Extracts. China Offers Disaster Relief Materials to India The Chinese government has decided to provide materials worth five million yuan (about US$600, 000) to the India <http://www.peopledaily.com.cn/english/data/india.html> n government in an emergency humanitarian aid to the quake-stricken victims, according to a statement issued Sunday by the Ministry of Foreign Trade and Economic Cooperation. This is to show the sympathy of the Chinese government and people to the Indian government and victims in the quake-stricken areas, the statement said. A strong earthquake hit the Gujarat state of India on January 26, resulting in heavy losses of lives and property. **** Barak Freezes Contacts With Arafat Until After Election Israel <http://english.peopledaily.com.cn/data/Israel.html> i caretaker Prime Minister Ehud Barak has decided to halt peacemaking contacts with Palestinian leader Yasser Arafat and his officials until after Israeli prime ministerial election on February 6, his office said Sunday. "Prime Minister Ehud Barak has decided not to continue diplomatic contacts with Arafat and his people until after the election in Israel," Barak's office said in a statement. "Security contacts for calming the situation on the ground, stopping the violence and thwarting terrorism will continue. The Israeli government continues to stand by the peace process on the basis of insistence on Israel's vital interest," it said. Senior Palestinian officials had said Barak and Arafat would hold a summit in Stockholm on Tuesday. However, the statement said Barak has informed Sweden <http://www.peopledaily.com.cn/english/data/sweden.html> 's leaders and U.N. Secretary-General Kofi Annan of his decision. Barak told his cabinet early Sunday that it was unclear whether a possible meeting between him and Arafat would take place despite efforts by Annan and European leaders to arrange it. The meeting was designed to deliver a more detailed declaration of the progress the Israelis and the Palestinians have achieved so far as a follow-up to their joint statement at the close of the peace talks Saturday night at the Egypt <http://www.peopledaily.com.cn/english/data/egypt.html> ian Red Sea resort of Taba. Israeli senior negotiators including Foreign Minister Shlomo Ben-Ami, Justice Minister Yossi Beilin and the Prime Minister's Bureau chief Gilad Sher had advised Barak to meet with Arafat. Barak was concerned, however, that a declaration at the meeting with Arafat would list all the concessions he would make in order to attain a peace deal with the Palestinians, which might produce an adverse effect on his chances of winning the upcoming election. Barak, who is seeking a re-election, is trailing behind opposition Likud prime ministerial candidate Ariel Sharon by a significant margin of 14 to 19 percentage points only nine days prior to the election. **** Private Project to Ease Poverty A non-governmental organization will participate in a global poverty reduction program after gaining consultative status with United Nations Economic and Social Council (UNESC) last year. Xie Boyang, vice-chairman of the organization, said: "We will offer our creative ideas and experiences to the UN on how to eradicate poverty." Today's China Daily said the China Society for Promoting Chuangcai Program aims to provide financing for China's poverty- stricken central and western regions. In the past six years, over 3,000 Chinese entrepreneurs have participated in this program. The society has developed various ways of fighting poverty including creating job opportunities, offering training programs, developing agriculture and introducing market-oriented ideas to the residents. Xie said:" Each country has its own way of dealing with poverty according to its own situation." According to the Society's estimation, over 2.3 million people have benefited from the program. With the consultative status with the UNESC, the Society is able to express their views to the global organization. It may also send observers to meetings and submit written statements to the Council. They may as well consult with the United Nations Secretariat on matters of mutual concern. The non-governmental organization has been the fifth one in China to gain a consultative status with the United Nations. The General Assembly of the United Nations has proclaimed 1997- 2006 as the International Decade for the Eradication of Poverty. **** Guangdong Reports Sharp Rise in Mechanical and Electrical Exports According to the latest statistics, south China's Guangdong Province exported 49.98 billion U.S. dollars worth of mechanical and electrical products last year, a rise of 28.6 percent over 1999. Statistics show that 78.1 percent of the exports in 2000 in Guangdong was attributed to the mechanical and electrical sector, which also accounts for 54.4 percent of Guangdong's total exports for the year. Although mechanical and electrical exports in Guangdong are on the rise, experts indicate that the products have been heavily dependent on processing trade, stressing the export of hi-tech and highly value-added products should be improved. _________________________________________________ KOMINFORM P.O. 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