Source: Xinhua news agency, Beijing, in English 1052 gmt 29 Dec 95

Text of report by Xinhua news agency

Xining, 29th December: China's first development centre for nuclear weapons, retired in 1987, has become the capital of Qinghai Province's Haibei Tibetan Autonomous Prefecture, a local official announced Thursday [28th December].

Kebao, commissioner of the prefecture, told a press conference that the moving of his administration and residents from Haomen Townshipto Xihai Township, which is built on the top of the base, has been basically completed.

The base, known as "Nuclear City", was the birthplace of China's first atom and hydrogen bombs. Since 1989 it has gone through a series of environmental cleansing programmes which were described as "scientific, strict and thorough" by Kebao.

He declared that the quality of Xihai's earth, water and plant lifehave all reached state and international standards, and pose no threat to people.

The China National Nuclear Corporation recently agreed to continue tomonitor the ecology and environment of the site for a long period oftime.

The local government has upgraded Xihai's infrastructure, and opened markets, cultural centres and a dozen factories, Kebao said, addingthat the 172m yuan-worth of fixed assets of the base have been made good use of.

Xihai Township currently consists of 18 industrial sectors and four residential sectors. Factory buildings take up 330,000 sq.m., and dwellings and offices account for 230,000 sq.m.

A 38.9-km-long railway links the the township with the Qinghai-TibetRailway. The Haibei Prefectural Government plans to develop the local power and chemical industries, farm and animal husbandry product processing and tourism in the area, as well as build a smeltery.

The prefectural government also hopes that the township can be promoted to the city level by the year 2010.

The township is located on the north bank of Qinghai Lake, which is China's largest inland salt water lake. It is 3,084 m above sea level and 101 km from Xining, the provincial capital.

The township's history is illustrated by the remains of a2,000-year-old city wall.

In 1958 a nuclear plant code-named "221" was set up there, making the surrounding 1,170 sq.km. of grassland a forbidden zone.