MEDIA REACTION: SECRETARY CLINTON'S VISIT, FINANCIAL

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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

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Editorial Quotes
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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

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develop in the world of capitalism. Capitalism still suits the U.S.
the most."

PICCUTA