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DAM-L PRESS ADVISORY MARCH 29, 2001 (fwd)
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Date: Tue, 27 Mar 2001 20:48:20 -0800 (PST)
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Subject: PRESS ADVISORY MARCH 29, 2001
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PRESS ADVISORY
International Rivers Network
March 29, 2001
Doris Shen
(510) 848-1155 ext 317
ARRESTS, INTIMIDATION CONFIRM HUMAN RIGHTS ABUSES AT THREE GORGES DAM
U.S. FIRM MORGAN STANLEY URGED TO CEASE FINANCING OF YANGTZE MEGAPROJECT
A recent report by Chinese journalist Wang Yusheng details how five
representatives from a town slated to be submerged by Three Gorges Dam have
been arrested for organizing petitions protesting corruption in the
resettlement program. IRN has written to Wall Street firm Morgan Stanley
insisting that their funding of the dam makes them complicit in these human
rights abuses and urging the firm to cease their support of the dam. (see
attached letter)
In early March, eight farmers elected from Yunyang County planned to travel
to Beijing to present party officials with petitions detailing resettlement
grievances in their township. Over the past four years, villagers across
the areas slated to be submerged have been organizing themselves into
unauthorized associations to protect their interests. The associations
have already sent numerous petitions to Beijing protesting corruption by
local resettlement officials.
If completed, Three Gorges Dam would displace close to 2 million people,
the largest forced resettlement for a single project in the world.
Before the eight representatives could leave their township, county police
arrived to arrest them. Two were caught. Three representatives, including
He Kechang who is seen as the local organizer of the petitions, escaped to
the city of Yichang, from where they intended to travel to Beijing. At
Yichang, He was attacked and robbed by two men he believes to have been
sent by Yunyang county officials. He and his two fellow representatives
escaped from the thugs but were then arrested at their hotel by Yunyang
county police. The three are expected to face jail sentences of three to
seven years for "disturbing Three Gorges resettlement."
To speed up the process of evictions, the secretary general of Yunyang
County in January issued a mandate of "government sanctioned
resettlement." This allows resettlement officials to use police force to
relocate villagers. Anyone opposing resettlement can now be charged as a
criminal.
In light of the recent arrests, IRN wrote to Wall Street bank Morgan
Stanley on March 26, 2001, calling on the firm to immediately cease all
direct and indirect financing of Three Gorges Dam.
Since 1995, China International Capital Corporation (CICC), which is 35%
owned by Morgan Stanley, has served as an advisor on overseas fund raising
for the Three Gorges Project Development Corporation. In January 1999, CICC
purchased $250 million in bonds for the Three Gorges Project Development
Corporation. Board members of CICC include Morgan Stanley executive management.
China Development Bank, a state owned bank established to finance large
scale infrastructure projects, lists the Three Gorges Dam as its top loan
commitment. In 1997 and 1999, US investment firms, including Morgan
Stanley, helped underwrite $830 million in CDB bonds. Most recently, in
February 2001, CDB announced plans to auction $22 billion in bonds.
IRN has asked Morgan Stanley to clarify whether either CICC or Morgan
Stanley is involved in purchasing these latest CDB bonds.
Project authorities state that they need to raise almost a quarter of the
dam's official price tag of $24.5 billion from overseas.
"The arrests of the Yunyang county representatives are a clear example of
the violation of rights to freedom of expression and association. Morgan
Stanley is complicit in these and other human rights violations if they
continue to back Three Gorges Dam," said Doris Shen, IRN's Three Gorges
Campaigner.
-30-
Wang Yusheng's original report is available at www.hk-sanxia.org
An English translation of the report can be found at
http://www.probeinternational.org/pi/index.cfm?DSP=content&ContentID=1894
For more information on US financing of Three Gorges
Dam www.floodwallstreet.org
Letter to Morgan Stanley:
March 26, 2001
Philip J. Purcell
Chief Executive Officer
Morgan Stanley & Co. Inc.
1585 Broadway, 40th Floor
New York, NY 10036
Dear Mr. Purcell,
In light of recent evidence of human rights abuses at Three Gorges Dam, we
are writing once more to urge Morgan Stanley to commit to no future bond
underwriting or financial support for China Development Bank, a major
financier of Three Gorges Dam. According to recent reports (see enclosed
articles) five people have been detained by police for organizing petitions
on Three Gorges resettlement problems. Articles 19 and 21 of the United
Nations Human Rights Declaration list the freedoms of expression and
peaceful association as inherent and inalienable human rights. The reports
clearly demonstrate how project authorities suppress freedom of expression
and association of those involved in the resettlement process.
The China Development Bank (CDB) lists the Three Gorges Project Development
Corporation as its top loan commitment. China International Capital
Corporation (CICC) has, since 1995, been the financial advisor to the Three
Gorges Project Development Corporation on overseas capital raising. Since
Morgan Stanley is a 35% holder in CICC, and since Morgan Stanley was a
participating underwriter of $830 million in CDB bonds in 1997 and 1999, we
call on Morgan Stanley to refrain from being involved in purchasing and
underwriting CDB bonds while funding from those bonds are leading to
construction of Three Gorges Dam. We also recommend that Morgan Stanley
communicate to Chinese authorities and to CDB representatives that it will
not assist in fundraising for Three Gorges Dam.
In February 2001, Bloomberg News reported CDB's plans to auction 185
billion yuan (22 billion USD) denominated bonds. Most recently, on March
12, 2001, CDB announced the auction of 12 billion yuan in bonds. Given the
concern of CICC's financial advising on capital raising for Three Gorges
Dam, has either CICC or Morgan Stanley been involved in purchasing CDB
bonds? While US investment banks cannot buy RMB denominated bonds, please
clarify whether Morgan Stanley, through its joint venture China
International Capital Corporation, have been able to buy such bonds.
We ask you to commit to no future direct or indirect financing for Three
Gorges and China Development Bank, immediately. Thank you for your
attention to this matter, and we look forward to your reply.
Sincerely,
Doris Shen
Three Gorges Campaign
International Rivers Network
Enclosures: March 22, 2001 South China Morning Post, Jasper Becker
"Three Gorges Petitioners 'held by police'"
March 23, 2001 Three Gorges Probe, Wang Yusheng
"Three Gorges Dam Petitioners Abducted"
Cc: Peter Clarke, Chief Executive Officer, China International Capital
Corporation
Donald Kempf, Chief Legal Officer and Secretary, Morgan Stanley
William J. O'Shaughnessy, Jr., Principal, Morgan Stanley
John Beneke, Principal, Morgan Stanley
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