TOKYO MEDIA REACTION - U.S. BAILOUT PLAN

UNCLAS SECTION 01 OF 02 TOKYO 002737 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. BAILOUT PLAN ¶1. LEAD STORIES: All Wednesday morning papers led with the worldwide stock plunge on Tuesday and President Bush's statement on Tuesday urging Congress to take action. ¶2. "U.S Should Realize Its Responsibility to The World" The liberal Asahi editorialized (10/1): "...If the U.S. kills the bailout bill, the global financial system could be thrown into turmoil. The U.S. government and Congress should realize their responsibility. They need to agree on amendments to the bill and pass it by the end of this week." ¶3. "Wake up to the Deepening Crisis!" The liberal Mainichi insisted in an editorial (10/1): "...It's time for U.S. lawmakers to take the alarm in the market seriously and realize the seriousness of the situation. The crisis is too grave for them to be trapped by ideological debates or interests in their constituencies. We hope that the Bush administration and Congress will make maximum efforts to revive the financial rescue plan before it becomes too late." ¶4. "USG and Congress Should Move Quickly" The moderate Yomiuri editorialized (10/1): "Some people say the global economy is on the verge of panic. The U.S.- originated financial crisis should be averted by all available means. The U.S. government and Congress should realize their responsibility, as the subprime loan crisis broke out in the U.S. They should swiftly enact the bailout bill." ¶5. "U.S. Should Take Responsible Action to Avoid Financial Panic" The business-oriented Nikkei argued in an editorial (10/1): "Market players throughout the world must have been dumbfounded. The U.S. House of Representatives rejected on Monday the bailout bill, which was put forward to deal with the financial crisis. The irresponsible rejection showed a lack of understanding that the action could trigger worldwide financial panic. The U.S. government and Congress should swiftly pass an amended bill while maintaining their basic policy of buying troubled assets with public funds." ¶6. "U.S. Should Take Responsibility as Epicenter of Financial Crisis" The conservative Sankei's editorial said (10/1): "...The rejection was unexpected, as the government and congressional leaders had reached a tentative agreement... What needs to be done is clear. The government and Congress should hold another discussion to quickly put forward amendments to the bill." ¶7. "U.S. Should Be Responsible for World Economy" The liberal Tokyo Shimbun editorialized (10/1): "Stock prices in the markets throughout the world plunged following the rejection by the U.S. House of Representatives of the bailout bill, which was aimed at rescuing troubled financial institutions. The U.S. government and Congress should realize their responsibility for the global economy and move quickly to amend the bill." TOKYO 00002737 002 OF 002 SCHIEFFER