PRESS DIGEST-Financial Times, Wall St Journal Asia editions

SINGAPORE, Aug 7 (Reuters) - The Financial Times and the Wall Street Journal carried the following stories in their Asia print and/or Web site editions on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL TIMES (www.ft.com)

-- Many of the world's biggest banks, including Goldman Sachs (GS.N), Citigroup (C.N) and JP Morgan Chase (JPM.N), are proposing reforms that would limit the size and scope of their businesses in one of the most dramatic responses to the credit crisis.

-- Hon Hai (2317.TW), the world's largest electronics contract manufacturer, has pledged to invest at least $3.2 billion in Taiwan, including a new town for 240,000 people, in a strong vote of confidence in the deregulation programme of Taiwan's new government.

-- The aviation industry will not be able to "survive in its current form" in the face of surging jet fuel prices, the chairman of Cathay Pacific (0293.HK) warned, echoing recent comments made by other airline executives.

-- American International Group (AIG.N) and Freddie Mac (FRE.N) damped hopes for an easing of the financial crisis after reporting another quarter marked by billions of dollars of credit-related writedowns and substantial losses.

WALL STREET JOURNAL (www.wsj.com)

-- U.S. President George W.Bush will express his concern about the fate of political dissidents in China and his determination to bring an end to the "tyranny" of the military regime in Myanmar in a major policy speech designed to assure the U.S. Asian allies of its continuing commitment to the region.

-- Political tensions rose in Pakistan as President Pervez Musharraf sent mixed signals over whether he would attend the opening ceremony of the Beijing Olympics and his opponents in the ruling coalition drew closer to an agreement to begin impeachment proceedings against him.

-- The Olympic flame approached the final destination of its long and sometimes contentious global tour, greeted by rapturous crowds and tight security in Beijing.