The World Bank says it is looking into allegations raised by the American human rights activist Harry Wu that an agricultural project funded by the bank was using forced labor. The bank says it is concerned about the allegations but that it has no knowledge of any link between the Tarim Basin Project in Xinjiang Province and the use of forced labor.

A statement issued by the bank says that its "procurement policies, respect for human rights and insistence on good governance preclude it from involving forced labor in its projects."

Wu was released by Chinese authorities shortly before the start of the Fourth World Conference on Women in Beijing last month. He had been arrested and charged with espionage and other criminal activities while on what he said was a fact-finding visit to China.

"It is regrettable," said the bank's statement, "that Mr. Wu went public with his allegations without checking his information and assertions with the World Bank." It continued: "If he can substantiate that components of the Tarim Basin project are being implemented with the held of forced labor, the bank would discuss the issues with the Chinese authorities, whose responsibility is to implement the project. If bank policies for the use of International Development Association (IDA) funds have been disregarded, the bank has the option of requesting the repayment of loan funds."

The bank emphasized that the project in question, which is helping to rehabilitate irrigation and drainage and raise food production, is designed to alleviate poverty in one of China's poorest and most distressed areas.

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