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Viewing cable 09AITTAIPEI386, MEDIA REACTION: G-20

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Reference ID Created Released Classification Origin
09AITTAIPEI386 2009-04-02 08:32 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
VZCZCXYZ0005
RR RUEHWEB

DE RUEHIN #0386 0920832
ZNR UUUUU ZZH
R 020832Z APR 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1279
INFO RUEHBJ/AMEMBASSY BEIJING 9080
RUEHHK/AMCONSUL HONG KONG 0519
UNCLAS AIT TAIPEI 000386 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: G-20 
 
Summary:  Taiwan's major Chinese-language dailies focused April 2 
news coverage on the meeting between U.S. President Barack Obama and 
his Chinese counterpart Hu Jintao at the G-20 meeting in London 
Wednesday; on the ongoing investigations into former President Chen 
Shui-bian and his family's legal cases; and on the year-end mayor 
and magistrate elections.  In terms of editorials and commentaries, 
a column in the pro-unification "United Daily News" discussed the 
possible international political landscape that will unfold in the 
wake of the G-20 meeting.  The article said Obama will have a tough 
trip to Europe this time, as the U.S. leadership position is 
declining.  An op-ed piece in the centrist, KMT-leaning "China 
Times" also discussed the G-20 meeting and the position of U.S. 
currency in the world.  The article said if China decides to dump 
its U.S. currency reserves to safeguard its national interests, it 
will surely shake the foundation of U.S. dollar as the global 
reserve currency.  End summary. 
 
A) "The International Political Landscape Unfolded after the G-20 
[Summit]" 
 
Professor Liu Bi-rong of Soochow University's Department of 
Political Science wrote in his column in the pro-unification "United 
Daily News" [circulation: 400,000] (4/2): 
 
"... To observe the G-20 summit, one not only has to look at the 
impact it generates on international economics but should also pay 
attention to the repercussions it creates on the international 
political landscape in the wake of the summit -- namely, a brand new 
set-up will unfold in the following directions: 
 
"The first direction is the decline of the United States' leadership 
status.  Despite [U.S. President Barack] Obama's repeated emphasis 
on the importance of solidarity among the G-20 nations and his 
constant accentuation, starting from his inaugural speech, that the 
United States is capable of, and interested in, leading the world, 
reactions from other countries remain indifferent.  Both the U.S. 
style of capitalism and Obama's economic stimulus plan have met with 
doubts everywhere in the world.  As a result, unity among the G-20 
nations may be probable, but it surely will not happen under the 
sole leadership of the United States. 
 
"In addition to the G-20 meeting, Obama will also participate in the 
NATO summit and a summit between the European Union and the United 
States, in the hope of rebuilding the United States' leadership in 
the international community.  But it is generally believed that such 
a prospect will be difficult to fulfill.  The European nations 
question the U.S. role in creating the [global] financial crisis and 
ask what right Washington has to tell them what to do.  Not only 
that, but Obama will also feel pressure over his plans to hold 
individual meetings with the leaders of China and Russia during the 
G-20 meetings, because both countries desire to corrode the U.S. 
leadership position. Thus, Obama will have a tough trip this time. 
When U.S. foreign policy objectives are no longer the common 
objectives shared by all, the United States' relations with the 
world will have to be adjusted. ..." 
 
B) "Does the U.S. Currency Retain a Stable Position in the World?" 
 
Assistant Professor Liao Shunyo at Tunghai University's Department 
of Political Science opined in the centrist, KMT-leaning "China 
Times" [circulation: 150,000] (4/2): 
 
"The topic of a global reserve currency will certainly be a focus of 
discussion on the G-20 agenda currently being held in London. ... 
Generally speaking, China still adopts a relatively low-profile 
attitude toward the United States.  In the foreseeable future, when 
China's GDP has yet to reach two-thirds or three-quarters of that of 
the United States, it is unlikely that Beijing will openly challenge 
the United States in terms of global politics or economics.  But 
given [China's recent questioning of] the position of the U.S. 
currency, China has made it very clear that U.S. practices have 
affected China's interests.  Should a similar situation occur again, 
China will definitely take actions (such as dumping its holdings of 
U.S. currency) to safeguard its national interest.  When that 
happens, it will definitely shake the foundation of the U.S. 
currency as the global reserve currency." 
 
YOUNG