MEDIA REACTION: SECRETARY CLINTON'S VISIT, FINANCIAL

UNCLAS SECTION 01 OF 02 BEIJING 000467 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: SECRETARY CLINTON'S VISIT, FINANCIAL CRISIS -------------- Editorial Quotes -------------- ¶1. SECRETARY CLINTON'S VISIT a. "One sentence of Secretary Clinton's is worth further contemplation" The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(02/24): "Secretary Clinton said, during her trip to Japan that 'through strengthening relations with our traditional Asia allies and establishing partnerships with newly immerging countries, the U.S. could set up a worldwide network that would help the U.S. solve issues that it is unable to solve by itself.' This statement means that the U.S. will strengthen its ties to its old allies, Japan and South Korea. The U.S. is looking for a new type of partnership with China and Indonesia. They are looking for more friends and partners. The U.S. needs the help other countries solve some by using its leadership. Secretary Clinton's visit to Asia has shown the soft side of new government's diplomacy; and their intent to look for cooperation. It has a positive meaning for the development of Asia Pacific area. But people still wonder what a 'traditional alliance' implies and whether it is driven by a Cold War mentality. People also wonder whether or not the Obama administration can accept an 'equal partnership' and even the 'democratization of international relations.'" b. "Secretary Clinton's eagerness to borrow money arouses attention" The official Communist Party international news publication Global Times (Huanqiu Shibao)(02/24): "Many Western MEDIA have concluded that the purpose of Secretary Clinton's visit to China was to promote the sale of the U.S. debt in China. Chinese experts indicate that Secretary Clinton was weakening the issues of human rights and strengthening economic issues. This reflects that the Obama administration's idealism about the U.S.-China relationship is decreasing and that they are becoming more practical. However China did not respond as to whether or not it will increase its holding of American debts. Chinese experts indicate that too much high profile promotion by Secretary Clinton on the American debts may arouse antipathy. China will decide based on its own interests. It is welcome that Clinton has weakened the human rights disputes. But the topic still exists. Once our economics improve, the U.S. will come back to the human rights issues and China should be ready for that." ¶2. FINANCIAL CRISIS a. "The depreciation on the Chinese Yuan = feeding America" 21 Century Business Herald (21Shiji Jingji Baodao) under Guangdong 21 century publishing company Ltd. Commented (02/24): "Over the last decade, the Chinese people have often worked for foreigners and in so doing, they have been gaining foreign exchange. Foreign exchange can be used to buy goods and services, but if you use it to buy foreign debt, then you give up the right to buy services. In this way, the Chinese people have served the foreigners for free while bearing their inflation. Obama is promoting a stimulus plan in the trillions of U.S. dollars. The USD has been and will continue to depreciate in the future. This means that the foreign exchange and the debt that the Chinese people hold will surely depreciate as well. Because the notes are worthless and the Chinese people are fascinated with collecting as many as possible, it is just like burning money...it is worthless. The Chinese government should not over control the RMB and Chinese people shouldn't serve the foreigners for free." b. "American-style capitalism will not end (issued by the Washington Observer)" Elite Reference (Qingnian Cankao),a newspaper affiliated to the official Communist Youth League China Youth Daily (02/24): "The U.S. has been receiving all the criticism for the financial crisis, and therefore people doubt the American style of liberal capitalism. Many countries' economic rescue measures have has a strong socialist slant. However, the financial crisis is not the end of liberal capitalism. During the formation of the crisis, it is the government who failed its obligations to urge banks to maintain their basic interest in economic activities, and to ignore Wall Street's leverage operation, which is as high as 32 times the normal rate. It is the government who should be blamed for failing to provide a reasonable environment for a normal operation of the capitalistic market economy. Obama's economic stimulus plan seems to have forgotten that private companies, not only gain success, but should also pay for their mistakes. Liberal entrepreneurial spirit is where the future of American economy lies, which is mostly suitable to BEIJING 00000467 002 OF 002 develop in the world of capitalism. Capitalism still suits the U.S. the most." PICCUTA