By David Gold at City Hall in London

sebastian coe_07-03-121March 7 - London 2012 chairman Sebastian Coe (pictured) staunchly defended Dow Chemical's sponsorship of this summer's Olympic Games during a grilling by London Assembly members here today.

Dow has been involved with the Olympic Movement for over 30 years and is a worldwide partner of the Olympic Games, but has attracted controversy because of its link to Union Carbide, whose Indian subsidiary ran a pesticide plant in Madhya Pradesh at which a gas leak allegedly killed up to 25,000 people in 1984.

Though Union Carbide settled the dispute by paying $470 million (£310 million/€351 million) in compensation to the Indian Government in 1989, there have been complaints over their sponsorship of a £7 million ($11 million/€8 million) wrap around the Olympic Stadium.

The Indian Government are still seeking $1.1 billion (£707 million/€822 million) in further compensation from Dow.

The Indian Olympic Association (IOA) have also protested to the International Olympic Committee (IOC) over Dow's position as an Olympic partner, while Aslam Sher Khan, an Olympic bronze medallist with the 1972 hockey team, has led a campaign to boycott the Games this summer.

In December Dow agreed to remove the wrap to calm the row, but the controversy continues to rumble on.

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IOC President Jacques Rogge (pictured far right) has previously said that Dow does not bear responsibility for the tragedy, and that was the view of Coe today.

"Nobody least of all me would for one moment underestimate the human tragedy that was Bhopal in 1984," Coe said amid fierce questioning.

"Dow were not the owners or operators of the plant at the time of the disaster.

"Dow would not share [the] view that they were responsible for the awful events of 1984.

"There may well be issues still to be resolved within India but this is not something Dow Chemical is responsible for and am I satisfied about the process London 2012 went through in the procurement.

"I'm sure we are sitting surrounded by Dow products today and I'm sure they were involved in the Commonwealth Games in India (in 2010)."

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The Times of India also published today a letter it received from Pere Miro, the director of National Olympic Committee (NOC) relations at the IOC, which reaffirmed their stance.

"The IOC recognises that the Bhopal tragedy in 1984 was a horrific event for India and the world," it read.

"The Olympic Movement sympathises with the grief of the victims' families, and regrets the ongoing suffering people face in the region.

"The IOC has taken on board the opinions raised by different groups you mention in your letter, but let us assure you we only enter into partnerships with organisations that we believe work in accordance with the values of the Olympic Movement.

"Dow is a global leader in its field of business and is committed to good corporate citizenship.

"We thank you for your letter, understand your concerns and appreciate the difficult situation you are facing in your country.

"Dow did not have any ownership stake in Union Carbide until 16 years after the accident and 12 years after the $ 470 million (£310 million/€351 million) compensation agreement was approved by the Indian Supreme Court.

"The court has upheld that agreement twice since, in 1991 and 2007."

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