TOKYO MEDIA REACTION - G-7

UNCLAS TOKYO 001015 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: TOKYO MEDIA REACTION - G-7 ¶1. LEAD STORIES: There were no papers published on Monday morning due to a press holiday. Broadcasters reported on the wrap-up of the meeting of G-7 finance ministers and central bank governors. ¶2. "G-7 Action Needed to Prevent Crisis from Worsening" The business-oriented Nikkei editorialized (4/13): "With financial authorities expressing concerns about the seriousness of the current economic turmoil, financial ministers and central bank governors of the G-7 nations met and reconfirmed that they will act in concert to stabilize financial markets and quickly implement measures to prevent another crisis from occuring.... U.S., Japanese, and European authorities, all of which share a strong sense of crisis, expressed their determination to cope with the current financial problems. They failed, however, to present remedies to remove concerns held by market players.... Anxious market players are keeping their eyes on what kind of action G-7 members will take." ¶3. "America's Preparedness Questioned" The liberal Mainichi carried an editorial stating (4/13): "...Given that market players are worried because they do not know how deep the current financial problems are, the remedies worked out by the G-7, including improved information disclosure and risk assessment, seem to be a first step in the right direction. However, the G-7 statement is mainly aimed at preventing another crisis from occuring in the future and is unlikely to remove the present concerns immediately. Whether the world can overcome the current crisis, which originated in the U.S., will depend on the extent of specific action to be taken by the USG and FRB." ¶4. "Close Cooperation Necessary Among G-7 Nations" The conservative Sankei's editorial stated (4/13): "Members of the G-7 agreed on ways to stabilize financial markets, including joint surveillance of major financial institutions, in order to cope with the financial crisis that has emerged in the U.S.... Continuing close coordination is needed to overcome the current crisis.... In the U.S., the FRB has implemented interest rate cuts and eased the monetary supply, and the Bush administration has proposed tax cuts and mortgage refinancing measures. However, market players remain skeptical about the effectiveness of those measures.... With a presidential election approaching, the Bush administration remains cautions about the idea of using public funds. However, it needs to do so to ease market anxieties." SCHIEFFER