MEDIA REACTION: IRAN, NORTH KOREA, AMERICAN BONDS

UNCLAS BEIJING 001638 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: IRAN, NORTH KOREA, AMERICAN BONDS -------------- Editorial Quotes -------------- ¶1. IRAN "Iran falls into a suspected color revolution" The official Communist Party international news publication Global Times (Huanqiu Shibao)(06/17): "Two Chinese experts expressed that because Iran has a supreme leader with high authority it is hard to compare it to the former Soviet states where there were color revolutions. Iran is different from Central Asian countries which had color revolutions. It is not attached to the west, relatively distant to the west and isolated from them. The west has a hard time infiltrating Iran to influence it. At the same time because of religious differences Iran is vigilant about foreign cultures. Iran's situation is not out of control yet. The former Soviet Union has had color revolutions due to the belief vacuum after its disintegration. However, Iran, who has rich religious culture, is completely different. Western media has started to predict a chaotic future for Iran." ¶2. NORTH KOREA "The North Korea nuclear crisis has not hit bottom yet" Elite Reference (Qingnian Cankao),a newspaper affiliated to the official Communist Youth League China Youth Daily (06/17): "The new UN Security Council resolution has several new measures. The criticism against North Korea is at the most severe level. The resolution has clearly enlarged the scope of sanctions on North Korea. Sanction measures are clearly defined. The financial sanctions are stricter. However checking suspicious goods on ships exiting or entering North Korea still needs to gain agreement from the registered country. It has considered North Korea's feelings, which shows international society does not intend to enlarge compulsive sanctions on North Korea. Besides, the resolution also has rejected a U.S. proposal - if the situation deteriorates, the UN charter No. 42 will be automatically used, which is the authorization of military actions. A Foreign Ministry Spokesperson said political and diplomatic measures are the only correct way to seek resolution of the issue. The Obama administration currently seems to still want to solve the issue through diplomatic measures. The Assistant Defense Secretary said the U.S. will maintain the Six Party Talks framework and maintain discussions with other parties even if it conducts bilateral dialogue with North Korea. This shows the U.S. policy towards North Korea still has maneuvering room." ¶3. AMERICAN BONDS "From G8 Finance Ministry summit to BRIC summit: China has to find its own way to get rid of the reliance on U.S. dollars" Guangdong 21st Century Publishing Company Ltd.'s business newspaper 21st Century Business Herald (21Shiji Jingji Baodao)(06/17): "Russia's attitude has made a complete turn from promoting 'super-sovereign currency' to advocating the U.S. dollar. An expert from the China Academy of Social Science mentioned that it is very hard to promote international currency because there is no country that sincerely promotes it, but only do it for benefits. Without support from a sovereign government, an international currency cannot be promoted. We should not expect too much of an international currency. He also analyzed the reason Russia started to support the U.S. dollar; the recent depreciation of the U.S. dollar and increase in bulk commodity prices has a positive influence on Russia's energy exports. So Russia's U.S. dollar income is increasing. He also mentioned that currently China decreased its holding of U.S. treasuries is not to make preparations for purchasing IMF bonds. After China decreased its holdings of treasuries it will likely switch to other types of U.S. bonds. No matter whether the U.S. dollar falls or increases, what China really cares about is the real purchasing capabilities behind foreign reserves. Using loans in exchange for oil with Brazil and Russia is holding such goals. The summit is meaningful if it can further such bilateral cooperation." PICCUTA