Cablegate: Tokyo Media Reaction - Financial Crisis

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P 200257Z OCT 08
FM AMEMBASSY TOKYO
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UNCLAS TOKYO 002910

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 - FINANCIAL CRISIS

1. LEAD STORIES: Most Monday morning papers gave top
play to the agreement between the U.S. and EU to hold
an emergency summit involving G8 members and emerging
economies early next month in order to discuss how to
deal with the international financial crisis.

2. "Concern about U.S., Europe Vying for Initiative" On
the planned emergency summit on the financial crisis,
the liberal Tokyo Shimbun wrote (10/20): "A review of
the international banking system is likely to top the
agenda. The Europeans are insisting that the U.S.-
centered economic system, which Washington propped up
using the dollar, is responsible for the ongoing
crisis. The U.S., however, is certain to strongly
oppose an overhaul of the current system. There are
fears that the summit will become a venue in which the
U.S. and Europe fight over control."

3. "Summit to Discuss Enhanced Regulations,
Supervision" A Washington correspondent for the liberal
Asahi wrote (10/20): "As the U.S. and European
countries have already committed a huge amount of
public money to deal with the financial crisis, the
political cost for the leaders will be too great to
bear unless they put forward the basic principle of
enhancing regulations and implementing thorough
measures to prevent a recurrence of the crisis....
Behind French President Sarkozy's proposal of holding
the summit in New York, the 'global financial capital,'
lie European hopes of altering America's market-first
doctrine and staging the meeting as a political show."

4. "Emergency Summit May Backfire and Worsen Market
Chaos" A Washington-based reporter for the conservative
Sankei wrote in a front-page analysis (10/20): "The G7
has just launched a package of concrete measures to
deal with the financial turbulence, including the
injection of public money (into ailing financial
institutions). If the planned summit fails to issue a
stronger message, it runs the risk of disappointing
market players and aggravating market turmoil."

SCHIEFFER

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