Cablegate: Tokyo Media Reaction - World Economy

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UNCLAS TOKYO 002801

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 - WORLD ECONOMY

1. LEAD STORIES: All Wednesday morning papers gave
prominent top play to the three Japanese scientists who
won the 2008 Nobel Prize in physics.

2. "It's High Time for U.S., Europe to Employ All
Policy Tools" The liberal Mainichi editorialized
(10/8): "Japan experienced a banking crisis in the late
1990s after the economic bubble collapsed. At that
time, Japan was pressed by the U.S. and Europe to do
everything it could, including massive government
spending and the purchase of corporate shares by the
Bank of Japan. This time around, the U.S. and Europe
should mobilize all policy instruments available to
contain the financial turbulence and turn around the
stock market."

3. "U.S., Europe Must Address Root Problems to Deal
with Global Stock Plunge" The business-oriented Nikkei
argued in an editorial (10/8): "Financial instability
in the U.S. and Europe is responsible for a worldwide
stock plunge. Distrust in the banking system will
remain as long as concern remains about the adequacy of
the capital bases of financial institutions. In order
to root out the core problems of the ongoing crisis,
the U.S. and European governments need to inject
sufficient public money into ailing lending
institutions."

SCHIEFFER

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