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Viewing cable 09BEIJING1677, MEDIA REACTION: IRAN, U.S. ECONOMICS, U.S.-CHINA MILITARY

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Reference ID Created Released Classification Origin
09BEIJING1677 2009-06-19 08:08 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO3412
RR RUEHGH RUEHVC
DE RUEHBJ #1677 1700808
ZNR UUUUU ZZH
R 190808Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4676
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 001677 
 
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, U.S. ECONOMICS, U.S.-CHINA MILITARY 
RELATIONS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. IRAN 
 
"Five days in Tehran - The protests will have a hard time 
influencing Ahmadinejad" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(06/19): "If the protests expand 
further, Mousavi's support for the protests is not wise.  It is a 
confrontation with the highest leaders of the country.  Although the 
current Iranian administration agreed to recount the disputed 
ballots many observers think the result of the election cannot be 
changed.  If the current administration suppresses the protests by 
force it will trigger much anger from the public and it is obvious 
that Ahmadinejad does not want to see that either.  Iran has begun 
diverting attention by accusing other countries of interfering in 
their election.  They protest that the statement issued by American 
officials has interfered in Iran's domestic politics.  The U.S. 
State Department denied this accusation." 
 
2. U.S. ECONOMICS 
 
"The new financial prescription by Obama to reign in big financial 
actors and help the weak groups" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(06/19): "On 
June 17th, Obama administration officially submitted the proposal of 
financial supervision reform to the Congress.  This is the first 
time for the U.S. government to officially mention how to deal with 
the Government Sponsored Enterprise (GSE) in the future. However, 
this proposal doesn't clarify the road map of GSE reform.  It only 
points out 6 feasible methods.  This reform plan aims at preventing 
system risks and protecting consumers.  In this proposal, there is 
no final judgment on many important areas of supervision.  It will 
take quite a time for the Congress to approve this proposal and many 
difficulties will be confronted.  From this proposal, we could see 
that the financial actors on the Wall Street are too big and make 
the government fear they will break down, which will cause 
uncontrollable panic in the market. Nevertheless, when Obama 
emphasizes the supervision agencies should take another 
responsibility, which is to judge the necessary crisis moments and 
provide assistance to financial actors, it actually stimulates banks 
to expand the scale of their assets. If the content of the proposal 
is realized, senior banking officials, investors and stakeholders 
will be very happy and think that there is no need to be afraid of a 
financial crisis any more since the government will always pay the 
bill.  Thus, they will all aim at generating short-term profits. 
This will further weaken the self-control and risk management of the 
shareholders.  Another concept in this proposal is to protect the 
interests of ordinary consumers.  The rise in the default rate is 
the fuse of this financial crisis.  The reason for it is consumers 
have nothing to do when they are cheated.  One important request 
from the future supervision agencies is banks must provide enough 
and clear information of products to customers." 
 
3. U.S.-CHINA MILITARY RELATIONS 
 
"Secretary of Defense Gates says the U.S. has enough naval and air 
force resources to fight against China" 
 
Elite Reference (Qingnian Cankao), a newspaper affiliated to the 
official Communist Youth League China Youth Daily (06/19): "Recently 
many Chinese websites reported that an American Lieutenant General 
Bruce Wright commented in Japan that Chinese air force modernization 
has made good progress and U.S. fighters are incapable of invading 
Chinese air space.  However this general retired last April, so why 
did he receive an interview at a U.S. base in Japan?  The U.S. Air 
Force in the western Pacific is not that weak.  A Hong Kong website 
that broke the news and it was quoted by many mainland websites. 
Currently the Korean peninsula is very tense, thus any move of the 
U.S. military will arouse attention.  Besides, the U.S. 
intentionally devalued its military power, which meets many people's 
appetites.  The U.S. military in fact uses 'raptor' and 'stealth' 
fighters to deter the Asia-Pacific region.  As an American expert 
indicated, at least for the next four or five years, the U.S. has 
enough naval and air power to maintain its leadership in the Pacific 
and the air space above it." 
 
PICCUTA