China warns U.S. Taiwan arms sales threaten cooperation

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By Chris Buckley and Jim Wolf Chris Buckley And Jim Wolf   – 1 hr 32 mins ago

BEIJING/WASHINGTON (Reuters) – China warned on Saturday that Washington's announcement of arms sales to Taiwan would seriously damage cooperation between the two global powers, voicing swift and sharp anger at the Obama administration.

The comments were made by Chinese Vice Foreign Minister He Yafei, who said his government was "strongly indignant" about the proposed arms sales to Taiwan, which China considers a breakaway province.

The Obama administration notified the U.S. Congress on Friday of its first proposed arms sales to Taiwan, a potential $6.4 billion package including Black Hawk helicopters, Patriot "Advanced Capability-3" anti-missile missiles, and command-and-control technology.

Beijing quickly responded with a warning the arms sale could jeopardize important bonds of cooperation with Washington, which has looked to China for support in surmounting the financial crisis, dealing with Iran and North Korea, and seeking international agreement on fighting climate change.

Arms sales to Taiwan join trade imbalances, currency values, Internet freedoms, human rights, and Tibet where differences strain ties between the world's biggest and third-biggest economies.

In a move that would further damage links, Obama may also meet exiled Tibetan spiritual leader the Dalai Lama, who China says is linked to Tibet separatist activity.

Friday's arms package is the second U.S. announcement this month of weapons sales to Taiwan. After Washington cleared an earlier sale of Patriots, China tested emerging military technology aimed at destroying missiles in mid-air.

Vice Minister He said the arms sales were "crude interference in China's domestic affairs and seriously harm China's national security" in remarks published on the website of the Chinese Foreign Ministry (http://www.mfa.gov.cn).

Taiwan's Defense Ministry for its part welcomed Washington's decision.

"Its sales of arms to Taiwan gives us greater confidence in pushing for an amicable outcome in our relations with China, and will help promote peace in the Taiwan Strait."

REPRISALS

He did not spell out what reprisals Beijing may mete out against Washington. But he suggested his government's anger would be felt in a number of areas.

"The United States' announcement of the planned weapons sales to Taiwan will have a seriously negative impact on many important areas of exchanges and cooperation between the two countries," said He in the remarks, which were delivered to the U.S. ambassador to China.

"This will lead to repercussions that neither side wishes to see," said He. He urged the U.S. to halt the planned sales.

Among steps that could come quickly, China is likely to curtail fledgling military-to-military ties with the United States.

China postponed a meeting with U.S. defense officials in November 2008 after former U.S. president George W. Bush approved a $6.5 billion package of weapons for Taiwan.

China, the biggest holder of U.S. treasury debt, has shown no signs it would use economic leverage in retaliation.

Ties are already strained over a spat about Internet search engine Google Inc, which earlier this month threatened to shut its Chinese google.cn portal and pull out of China, citing censorship problems and hacking attacks.

Chinese Foreign Minister Yang Jiechi repeated Beijing's position on Internet freedom during a meeting with U.S. Secretary of State Hillary Clinton in London, saying again that China was itself a victim of hacking, the Foreign Ministry said.

"Yang stressed that the Internet in China is open and active," a ministry statement said. "China has its own national condition and cultural traditions and will resolutely manage the Internet in accordance with the law."

Taiwan has been ruled separately since 1949, when Nationalist forces fled to the island, escaping victorious Communist forces. Since then, Beijing has demanded Taiwan accept unification, threatening it could resort to force.

Washington, under a 1979 act of congress, is legally obliged to help Taiwan defend itself but wants the island and Beijing to peacefully settle disputes that have put them on the brink of war at times over the past 60 years.

"These (arms) have been on the list for a long time," said Shane Lee, political scientist at Taiwan's Chang Jung University. "Every time the U.S. sells something to Taiwan, Beijing is going to get upset, to put pressure on the U.S. side."

Taiwan needs U.S. arms as the two sides have not discussed "military trust" despite a thaw in ties since 2008 under the island's China-friendly President Ma Ying-jeou, ruling Nationalist Party (KMT) spokesman Lee Chien-jung said.

Taiwan says China aims 1,000 to 1,500 short-range and mid-range missiles at the island, 160 kilometers (miles) from China at its nearest point. Island officials have also asked the United States for F-16 fighter jets.

"Both sides have agreed to pursue peace, but on the way there are some issues that we both know about, and arms is one of them," Lee said.

"At present, talks are all about trade and economics, and military trust is an item we need to discuss. But until then we've got to build up defense."

U.S. officials have said Taiwan, which lags China in the balance of military power, needs updated weapons to give it more clout when negotiating with Beijing.

(Additional reporting by Ralph Jennings in Beijing, Paul Eckert in Washington and Kelvin Soh in Taipei; Writing by Ben Blanchard; Editing by Jerry Norton)

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美国前财长保尔森：俄曾怂恿中国卖美债被拒绝(图)

外媒报道，美国前财长保尔森出版回忆录《On The Brink》，讲述他在金融危机的决策内幕。他宣称，俄罗斯官员在北京奥运期间，曾向中国建议联手抛售美国两大房贷机构的债券，逼华府出手救“两房”，但被中国拒绝。他还斥责英国政府是令雷曼破产的元凶。

　　逼华府救“两房”北京拒合谋

　　保尔森在书中称赞中国官员在金融危机期间“十分帮忙”。他说，他常与主管金融与经济事务的中国副总理王岐山交谈，王岐山保证不会出售中国持有的巨额美国国债。他写道，他在2008年8月出席北京奥运期间，得悉俄罗斯高级官员向中国政府建议，中俄两国联手抛售房利美及房贷美债券，迫使美国出手拯救两房，但中国政府拒绝这一利用美国金融危机获益的做法。

　　保尔森当年因拒绝出手拯救雷曼而备受抨击。他在书中辩称，英国政府应为雷曼破产负最终责任。他写道，雷曼高层在9月13日和英国巴克莱银行达成协议，将雷曼卖给巴克莱。高盛、摩根士丹利与摩根大通等华尔街巨擘在同一日齐集纽约联邦储备银行，同意与巴克莱一起拯救雷曼。但英国财相戴理德担心，雷曼的毒资产会损害巴克莱银行，并拖垮整个英国银行体系，拒绝应保尔森要求，取消协议需经巴克莱股东表决的规定。保尔森，他在次日便向美国银行家说﹕“英国人搞垮了我们”。

　　“英国搞垮了我们”

　　保尔森表示，他与时任纽约联邦储备银行行长盖特纳及联储局主席伯南克都知道，雷曼爆煲会对金融市场造成巨大破坏，但后果比他们想像的严重得多。他称赞雷曼总裁富尔德“为人直接及优雅”，但他同时指出，富尔德“与许多‘缔造者’一样，把自我与公司紧密结合在一起，富尔德在努力出售公司前等得太久了”。

　　金融危机伴随2008年美国总统大选，保尔森说，他常与民主党总统候选人奥巴马倾谈，对奥巴马“印象深刻”。他说，奥巴马“见多识广、消息灵通、充满自信”，但大选翌日，“奥巴马突然停止与我讲话”。他与奥巴马的对手麦凯恩较少倾谈，与麦凯恩副手佩林更合不来。他忆述﹕“在我首次向她作简报时，她就叫我 ‘汉克’（Hank），虽然大部分人都这样叫我，但基于某些原因，她在电话称呼我的方式，令我愤怒”。