VZCZCXRO6506
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1704/01 1740854
ZNR UUUUU ZZH
R 230854Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4713
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 001704 
 
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, And U.S. POLICY 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. IRAN 
 
"Obama is conflicted concerning Iran" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(06/23): "Obama maintains restraint when 
stating his opinion concerning Iran.  This restraint reflects that 
the Obama administration has a far different political strategy than 
the Bush administration. After Iran's election results were 
produced, the U.S., to a great extent, has experienced a dilemma. 
First of all, the U.S. cannot pick a side.  Knowing that commenting 
on the election in Iran would not be good; the U.S. can't help but 
express both surprise and disappointment.  The U.S. is also 
conflicted concerning its expectations and the reality.  It was 
disappointed by the election results; bust must be prepared to deal 
with the Iranians in the future.  What's more, how will the U.S. 
deal with the future Iran?  Some American political personnel 
pressured Obama to oppose Ahmadinejad's reelection.  The Obama 
administration has been persuading Israel not to take extreme 
measures concerning Iran." 
 
¶2. NORTH KOREA 
 
a. "It is possible for the U.S. to have good relations with North 
Korea" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(06/23): "Obama's recent diplomatic measures 
reveal that the U.S. is utilizing a Nixon-style strategic shrinking 
policy in North Eastern Asia.  However, Nixonism is not only a 
strong shrinkage policy but also a soft offending policy. 
Historically, by beating the Soviet Union, the U.S. saved itself. 
For China, this is a danger and an opportunity. At present North 
Korea has made subtle changes to its 'game' in Northeast Asia.  The 
following will depend on the wit of all involved parties.  It is not 
impossible that the U.S. could establish good relations with North 
Korea.  Didn't Nixon establish good relations with China without 
giving up Taiwan?  Therefore it is quite possible that the U.S. may 
establish good relations with North Korea and maintain alliance with 
South Korea at the same time.  If that happens, China will 
experience what the former Soviet Union's felt in 1972.  Like Deng 
Xiaoping said in 1989 'I thought the Cold War had ended, however I 
have been disappointed.  Two other Cold Wars have started: one for 
the third world countries, the other for socialism." 
 
b. "North Korea says that their supposed statement threatening the 
U.S. is ridiculous" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(06/23): "It has been said that a North Korean 
missile is targeting Hawaii.  The U.S. congressman McCain told China 
that UN sanctions were not enough.  The most important is for China 
to step-in, adding pressure to North Korea.'  South Korean media 
reported that the U.S. is making efforts to persuade China to 
actively participate in the UN Security Council's sanction on North 
Korea.  The U.S. believes either a 'brick or a carrot' by China will 
be crucial to success.  North Korean media said the allegation that 
North Korea is threatening the U.S. is ridiculous." 
 
¶3. U.S. POLICY 
 
"The U.S. will bring forward a global standard for financial 
regulation; China should selectively learn the bimodal model" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(06/23): "Mr. 
Liu Shengjun, deputy director of CEIBS Lujiazui International 
Finance Research Institute, said the regulation reform program is 
not as bold as people expected. The reason for this is that when 
Obama submitted this plan to Congress for discussion he had to make 
some compromises.  There are three defects to Obama's reform plan. 
Firstly, there are so many regulatory agencies that need to be 
eradicated.  Secondly, if the power of the Consumer Financial 
Protection Agency is too big, it will affect financial innovation. 
Last but not least, the regulation system lacks an incentive 
mechanism.  Since the market is continuously changing, regulation 
agencies must advance with time and keep increasing their regulatory 
capabilities.  Based on this plan, the position of the U.S. Federal 
Reserve has been unprecedentedly expanded.  Mr. Sun Lijian, deputy 
director of School of Economics, Fudan University, pointed out that 
although currently the regulation system appears very strict, it 
won't last.  Changes in the U.S. economic circle will cause the 
changes of the regulation circle.  Recession brings high 
regulations.  However, when the economy is once again prosperous, 
relaxed regulation will encourage financial innovation.   If the 
 
BEIJING 00001704  002 OF 002 
 
 
U.S. requests that the whole world adopt the same regulation model, 
it will be adverse for China. Other countries won't accept this 
high-standard regulation model, either.  The Europeans welcome the 
raised U.S. regulation standard, but if the U.S. requests that 
Europe copy this high-standard regulation model, Europe won't be 
happy with that." 
 
PICCUTA