From Volume 38, Issue 22 of EIR Online, Published June 3, 2011
Asia News Digest

Chinese IMF Advisor Advocates Harry Dexter White over Keynes

May 27 (EIRNS)—Chinese economist Min Zhu, Special Advisor to the International Monetary Fund's Managing Director (when they have one), cited Assistant Treasury Secretary Harry Dexter White, Franklin Delano Roosevelt's point man against the British Empire's hitman John Maynard Keynes at the 1944 Bretton Woods Conference, as a reference for today's discussions of what to do about the global crisis.

Zhu was speaking May 26 at an IMF-Brazilian government conference on "Managing Capital Flows in Emerging Markets." While Zhu did not allude to the urgency of replacing the bankrupt monetary system in his remarks, his mere revival of the work of FDR's Harry Dexter White, from within the now-leaderless IMF, and in the midst of the frantic debate globally over Lyndon LaRouche's warning that only a global credit system pivoted on FDR's Glass Steagall and a Bretton Woods-style fixed exchange rate system can save nations and civilization, will drive the British Empire wild.

Zhu reported that he has been reading up on the debate between British Lord Keynes and Harry Dexter White. Since Keynes's views are generally known, he said, he wished to discuss those of White, who "took as his starting point that 'the desirability of encouraging the flow of productive capital to areas where it can be most profitably employed needs no emphasis.' " The general assumption that Keynes favored capital controls and White opposed them, is "too simplistic a reading of history," Zhu said. He cited White's advocacy of "some measure of the intelligent control of the volume and direction of foreign investments" going back to his 1930 doctoral dissertation at Harvard University, and from White's Plan for the IMF.

The IMF is studying and discussing the impact of the actions of the five largest economies (China, the Euro area, Japan, the United Kingdom, and the United States) upon the world economy, Zhu reported. He does not want to anticipate these reports, "but to quote the eloquent Mr. White once more: 'It is true that rich and powerful countries can for long periods safely and easily ignore the interests of poorer or weaker neighbors or competitors, but by doing so they will imperil the future and reduce the potentiality of their own level of prosperity. The lesson that must be learned is that prosperous neighbors are the best neighbors; that a higher standard of living in one country begets higher standards in others; and that a high level of trade and business is most easily attained when generously and widely shared.' I believe that White's words are as true today as they were seventy years ago."

Kim Jong-il's China Trip Is Endorsed by South Korea

May 25 (EIRNS)—North Korean leader Kim Jong-il's China trip last week included stops in North China to visit Chinese industrial locations, the South Central China city of Yangzhou (where he met with former Chinese President Jiang Zemin), and nearby Nanjing, Shanghai, and Beijing, where he met with China's national leaders.

Kim's discussions included China and North Korean cooperation on ambitious development projects on the border area on the Yellow Sea as well as in the Tumen River area in the North.

South Korean media outlets and experts expressed support for economic cooperation between China and North Korea. "We hope Pyongyang and Beijing will produce successful results in their bilateral economic cooperation to help ease the North's economic hardship," the Korean Times commented.

South Korean President Lee Myung-bak also said that South Korea welcomes a more politically open and economically developed North Korea. Chinese Premier Wen Jiabao had told Lee that Beijing had invited Kim to study China's economic reforms, according to a statement by Lee's office during the three-way China-Japan-South Korea summit held the previous weekend.

The Fight for Nuclear Power in Asia Continues

May 25 (EIRNS)—Yasuhiro Nakasone, Japan's Prime Minister 1982-87, strongly rejected the anti-nuclear policies being pursued by the current Japanese government in the wake of the Fukushima crisis. Speaking of his own role in developing the nuclear capacities in Japan following the use of nuclear weapons against his nation in World War II, Nakasone said: "When I learned that U.S. President Dwight D. Eisenhower was switching to a policy of peaceful utilization of nuclear power, I said to myself: 'Japan must not lag behind the United States. Nuclear energy is going to define the next era'.... I believed, and also told everyone, that without energy security and science and technology, Japan would remain a fourth-class nation that depends on farming only. I had serious concerns then about our country's future."

On today's situation, he added: "Even though the Fukushima accident has done tremendous damage, I believe we must thoroughly examine what happened and learn lessons from it in order to maintain and advance our nuclear policy. Considering the global trend, the future of our country, our energy needs and our scientific and technological capabilities, we must move forward bravely and overcome this crisis and the hardships it has brought. We Japanese are not quitters. The majority of the world is not against peaceful utilization of nuclear energy.

"There will be more talk about renewable energy sources, such as solar energy. But the power supply we can expect from those sources is still negligible. For instance, solar and wind combined won't even meet 10% of our needs. Our country's energy policy has to move forward along with the people. Until the people become fully able to understand the present situation, the government must proceed very carefully, and should avoid making a rash decision."

Human Reproduction Is a Physical Economic Issue of Profound Implications

May 23 (EIRNS)—The strongly Catholic country of the Philippines has been wracked in the recent period by debate over a "reproductive health" bill. Archbishop Emeritus Oscar Cruz last week identified the fight as one between anti-human, depopulation policies as opposed to the development of nations. He said Philippines President Aquino's support for population control programs was an official admission of his administration's inability to undertake socioeconomic programs to ease poverty.

"His government's simplistic option and blatant decision," said Archbishop Cruz, "is to lessen [the number of] Filipinos to have a better Philippines. Forgotten is the once proud and loud shout 'Kung walang corrupt, walang mahirap' (If there's no corruption, there's no poverty). Now the maxim sounds 'Kung walang ipapanganak, walang mahirap' (If no child is born, there's no poverty)," he said.

Instead of thinking of ways to produce more food and houses for people, he continued, the government had subscribed to the idea that "the less people eat, the more food there is; the fewer people are housed, the more houses there are."

Myanmar's President Seals Strategic Partnership with China

May 29 (EIRNS)—Myanmar's new President Thein Sein completed a three-day trip to Beijing today, sealing a comprehensive strategic cooperative partnership between the two countries after meetings with top officials, including President Hu Jintao and Premier Wen Jiabao.

A supplemental agreement to an MOU between the Myanmar Union Ministry of Rail Transportation and the China Railways Engineering Corporation, completes a deal for China's assistance in developing a railroad from the Yunnan, China, border to a western Myanmar port city.

Myanmar and China also signed nine accords, including ones for a $765 million loan and a hydroelectric project. China accounts for almost half of all investment funds that have gone into Myanmar since 1988.

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