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China fumes at ADB funding of Arunachal project news
18 June 2009

China has flayed Asian Development Bank's decision to grant a $60-million loan for a watershed development project in Arunachal Pradesh, saying the state is a disputed area.

Close on the heels of a meeting of prime minister Manmohan Singh and Chinese president Hu Jintao in Yekaterinburg, Russia where they discussed ways to enhance ties and resolve the boundary dispute, a Chinese government spokesman today warned the Manila-based bank not to interfere in the "political issues" of its members, adding that Arunachal Pradesh was a "disputed" territory between China and India.

"The Asian Development Bank, regardless of the major concerns of China, approved the India Country Partnership strategy which involves the territorial dispute between China and India," foreign ministry spokesman Qin Gang said.

"China expresses its strong dissatisfaction. The action can neither change the fact that China and India have a huge territorial controversy, nor China's fundamental position on the border issues between China and India," Qin said.

"The bank's move not only seriously tarnishes its own name, but also undermines the interests of its members," he added.

China, in fact, had tried to block the $60-million loan for a watershed development project in the Arunachal Pradesh, saying the territorial status of the state was disputed.

ADB's Country Partnership Strategy (CPS), formerly Country Strategy and Program (CSP), includes an indicative rolling country business plan composed of individual technical assistance and loan projects and programmes for priority sectors and/or themes.

Regional cooperation strategies and programmes are prepared for the five subregions covered by ADB's regional departments, to ensure coherence and strategic prioritisation. On the basis of priorities established, ADB assists developing member countries in financing regional cooperation through technical assistance grants and projects loans.

"The term `country,' as used in ADB's context, refers to a member of ADB. It does not imply any view on ADB's part as to sovereignty or independent status," the bank says in a website release.

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China fumes at ADB funding of Arunachal project