U.S. pulls $34 million family fund

Annan said the UNFPA "does not go around encouraging abortions"

UNITED NATIONS -- The head of the U.N. Population Fund has condemned a U.S. decision to withdraw its $34 million grant, saying thousands of children are at risk.

Thoraya Obaid, executive director of the fund, which runs family planning schemes in 141 poor nations, said: "Women and children will die because of this decision."

U.S. State Department spokesman Richard Boucher said Monday's decision was made after the administration concluded "that the U.N. Population Fund monies go to Chinese agencies that carry out coercive programs," including abortion.

Instead, the grant -- which makes up 12 percent of the UNFPA budget -- will go to the U.S. Agency for International Development.

Obaid told a news conference the money would have prevented two million unwanted pregnancies, nearly 800,000 induced abortions, 4,700 maternal deaths, nearly 60,000 cases of serious maternal illness and more than 77,000 infant and child deaths.

CNN NewsPass VIDEO Citing 'coercive' abortion policies in China, the U.S. has announced it plans to withhold $34 million earmarked for U.N. family planning programs. CNN's Andrea Koppel reports. Play video

United Nations Secretary-General Kofi Annan added in a statement: "UNFPA does very essential work and we have made it clear that it does not go around encouraging abortions.

"It gives good advice to women on reproductive health and does good work around the world, including in China."

Last year, UNFPA spent $3.5 million in China from its budget of $274 million.

Boucher said it had funded computers and vehicles in China which "are used to send notices to people about not having further children.

"They are supplying equipment to the very agencies that employ coercive practices and that amounts to support or participation in the management of the program.

"While Americans have different views on the issues of abortion, I think all agree that no woman should be forced to have an abortion."

A spokesman for the Chinese embassy denied his government forced women to have abortions, saying it only encouraged people to have one child.

"The government policy has been very clear that we encourage family planning, encourage people to have one child, one family. But this is encouragement, not coercion," embassy spokesman Xie Feng told reporters in Washington on Monday.

He added: "We hope that this decision will be changed, because it's not good for the U.N. cooperation, and it's also not true to facts."

Annan said some of the agency's work will have to be cut and its efforts in China and other parts of the world would be affected.

The United Nations will look for other donors to pick up the shortfall.

"We do not want women, particularly poor women, around the world to suffer, so we are going to do whatever we can to try and bridge the gap until such time that the U.S. position changes," Annan said.