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Cablegate: Media Reaction: U.S.-China Military Relations, U.S. Space

VZCZCXRO2233
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2984/01 3000955
ZNR UUUUU ZZH
R 270955Z OCT 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6622
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 002984

DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007)
SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON KMDR OPRC CH

SUBJECT: MEDIA REACTION: U.S.-CHINA MILITARY RELATIONS, U.S. SPACE
PROGRAM, RMB APPRECIATION, IRAN

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Editorial Quotes
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1. U.S.-CHINA MILITARY RELATIONS

"U.S. and Chinese military shake hands at the Pentagon"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(10/28)(pg 1): "During the visit of Chinese
military leaders to the U.S., the U.S. opened up rarely-seen, secret
military bases, but the U.S. still complained about China's lack of
military transparency. Chinese military expert Song Xiaojun said
that letting China visit secret military bases is like showing off
several pieces of luxurious jewelry, but cannot solve the real issue
of the U.S. stepping on China's toes over the Taiwan issue. Another
expert, Dai Xu, argued that the U.S. itself cannot be as completely
transparent as it is requiring China to be. The U.S. seldom
explains its military intentions to China, such as the frequent
incidents caused by the U.S. in China's sea territory. The visit
this time intends to clear up misunderstandings and promote
bilateral military exchanges. Jin Canrong, Deputy Director of
Institute of International Relations at People's University of
China, said that U.S.-China military relations are especially
fragile due to the ideological differences between the two
countries. Obstacles in U.S.-China military exchanges come from
U.S. distrust towards China. The U.S. attitude this year towards
China is quite positive and related to the speed of China's military
modernization. China should play this card well."

2. U.S. SPACE PROGRAM

"U.S. postpones launch of its biggest rocket"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(10/28)(pg 16): "The U.S. still leads the
global aviation industry. A Chinese expert said that the U.S. is
capable of quickly advancing rocket technology. The launch of the
rocket (Ares IX) will show that the most advanced, new generation
manned aerospace project in the world has finally entered the
implementation phase. The launching of the rocket also represents a
major change in U.S. space strategy. The U.S. has suffered
significant losses in developing spaceships, and thus has had to
give up on spaceships and turn instead to developing large
propulsion rockets. A Chinese expert said that this change shows
that the future of the space race will be centered on big rockets.
However, another expert argued that if some of the spaceships'
technological problems can be solved the U.S. may come back to
spaceships again in the future."

3. RMB APPRECIATION

"U.S. dollar's losing streak putting increased pressure on RMB to
appreciate"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(02/03)(pg A1): "The exchange rate issue
has always been an issue of politics rather than simply prices.
While the global financial crisis is fading away, there is once
again increased pressure from the international community for the
RMB to appreciate. This shows different countries' different
national interests. Chinese experts argued that when many
governments find implementation of stimulus policies difficult to
continue, they turn to depreciating their currencies or urging their
opponents to appreciate their currencies in order to increase the
competitiveness of their exports. An analyst at Standard Chartered
Bank said that China's trade surplus is decreasing this year, which
reduces the appreciation pressures on the RMB. However, in face of
the increasing international pressure, China may give in and
initiate a substantive appreciation of the RMB in December."

4. IRAN

"IAEA concludes investigation; Iran's nuclear crisis enters a new
period"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(02/03)(pg A4): "Movement on the Iranian
nuclear crisis is to some extent the result of Obama's personal
efforts in acting as a coordinator among the great powers, rather
than the IAEA, to implement 'smart power diplomacy.' In fact,
though, games being played and deals being made between the great
powers are really what is behind Obama's 'smart power diplomacy.'
Many believe that Russia's acceptance of [IAEA Director General
Mohammed] El-Baradei's plan at the four-nation meeting in Vienna was
a reward for the U.S. giving up its missile defense system in
Eastern Europe. Some say the U.S has also tried to make a deal with
China by asking Saudi Arabia to increase its oil supply to China.

BEIJING 00002984 002 OF 002


China has always insisted on resolving the Iran issue peacefully
through negotiations. Although the Iranian nuclear issue is
developing in a positive direction, it is difficult to solve in the
near term due to the issue's historical baggage, the uncertainty of
the games between the great powers, and Iran's geo-strategic
location."


HUNTSMAN

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