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Viewing cable 09BEIJING1638, MEDIA REACTION: IRAN, NORTH KOREA, AMERICAN BONDS

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Reference ID Created Released Classification Origin
09BEIJING1638 2009-06-17 08:33 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO0984
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1638 1680833
ZNR UUUUU ZZH
R 170833Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4593
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 001638 
 
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 PREL ECON
 
SUBJECT: MEDIA REACTION: IRAN, NORTH KOREA, AMERICAN BONDS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. IRAN 
 
"Iran falls into a suspected color revolution" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(06/17): "Two Chinese experts expressed that 
because Iran has a supreme leader with high authority it is hard to 
compare it to the former Soviet states where there were color 
revolutions.  Iran is different from Central Asian countries which 
had color revolutions.  It is not attached to the west, relatively 
distant to the west and isolated from them.  The west has a hard 
time infiltrating Iran to influence it.  At the same time because of 
religious differences Iran is vigilant about foreign cultures. 
Iran's situation is not out of control yet.  The former Soviet Union 
has had color revolutions due to the belief vacuum after its 
disintegration.  However, Iran, who has rich religious culture, is 
completely different.  Western media has started to predict a 
chaotic future for Iran." 
 
2. NORTH KOREA 
 
"The North Korea nuclear crisis has not hit bottom yet" 
 
Elite Reference (Qingnian Cankao), a newspaper affiliated to the 
official Communist Youth League China Youth Daily (06/17): "The new 
UN Security Council resolution has several new measures.  The 
criticism against North Korea is at the most severe level.  The 
resolution has clearly enlarged the scope of sanctions on North 
Korea.  Sanction measures are clearly defined.  The financial 
sanctions are stricter.  However checking suspicious goods on ships 
exiting or entering North Korea still needs to gain agreement from 
the registered country.  It has considered North Korea's feelings, 
which shows international society does not intend to enlarge 
compulsive sanctions on North Korea.  Besides, the resolution also 
has rejected a U.S. proposal - if the situation deteriorates, the UN 
charter No. 42 will be automatically used, which is the 
authorization of military actions.  A Foreign Ministry Spokesperson 
said political and diplomatic measures are the only correct way to 
seek resolution of the issue.  The Obama administration currently 
seems to still want to solve the issue through diplomatic measures. 
The Assistant Defense Secretary said the U.S. will maintain the Six 
Party Talks framework and maintain discussions with other parties 
even if it conducts bilateral dialogue with North Korea.  This shows 
the U.S. policy towards North Korea still has maneuvering room." 
 
3. AMERICAN BONDS 
 
"From G8 Finance Ministry summit to BRIC summit: China has to find 
its own way to get rid of the reliance on U.S. dollars" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(06/17): 
"Russia's attitude has made a complete turn from promoting 
'super-sovereign currency' to advocating the U.S. dollar.  An expert 
from the China Academy of Social Science mentioned that it is very 
hard to promote international currency because there is no country 
that sincerely promotes it, but only do it for benefits.  Without 
support from a sovereign government, an international currency 
cannot be promoted.  We should not expect too much of an 
international currency.  He also analyzed the reason Russia started 
to support the U.S. dollar; the recent depreciation of the U.S. 
dollar and increase in bulk commodity prices has a positive 
influence on Russia's energy exports.  So Russia's U.S. dollar 
income is increasing.  He also mentioned that currently China 
decreased its holding of U.S. treasuries is not to make preparations 
for purchasing IMF bonds.  After China decreased its holdings of 
treasuries it will likely switch to other types of U.S. bonds.  No 
matter whether the U.S. dollar falls or increases, what China really 
cares about is the real purchasing capabilities behind foreign 
reserves.  Using loans in exchange for oil with Brazil and Russia is 
holding such goals.  The summit is meaningful if it can further such 
bilateral cooperation." 
 
PICCUTA