Cablegate: Tokyo Media Reaction - Fao Conference On World

P 040503Z JUN 08
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E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - FAO CONFERENCE ON WORLD
FOOD SECURITY AND SURGING OIL PRICES

1. LEAD STORIES: Front-page items on Wednesday morning
included the opening of the FAO conference on food
security, as well as an alleged test-launch of a
prototype SLBM by China in the Yellow Sea in late May.

2. "Both Short- and Long-Term Approaches Needed to
Resolve Food Crisis" The business-oriented Nikkei
editorialized (6/4): "In order to rectify the global
imbalance between agricultural production and
consumption, measures to facilitate agricultural trade
are needed. Ensuring free trade of farm products, just
like industrial goods, is a major principle for the
global economy. Both export and import restrictions run
counter to this principle."

3. "Promotion of 'Second Generation' Biofuels Needed"
The top-circulation, moderate Yomiuri argued in an
editorial (6/4): "Biofuel is effective in preventing
global warming. At the same time, about 24,000 people
die from starvation every day around the world. We
should be careful about burning agricultural products.
The FAO summit must study measures to curb biofuels. If
'second-generation' biofuels were developed cheaply, it
would have the effect of assuring food supplies while
tamping down the oil market. Accelerated efforts are
needed to develop such fuels. "

4. "Concerted Monitoring Needed to Check 'Hot Money'"
The conservative Sankei asserted (4/4): "One problem
with surging oil prices is that there are no immediate
solutions at hand. Controlling monetary supplies would
be one tool for curbing the inflow of speculative money
into the oil market. However, loose monetary policy
must be maintained until the market turbulence
associated with the subprime loan crisis comes to an
end. This is the dilemma facing central banks around
the world.... 'Hot money' provides financial markets
with dynamism. However, if the amount becomes too
large, it exacerbates price fluctuations and makes the
markets unstable. Enhanced monitoring of such money is
needed to maintain market order."

SCHIEFFER

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