DATE=12/16/1999 TYPE=CORRESPONDENT REPORT TITLE=CHINA-U-S COMPENSATION UPDATE (L) NUMBER=2-257208 BYLINE=STEPHANIE HO DATELINE=BEIJING CONTENT= VOICED AT: INTRO: The United States and China have reached an agreement on compensation for property damage, caused when NATO bombs hit the Chinese embassy in Yugoslavia in May. V-O-A's Stephanie Ho reports from Beijing, the United States will also receive compensation for damage to U-S diplomatic buildings in China, that occurred during the angry demonstrations following the bombing. TEXT: U-S State Department Legal Adviser David Andrews says the agreement is the result of an exhaustive review that stretched over five meetings in more than six months. The American official says both sides consider the final settlement to be fair. // ANDREWS ACT // We will seek funding in Congress so that we can provide 28-million dollars for damages to the Chinese embassy in Belgrade. The Chinese have agreed to pay for damage to U-S facilities in China in the amount of two-point-87 million dollars. // END ACT // He adds the funds will be included in the White House's budget request for 2001, and expressed optimism that the U-S Congress would approve it. Three people were killed and 27 others wounded, when NATO bombs struck the Chinese embassy in Yugoslavia. Immediately afterwards, tens of thousands of Chinese protested by throwing rocks and Molotov cocktails at the U-S embassy in Beijing and American diplomatic missions in four other Chinese cities. Several months ago, Washington agreed to pay four-and- one half million dollars in humanitarian compensation to the families of those killed in the Belgrade bombing and to the injured. Thursday's deal on the property damage closes out the issue of compensation. But the monetary settlement does not signal an end to the incident. Chinese Foreign Ministry spokeswoman Zhang Qiyue, speaking through an interpreter, says China is still waiting for what she says are more satisfactory answers. // ZHANG INTERPRETER ACT // As far as I know, some U-S officials have promised to China that the U-S side will continue the investigation into the incident and will report to the Chinese side on the outcome of the investigation at an appropriate time. // END ACT // The United States has said the bombing was a tragic accident, resulting from faulty intelligence. Meanwhile, Ms. Zhang rejected suggestions that the Chinese compensation payment to the United States is Beijing's acknowledgement that it did not adequately protect U-S diplomatic facilities in China. // ZHANG INTERPRETER ACT // The Chinese people expressed their indignation and protest, lodged a protest. And, actually, at that moment the Chinese side made tremendous efforts to protect the foreign diplomatic missions from being damaged, but some problems occurred at that moment. // REST OP // State-run Chinese media reported the U-S agreement to compensate China, but did not report the Chinese compensation to the United States. Thursday's deal came one day after the new U-S ambassador to China, James Prueher, presented his credentials to Chinese President Jiang Zemin. (signed) NEB/HO/GC 16-Dec-1999 06:16 AM EDT (16-Dec-1999 1116 UTC) NNNN Source: Voice of America .

