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Viewing cable 08BEIJING4432, MEDIA REACTION: THAILAND, FINANCIAL CRISIS, U.S. GOVERNMENT

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Reference ID Created Released Classification Origin
08BEIJING4432 2008-12-04 09:54 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO7190
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4432 3390954
ZNR UUUUU ZZH
R 040954Z DEC 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 1213
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 004432 
 
DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C 
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: OPRC KMDR CH
 
SUBJECT: MEDIA REACTION: THAILAND, FINANCIAL CRISIS, U.S. GOVERNMENT 
TRANSITION 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. THAILAND 
 
"Thai situation still confused" 
 
The official Communist Party People's Daily (Renmin Ribao) (12/03): 
"Thailand's constitutional court recently announced the immediate 
dissolution of three political parties.  Analysts think that even if 
the Thai military takes abnormal measures to seize power and stop 
the political chaos, this will not solve the deeply-rooted conflict 
and confrontation between the two groups and may even make the issue 
more complicated in the future." 
 
2. FINANCIAL CRISIS 
 
a. "Be vigilant when considering restoring the gold standard 
system" 
 
The official Communist Party People's Daily (Renmin Ribao) (12/03): 
"Recent Western opinion has advocated a new Bretton Woods system 
with the U.S. dollar as the core and restoration of the 'gold 
standard' to solve the financial crisis. The appearance of such 
thought is not accidental.  There is a great deal of background. 
The American financial crisis has caused the loss of the U.S. 
dollar's credit.  Therefore, American financial strategists seek to 
use the gold standard system to maintain the global financial system 
led by the U.S.  The reason that the U.S. and Europe choose to use 
gold standard is the fact that the most of gold reservation in the 
world is in their control. The restored gold standard system will 
not be the original gold standard system, but instead a 'partial 
reserve system' partially based on gold.  Therefore, rapid economic 
growth will be relatively limited in the area of currency supply. 
The possible consequences would be: first, due to the economic 
growth of the U.S. and Europe is low, the partial reserve system can 
satisfy their currency supply and will not form serious restriction 
on their economy, but will greatly restrict China, India and other 
developing countries. Second, developing countries have to spend 
lots of foreign reserve to purchase gold. This decision betrays the 
common wish of the international society to substantially reform the 
international financial system." 
 
b. "The financial crisis will substantially improve U.S.-China 
relations" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(12/03): "It is worth asking, how will the 
current financial crisis influence U.S.-China relations?  The 
financial, military, and culture hegemony of the U.S. have been 
impacted by the crisis in an unprecedented manner.  Improvement of 
China's strategic position has come earlier than people had 
expected.  The financial crisis currently faced by the U.S. and 
China is providing a new strategic foundation for both the U.S. and 
China.  Gradually-increasing, mutual economic dependence and 
cooperation will bring substantial improvement to U.S.-China 
strategic relations." 
 
3. U.S. GOVERNMENT TRANSITION 
 
"The experienced officials and Obama: who should listen to whom?" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(12/03): "Obama's new diplomatic and security 
team has created a sensation around the world.  At the same time, 
Obama's ability to dominate those experienced officials is being 
questioned.   Some media indicate that having so many "hawks" seems 
to disavow Obama's promises during the election campaign.  Chinese 
analysts indicate that Obama's biggest appeal during the elections 
was change.  But looking at his newly assigned team, people are 
questioning where the changes are.  Obama's security team is clearly 
a transitional one. After all Obama is new in political basis and 
experience.  He has to rely on the current team of Democrats; the 
assignment of Hillary and two senior military men are the result of 
this background. Obama's foreign policy, including China policy, 
will go through a growing and maturing process." 
 
RANDT