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China expresses "strong dissatisfaction" over ADB loan to India
BEIJING: China has expressed "strong dissatisfaction" over the Asian Development Bank's decision to approve a $2.9-billion funding plan for India which includes projects in parts of Arunachal Pradesh still under dispute between the two countries.

The Chinese government said on Thursday the ADB had "tarnished" its name by approving the plan and urged the bank to reconsider its decision.

The ADB's Board of Directors met on Monday to approve India's country strategy for 2009-12, which includes a $60 million flood-management programme in Arunachal Pradesh. China still has claims on parts of the State, and talks to resolve the long-running border dispute between the two countries have made little progress.

The Chinese government accused the bank of playing politics by granting approval for India's projects. Foreign Ministry spokesman Qin Gang said on Thursday China expressed "strong dissatisfaction" over the decision.

"The Asian Development Bank, as a regional developmental institution, should not interfere in the political affairs of members," he said. "The bank's move not only seriously tarnishes its own name, but also undermines the interests of its members."

Mr. Qin said the outcome "[did] not change the fact that China and India have huge territorial disputes," and could not change China's "fundamental position on the border issue."

The Chinese government "strongly urged" the ADB to "take effective measures to eliminate the negative impact of this move," he added.

But there is still some uncertainty whether the specific projects in the disputed areas will go ahead. Ann Quon, Principal Director, Department of External Relations, ADB, said in an e-mail message to The Hindu that the ADB's Board of Directors had on Monday only given "broad support for the general development thrust and direction of the Country Strategy" for India. Individual projects and programmes, she said, "would require separate approval by the Board of Directors."

Ms. Quon rejected the Chinese government's suggestion that the ADB had in any way involved itself in the political dispute between the two countries. She said "only economic considerations" were relevant to the bank's decision, in accordance with Article 36 of its charter which prohibits the bank from involving itself in the political affairs of its members.

"The ADB takes no position on territorial disputes between its members," Ms. Quon said.

She said the bank would issue "suitable guidelines for its staff on dealing with proposed activities in disputed areas."
Posted by: john frum 2009-06-19
http://www.rantburg.com/poparticle.php?ID=272295