MEDIA REACTION: NORTH KOREA, G-20

UNCLAS AIT TAIPEI 000407 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: NORTH KOREA, G-20 ¶1. Summary: Taiwan's major Chinese-language dailies focused their April 4-6 news coverage on North Korea, which launched a long-range rocket over Japan Sunday; on the Local Government Act passed by the Legislative Yuan Friday, which will allow cities and counties to merge and become special municipalities; and on the New York Yankees' new stadium. In terms of editorials and commentaries, a column in the mass-circulation "Apple Daily" discussed Pyongyang's rocket launch and called it a "home run" for North Korean leader Kim Jong-Il. An op-ed piece in the pro-unification "United Daily News," however, said the rocket launch has met the needs of both Pyongyang, which wanted to grab Washington's attention, and Seoul and Tokyo, which took advantage of the launch to boost their dropping domestic approval ratings. With regard to the G-20 meeting, a "United Daily News" editorial said the results generated by the G-20 meeting are shaping the world. An editorial in the conservative, pro-unification, English-language "China Post" said China's growing economic and political powers have earned itself a successful debut at the G20 summit. An editorial in the pro-independence, English-language "Taipei Times," on the other hand, expressed regret that Taiwan, a significant economic entity, was excluded from the G20 summit because of the island's peculiar international status. End summary. ¶2. North Korea A) "Home Run for Kim Jong-Il" Columnist Antonio Chiang wrote in his comment in the mass-circulation "Apple Daily" [circulation: 520,000] (4/6): "The question regarding whether Pyongyang has launched a satellite or a ballistic missile will not be determined until Japan salvages the remnants of the rocket from the sea. But this incident has grabbed the world's attention, putting the North Korean issue under the international spotlight again. Once again Kim Jong-Il has hit a home run. ... When the entire world is being hit hard by the financial tsunami to a ramshackle state, only Pyongyang remains intact, and not only so, it still has the leisure time to play Cold War games. As long as Pyongyang has China and Russia to be its powerful patrons, neither the United States nor Japan can do anything about it; all they can do is to play along with it patiently." B) "Taro Aso and Lee Myung-bak, Saved by North Korea's Rocket?" Tsai Zheng-jia, Director of the Division of Asia Pacific Studies, Institute of International Relations, National Chengchi University, opined in the pro-unification "United Daily News" [circulation: 400,000] (4/6): "... It goes without saying that Pyongyang had no intent to trigger regional conflicts at this point; all it wanted was to create tensions in the region, to prove to the world that North Korea is capable of launching long-range missiles and, while convenient, to promote its rockets. In the meantime, it wants the Obama Administration to know that North Korea is a country that he must not ignore. That is why it loaded a satellite rather than a missile on its rocket and cleverly made it fall in the open seas on either side of Japan's territory. ... In the meantime, Pyongyang also managed to have the rocket fly over Japan's territorial airspace at an altitude of over 30,000 feet high so as to dodge the aim of Japan's Patriot missiles and thus [avoid] sparking military conflicts between the two countries. "Clearly, this was a crisis of test-firing that met the needs on both sides. Pyongyang wants to use the threat of 'missiles' to attract the United States' attention, increasing its bargaining chips in the Six-Party Talks. The governments of both Japan and South Korea, in the meantime, also took advantage of their bluffing of the threat of Pyongyang's 'missiles' to boost their domestic approval ratings and to advance toward [being] normal countries." ¶3. G-20 A) "G-20 Is Changing the World" The pro-unification "United Daily News" [circulation: 400,000] editorialized (4/6): "... For the United States, which [originally] expected that the G-20 nations would jointly commit to expanding public expenses, the [G-20] summit was not a success. But the soft posture of [U.S.] President Barack Obama has successfully transformed the G-20 meeting and saved it from becoming a meeting aimed at 'criticizing and denouncing' the United States. ... "China's proactive presence at the G-20 summit was, without a doubt, a development that no one should ignore. As a multi-lateral forum, G-20 can also be simplified into [a meeting] among the United States, Europe and emerging countries, based on the patterns and levels of each country's development. But Beijing's efforts to toss off controversial topics in a row and to shape the leaders' dialogue between China and the United States into a G-2 set-up have rapidly refashioned [China] from being a mere listener in the previous international forums to an opinion leader. The diplomatic confidence China has demonstrated also meant that it will play a proactive role in participating in more and more international issues to the extent that it will likely dictate or affect [such forums]. ..." B) "China's Impressive G-20 Debut" The pro-unification, English-language "China Post" [circulation: 30,000] editorialized (4/4): "After stunning the world at its international coming out party last August when Beijing hosted the Olympics, China stepped onto the world stage this week at the G-20 summit in London as a major player. The entire world looked upon China to help the United States and the rest of the world tide over the 'once-in-a-century' economic crisis. ... It seems paradoxical for a developing country like China (per capita GDP US$3,266) to draw so much attention at the summit, but money talks, really. The international reality has pushed the country to the center of the stage. Chinese President Hu Jintao came to London with more money in the bank than any other participant-- US$1.96 trillion in exchange reserves. China holds US$1 trillion in U.S. government debt, making it the largest creditor. Many other countries in the West owe China money. "At a moment when most countries, developed and developing alike, are suffering from negative economic growth, China's economy is expected, by most economists, to grow at 6.5 percent this year, if not the 8 percent projected by Beijing. Suddenly, China is looked upon as a role model of sorts. China's banks now appear healthier and stronger than their counterparts in the West, especially the United States where Wall Street now looks like Ground Zero. ... It's no wonder that China stole much of the spotlight in London. No more talks about China's 'currency manipulation' by U.S. officials. President Barack Obama and Hu Jintao shook hands like old buddies though they had never met before, and pledged a stronger strategic partnership. ... Just a couple of years ago, most economists predicted that China will catch up with Japan within a decade. Now some economists are saying China may have already replaced Japan as the number two economic superpower. When Japan is overtaken, can America be far behind? ..." C) "Taiwan's Role in the G20 Plan" The pro-independence, English-language "Taipei Times" [circulation: 30,000] editorialized (4/6): "... Some foreign commentators have complained that Taiwan, with its strong economy, should have been invited to join the G20. Taiwan did not take part in the summit and international actors would soon ask Taiwan to take a role in international efforts to counter the financial crisis or ask it to contribute funds to the IMF. However, Taiwan's economy is export-oriented and as such, it is closely linked to the international economy. That means that helping revive the global economy is in Taiwan's own interest as much as it is in the interest of the rest of the world. Because Taiwan's particular international status precludes participation in many international organizations, the government should consider ways of taking part before the question arises. "The worst idea would be for Taiwan to simply provide funds through China, which would only reinforce the impression that Taiwan is part of China. The result would be a substantial loss to Taiwan. The government must avoid this scenario at all costs. A better option would be for Taiwan to provide funds through the US. Although this might look peculiar from a diplomatic perspective, it would build mutual trust and strengthen Taiwan's relationship with Washington. A final option, though, is the Asian Development Bank (ADB),which is one of the few international organizations of which Taiwan is a member. The ADB also has a close working relationship with the IMF. Channeling aid through the ADB would allow Taiwan to exercise its rights as an independent member of the bank, reducing diplomatic entanglements. It would also strengthen Taiwan's position within the ADB and demonstrate its commitment to the global effort. This is the best option for Taiwan to participate in international efforts to counter the financial crisis." YOUNG