Taiwan will deploy missile in Spratlys downplayed by the Philippines - Sultanate State of Sulu worried

Itu Aba Island (Taiwan: Taiping Island (Chinese: 太平島; pinyin: Tàipíng Dǎo; Vietnamese: Đảo Ba Bình; Filipino: Ligaw/Ligao), is the largest of the Spratly Islands in the South China Sea and the only island with a freshwater supply. The island is elliptical in shape being 1.4 km in length and 0.4 km in width. It is part of the Tizard Bank (Zheng He Reefs), one of seven reefs in the Spratly Islands near the centre of the West Philippines Sea (South China Sea)

Taiwan's defense minister has backed a plan to deploy advanced missiles in the island Itu Aba (Taiwan: Taiping, Filipino: Ligao-Ligao, Vietnamese: Đảo Ba Bình) in Spratlys over concerns that rival claimants to disputed islands are building up their arms, a legislator said Thursday.

Kao Hua-chu endorsed a proposal passed by the country's defense committee Wednesday (October 12, 2011) demanding coastguard units in Itu Aba (Taiping) and the Pratas islands -- claimed by China - be armed with Chaparral or Tien Chien I missiles.

"Minister Kao made it clear that he supports the proposal," he was quoted as saying in a statement released by Lin Yu-fang, the legislator from the ruling Kuomintang who pushed for the deployment.

Philippines defense department spokesman Zosimo Jesus Paredes said the country enjoyed good relations with Taiwan and believed its plan to supply missiles to coastguard units in the areas it claims was not a threat to the Philippines.

"We cannot dictate on Taiwan on what or what not to do," However, he said Manila was prepared to "defend to the hilt" islets it has already occupied in the Spraltys.

But when asked whether Manila considered a move towards aggression, he said: "Not really… we should not be over reactive."

However, the lobbying of power the Sultan of the Sultanate State of Sulu and North Borneo; Sultan Kiram is worry of this as he believed that the whole Spratlys is belong to his territory and under his sovereignty and belong to his people majority the Muslim people in Southern Philippines and Sultanate State of Sulu and North Borneo (Sabah).

Sultan Kiram revived his claim and challenged the Philippines government Saturday (October 15, 2011) to support them to take-over the North Borneo (Sabah) from Malaysia which is links to the islands of Palawan and the Spratlys Archipelago.

Sultan Kiram reminded the Philippines that the North Borneo (Sabah) is belong to the Sultanate State of Sulu and Borneo that links Palawan islands and Spratlys Archipelago which rightful owner is the Filipino people after turning-over his rights to the Philippines government in 1967.

He reminded also the majority Christian Filipinos that the North Borneo which is called now as Sabah by Malaysia was illegally captured by Britain and give it to Malaysia without his approval.

Taking-over back North Borneo (Sabah) will give more chance to the Philippines and the Sultanate State of Sulu to control the islands in the Spratlys – Kalayaan Island Group and the southern part of Palawan islands which is also claimed by Kuala Lumpur.

The deployment of advance missile by Taiwan triggered concern to the Sultan of the Sultanate state of Sulu as it is considered as belligerent action of Taiwan might triggers conflict and unwanted war  in his territory in the spratlys.

Apparently mindful of rising regional tensions, Kao said the Taiwanese coastguards may need advanced weaponry rather than the Chaparral which Taiwan first acquired in the 1980s.

"Perhaps Tien Chien I or more advanced air defense missile systems should be given priority since the Chaparral is pretty old," Kao said.

The plan came following a report in July which found that Taiwan's coastguards in the contested waters were vulnerable amid mounting tensions.

Taiwan, Vietnam, Brunei, China, Malaysia, and the Philippines claim all or part of the Spratlys, which could lie on top of large oil reserves.

The Taiwanese coastguard currently has a 130-strong garrison on Itu Iba island (Taiping), the biggest island in the Spratlys archipelago.

Lin said the proposed ground-to-air missile deployment would be legitimate, citing the ministry's recent report on the military buildups by Vietnam and other neighboring countries in the area.

Vietnam has deployed thousands of marines in the zone, backed Russia-made Su-27SK and Su-30MK2 fighter jets; Lin cited the report as saying.

"In stark contrast, the Taiwanese coastguards are only equipped with 20-mm air defense guns," he said in a statement.

The defense ministry added that in case of military conflicts, Taiwanese coastguards could hardly defend themselves against the Philippine forces equipped with naval gunboats, Lin added

The Philippines said Sunday it was prepared to defend its claims in the South China Sea, but downplayed a plan by Taiwan to deploy missiles in the area

Paredes stressed the government still believed in pursuing a peaceful solution, but stressed Taiwan's move might be misunderstood by some claimants as provocative.

He said Taiwan's move could be seen as "unsettling" by other claimants to the area, stressing that it should have officially informed them of its plan so as not to escalate tensions.

"I think moves like these should be coordinated (with other claimants) so that we will not be taken aback," he said.

On the other hand, the neighboring countries surrounding Taiwan and Hainan China is on the hand to support the Philippines of its Spratlys claim. Australia and Japan pronounced their support to the Philippines which later the New Zealand followed.

USA as the most powerful ally of the Philippines turnover its Hamilton Class cutter warship to the Philippines to boost its naval patrol in the Spartlys and recently but not yet confirmed by our team, the South Korea will offer also a navy patrol boat to the Philippines to be use in patrolling in the West Philippines Sea (South China Sea).

To follow more consolidate and contributed issues about the Spratlys join the Hikot's Spratlys Page.

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Vietnam side by side Philippines - China disputed sea Row

Vietnam signed with the Philippines

The Philippines and Vietnam have agreed to protect the delicate marine ecosystem in the West Philippine Sea from threats of overexploitation, the Department of Foreign Affairs (DFA) said.

The DFA said the agreement was made to address illegal, unregulated and unreported fishing in accordance with the national laws of both countries.

Senior officials of both countries also endorsed the enhancement of cooperation on maritime and ocean matters. This includes the elevation of the Joint Permanent Working Group on Maritime and Ocean Concerns into a vice ministerial level, continued support for the Joint Oceanographic and Marine Scientific Research in the South China Sea, and implementation of the Memorandum of Agreement on Oil Spill Preparedness and the MOA on Search and Rescue at Sea.

The Philippines is also worry of any possible damage that would greatly affect the Philippines Marine Ecosystem as the Spratlys sea bed is link and inter connected with the Philippines and the area is just very close to the country than the other claimants.

The Philippines is also aware of any unwanted oil spills in the sea will closely affect the Palawan seas as the area is just few kilometers away and the Spratlys  is within Philippines' proximity.

The Philippines and Vietnam are claimants to the potentially oil-rich waters and land features of West Philippine Sea.

The DFA said the Philippines and Vietnam agreed to speed up implementation of the MOA on Defense Cooperation and the MOA on Academic Cooperation as 11 areas of cooperation were reviewed.

"This is more than a wish list. It is a commitment to steer Philippines-Vietnam relations towards a more meaningful and deeper cooperation," Foreign Affairs Secretary Albert del Rosario said.

Del Rosario acknowledged the 11 areas of cooperation reviewed by senior officials of both countries at the 6th Philippines-Vietnam Joint Commission for Bilateral Cooperation held in Hanoi on Oct. 6 and 7 2011.

The MOA on Defense Cooperation and the MOA on Academic Cooperation were signed last year.

This year, the Philippines and Vietnam are celebrating the 35th anniversary of diplomatic relations.

Since the last Joint Commission for Bilateral Cooperation in 2008, the two countries worked together on a number of areas such as political cooperation, defense and security, trade and investments, maritime and ocean concerns, agriculture, energy, tourism, education and culture.

Del Rosario and Vietnamese Foreign Minister Pham Binh Minh highlighted the official exchanges that continue to give impetus to the bilateral relations, notably the positive outcomes of the visit to Vietnam by President Aquino in October 2010 and the forthcoming visit of President Truong Tang to the Philippines later this month.

An action plan for 2011-2016 is expected to be launched during President Tang's visit to drive the cooperation to a comprehensive and solid partnership.

China and Vietnam sign agreement to cool sea dispute

China and Vietnam signed an agreement seeking to contain a dispute over the South China Sea that has stoked tensions between the two Communist-ruled neighbors divided by a history of distrust, China's official news agency said on Wednesday.

Diplomats signed the six-point agreement on Tuesday (October 11, 2011), while the General Secretary of the Vietnamese Communist Party, Nguyen Phu Trong, held conciliatory talks with Hu Jintao, who is China's Communist Party chief and president.

Vietnam and China, the Philippines - as well as, Brunei, Malaysia and Taiwan - stake conflicting claims of sovereignty over parts of the South China Sea, a potentially oil and gas rich body of water spanned by key shipping lanes.

Under the deal that builds on Beijing's efforts to cool tensions over rival territorial claims in the South China Sea, the two sides agreed to open a hotline to deal with potential maritime flare-ups and hold border negotiation talks twice a year.

"The two countries should remain committed to friendly consultations in order to properly handle maritime issues and make the South China Sea a sea of peace, friendship and cooperation," said the agreement, according to China's Xinhua news agency.

"Both sides should solve maritime disputes through negotiations and friendly consultations."

The bridge-building effort could dispel some of the rancour that has built up in the region, setting Beijing against Southeast Asian nations that have turned to the United States to counter growing Chinese military and political influence.

Last month, China's top official newspaper warned that a joint energy project between India and Vietnam in the sea infringed China's territorial claims.

In May and June, Vietnam accused Chinese vessels of harassing Vietnamese ships within Vietnam's exclusive economic zone. China denied its ships had done anything wrong.

Businessmen and diplomats say China has pressured foreign firms in deals with Vietnam not to develop oil blocks in the sea.

China helped Vietnamese Communist forces to victory in their decades-long fight against U.S. backed forces, but the two Asian nations have a history of mutual distrust reflecting Vietnam's anxieties about its much bigger neighbor. In 1979, they fought a short but bitter border war.

On the day that the agreement was signed, China's President Hu told Vietnam's party chief Trong their two countries should try to get along.

Inspite of the Philippines leading for the Unity for the ASEAN to solve the Spratlys disputes; China still insist for 1 on 1 resolution and refused the challenge of the Philippines to bring the issue to the United Nations ITLOS. 

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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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Royal Dutch Shell Plc toplist the Philippines as Investment priority

Royal Dutch Shell- Shell Philippines Exploration BV is interested to invest another $1 billion to increase the production of the Malampaya deepwater gas-to-power project off Palawan and announced earlier that it would pursue its Floating Liquefied Natural Gas (LNG) Project in the Philippines. Shell Philippines vice president for communication Roberto S. Kanapi said there are opportunities for investment and expansion, unlike in the past when the Philippines was placed on low priority.

OIL AND GAS: The fifth largest company in the World - Royal Dutch Shell Plc has placed the Philippines in its investment map as it sees growth opportunities in the country.

The Royal Dutch Shell plc commonly known as Shell is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world (and the second-largest energy company) according to a composite measure by Forbes magazine and one of the six oil and gas "Super Majors". It is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power.

Shell has operations in over 90 countries including the Philippines and produces around 3.1 million barrels of oil equivalent per day and has 44,000 service stations worldwide

On a press conference in the Philippines, Shell V-President for communication Roberto S. Kanapi told reporters that there were opportunities for investment and expansion in the Philippines, unlike in the past when the Philippines were placed on its low priority.

“Increasing demands, opening of several areas for oil and gas exploration and strengthen competition makes the industry exciting as the Philippines untapped resources opens its gate for early birds. Shell did not show any details yet but putting the Philippines for their high priority of investments might say there are lots of things to happen soon... There are plans for Shell in the Philippines as saw that the Philippines is an attractive market and a growing market at that. And I think the change in governance also helped a lot,” Kanapi explained.

“As for the cases we are facing, we will go to courts with that and that is part of doing business in the Philippines, but we are prepared for that. We are looking more into the opportunities than the threats,” he added.

The Shell Companies in the Philippines is now in the process of completing a study that will determine the next steps for its refinery in Tabangao, Batangas—as to whether it will be expanded or upgraded to cater to the increasing local demand.

Kanapi said that they expected to complete the study next year in 2012. The decision to list Shell on the local bourse would also largely hinge on the results of the study, he added.

Royal Dutch Shell, through its upstream unit Shell Philippines Exploration BV, is likewise showing interest  to invest another $1 billion to increase the production and extend the life of the Malampaya deepwater gas-to-power project off Palawan.

SPEX, along with other consortium members Chevron and PNOC Exploration Corporation, plans to invest about $250 million for the second phase of the Malampaya project, which will entail the drilling and development of two additional wells. This is expected to be completed by February 2014. Another $750 million will be invested for the third phase, which will involve the installation of a new platform where additional equipment and facilities will be housed by December 2015.

“The projects, entailing new investments, are seen to further benefit the Philippines in energy self-sufficiency and government revenues and will continue to be a major source of power for Luzon’s energy requirements in the years to come,” SPEX said.

Meanwhile, Royal Dutch Plc has also expressed interest in participating in the liquefied natural gas program of the government.

Edgar Chua, country chairman for Shell Companies in the Philippines, had said that the company was interested in becoming a supplier of LNG as well as in putting up the necessary infrastructure, including the “regasification” facility and pipelines which required huge investments.

Mr. Chua did not indicate if Shell would be interested in bidding for the proposed 100 kilometer Batangas-Manila natural gas pipeline that will require as much as $1.3 Billion Dollars in investment of which $500 million will go to the construction of the pipeline while another $700 million to $800 million will be needed for the “regasification” facility and the receiving LNG terminal.

Chua only noted that Shell would likely look for other potential local partners for its planned foray into the Philippine LNG industry.

Royal Dutch Shell Plc announced earlier that it would pursue its Floating Liquefied Natural Gas (FLNG) Project in the Philippines.

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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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Why China refused to bring the Spratlys issue to the United Nations?

Is it because China knew that they can’t win over the spratlys so they refused to raise the Spratlys disputes to the United Nations?

Based on applicable international maritime and related laws, China knows that if she petitions the United Nations International Court of Justice or the International Tribunal for the Law of the Sea to affirm her dubious claim that she owns everything in the South China Sea aka West Philippine Sea — her chances of winning are about as likely as having a snowfall in the Sahara desert.

Both Courts have proper jurisdictions to settle sovereignty issues between nations regarding marine territories — such as those concerning the Spratly and Paracel islands.

Staging …..

Let’s imagine  what most likely would happen if  China does take her case to the International Court of Justice  and the representative of China — let’s call him Mr. Li — is before the Court headed by the Presiding Judge. Consider this scenario:

Judge:  “Please inform this Court of the basis for your claim that the entire South China Sea aka West Philippines Sea belongs completely to the People’s Republic of China?”

Mr. Li: “Thank you, your honor. Our claim is based on the historical fact that this entire area has belonged to us since the Han Dynasty.”

Judge: “How do you intend to prove your case?”

Mr. Li: “I will present to this Court an almost two thousand year old Han Dynasty map that indicates the limits of the Han Dynasty kingdom.”

Judge: “Let’s  assume for purposes of discussion  that  the Philippines, Vietnam, Malaysia, Brunei and other surrounding countries were provinces or part of the Han Dynasty during its time even if the map you hold may just actually be a navigational map which does not really define the limits of the Han Dynasty. Now my study of China’s history indicate that the Han Dynasty lasted from 206 B.C. To 220 A.D.  Is this correct?”

Mr. Li: “Yes your honor.”

Judge: “I assume Mr. Lee that you are familiar with Alexander the Great, the young Macedonian king who conquered much of the ancient world.”

Mr. Li: “I am, your honor.”

Judge: “At the time of his death in 323 B.C., Alexander’s kingdom included Greece, Syria, Persia now known as Iran, Egypt and a part of India. Are you aware Mr. Lee that Macedonia, Alexander’s country — is now known as the Republic of Macedonia?”

Mr. Li: “If you say so your honor.”

Judge: “Good! You appear to know your history. I assume you are also familiar with the Roman Empire which existed for over a thousand years.”

Mr. Li: “Thank you your honor, I do read history.”

Judge: “You are then aware Mr. Lee that at its height, the Roman Empire included most of Europe and parts of Africa and Asia.”

Mr. Li: “I am aware, your honor.”

Judge: “Now Mr. Lee, since the time of Alexander, the Roman Empire and the Han Dynasty — through the course of time and historical events, various  independent countries have emerged in Europe, Africa and Asia — which now have their own respective territories. This is a reality which  we all have to accept, wouldn’t you say?”

Mr. Li: “We cannot deny reality, your honor.”

Judge: “Now Mr. Lee, another undeniable reality is that Alexander’s empire, the Roman Empire and the Han Dynasty kingdom are no longer existent — am I correct in my observation?

Mr. Li: “You are correct, your honor.”

Judge: “Now Mr.Lee, in all candor, do you seriously believe that if the Republic of Macedonia and the Italian government were to come before this Court and petition us to affirm that they own the territories of these now independent countries because they were once a part of Alexander’s empire or the Roman empire — that we would be persuaded to grant these petitions?”

Mr. Li: “I understand what you are getting at, Judge — but most of what we are claiming as ours is marine area and not land.”

Judge: “The Spratlys and the Paracel islands are not land? Anyway, isn’t it a fact that China is a signatory to the 1982 United Nations Convention on the Law of the Sea (UNCLOS) which she ratified on July 6, 1996 thereby agreeing to be bound by its provisions — and part of which is that anything within 200 miles from the baseline of a country belongs to that country?

Mr. Li: “China did agree to those provisions at a time when it was not yet aware of the far reaching consequences of UNCLOS to her national interests.”

Judge: “I will not mince my words Mr. Lee. What you mean is that at that time, the world, including China, was not yet aware, that vast deposits of oil and natural gas were to be found within the territorial limits of neighboring countries. Now because of this awareness, even if China knows she is trespassing and violating international law, she is using the coercive might of her size, military or otherwise — to grab these enormous reserves of petrowealth from the territories of her smaller, weaker, poorer neighbors — who badly need these assets to improve the plight of their own people.

Postscript:  In view of all the facts and existing applicable law, the likelihood is that the UN court will find China’s petition to be without merit.

Notwithstanding requests from the Philippines, neighboring countries and the United States to bring West Philippine Sea sovereignty issues to the United Nations, China has steadfastly refused to do so. Instead, it is constantly involved in mind games, using scare tactics, insisting that everything in the whole West Philippines Sea is theirs and that this issue is non-negotiable.

By so doing, the gigantic oil hungry dragon seeks to condition the national minds of her neighbors to forcibly accept inequitable bilateral settlement agreements — without United Nations or United States involvement. The Philippines, Vietnam and other neighbor countries must not fall into this trap. They should unite and create an alliance and insist — with the aid of the global community, with military means if necessary — that China should respect their rights and leave their national patrimony alone.

The most loudly applauded part of President Benigno Simeon Aquino’s State of the Nation speech was his strong affirmation that what belongs to the Philippines stays in the Philippines. Everyone understood his meaning:  The Philippines will stand firm against China’s bully tactics and mind games in trying to grab our energy and marine resources.

What a big difference to have a trustworthy President who provides moral leadership and looks after the interests of the nation instead of one ready to sell out the country’s patrimony for personal gain.

Source:

http://globalnation.inquirer.net/7319/why-china-will-not-bring-the-spratlys-issue-to-the-united-nations

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