Cablegate: Tokyo Media Reaction - U.S. Economy

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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 - U.S. ECONOMY

1. LEAD STORIES: Top stories on Friday morning included
a Tokyo Shimbun report from Beijing on China's alleged
proposal regarding North Korea's nuclear declaration.

2. "Risk of U.S. Economic Slowdown Increasing" The
business-oriented Nikkei editorialized (2/29): "The
risk is growing for the U.S. economy, which leads the
world economy, to slow. Its housing market has been
experiencing a downturn and financial institutions and
the financial market have been hurting. The U.S. should
immediately take all possible measures to deal with the
abnormal economic situation, which appears similar to
what Japan experienced following the burst of its
'bubble economy'... Under the current economic
slowdown, which was triggered by the housing slump, the
malfunction in the financial system is complicating the
situation. There are mounting tasks for the USG,
including the removal of credit insecurity about
monoline insurance companies. The USG and FRB should
define what the problems are and make a prompt move to
deal with those problems."

SCHIEFFER

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