VZCZCXRO2233
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2984/01 3000955
ZNR UUUUU ZZH
R 270955Z OCT 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6622
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 002984 
 
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: PREL ECON KMDR OPRC CH
 
SUBJECT: MEDIA REACTION: U.S.-CHINA MILITARY RELATIONS, U.S. SPACE 
PROGRAM, RMB APPRECIATION, IRAN 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  U.S.-CHINA MILITARY RELATIONS 
 
"U.S. and Chinese military shake hands at the Pentagon" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(10/28)(pg 1): "During the visit of Chinese 
military leaders to the U.S., the U.S. opened up rarely-seen, secret 
military bases, but the U.S. still complained about China's lack of 
military transparency.  Chinese military expert Song Xiaojun said 
that letting China visit secret military bases is like showing off 
several pieces of luxurious jewelry, but cannot solve the real issue 
of the U.S. stepping on China's toes over the Taiwan issue.  Another 
expert, Dai Xu, argued that the U.S. itself cannot be as completely 
transparent as it is requiring China to be.  The U.S. seldom 
explains its military intentions to China, such as the frequent 
incidents caused by the U.S. in China's sea territory.  The visit 
this time intends to clear up misunderstandings and promote 
bilateral military exchanges.  Jin Canrong, Deputy Director of 
Institute of International Relations at People's University of 
China, said that U.S.-China military relations are especially 
fragile due to the ideological differences between the two 
countries.  Obstacles in U.S.-China military exchanges come from 
U.S. distrust towards China.  The U.S. attitude this year towards 
China is quite positive and related to the speed of China's military 
modernization.  China should play this card well." 
 
¶2.  U.S. SPACE PROGRAM 
 
"U.S. postpones launch of its biggest rocket" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(10/28)(pg 16): "The U.S. still leads the 
global aviation industry.  A Chinese expert said that the U.S. is 
capable of quickly advancing rocket technology.  The launch of the 
rocket (Ares IX) will show that the most advanced, new generation 
manned aerospace project in the world has finally entered the 
implementation phase.  The launching of the rocket also represents a 
major change in U.S. space strategy.  The U.S. has suffered 
significant losses in developing spaceships, and thus has had to 
give up on spaceships and turn instead to developing large 
propulsion rockets.  A Chinese expert said that this change shows 
that the future of the space race will be centered on big rockets. 
However, another expert argued that if some of the spaceships' 
technological problems can be solved the U.S. may come back to 
spaceships again in the future." 
 
¶3.  RMB APPRECIATION 
 
"U.S. dollar's losing streak putting increased pressure on RMB to 
appreciate" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(02/03)(pg A1): "The exchange rate issue 
has always been an issue of politics rather than simply prices. 
While the global financial crisis is fading away, there is once 
again increased pressure from the international community for the 
RMB to appreciate.  This shows different countries' different 
national interests.  Chinese experts argued that when many 
governments find implementation of stimulus policies difficult to 
continue, they turn to depreciating their currencies or urging their 
opponents to appreciate their currencies in order to increase the 
competitiveness of their exports.  An analyst at Standard Chartered 
Bank said that China's trade surplus is decreasing this year, which 
reduces the appreciation pressures on the RMB.  However, in face of 
the increasing international pressure, China may give in and 
initiate a substantive appreciation of the RMB in December." 
 
¶4.  IRAN 
 
"IAEA concludes investigation; Iran's nuclear crisis enters a new 
period" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(02/03)(pg A4): "Movement on the Iranian 
nuclear crisis is to some extent the result of Obama's personal 
efforts in acting as a coordinator among the great powers, rather 
than the IAEA, to implement 'smart power diplomacy.'  In fact, 
though, games being played and deals being made between the great 
powers are really what is behind Obama's 'smart power diplomacy.' 
Many believe that Russia's acceptance of [IAEA Director General 
Mohammed] El-Baradei's plan at the four-nation meeting in Vienna was 
a reward for the U.S. giving up its missile defense system in 
Eastern Europe.  Some say the U.S has also tried to make a deal with 
China by asking Saudi Arabia to increase its oil supply to China. 
 
BEIJING 00002984  002 OF 002 
 
 
China has always insisted on resolving the Iran issue peacefully 
through negotiations.  Although the Iranian nuclear issue is 
developing in a positive direction, it is difficult to solve in the 
near term due to the issue's historical baggage, the uncertainty of 
the games between the great powers, and Iran's geo-strategic 
location." 
 
 
HUNTSMAN