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The report by the Canadian firm Probe International says massive efforts underway to divert water from other parts of the country, including Tibet, won't be enough to keep the city in potable water, The Daily Telegraph reported Saturday.

"With each new project to tap water somewhere else, demand for water (in Beijing) only increases, and at an ever greater cost to China's environment and economy", the newspaper quoted the report, entitled "Beijing's Water Crisis: 1949-2008", as saying. It maintains the 2008 Summer Olympics will consume 52 million gallons of water, enough to supply a million Chinese with their yearly consumption.

Grainne Ryder, Probe International's policy director, told the Telegraph studies predict that even ongoing efforts to build three massive canal systems to replenish the Yellow River and the capital won't be enough to sustain Beijing's current growth.

"I would imagine it would be a phased shutdown of its economy, an economic collapse", she said.

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