MEDIA REACTION: U.S. POLICY, NORTH KOREA, CHINA'S MILITARY

UNCLAS SECTION 01 OF 02 BEIJING 000248 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 SUBJECT: MEDIA REACTION: U.S. POLICY, NORTH KOREA, CHINA'S MILITARY -------------- Editorial Quotes -------------- ¶1. U.S. POLICY a. "Obama's stance that China has manipulated their exchange rate has changed from his forefront stance to his behind-the-scenes stance" The official Xinhua News Agency international news publication International Herald Leader (Guoji Xianqu Daobao)(02/02): "Geithner has once again brought people's attention to the RMB exchange rate issue. The changing attitude by American officials concerning this issue is thought-provoking. Considering Obama's earlier statements on this issue, Geithner's stance has in fact neutralized Obama's stance. Chinese analysts indicate that Geithner has shifted Americans' attention and tried to move America's responsibilities onto China's shoulders, therefore avoiding their responsibilities. However, American politicians indicated the possibilities of a trade war due to the Americas making an issue of the RMB exchange rate. Thus the U.S. has been adjusting its stance. Later, Obama spoke with Chinese leaders and mentioned that the U.S. is expecting to have more cooperation with China in order to help stabilize the World economy and deal with the financial crisis. This shows that the U.S. realizes that their irresponsible response to this issue is not good for global economic recovery." b. "Crisis should make U.S. do some soul-searching" The official English-language newspaper China Daily commented (02/02): "China once again becomes the scapegoat for the ongoing global financial crisis, at a time when the U.S. economic crisis continues to deteriorate. Their groundless argument, however, was used by some politicians in Washington as a tool with which to shirk their own responsibilities. ...It is completely a ridiculous conclusion both in time order and in causal relationship. It is known that the U.S. has suffered a deposit shortage for a long time. ...the nation had long suffered a foreign reserve insufficiency. China's foreign reserve growth has been mainly pushed by its trade surplus and investment from other countries. ...China's foreign reserve investment has also provided the U.S. economy with similarly needed fund resources. ...This is the responsibility the U.S. administration should undertake. ...After the 1997 Asian financial crisis, some emerging Asian economies, including China, began to reinforce their foreign reserves and domestic bank deposits. ...The increased international and domestic savings by Asian nations after the 1997 crisis greatly helped raise their ability to fend off a financial crisis. Politicians in Washington are clearly taking an unwise step. ...Washington's policy of eluding responsibility will dampen Asian nations' enthusiasm to continue to buy U.S. national debt." ¶2. North Korea "North Korea warns South Korea and makes the world nervous" The official Communist Party international news publication Global Times (Huanqiu Shibao)(02/01): "North Korea has recently, unilaterally announced that it is abolishing all agreements with South Korea concerning the avoidance of political and military confrontations. If there is to be a conflict between these two countries, eastern Asia and the rest of the world are likely to feel unprepared. All the large powers influence the peninsula and therefore their policies can be vague. The situation on the peninsula will hardly endure any change. Analysts point out that the tough stance of North Korea is related with major measures by the Lee Myung Bak's government to adjust the mild policies of North Korea. What's more, the U.S. and Japan are unwilling to admit North Korea and officially announce the end of North Korean war, which has made North Korea feel very unsafe. Any changes on the peninsula will greatly matter to their neighboring countries. The U.S. association on foreign relations has suggested that the Obama administration closely cooperates with the neighboring countries of the peninsula should any incidents happened." ¶3. CHINA'S MILITARY "The West exaggerates the first year of the Chinese Military" The official Communist Party international news publication Global Times (Huanqiu Shibao)(02/01): "A British think-tank has issued a sensational report stating that 2009 will be the first year of China's global military might. At the same time, Secretary Gates has mentioned that the U.S. military is making full efforts to deal with China's military threat. In fact, China's development of military power is moving forward on pace with its financial development. China's new developments do not seek to distinguish it as a newly rising military power. Some Western scholars have mentioned that BEIJING 00000248 002 OF 002 China's ability to send war ships to the Somali coast indicate that it is very militarily powerful. Chinese military experts indicate that China's introduction to the international stage is aimed at playing a role in fulfilling peace-keeping missions. This report by the Western think-tank is very subjective and exaggerative. China's military power is still under development; it does not possess any aircraft carriers and therefore its navy is unable to reach out to the world. If the 'first year of China's military might' refers to China starting a 'canon-fleet diplomacy', it is a wrong statement. China will never have such a 'first year.' China will insist on appropriate development in military strength, but its principle of not taking a hegemonic position will never be shaken." PICCUTA