May 15, 1998 No. 125

CHAN FIRST CANADIAN MINISTER TO VISIT MONGOLIA

Secretary of State (Asia-Pacific) Raymond Chan announced today that he will visit Mongolia from May 18 to 22. Mr. Chan will be the first Canadian minister to make an official visit to Mongolia; the visit marks the 25th anniversary of diplomatic relations between Canada and Mongolia. Mr. Chan will be accompanied by a business delegation representing a range of sectors including mining, agriculture, transportation, telecommunications and energy.

"Canada recognizes Mongolia's successful efforts as a member of the Asia-Pacific community to build an open economy with democratic institutions," said Mr. Chan. "This visit is an opportunity, on the 25th anniversary of Canada-Mongolia relations, to explore new areas of co-operation and cultivate closer economic relations between our countries. Increasingly, Canadian firms are recognizing that their expertise is uniquely suited to the growing commercial needs of this developing market."

Mr. Chan is scheduled to meet with Prime Minister Tsakhiagiin Elbegdorj, as well as government leaders, including the Chairman of the State Great Hural (Parliament), Dr. Gonchigdorj, the Minister for Agriculture and Industry, and the Minister for Infrastructure Development. Mr. Chan is expected to discuss a range of bilateral issues with government leaders and hold meetings on mining and mineral resources, taxation issues and protection for foreign investment. Canada is currently Mongolia's fifth-largest international investor.

Mr. Chan will meet with the Chairman of the Mongol-Canadian Parliamentary Group, Mr. Enkhtuvshin, to discuss ways to promote co-operation between Canadian and Mongolian parliamentarians. In addition to activities to strengthen cultural and academic links, Mr. Chan will profile Canada's development assistance for Mongolia by visiting Canadian-funded projects in the region.

Mongolia opened its first mission in Canada earlier this year.

- 30 -Backgrounders are attached.

For further information, media representatives may contact:

Hilary Humphrey

Office of the Secretary of State (Asia-Pacific)

(613) 995-1852

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca

Backgrounder

VISIT TO MONGOLIA OF THE HONOURABLE RAYMOND CHAN

SECRETARY OF STATE (ASIA-PACIFIC)

MAY 18 TO 22, 1998

BUSINESS DELEGATION

Agriteam Canada, Calgary, Ontario

CPCS Transcom Ltd., Ottawa, Ontario

Dorey International, Montreal, Quebec

Dunn Analytical Laboratories Inc., Saskatoon, Saskatchewan

Java Gold Corporation/Golden Tiger Corporation, Toronto, Ontario

MacLeod Dixon, Barristers and Solicitors, Toronto, Ontario

RACAL Canada Inc., Vancouver, British Columbia

Quincunx Gold Exploration Ltd., Waterdown, Ontario

CANADIAN COMPANIES BASED IN MONGOLIA

Cascadia Minerals

Can-Asia Drilling Services Ltd.

Nostrad Telecommunications

World Wide Minerals

Armada Gold Ltd.

Backgrounder

CANADA-MONGOLIA RELATIONS

November 30, 1998, will mark the 25th anniversary of the establishment of diplomatic relations between Canada and Mongolia. A series of cultural and educational events and exchanges and high-level visits have been planned by the Mongolian and Canadian governments to mark the occasion. The visit of Secretary of State (Asia-Pacific) Raymond Chan to Mongolia in May and the proposed visit of Minister of External Relations Amarjargal to Canada in September commemorate this special anniversary.

PROFILE

Canada first recognized Mongolia in 1943 and established diplomatic relations in November 1973. Canada's relations with Mongolia have broadened since Mongolia's move in 1990 toward democracy and a market-oriented economy. Canada values Mongolia's status as a newly democratic state whose foreign policy is based on integration with the Asia-Pacific region. A democratic coalition government was elected in the summer of 1996, while in April 1997 a new Prime Minister, Tsakhiagiin Elbegdorj, assumed office following a cabinet shuffle. The ruling democratic coalition has committed itself to economic liberalization, including investment and regulatory revisions, which will facilitate Canadian trade and investment in Mongolia. Mongolia has proposed signing a Double Taxation Agreement and a Foreign Investment Protection Agreement with Canada on which discussions are ongoing.

With bilateral trade estimated at a modest $1 million, Mongolia has not been a high economic priority for Canada. However, relations with Mongolia are expanding, led by the activities of Canadian businesses in Mongolia -- primarily mining interests. Several Canadian companies have been active in the Mongolian mining sector for a number of years. However, with the liberalization of the Mongolian economy, Canadian agriculture, energy, transportation and telecommunications companies will find significant commercial opportunities in Mongolia. Canada is currently Mongolia's fifth-largest investor.

A Canada-Mongolia Business Association comprising Canadian and Mongolian firms was established in June 1997 to promote business development and enhanced bilateral trade.

ENHANCED BILATERAL RELATIONS

NEW CONSULATES

The Canadian Embassy in Beijing is responsible for Canadian interests in Mongolia, while the Mongolian Embassy in Washington is responsible for Mongolian interests in Canada.

During the visit of Chairman Gonchigdorj to Canada in March 1998, the first Mongolian Consulate General was officially opened in Toronto.

In December 1997, Canada appointed Christopher Johnstone as Honorary Consul to Mongolia. The Honorary Consulate in Ulaanbaatar was officially opened by the Canadian Ambassador to China, Howard Balloch, in February 1998.

HIGH-LEVEL VISITS

A series of bilateral visits and exchanges have broadened Canada-Mongolia relations in recent years. The first visit by a Canadian parliamentarian to Mongolia was made by the Speaker of the Senate, Gildas Molgat, in 1997 (March 31 to April 4). During his visit, Speaker Molgat extended an invitation to Chairman Gonchigdorj, who visited Canada one year later in March 1998.

There are also increasing numbers of Canadian tourists, teachers and development workers in Mongolia.

DEVELOPMENT ASSISTANCE

In March 1997, Canada designated Mongolia as eligible for official development assistance. To date, projects worth close to $184 000 have been supported, ranging from sustainable waste management, voter education to schooling for working children.