Cablegate: Tokyo Media Reaction - U.S. Bailout Plan

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UNCLAS SECTION 01 OF 02 TOKYO 002737

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. BAILOUT PLAN

1. LEAD STORIES: All Wednesday morning papers led with
the worldwide stock plunge on Tuesday and President
Bush's statement on Tuesday urging Congress to take
action.

2. "U.S Should Realize Its Responsibility to The World"
The liberal Asahi editorialized (10/1): "...If the U.S.
kills the bailout bill, the global financial system
could be thrown into turmoil. The U.S. government and
Congress should realize their responsibility. They need
to agree on amendments to the bill and pass it by the
end of this week."

3. "Wake up to the Deepening Crisis!" The liberal
Mainichi insisted in an editorial (10/1): "...It's time
for U.S. lawmakers to take the alarm in the market
seriously and realize the seriousness of the situation.
The crisis is too grave for them to be trapped by
ideological debates or interests in their
constituencies. We hope that the Bush administration
and Congress will make maximum efforts to revive the
financial rescue plan before it becomes too late."

4. "USG and Congress Should Move Quickly" The moderate
Yomiuri editorialized (10/1): "Some people say the
global economy is on the verge of panic. The U.S.-
originated financial crisis should be averted by all
available means. The U.S. government and Congress
should realize their responsibility, as the subprime
loan crisis broke out in the U.S. They should swiftly
enact the bailout bill."

5. "U.S. Should Take Responsible Action to Avoid
Financial Panic" The business-oriented Nikkei argued in
an editorial (10/1): "Market players throughout the
world must have been dumbfounded. The U.S. House of
Representatives rejected on Monday the bailout bill,
which was put forward to deal with the financial
crisis. The irresponsible rejection showed a lack of
understanding that the action could trigger worldwide
financial panic. The U.S. government and Congress
should swiftly pass an amended bill while maintaining
their basic policy of buying troubled assets with
public funds."

6. "U.S. Should Take Responsibility as Epicenter of
Financial Crisis" The conservative Sankei's editorial
said (10/1): "...The rejection was unexpected, as the
government and congressional leaders had reached a
tentative agreement... What needs to be done is clear.
The government and Congress should hold another
discussion to quickly put forward amendments to the
bill."

7. "U.S. Should Be Responsible for World Economy" The
liberal Tokyo Shimbun editorialized (10/1): "Stock
prices in the markets throughout the world plunged
following the rejection by the U.S. House of
Representatives of the bailout bill, which was aimed at
rescuing troubled financial institutions. The U.S.
government and Congress should realize their
responsibility for the global economy and move quickly
to amend the bill."

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