  We have studied the O and Ne absorption features in the X-ray spectrum of Cyg
X-2 observed with the Chandra LETG. The O absorption edge is represented by the
sum of three absorption-edge components within the limit of the energy
resolution and the photon counting statistics. Two of them are due to the
atomic O; their energies correspond to two distinct spin states of
photo-ionized O atoms. The remaining edge component is considered to represent
compound forms of oxide dust grains. Since Cyg X-2 is about 1.4 kpc above the
galactic disk, the H column densities can be determined by radio (21 cm and CO
emission line) and H alpha observations with relatively small uncertainties.
Thus the O abundance relative to H can be determined from the absorption edges.
We found that the dust scattering can affect the apparent depth of the edge of
the compound forms. We determined the amplitude of the effect, which we
consider is the largest possible correction factor. The ratio of column
densities of O in atomic to compound forms and the O total abundance were
respectively determined to be in the range 1.7^{+3.0}_{-0.9} to
2.8^{+5.1}_{-1.5} (ratio), and 0.63 +/- 0.12 solar to 0.74 +/- 0.14 solar
(total), taking into account the uncertainties in the dust-scattering
correction and in the ionized H column density. We also determined the Ne
abundance from the absorption edge to be 0.75 +/- 0.20 solar. These abundance
values are smaller than the widely-used solar values but consistent with the
latest estimates of solar abundance.
