MEDIA REACTION: TIBET, FINANCIAL CRISIS

UNCLAS BEIJING 004455 DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) SIPDIS E.O. 12958: N/A TAGS: OPRC KMDR CH SUBJECT: MEDIA REACTION: TIBET, FINANCIAL CRISIS -------------- Editorial Quotes -------------- ¶1. TIBET "China warns Sarkozy again" The official Communist Party international news publication Global Times (Huanqiu Shibao)(12/05): "The Chinese government has made it's stand known concerning the French President's meeting with the Dalai Lama. China - Europe relations are undergoing a severe test. China has explained their bottom line concerning the Dalai. If Sarkozy continues to step over the line, he will face the strength of China. Chinese experts indicate that Sarkozy's insistence to meet the Dalai at the present time has seriously damaged the China-France relations, which was already damaged before the Olympics. Both the two countries' economic and trade relations will be influenced. The Chinese government has given Sarkozy and the French people a lot of chances. Sarkozy's behavior has harmed the feelings of the Chinese government and its people. Right now, when France is impacted by the financial crisis, Sarkozy should think and then act. The Dalai has been a trouble maker in the International Society. However, where China's interests are concerned, 'the Western countries that lift stones in order to throw them at China, will only drop them on their own feet', paying the price for their action." ¶2. FINANCIAL CRISIS "Don't deny the market system because of the financial crisis" The official Communist Party international news publication Global Times (Huanqiu Shibao)(12/05): "The Chinese Government has issued a 4 trillion Yuan plan to stimulate the economy. It will undoubtedly strengthen people's confidence in the economy and prevent its further downward slide. However, because of the break-out of the financial crisis, public opinion has been inclined towards denying the market system. The markets went wrong. This doesn't mean that there is anything wrong with their foundation. One should not simply deny the market system. This amount of large-scale investment was bound to be punished by the market because it wasn't concerned about restrictions. The root cause of this financial crisis is not the market system itself, but the lack of effective supervision of the market. Many people seek a Keynesian resolution. However, Keynesian is not omnipotent. When the market doesn't work, it is the government's job to influence and correct it. However, the obsession with Keynesian's presupposition that whatever the Government's decision is -- is correct is, most of time, not the right decision. The Government's decisions do not always solve the problem. Sometimes they cause more damage than the damage caused when the market initially went wrong." RANDT