[So how many of you are still refusing to buy Chinese-made goods? At the risk of sounding smug, I returned a $200 Radio Shack scanner made in China and chose a $350 Uniden model made in Taiwan. It has better features too, BTW!]

BBC Saturday, 11 August, 2001, 13:44 GMT 14:44 UK China anger over spy plane offer

The US bore the brunt of the costs returning the plane China has expressed its "utmost dissatisfaction" with Washington's offer of $34,000 for expenses incurred during the three-month seizure of a US Navy surveillance plane, state media reported.

Beijing had demanded $1m to cover its "costs" in the affair, which was triggered in April when a US reconnaissance plane made an emergency landing in China after colliding with a Chinese fighter jet.

China wants compensation for feeding the 24 US crew members, held for 11 tense days on Hainan Island, and for its role in returning the damaged US plane, which it insisted on dismantling and sending home in crates.

But the Pentagon says $1m is far too high and instead offered to pay just $34,000.

'Erroneous decision'

Foreign Ministry spokeswoman Zhang Qiye was quoted by Xinhua news agency as saying that "the so-called 'decision' is unacceptable to China both in its content and form".

"We urge the US side to correct its erroneous decision, and take into consideration the reasonable request of the Chinese side for an appropriate settlement of the payment issue," she added.

The amount offered works out at little more than $100 a day per crew member.

The biggest cost - breaking up the EP-3 aircraft and flying it away - had already been paid by the US.

'Non negotiable'

Rear Admiral Craig Quigley, a Pentagon spokesman said the payment was "for services rendered and assistance in taking care of the aircrew, and some of the materials and contracts to remove the EP-3 itself".

"Where we felt there was a fair value provided by the Chinese, we tried to provide a fair dollar value for that service," he said.

On Thursday he had said that the payment, which would be made by the US embassy in Beijing in the next few days, was "non-negotiable".

The Pentagon was under pressure not to overpay the Chinese.

In July the US House of Representatives warned it did not want China to receive any money from the affair.

One Republican congressman, Tom DeLay, described the episode as "communist piracy" and Chinese demands for compensation as "the deluded daydreams of a despotic regime".

-- Anonymous, August 11, 2001