TOKYO MEDIA REACTION - CHINA

UNCLAS TOKYO 001242

SIPDIS

STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - CHINA


1. LEAD STORIES: Wednesday morning's Asahi gave top play to the
disclosure by several sources close to the DPRK leadership that
North Korean leader Kim Jong Il has selected his third son Kim Jong
Un as his heir.


2. "Treasury Secretary Shows 'Low Key' Attitude in China" The
conservative Sankei wrote from Beijing (6/3): "Throughout his trip
to China, Treasury Secretary Geithner stressed the importance of
Sino-U.S economic cooperation and the security of U.S. Treasury
bonds while refraining from criticizing China. His 'softening'
approach toward China was obvious. The first U.S.-China economic
dialogue by high-ranking officials under the Obama administration
left the impression that the Chinese are the ones who hold the
initiative [in bilateral economic relations]."


3. "Geithner Stops Short of Criticism on Issue of Yuan" A
correspondent for the business-oriented Nikkei reported from Beijing
(6/3): "By briefing Chinese leaders on the Obama administration's
policy of halving the U.S. budget deficit in four years, Treasury
Secretary Geithner effectively explained this position as a U.S.
policy commitment to China. The Secretary also did not take up the
issue of the Chinese yuan. His China trip symbolized that the focus
of attention in bilateral economic relations has shifted from the
issue of the Chinese yuan to U.S. Treasury bonds, and that China is
now seizing the initiative."


4. "Political Reform Imperative for Qualification as a Great Nation"
The liberal Asahi editorialized (6/3): ".... [During her recent trip
to China] House Speaker Pelosi did not address the issues of human
rights and Tibet, saying that global warming was the major topic for
discussion. More problems that require China's deeper engagement
have been emerging, such as North Korea's nuclear development, in
addition to the issues of the global economy and global warming. It
would be extremely unfortunate if there were a sentiment in which
foreign countries refrain from criticizing or offering advice on
Chinese domestic politics out of deference to China.... Political
reform must be undertaken sooner or later. It might be a painful
process, but China is expected to become a dignified and
well-balanced neighbor."


5. "China Still Grappling with Aftermath of Tiananmen Square" The
business-oriented Nikkei insisted in an editorial (6/3): "Following
the Tiananmen Square incident, China became internationally
isolated. The U.S., Europe, and Japan called for democratization and
improvement on the human rights front by imposing sanctions.
However, pressure from these nations has weakened in view of the
rise of Chinese economic power and out of deference to the Chinese
Communist Party. The U.S. is in a situation under which its economic
reconstruction will be difficult without China's purchase of U.S.
Treasury bonds.... China's international presence will continue to
grow. The Chinese Communist Party's current position of being
negative about democratization and human rights could have negative
effects on the world."


ZUMWALT