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Warning as dam project halted [Myanmar]

Author: Teddy Ng, South China Morning Post [Hong Kong], Published on: 5 October 2011

A Chinese company…has warned of potential legal consequences in response to the Myanmese government's sudden decision to halt the joint venture last week…Lu Qizhou, president of the state-owned China Power...Investment Corporation, said…[t]he suspension could lead to sizeable losses for both sides...Myanmese President Thein Sein made the surprise announcement to parliament on Friday that the project...had been shelved because of public concerns the flow of the Irrawaddy River would be threatened, and that the project would flood an area about the size of Singapore…Chinese Foreign Ministry spokesman Hong Lei on Saturday urged Myanmar to protect the legal and legitimate rights of Chinese companies operating there…Thein Sein might be attempting to gain political legitimacy by projecting an image that his government was not controlled by the country's military Myanmese government had become very anxious about perceptions that it was selling out the country's interests to Chinese state firms…

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