EIR Daily Alert Service, November 10, 2017, Friday


Trump in China: ‘A Gigantic Step in the Right Direction’

Nov. 9 (EIRNS)—In her weekly “New Silk Road Spirit” webcast today, Schiller Institute Chairwoman Helga Zepp-LaRouche addressed the enormous strategic importance of President Donald Trump’s state visit to China and his meeting with President Xi Jinping, describing the U.S. President’s trip as “a gigantic step in the right direction,” even while, as she noted, “there has not yet been any direct mention of the United States working with the Belt and Road Initiative as such … I know that that is the mindset of President Xi, and I think that also coming out of the 19th National Congress of the Communist Party of China, where Xi Jinping has made the goal by 2050 to build a ‘community of a shared future of mankind.’ ”

Zepp-LaRouche pointed out that, “I think the Chinese really know how to bring into the consciousness, the 5,000-year history of China, and Trump was treated really very well.” The U.S. President’s visit and the deeper rapport and personal relationship he established with Xi, has “moved human history forward,” she said, something the cynical and absurd U.S. and Western media are incapable of comprehending. Western journalists “should just go and be ashamed of themselves,” Zepp-LaRouche said, “because they are so cynical that nothing will ever move their hearts and minds.”

The reality, Zepp-LaRouche said, is that, on the second day of President Trump’s historic visit to China, “I think it is exactly what I expected would happen: That both sides know perfectly well that the future of mankind depends on the relationship between the United States and China, as the most important two nuclear powers and economic powers in the world. And I think it went very well. The statements by President Xi Jinping characterizing the meeting as a strategic new beginning, a mutually beneficial relationship of historic importance which can solve not only the problems of the two peoples, but of the whole world, I think this is absolutely to the point. And President Trump was very enthusiastic: He praised China and its great President, who, according to his Tweet, he has a very warm feeling toward—this is really good. Because if the two Presidents understand each other and can make it work, then I fully agree, there is no problem in the world which cannot be tackled.”

Of additional significance is the now-very likely meeting between Presidents Trump and Putin on the sidelines of the APEC summit in Vietnam, which, Zepp-LaRouche noted, could also represent a major breakthrough. In an article published yesterday, reported on in greater detail below, Putin also laid out the proposal that Russia will present to the APEC summit for the development of Russia’s Far East, with exciting potential for expanded cooperation among Asian nations in the context of the Belt and Road Initiative and what Putin calls the “Greater Eurasian Partnership.” This is something to which the U.S. should also pay attention.

Trump and Xi also agreed to not only improve and strengthen the personal relationship between them, but also to increase the cooperation on all levels, to strengthen the four permanent dialogues which were established when the two met in Mar-a-Lago in Florida last April. So, Zepp-LaRouche emphasized, “I think an absolute basis has been laid to continue to develop this relationship to the benefit, not only of China and the United States, but really for the whole world.” The two Presidents agreed on the need to resolve the North Korea problem, on which they want to work together, and Trump expressed confidence that with the help of China and Russia, the problem can be resolved in a positive way.

With President Putin’s announcement coming on top of the Trump-Xi meeting, Zepp-LaRouche emphasized that “what is clearly emerging is more and more an integrated economic new system … the center of strategic importance is clearly moving towards Asia right now.” She expressed optimism that if the Trump-Xi relationship continues to expand, and that if the U.S.-China-Russia triangle can be consolidated, “then maybe India will change its mind, and maybe even the Europeans will get onboard, then we can enter a completely new set of relationships among countries.” It is about time, she said, “that we give mankind an order which is worthy of the character of the human species.”


Xi Jinping: Sino-U.S. Relations Are ‘At a New Historic Starting Point’

Nov. 9 (EIRNS)—Chinese President Xi Jinping has characterized the official visit of President Donald Trump to China, as a “new historic starting point” for Sino-U.S. relations. Xi has given Trump an unprecedented welcome. Trump’s arrival ceremony was broadcast live on Chinese national television, something that has never happened before.

The two Presidents held their summit today. “China is willing to work together with the United States to respect each other, seek mutual benefit and reciprocity, focus on cooperation, and manage and control differences,” Xi said during talks with Trump. “We believe Sino-U.S. relations concern not only the well-being of both peoples, but also world peace, prosperity and stability.” Xi said that he and Trump agreed that cooperation is the “only correct choice” for China and the United States, and a better future would only be achieved through “win-win cooperation.”

While they agreed that heads-of-state diplomacy will be the leading edge in developing bilateral relations, Xi explained that they also agreed to increase exchanges at various levels, giving a full play to the four high-level dialogue mechanisms—the diplomatic and security dialogue, the comprehensive economic dialogue, the law enforcement and cybersecurity dialogue, and the social and people-to-people dialogue. They will also expand cooperation in trade, the military, law enforcement and people-to-people exchanges, among other areas.

They agreed to strengthen cooperation dealing with issues pertaining to the Korean Peninsula and Afghanistan. They reiterated their firm commitment to the denuclearization of the Korean Peninsula and solving the nuclear issue through dialogue and negotiation. They also expressed support for the protection of peace and stability in the South China Sea.

Trump for his part said: “There can be no more important subjects than China-U.S. relations. We have a capacity to solve world problems for many years to come.”

Trump reaffirmed the one-China policy of his government.

While Trump decried China’s “one-sided and unfair” trade surplus with the United States, he told President Xi “I don’t blame China…. After all, who can blame a country for being able to take advantage of another country for the sake of its citizens?”

Reuters quotes Trump as telling his host: “The United States really has to change its policies, because they’ve gotten so far behind on trade with China and frankly with other countries. And I have great respect for you for that, because you are representing China. But it’s too bad that past administrations allowed it to get so far out of kilter.”

On North Korea, President Trump said: “We must act fast. And hopefully China will act faster and more effectively on this problem than anyone…. China can fix this problem easily and quickly, and I am calling on China and your great President to hopefully work on it very hard. I know one thing about your President: If he works on it hard, it will happen. There’s no doubt about it.”

A Wholly Unprecedented State Visit

Nov. 9 (EIRNS)—On Wednesday, Nov. 8, China’s President Xi Jinping closed down Beijing’s whole Forbidden City—the world’s largest palace complex—so that President and Mrs. Trump could tour it and learn about Chinese history and culture.  This has never before been done in all of Chinese history, back to the creation of the Forbidden City in the 17th century.

The Chinese government had defined the Trump visit as a “state visit-plus.” But what is a state visit-plus? This has never happened before since the foundation of the People’s Republic in 1949.  On Nov. 8, the South China Morning Post (SCMP) quoted expert Lu Xiang, a researcher at the Chinese Academy of Social Sciences, saying “The idea of a state visit-plus itself, is a plus to China-U.S. relations as it is all new…. Now it seems that the visit by Trump will be higher than the highest-level visit.”

The first stop of the two Presidential couples in the Forbidden City was for a brief tea.  Here, Trump took out his smartphone to show President Xi and his wife, leading musician Peng Liyuan, a series of songs and recitals performed in Mandarin by Trump’s six-year-old granddaughter Arabella Kushner—who began by dedicating her performance to “Grandpa Xi” and “Grandma Peng.” (A single Chinese post of this video, by state news agency Xinhua, had alone generated 11.69 million views by Thursday evening.)  Chinese experts quoted by the Chinese press noted that when families are very close, they share the achievements of their grandchildren. Wu Xinbo, director of the Center for American Studies at Fudan University, told the SCMP, “Three generations of the Trump family met Xi, which was very personal.” Others highlighted that President Trump’s family had shown its high regard for the achievements of Chinese culture by the way in which they had educated Arabella Kushner.

Later, the two Presidential couples heard selections from the renowned Peking Opera in one of the four opera houses within the Forbidden City. Afterwards, a group of children who were part of the performance came out and said, “Welcome to China! I love you!”

President Trump’s statements, especially his tweets, emphasize the extraordinary character of this meeting. Trump tweeted a message for Xi saying, “THANK YOU for the beautiful welcome China! @FLOTUS Melania and I will never forget it!”

“My feeling toward you is an incredibly warm one. As we said there’s great chemistry and I think we’re going to do tremendous things for both China and the United States.”

In a video statement shared by the U.S. State Department, the U.S. President confirmed: “Our meeting this morning in front of your representatives and my representatives was excellent in discussing North Korea, and I do believe there’s a solution to that as you do.

“I think we are going to do tremendous things for both China and for the United States…. I’m looking forward to many years of friendship and working together to solve not only our problems, but world problems, and problems of great danger and security.”

Russian President Putin Proposes To Integrate APEC through Belt and Road Initiative

Nov. 9 (EIRNS)—Russian President Vladimir Putin wrote an article posted yesterday on the Kremlin website, and published in multiple news agencies and media, laying out Russia’s role during the 25th APEC Economic Leaders’ Meeting in Da Nang, Vietnam, entitled: “The 25th APEC Economic Leaders’ Meeting in Da Nang: Together Towards Prosperity and Harmonious Development.”

While opening with statements on Russia’s intentions to cooperate with the nations of the APEC and supporting a free trade agreement, he qualified this, explaining: “Of course, the large-scale project to create the APEC free trade area should be carried out with due account of the experience gained from implementing key integration formats in the Asia-Pacific region and Eurasia, including the Eurasian Economic Union, in which Russia cooperates with Armenia, Belarus, Kazakhstan and Kyrgyzstan….

“On a related note, I would like to mention our idea to create the Greater Eurasian Partnership. We suggested forming it on the basis of the Eurasian Economic Union and China’s Belt and Road Initiative. To reiterate, this is a flexible modern project open to other participants.

“Comprehensive development of infrastructure, including transport, telecommunications, and energy, will serve as the basis for effective integration. Today Russia is actively modernizing its sea and airports in the Russian Far East, developing transcontinental rail routes, and building new gas and oil pipelines. We are committed to implementing bilateral and multilateral infrastructure projects which will link our economies and markets. Among other projects, I am referring to the Energy Super Ring that unites Russia, China, Japan, and the Republic of Korea, and the Sakhalin-Hokkaido transport link….

“For Russia, the development of our Far East is a national priority for the 21st century. We are talking about creating territories of advanced economic growth in that region, pursuing large-scale development of natural resources, and supporting advanced high-tech industries, as well as investing in human capital, education and healthcare, and forming competitive research centers.

“We hope that our foreign partners, primarily from APEC economies, will play an active role in implementing these programs and projects. All the more so, as foreign participants of the annual Eastern Economic Forum held in Vladivostok already had a chance to gain confidence in the prospects and feasibility of our plans….”

On cultural cooperation Putin wrote: “We attach special importance to strengthening our cultural ties and expanding our contacts in the sphere of science and education. Looking ahead, we will focus on forming a common APR education space, one of whose centers could be the Far Eastern Federal University.”

A Large Chinese Business Delegation at the APEC Summit Expected To Have Major Impact

Nov. 9 (EIRNS)—China has sent over 300 business representatives to this year’s Nov. 10-11 APEC CEO Summit in Da Nang, Vietnam, where Chinese President Xi Jinping will deliver a keynote address on Nov. 10. These 300 delegates will represent 176 Chinese enterprises. Sun Xiao, Director General of the Department of Cooperation and Development of the China Chamber of International Commerce, said in a press conference on Nov. 9 in Da Nang that among the Chinese business delegates who are attending this year’s summit, are representatives from the State Grid Corporation of China; Huawei; the Bank of China; and the Aluminum Cooperation of China. The Chinese delegation will be the largest of all the foreign groups.

“It is a reflection of the importance laid on China and the recognition of China’s influence by the Asia Pacific region,” said Sun Xiao, People’s Daily reported today.

The president of China Railway Signal & Communication Corp. Ltd. Yin Gang told People’s Daily that China will definitely have a profound impact on the Asia-Pacific region as it enters a new era of socialism with Chinese characteristics. The Belt and Road Initiative proposed by Xi Jinping offers broad space and substantial opportunities for both Chinese and U.S. enterprises, said Richard Smith, President and CEO of Global Trade Services at FedEx Express.


President Xi Knows a Crash Is Coming, and Is Trying To Protect China

Nov. 9 (EIRNS)—The biggest change in the Chinese government since the 19th Congress of the Chinese Communist Party has been the creation of a super-financial regulatory agency, which outranks all existing regulatory agencies—and in fact outranks the ministries of the Chinese government as well.  Today’s South China Morning Post(SCMP) calls it the Financial Stability and Development Committee under the State Council.  It convened its first meeting this week under Ma Kai, whose position as Vice-Premier raises the committee above cabinet level.  But Ma is 71 and due to retire in March. SCMP and Bloomberg News believe that the man to succeed him will be Liu He, 65, Xi Jinping’s “trusted economic lieutenant,” and intimately involved for Xi in relations with the United States.  Liu was just elected to the 25-member Politburo, “creating an opportunity for his election as Vice-Premier at the annual meeting of China’s legislature in March.”

Much of the media link the formation of the new super-regulatory body with supposedly high levels of debt within China, and with lapses of its existing regulatory bodies in the recent period, but they are missing an important element.

The committee’s mandate is as follows, according to a Chinese government statement translated by Bloomberg News.

  • To deliberate major reform and development for the financial sector;
  • Coordinate financial reform, development and regulation, coordinate issues concerning monetary policy, coordinate the making of financial policies and related fiscal and industrial policies;
  • Analyze international and domestic financial situations, address international financial risks, conduct policy research on systemic risk prevention and treatment; and
  • Guide local financial reform, development and regulation.

Schiller Institute Chairwoman Helga Zepp-LaRouche observes that Xi Jinping has noted repeatedly at international conferences that the causes of the 2008 financial meltdown have still not been rectified.

Creditors Order Athens To Seize Greeks’ Private Homes

Nov. 9 (EIRNS)—Greece’s creditors have given the Greek government an ultimatum to proceed with electronic foreclosures on homes later in the month or else the country’s third bailout review will not be concluded. This policy, whose legality has been questioned, will mean the seizure of thousands of homes, but also crash the already-collapsed real estate values.

“If the Greek government has the will to protect notaries it will find the way to achieve this,” a source told Kathimerini, and that “if they want to stop the violence they can do it.” The sources told Kathimerinithey expect to see foreclosures beginning on Nov. 27 “at all banks and throughout the country and not just isolated cases.”

In the past, strikes by lawyers and notaries, and demonstrations by anti-austerity protesters have hindered the foreclosures.

The ultimatum, however, appears to have motivated the government to take action, so that foreclosures resume and notaries are protected as sources said that all necessary measures will be taken to “ensure strategic debt defaulters do not hide behind the attacks against notaries.”


Trump and Xi Committed To End U.S. Opioid Crisis

Nov. 9 (EIRNS)—At the summit meeting between U.S President Donald Trump and China’s President Xi Jinping, the two leaders committed themselves to trying to end the opioid crisis in the United States. On Oct. 26, President Trump had declared the opioid epidemic a national public health emergency, telling an audience in the White House that “we can be the generation that ends the opioid epidemic. This epidemic is a national health emergency. Nobody has seen anything like what is going on now,” according to CNN.

Upon declaring the public health emergency, Trump had also pointed out that fentanyl, a major cause of opioid-related deaths in the U.S, comes in from China. At that time, he also said he intended to discuss stopping “the flood of cheap and deadly fentanyl manufactured in China” in his meeting with President Xi Jinping during his state visit to Beijing.

Following the Trump-Xi meeting in Beijing on Nov. 9, while standing next to President Xi, Trump said, “Every year drug trafficking destroys millions and millions of lives. Today, President Xi and I discussed ways we can enhance coordination to better counter the deadly drug trade and to stop the lethal flow of poisonous drugs into our countries and into our communities,” Reuters reported.

Speaking later to reporters, U.S. Secretary of State Rex Tillerson said: “On the critical issue of opioids, we made some good progress to curb the flow of harmful narcotics into the United States in order to save American lives. The President [Xi] committed to taking new actions, including agreements to control the export and movement of fentanyl precursors, sharing intelligence on drug trafficking, and exchanging trafficking information,” Reuters reported.


‘Largest Famine in Decades’ Looming in Yemen

Nov. 9 (EIRNS)—Contrary to the Saudi contention (unfortunately endorsed by the White House) that the Nov. 4 attempted ballistic missile attack on Riyadh from Houthi-controlled territory in Yemen was an escalation by Iran, the reality is that it is the Saudis who are committing crimes against the civilian population in Yemen. This reality was delivered to the UN Security Council yesterday by UN Under-Secretary General for Humanitarian Affairs Mark Lowcock, who warned that if the Saudis don’t lift their blockade of Yemen, it would result in “the largest famine the world has seen for many decades with millions of victims.” Lowcock briefed the UNSC behind closed doors, but told reporters afterwards that he had told the council that “unless those measures are lifted … there will be a famine in Yemen. It will be the largest famine the world has seen for many decades with millions of victims.”

After Lowcock’s briefing, Italian UN Ambassador Sebastiano Cardi said that the Security Council “emphasized … the importance of keeping all Yemen’s ports and airports functioning, including Hodeidah port, as a critical lifeline for humanitarian support and other essential supplies.”

Sputnik reported yesterday that the Saudis had opened the port of Aden for the transit of relief supplies, but Aden is in the area controlled by the puppet Saudi government. There’s no word on whether the Saudis will allow the Red Sea port of Hodeidah or the international airport in the capital of Sana’a to be opened. Both are in territory controlled by the government in Sana’a which the Saudis oppose.

Back in Washington, Rep. Ro Khanna (D-CA) told Bloomberg on Nov. 7 that the House of Representatives could be voting on a non-binding resolution as early as next week, that states that U.S. military involvement in the Yemen war is not authorized by the 2001 Authorization for Use of Military Force (AUMF) that was passed immediately after the 9/11 attacks. The non-binding resolution, composed with involvement of House leadership from both parties, replaces H.Con.Res.81, the resolution blocked by the House leadership last week, that would have directed the pullout of U.S. military forces involved in the Yemen conflict.


Chinese Companies To Help Sudan Complete Trans-Saharan Railway Feasibility Study

Nov. 9 (EIRNS)—Two Chinese companies, China Railway Design Corp. (CRDC) and China Friendship Development International Engineering Design & Consultation Company (FDDC), have signed a deal with the Sudanese Railways Authority to complete within 12 months a feasibility study of the 3,400 km Trans-Saharan Railway that would stretch from Port Sudan, a principal port city located on the Red Sea, to the Sudanese city of Nyala, close to the Chad border.

The Chad line, from its capital, N’Djamena, would join Sudan’s network at Nyala across the border. The lines are to be built to standard gauge and will allow trains to run at 120 kmh, Global Construction Review reported today.

In March 2012, Chad reached an agreement with the China Civil Engineering Construction Corp. to build its portion of the line to the Sudanese border, after which it would join the Sudanese system at Nyala. The estimated $5.6 billion cost of the line was thought likely to be met by the Import Export Bank of China. Then, again, in 2014, Sudan reached a political agreement with Chad to link their capitals with Port Sudan with a later extension to the Atlantic Ocean ports of Cameroon. However, neither of these proposals could be implemented due to rebel activities in the area.

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