-Caveat Lector-

http://www.worldnetdaily.com/bluesky_smith_news/20001013_xnsof_chinas_she.shtml

China's 'shell game' in Sudan
Beijing still involved in 'genocidally destructive oil project'

By Charles Smith
� 2000 WorldNetDaily.com


Although officials at China's second-largest state-owned oil
company have publicly announced it is giving up its stake in a
controversial oil project in Sudan, human rights organizations
say the move is just a cynical "shell game" designed to avoid
widespread condemnation and to facilitate access to the U.S.
stock market.

Officials at Sinopec recently admitted that a subsidiary of the
state-owned oil giant, Zhongyuan Petroleum Exploration
Administration, had sold its 80 percent share in a small
exploration block named Sudan 6 to China National Petroleum for
an undisclosed amount. The announcement came ahead of a $3.5
billion global stock offer by the Chinese government-owned oil
company scheduled for late October.

"Neither Sinopec or its listed vehicle has investment in Sudan
now," the Sinopec spokesman stated in a Reuters report Wednesday.
"We transferred the oil exploration and development project in
Sudan to CNPC in June."

Chinese government investment in a pipeline and oil refinery in
Sudan raised protests from human rights groups before a
multi-billion dollar stock offering in April by the state owned
PetroChina oil Corporation. The protests forced PetroChina to
remove the Sudanese assets from the stock listing.

Human rights groups say Sudan's Islamic government is using the
Chinese oil revenues to fund its war against Muslim, Christian
and animist rebels. The move by Sinopec to shed its Sudanese
assets brought swift reaction from human rights advocates in the
United States.

"This offering is a new box in the Chinese shell game of 'where's
Sudan?'" stated Dr. Charles Jacobs from the Boston-based American
Anti-Slavery Group, responding to the move by the Chinese state
owned oil firm.

"We know China is a partner in Khartoum's oil development, they
just need to make it hard to find under which cup -- Sinopec,
PetroChina or China National Petroleum -- Sudan is hidden. No one
should be fooled: Investing in any one of these state-owned,
fungible entities, is an investment in Khartoum's campaign to
enslave and slaughter blacks in Sudan."

Last month, WorldNetDaily reported that Exxon Mobil Corp. and BP
Amoco were close to investing several hundred million dollars
into Sinopec.

According to an Aug. 31 Reuters report, Sinopec sources stated
that the state-owned firm planned to raise more than the $3.1
billion PetroChina raised in April 2000 in its stock offering.
The Western investment is part of a planned initial public
offering to raise over $3 billion for Beijing.

"The projected Sinopec IPO shows just how much muscle American
Sudan advocates have developed," stated Eric Reeves, a human
rights advocate working at Smith College in Northampton, Mass.
"It is an extraordinary accomplishment to be able to determine
the terms on which the Chinese attempt to enter the American
capital markets."

According to Reeves, the move by Sinopec will make little
difference in the planned protests against the Chinese oil giant.

"But make no mistake about it. Despite Sinopec's claims to have
transferred their Sudan assets elsewhere, they remain defined by
that Sudan presence, and will be treated accordingly by Sudan
advocates," stated Reeves.

"This so-called 'cut in links to Sudan' reveals nothing more than
the fungibility of tangible assets in the Chinese economic
system. In other words, one state-owned entity simply has moved
out a controversial asset to another state-owned 'corporate
venue' for the purposes of gaining a listing on the New York
Stock Exchange and access to the investment dollars of American
citizens."

"There is a true bottom line," noted Reeves. "The People's
Republic of China is investing heavily in Sudan's genocidally
destructive oil project. And no one should invest in any form of
that Chinese participation, including Sinopec."

There is evidence that Sinopec remains in Sudan despite the
assurances given by communist officials that the oil giant had
sold out. According to a report in Wednesday's Wall Street
Journal, "Chinese Oil Firm Cuts Sudan Links," Sinopec has done
little to hide its Sudanese Zhongyuan operations.

"Zhongyuan still maintains a Sudan office at its headquarters in
China's central Henan province, despite the transfer of some of
its assets to CNPC," the report stated.

"At the Henan office, a Zhongyuan executive says the Zhongyuan
continues to provide services for (the oil site at) Sudan 6. An
official at the commercial section of the Chinese embassy in
Sudan, as well as a Zhongyuan executive on site in Sudan, both
said this week that Sinopec's work has continued on the oil
field. The Zhongyuan official declined to provide further
details, saying the operation 'isn't public information.'"

The move by the Chinese oil giant appears to have failed to
convince human rights advocates that it is out of Sudan.
According to one prominent activist, the Sinopec move is nothing
more than financial camouflage used by the Chinese government,
which is trying to hide the true nature of its Sudanese oil
project.

"We will fight the Chinese accomplices," vowed Jacobs.

"Investors should take note of how our human rights movement
defeated Sudan at the U.N. this week. Khartoum was unexpectedly
trounced. Slavery, even hidden under a Chinese cup, is a bad
investment."


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