TOKYO MEDIA REACTION - FINANCIAL CRISIS

UNCLAS TOKYO 002935 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 - FINANCIAL CRISIS ¶1. LEAD STORIES: All Tuesday morning papers gave top or front-page play to a monthly economic report publicized by the Japanese government on Monday that downgraded the nation's monthly economic evaluation for the second time in three months. ¶2. "Summit Should Present Roadmap to Overcome Financial Crisis" The business-oriented Nikkei editorialized (10/21):"An emergency G8 summit will be held in November in the U.S. that will also include such major emerging economies as China and India to discuss ways to overcome the current financial crisis. Although it is significant that leaders of those nations will meet in person, it is possible that the results of the summit could disappoint the market. Participants will be tested as to whether they will be able to draw a clear roadmap for the international financial system by learning the lessons of the current crisis." ¶3. "Summit Should Come up with Clear Measures" The moderate Yomiuri opined in an editorial (10/21): "What kind of remedies for the current financial crisis, which has spread not only to developed nations but also to emerging economies, will the upcoming financial summit be able to work out? The role of the summit will be important.... If the leaders fail to do nothing more than express their resolution, the market will be disappointed.... The U.S., which has been hesitant to take action, is now cooperating with Europe. The U.S., Japan, and Europe should take the lead in crafting effective and specific measures through close coordination." ¶4. "Summit Should Pave the Way for New Global Financial Framework" The conservative Sankei contended in an editorial (10/21): "...As the financial crisis is said to be the biggest since the Great Depression, it is significant that leaders of the main players in the world economy will gather to discuss measures to deal with it. We welcome this.... If the summit fails to produce more effective measures than the G8 action plan, the market will be disappointed and might experience further turbulence. The meeting must not turn into a blame game due to the presence of such emerging economies as China and India.... As globalization is accelerating, the international community will fail unless it creates a new system that can deal with a world economy that includes emerging economies. It needs to overcome the current crisis and pave the way for a new global financial framework." SCHIEFFER