VZCZCXRO6239
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3473 3620935
ZNR UUUUU ZZH
R 280935Z DEC 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 7438
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 003473 
 
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 SENV KGHG KMDR OPRC CH
 
SUBJECT: MEDIA REACTION: U.S. - CHINA RELATIONS, U.S. MILITARY 
SPENDING, IRAN 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. U.S. - CHINA RELATIONS 
 
"We should not allow the United States' Medicare to drag down China" 
 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(12/28)(pg 14): "No health care reform in the 
world can evade this question:  where does the money come from? 
China, which holds $800 billion in US Treasury bonds, must watch 
carefully as U.S. President Obama's health care reform plan is 
executed.  At this crucial time, the United States will for sure 
request China to continue buying U.S. Treasury bonds. And if the 
United States still suffers a lack of funding in the coming years, 
it will ask for even more.  China should by no means presume that 
because the United States needs China's 'financial support' it will 
take better care of China's interests.  In fact, the United States' 
'internal strife' on health care reform has already impacted China's 
interests.  This summer, Obama obtained U.S. trade unions' support 
for his health care reform by taking 'protective measures' and 
sacrificing the interests of Chinese enterprises.  In the future, we 
have every reason to be concerned that Washington, in order to 
secure sufficient revenue, may once again make China a victim on 
issues like trade, climate change, human rights and arms sales to 
Taiwan." 
 
¶2. U.S. MILITARY SPENDING 
 
"Comments on increased military expenditures by the United States" 
 
The official Communist Party People's Daily (Renmin Ribao)(12/28)(pg 
13): "The current financial crisis has not put a crimp on defense 
spending.  Professor Zhang Zhaozhong of the Chinese National Defense 
University said that increased U.S. military spending is aimed to 
meet both short-term needs and long-term goals.  Short-term needs, 
Zhang noted, are related to 'two wars' (the Afghan War and the Iraq 
War) as well as 'two issues' (the Iranian nuclear issue and the DPRK 
nuclear issue).  The United States' long-term considerations are 
related to its fallen influence over international politics, 
economic and cultural affairs.  Therefore, the United States needs 
to maintain its edge through superb military capacity.  We can 
predict that next year's arms market will be even more prosperous 
and if that trend continues, an arms race is likely to occur in the 
future." 
 
¶3. IRAN 
 
"There will be no turning point without compromise" 
 
The official Communist Party People's Daily (Renmin Ribao)(12/28)(pg 
3):"The Iranian nuclear issue has not entered a stalemate yet, and 
there is still room to maneuver.  First, the United States did not 
want to promote legislation imposing sanctions on Iran.  The new 
U.S. policy for engagement and dialogue with Iran is less than one 
year old and the United States does not want to let it die.  Second, 
the Iranian government is restrained from making any compromise by 
its domestic affairs.  Third, all parties concerned have their own 
agenda.  Last but not least, there is still space for negotiations 
on the uranium exchange deal.  In order to break the dead-locked 
Iranian nuclear issue, all involved parties - especially the United 
States and Iran - should continue exchanging ideas and seeking 
comprise.  The United States and Europe should maintain patience and 
recognize the complex nature of this issue, resolving it through 
dialogue rather than sanctions." 
 
GOLDBERG