The DP has changed its mind about the referendum on the
election law and does not support the idea any longer.

Explaining the change of stand, Ch.Saikhanbileg, head of the
DP group in Parliament, told journalists that holding a referendum would cost
between MNT6 billion and MNT8 billion but the outcome may not justify the
prohibitive expense. A referendum held in a hurry and under politically charged
conditions may not represent the true national mood. If people now vote against
change, another referendum cannot be held before at least 8 years. Saikhanbileg
said a vote on amendments to the Constitution could be held together with the parliamentary
election next year.

Saikhanbileg said the DP has agreed to modify its stand on
the election law and if the MPP does the same, an agreement can be reached. The
MPP is sticking to direct election for 52 MPs while allowing the remaining 24
to be elected on the basis of proportional representation. The DP has suggested
a 38:38 ratio and has informed the MPP of the decision.

At a later press conference, the MPP group leader
U.Enkhtuvshin said the DP is making it difficult for Parliament to work
properly. Election law is an issue of state policy and thus, under the law
passed in 1995, can be decided in a referendum. He also asked the DP group to return
to Parliament. “If we cannot finish pending work, including this issue, before
July 10 we shall have to wait until the Autumn session,” he said, adding, “If  the two groups cannot agree, the decision
should be passed on to voters.”

Enkhtuvshin said according to MPP calculations, only MNT3
billion was needed for a referendum.