MEDIA REACTION Q TREASURY SECRETARY PAULSON

UNCLAS TOKYO 005493 SIPDIS SIPDIS STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR, EAP/J, EAP/P, PM; USTR FOR PUBLIC AFFAIRS OFFICE; TREASURY FOR OASIA/IMI; SECDEF FOR OASD/PA; CP BUTLER OKINAWA FOR AREA FIELD OFFICE; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR E.O. 12958: N/A TAGS: OIIP KMDR KPAO JA SUBJECT: MEDIA REACTION Q TREASURY SECRETARY PAULSON VISIT TO CHINA AND MEDIA CONTROL IN CHINA - TOKYO LEAD STORIES: Top stories Monday morning included speculation about the executive lineup of the ruling Liberal Democratic Party, which is to be announced Monday. ¶1. "US Taking New Strategy Toward China Under Paulson's Leadership" The Liberal Asahi carried an analytical report stating (9/23): "Secretary of the Treasury Paulson agreed with Chinese President Hu and Premier Wen on Friday that the US and China would cooperate on a wide range of economic issues.... China, which hopes that Paulson can serve as a bridge between Washington and Beijing, gave him a warm reception, and the yuan continued to rise every day he was there.... Following the departure of Deputy Secretary of State Zoellick, who was viewed by Beijing as 'pro-China,' Secretary Paulson appears to be the de facto liaison between Washington and Beijing.... If China delays implementing the many financial tasks it faces, however, the display of friendship staged by the Paulson visit could immediately collapse." ¶2. "China Tightening Control of Media" The top- circulation, moderate Yomiuri editorialized (9/25): "The Chinese government under President Hu has been tightening its control over the media out of fear that the regime could find itself threatened if it loosens its grip.... Restrictions on foreign media have heightened the international community's distrust of the Chinese government.... With the 2008 Beijing Olympics approaching, international criticism of this clampdown on media will inevitably grow. Although the regime strikes a pose of unconcern in the face of both domestic and foreign criticism, it is unclear how long Beijing will be able to keep this up in the information age." SCHIEFFER