TOKYO MEDIA REACTION - U.S.-INDIA NUCLEAR

UNCLAS TOKYO 002452 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 - U.S.-INDIA NUCLEAR ACCORD AND U.S. BAILOUT OF HOUSING LOAN FIRMS ¶1. LEAD STORIES: Most Monday morning papers led with the disclosure by Treasury Secretary Paulson that the USG will use public funds to rescue Fannie Mae and Freddie Mac. ¶2. "Can Nuclear Nonproliferation Regime Be Maintained?" On the Nuclear Suppliers Group's (NSG) decision to endorse the U.S.-India nuclear cooperation accord, the liberal Mainichi editorialized (9/7): "...While the decision was unanimous in the end, the approval was reportedly greeted not with applause but silence. Representatives may have been concerned that this decision could cause problems in the future. We cannot help but feel a strong sense of crisis that the international community's wisdom concerning nuclear nonproliferation buckled under U.S. pressure." ¶3. "Historic Folly" The liberal Mainichi argued in an editorial (9/8): "We cannot subscribe to the U.S. view that its nuclear accord with India will enhance the NPT regime by bringing India into a nonproliferation system. We think it is a historic folly that will likely weaken the NPT regime.... Strong concerns remain about Iran following North Korea's path on nuclear proliferation. Enhancing trust in the NPT system is needed to contain a nuclear crisis. The decision (by the NSG) completely runs counter to such a course." ¶4. "Allowing Nuclear Cooperation with India Puzzling" The business-oriented Nikkei insisted in an editorial (9/8): "The principles of nuclear nonproliferation must not be undermined. It is a matter of course that India should give up its nuclear programs first if it wants to receive equipment and financing for nuclear power generation." ¶5. "U.S. Takes Responsibility in International Economy" On the U.S. bailout of Fannie Mae and Freddie Mac, a Washington-based reporter for the liberal Tokyo Shimbun wrote (9/8): "The decision represents a major policy turnabout for the Bush administration, which had been hesitant about intervening in the market. The U.S. took this step in order to take responsibility for the subprime loan crisis. However, given the deterioration of the international economy, including the U.S. economy, the U.S. action leaves us with the impression that it comes too late." ¶6. "Rescue Intended to Avert Chain of Crises" The liberal Asahi's Washington correspondent asserted (9/8): "The USG has taken control of government- affiliated housing-loan corporations. This is an emergency situation in which the federal government is effectively shoring up the world's largest mortgage market. If the USG had not chosen to use a massive amount of public funding to keep the two corporations operating, the U.S. mortgage market would have ceased to function." ZUMWALT