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November 2, 2001



China/US: New Dispute Over Spy Plane Pay Offer

Chinese Foreign Ministry spokesman Sun Yuxi urged on Wednesday Washington to reconsider its offer and to "give China due explanations as soon as possible so as to settle the issue properly.

"The decision is unacceptable to China in both form and content," said Sun.

Sun noted that the US told China recently of its decision on the payment issue through its embassy. But the decision was unacceptable to China in both content and form.

China has reiterated its strong dissatisfaction with and firm opposition to the payment.

But the State Department of the United States said on Wednesday it will not add to the US$34,000 it has offered to pay China for costs incurred by a US spy plane which landed at a Chinese base with out China's permission, despite Beijing's rejection of the offer.

China has demanded US$1 million in compensation for keeping and repatriating the EP-3 surveillance aircraft and for expenses of its crew, which stayed in China for 11 days after it bumped into a Chinese fighter jet on April 1. The Chinese pilot died in the crash.

The US State Department spokesman Philip Reeker on Wednesday repeated US insistence on paying only "reasonable costs" -- which officials say is around US$34,000.

"We've made quite clear that we're only going to pay reasonable, tangible costs associated with the recovery of the aircraft, and we believe that our calculation was a reasonable calculation," said Reeker.

"We've presented the offer for reimbursement of costs of the recovery operation to the Chinese. It remains on the table. And it's up to the Chinese as to whether they choose to accept it."

Reeker said US diplomats in Beijing met Chinese Foreign Ministry officials on Tuesday to discuss the matter, but disagreements remain.

Reeker's remarks echoed those on Tuesday of Pentagon spokesman Rear Admiral Craig Quigley, who said: "the Chinese do not agree that that is a fair and reasonable figure, but we do, and that offers remains on the table."

Sino-US relations have been tense since Bush came to power earlier this year after disputes over US weapons sales to Taiwan.

But both sides have recently shown signs that they would like to ease tensions ahead of Bush's planned visit to the Asia Pacific Economic Cooperation forum meeting in October in Shanghai and onward travel to Beijing.

(Chinadaily.com.cn 08/16/2001)

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