Author: Pranab Dhal Samanta
Publication: The Indian Express
Date: May 15, 2009
URL: http://www.indianexpress.com/news/indiachina-faceoff-worsens-over-adb-loan-f/459910/
Introduction: India objects after ADB says
sort out Arunachal issue with China
India and China are headed for a major confrontation
in the Asian Development Bank with Beijing digging its heels in and not giving
its consent to the $2.9-billion India development plan unless the mention
of Arunachal Pradesh is removed from the document.
A sum of $60 million is marked for a watershed
development project, including flood management, for Arunachal Pradesh.
China considers the state "disputed territory"
and wants it to be removed from the document.
The Bank has asked India to resolve the matter
bilaterally provoking a strong reaction from New Delhi. While a board meeting
has been scheduled for June 2, India has let it be known that it would rather
withdraw the entire plan than remove Arunachal Pradesh for the sake of financial
approval.
In March, as first reported by The Indian
Express, China successfully obtained a postponement of a decision on the plan
at the ADB Board meeting but India had hoped that the ADB would resolve the
matter in due course. However, New Delhi was taken by surprise when the ADB
wrote to the government recently that it should use bilateral channels to
find a way out.
It's learnt that India has asked the ADB not
to indulge China on bilateral issues. In the run-up to the June 2 meeting,
India will look to lobby hard with other board members to ensure that the
Chinese objection is overruled. If the conflict isn't resolved, official sources
said, the government may look for alternative funding.
Part of the problem emerges from the fact
that ADB does not have a policy for projects in disputed areas. Being the
largest donor after US and Japan to the Bank, China is clearly using its clout.
India, which is only next to China, will have to lean on the US and Japan
along with South Korea to get its way.
