MEDIA REACTION: IRAN; BRIC SUMMIT

UNCLAS HONG KONG 001116


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SUBJECT: MEDIA REACTION: IRAN; BRIC SUMMIT

TOPICS:

1. Iran

2. BRIC summit

HEADLINES AND EXCERPTS:


1. Iran

"Iran's leaders must stick to the rules"

The independent English-language South China Morning Post said in an
editorial (6/18): "Iran is at a crossroads. A disputed
presidential election has brought its people to the streets in
numbers not seen since the revolution that toppled the late shah
three decades ago. The ruling conservative Islamic clerics,
reformists and factions within both camps are torn about the
nation's future. There can be no certainty of the outcome; events
are unfolding by the day and hour, being shaped by public sentiment,
political maneuvering and the loyalty of the police and military....
Iran has a constitution that guarantees its people rights and
freedoms. The country's leaders have to follow these rules. They
have prevented foreign media from reporting rallies and protests; in
doing so, they are preventing transparency. Violence being sown in
the name of eliciting an outcome has to end and be prevented.
Iran's future can be determined only by Iranians. U.S. President
Barack Obama has taken the right tack, remaining neutral so as to
not to meddle in the nation's affairs. Foreign governments can help
keep the participants honest. But beyond this, their role must only
be to watch and wait."


2. BRIC summit

"China starts to reduce holdings of U.S. treasury bonds; the status
of the U.S. dollar can hardly be shaken"

The independent Chinese-language Hong Kong Economic Journal said in
an editorial (6/18): "...The joint declaration of the BRIC nations
did not mention how to deal with the U.S. dollar and whether the
BRIC nations will set up another reserve currency. This is
different from what the outside world anticipated. However, the
fact that they did not mention them in the declaration does not mean
that they will not do anything. China had started to reduce
holdings of U.S. treasury bonds in April, sparking people's worries
that this would be a long-term trend.... It is commonly understood
among the BRIC countries that the U.S. dollar is at risk. It is
obvious that the four BRIC countries do not have any plans to change
the status quo. The only thing that they can do is to stop the U.S.
dollar from collapsing, to speed up the exchange of currencies and
to gradually get rid of the U.S. dollar in trade clearing.
Currently, they still do not have any plans to replace the status of
the U.S.... The BRIC nations have become powerful emerging
economies. However, even if they join hands, they will not able to
shake up the status of the U.S. dollar. Thus, those saying that the
U.S. dollar may be replaced or that other economies will give up the
U.S. dollar are just wishful thinking..."

DONOVAN