Cablegate: Tokyo Media Reaction - Global Financial

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P 150413Z OCT 08
FM AMEMBASSY TOKYO
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UNCLAS TOKYO 002871

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 FINANCIAL
TURBULENCE

1. LEAD STORIES: Most Wednesday morning papers gave top
play to Tuesday's announcement by President Bush on a
policy package designed to stabilize the financial
markets centering on the injection of $125 billion in
public funds into major banks.

2. "Crisis Did Not Go Away" On the global rebound in
stock prices, the top-circulation, moderate Yomiuri
editorialized (10/15): "Resolve expressed by the G7 to
mobilize all means available in order to contain the
crisis appears to have proven a success for the time
being. However, much more needs to be done in order to
overcome the financial crisis, which is said to be
tantamount to the Great Depression in the 1930s."

3. "International Community Needs to Reaffirm Unity"
The liberal Tokyo Shimbun insisted (10/15): "The world
is confronted with an emergency equivalent to the Great
Depression. The role of the government is critically
important. The decisions by the U.S. and European
governments to inject public money into banks, though
quite unusual from a historical viewpoint, are
defendable, considering a massive loss that could have
incurred if nothing were done.... However, concern
remains as to whether policies taken by each government
will lead to financial protectionism. Nations must be
extra careful not to benefit at the expense of others."

SCHIEFFER

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