MEDIA REACTION: FINANCIAL CRISIS, CHINESE NAVY'S

UNCLAS SECTION 01 OF 02 BEIJING 001063

DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007)
SIPDIS

E.O. 12958: N/A
TAGS: OPRC KMDR CH PREL ECON

SUBJECT: MEDIA REACTION: FINANCIAL CRISIS, CHINESE NAVY'S
ANNIVERSARY, UN RACISM CONFERENCE

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Editorial Quotes
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1. FINANCIAL CRISIS

a. "The internal defect and future evolution of the international
currency system"

21 Century Business Herald (21Shiji Jingji Baodao) under Guangdong
21 century publishing company Ltd. (04/21): "For more than 30 years,
the Dollar Standard System has caused the abnormal development of
American industries. This development then became ingrained in their
culture and now it is hard to change. The U.S., as the debtor, has
unprecedentedly thrown out many standard business practices, for
example the practice of a debtor country paying interest to a
creditor country. However, in the U.S. it is often the opposite.
American scholars call this 'excessive privilege.' Meanwhile,
surplus dollars are flowing back to the U.S. ...Regional wars
created by the U.S. have caused dramatic increases in the of the
U.S. government's fiscal deficit, trade deficit, developing
country's foreign reserves, the surge of the world's oil and gold's
price, the collapse of the international currency system, and the
overall financial crisis. ...The root cause of the financial crisis
is the Dollar Standard System which has no restrictions and
containment. The world's imbalanced economy is not the cause of the
financial crisis. The U.S. is able to gain resources, products and
strategic assets from the dollar's global liquidity. In the future,
the U.S. dollar's zone will include the whole of North America and
will expand into South American countries. The RMB's
internationalization will be both an external and internal
comprehensive process. It all depends on whether or not the
successful economic transformation of China can be fulfilled."

b. "Chinese-style Marshall Plan is right on time"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(04/21): "Many counties have discussed whether
it is appropriate for China to conduct its own Marshall Plan. Based
on China's development, the country is looking for opportunities to
expand its economic strategy. The Marshall Plan may be a good
platform and method for China's global economic strategy. If China
starts a Marshall Plan, China could stimulate domestic demand by
driving up external demand. A Marshall Plan could also help China to
offset the negative effects of China's economic stimulus measures,
i.e. surplus production. What's more, a Marshall Plan can provide
alternative ways to spend China's foreign reserves. To avoid a
dramatic drop in the values of American bonds held by China, China
should increase their imports by giving the bonds to countries that
are in great need. Furthermore, the Marshall Plan could prepare
China for their future global economic strategy. Unpractical
expectations should be avoided when researching the plan."


2. CHINESE NAVY'S ANNIVERSARY

"Navies from 14 different countries will attend the Troop Review
ceremony"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(04/21): "The chiefs of both the American and
the Russian Navies will attend the Troops Review ceremony. Warships
from many countries have, for the first time, assembled in China
with a distinctly peaceful goal. The Chinese navy's combat
capabilities are 4th or 5th in the world. However, different from
the U.S., China has no need to set up a super-navy. China is only
focused on developing their navy suitable to their country's
strength and security. Chinese experts indicate that this Troops
Review will influence China's cooperation with other countries in
the future because the Review will help enhance the mutual
understanding and trust in regard of military cooperation. The
Chinese navy has an open attitude."


3. UN RACISM CONFERENCE

"To understand rationally and communicate equally is a challenge"

The official Communist Party People's Daily (Renmin Ribao) (04/210:
"A few countries, including the U.S., have opposed the UN's
anti-racism summit. An official statement of the U.S. explained that
that this is due to the conference's historical document which
contains criticism against Israel. From leaving this conference in
2001 to the resistance of today, the U.S. attitude has not changed.
Today, the U.S. emphasizes smart power. However, the U.S.' stance
has not changed on this issue, which is worth noting. The U.S. bears
a historical burden concerning the Israel issue. The U.S. and Israel
are diverging concerning the Palestine-Israel conflict. The U.S.
has chosen to stand with Israel at the racism conference. What's
more, Ahmadinejad has made his attendance at the conference very

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high profile. Under the cloud of the U.S.-Iran relationship, the
U.S. would rather avoid the conference than be embarrassed. In order
to deal with the anti-racism issue from an equal basis, concerned
parties should adopt a more rational, more understanding and more
constructive attitude."

PICCUTA