P 090940Z FEB 09
FM AMCONSUL HONG KONG
TO SECSTATE WASHDC PRIORITY 6850
INFO WHITE HOUSE WASHDC
USDOC WASHDC
AMEMBASSY BEIJING 
AMCONSUL SHANGHAI
AMCONSUL GUANGZHOU 
AIT TAIPEI 0192
CDR USPACOM HONOLULU HI

UNCLAS HONG KONG 000246 
 
 
DEPT FOR INR/R/MR, INR/IC/CD, I/FW 
DEPT FOR EAP/PD, EAP/CM, EAP/P 
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USPACOM FOR FOR CIS PD ADVISER 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR
SUBJECT: MEDIA REACTION: US ECONOMY; US-RUSSIA RELATIONS 
 
TOPICS: 
¶1. U.S. economy 
¶2. U.S.-Russia relations 
 
HEADLINES AND EXCERPTS: 
 
¶1. U.S. economy 
 
"Using 'half a bucket of water' to save the economy may result in a 
missed opportunity" 
 
The independent Chinese-language Hong Kong Economic Times commented 
in an editorial (2/9):  "It is believed that U.S. President Obama's 
economic stimulus plan will be passed in the Senate after the plan 
is scaled back.  Despite the bad news in the swelling unemployment 
rate, the Dow Jones Index rose 210 points on the news of the likely 
approval of the stimulus plan.  Such optimism may soon be vanquished 
by the unemployment rate and the worsening of the economy....  Obama 
stressed the economic stimulus plan must be implemented quickly. 
The plan should not only be fast but also strong and powerful.  At 
present, his plan is only 'half a bucket of water'.  People worry 
that he may miss the golden opportunity to rescue the economy.  This 
will only lead him and the U.S. economy into a more severe 
predicament." 
 
"If protectionism comes again, the U.S. will burn itself" 
 
The independent Chinese-language Ming Pao Daily News had an 
editorial (2/8):  "After the Democratic Party won the U.S. 
Presidential election and control of the House and Senate, some 
people in the international community immediately feared that 
protectionism would rise again during Obama's tenure as indicated by 
the record of the Democratic Party in the past....  It is too early 
to tell if Obama's move can make Europe, Japan and China believe 
that the U.S. will not launch trade protectionism.  However, people 
are concerned that financial protectionism may extend to another 
battlefield.  If developed countries draw their capital from the 
emerging markets to subsidize their domestic industries, emerging 
countries, which are begging for money, may suffer heavy blows. 
Since 'financial protectionism' is not the same as trade disputes, 
which can be resolved through the arbitration of the WTO, emerging 
countries may introduce trade protectionism in retaliation.  If that 
happens, global financial recovery will be nowhere in sight." 
 
"Obama has to maintain his popularity for the sake of the whole 
world" 
 
The independent Chinese-language Hong Kong Economic Times remarked 
in an editorial (2/7):  "U.S. President Obama's USD 800 billion 
economic stimulus plan has encountered many twists and turns which 
again face strong resistance from the Republican Party in the 
Senate.  Less than twenty days in office, Obama has repeatedly run 
up against obstacles.  His political power, energy and the public 
confidence in him are diminishing.  If he cannot manage the 
situation and maintain the public confidence in him, he will only 
face more difficulties in his effort to rescue the economy....  It 
is too early to say Obama is not qualified for the job judging from 
the obstacles that he has encountered in his less than twenty days 
in office.  Those hindrances may even help him learn about his 
shortcomings quickly so that he can make improvements.  Fighting the 
financial tsunami is a war of confidence.  It is a war against time. 
 There is no time for Obama to learn.  Thus, he must quickly manage 
the situation, maintain his high popularity and implement strong 
measures to prevent the U.S. and the global economy from a more 
severe recession." 
 
¶2. U.S.-Russia relations 
 
"Russia gains the upper hand in the competition with the U.S. for 
Central Asia" 
 
The pro-PRC Chinese-language Macau Daily News remarked in an 
editorial (2/8):  "... Kyrgyzstan closed the U.S. air base in Manas. 
 The move signals that Russia has won a temporary victory in the 
fight to remove U.S. military presence in Central Asia.  The U.S. 
loses its Manas air base for two major reasons.  First of all, the 
U.S. has to have more engagement in Afghanistan after the new 
administration took office.  This will pose great challenges to the 
situation in the whole Central Asia, especially a great challenge to 
Russia's interests there.  Russia cannot but take action.  The other 
reason is that the U.S. has stepped up setting up military bases in 
countries like Georgia and it also plans to include Ukraine in 
NATO's partnership action plan.  Judging from these moves, the 
contests between Russia and the U.S. in Central Asia, and especially 
in the Commonwealth of Independent States, will be a long-lasting 
process." 
 
DONOVAN