Altan San Securities - Mongolia Investment - USA agrees to divert rejected MCC funds to other projects

USA agrees to divert rejected MCC funds to other projects

Writing in The Asia Pacific Bulletin produced by the East-West Center in Washington, Alphonse F. La Porta, a retired United States Foreign Service Officer who served as chief of mission in Ulaanbaatar from 1997-2000, says that the USA has agreed to reprogram the USD188 million in MCC funds originally meant for the UB Railway but rejected by the Russian side in that partnership company. According to him, Prime Minister Bayar caved in to Russian pressure and, “preferring appeasement rather than keeping the deal”, appealed to the Obama administration to reprogram the funds into other projects. Washington did not want to “provoke a bilateral spat” with either Mongolia or Russia “over this new heavy-handed exercise of Putinism". Instead, Secretary of State Hillary Clinton told visiting Foreign Minister S. Batbold that the administration would consider other projects. No doubt the election of Mr. Elbegdorj led the Obama administration to support democracy rather than seek confrontation.

Source: www.news.mn

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