A cluster of small, shabby factories bordering Huanghe river is leaking tons of toxins into this already heavy polluted river that Chinese people know as the "mother river".

"I was appalled at the sight and enraged, because they were supposed to be shut down before November 30," said vice-director of China's State Environmental Protection Administration (SEPA) Pan Yue here Sunday.

He has just returned from a secret inspection tour of a heavilypolluted area at the border of Shanxi province, Shaanxi province and Inner Mongolia Autonomous Region.

"SEPA has warned them at least three times this year and reached an agreement with the local governments on November 15 to shut them down. But because of connicance of some local governmentofficials, they are now even more prosperous," said Pan.

"We don't have enough power to oversee thousands of violations of environmental law all over the country. Besides, we ourselves don't have the right to shut down polluters directly, we can only give advice to local governments," said Pan.

After much effort in 2003, SEPA punished ten notorious polluters with the assistance of other central government organizations like the Ministry of Justice.

"Some local officials think the Gross Domestic Growth (GDP) figures alone mean development," said Pan. "They don't realize that environment costs will offset their economic growth in the end."

Pan said he had gathered local officials from small factories bordering Huanghe and given "very serious and strong advice". "If they don't listen, I have to turn to other ministries for assistance, just as we have done this year," he said.

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