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Cablegate: Tokyo Media Reaction - G7

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DE RUEHKO #4881 2920203
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P 190203Z OCT 07
FM AMEMBASSY TOKYO
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INFO RUEHFK/AMCONSUL FUKUOKA 3837
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UNCLAS TOKYO 004881

SIPDIS

SIPDIS

STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - G7


LEAD STORIES: Top stories on Friday morning included a
Pentagon statement denying allegations that Japanese
fuel was diverted to US Navy vessels engaged in
operations in Iraq.

"G7 Should Remove Distrust" The liberal Tokyo Shimbun
editorialized (10/19): "...The subprime loan problem
will be the major focus of the upcoming G7 meeting. G7
nations need to make every effort to stabilize the
market by conducting in-depth discussions addressing
such issues as the impact on the world economy, the
prospect of settlement of the subprime loan crisis, and
the reliability of rating firms that evaluated housing
loan products. The US, Japan, and Europe should
coordinate their views about cooperative measures,
including potential interest rate cuts, in order to
prepare for a possible credit crunch... G7 nations plan
to meet with managers of sovereign wealth funds. Their
discussion should be aimed at increasing transparency
in their management in order to avoid unnecessary
confusion in the market."

SCHIEFFER

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