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November 15, 1997

Gigantism on the Yangtze

A milestone was reached recently when China's Yangtze River was diverted to a side channel to make way for construction of the world's biggest dam. The rhetoric of Chinese leaders at the riverside ceremonies revealed an outdated Communist pride in gargantuan engineering projects and a stubborn belief that sheer size testifies to the vitality of the political system.

The Three Gorges Dam, which will cost at least $25 billion, will be 600 feet high and more than a mile wide, creating a lake nearly 400 miles long. More than 1.2 million people will be forced to move. The project will generate 18,200 megawatts of electricity, supplying a tenth of the nation's energy output. But the promised benefits of abundant power and seasonal flood control could be better achieved by building several smaller dams on the tributaries of the Yangtze.

President Jiang Zemin, an electrical engineer by training, proclaimed that the project "vividly proves once again that Socialism is superior in organizing people to do big jobs." Prime Minister Li Peng, also an engineer and the dam's chief promoter, declared that diverting the Yangtze "demonstrates the greatness of the achievement of China's development." Criticism of the dam is considered a crime. Debate has been banned, and critics have been imprisoned for writing about it.

Chinese and international observers worry that heavy silting could compromise the dam's operation and increase the risk of a catastrophic collapse in a heavy flood. There are other potential problems, including water pollution from raw sewage that would be pumped into the reservoir, the loss of a magnificent stretch of the river, and the destruction of hundreds of cultural and archeological sites, some 6,000 years old.

The environmental hazards are so great that the U.S. Export-Import Bank has refused to finance loans for the project, and the World Bank has declined to participate. But Beijing has managed to get private foreign financing for the dam through bonds issued by the State Development Bank of China. A coalition of 45 international groups, including the International Rivers Network and the Sierra Club, is calling on American financial institutions to stop underwriting those bonds. Public pressure in Japan led one investment house to back away from underwriting a second bond offering for the State Development Bank.

The Three Gorges project faces major obstacles that could delay its completion. Official cost estimates have doubled in three years, and while the project remains a political symbol for China's leadership, the weight of its financial and technical problems is inescapable. Opposition from abroad that halts the flow of foreign financing could still have an impact that would be healthy for the global environment and, in the long run, for China's people and its economy.



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