VZCZCXRO4889
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1063/01 1110916
ZNR UUUUU ZZH
R 210916Z APR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 3583
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 001063 
 
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: FINANCIAL CRISIS, CHINESE NAVY'S 
ANNIVERSARY, UN RACISM CONFERENCE 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. FINANCIAL CRISIS 
 
a. "The internal defect and future evolution of the international 
currency system" 
 
21 Century Business Herald (21Shiji Jingji Baodao) under Guangdong 
21 century publishing company Ltd. (04/21): "For more than 30 years, 
the Dollar Standard System has caused the abnormal development of 
American industries. This development then became ingrained in their 
culture and now it is hard to change. The U.S., as the debtor, has 
unprecedentedly thrown out many standard business practices, for 
example the practice of a debtor country paying interest to a 
creditor country. However, in the U.S. it is often the opposite. 
American scholars call this 'excessive privilege.'  Meanwhile, 
surplus dollars are flowing back to the U.S. ...Regional wars 
created by the U.S. have caused dramatic increases in the of the 
U.S. government's fiscal deficit, trade deficit, developing 
country's foreign reserves, the surge of the world's oil and gold's 
price, the collapse of the international currency system, and the 
overall financial crisis. ...The root cause of the financial crisis 
is the Dollar Standard System which has no restrictions and 
containment. The world's imbalanced economy is not the cause of the 
financial crisis. The U.S. is able to gain resources, products and 
strategic assets from the dollar's global liquidity. In the future, 
the U.S. dollar's zone will include the whole of North America and 
will expand into South American countries. The RMB's 
internationalization will be both an external and internal 
comprehensive process. It all depends on whether or not the 
successful economic transformation of China can be fulfilled." 
 
b. "Chinese-style Marshall Plan is right on time" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(04/21): "Many counties have discussed whether 
it is appropriate for China to conduct its own Marshall Plan. Based 
on China's development, the country is looking for opportunities to 
expand its economic strategy. The Marshall Plan may be a good 
platform and method for China's global economic strategy. If China 
starts a Marshall Plan, China could stimulate domestic demand by 
driving up external demand. A Marshall Plan could also help China to 
offset the negative effects of China's economic stimulus measures, 
i.e. surplus production. What's more, a Marshall Plan can provide 
alternative ways to spend China's foreign reserves. To avoid a 
dramatic drop in the values of American bonds held by China, China 
should increase their imports by giving the bonds to countries that 
are in great need. Furthermore, the Marshall Plan could prepare 
China for their future global economic strategy. Unpractical 
expectations should be avoided when researching the plan." 
 
¶2. CHINESE NAVY'S ANNIVERSARY 
 
"Navies from 14 different countries will attend the Troop Review 
ceremony" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(04/21): "The chiefs of both the American and 
the Russian Navies will attend the Troops Review ceremony. Warships 
from many countries have, for the first time, assembled in China 
with a distinctly peaceful goal. The Chinese navy's combat 
capabilities are 4th or 5th in the world. However, different from 
the U.S., China has no need to set up a super-navy. China is only 
focused on developing their navy suitable to their country's 
strength and security. Chinese experts indicate that this Troops 
Review will influence China's cooperation with other countries in 
the future because the Review will help enhance the mutual 
understanding and trust in regard of military cooperation. The 
Chinese navy has an open attitude." 
 
¶3. UN RACISM CONFERENCE 
 
"To understand rationally and communicate equally is a challenge" 
 
The official Communist Party People's Daily (Renmin Ribao) (04/210: 
"A few countries, including the U.S., have opposed the UN's 
anti-racism summit. An official statement of the U.S. explained that 
that this is due to the conference's historical document which 
contains criticism against Israel. From leaving this conference in 
2001 to the resistance of today, the U.S. attitude has not changed. 
Today, the U.S. emphasizes smart power. However, the U.S.' stance 
has not changed on this issue, which is worth noting. The U.S. bears 
a historical burden concerning the Israel issue. The U.S. and Israel 
are diverging concerning the Palestine-Israel conflict.  The U.S. 
has chosen to stand with Israel at the racism conference. What's 
more, Ahmadinejad has made his attendance at the conference very 
 
BEIJING 00001063  002 OF 002 
 
 
high profile. Under the cloud of the U.S.-Iran relationship, the 
U.S. would rather avoid the conference than be embarrassed. In order 
to deal with the anti-racism issue from an equal basis, concerned 
parties should adopt a more rational, more understanding and more 
constructive attitude." 
 
PICCUTA