Published by: THE WORLD UYGHUR NETWORK NEWS, June 11, 1997

Beijing Zhongguo Xinwen She, 05/29/97

Karamay, May 29 (CNS) -- Water diversionary work costing RMB 2 billion

has started in Karamay, Xinjiang Uygur Autonomous Region, marking the

beginning of an agricultural development plan in the Karamay oil field

area.

The Karamay oil field, the fourth largest in China, is located on the

north-western fringe of the Junggar Basin and was the first substantial

oil exploitation after 1949. Its annual yield of crude oil has risen

from 16,000 tonnes in 1951 to the present 8 million tonnes and

production of crude oil increases yearly.

Since the beginning of the 1990s, Xinjiang has had a grand plan to

spend RMB 10 billion in the northern area of the region to exploit

water resources and to develop 10 million mu (about 6,670 square

kilometres) of arable land. The agricultural development of the

Karamay oil field is part of this strategy and could produce an annual

yield of 5 billion kilograms of grains.

Upon completion of the 439 kilometre diversionary work in July 1999,

the supply of water in the oil field will no longer be a problem and an

annual 400 million cubic metres of water can be transmitted to the area

for agricultural purposes.

According to the Xinjiang Oil Administrative Bureau, the autonomous

region will carry out construction of irrigation and water conservancy

infrastructures during the present five-year plan (1996-2000). By the

year 2000, a total of some 334 square kilometres of agricultural fields

will be established, after which time a modern farming and animal

husbandry base in an area of approximately two million mu (about 1,334

square kilometres) will be set up.