VZCZCXRO3607
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0712 0780931
ZNR UUUUU ZZH
R 190931Z MAR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 2969
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 000712 
 
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: TAIWAN, TIBET, U.S. TREASURY BONDS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. TAIWAN 
 
"U.S. media suggest the 'crack down' on export of Chinese weapons" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(03/19): "Recently the U.S. media's 'World 
Politics Review' issued an article talking about the world economic 
crisis further promoting the export of Chinese weapons. This makes 
the U.S. feel uneasy. The article suggested that the U.S. government 
should pressure China through arms sales to Taiwan. Chinese experts 
pointed out that the number of exported Chinese weapons is unable to 
compare with that of the U.S., it is only one tenth of what the U.S. 
exports.  From 2004 to 2008 the largest exporter of weapons was the 
U.S. China only ranks twelfth in the world. What's more, these two 
issues are not equal issues. U.S. arms sales to Taiwan are 
interferences into China's internal affairs. The U.S. and China have 
signed the '8.17 communiqu' where the U.S. promises to gradually 
decrease arms sales to Taiwan. However, the U.S. has always betrayed 
the communiqu and has not fulfilled its promise." 
 
¶2. TIBET 
 
"U.S.-China relations: Nation vs. society" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(03/19): "Recently, China's diplomacy is 
facing great pressure from the West on issues such as human rights, 
environment and Tibet. For example, on the Tibet issue the pressure 
comes not only from Western governments but also from various human 
rights organizations and interest groups. Because of the political 
pressure and public opinion encouraged by these groups, the Western 
governments must take a tough stance on the issue, especially the 
U.S. government. The U.S. has a long history as a citizenship 
society. Its citizenship society has a powerful influence. In the 
U.S., there are a large number of NGOs. These NGOs have had the 
opportunity to participate in the creations of U.S. diplomatic 
process. Meanwhile, the U.S. has established relations through 
systems with NGOs. 
 
Some self-initiated behaviors of citizens have actually had the 
'invisible hand' of the U.S. government behind them. The National 
Endowment for Democracy is one of the most effective systems. The 
U.S. government gives certain tasks, which it considers 
inconvenient, to social and non-government organizations in the form 
of aid. Supporting the Tibet Youth Congress's trouble-making 
activities is one of these projects. These organizations receive 
funds from the U.S. government and thus are dominated by the 
government. Now, diplomacy in many countries is a result of mixed 
international and domestic influences. The general picture of 'big 
diplomacy', in which all citizens and all societies are involved, is 
emerging in the world. Today, relying on foreign affairs departments 
to solve various international issues does not seem to be enough. 
More and more, a country's diplomatic ability depends on social and 
non-government strength and vitality." 
 
¶3. U.S. TREASURY BONDS 
 
"Obama, how can China believe you?" 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao)(03/19): "Obama's 
comments concerning the U.S. Treasury bonds are mostly oral 
pacifiers. In order to relieve China of its concerns, the U.S. needs 
to not only make oral promises but needs to take practical action. 
The U.S. could take two actions. The U.S. could increase the 
interest rate of its Treasury bonds. This is one way that China can 
make more profit, from the interest on U.S. bonds. Or, the U.S. 
could establish a system connecting the profits off of the interest 
from China's purchase of U.S. bonds, the inflation rate and the 
RMB-U.S. dollar exchange rate. The RMB exchange rate has become the 
biggest and most influential factor for China in purchasing U.S. 
bonds. As long as the U.S. can do the above two things, the security 
of China's investment will be well ensured. China should redefine 
its identity as the creditor of U.S. bonds, not just the investor. 
As the debtor, protecting the security of China's assets is the duty 
of the U.S., not the charity that they give China. China should also 
manage the U.S.' presupposed expectation that China will not 
decrease its purchase of the U.S. bonds." 
 
PICCUTA