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Viewing cable 08TOKYO854, TOKYO MEDIA REACTION - IRAQ AND PROBLEMS IN

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Reference ID Created Released Classification Origin
08TOKYO854 2008-03-28 06:42 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6951
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0854/01 0880642
ZNR UUUUU ZZH
P 280642Z MAR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2963
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY
RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY
RHMFIUU/USFJ  PRIORITY
INFO RUEHFK/AMCONSUL FUKUOKA 6934
RUEHNH/AMCONSUL NAHA 9317
RUEHNAG/AMCONSUL NAGOYA 5397
RUEHKSO/AMCONSUL SAPPORO 7530
RUEHOK/AMCONSUL OSAKA KOBE 0602
RUEHBJ/AMEMBASSY BEIJING 2478
RUEHMO/AMEMBASSY MOSCOW 2191
RUEHUL/AMEMBASSY SEOUL 8519
RUCNDT/USMISSION USUN NEW YORK 9068
RHEHAAA/NSC WASHDC
UNCLAS SECTION 01 OF 02 TOKYO 000854 
 
SIPDIS 
 
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 - IRAQ AND PROBLEMS IN 
FINANCIAL MARKETS 
 
1. LEAD STORIES: Several Friday morning papers front- 
paged the finding by Japanese police that a personal 
article belonging to a missing U.S. sailor was 
discovered in the car of a taxi driver who was stabbed 
to death in Yokosuka on Wednesday. 
 
2. "Iraq War Altered World Picture" The 
business-oriented Nikkei editorialized (3/21): "Because 
of massive spending on the Iraq war, the U.S. budget 
deficit has increased, with Washington now relying on 
investment in U.S. treasury bonds by China and oil 
producers in the Middle East. In the ongoing global 
financial market turmoil triggered by the subprime loan 
crisis in the U.S., some major financial institutions 
in the U.S. and Europe have been rescued with money 
from oil producers. The accelerated depreciation of the 
dollar is shaking its status as a key currency. U.S. 
power has eroded considerably over the past five years, 
but no single country or region has emerged to replace 
the U.S. as a global balancer." 
 
3. "Iraq War Leaves Japan with Heavy Lessons" The 
conservative Sankei's editorial said (3/21): "Many have 
pointed to the miscalculations the U.S. made on Iraq. 
Washington's assertion that the Saddam Hussein regime 
had weapons of mass destruction proved to be invalid. A 
detailed U.S. military report released recently also 
denied the existence of evidence pointing to a link 
between Iraq and al-Qaeda. However, it is too 
simplistic to declare the war in Iraq a 'war without 
cause' based solely on these findings.... The tyranny 
employed by Saddam Hussein was gruesome, as evidenced 
by the execution of politicians he deemed rebellious. 
One cannot argue that the removal of a dictator of a 
lawless state was meaningless." 
 
4. "U.S. Diplomacy Shifts toward Realism" The top 
circulation, moderate Yomiuri's Washington 
correspondent wrote (3/21): "The complex realities of 
the past five years have led to a change in the Bush 
administration's policy of containing 'rogue states' by 
force. Hamstrung by the quagmire in Iraq, Washington 
has had no choice but to shift from idealism to realism 
and from unilateralism to multilateralism. The 
Democratic presidential candidates, who are similarly 
idealistic about a swift U.S. military pullout of Iraq, 
are themselves likely to be forced to adopt a more 
realistic line eventually." 
 
5. "Injection of Public Funds Unavoidable" The liberal 
Asahi contended in an editorial (3/21): "As the 
bankruptcy of a major financial institution would throw 
the global financial markets into chaos, U.S. 
authorities have no option but to take preemptive 
measures. The Federal Reserve Board in an unusual move 
used a special loan approach to bail out Bear Stearns. 
One can claim that public money has already been used 
to avert a crisis. The next focal point will be when 
and how the federal government uses taxpayer money.... 
There will likely be further twists and turns before 
taxpayer money is used. The recent decline in U.S. land 
prices appears to be modest considering the surging 
values of real estate during the housing bubble. We 
must keep in mind that the collapse of that bubble has 
 
TOKYO 00000854  002 OF 002 
 
 
just started, and we should be braced for a cold wind 
from the U.S. for some time." 
 
SCHIEFFER