-Caveat Lector-

 World Bank Postpones Vote on China

By HARRY DUNPHY Associated Press Writer

WASHINGTON (AP) -- Amid mounting opposition, the World Bank put off until
Thursday a vote on a controversial project to resettle 58,000 poor Chinese
farmers on land Tibetans say is traditionally theirs.

The bank said Tuesday the decision to delay the meeting of the executive
board for two days will enable James D. Wolfensohn, the president of the
182-nation organization, to chair the session. He is in Europe.

But the postponement, requested by senior board member Andrei Bugrov of
Russia, allows more time to find a compromise. Twelve of the board's 24
members, including the United States, France, Germany and Switzerland, urged
Wolfensohn to try to reach a settlement with Beijing.

``For technical and institutional reasons, at this point we do not believe
the project can gain sufficient support from the board,'' their letter to
Wolfensohn said.

Wolfensohn, who has improved the bank's public image since taking over three
years ago, is in a difficult position because the United States, the bank's
largest shareholder, opposes the $160 million project.

Treasury Secretary Robert Rubin told the House Banking Committee last month
the Clinton administration was ``enormously concerned about the project.'' A
U.S. official, who spoke on condition of anonymity, said Tuesday that Jan
Piercy, the U.S. board representative, would cast a ``no'' vote.

China, the bank's largest borrower, has said it will re-evaluate its
relationship with the bank if the project is not approved. Beijing's position
has hardened since U.S.-Chinese relations have deteriorated.

Last weekend, the New China News Agency quoted Vice Finance Minister Jin
Liqun as saying he hoped the board ``will not use the political standard of
the West (and) will not believe in the lies of a small number of people of
the Tibetan exile forces.''

At the center of the controversy is a plan to move the farmers -- each
earning less than $40 a year -- from the crowded over-farmed arid hills in
the eastern half of Qinghai, a remote province in Western China, 300 miles
farther west.

Their planned new home, a sparsely inhabited county called Dulan, has for
centuries been populated by Mongol herders and later Tibetans, two groups who
share a common Buddhist faith. In recent decades, China's dominant Han
Chinese have become the majority.

 AP-NY-06-22-99 1335EDT




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