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