREIGN TRADE
No Country 1997/1998 price percent 5,3 4,7 15858,5 109,3 15863,8 101,5 3435,6 266 2087,3 154 5522,9 203,5 13,3 1070,1 4061,7 123,6 4075 80,6 1404,9 160,6 1404,9 160,6 308,8 34,4 343,2 46,9 3143 6661,5 91,6 6708,4 92,2 43,8 7,7 790 5,9 833,8 59,4 314,8 105,4 314,8 105,4 3831,1 23629,1 6155,3 326,7 9986,4 525,5 289,6 61,2 26545,2 246,6 26834,8 238,8 2138,8 34,2 25904 127 28042,8 105,3 57,6 2414,5 57,6 2414,5 0,9 1,9 2028,1 116,8 2029 113,7 735,7 8172,2 324,4 183,9 1060,1 571,5 10050,9 88,5 3405,8 11,5 13456,7 32,3 107 58 107 58 86 67,8 86 67,8 1998/1999/ price 26,5 382,7 409,2 855,1 1833,1 2042,1 6,5 3110,1 3116,6 2398,9 2398,9 34,4 34,4 108,8 4833,5 4942,3 3,7 2991,9 2995,6 82 82 5171,5 5171,5 671,5 7584,4 8255,9 2278,3 22592,8 24871,1 13,4 13,4 7,7 1362,3 1370 100,9 100,9 12444 4419,9 13952,6 27 27 5,9 5,9 /thousand US$/ percent 500 2,4 2,5 24,9 87,8 36,9 48,9 76,6 76,5 170,7 170,7 10 232 72,6 76,8 8,4 378,7 359,3 26 26 84 84 231,9 28,6 30,7 106,5 87,2 88,7 23,3 23,3 855,5 67,2 67,5 31,1 31,1 123,8 129,8 103,7 25,2 25,2 6,8 6,8

Austria 1 Austria
2 Belgium Belgium

Bulgaria 3 Bulgaria
Belarus 4 Belarus
5 Croatia

Czech 6 Czech
7 Dane 8 Estonia 9 Finland 10 France 11 Germany 12 Greece 13 Hungary 14 Ireland 15 Italy 16 Latvia 17 Litva

Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total

Other Arab 33 countries 34 China 35 Cyprus 36 Gorge 37 Hong-Kong

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38 India 39 Indonesia 40 Israel 41 Japan 42 Jordan 43 Kazakhstan 44 Kyrghyzstan 45 North Korea 46 South Korea 47 Kuwait 48 Lebanon 49 Malaysia 50 Macao 51 Nepal 52 Pakistan 53 Philippine 54 Singapore 55 Taiwan 56 Thailand 57 Turk Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total 134,2 1531,3 1665,5 0,1 721 721,1 69,2 29,5 98,7 12598,4 59252,6 71851 554 554 487,8 3286,6 3774,4 1356 1356 24,9 59,4 84,3 3341,9 37655,6 40997,5 48,5 48,5 131,2 131,2 1459 1459 928,7 928,7 110,8 110,8 393,9 393,9 8,9 8,9 1278,1 17275,2 18553,3 6916,7 3948,6 10865,3 603,9 603,9 153,8 441,3 595,1 51,3 215,2 171,2 2120 165,3 165,3 7,1 13,7 33,5 171 93,3 69 183 210,2 135,8 111,3 28,9 272,3 78,2 75 18,3 53,2 86,2 65,3 168,9 168,9 499 499 1615,4 1615,4 305,5 305,6 18,9 18,9 13231 98,3 105,5 159,6 125,9 145,4 161,8 161,8 524,8 127,8 107,4 611,3 1769,8 2381,1 0,3 1810 1810,3 57,4 57,4 10943,5 53060,7 64004,2 201,6 201,6 331,5 670,9 1002,4 1255,5 1255,5 230,5 230,5 1952,4 34720,1 36672,5 110,4 0,1 110,5 79,8 79,8 1839,5 1839,5 315,3 0,7 316 28,9 28,9 4,2 4,2 902,5 8656,3 9558,8 55,5 4185,2 4240,7 493,7 493,7 318,9 260,9 579,8 455,5 115,6 143 300 251 251 194,5 58,2 86,9 89,5 89,1 36,4 36,4 68 20,4 26,5 92,6 92,5 915,7 273,4 5,9 92,2 89,4 227,6 227,8 60,8 60,8 126,1 126,1 284,6 285,2 7,3 7,3 47,2 47,2 70,6 50,1 51,5 0,8 106 39 81,7 81,7 207,4 59,1 97,4

MONGOLIAN FOREIGN POLICY BLUE BOOK
58 Turkmenistan 59 United Arab Emirate Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total Export Import total 20 171,6 191,6 11,6 134,5 146,1 3014,6 3014,6 53,2 53,2 34,1 34,1 92,9 92,9 73,7 73,7 172,3 427,4 599,7 29402,5 36395,7 65798,2 18,7 2526,2 2544,9 21,6 21,6 345150,3 503297,5 848447,8 66,2 73,9 36,9 161,1 127 113,8 113,8 312,3 312,3 51,7 51,7 386,7 42,3 56,8 116 99,6 105,2 16 306,8 270,5 184,6 184,6 76,4 108 70,3 22,9 22,9 117,2 99,4 216,6 129,2 129,2 3,9 1663,8 1667,7 10,9 10,9 100,5 100,5 392,7 2467 2859,7 647,2 647,2 31,9 31,9 46314,3 28903,6 75217,9 557,7 474,1 1031,8 692,6 692,6 335635,2 425761,7 761396,9 13,4 11,9 96 88,4 55,2 55,3 20,5 20,5 136,3 136,3 227,9 577,2 476,9 157,5 79,8 114,3 2982,3 18,8 40,5 3206,5 3206,5 97,2 84,6 89,7

60 Uzbekstan 61 Vietnam 62 Egypt 63 Zimbabwe 64 Argentina
65 Brazil 66 Canada 67 Mexico 68 Panama 69 USA 70 Australia 71 New Zealand Total

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51 52 53 54 55 56 57 58 59 Invested Capital 6 6 2 6 3 4 2 9 1 22 408 2 4 3 37 8 5 6 1 27 95 14 1 1 1 9 5 13 5 151 1 2 1 2 10 2 8 13 1 1 3 8 1 301 3 34 3 1 19 56 258,13 2047,15 60,15 330,48 10,40 366,95 1012,00 13976,72 12,00 10388,70 61557,78 116,97 259,00 35,05 2284,31 1654,16 804,60 222,33 13,50 7275,66 32149,70 3500,42 15,00 46,25 883,48 8571,50 54,00 296,86 656,50 22600,66 750,00 37,89 1022,86 4461,00 517,51 26,50 121,68 1418,57 45,00 130,00 862,92 214,80 13506,00 15795,49 189,90 8077,08 196,37 13,00 6932,32 2615,01 Syria Taiwan Turkey Ukraine United Kingdom United States Vietnam Virgin Islands (United Kingdom) Yugoslavia Total 3 8 1 1 27 53 8 1 1 1362 20,17 111,13 1,50 146,00 9090,31 19232,51 125,00 40,00 1,50 235524,48

Annex 4 FOREIGN INVESTMENT
1990 – 15/09/1999 ( by thousand US $ ) Country Antigua and Barbuda Australia Austria Bahamas Belarus Belgium Bermuda (United Kingdom) Bulgaria Cameroon Canada China Cayman Islands (United Kingdom) Croatia Cyprus Czech Estonia France Germany Honduras Hong Kong Hungary India Iraq Ireland Israel Italy Japan Kazakhstan Korea, North Korea, South Kyrgyz Lebanon Liechtenstein Macao Malaysia Moldova Netherlands New Zealand Norway Pakistan Panama Poland Portugal Russia Saudi Arabia Singapore Slovakia Spain Sweden Switzerland Number of Investors

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

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Annex 5 DIPLOMATIC MISSIONS AND CONSULATES OF MONGOLIA

21. Vientiane

Brunei, Cambodia, Myammar, Thailand

Permanent Missions Embassies 1. Alma-Aty Accredited to: Armenia, Azerbaijan, Georgia, Kyrgyzstan, Tajikstan, Turkmenistan Albania, Bulgaria, Cyprus, Greece, Lebanon, Macedonian, Romania, Uzbekistan Australia, New Zealand, Liechtenstein, Switzerland Denmark, Luxembourg, Netherlands Austria, Bosnia-Herzegovina, Croatia, Moldova, Slovenia Bahrain, Palestine, Jordan, Syria, Israel, Oman, Qatar, Yemen, Kuwait, Emirates, Morocco Indonesia , Malaysia, Philippines, Singapore, Argentina, Brazil, Mexico Iceland, Ireland, Norway, Sweden Belarus, Finland , Iran, Iraq, Italy, Portugal, Spain Slovakia Chile Peru Estonia, Latvia, Lithuania, Ukraine Canada
General Consulates Consular representatives

22.Geneva 23.New York

2. Ankara

Holy See, Malta not accredited to other countries but serves as point of contact with countries of Africa, Latin America and the Pacific.

Trade representative 24. Singapore

3. Beijing Pakistan 4. Bonn 5. Brussels 6. Budapest 7. Cairo

25. Irkutsk (Russia) (Russia) 26. Ulan-Ude(Russia) 27. Huhe Haote(China) 28. Toronto (Canada)

29. Ekaterinburgh (Russia) 30. Elista (Russia) 31. Erlian (China) 32. Brest (Belarus) 33. Kiev (Ukraine)

8. Nepal, 9. Hanoi 10. Havana 11. London 12. Moscow 13. Paris 14. Prague 15. Pyongyang 16. Seoul 17. Sofia 18. Tokyo 19. Warsaw 20. Washington

Honorary Consuls Munich, Frankfurt (Germany), Truest (Italy), Vienna (Austria), Gothenburg (Sweden), Copenhagen (Denmark), Amsterdam( Netherlands), Houston (USA), Sydney (Australia), Pusang (ROK), Kuala Lumpur (Malaysia), Oslo (Norway), Vancouver (Canada), Osaka (Japan), Calcutta, Mumbai (India), Hong Kong (China)

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1. Paris G.Luuzan Ambassade of Mongolie 5, Avenue Robert Schumann 92100 Boulogne-Billancourt DPRK Pyongyang MansuDong Embassy of Mongolia Velvyslanectvi Mongolska Na Marne 5, Praha-6, 160 00 Cesca Republika Bulgaria, Sofia 1113 st Frederic Jolio Kuri Embassy of Mongolia 52 Embassy of Mongolia 33-5 Hannam-Dong, Vongsan-gu, Seoul Embassy of Mongolia 21-4Kumiyama Cho Shibuya Ku Tokyo 150 Embassy of Mongolia Van Phuc Diplomatic Quarter Villa No 5 Hanoi/Vietnam Mission Permanente de la Mongolie geneve 4 Chemin des Mollies 1293 Bellevue /GE 6 East 77th street, New-York N.Y. 10021 USA Tel: 0033-1-46052318 Fax:0033-1-46053016 Email:106513.2672@compuserve.co m Tel: 00850-23817322 Fax:00850-23817616 Tel: 004202-24311198 Fax:004202-24314827 E-mail:mongemb@bohem-net.cz Tel: 00359-2-9630765 00359-2-659012 (æèæ¿¿ð) Fax; 00359-2-9630745 E-mail:mongemb@mbox.infotel.bg Tel: 0082-2-794-1950 0082-2-794-1951 Fax:0082-2-794-7605 E-mail:monemb@uriel.net Tel: 0081-33-469-2088 0081-33-469-2162 Fax:0081-33-469-2216 E-mail:embmong@gol.com Tel: 0084-4-8453009 Fax: 0084-4-8454954 E-mail:mongembhanoi@hn.vnn.vn Tel: 0041-22-7741974 Fax:0041-22-7743201 E-mail:mission.mongolia@ties.itu.int Tel: 001-212-4726517 001-212-7373874 Fax: 001-212-8619464 E-mail:mngun@undp.org Tel: 0086-471-4303254 0086-471-4303266 Fax:0086-471-4303250 Tel: 0086-479-7521538 ext:2307 Fax: 0086479-7522194 Tel: 007-30122-15275 007-30122-20499 Fax:007-30122-14188 E-mail:mnc@bss.ru Tel: 001-1-416-8657779 001-416-8657707 Fax: 001-416-8631515 E-mail:consulgen@mongolia.org Tel: 007-3952-342145 007-3952-342445 Fax:007-3952-342143 E-mail:irconsul@angara.ru Tel: 007-39422-39407

Annex 6 ADDRESSES OF MONGOLIAN DIPLOMATIC & CONSULAR REPRESENTATIVES
¹ Diplomatic representation Embassy Alma-Aty Head of the Diplomatic Representation Yu. Sandag Address Phone, fax & E-mail

2. 3. 4.

Pyongyang Praha Sofia

D.Byambaa Jargalsaikhan B.Ganbold

1.

Alma-Aty st.Aubakerova 1/1 Embassy of Mongolia Mongolistan Buyukelciligi (Embassy of Mongolia) Koza sokak No.109 G.O.P / ANKARA Turkey Embassy of Mongolia, 90/3 Aree Samphan 1, Phaholyothin Road 5, Phyathai, Bangkok 10400, Thailand Botschaft der Mongolei Siebengebirgsblick 4-6 D53844 Troisdorf Aussenstelle der Botschaft Gotlandstr.12 D-10439 Berlin Ambassade de Mongolie Avenue Besme 18, 1190, Forest Bruxelles Hungary 1022 Budapest, Bogar Utca 14/c Mongol Nagykovetsege Embassy of Mongolia N.02, Xiushui Beijie Jian Guo Men Wai Da Jie Beijing, China

2.

Ankara

B. Altangerel

Tel: 007-3272-200865 007-3272-293790 Fax: 007-3272-293259 E-mail: monkazel@kazmail.asdc.kz Tel: 0090-312-4467977 Fax: 0090-312-4467791 E-mail: mogolelc@turnet.net.tr Tel: 0066-2-2785792 0066-2-2785793 Fax:0066-2-2784927 E-mail: mongemb@loxinfo.co.th Tel: 0049-2241-402727 Fax: 0049-2241-47781 E-mail: mongolbot@aol.com Tel: 0049-30-4469320 Fax:0049-3069321 E-mail: ganbat@metronet.de Tel: 0032-2-3446974 Fax: 0032-2-3443215 E-mail: Embassy.mongolia@skynet.be Tel: 0036-1-2124579 Fax:0036-1-2125731 E-mail: mnk@mail.datanet.hu Tel: 0086-10-6532-1810 0086-10-6532-1203 0086-10-6532-6909 Fax: 0086-10-6532-5045 E-mail: Monembbj@public3.bta.net.cn Tel: 0048-22-849-9391 Fax: 0048-22-849-9391 E-mail: mongamb@ikp.atm.com.pl Tel: 001-202-333-7117 001-202-298-7137 Fax:001-202-298-9227 E-mail:monemb@aol.com Tel: 00856-21-315220 Fax:00856-21-315221 E-mail:mongemb@pan-laos.net.la Tel: 0053-7-242763 Fax:0053-7-240639 E-mail:monelch@ceniai.inf.cu Tel: 0091-11-4631728 Fax:0091-11-4633240 E-mail: embassy.mongolia@gems.vsnl.net. in Tel:0020-2-3506012 Fax: 0020-2-3506012 E-mail:monemby@intouch.com Tel:0044-171-937-0150

5.

Seoul

L.Galbadrakh

3 .

Áàíãêîê

Ë.Áàÿðò

6.

Tokyo

S.Hurelbaatar

4. 5. 6.

Bonn Berlin Brussels

B.Bayarsaikhan B.Ganbat Sh.Altangerel

7.

Hanoi Permanent missions Geneva

À.Tsolmon

8.

S.Bold

9.

New-York

J.Enkhsaikhan

7. 8.

Budapest Beijing

R.Hatanbaatar D.Tsakhilgaan

General Consulates 10. Huhe Haote

S.Bud

9.

Warsaw

D.Chuluundorj J.Choinkhor

10. Washington

Ambasada Mongolii 00478 Warszawa, Polska ul. Rejtana 15 m. 16 Embassy of Mongolia 2833 M Street, NW Washington DC 20007 USA Embassy of Mongolia Q.Wat Nak Km.3 P.O. Box 370 Vientiane Lao P.D.R Embajada de Mongolia Calle 66 No 505 Esguina a 5 ta-A Miramar , Habana CUBA Embassy of Mongolia 34, Arcbishop Makarious Marg New Delhi 110003 India Embassy of Mongolia No.14, str 152 , MAADI, Cairo Egypt Embassy of Mongolia 7

11. Erlian 12. Ulan-Ude

Ts.Buyanbadrak h R.Zhamts

Zhongguo Huhe Haote Xinchen qu Wulanxiaoqu 5 hao Lou Menguguo Zhonglinshiguan Erlian fandian 308 hao fangjian Ereen Haote China Ã.Óëàí-Óäý Óë.Ïðîôñîþçñêàÿ Ãåí.Êîíñóëüñòâî Ìîíãîëèè BCE Place Suite 1800, P.O.Box 754 181 bay Street. Toronto,Ontario Canada M5J 2T9 Russia, Irkutsk St Lapina 11 General consular of Mongolia. Kyzyl 667000 St. Angarsky 27 number 17

11. Vientiane 12. Havana 13. Delhi

L.Bayart B.Nyamaa O.Nyamdavaa

13. Toronto

D.Sandag

14. Irkutsk

B.Dagva

15. Kyzyl Trade Representat ive 16. Singapore

14. Cairo 15. London

Ê.Sairaan Ts.Sukhbaatar

G.Sukhee

121 Meyer Road, The Makena #06-01, Singapore 437932

Tel: 0065-3480745 Fax:0065-3481753 E-mail: sukhee@singnet.com.sg

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Annex 7 ADDRESSES OF THE FOREIGN EMBASSIES TO MONGOLIA

Annex 8 MONGOLIA’S MEMBERSHIP IN INTERNATIONAL INTERGOVERMENTAL ORGANIZATIONS 1. Joint Institute for nuclear Research in Dubna 2. The United Nations Organization (UN) 3. Economic and Social Council for Asia and Pacific (ESCAP) 4. UN Educational, Scientific and Cultural Organization (UNESCO) 5. World Health Organization (WTO) 6. World Meteorological Organization (WMO) 7. UN Development Program 8. UN Children’s Emergency FUND (UNICEF) 9. Universal Postal Union 10. Inter-parliamentary Union 11. UN Conference on Trade and Development (UNCTAD) 12. International Telecommunications Union (ITU) 13. UN Industrial Development Organization (UNIDO) 14. International Labor Organization (ILO) 15. UN Conference on Disarmament 16. UN Environment Program (UNEP) 17. Food and Agriculture Organization (FAO) 18. International Atomic Energy Agency (IAEA) 19. UN Fund for Population Activities (UNFPA) 20. World Intellectual Property Organization (WIPO) 21. Afro –Asian Legal Consultative Committee 22. International Union for conservation of Nature and natural resources 23. International Civil Aviation Organization (ICAO) 24. Group of senenty-seven 25. Office International Des Epizooties 26. World Tourism Organization 27. International Monetary Fund (IMF) 28. International Bank for Reconstruction and Development (World Bank) 1956 1961 1962 1962 1962 1963 1963 1963 1963 1963 1964 1964 1967 1968 1969 1973 1973 1973 1978 1979 1980 1988 1989 1989 1989 1990 1991 1991

¹

Dip;omatic representation Bulgaria China Cuba Czech France Germany Hungary India

Head of the Diplomatic Representation Mr. Georgi Svechnikov Mr. Huang Jia Kui Mr. Pedro Arnaldo Moran Mr. Jaroslav Kamas Mr. Jacques-Olivier MANENT Mr Jurgen Ellias Mr.Bela Torocsik Mr. Amar Sanathu

Address

Phone, fax & E-mail

1. 2. 3. 4. 5. 6. 7. 8.

Olympic street 8, Ulaanbaatar Zaluuchuudiin Urgun Chuluu 5, Ulaanbaatar Negdsen Undestnii Street 5, Ulaanbaatar Olympic street 14, Ulaanbaatar Diplomatic building 95, apt 48, Ulaanbaatar Negdsen Undestnii street 7, Ulaanbaatar Enh Taivnii street 1, Ulaanbaatar Zaluuchuudiin urgun chuluu 10, Ulaanbaatar Olympic Street 8, Ulaanbaatar Olympic Street 10, Ulaanbaatar Ikh toiruu 59, Ulaanbaatar Enh Taivnii street A-6, Ulaanbaatar Enh Taivnii street 5, Ulaanbaatar Enh Taivnii street 30, Ulaanbaatar Ikh toiruu 59/1, Ulaanbaatar Diplomatic building 95, gate 2 apt 11, Ulaanbaatar Enh Taivnii street 47, Ulaanbaatar

9. 10. 11. 12. 13. 14. 15. 16. 17.

Japan South Korea Lao P.D.R. Russia Turkey Britain USA Kazakhstan Vietnam

Mr. Marohito Hanada Mr. Choi Young Chue Mr. Vanheuang VONGVICHIT Mr. Derkovskii O.M. Mr. Mehmet Nuri YILDIRIM Mr. Kay Coombs Mr LA PORTA Alphonse Francis Mr K.Isagaliev Mr. Nguyen The Dac

Tel: 329721, Telex 220 BGTIS Posolstvo.bg@magicnet.mn Tel. 320955, 323940, Fax 311943 Tel. 327709, 327708, Telex 79228 Tel: 321886, 326661 Fax. 323791, Czechemb@magicnet.mn Tel.312118, 99114424, Fax.312118 Ausrance@magicnet.mn Tel. 323325, 323915, Fax. 323905 Tel. 323973, 320972, Fax. 311793, Hunamb@magicnet.mn Tel. 358122, 358333, Fax. 358171 Indembmongolia@magicnet. mn Tel. 320777, Fax. 313332 Eojmongol@magicnet.mn Tel. 321548, 310153, Fax. 311157 Tel. 326440, 329898, Telex 79251 Tel. 326836, 327071, Fax. 327018, Tel. 313992 Turkemb@magicnet.mn Tel. 358133, 358238, Fax. 358036, Britemb@magicnet.mn Tel.329095, 329606 Fax. 320776 Aeub@magicnet.mn Tel: 312240 Tel.358923, 358917 Telex: 249

Honorary consuls
19 20 21 Canada

Christopher Johnstone Lkhagvasuren Lkhagvaa Tumurdash Bayarkhuu

Thailand Malaysia

Diplomatic building 95, gate 5 apt 56, Ulaanbaatar Apt. 17, A-4 house, I40000-T, Chihgeltei district, Ulaanbaatar

Tel: 328285 Fax: 328289 Tel: 311333 Fax: 320138 Tel: 322982 Fax:

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29. Asian Development Bank 1991 30. International Police Organization (Interpole) 1991 31. Non-Aligned Movement 1991 32. International Statistics Institute 1991 33. World Customs Cooperation Council 1992 34. Statistical Institute for Asia and the Pacific 1992 35. Asian Productivity Organization 1992 36. International Center for Cancer 1992 37. Asia –Pacific Telecommunity 1992 38. International Civil Defense Organization 1992 39. International Fund for Agricultural Development (IFAD) 1994 40. International Vaccine Institute 1994 41. Regional Center for Space Science & Technology Education for Asia and the Pacific 1995 42. International Tribunal for the Law of the Sea 1996 43. INCOSAA 1996 44. AOSAI 1996 45. World Trade Organization (WTO) 1997 46. International Bureau of Exposition 1997 47. International Research Institute of Nomadic Civilization 1998 48. Asian Regional Center for Natural disaster reduction 1998

Annex 9 LIST OF THE MULTILATERAL AGREEMENTS TO WHICH MONGOLIA IS A PARTY Name of the Agreements In order of time:

1.Geneva Convention (I) for the Amelioration of the Condition of the Wounded and Sick in Armed Forces in the Field 2.Geneva Convention (II) for the Amelioration of the Condition of Wounded, Sick and Shipwrecked Members of Armed Forces at Sea 3.Geneva Convention (III) Relative to the Treatment of Prisoners of War 4.Geneva Convention (IV) Relative to the Protection of Civilian Persons in Time of War 5.Charter of the United Nations, Statute of the International Court of Justice (annexed to the Charter of the United Nations) 6.Constitution of the United Nations Educational, Scientific and Cultural Organization 7.Constitution of the World Health Organization 8.Convention on Privileges and Immunities of the United Nations 9.Convention for the Unification of Certain Rules Relating to International Carriage by Air 10.Constitution of the World Meteorological Organization 11.Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space and Under Water 12.Convention Against Discrimination in Education 13.Convention for the Protection of Cultural Property in the Event of Armed Conflict 14.Amendments to Articles 23, 27 and 61 of the Charter of the United Nations 15.Basic Co-operation Agreement on the Country Program (concerning UNICEF activities in Mongolia) 16.Convention on the Political Rights of Women 17.Convention on Transit Trade of Land-Locked States

1949 1958

1949 1958 1949 1958 1949 1958

1945 1961 1945 1962 1946 1962 1946 1962 1929 1962 1947 1963 1963 1963 1960 1964 1954 1964 1963 1965 1965 1965 1953 1965 1965 1966

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18.Vienna Convention on Diplomatic Relations 19.Convention on the Prevention and Punishment of the Crime of Genocide 20.Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, Including the Moon and other Celestial Bodies 21.Constitution of the International Labor Organizations 22.Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or Other Gases, and of Bacteriological Methods of Warfare 23.Supplementary Convention on the Abolition of Slavery, the Slave Trade, and Institutions and Practices Similar to Slavery 24.Convention to Suppress the Slave Trade and Slavery ; and Protocol amending this Convention 1926 25.Amendment to Article 109 of the Charter of the United Nations 26.Convention concerning Minimum Age (Industry) (Revised) 27.Convention (No.87) concerning Freedom of Association and Protection of the Right to Organize 28.Convention (No.98) concerning the Application of the Principles of the Right to Organize and to Bargain Collectively 29.Convention (No.100) concerning Equal Remuneration for Men and Women Workers for Work of Equal Value 30.Convention concerning Maternity Protection 31.Convention (No. 103) concerning Maternity Protection (Revised 1952) 32.Convention (No.111) concerning Discrimination in Respect of Employment and Occupation 33.International Convention on the Elimination of all Forms of Racial Discrimination 34.Treaty on the Non-Proliferation of Nuclear Weapons 35.Convention on Non-Applicability of Statutory Limitations to War Crimes and Crimes against Humanity 36.Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space

1961 1967 1948 1967

1967 1967 1919 1968

1925 1968

1956 1968 1953 1968 1965 1969 1937 1969 1948 1969

1949 1969

1951 1969 1951 1969 1952 1969 1958 1969 1966 1969 1968 1969 1968 1969

1963 1969

37.Convention on Privileges and Immunities of the Specialized Agencies 1947 38.Amendment to Article 7 of the Constitution of the World Health Organization 39.Amendments to Articles 24, 25 of the Constitution of the World Health Organization 40.Treaty on the Prohibition of the Emplacement of Nuclear Weapons and other Weapons of Mass Destruction on the Seabed and the Ocean Floor and in the Subsoil thereof 41.Convention for the Suppression of Unlawful Seizure of Aircraft 42. Agreement between the Government of Mongolia and the International Atomic Energy Agency for the Application of Safeguards in connection with the Treaty on the Non-Proliferation of Nuclear Weapons 43.Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction 44.Montreal Convention against Unlawful Actions against Security of Civil Aviation 45.Convention on International Liability for Damage Caused by Space Objects 46.Constitution of the Universal Postal Union 47.Statute of the International Atomic Energy Agency 48.Amendment to Article 61 of the Charter of the United Nations 49.Constitution of the United Nations Food and Agricultural Organization 50.International Covenant on Civil and Political Rights 51.International Covenant on Economic, Social and Cultural Rights 52.International Convention on the Suppression and Punishment of the Crime of Apartheid 53.Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons, including Diplomatic Agents 54.Vienna Convention on the Representation of States in their Relations with International Organizations of Universal Character

1970/1974 1965 1971 1967 1971

1971 1971 1970 1971

1972 1972

1972 1972 1971 1972 1972 1972 1874 1973 1956 1973 1971 1973 1973 1974 1966 1974 1966 1974 1973 1975

1973 1975

1975 1976

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55.Convention (No. 122) concerning Employment Policy 56.Convention (No. 123) concerning the Minimum Age for Admission to Employment Underground in Mines 57.Convention on the High Seas 58.Amendments to Articles 34, 55 of the Constitution of the World Health Organization 59.Convention on the Prohibition of Military or any Other Hostile Use of Environmental Modification Techniques 60.Convention establishing the World Intellectual Property Organization 61.Amendments to Articles 24, 25 of the Constitution of the World Health Organization 62.Convention concerning the Minimum Age for Admission to Employment Underground in Mines 63.Convention on the Elimination of All Forms of Discrimination against Women 64.Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons which may be deemed to be Excessively Injurious or to have Indiscriminate Effects (and Protocols) 65.Constitution of the United Nations Industrial Development Organization 66.Paris Convention for the Protection of Industrial Property 67.Madrid Agreement concerning the International Registration of Marks 68.Convention concerning the Use of Broadcasting for the Cause of Peace 69.Convention on Registration of Objects Launched into Outer Space 70.International Telecommunication Convention 71.Convention on the Physical Protection of Nuclear Material 72.Chicago Convention on International Civil Aviation 73.International Convention against Apartheid in Sports 74.Vienna Convention on the Law of Treaties 75.Constitution of the International Civil Aviation Organization 76.Vienna Convention on Consular Relations 77.Convention (No. 135) concerning Protection and

1964 1976 1965 1976 1958 1976 1973 1977

1976 1978 1967 1979 1976 1981 1967 1981 1979 1981

1980 1982 1979 1985 1883 1985 1891 1985 1936 1985 1974 1985 1865 1986 1979 1944 1985 1969 1986 1986 1987 1988

1944 1989 1963 1989

Facilities to be Afforded to Workers’ Representatives in the Undertaking 78.Convention on the Rights of the Child 79.Convention on Offences and Certain Other Acts Committed on Board Aircraft 80.Articles of Agreement of the International Monetary Fund 81.Articles of Agreement of the International Bank for Reconstruction and Development 82.Constitution of the Asia Pacific Telecommunity 83.Convention on Consent to Marriage, Minimum Age for Marriage and Registration of Marriages 84.Optional Protocol to the International Covenant on Civil and Political Rights 85.Single Convention on Narcotic Drugs 86.Patent Cooperation Treaty 87.Single Convention on Narcotics Drugs, 1961, as amended by the Protocol of 25 March 1972 amending the Single Convention on Narcotic 88.International Convention against the Taking of Hostages 89.Convention Establishing a Customs Co-operation Council 90.Amendments to Articles 24 and 25 of the Constitution of the World Health Organization 91.Tripartite Consultation (International Labour Standards) Convention, 1976 92.International Convention on the Harmonized Commodity Description and Coding System 93.Convention on Biological Diversity 94.United Nations Framework Convention on Climate Change 95.Agreement Establishing International Agricultural Fund 96.Agreement relating to the Implementation of Part XI of the United Nations Convention of the Sea of 1982 97.Convention on Recognition and Enforcement of Foreign Arbitral Awards 98.Protocol Additional to the Geneva Conventions of 12 August 1949, and relating to the protection of victims of international armed conflict (Protocol I and Protocol II) 99.Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons

1971 1989 1989 1990 1963 1990 1945 1991 1946 1991 1976 1991 1962 1991 1966 1991 1961 1991 1970 1991

1972 1991 1979 1992 1953 1992 1986 1993 1976 1993 1988 1993 1992 1993 1992 1993 1976 1994 1994 1994 1958 1994

1977 1995

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and on their Destruction 100.Convention on International Trade in Endangered Species of Wild Fauna and Flora 101.Convention on Occupational Safety and Health, Recommendation (No.164) concerning Occupational Safety and Health and the Working Environment 102.Convention (No.159 ) concerning Vocational Rehabilitation and Employment (Disabled Persons), Recommendation (No.168) concerning Vocational Rehabilitation and Employment (Disabled Persons) 103.Convention on the International Maritime Organization (its Protocols) 104.Convention on Maritime Transportation 105.United Nations Convention on the Law of the Sea 106.Vienna Convention for the Protection of the Ozone Layer 107.Montreal Protocol on Substances that Deplete the Ozone Layer 108.Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer 109.Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer 110.United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa 111.Convention on the Settlement of Investment Disputes between States and Nationals of other States 112.Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal 113.Comprehensive Nuclear-Test- Ban Treaty 114.United Nations Convention on Contracts for the International Sale of Goods 115.Convention Establishing the Multilateral Investment Guarantee Agency 116.Marrakesh Agreement on the Establishment of World Trade Organization 117.Convention on Road Traffic 118.Convention on Road Signs and Signals 119.Bern Convention for the Protection of Literary and Artistic Works 120.Convention on Wetlands of International Importance Especially as Waterfowl Habitat

1993 1995 1973 1995

1981 1996

1983 1996 1948 1996 1958 1996 1982 1996 1985 1996 1987 1996 1990 1996 1992 1996

1994 1996 1965 1996 1989 1997 1996 1997 1980 1997 1985 1997 1994 1997 1968 1997 1968 1997 1886 1997 1971 1997

121.Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoption 1993 122.Additional Protocol to the Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons which may be Deemed to be Exclusively injurious or to have Indiscriminate Effects 1993 123.Protocol on the Authentic Quadrilingual Text of the Convention on International Civil Aviation (1944) 1977 124.Intergovernmental Convention concerning Electrical Communication Supply in Disaster Relief. 1998 125.Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade 1998 126.Convention on the Marking of Plastic Explosives for the Purpose of Detection 1991 127.Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, Supplementary to the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation 1988 128.Energy Charter Treaty, Protocol on Energy Efficiency and Related Environmental Aspects, Trade related Amendments to the Energy Charter Treaty 1994/ 1998 129.Agreement on exemption of normative acts, patterns, measurement instruments from export and import customs duties and taxes, including licensing, for the purpose of standardization. 1995 130.Protocol relating to an Amendment to the Convention on International Civil Aviation (Article 83 bis) 1980 131.Protocol relating to an Amendment to the Convention on International Civil Aviation (Article 3 bis) 1984 132.Protocol relating to an Amendment to the Convention on International Civil Aviation (Article 50(a) 1990 133.Convention on Civil Procedure 1954

1998

1998 1998 1998

1998 1999

1999

1999

1999 1999 1999 1999 1999

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Annex 10 COUNTRIES WITH WHICH MONGOLIA MAINTAINS DIPLOMATIC RELATIONS 1. Russian Federation 2. Democratic People’s Republic of Korea 3. Albania 4. People’s Republic of China 5. Poland 6. Bulgaria 7. Hungary 8. Romania 9. Vietnam 10. India 11. Myanmar 12. Yugoslavia 13. Indonesia 14. Guinea 15. Cambodia 16. Cuba 17. Nepal 18. Mali 19. Algeria 20. Sri Lanka 21. Afghanistan 22. Iraq 23. Pakistan 24. Laos 25. United Kingdom 26. Egypt 27. Austria 28. Finland 29. Switzerland 30. Sweden 31. France 32. Ghana 33. Republic of Congo 34. Tanzania 35. Ethiopia 36. Greece 1921.11.05 1948.10.15 1949.05.24 1949.10.16 1950.04.14 1950.04.22 1950.04.28 1950.04.29 1954.11.17 1955.12.24 1956.09.26 1956.11.20 1956.12.22 1960.04.22 1960.11.30 1960.12.07 1961.01.05 1961.01.25 1961.06.25 1962.02.01 1962.02.01 1962.02.05 1962.07.06 1962.09.12 1963.01.23 1963.04.02 1963.07.01 1963.07.15 1964.05.22 1964.06.30 1965.04.27 1965.12.07 1966.12.31 1967.01.17 1967.01.24 1967.03.03

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37. Mauritania 38. Syria 39. Norway 40. Denmark 41. Turkey 42. Singapore 43. Central Africa 44. Italy 45. Sudan 46. Morocco 47. Yemen 48. Somali 49. Iran “ ‘ 50. Chile 51. Belgium 52. Argentina 53. Malaysia 54. Nigeria 55. Japan 56. The Netherlands 57. Bangladesh 58. Australia 59. Philippines 60. Canada 61. Cyprus 62. Federal Republic of Germany 63. Thailand 64. Iceland 65. Portugal 66. Zaire 67. New Zealand 68. Kuwait 69. Mexico 70. Mozambique 71. Guinea-Bissau 72. Sao Tome and Principe 73. Cape Verde 74. Angola 75. Fiji 76. Liberia 77. Libyan Arab Jamahiriya

1967.06.30 1967.07.31 1968.01.11 1968.08.05 1969.06.24 1970.06.11 1970.06.18 1970.06.29 1970.07.07 1970.07.14 1970.08.28 1971.02.28 1971.05.20 1971.06.01 1971.07.08 1971.09.07 1971.09.08 1971.09.21 1972.02.24 1972.03.06 1972.06.28 1972.09.15 1973.10.11 1973.11.30 1973.12.19 1974.01.31 1974.03.05 1974.06.04 1974.07.26 1975.02.04 1975.04.08 1975.06.17 1975.09.25 1975.09.27 1975.10.14 1975.10.22 1975.11.19 1976.02.10 1976.03.15 1976.04.23 1976.06.16

78. Papua New Guinea 79. Luxembourg 80. Tunis 81. Benin 82. Costa Rica 83. Spain 84.Zambia 85. Palestine 86. Madagascar 87. Malta 88. Nicaragua 89. Guyana 90. Grenada 91. Jordan 92. Seychelles 93. Ecuador 94. Zimbabwe 95. Lesotho 96. Burkina Faso 97. Maldives 98. Senegal 99. Cote d’Ivoire 100. United States of America 101. Brazil 102. Colombia 103. Bolivia 104. Republic of Korea 105. Namibia 106. Venezuela 107. Israel 108. Latvia 109. Estonia 110. Litva 111. Ukraine 112. Kazakhstan 113. Belarus 114. Uzbekstan 115. Moldova 116. Armenia 117. Holy See 118. Azerbaijan

1976.06.16 1976.07.11 1977.02.15 1977.04.02 1977.06.06 1977.07.04 1978.10.02 1979.04.25 1979.05.11 1979.08.08 1979.10.13 1979.12.15 1980.07.25 1981.05.21 1981.08.21 1982.10.30 1984.08.30 1985.07.02 1985.10.25 1985.11.06 1985.12.12 1986.07.06 1987.01.27 1987.06.19 1988.08.10 1989.03.01 1990.03.26 1990.10.30 1990.12.14 1991.10.02 1991.10.15 1991.11.20 1991.12.11 1992.01.21 1992.01.22 1992.01.24 1992.01.25 1992.01.30 1992.02.21 1992.04.04 1992.04.16

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119. Kyrghyzstan 120. Turkmenistan 121. Tajikistan 122. Oman 123. Goergia 124. Brunei Darussalam 125. Slovakia 126. Czech Republic 127. Slovenia 128. Bosnia and Herzegovina 129. Croatia 130. South Africa 131. Macedonian 132. United Arab Emirates 133. Peru 134. Uruguay 135. Qatar 136. Lebanon 137. Liechtenstein 138. Bahrain 139. Ireland 140. El Salvador

1992.04.22 1992.04.23 1992.04.24 1992.04.27 1992.05.12 1992.05.18 1993.01.01 1993.01.01 1993.02.18 1993.02.24 1993.03.10 1994.05.25 1995.06.27 1996.04.01 1997.05.30 1997.10.07 1998.01.21 1998.02.05 1998.03.18 1998.05.25 1998.12.22 1999.07.14

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