China fumes at ADB funding of Arunachal project

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.