China expressed "strong dissatisfaction" over the approval of an Asian Development Bank loan to India that it said involved a territorial dispute between the countries, AFP reported. The US$2.9 billion India Country Partnership strategy approved by the ADB includes a US$60 million watershed protection project in the disputed Arunachal Pradesh region, which lies east of Bhutan. China and India fought a brief war in 1962 over the region, and the border dispute remains unresolved. China claims sovereignty over the entire 90,000 square kilometer region, while India says China illegally occupies 38,000 square kilometers of the state. An ADB spokeswoman said the bank took no position on territorial disputes between its members.