"It is not true that China would use its foreign reserves as a political weapon. For China, safety, liquidity and investment returns are the priorities of its foreign exchange reserve management."

Report of Xinhua News Agency dated on August 12, quoting an anonymous official of China's central bank

"A blitz diversification of foreign exchange reserves for the purpose of threat or retaliation should never be a choice of China, as only a gradual process in this field conforms to China's national interests."

Zhang Ming, researcher with the Chinese Academy of Social Sciences

"Price rises of grain [used as animal feed] have remained stable and therefore it is not

rising costs, but a growing supply-demand gap of food products that has pushed up the price index."

Zhu Baoliang, Chief Economist with the State Information Center, challenging expectations that interest rate hikes will ease the surging inflation in China after the growth rate of

consumer price index reached 5.6 percent in July, the highest in a decade

"It is unlikely that we are out of the woods yet, as it will only take some bad news on hedge funds, or funding problems to reignite fears."

Stuart Bennett, economist at the investment bank Calyon, in response to world stock market tumbles in mid-August caused by

reemergence of rumors that more banks and hedge funds had been hit by financial losses from bad investments in high-risk U.S. sub prime home loans

"Here is a question of winning hearts and minds

of people."

Pakistani President Pervez Musharraf, calling

for tribesmen to assist the military in defeating

terrorism and discouraging extremism along the Afghan-Pakistani border at a meeting of 700 tribal leaders from both countries in Kabul on August 12

"A variety of natural disasters have affected 300 million people, destroyed 3 million homes and cost 20 million yuan in direct economic losses every year to China over the past 15 years."

The 11th Five-Year Plan (2006-10) for Disaster Relief Outlines of China

"Goodbye, good riddance."

Democratic presidential candidate John Edwards, responding to the August 13 quit of Karl Rove, the master political strategist behind President Bush's two election triumphs who was accused by opponents of devising a political strategy that has left the country more divided