Cablegate: Tokyo Media Reaction - Global Economy

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P 070037Z OCT 08
FM AMEMBASSY TOKYO
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UNCLAS TOKYO 002784

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 - GLOBAL ECONOMY

1. LEAD STORIES: All Tuesday morning papers led with
the plunge in New York of the Dow below 10,000 for the
first time in four years during Monday's trading.

2. "Fear of Free Fall Looming" The liberal Asahi's New
York correspondent wrote on the plunge in the Dow
during Monday's trading (10/7): "The ongoing financial
turmoil in the U.S. is reverberating across the globe
like a tsunami.... No prospect is in sight of finding
an end to the financial crisis, which lies at the core
of market anxiety. While the enactment of the financial
bailout legislation was regarded as a step forward, its
effectiveness is still being questioned."

3. "Coordinated Actions Must Be Taken Expeditiously"
The liberal Tokyo Shimbun editorialized (10/7): "The EU
is noted for policy coordination. However, it failed to
iron out measures to rescue banks because there was no
consensus among member states on the roles respective
governments should play in dealing with a crisis....
Continued disarray among major economies would prompt
'capital flight' out of weak institutions. The G7 is
scheduled to hold a financial ministers' and central
bank governors' meeting shortly to cope with the
mounting crisis. As the market is filled with doubts
and anxiety and as banks are experiencing a freeze in
lending among themselves, the participants must come up
with a consensus on what they can and should do."

SCHIEFFER

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