P 180639Z JUN 09
FM AMCONSUL HONG KONG
TO SECSTATE WASHDC PRIORITY 7873
INFO WHITE HOUSE WASHDC
USDOC WASHDC
AMEMBASSY BEIJING 
AMCONSUL SHANGHAI
AMCONSUL GUANGZHOU 
AIT TAIPEI 0329
CDR USPACOM HONOLULU HI

UNCLAS HONG KONG 001116 
 
 
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E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO
SUBJECT: MEDIA REACTION: IRAN; BRIC SUMMIT 
 
TOPICS: 
¶1. Iran 
¶2. BRIC summit 
 
HEADLINES AND EXCERPTS: 
 
¶1. Iran 
 
"Iran's leaders must stick to the rules" 
 
The independent English-language South China Morning Post said in an 
editorial (6/18):  "Iran is at a crossroads.  A disputed 
presidential election has brought its people to the streets in 
numbers not seen since the revolution that toppled the late shah 
three decades ago.  The ruling conservative Islamic clerics, 
reformists and factions within both camps are torn about the 
nation's future.  There can be no certainty of the outcome; events 
are unfolding by the day and hour, being shaped by public sentiment, 
political maneuvering and the loyalty of the police and military.... 
 Iran has a constitution that guarantees its people rights and 
freedoms.  The country's leaders have to follow these rules.  They 
have prevented foreign media from reporting rallies and protests; in 
doing so, they are preventing transparency.  Violence being sown in 
the name of eliciting an outcome has to end and be prevented. 
Iran's future can be determined only by Iranians.  U.S. President 
Barack Obama has taken the right tack, remaining neutral so as to 
not to meddle in the nation's affairs.  Foreign governments can help 
keep the participants honest.  But beyond this, their role must only 
be to watch and wait." 
 
¶2. BRIC summit 
 
"China starts to reduce holdings of U.S. treasury bonds; the status 
of the U.S. dollar can hardly be shaken" 
 
The independent Chinese-language Hong Kong Economic Journal said in 
an editorial (6/18):  "...The joint declaration of the BRIC nations 
did not mention how to deal with the U.S. dollar and whether the 
BRIC nations will set up another reserve currency.  This is 
different from what the outside world anticipated.  However, the 
fact that they did not mention them in the declaration does not mean 
that they will not do anything.  China had started to reduce 
holdings of U.S. treasury bonds in April, sparking people's worries 
that this would be a long-term trend....  It is commonly understood 
among the BRIC countries that the U.S. dollar is at risk.  It is 
obvious that the four BRIC countries do not have any plans to change 
the status quo.  The only thing that they can do is to stop the U.S. 
dollar from collapsing, to speed up the exchange of currencies and 
to gradually get rid of the U.S. dollar in trade clearing. 
Currently, they still do not have any plans to replace the status of 
the U.S....  The BRIC nations have become powerful emerging 
economies.  However, even if they join hands, they will not able to 
shake up the status of the U.S. dollar.  Thus, those saying that the 
U.S. dollar may be replaced or that other economies will give up the 
U.S. dollar are just wishful thinking..." 
 
DONOVAN