The Chinese government has allocated 332 million yuan (44.9 million U.S. dollars) in compensation to the flood-affected residents in the buffer zones along the Huaihe River, the Ministry of Finance (MOF) announced on Sunday.

The Huaihe River, China's sixth largest, was hit this summer by the most severe flood since 1954.

To protect major dams and cities, the government diverted floodwater to the adjacent buffers zones, often sparsely-populated countryside, in the eastern province of Anhui and neighboring provinces of Henan and Jiangsu.

China earmarked the funds to help the flood-hit residents restore production and rebuild homes, the MOF said.

It ordered local authorities in the three provinces to pay residents all the compensation to which they are entitled and help restore normal life to the flood-hit buffer zones.

(Xinhua News Agency December 3, 2007)