Report Visit of the Honourable Peter Milliken, M.P. Speaker of the House of Commons, and a Parliamentary Delegation, to October 9-15, 2006

The Honourable Peter Milliken, M.P. Speaker of the House of Commons

At the invitation of Chairman of the State Great Hural, Tsendiin Nyamdorj, the Honourable Peter Milliken, M.P. and Speaker of the House of Commons, led a parliamentary delegation on an official visit to Mongolia from October 9 to 15, 2006. Report

The official delegation was composed of the following persons: The Honourable Peter Milliken, M.P. Speaker of the House of Commons; Mr. Jim Abbott, M.P.; The Honourable Larry Bagnell, P.C., M.P.; Patrick Kennedy, Chief of Staff of the Speaker; Mr. Tõnu Onu, Secretary to the delegation. Context In 2006, Mongolia is celebrating 800 years of statehood, since it was in 1206 that Genghis Khan united the Mongolian tribes and founded a unified Mongolian state. Canada and Mongolia are similar in terms of climate, geography and vast mineral resources. In 1991, Mongolia became the only formerly communist country in Asia to make a peaceful transition to a pluralistic democracy. While Canada has one major power as a neighbour, Mongolia finds itself surrounded by two major powers, and China. There are currently 25 Canadian mining companies operating in Mongolia making Canada the largest investor in the resources sector in Mongolia and the second largest investor in Mongolia as a whole after China. While Mongolia has an Embassy in Ottawa and a number of honorary consuls in Canadian cities, Canada does not have an Embassy in , the capital of Mongolia. Given the amount of Canadian investment, particularly in the resource sector, there is a great desire on the part of Mongolia and of Canadian business interests to have Canada open an embassy in Mongolia. At the present time, the Canadian Embassy in Beijing is responsible for Canada’s relations with Mongolia. The former Speaker of the Senate, the Honourable Gildas Molgat, was the first Canadian parliamentarian to visit Mongolia in 1997, and former Speaker Hays of the Senate led a delegation to Mongolia in 2003. Objectives: To promote and develop parliamentary and diplomatic relations between Canada and Mongolia and

To discuss political and economic issues of common interest to Canada and Mongolia.

Meetings En route to Mongolia, the delegation passed through Beijing, China and had the opportunity to meet with His Excellency Xu Jialu, Vice-Chairman of the Standing Committee of the National People’s Congress of China. In Mongolia, the delegation met with: His Excellency Tsendiin Nyamdorj, Chairman of the State Great Hural of Mongolia;

His Excellency Nambaryn Enkhbayar, ;

The Mongolia-Canada Parliamentary Group;

Ms. Sanjaasuren Oyun, Member of the State Great Hural and Head of the Civil Will-Republic Party;

His Excellency Mr. Miyeegombyn Enkhbold, Prime Minister of Mongolia;

Members of the North American Mongolia Business Council;

Members of the Democratic Party and other Opposition members of the State Great Hural;

Members of the Canada-Mongolia Friendship Society.

In addition to the meetings, the delegation was invited to attend a session of the State Great Hural where they were recognized by the Chairman. The delegation visited the Mongolian National University where Speaker Milliken gave an address on Canadian parliamentary democracy. At the University, the delegation also participated in Visual Voices: A Canada-Mongolia Film Forum on Tradition, Culture and Modernity. The Mongolian hosts also organized a number of visits to cultural and other sites which included a kindergarten supported by the Canada Fund, the Winter Palace Museum, the Gandan Tegchinlen Monastery and the Gobi Cashmere Company. Finally, Mr. Gavaa Batkhuu, Vice-Chair of the Canada Mongolia Parliamentary Group hosted the delegation on a visit to his horse ranch in the province of Bulgan. His Excellency Xu Jialu, Vice-Chairman of the Standing Committee of the National People’s Congress of China Since the delegation’s travel to Mongolia required a change of airplanes in Beijing, Vice-Chairman Xu invited the Speaker and the delegation to a meeting and dinner. The Vice-Chairman welcomed the delegation to the Great Hall of the People and underlined the importance of parliamentary exchanges in international relations. More specifically, he noted that 2006 marked the 36th anniversary of diplomatic relations between China and Canada. He emphasized that the visit would improve understanding between the two countries. He added that China’s strategy was to pursue exchanges with all countries, particularly those in the West since, in his opinion, the latter had less understanding of China than China did of them. Speaker Milliken thanked the Vice-Chairman for the opportunity to discuss parliamentary relations and took the opportunity to invite the Chairman of the National People’s Congress to visit Canada. His Excellency Tsendiin Nyamdorj, Chairman of the State Great Hural of Mongolia The Chairman of the State Great Hural welcomed Speaker Milliken and the delegation to Mongolia and emphasized the importance of exchanges between Canada and Mongolia and their two parliaments. He noted that Canada was the second largest investor in Mongolia and expressed his desire to see further parliamentary co-operation between the two countries. Speaker Milliken thanked the Chairman for the invitation to visit and extended an invitation to the Chairman to visit Canada. The Speaker outlined the purpose and content of the Parliamentary Officers Study Program and encouraged the Chairman to consider delegating officials from Mongolia’s Parliament to apply to the Program. The Speaker then raised the issue of the concern among investors caused by the Windfall Tax Law and the Minerals Law passed earlier in the year in Mongolia. He expressed understanding of Mongolia’s situation, but also emphasized the need to guarantee a stable and certain environment for investors. His Excellency Nambaryn Enkhbayar, President of Mongolia President Enkhbayar welcomed the delegation and spoke of the importance of the visit and of relations with Canada. He stated that Mongolia welcomes foreign investment and in reference to the Minerals Law, emphasized the need for balance between the interests of the population and those of mining companies. In reference to the international political situation in Asia, more specifically North Korea’s nuclear tests, the President explained that Mongolia has declared itself a nuclear free zone and aims to be a responsible partner in international affairs. Speaker Milliken congratulated the President on Mongolia’s 800th anniversary, noting how impressive this was for Canada, given its much shorter history. He expressed Canada’s interest in improving relations with Mongolia and the intention of following Mongolia’s development, given the similarities between the two countries. The Speaker explained Canada’s perspectives on the laws affecting mining companies and the need for clear rules respecting investment, particularly considering Mongolia’s great resource potential. Meeting with the Mongolia-Canada Parliamentary Group Mr. Avdai, Chairman of the Mongolia-Canada Parliamentary Group welcomed the delegation. He explained that the group had 24 members and was active in organizing meetings with Canadian companies. With respect to specific issues, the Group wished to see the process for obtaining visas to Canada simplified and to have a Canadian Embassy established in Ulaanbaatar. The Group also explained that Mongolia would like to obtain assistance from the Canadian International Development Agency to train agricultural specialists and to receive a variety of Canadian grain that grows in dry conditions, since the climate of Mongolia is becoming drier. The Group also expressed an interest in Canada’s Parliament and how it works. Speaker Milliken conveyed greetings to the Group from the Honourable Joseph Day, Chairman of the Canada-Mongolia Parliamentary Friendship Group and reiterated the invitation to the Chairman of the State Great Hural to visit Canada. The delegation explained that with respect to the visa process, the Canadian Embassy in Beijing has facilitated the process and made information available in Mongolian. The delegation also explained Canada’s experience with laws applicable to mining companies and the need for certainty and clarity in such laws. Meeting with Ms. Sanjaasuren Oyun, Member of the State Great Hural and Head of the Civil Will-Republic Party Ms. Oyun is the founder of the Zorig Foundation, a not-for-profit organization dedicated to the advancement of democracy. She created the foundation after the assassination of her brother Zorig who was considered a likely candidate for the position of Prime Minister. Ms. Oyun explained that her party promotes transparency and good government, and was the first to introduce quotas for women candidates and to disclose the assets of its members. She has worked on anti-corruption legislation and legislation requiring political parties to disclose sources of funding and to limit spending during elections. At present there are only five female members of parliament, but at the next election, 50 % of candidates of parties must be women. Ms. Oyun expressed her happiness with increased relations between Canada and Mongolia and with Canadian investment in Mongolia. She was of the opinion that the recent mining legislation was motivated more by political than economic reasons. Another area of concern expressed by Ms. Oyun was that of child poverty in Mongolia and in that regard she mentioned that the Canada Fund was doing useful and effective work since funds reached the population directly. The delegation raised the issue of Mongolia signing the Ottawa Convention on Land Mines to which the Ambassador Gotov answered that Mongolia is prepared to join on a step-by-step basis. Meeting with His Excellency Mr. Miyeegombyn Enkhbold, Prime Minister of Mongolia Prime Minister Enkhbold welcomed the delegation and emphasized the good relations between Canada and Mongolia. He went on to express his satisfaction with Canadian investment in Mongolia and hoped that parliamentary exchanges would lead to cooperation in other fields as well. Speaker Milliken agreed with the Prime Minister’s views on the good relations and prospects for cooperation between Canada and Mongolia. He cited the Parliamentary Officers Study Program as an example of training assistance that Canada could provide to Mongolia. The Speaker added that a sound business and investment climate can contribute to development in areas such as tourism. The Speaker also encouraged Mongolia to sign the Ottawa Convention on Land Mines. Prime Minister Enkhbold indicated that Mongolia wishes to encourage foreign investment and also relations between Canada and Mongolian provinces and not only the capital Ulaanbaatar, as is the case at present. He also expressed support for more parliamentary exchanges and suggested that government ministers accompany the Chairman of the State Great Hural if he were to visit Canada. He also expressed support for specific projects such as the one described by Mr. Jim Abbott, where a member of the Mongolian Parliament came to British Columbia to learn about how to fight and control forest fires. Visit to Kindergarten in Ulaanbaatar The delegation visited a kindergarten in Ulaanbaatar that has received support funds from the Canada Fund. There are 37 kindergartens in the Ulaanbaatar area that are all filled well beyond capacity. The children spend the whole week at the kindergarten including nights and go home only on the weekends. Furthermore, there is little if any money available for capital maintenance or repairs of the kindergarten buildings. The kindergarten that the delegation visited had been renovated with financial support received from the Canada Fund. The children put on a performance for the delegation and members of the delegation distributed gifts to the children at the end of the visit. Speaker Milliken’s Address at Mongolian National University At the Mongolian National University, Speaker Milliken delivered an address to students and faculty about Canadian parliamentary democracy. After his address, the Speaker answered questions from the students. Visit to Gobi Cashmere Company The delegation had an opportunity to visit the Gobi Cashmere Company and tour the factory where cashmere products are made. Mongolia is the second biggest producer of cashmere after China. Cashmere is the third largest export product of Mongolia, amounting to nearly 80 million dollars U.S. in 2004. Dinner meeting with North American Mongolia Business Council The meeting provided an opportunity for members of the delegation to hear the views of North American executives of mining companies operating in Mongolia, especially on the issue of the recently adopted Windfall Tax Law and the Minerals Law. On the question of controversy and criticism of foreign mining companies operating in Mongolia, the executives were of the opinion that opposition to companies was centred in Ulaanbaatar and not in the regions where the mining companies actually operated. Participation in “Visual Voices: A Canada-Mongolia Film Forum on Tradition, Culture and Modernity” Speaker Milliken made opening remarks at the symposium where Mr. Peter Irniq, a former Commissioner of Nunavut, made the keynote address on the topic of Inuit culture and traditions and how the Inuit way of life has changed in the last 50 years. The delegates met with symposium participants after Mr. Irniq’s address. Meeting with Democratic Party members and other Opposition members of Parliament The Chairman of the Democratic Party, Mr. Tsakhia Elbegdorj, and a former Primer Minister of Mongolia welcomed the delegation and introduced the other members of his Party who were present. They included Mr. Radnaasumberel Gonchigdorj, a former Chairman of the State Great Hural who had visited Canada. Chairman Elbegdorj emphasized the importance of exchanges between political parties and of relations with Canada since it is such an important investor in Mongolia. The Chairman also spoke of his party’s preparations for the next elections in which his party will focus on good governance, transparency and the fight against corruption. Speaker Milliken expressed his support for more parliamentary exchanges and referred to his invitation to the Chairman of the State Great Hural to visit Canada. With regard to the issue of mineral exploration, the delegation spoke of the challenges facing investors as the requirements for financing and the interests of the population need to be balanced. A lengthy discussion regarding the aims and meaning of the new Mineral Laws followed with Mr. Durzee Odhuu, who led the Working Group in Parliament drafting the new laws. Mr. Odhuu acknowledged the importance of Canada’s presence in Mongolia’s mining sector, but added that Canadian firms had acted improperly by spreading false information during the drafting of the laws. He explained that any questions pertaining to the laws will be interpreted by the Supreme Court and on the basis of legal precedents. He called on Canadian cooperation to clarify any outstanding issues and stressed that the Government of Mongolia has no intention of seizing the assets of companies. Lunch meeting with members of the Canada-Mongolia Friendship Society The Friendship Society includes not only members of parliament but academics, professionals and others interested in relations with Canada. Discussions focused on past exchanges and on areas in which Canada could be of assistance to Mongolia. Press Conference with Chairman Nyamdorj and Speaker Milliken To mark the end of the official visit of the delegation, the Chairman and Speaker addressed a press conference. They both expressed the view that the numerous discussions and exchanges of views during the meetings had made for a very successful visit and laid the basis for further parliamentary and other exchanges between Mongolia and Canada. Reception hosted by Speaker Milliken on occasion of “Visual Voices: A Canada-Mongolia Film Forum on Tradition, Culture and Modernity” The reception was an event to promote Canada-Mongolia relations and demonstrate the importance both countries attach to cooperation on First Nations, Inuit and traditional cultures. Participants at the forum as well as people in government and the private sector were invited to attend. Visit to property of Mr. Gavaa Batkhuu, Vice-Chair of Canada-Mongolia Parliamentary Group Mr. Batkhuu invited the delegation to his rural property in the province of Bulgan and hosted a lunch in a traditional Mongolian ger. The highlight of the visit was Mr. Batkhuu presenting the Speaker with a horse. The delegation also visited the Hustai Nuruu National Park, home to wild horses. Acknowledgments The delegation was pleased and honoured to have been invited to visit Mongolia on the historic occasion of the 800th anniversary of statehood. The members were impressed by the progress that Mongolia has made towards becoming a parliamentary democracy. While Mongolia still faces many challenges as it develops, it has earned Canada’s respect and support for its achievements since becoming a multi-party democracy. In closing, the Canadian delegation wishes to thank its host, His Excellency Tsendiin Nyamdorj, Chairman of the State Great Hural of Mongolia, for his hospitality throughout the successful visit. The delegation is grateful to His Excellency Dugerjav Gotov, Ambassador to Canada, for his support and attendance during the visit to Mongolia. The delegation wishes to express its most sincere appreciation for the advice, support and organization of the program to Mr. Phil Calvert, Minister, and Mr. Alan Hamson, Second Secretary at the Embassy of Canada in Beijing. The delegation also wishes to thank the East Asia Division of Department of Foreign Affairs and International Trade Canada for its assistance in preparation for the visit. Respectfully submitted, The Honourable Peter Milliken Speaker of the House of Commons

TRAVEL COSTS

Official Visit of the Honourable Peter Milliken, Speaker of the House of Commons, and a Parliamentary Delegation, to Mongolia, October 9 to 15, 2006.

TRAVEL $ 41,418.77

ACCOMMODATION $ 1,014.69

PER DIEMS $ 345.50

PROTOCOL $ 2,905.25

MISCELLANEOUS $ 0

TOTAL $ 45,684.21