TOKYO MEDIA REACTION - G8 FINANCIAL

UNCLAS SECTION 01 OF 02 TOKYO 001629 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 - G8 FINANCIAL MINISTERIAL, JAPAN-DPRK RELATIONS, AND REFERENDUM ON EU TREATY IN IRELAND ¶1. LEAD STORIES: All Monday morning papers led with the aftermath of Saturday's major earthquake in northern Japan. ¶2. "Statements Alone Cannot Stop Inflation" The liberal Mainichi editorialized (6/16): "In a joint statement, G8 finance ministers pledged to take a concerted line in order to stabilize the global economy. However, mutual coordination via words alone will backfire by triggering market turmoil. U.S. monetary officials have repeatedly made statements warning against a weak dollar and inflation. But without taking action to follow through on such statements, they will end up deepening distrust among market players.... The U.S. is urged to keep in mind that a delay on its part in hiking interest rates would pose an even more serious challenge to the world economy." ¶3. "Despite Differences, Closer Coordination Still Needed" The liberal Tokyo insisted in an editorial (6/15): "There appears to be policy disarray among G8 members, with Japan looking at a cut in interest rates, while the U.S. remains neutral about its own rates, and the Europeans are exploring a rate hike. This could lead to a dangerous situation. The financial market could conclude that coordination among G8 members is not working if each member takes action independently in order to prioritize its own domestic economic situation." 4."U.S. Must Not Hurriedly Delist North Korea" The conservative Sankei stated in an editorial (6/14): "Behind North Korea's change in attitude toward the abduction issue is apparently its hope that it can get the U.S. to move quickly to delist it as a state sponsor of terrorism. Pyongyang's release of an antiterrorism statement just ahead of the Japan-DPRK meeting was also done with this in mind.... The Japanese people will be displeased if it turns out the recent round of Japan-DPRK negotiations was aimed at courting U.S. attention. Given the lack of substance in North Korea's proposals, the U.S. is urged not to easily delist North Korea." ¶5. "Identity with Nation-State or with Europe?" The liberal Mainichi wrote in an editorial (6/15): "The shock (regarding Ireland's rejection of the Lisbon Treaty) was palpable, as the nation is viewed by other members as one that has benefited from its membership in the EU. The other members should analyze and deal with the setback in the view that public skepticism about deeper EU integration is a problem common to all of them." ¶6. "France, Germany Concerned about Stalemate in EU Integration" On Ireland's rejection of the Lisbon Treaty, the top-circulation, moderate Yomiuri wrote (6/15): "French President Sarkozy and German Chancellor Merkel are worried not just about a potential impasse over EU organizational reform but also about a halt in EU integration in the long run, which would make it very difficult for Europe to become a locus in the global political and economic worlds." TOKYO 00001629 002 OF 002 SCHIEFFER