THE Government has quashed a Family Planning Association proposal to open its sperm bank to non-Chinese donors and childless foreign couples. Its refusal to fund the expansion has set back a move by the association's new executive director, Susan Fan Yun-sun, to reverse a Chinese-only policy. The association's fertility clinic asked the Government for money in April last year. But a Health Department statement said: 'In the absence of convincing justification, the Government's support has not been given to this proposal.' Association spokesman Angela Paul Wai-sum said it was now considering squeezing its own resources to allow non-Chinese to take part. A New Zealand man and his Japanese wife sought non-Chinese sperm last year, but are still waiting. 'They wanted sperm from a non-Chinese and we told them we didn't have any,' Ms Paul said. Potential non-Chinese donors who registered with the clinic have never been asked to donate. Dr Fan's move to push back racial boundaries is a U-turn on the policies of predecessor Dr Margaret Kwan Shuk-wa. Dr Kwan created a storm in September 1994 by saying the association would not use non-Chinese donors. It was inappropriate for the service to produce mixed-race babies, she said. The service helped towards 140 pregnancies from 1981 to 1994. Last year more than 60 donors offered sperm, and 42 couples applied to become recipients.