MEDIA REACTION: G20

UNCLAS HONG KONG 000489 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 SUBJECT: MEDIA REACTION: G20 TOPIC: G20 HEADLINES AND EXCERPTS: "Rescue the market before talking about financial reform" The mass-circulation Chinese-language Apple Daily News remarked in an editorial (3/17): "...Recently, there is much 'noise' regarding economic cooperation between countries. A few days ago, Chinese Premier Wen Jiabao said publicly that he was concerned about the stability of U.S. bonds in China's possession. He also cautioned the U.S. administration to keep its promises of not letting China's foreign reserves have any further loss. Such remarks have put U.S. financial officials in a quandary. They have to make high profile guarantees that investments in the U.S. are absolutely safe.... The G20 finance ministers meeting in London last week fully reflected the differences among the countries. Originally, the market expected the finance ministers of different countries to work together to come to agreement on how to stabilize the financial system as well as the economy. Who would have thought that, instead, each country would spend the two days talking about their own concerns...? The international community and large-scale conferences such as the G20 should concentrate on stimulating economies and rescuing financial systems by focusing all resources (including political resources) to boost global economies. Long-term plans and reform should be postponed. Only this way, can the gap between countries be kept from widening. And only this way, can the markets feel that the international community and economic bodies are determined to cooperate to rescue the markets.... For the failing global economy, the most important thing that all countries have to do now is to work together to stimulate the economy. Differences over some long-term reforms and long-term developments should be put aside." "G20 finance ministers have differences but they also have common understanding" The pro-PRC Chinese-language Macau Daily News remarked in an editorial (3/17): "The G20 finance ministers meeting lowered its curtain last weekend. Although many financial institutions called on the U.S. or Europe to set up a 'bad-debt bank', no one mentioned it after the meeting. G20 countries only promised to tackle the bad bank assets and to inject at least US$500 billion into the IMF. Although there were reports before the meeting about differences between the U.S. and Europe over this issue, the outcome of the meeting showed that finance ministers' common understanding is bigger than their differences. In fact, countries cannot afford the cost of differences given the increasingly grim situation.... Judging from the declarations following the meeting, whether dealing with the economic stimulus measures or establishing a new global financial system, they only came up with a framework and principle but there is still no concrete 'roadmap'. In comparison with the Washington summit last November, the atmosphere of the meeting this time has changed. The Washington summit focused on the stability of the financial system, whereas the meeting this time focused on restoring confidence. Finance ministers and central bank governors have shown their common understanding and determination in dealing with the issue of confidence." DONOVAN