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ADB in hot water for border funding
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11:25, June 19, 2009

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China is "strongly dissatisfied" with the Asian Development Bank (ADB) over its involvement in an area disputed by China and India, Foreign Ministry spokesman Qin Gang said yesterday.

Qin was responding to funding approved by the ADB's board on Tuesday.

"The ADB, regardless of China's grave concerns, adopted the Country Partnership Strategy for India (2009-2012), which involves disputed areas between China and India. China is strongly dissatisfied with it," Qin said.

In March, after Chinese objections, the ADB postponed discussion of the funding because it included a $60 million watershed development project in disputed "Arunachal Pradesh".

But the ADB board approved the $2.9 billion plan, including the financing of projects in "Arunachal Pradesh" this week.

"The ADB's passing of the plan has seriously impaired the reputation of the ADB and has hurt the interest of its member," Qin said.

Ye Hailin, an expert in international studies with the Chinese Academy of Social Sciences, said the border dispute had existed for a long time and any activation of it was "relatively undesirable".

He said India had been trying to squeeze China on the issue via military, economic and diplomatic means, by deploying more troops, building infrastructure in the area and organizing visits to the area from Indian officials.

ADB External Relations Principal Director Ann Quon said the ADB will issue guidelines for staff on dealing with activities in disputed areas.

Xinhua contributed to the story

Source:China Daily

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