TOKYO MEDIA REACTION - GLOBAL ECONOMY, NORTH

UNCLAS TOKYO 002715 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 - GLOBAL ECONOMY, NORTH KOREA AND PAKISTAN ¶1. LEAD STORIES: Most Tuesday morning papers front-paged a coordinated decision by the central banks of the U.S., Japan, and Europe to provide financial markets an additional $330 billion in liquidity in order to make credit available in dollars amid a freeze in lending among commercial banks. ¶2. "Bailout Scheme Must be Effective" On the U.S. plan to bail out the financial industry, the conservative Sankei editorialized (8/30): "What is critical is to employ all tools available in order to preempt a financial depression. Elections must not be used as an excuse to prevent that." ¶3. "Assistant Secretary Hill Is Facing Crucial Moment" A Washington correspondent for the top-circulation, moderate Yomiuri wrote (9/30): "In his upcoming trip to Pyongyang, Assistant Secretary of State Hill will attempt to find common ground on the issue of nuclear verification in order to jumpstart the nuclear disablement process. If his diplomacy falters, however, the U.S. and South Korea would likely suspend energy assistance for North Korea in order to counter its restoration of nuclear facilities at Yongbyon. The six- party talks appear to be at a crossroads." ¶4. "Turmoil in Nuclear State Worrisome" On growing political instability in Pakistan, the liberal Asahi asserted in an editorial (9/30): "What is worrisome is that Pakistan possesses nuclear arsenals. If the Zardari government's grip on power wanes, such weapons may fall into the hands of terrorists. This must be prevented at all costs. Preoccupation with Afghanistan runs the risk of undermining security in Pakistan and this is very dangerous.... The international community should prioritize supporting the civilian Pakistani government in order to help it tamp down domestic unrest." SCHIEFFER