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Paper company recalls defamation suit against Zhejiang Restaurant Association  
2005/2/28

    HANGZHOU, Feb. 26 (Xinhuanet) -- The Asia Pulp & Paper Co. Ltd (APP) recalled its lawsuit against the Zhejiang Restaurant Association, Tuesday, from the Xihu District People's Court of Hangzhou, capital city of east China's Zhejiang Province.

    The company sued the association for defamation last November demanding 2.2 million yuan of compensation for economic losses.

    On November 16, 2004, the environmental group Greenpeace China accused APP of illegal logging and rampant forest destruction in southwestern China's Yunnan Province.

    Following the report, the Zhejiang Restaurant Association asked its members to stop using paper products made by the APP until it committed to environmental protection. APP defamation suit followed.

    In response to a question about why APP dropped the suit, an official from the APP China's headquarters said that his company doesn't think it is necessary to sue the association now.

    The latest notice released by the State Administration of Forestry confirmed that the APP did illegally log in Yunnan, said Du Juexiang, deputy secretary-general of the restaurant association

    Du said his group received broad support since the lawsuit. Enditem

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