MEDIA REACTION: IRAN; BRIC SUMMIT

UNCLAS HONG KONG 001116 DEPT FOR INR/R/MR, INR/IC/CD, I/FW DEPT FOR EAP/PD, EAP/CM, EAP/P DEPT FOR VOA/BRF, TV-WPA WHITE HOUSE FOR NSC PRC POSTS FOR PA AIT USPACOM FOR FOR CIS PD ADVISER E.O. 12958: N/A TAGS: OPRC KMDR KPAO 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