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Cablegate: Tokyo Media Reaction - U.S.-India Nuclear

VZCZCXRO7208
PP RUEHFK
DE RUEHKO #2452 2520239
ZNR UUUUU ZZH
P 080239Z SEP 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7082
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY
RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY
RHMFIUU/USFJ PRIORITY
INFO RUEHFK/AMCONSUL FUKUOKA 9750
RUEHOK/AMCONSUL OSAKA KOBE 3491
RUEHBJ/AMEMBASSY BEIJING 5238
RUEHMO/AMEMBASSY MOSCOW 2524
RUEHUL/AMEMBASSY SEOUL 1232
RUCNDT/USMISSION USUN NEW YORK 1545
RHEHAAA/NSC WASHDC

UNCLAS TOKYO 002452

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.-INDIA NUCLEAR
ACCORD AND U.S. BAILOUT OF HOUSING LOAN FIRMS

1. LEAD STORIES: Most Monday morning papers led with
the disclosure by Treasury Secretary Paulson that the
USG will use public funds to rescue Fannie Mae and
Freddie Mac.

2. "Can Nuclear Nonproliferation Regime Be Maintained?"
On the Nuclear Suppliers Group's (NSG) decision to
endorse the U.S.-India nuclear cooperation accord, the
liberal Mainichi editorialized (9/7): "...While the
decision was unanimous in the end, the approval was
reportedly greeted not with applause but silence.
Representatives may have been concerned that this
decision could cause problems in the future. We cannot
help but feel a strong sense of crisis that the
international community's wisdom concerning nuclear
nonproliferation buckled under U.S. pressure."

3. "Historic Folly" The liberal Mainichi argued in an
editorial (9/8): "We cannot subscribe to the U.S. view
that its nuclear accord with India will enhance the NPT
regime by bringing India into a nonproliferation
system. We think it is a historic folly that will
likely weaken the NPT regime.... Strong concerns remain
about Iran following North Korea's path on nuclear
proliferation. Enhancing trust in the NPT system is
needed to contain a nuclear crisis. The decision (by
the NSG) completely runs counter to such a course."

4. "Allowing Nuclear Cooperation with India Puzzling"
The business-oriented Nikkei insisted in an editorial
(9/8): "The principles of nuclear nonproliferation must
not be undermined. It is a matter of course that India
should give up its nuclear programs first if it wants
to receive equipment and financing for nuclear power
generation."

5. "U.S. Takes Responsibility in International Economy"
On the U.S. bailout of Fannie Mae and Freddie Mac, a
Washington-based reporter for the liberal Tokyo Shimbun
wrote (9/8): "The decision represents a major policy
turnabout for the Bush administration, which had been
hesitant about intervening in the market. The U.S. took
this step in order to take responsibility for the
subprime loan crisis. However, given the deterioration
of the international economy, including the U.S.
economy, the U.S. action leaves us with the impression
that it comes too late."

6. "Rescue Intended to Avert Chain of Crises" The
liberal Asahi's Washington correspondent asserted
(9/8): "The USG has taken control of government-
affiliated housing-loan corporations. This is an
emergency situation in which the federal government is
effectively shoring up the world's largest mortgage
market. If the USG had not chosen to use a massive
amount of public funding to keep the two corporations
operating, the U.S. mortgage market would have ceased
to function."

ZUMWALT

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