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Viewing cable 08HONGKONG2060, MEDIA REACTION: U.S. PRESIDENT-ELECT OBAMA AND CHINA;

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Reference ID Created Released Classification Origin
08HONGKONG2060 2008-11-10 09:02 2011-08-23 00:00 UNCLASSIFIED Consulate Hong Kong
P 100902Z NOV 08
FM AMCONSUL HONG KONG
TO SECSTATE WASHDC PRIORITY 6207
INFO WHITE HOUSE WASHDC
USDOC WASHDC
AMEMBASSY BEIJING 
AMCONSUL SHANGHAI
AMCONSUL GUANGZHOU 
AIT TAIPEI 0098
CDR USPACOM HONOLULU HI
UNCLAS HONG KONG 002060 
 
 
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: U.S. PRESIDENT-ELECT OBAMA AND CHINA; 
FINANCIAL TSUNAMI; U.S. PRESIDENTIAL ELECTION 
 
TOPICS: 
1. U.S. president-elect Obama and China 
2. Financial tsunami 
3. U.S. presidential election 
 
HEADLINES AND EXCERPTS: 
 
1. U.S. president-elect Obama and China 
 
"China has to be high on the Obama agenda" 
 
The independent English-language South China Morning Post commented 
in an editorial (11/10):  "U.S. president-elect Barack Obama has 
been gradually responding to the congratulatory messages from 
overseas leaders.  He would appear to be getting back to foreign 
counterparts in the order of importance he perceives their countries 
to be to his international policy agenda.  On Thursday, he made 
phone calls to Australia, Britain, Canada, France, Germany, Israel, 
Japan, Mexico and South Korea and on Friday to Egypt, Italy, 
Pakistan, Poland, Saudi Arabia and Spain. Surprisingly, despite the 
significance of China to the U.S. and the world, the conversation 
with President Hu Jintao came only on Saturday, the same day as a 
call to Russia's head of state....  Mr. Hu rightly told the senator 
the two nations should accommodate each other's concerns. Senator 
Obama reportedly said that strong Sino-U.S. ties were good for the 
world.  The leaders would seem to have got their relationship off on 
a sound footing.  It is important that the president-elect now sets 
aside what was said in the heat of electioneering and work closely 
with his counterpart to nurture and build ties beneficial to both 
sides and the world." 
 
"China and the U.S. should enhance cooperation to resolve the 
financial crisis" 
 
The working-class Chinese-language Sing Pao Daily News wrote in an 
editorial (11/10):  "Chinese President Hu Jintao had a telephone 
conversation with Obama, the U.S. President-elect.  Apart from 
congratulating him, Hu also discussed with Obama the development of 
Sino-U.S. relations and the strategy to deal with the financial 
tsunami....  Now, the global economy is in a predicament.  The 
impacts of the financial tsunami have not yet ended.  Western 
politicians who have a vision understand that China can play an 
important role in assisting the U.S. to overcome this 
once-in-a-century financial crisis.  Chinese leaders know that the 
financial crisis has gravely affected worldwide economic development 
and people's livelihood.  China is willing to lay down forceful 
measures with other countries to avoid a global economic recession." 
 
 
2. Financial tsunami 
 
"Obama should introduce an 'extra large' bailout plan" 
 
The mass-circulation Chinese-language Apple Daily News remarked in 
an editorial (11/10):  "...Facing such a grim economic situation, 
Obama had a meeting with several heavy-weight economic consultants 
last Friday.  After the meeting, he pledged that he would adopt 
contingency measures, including a second-round U.S.$170 billion 
economic stimulus package, to stimulate the economy after taking 
office.  He would also use part of the U.S.$700 billion bailout plan 
to assist industries other than the financial industry, especially 
the auto industry, to avoid the closure of the three car-making 
giants which may lead to tens of thousands of workers losing their 
jobs.  Details of Obama's U.S.$170 billion economic stimulus plan 
are not yet known.  However, judging from the flagging U.S. economy, 
the second round economic stimulus plan is not only necessary, but 
the scale of the plan must also be increased in order to avoid a too 
quick and too deep economic recession....  The election of Obama 
reminds the American people that it may take a long time to boost 
the economy.  Since the economic recovery takes time, Obama should 
seize the opportunity to introduce an 'extra large' scale economic 
stimulus package after taking office so as to reduce the 'pain' of 
the economic recession." 
 
"Obama can deliver on a fairer financial framework" 
 
The independent English-language South China Morning Post said in an 
editorial (11/9):  "No one is more aware than U.S. president-elect 
Barack Obama of the need for him to hit the ground running.  Despite 
the overwhelming support he enjoys at home and abroad, Senator Obama 
realizes he has no time to enjoy a honeymoon amid the global 
financial crisis.  One reason people are hopeful is that he is seen 
as a leader who can build an international consensus and serve as a 
catalyst in helping to contain the economic meltdown.  In a 
globalized economy, a crisis of this kind requires global 
co-operation.  Senator Obama has made it clear he understands that 
the economic crisis is the most urgent challenge confronting him by 
convening his top economic advisers for his first policy meeting 
after his election victory on Tuesday.  He sent out an unmistakable 
message when he lined them up behind him at his first post-election 
news conference and vowed to act "swiftly" to confront the crisis 
head-on as soon as he took office....  Senator Obama's team should 
work with summit participants to set in motion agreements that can 
be obtained farther down the road.  A Bretton Woods 2 that produces 
a fairer, more stable and efficient global framework is possible in 
Barack Obama's first term." 
 
"U.S. economic policy is not yet known; stocks will have ups and 
downs" 
 
The center-left Chinese-language Sing Tao Daily News commented in an 
editorial (11/9):  "The U.S. presidential election has just 
finished.  The jubilation of the investment market also came to an 
end.  Media focus now returns to the economy.  Global stock markets 
plunged again.  Though Obama has not yet taken office, he 
immediately tried to keep public expectations under control.  He 
anticipated that the U.S. problem could not be resolved in one term. 
 If Obama is right, he is indirectly saying that global investment 
prospects will be dim in the next two to three years.  If this 
situation really comes true, even though Obama will not step down 
halfway, he may not be re-elected....  If Obama only focuses on the 
idea of evening-up wealth distribution and if he relies on 
increasing taxes to solve problems, it will further undermine 
investors' confidence.  And it will not be surprising that the 
economic recession cannot be resolved within one term.  On the 
contrary, if Obama can effectively adjust the huge U.S. resource 
base, it is believed that the time needed to alter the unfavorable 
situation can be largely shortened.  However, there will at least be 
a period of uncertainty between laying down an economic policy and 
putting it into practice.  Before the market receives any 
information about the polices of the new administration, the stock 
market will feel uneasy.  It may have ups and downs.  Thus, 
investors must get psychologically prepared for the roller-coaster 
ride." 
 
"Obama will face challenges" 
 
The pro-PRC Chinese-language Macau Daily News remarked in an 
editorial (11/9):  "The U.S. presidential election is over.  America 
will welcome the 'Obama era.'  Obama has been elected when the U.S. 
is facing economic difficulties internally and is involved in two 
wars externally.  People around the world are generally concerned 
about whether Obama can form his cabinet smoothly, turn his campaign 
platform into feasible domestic and foreign policies, and lead the 
U.S. out of its predicament to open up a new future for the U.S.... 
Due to the domestic and external situation of the U.S., boosting the 
national economy and safeguarding national security are the two 
major tasks for Obama, which will become the core of his domestic 
and foreign policies." 
 
3. U.S. presidential election 
 
"The gargantuan task" 
 
The independent English-language South China Morning Post's foreign 
editor, Peter Kammerer, wrote in the 'Insight' page (11/7):  "So 
those of us who plumped for Barack Obama to be the man have had our 
day.  Life is indeed sweet, we are patting one another on the back 
and basking in the fact that George W., Dick and that lot will soon 
be out of the White House.  In their place will be a man of purpose, 
understanding, intelligence, charisma and, yes, color. But, before 
we get too carried away in our belief that he is going to solve all 
our problems, let's face a few truths.  The world is in a mess, 
thanks largely to outgoing President George W. Bush and his cohorts. 
 Not for seven decades has there been such financial turmoil; years 
will pass before there is a recovery.  Instability abounds: Pakistan 
is on the verge of implosion and Afghanistan and Iraq are far from 
the stability that was promised with the US invasions.  Al-Qaeda and 
its terrorist friends remain primed for mayhem.  North Korea still 
has nuclear weapons and Iran seems likely to get them no matter 
what.  A deepening rift has been opened with Russia, and China 
remains distrustful of American intentions....  America's electing 
its first black president has immeasurable worth for the cause of 
non-whites the world over.  In Senator Obama, ethnic groups sense 
that racial equality has dawned. He must capitalize on this gain to 
get his country and the world working together again." 
 
"Waiting Obama to create a miracle by his new policies" 
 
The mass-circulation Chinese-language Apple Daily News remarked in 
an editorial (11/7):  "...While the American people and indeed the 
whole world are waiting for Obama's leadership in fighting the 
financial tsunami, can Obama respond quickly in his personnel 
arrangements, in adjusting policies, and in responding quickly to 
domestic and foreign issues so as to maintain the public confidence? 
 Such responses will not only determine whether his popularity will 
face a sharp fall, like Lee Myun-bak and Ma Ying-jeou, but will also 
determine whether he can create a miracle through his new policies 
and whether he will succeed in fighting the financial crisis.  Obama 
will not take office until January 20 next year.  The financial 
tsunami will not quiet down for two months to wait for Obama's team 
to beat it.  Time waits for no man.  Obama will, therefore, need to 
show some performance at the G20 international financial summit in 
Washington next week." 
 
"The executive and legislative branches act in unison; Obama's 
policies will face no obstacles" 
 
The independent Chinese-language Hong Kong Economic Journal 
commented in an editorial (11/7):  "...After the presidential 
election, the Democratic Party has control over both the White House 
and the Congress.  The President will face no obstacles in 
implementing his policies.  Judging from this angle, as long as 
Obama can clearly suggest a bailout measure that is acceptable to 
the financial market, the stock market should have a positive 
response.  Sources said that after Obama takes office, his first 
budget will continue to be a deficit budget.  In order to rescue the 
flagging economy, he may listen to the call of the economists to 
inject at least U.S.$150-500 billion to boost the economy, create 
jobs, and encourage American people to keep spending....  The 
non-partisan research institute, Tax Policy Centre, reported that 
Obama's tax policy will raise the U.S. deficit to U.S.$3 trillion in 
the next decade.  The situation will be more serious than during the 
Bush administration.  After the victory of Obama, House Speaker 
Nancy Pelosi pledged to introduce several economic stimulus plans in 
the next few months.  When the executive and legislative branches 
are under the control of the Democrats, all plans will get passed 
smoothly.  The U.S. administration's spending will endlessly 
increase." 
 
DONOVAN