MEDIA REACTION: TAIWAN, TIBET, U.S. TREASURY BONDS

UNCLAS BEIJING 000712

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: TAIWAN, TIBET, U.S. TREASURY BONDS

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Editorial Quotes
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1. TAIWAN

"U.S. media suggest the 'crack down' on export of Chinese weapons"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(03/19): "Recently the U.S. media's 'World
Politics Review' issued an article talking about the world economic
crisis further promoting the export of Chinese weapons. This makes
the U.S. feel uneasy. The article suggested that the U.S. government
should pressure China through arms sales to Taiwan. Chinese experts
pointed out that the number of exported Chinese weapons is unable to
compare with that of the U.S., it is only one tenth of what the U.S.
exports. From 2004 to 2008 the largest exporter of weapons was the
U.S. China only ranks twelfth in the world. What's more, these two
issues are not equal issues. U.S. arms sales to Taiwan are
interferences into China's internal affairs. The U.S. and China have
signed the '8.17 communiqu' where the U.S. promises to gradually
decrease arms sales to Taiwan. However, the U.S. has always betrayed
the communiqu and has not fulfilled its promise."


2. TIBET

"U.S.-China relations: Nation vs. society"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(03/19): "Recently, China's diplomacy is
facing great pressure from the West on issues such as human rights,
environment and Tibet. For example, on the Tibet issue the pressure
comes not only from Western governments but also from various human
rights organizations and interest groups. Because of the political
pressure and public opinion encouraged by these groups, the Western
governments must take a tough stance on the issue, especially the
U.S. government. The U.S. has a long history as a citizenship
society. Its citizenship society has a powerful influence. In the
U.S., there are a large number of NGOs. These NGOs have had the
opportunity to participate in the creations of U.S. diplomatic
process. Meanwhile, the U.S. has established relations through
systems with NGOs.

Some self-initiated behaviors of citizens have actually had the
'invisible hand' of the U.S. government behind them. The National
Endowment for Democracy is one of the most effective systems. The
U.S. government gives certain tasks, which it considers
inconvenient, to social and non-government organizations in the form
of aid. Supporting the Tibet Youth Congress's trouble-making
activities is one of these projects. These organizations receive
funds from the U.S. government and thus are dominated by the
government. Now, diplomacy in many countries is a result of mixed
international and domestic influences. The general picture of 'big
diplomacy', in which all citizens and all societies are involved, is
emerging in the world. Today, relying on foreign affairs departments
to solve various international issues does not seem to be enough.
More and more, a country's diplomatic ability depends on social and
non-government strength and vitality."


3. U.S. TREASURY BONDS

"Obama, how can China believe you?"

The official Xinhua News Agency international news publication
International Herald Leader (Guoji Xianqu Daobao)(03/19): "Obama's
comments concerning the U.S. Treasury bonds are mostly oral
pacifiers. In order to relieve China of its concerns, the U.S. needs
to not only make oral promises but needs to take practical action.
The U.S. could take two actions. The U.S. could increase the
interest rate of its Treasury bonds. This is one way that China can
make more profit, from the interest on U.S. bonds. Or, the U.S.
could establish a system connecting the profits off of the interest
from China's purchase of U.S. bonds, the inflation rate and the
RMB-U.S. dollar exchange rate. The RMB exchange rate has become the
biggest and most influential factor for China in purchasing U.S.
bonds. As long as the U.S. can do the above two things, the security
of China's investment will be well ensured. China should redefine
its identity as the creditor of U.S. bonds, not just the investor.
As the debtor, protecting the security of China's assets is the duty
of the U.S., not the charity that they give China. China should also
manage the U.S.' presupposed expectation that China will not
decrease its purchase of the U.S. bonds."

PICCUTA