By Matthew Russell Lee
www.innercitypress.com/unrus1paulson020210.html
UNITED NATIONS, February 2 -- Buried in the just released memoir of former U.S. Treasury Secretary Henry Paulson is the allegation that in August 2008 Russia asked China to join with it in dumping on the market the securities of Fannie Mae and Freddy Mac.
While Paulson does not draw the connection, it was in August 2008 that Russia's conflict with Georgia about the territories of South Ossetia and Abkhazia flared up into a war. The U.S. Administration jumped to Georgia's defense, at least verbally, and according to Paulson, Russia try to lure China into a "dump the GSEs" campaign. As it turned out, Russia did sell its over $60 billion stake in the two mortgage giants.
Inner City Press asked a senior Russian representative to the UN about Paulson's story on February 2, as the Security Council met about its program of work for February. "I don't think so," the diplomat said.
Why then would Paulson tell the story? "We are getting closer with the U.S.," the diplomat said. "People get jealous." He went on, "We don't have a good relationship with China right now. The U.S. does not have a good relationship with China." He shrugged. "People don't want Russia and the U.S. to get along."
Paulson sources his story in "On the Brink: Inside the Race to Stop the Collapse of the Global Financial System" to the Chinese, bragging perhaps that they hadn't gone along with Russia's urging. So, in this view, was China trying to drive a further wedge between Russia and the U.S.?
At the time of the South Ossetia and Abkhazia conflict, through which Russia recognized both territories as countries independent from Georgia, China expressed unease. What if Tibet or Taiwan, or even Uighur Xinjiang Autonomous Region, were similar recognized by another state?
If Chinese officials did in fact pass dirt about Russia along to the U.S. Treasury Secretary, perhaps the disagreement about recognizing breakaway separatist states explains it. It's something that should be expected to be covered more in the media, as Paulson hawks his book. It is may arise further at the UN -- watch this site.
