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International Rivers Network
International Rivers Network
Linking Human Rights and Environmental Protection
May 8, 2000

Chinese Engineers Petition Government to Delay Three Gorges Dam
New Corruption Scandal further Discredits Wall Street-Financed Project

International Rivers Network
Contact: Doris Shen doris@irn.org
Tel: 510-848-1155 ext 317

A group of 53 Chinese senior engineers and academics has made an urgent appeal to China's leaders to rethink plans for the Three Gorges Dam.

The petition(1) warns that filling the reservoir as planned could have dire consequences for hundreds of thousands of people living in the Three Gorges area and for navigation along the Yangtze River.

The petition was submitted on March 3rd, 2000. About one-third of the signatories are former members of the Chinese Peopleís Political Consultative Conference, the official political advisory body to the state government.

The petition, written by Lu Qinkan, a leading hydrologist who worked on the dam's original feasibility study, calls for a return to the original plan of delaying reservoir filling so that experts would have time to monitor sediment buildup and to determine if higher water levels are viable. This would also provide some relief for resettlement authorities, the experts argue, who are faced with the costly and difficult task of resettling up to 1.8 million people out of the Three Gorges region.

Maintaining the Three Gorges reservoir at 156 meters would reduce the number of people who have to be moved by an estimated 520,000.

The original plan, approved by the National People's Congress in 1992, aimed to keep water levels behind the Three Gorges dam at 156 meters for the first ten years of operation. During this time, experts could evaluate the impact of sedimentation on navigation and ports at the reservoir's uppermost end. If feasible, the water level would then be raised to a final operating level of 175 meters between the dam's 17th and 20th year of operation. In 1997, dam officials changed the plans to maximize the damís power output. The water level is currently scheduled to rise to 175 meters in the sixth year of operation.

Three Gorges Dam proponents have announced that two more dams will be built on Yangtze tributaries upstream of the Three Gorges reservoir to trap the inflow of sediment. The experts' petition claims the proposed dams will have no effect on sedimentation at the reservoir's upper end.

The petition listing the expertsí concerns comes at the same time as yet another corruption scandal engulfs the dam. The Hong Kong South China Morning Post, revealed on May 3rd that the head official at the Three Gorges Economic Development Corporation (TGEDC) has embezzled at least one billion RMB, about $125 million. The TGEDC, a subsidiary of the Three Gorges Project Construction Committee, and supervised by the Three Gorges Resettlement Bureau, went bankrupt in1999. The company, which employed 2,600 people, has ceased operations.

This news comes on the heels of a government audit that revealed resettlement officials embezzled about $57.7 million - equivalent to 12 percent of the total $488 million resettlement budget. Embezzled money was used to speculate on stocks, real estate and was also transferred to personal accounts.

Earlier this year, the China Business Times reported that Yuan Guolin, who until January 2000 was the deputy general manager of the China Three Gorges Project Corporation, the company responsible for construction and administration of the dam, said the corporation would not be floated on the stock market because of its economic and technical problems. Mr. Yuan also said that a review was needed on whether the project could sell its output after it began generation in 2003.

International environmental and human rights groups have targeted global investment banks including Morgan Stanley Dean Witter, Salomon Smith Barney of Citigroup, Credit Suisse First Boston and Merrill Lynch for their participation in underwriting China Development Bank Bonds in January 1997 and May 1999. China Development Bank lists the Three Gorges Dam as its top loan commitment.

"The U.S. Wall Street financing of non-performing enterprises that were not designed to be effective development tools, but rather, monuments to corruption and political vested interests, is highly irresponsible" says IRN.

"From the beginning, the Three Gorges Dam has been a political project, promoted only by those who would have personal financial and political gain" says Dai Qing, the project's most outspoken critic. Dai Qing's 1989 publication of "Yangtze! Yangtze!", a collection of essays by hydrologists, sociologists, and engineers critical of the project, led to her eleven month imprisonment. Distribution of "Yangtze! Yangtze!" and other criticism of the project's impacts is not allowed. Public access to the state conducted environmental and social impact assessments is denied.

(1) For a copy of the petition, translated and summarized by Canadian NGO Probe International, please see www.nextcity.com/probeinternational/ThreeGorges/tgp/tgp17.html

IRN is currently working with an international coalition of NGOs to halt all foreign support for Three Gorges Dam until public debate of the project is allowed in China and the civil and economic rights of those facing displacement by the project are secured. A North American consumer boycott of Morgan Stanley Dean Witter's Discover Card Credit Services is underway until the company adopts environmental and social policies governing core business operations.

For more information, please see: www.floodwallstreet.org

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