China and Reagan face yet another clash over Taiwan. This time the tiff is taking place in the Asian Development Bank. In its drive to modernize, China this month said it may seek cheap loans from the ADB. If it does, it's likely to insist that Taiwan be ousted as a member. In 1980, China displaced Taiwan at the World Bank. Now, the ADB is under pressure to follow suit. The US, a major ADB backer, must make a choice. Some officials hope China and Taiwan will compromise, allowing both to be ADB members.
The big loser may be India. It sought ADB loans last year after China began to eat away at its large share of World Bank loans. Now the two giants may compete at the ADB's teller window.m