FORBES: The Philippines Should Sue China For $190.08 Billion USD In South China Sea Rent And Damages

This Monday, May 11, 2015, file photo, taken through a glass window of a military plane, shows China’s alleged on-going reclamation of Mischief Reef in the Spratly Islands in the South China Sea. China’s campaign of island building in the South China Sea might soon quadruple the number of airstrips available to the People’s Liberation Army in the highly contested, environmentally delicate, and strategically vital region. (Ritchie B. Tongo/Pool Photo via AP, File)

The Philippines Should Sue China For $177 Billion In South China Sea Rent And Damages

China owes the Philippines and other countries more than $177 billion in rent and damages for China’s South China Sea fiasco. The Permanent Court of Arbitration found on Tuesday that Mischief Reef is a low-water elevation and within Philippines’ exclusive economic zone. This gives the Philippines’ indisputable legal rights to the reef. But since 1995 when China occupied the reef, China irreparably harmed the reef’s delicate marine ecosystem by dredging and building an artificial island there, including a military garrison and air-strip. By my estimate, China owes the Philippines $12.4 billion in rent and damages for Mischief Reef alone. Considering other Chinese island-building, the country owes the Philippines and other claimant countries more than $177 billion. If China doesn’t want to pay, the Philippines can sue in the courts of the U.S. and other countries where China holds property.

Billing Computation is a separate computation provided by the PesoReserve.com

Here is how to calculate what China owes. In 2015, the U.S. paid $1.97 million to the Philippines for 0.58 acres of coral reef destroyed when the USS Guardian went aground. That is a key reference point for environmental claims. Rent is even more costly. In 1988, the Philippines demanded $1.2 billion from the U.S. in rent for 6 military bases — $200 million each per year in 1988 dollars. The U.S. refused and got evicted.

By those metrics, the Philippines could sue China for about $4.6 billion of environmental damages to Mischief Reef in 2016 dollars, plus the requirement to pay $7.8 billion in rent. If China refuses to pay the combined $12.4 billion, the Philippines could seek redress in foreign civil courts to attach China’s offshore assets — of which there are plenty.

But China is liable for much more.  China occupied six additional features in 1988 in the Spratley’s claimed by the Philippines, plus Scarborough Shoal in 2012.

The Philippines did not resist because they justifiably feared violence on the part of China. In 1988, Vietnam claims that China killed 64 Vietnamese soldiers who resisted on Johnson South Reef in the Spratley’s. China disputes the claim, but according to historian and BBC reporter Bill Hayton, “Strangely, a propaganda film released by the Chinese Navy in 2009 to celebrate the navy’s 60th anniversary gives more credence to the Vietnamese version. The video, now available on YouTube, was shot from one of the Chinese ships and shows the Vietnamese force standing knee deep in water as the tide rises over the reef. Huge spouts of water then erupt around the Vietnamese troops as the Chinese ships open fire. Within seconds the thin line of men has completely disappeared and 64 lie dead in the water: the machine guns are Chinese and the victims Vietnamese. The Chinese won the battle of Johnson Reef with a turkey shoot.”

China occupied six features within Philippines’ claim in 1988: Hughes Reef, Johnson South Reef, Gaven Reef, Subi Reef, Fiery Cross Reef, and Cuarteron Reef. China has since dredged and built on all these reefs. Based on Philippines’ 1988 demand for rent from the U.S., each of these six features should yield (in 2016 dollars) about $10.3 billion for 29 years of use — a total of $62 billion.

China occupied Scarborough Shoal in 2012, but has not yet built there. There are no known environmental damages to the shoal, but rent for five years should be about $1.8 billion (inclusive of 2012 and 2016).

By my count, and including the $7.8 billion in rent for Mischief Reef, China owes the Philippines about $71.6 billion in rent for occupation of all 8 China-occupied features in the Philippines’ claimed part of the South China Sea.

In addition, the Court found that China destroyed a total of 48 square miles in the South China Sea through illegal dredging and artificial island building. Based on the $1.97 million paid by the U.S. to the Philippines in 2015 for the grounding of the USS Guardian, an international court could levy a $105 billion fine on China for ecological destruction of all 48 square miles, payable to the Philippines and other claimant states.

Should China refuse to pay, the Philippines and other claimants can bring civil suits in the U.S. and any other locations where China holds substantial assets. The total levy on China for rent on Philippine-claimed features, plus ecological damage to the entire South China Sea, should be about $176.6 billion: double Philippines’ annual GDP, and about a third of China’s GDP. That doesn’t include rent payable to other claimants, which should also be paid.

When China vacates its artificial islands in the South China Sea and pays this fine, plus rent to other claimants and any additional payments to the families of those killed, most attentive citizens will consider justice to have been done. Until then the international ruling in favor of the Philippines, as China has said, is just a sheet of paper. - FORBES

Anders Corr

CONTRIBUTOR

I worked in military intelligence for five years, including on nuclear weapons, terrorism, cyber-security, border security, and counter-insurgency. I covered and visited Asia and Europe, and worked in Afghanistan for one and a half years. I have a Ph.D. in Government from Harvard University, and a B.A. and M.A. in international relations from Yale University (Summa cum laude). My company, Corr Analytics, provides political risk analysis to commercial, non-profit, and media clients, and publishes the Journal of Political Risk. I am editing a series on the South China Sea conflict, and have covered and visited Africa, the Middle East and Latin America.

The author is a Forbes contributor. The opinions expressed are those of the writer.

I cover international politics, security and political risk.

Follow me on Twitter @anderscorr. If you have any additional information related to this article, contact me at corr@canalyt.com.

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Japan-Asean Anti-terrorism meet in Cebu; Military Clash with Abu Sayyaf al Qaeda linked kills 11 in Basilan

A platoon of the Philippine Marines marches in this file Photo.  —File Photo by Reuters

Philippine forces clashed with Muslim extremists on a southern island Thursday (July 26, 2012), leaving seven soldiers and four militants dead, the military said.

Elite rangers battled members of the al Qaeda-linked Abu Sayyaf group on the troubled southern island of Basilan, with three soldiers and two insurgents also wounded in the clash.

“Firefight is ongoing as of this report,” the military statement said.

It was the latest in a series of deadly clashes in the heavily-forested island of Basilan, a stronghold of the Abu Sayyaf.

The group was founded in the 1990s with seed money from al Qaeda leader Osama bin Laden.

Cebu meet tackles Japan-Asean cooperation to fight terrorism

A $4.1 billion fund is being proposed for anti-terrorism cooperation between Japan and Southeast Asian nations.

“There should be mutual cooperation in the area of combating terrorism.” said Tomatsu Shinotsuka of the Japanese Foreign Ministry during the 7th Asean-Japan counter-terrorism dialogue at the Marco Polo Plaza Hotel yesterday.

The dialogue will give the members of the Association of Southeast Asian Nations (Asean) and Japan, a major economic player in the region a chance to discuss the substantive progress, achievement and implementation of useful projects in fighting counter-terrorism.

“Terrorism is a common threat not only in Asia but also to the world as a whole.” said Shinotsuka.

“There should be speed of cooperation and mutual trust. We will take up various aspects of cooperation between Japan and the Asean,” Shinotsuka added.

Undersectary Nabil Tan said the anti-terrorism cooperation between the Association of Southeast Asian Nations (Asean) and Japan will be boosted by the $4.1 billion Japan-Asean Integration Fund (JAIF).

Tan said the counter-terrorism dialogue is a global undertaking aimed at fostering closer collaboration and exchange of information among the ten ASEAN member states – Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Executive Secretary Pacquito Ochoa, Jr. who also chairs the Philippine Anti-Terrorism Council, said border security is necessary to ensure safety in the country. Ochoa said this is on top of the country’s anti-terrorism policy.

“Effective law enforcement, strong institutional mechanisms and addressing social problems like poverty and education form the core of the country’s three-point agenda to fight counter-terrorism,” Ochoa said.

For the institutional mechanisms, Ochoa said the amendments of the Anti-Money Laundering Act (AMLA) and the Human Security Act is important for it to prevent and suppress terrorist financing and to put in check terrorism activities in the country.

Abu Sayyaf in Southern Philippines, and Qaeda link groups Jemaah Islamiyah of Indonesia operating in Malaysia and Southern Thailand remains a threat in the troubled area of the ASEAN region.

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2 laws - UNLCOS 200 and "Archipelagic States" to End Spratlys Disputes

The following Countries competing to owned the vast oil and gas resource Spratlys: The Philippines, Brunei, Vietnam, China, Taiwan (China), Indonesia, Malaysia.

Written by: Dan We ( Twitter: @Dan_We_)

NO ONE IS ABOVE THE LAW...

The most powerful country – the USA is under the LAW and they governed their states and country UNDER THE LAW

CHINA is NOT ABOVE THE LAW... China govern their people under their communist law

The fueling disputes in the West Philippines Sea (WPS) or also called as South China Sea (SCS) might be the flash point which leads to the never ever wanted 3rd World War. (WWIII)

No one ever wants to have their people die from war and conflicts. The good leader must learn how to respect and be respected. A good leader must know how to lower his pride to avoid tensions. A good leader must learn that there is a doom beyond their unlimited pride and ambition to rule the world by their arms.

China has been so confident to replace the US power but their move is not in the right direction. China could bully small neighbors economically but not by arms because small ants are willing to bite and eat the dragon’s flesh if their colony is destroyed and overtaken. Small ants could be worthless but could weaken the dragons power while another giants will come to the rescue and to end the dragons ambition.

China must first plant a good seeds of trust; seeds of unity, seeds of love and seeds of power and wait that those planted seeds would grow and bear fruits for what they have planted for them to overtake other power. It’s early for china to say they are powerful if the whole countries around them are against their power. Unlike US, China never planted any seeds and wants to reap the fruit of the other peasant.

The bottom-line is china would live alone if they will make the unwanted stupid mistake. Any wrong move of china could ends its power both arm and economy. Any wrong move of china will trigger the world to fight against them lead by the US Power, United Nations and the ASEAN nations.

China must have to think that among top 10 Super powers of the World; they got only 1 friend to fight with the other 8.  2 super powers versus 8 super powers is the doom’s day of China and his 1 ally. Who will take over china’s power if they are in the doom’s day? Korea? Vietnam? Russia? India? Mongolia? USA? or Japan?

China! Look before you leap and think before you talk. You must learn how to grow in a peaceful way. You must learn how to get along with other country’s culture than just yours. And you must follow the 2 laws that would end the disputes of the seas.

2- Laws of the United Nations to end the Spratlys disputes.

The first provision of law applicable to the disputed Spratlys is the law formulated by the United Nations in Jamaica last December 10, 1982. The provision for the Archipelagic States.

(1.)           THE ARCHIPELAGIC STATES

The Philippines and four other states (Indonesia, Papua New Guinea, Fiji and Bahamas) got the approval in the UN Convention on the Law of the Sea (UNCLOS) held in Jamaica last December 10, 1982. They were qualified as archipelagic states.

In various conferences of the United Nations on the Law of the Sea (UNCLOS), the Philippines which is composed of 7,107 islands PLUS... is RECOGNIZED AS ARCHIPELAGIC STATES given freedom forming its archipelago that  composed of groups of islands forming a state as a single unit, with the islands and the waters within the baselines as internal waters. By this concept (archipelagic doctrine), an archipelago shall be regarded as a single unit, so that the waters around, between, and connecting the islands of the archipelago, irrespective of their “breadth and dimensions”, form part of the internal waters of the state, subject to its exclusive sovereignty

The approval of the United Nations for the 5 countries as Archipelagic States must be respected by the world for the 5 countries:

1.      The Philippines

2.      Indonesia

3.      Papua New Guinea

4.      Fiji

5.      Bahamas

The  above mentioned countries could enjoy undisputable sovereignty of the waters and islands around them from the said laws. Waters around their country between and connecting the islands of the archipelago, irrespective of their breadth and dimension form part of the internal waters of the states and is belong to its sovereignty. This provision of the UNCLOS is very clear that this law could end the disputes of the Spratlys. The United Nations could not formulate again another provision that would opposed the above “Archipelagic State”.

For the Philippines – The Spratlys is considered as the waters around the Philippines between and connecting the islands of the archipelago, irrespective of their breadth and dimension form part of the internal waters of the states which simply means Spratlys is part of the Philippines sovereignty and the Philippines don’t have any disputable issues between china and other countries who are not classified as “Archipelagic States”.

(2.)          The United Nations Conventions of the law of Sea (UNCLOS) 200 Nautical Miles Exclusive Economic Zone

The 200 Nautical Miles Exclusive Economic Zone is another provision of the law by the UNCLOS that could resolve the Spratlys disputes.

Regardless of what kind of law of china have for its country is not acceptable in the international law would deem that their law is invalid and must be superseded by the United Nations Law that for the particular disputes that would affect many countries around them.

For the following Countries competing to owned the vast oil and gas resource Spratlys:

1.      The Philippines

2.      Brunei

3.      Vietnam

4.      China

5.      Taiwan (China)

6.      Indonesia

7.      Malaysia

The 7 countries mentioned above competing claims have their common grounds which is the UNCLOS 200 Nautical Miles Exclusive Economic Zone. Each country might have to study first if their claim is valid or not.

For the Philippines; 2 provision of laws that would protect them to own the Spratlys exclusively with undisputable sovereignty by the application of the “Archipelagic States” that say the waters around the Philippines between and connecting the islands of the archipelago, irrespective of their breadth and dimension form part of the internal waters of the states which simply means Spratlys is part of the Philippines sovereignty and the Philippines don’t have any disputable issues between china and other countries who are not classified as “Archipelagic States”.

Secondly the Philippines still subject to enjoy the second provision of laws of the United Nations Conventions Laws of the Sea (UNCLOS) 200 Nautical Miles Exclusive Economic Zone. Since most part of the Spratlys is within 200 Nautical Miles Economic Zone of the Country then Majority stakes for the Spratlys sovereignty is lawful to be granted to the Philippines. “Proximity” the Spratlys is just within Philippines backyard.

The application of the 2 provisions of laws of the United Nations Convention of the Laws of Sea (UNCLOS) the  “Archipelagic States” and the “200 Nautical Miles Exclusive Economic Zone” means the “Whole Spratlys” is under the Philippines Sovereignty and the Philippines supposed to be must enjoy their undisputed territory in both their main land and the Spratlys.

The Paracels is another disputed islands between Vietnam and China which both of them could benefit the 200 Nautical Miles Exclusive Economic Zone must send the disputes to the United Nations and they will signed an agreement to solve the disputes peacefully. The United Nations also must mediate and implement the law to end the disputes.

WHAT MUST CHINA DO? (AN SO ORDER!)

1.       China must respect Vietnam’s territory and 200 Nautical Miles Exclusive Economic Zone from Vietnam Shore (The Paracel Conflict between China and Vietnam) and vice versa, Vietnam must respect also the China’s 200 Nautical Miles Exclusive Economic Zone.

2.       China must stop disputing with the Philippines as the Philippines is recognized by the United Nations as Archipelagic States which means water and islands  connecting the Philippines regardless of its breadth is belong to the Philippines sovereignty.

3.       China must settle the disputes with Vietnam in the United Nations and respect the UNCLOS 200 Nautical Miles Exclusive Economic Zone.

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Japan - Philippines Tighten Defense Ties for Sea disputes over China

Bolstering defense Japan - Philippines

Japan and the Philippines agreed on during the visit of the Philippines' president to Japan September 27, 2011 to strengthen maritime security ties, while also underscoring the importance of preserving peace and stability in the West Philippines Sea (South China Sea) amid rising tensions with China.

China has pronounced many times that they owned everything the in West Philippines Sea that worries other tiger economies in Asia such as Japan & South Korea which major of their trades are passing the world's most busiest sea in the West Philippines Sea and South China Sea – Spratlys archipelago.

Prime Minister Yoshihiko Noda and the Philippines President Benigno Aquino III met, on a four-day visit to Japan. Japanese Prime Minister told reporters that the two sides committed to bolstering "cooperation between coastguards and defense-related authorities."

A joint statement said bilateral ties have evolved from friendly relations to a "strategic partnership," and called for more collaboration on "regional and global issues of mutual concern and interest." The two countries also agreed to conduct frequent discussions on defense at more senior levels and increase the number of Japan Coast Guard missions to help train their Philippines counterparts.

Although the agreement does not directly mention China, it is a major symbolic step toward a multilateral consensus in Asia on dealing with increasing territorial friction with China.

China maintain its claim to the whole West Philippines Sea & South China Sea  with its 9 dotted map inspite of criticism of the ASEAN neighbor with 200 Nautical Miles Exclusive Economic Zone claim in the sea.

The Philippines and China both lay claim to the Spratly Islands; an archipelago in the West Philippines Sea and South China Sea that geologists think may lie atop significant oil and gas deposits and rumored to be the 4^th largest oil and gas deposit in the world. Philippines' officials have accused Chinese vessels of hindering oil and gas exploration in a portion of the waters known as Recto Bank (Reed Bank) which is just few kilometers off Palawan Province – Philippines says this is not part of the disputed areas. Vietnam, which also claims part of the Spratly chain, has likewise complained of China's increasingly assertive claims in the region.

China's Fishing Vessel tactics

China has been noticed by the neighbors that they are using fishing vessel tactics which equipped with high powered weapon to enter other waters. Japan learned from China's tactic after China invaded the Mischief Reef few kilometers off Palawan province of the Philippines using the fishermen vessel to erect a fishermen shelter then later converted it into a Military Garrison even inside the Philippines territory.

In 2011 alone, Japan intercepted Chinese Fishing vessel entering their waters. Moreover, Indonesia's coastguard also arrested Chinese entering their seas using a fishing vessel.

The recent issue that escalate tension between Vietnam and China happened also this year when Chinese fishing vessel cut the cable of the Petro Vietnam, a Vietnam Government Owned Oil exploration which china alibi as it is just a Chinese Fishing vessel and mistakenly drag the cable but later admitted that Vietnam is illegally operating in the area as they said its owned and they do not violated any law and they are not invading.

The Philippines didn't escape from China's harassment. China harassed Filipino Fishermen in the Philippines Waters saying to leave the area because it belongs to china, then another incident happened when China fired the Filipino Fishermen in the Palawan Sea and put markers in the Island and waters in Palawan shore.

Japan too, has seen its relations with China strained by a territorial dispute, this one over islands in the East China Sea. A war of words broke out between Beijing and Tokyo last autumn following the arrest of a Chinese fishing crew by the Japanese coast guard, and the year since has brought a series of incursions by Chinese ships into the disputed waters. Mr. Noda earlier this month voiced concern over China's military build-up and increased maritime activity near Japan.

The agreement between Japan and the Philippines stresses the two countries' shared interests, bringing the similar but separate maritime squabbles with China under a larger cooperative umbrella.

"The peaceful settlement of disputes serves the interests of the two countries and the whole region," said the joint statement, signed by both leaders. Japan and the Philippines "share the recognition that these same interests should also be advanced and protected in the West Philippines Sea and South China Sea."

Responding to the Japan-Philippines meeting, China's foreign ministry on Tuesday (September 27, 2011) reiterated its claim to the disputed waters in the South China Sea.

"China has indisputable sovereignty over the island and surrounding waters of the South China Sea," said ministry spokesman Hong Lei in Beijing.

Regardless of many criticisms, China never leaves the phrases; "we owned everything" & "China has indisputable sovereignty over the island and surrounding waters". Philippines Challenged China to bring the disputes to the United Nations to end it but China refused and said we are only open to bilateral settlement not to the United Nations. 

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The next ASEAN tiger cited by Asia Inc & Business leader could be the Philippines

The Philippines has a most unique economy in the world which is highly dependent on domestic consumption that drives their economy that could be hardly hit for any possible global economic recession. Inspite of rich resources, Philippines did not rely on exports to drive a better and fast forward economy.

The Philippines now tagged with fresh opportunities in Asia, boosting and high grades gold mining, boosting of oil and gas exploration,  good political leader,  revived confidence from global investors and now named as to be Asia’s next tiger economy, potentially regaining the glory lost decades ago, according to a visiting regional business leader from Brunei.

Dato Timothy Ong, a leading Brunei businessman who founded and now chairs regional dialogue platform Asia Inc. Forum, said in a press briefing on last September 26, 2011 that he has seen signs that the Philippines could return to its goal of being the next Asian tiger despite staying at the bottom half of the 10-member Association of Southeast Asian Nations (ASEAN) in terms of economic performance for years.

Ong is also the convener of ASEAN 100 Leadership Forum, which will be hosted by the city of Makati on Sept. 28-29, 2011 at the Makati Shangri-La. This year’s ASEAN meet aims to foster insightful and intelligent discussions on the future of ASEAN and how the region can emerge as one of the world’s significant economic blocs.

According to Dato Timothy  Ong, the Philippines can join the ranks of Taiwan, Singapore, South Korea and Hong Kong, the so-called Asian “tiger” economies or newly industrializing countries. He cited five reasons why the country, though a “dark horse,” or a sick man in Asia had the makings of the next move to be the next “tiger.”

The Chair of the regional dialogue platform Asia Inc. Forum cited 5 following reasons why the Philippines could be the next ASEAN Tiger as:

1.      The new leadership under President Aquino has promised to weed out corruption in the country, which has been creating a lot of optimism. It’s widely perceived that the high level of corruption in the country has driven up the cost of doing business.

 

2.      Mr. Ong said that the Philippines’ would be vast pool of hardworking professionals and skilled manpower, many of whom have been deployed across the globe. “With this wealth of human resources, it’s important to ask then why the Philippines aren’t more successful economically,” he said. Many countries had been dependent on Filipino Professionals and skilled workers to drive their economy like for example banning the Filipino to work in Taiwan will paralyze the Taiwan’s economy. Banning the Filipino to work in the Middle-east might paralyze their economy. Deporting Filipinos in (North Borneo) Sabah might paralyze the Sabah’s economy which the world knew how important the human resources are.  The continues development in the other north Asian countries had been dependent on Filipino skilled workers like for example the Billion Dollar projects of Korea’s builder Hyundai Engineering in Kazakhstan and Turkmenistan which been dependent on Overseas Filipino Workers as highly skilled which the builder could not outsource such kinds from the local man power pool in the 2 ‘stan countries. Many Leading fortune 200 companies in the world are talents hungry but the Philippines have vast and awashing man power pool. Many countries take advantage of Filipinos for not just for cheap labor but also trustworthy multi-tasker and English speaker that could compete globally.

 

3.      The third factor would be the Philippines’ “centers of excellence,” Ong said, noting that the country has become a competitive hub for business process outsourcing. He likened the Makati central business district to a “First World” city in a Third World country.  “If the Philippines is capable of being first world in these centers of excellence, why can’t it be First World in every respect?” he said.

 

4.      Ong said the fourth reason would be the Philippines’ homegrown companies that were at par with the world’s best.  He cited fast-food giant Jollibee Foods Corp., international port operator International Container Terminal Services Inc. and the Ayala group of companies. “There is a sense of optimism that characterizes the country as a whole.  As the new government takes its steps in leading the country towards change, it may be able to experience higher standards of governance,” he said.

 

5.      Finally, Ong noted the Philippines’ “sharply improving competitiveness” as another factor supporting its aspiration to be the next tiger economy. He cited recent reports that the Philippines had jumped 10 notches to 75 from 85 in the latest ranking of the World Economic Forum. Ong said this happened only within the first 15 months of the term of the new president.

Meanwhile, Ong said ASEAN would likely partly meet its target to establish an integrated economic community by 2015.

“A One ASEAN is important for our collective future to accelerate the economic growth, social progress and economic stability in the region; to promote active collaboration and mutual assistance in economic, social, cultural, technical and administrative spheres,” Ong said.

“At the moment, Southeast Asia is like a big gated community where neighbors barely know each other. They know each other by name, they exchange pleasantries but they wouldn’t really go out of their way to have dinner at each other’s house,” he said.

Once integrated, he said, ASEAN could be a very influential bloc as it could become Asia’s third-largest economy next to China and Japan and the ninth-largest in the world.

The Philippines hinting to be a the second ASEAN tiger is so closed to achieve.

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Hainan China Mounted Nuclear Weapon Facing Manila

When China’s largest offshore petroleum producer launched a $1 billion oil rig this summer from Shanghai, Lt. Gen. Juancho Sabban, the commander of Philippine military forces commented that China of 1,500 miles away in the South China Sea, began preparing for trouble.

The drilling platform, said China, would soon be heading in the 38 general’s direction - southward into waters rich in oil and natural gas, and also in volatile fuel for potential conflict.

China pointing the Map down south adjacent to the City of Puerto Princesa Palawan, Province of the Philippines. China is willing to face war and conflict just to drill the oil and gas with or without approval from the Philippines government as they claim the area as undisputable and it core interest.

Regardless of the UNCLOS provision of 200 Nautical Miles Exclusive Economic Zone for the Philippines and other neighboring country within the proximity of the West Philippines Sea (South China Sea), china believed their map is right and will surpassed / overpower the United Nations International laws of Sea as they have their own laws and concept.

Red Alert- Philippines for the unexpected attack of China

Few information leaked that china is preparing to sink the new Philippines Navy Warship Flagship BRP Gregorio del Pilar, a newly acquired and refurbished from the USA high endurance Hamilton Class Cutter Frigate.

Chinese nuclear submarine armed with nuclear missiles has been mounted in Hainan island south of China and high powered weapon are now facing Manila for ready to attack anytime.

Leaked information mentioned that China will target to paralyze the Philippines by attacking the BRP Gregorio del Pilar prior of their planned launching of the $1 billion Dollar oil rig in the area near Pruerto Princesa this year or early next year in 2012.

The Philippines is not yet aware of this china’s plan. The United Nations is now the only chance to intervene or to mediate prior the leaked information to happen.

The cooling of the West Philippines Sea (South China Sea) issue is the preparation of China for their ready to launch $1 billion Dollar oil rig and a simultaneous attack to destroy the BRP Gregorio del Pilar.

“We started war-gaming what we could do,” said Sabban, a barrel-chested, American-trained marine who, as chief of the Philippines’ Western Command, is responsible for keeping out intruders from a wide swath of sea that Manila views as its own 200 Nautical Miles Area from the shore but that is also claimed by Beijing.

China oil hungry giant to attack Spratlys

Arguments over who owns what in the South China Sea have rumbled on for decades, ever since the doomed Chinese government of Chiang Kai-shek in 1947 issued a crude map with 11 dashes marking as Chinese almost the entire 1.3 million-square-mile waterway. The Communist Party toppled Chiang but kept his map and his expansive claims, though it trimmed a couple of dashes.

Today, China’s insatiable thirst for energy has injected a highly combustible new element into long-running quarrels over cartography, arcane issues of international law and ancient shards of pottery that Beijing says testify to its “indisputable sovereignty” over the West Philippines Sea (South China Sea).

China, which imports more than half its oil, will nearly double its demand for the stuff over the next quarter-century, according to the International Energy Agency in Paris. Its demand for natural gas — which is believed to be particularly abundant beneath an archipelago of contested islands and reefs, known as the Spratlys, just west of here — is projected to more than quadruple.

With consumption soaring and the price of imports rising, China is desperate for new sources to boost its proven energy reserves, which for oil now account for just 1.1 percent of the world total — a paltry share for a country that last year consumed 10.4 percent of total world oil production and 20.1 percent of all the energy consumed on the planet, according to the BP Statistical Review of World Energy.

As a result, Beijing views disputed waters as not merely an arena for nationalist flag-waving but as indispensable to its future economic well-being.

“The potential for what lies beneath the sea is clearly a big motivator” in a recent shift by China to a more pugnacious posture in the West Philippines Sea (South China Sea), said William J. Fallon, a retired four-star admiral who headed the U.S. Pacific Command from 2005 until 2007. China is wary of pushing its claims to the point of serious armed conflict, which would torpedo the economic growth on which the party has staked its survival. But, Fallon said, such a thick fog of secrecy surrounds China’s thinking that “we have little insight into what really makes them tick.”

A big factor in this uncertainty is a meshing of Chinese commercial, strategic and military calculations. Like other giant energy companies in China, the China National Offshore Oil Corp., or CNOOC, the owner of the new Chinese rig, pursues profit but is ultimately answerable to the party, whose secretive Organization Department appoints its boss.

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₱5 Billion Armament Budget to Secure West Philippines Oil and Gas Field Approved by President Aquino

President Benigno Aquino III has approved the release of ₱4.9 Billion from the Malampaya fund to strengthen the defenses of natural gas exploration in northern Palawan, National Treasurer Roberto Tan said Wednesday (September 14, 2011).

The fund to be released this month, will be disbursed to the Armed Forces of the Philippines (AFP) for the purchased of New smaller patrol vessel, 4 radar Station, Tanks, and modern assault rifles and ammunitions. The AFP was tasked to acquire and deploy a support fleet of ships smaller than the Hamilton class BRP Gregorio del Pilar.

As early as last March, the Philippine military sent an aircraft to the disputed Recto Bank ( Reed Bank) near Palawan following reports that Chinese patrol boats were trying to harass a Filipino oil exploration team there.

Lt. Gen. Juancho Sabban, chief of the AFP Western Mindanao Command, said the Chinese were claiming the exploration team from the Department of Energy was in Chinese territory where in fact the Recto Bank is just in the backyard of the Philippines, within 200 Nautical Miles Exclusive Economic Zone, while china is within thousands of Kilometers.

BRP Gregorio del Pilar, the Philippine Navy's largest and newly acquired ship, is a symbol of the Philippines' "seriousness" in fortifying the protectors of the country's maritime resources.

The Gregorio del Pilar, however, is less than half the size of China's first aircraft carrier that is expected to go on sea trials by the end of September. The Philippines' largest ship is 367 feet long, compared to China's Shi Lang that measures 1,000 feet.

₱100 Billion Malampaya "Commingled" Fund Missing?

The National Treasurer also disclosed Wednesday at the joint congressional oversight committee hearing on the comprehensive tax reform package that the Malampaya fund, with a remaining balance of ₱99.45 Billion, exists as a "commingled" special account in the government's general fund.

He said the Malampaya collections from 2002 to August 2011 totaled ₱121.97 Billion, of which ₱21.645 Billion was disbursed partly to pay for the Hamilton class ship which the Philippines bought from the United States of America.

During the hearing, Senator Ralph Recto made an issue out of the "commingled" status of the Malampaya fund and said that the fund was missing. Recto argued that the fund cannot be used for any purpose other than those for which it was created.

In a July 5 statement, Budget Secretary Florencio Abad explained the Malampaya fund was "…not actual cash but an accounting of revenue inflows and expenditure items charged against the Fund since revenues were remitted to the government from the Malampaya Natural Gas Project since it started in 2002."

The Malampaya special account is known at the Department of Budget and Management as Fund 151 and is managed by the Bureau of Treasury and the Energy Department.

Abad also said back in July that the Aquino administration had charged ₱2.87 Billion to the Malampaya account for "necessary energy-related" expenditures:

·        ₱2 Billion for fuel requirements of the National Power Corporation-Small Power Utilities Group (NPC-SPUG), to avert a power shortage in off-grid areas

·        ₱450 million for the Pantawid Pasada program as direct support to jeepney and tricycle drivers affected by the recent spate of oil price hikes and

·        ₱423 million for the purchase of the USS Hamilton cutter marine vessel to strengthen the security perimeter of the Malampaya Natural Gas Project.

Abad claimed that during the Arroyo administration only ₱250 million out of the ₱19.64 billion drawn from the fund was spent on an energy-related project that provided electricity to 211 villages in 2006

"The rest of the 98.73 percent or ₱19.39 billion was released for non-energy related projects," Abad noted and broke it down as follows:

·        In 2006, ₱1 billion for the Armed Forces Modernization Fund (What AFP modernization happened in 2006?)

·        In 2008, ₱4 billion for the Department of Agriculture

·        In 2009, a total of ₱14.39 billion to various agencies, including ₱7.07 billion for the Department of Public Works and Highways, ₱2.14 billion for the Philippine National Police, ₱1.82 billion for the Agriculture Department, ₱1.4 billion for the National Housing Authority, and ₱900 million for the Department of Agrarian Reform.

National Treasurer Tan said the ₱4.9 billion for the security build-up in northern Palawan will likely be raised through borrowings and then credited to Fund 151.

Budget Secretary Abad in a statement September 7 described how government will disburse the money for Malampaya defenses.

"The amount is divided between the capability requirements of the Philippine Navy and Philippine Air Force. Of this amount, ₱2.65 billion will fund base support and logistic system, coast watch requirements; and the acquisition of a high-endurance cutter sea vessel and three helicopters of the Philippine Navy."

"Meanwhile, the Air Force will be using ₱2.30 billion to purchase three helicopters and develop a base-hangar," Abad said.

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