Filipinos: Salute to our South Korean Brother Died to defend their territory

Chinese fishing boat crew resisted being boarded in the latest clash over diminishing fishing stocks in the Yellow Sea stabbed to death a Korean Coastguard

A tribute to the South Korean coastguard officer Lee Cheong-ho, who was stabbed to death while trying to board a Chinese fishing boat. Photograph: Yonhap/EPA

The bloody dispute over diminishing fish stocks in the Yellow Sea has claimed another victim when the South Korean coastguard said one of its officers was fatally stabbed while trying to seize a Chinese fishing boat.

The killing, which prompted a diplomatic protest by Seoul, is the latest in a series of deadly clashes involving Chinese fishermen who are driven increasingly far from their own shores by the lack of stocks.

The officer was stabbed in the stomach and another injured when the Chinese crew resisted being boarded as they were fishing illegally about 55 miles (90km) from Socheong Island, the South Korean coastguard said in a statement.

A helicopter took the casualties to a hospital in Incheon, along with the Chinese boat captain, who was allegedly responsible for the stabbing and then injured in the fight, it said. The remaining eight crew members and their boat have been seized and are being taken to Incheon port, west of Seoul.

South Korea's foreign ministry summoned China's ambassador later on Monday and lodged a strong protest over the latest skirmish in an area of the Yellow Sea that Seoul claims as its exclusive economic zone.

As competition for mackerel, jellyfish, blue crab, croaker and anchovy has intensified, South Korea has seized about 470 Chinese ships for illegal fishing in the Yellow Sea so far this year, up from 370 in 2010.

The skirmishes are often violent. Last December, Beijing demanded compensation after a Chinese fisherman was killed and another went missing during a confrontation between South Korean coastguards and 50 vessels that were suspected of fishing illegally. In March, a coastguard official shot a Chinese fisherman in the leg during a fight with axes and shovels. Two months ago, South Korean coastguard officials used teargas to arrest 31 fisherman who resisted with shovels and staves.

The disputes are not so much about protecting fish stocks as competing for the economic exploitation of what is left. The market for anchovy, jellyfish, mackerel and croaker is increasingly lucrative as demand grows in China.

South Korea has ramped up its exports of marine products by more than 30% in the first nine months of this year, largely thanks to shipments to China more than doubling.

Last week, Seoul raised fines on illegal fishing by foreign boats and moves are afoot to change the law so catches can be confiscated.

"Eradicating Chinese boats' illegal fishing in our waters is a most urgent task to safeguard our fishermen and fisheries resources," South Korea's Yonhap news agency said in a recent editorial. "The government should mobilize every possible means and continue the crackdown on illegal fishing."

The East Asian neighbors have tried to ease tensions. In October, they agreed to reduce catches in each other's exclusive economic zones. Authorities in China's Liaoning province – the origin of many of the fishing boats – say they have tried to curb illegal fishing. But the domestic media say fishermen are driven further from the Chinese coast by pollution and overfishing.

Lu Chao of the Liaoning Academy of Social Science said the long-term problem was an excess of Chinese fishing boats, declining fish stocks and changing views about which waters belonged to which country.

"Traditionally, the older generation believed the fishing area belongs to China. Their grandchildren know they should get permission from the South Korean government to fish there, but the license is expensive so only 10% of them get it," he said in calling for calm. "If South Korea continues to enforce the law violently, it will increase conflict. The use of teargas and similar measures is excessive. Chinese fishermen will not stand for this treatment.

He said the Chinese government was trying to ease bilateral tension by encouraging fishermen to sail even further offshore, into international waters. But with demand for marine products rising, this looks likely to shift the pressure from East Asia on to global fish stocks.

Fishing has heightened diplomatic tensions with other nations in the region. In September 2010, Japan detained a Chinese trawler and its crew after a collision with a coastguard vessel.

The issue has also become the focus of long-standing territorial disputes, particularly in the South China Sea, where Beijing's efforts to assert sovereignty has led to unease – and occasional clashes – with the fishing boats and naval vessels of Vietnam and the Philippines.

Tribute to the Korean Victim: We encouraged all the readers to offer a short prayer for peace in all the country surrounding china and hope that there is a divine intervention for any conflict in the sea and we pray that china must learn how to be contented of what they had and they must stop invading neighbors.

To our Filipino Brothers: You must not forget that the Philippines lead for the victory of the South Korea over the communist North Korea during the Korean war; Filipinos' love to South Korea is already a culture. After the Korean War, the Philippines government helps the South Korea to stand up by funding and building infrastructure for their country, now even South Korea is already rich and more richer than the Philippines in terms of economy, still the Philippines is always be at the back of South Korea. Filipinos let hand in hand with South Korea as we are facing the same conflict with China.

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U.S. military leaves Iraq to Focus in Asia-pacific Security over China's aggression

U.S. soldiers gather before the start of a ceremony marking the end of the U.S. military engagement, with the last American troops withdrawing nearly nine years after the invasion that ousted Saddam Hussein, at the former U.S. Sather Air Base near Baghdad December 15, 2011. REUTERS/Mohammed Ameen

BAGHDAD (Reuters) - U.S. forces formally ended their nine-year war in Iraq on Thursday with a low key flag ceremony in Baghdad, while to the north flickering violence highlighted ethnic and sectarian strains threatening the country in years ahead.

"After a lot of blood spilled by Iraqis and Americans, the mission of an Iraq that could govern and secure itself has become real," Defense Secretary Leon Panetta said at the ceremony at Baghdad's still heavily-fortified airport.

Almost 4,500 U.S. soldiers and tens of thousands of Iraqis lost their lives in the war that began with a "Shock and Awe" campaign of missiles pounding Baghdad and descended into sectarian strife and a surge in U.S. troop numbers.

U.S. soldiers lowered the flag of American forces in Iraq and slipped it into a camouflage-colored sleeve in a brief outdoor ceremony, symbolically ending the most unpopular U.S. military venture since the Vietnam War of the 1960s and 70s.

The remaining 4,000 American troops will leave by the end of the year.

Toppled Iraqi leader Saddam Hussein is dead, executed in 2006 and the worst sectarian violence has, at least for now, passed. But Iraq still struggles with insurgents, a fragile power-sharing government and an oil-reliant economy plagued by power shortages and corruption.

 

A member of U.S. security personnel pulls her luggage while waiting to depart from Iraq, at the former U.S. Sather Air Base near Baghdad December 15, 2011. REUTERS/Mohammed Ameen

"Iraq will be tested in the days ahead, by terrorism, by those who would seek to divide, by economic and social issues," Panetta told the rows of assembled U.S. soldiers and embassy officials at the ceremony. "Challenges remain, but the United State s will be there to stand by the Iraqi people."

In Falluja, the former heartland of an al Qaeda insurgency and scene of some of the worst fighting in the war, several thousand Iraqis celebrated the withdrawal on Wednesday 9December 14, 2011), some burning U.S. flags and waving pictures of dead relatives.

Around 2,500 mainly Shi'ite muslim residents of the northern territory of Diyala protested on Thursday in front of the provincial council building for a second day against a move to declare autonomy from the mainly Sunni Salahuddin province.

Police used batons and water cannon to disperse demonstrators who tried to storm the council headquarters, witnesses said. Some protesters climbed to the roof of the building and raised green and black Shi'ite flags.

Some parts of Diyala are disputed territories between the minority Kurds in the north and Arab Shi'ite-led government in Baghdad. The long-standing dispute over land, oil and power is considered a potential flashpoint for future conflict in Iraq after American troops depart.

Iraq's neighbors will watch how Baghdad tackles its sectarian and ethnic division without the U.S. military. Events there could be influenced by conflict in neighboring Syria that has taken on a sectarian hue in recent weeks.

U.S. President Barack Obama, who made an election promise to bring troops home, told Iraqi Prime Minister Nuri al-Maliki that Washington will remain a loyal partner after the last troops roll across the Kuwaiti border.

"I AM HAPPY BUT WE NEED TO BE SAFE"

Iraq's Shi'ite leadership presents the withdrawal as a new start for the country's sovereignty, but many Iraqis question which direction the nation will take without U.S. troops.

"I am happy they are leaving. This is my country and they should leave," said Samer Saad, a soccer coach. "But I am worried because we need to be safe. We are worried because all the militias will start to come back."

Some like Saad fear more sectarian strife or an al Qaeda return to the cities. A squabble between Kurds in their northern semi-autonomous enclave and the Iraqi Arab central government over disputed territories and oil is another flashpoint.

Violence has ebbed since the bloodier days of sectarian slaughter when suicide bombers and hit squads claimed hundreds of victims a day at times as the country descended into tit-for-tat killings between the Sunni and Shi'ite communities.

In 2006 alone, 17,800 Iraqi military and civilians were killed in violence.

Iraqi security forces are generally seen as capable of containing the remaining Sunni Islamist insurgency and the rival Shi'ite militias that U.S. officials say are backed by Iran.

But attacks now target local government offices and security forces in an attempt show the authorities are not in control.

Saddam's fall opened the way for the Shi'ite majority community to take positions of power after decades of oppression under his Sunni-run Baath party.

Even the power-sharing in Maliki's Shi'ite-led government is hamstrung, with coalition parties split along sectarian lines, squabbling over laws and government posts.

Sunnis fear they will be marginalized or even face creeping Shi'ite-led authoritarian rule under Maliki. A recent crackdown on former members of the Baath party has fueled those fears.

Iraq's Shi'ite leadership frets the crisis in neighboring Syria could eventually bring a hardline Sunni leadership to power in Damascus, worsening Iraq's own sectarian tensions.

"WAS IT WORTH IT?"

U.S. troops were supposed to stay on as part of a deal to train the Iraqi armed forces but talks over immunity from prosecution for American soldiers fell apart.

Memories of U.S. abuses, arrests and killings still haunt many Iraqis and the question of legal protection from prosecution looked too sensitive to push through parliament.

At the height of the war, 170,000 American soldiers occupied more than 500 bases across the country.

Only around 150 U.S. soldiers will remain after December 31 attached to the huge U.S. Embassy near the Tigris River. Civilian contractors will take on the task of training Iraqi forces on U.S. military hardware.

Every day trucks with troops trundle in convoys across the Kuwaiti border.

"Was it worth it? I am sure it was. When we first came in here, the Iraqi people seemed like they were happy to see us," said Sgt 1st Class Lon Bennish, packing up recently at a U.S base and finishing the last of three deployments in Iraq.

"I hope we are leaving behind a country that says 'Hey, we are better off now than we were before.'"

BACK TO ASIA PACIFC

In Australia, US President Barack Obama  agreed to expand the US military presence in Australia; and vowed military support for the Philippines, indicating US concerns over an increasingly aggressive China.

The US-Australia agreement, announced during a joint news conference with Australian Prime Minister Julia Gillard, will position more US equipment and increase military personnel in Australia.

"With my visit to the region I am making it clear that the United States is stepping up its commitment to the entire Asia-Pacific region," Obama said during his visit.

Deployment of an initial company of 200-250 Marines would begin in 2012 and expand to up to 2,500 eventually, Gillard said.

The move may be seen by Beijing as further evidence of Washington's attempt to encircle China, with US bases in Japan and Korea and now in Australia.

Obama also plans to raise maritime security in the South China Sea at the annual summit of the Association of Southeast Asian Nations (ASEAN) on Bali and will give 24 F-16 Fighter to Indonesia.

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Indonesia supports Philippines stand on Spratlys - Buy 24 F-16 Fighters

Indonesia is keeping its support for the Philippine proposal to delineate and segregate the disputed parts of the South China Sea from the undisputed areas in drafting the Code of Conduct that will bind countries with territorial claims in the Spratlys group of islands.

Foreign Minister Marty Natalegawa said the guidance from the ASEAN Summits is how to link the Philippine proposal for a Zone of Peace, Freedom and Cooperation to the drafting of the Code of Conduct in 2012.

"We don't move out of the script from what has already been (agreed upon)," Natalegawa said at the conclusion on Wednesday of the 5th Joint Commission for Bilateral Cooperation between Indonesia and the Philippines.

He said the Code and the Zone are in the interest of the Association of South East Asian Nations (ASEAN) which has four members — Philippines, Malaysia, Vietnam and Brunei — with South China Sea claims.

Leaving things unresolved will continue to cause conflict and disrupt peace and stability in the region," said Natalegawa. "Asean as a whole has a very strong interest to settle the dispute peacefully in accordance with maritime laws."

Indonesia's top diplomat said ASEAN leaders would like to see the Code in place by 2012, in time for the 10th anniversary of Declaration of Conduct of Parties in the West Philippines Sea (South China Sea).

During the talks, the Philippines and Indonesia approved a 2013-2015 action plan to advance trade, security, defense, border, and cultural cooperation.

The Philippines said it is open to hosting the 6th Meeting of the Joint Working Group of Senior Officials next year to implement the existing Agreement on Trade, Investments, Handicraft and Shipping, as well as review and update the Border Trade Agreement.

Indonesia to buy 24 refurbished US F-16 fighters

Will boost ability to protect "outermost" border regions

Second militarily significant announcement of Obama trip

May stir questions about Taiwan's request for F-16C/Ds

USA plans to supply 24 refurbished F-16C/D fighter aircraft to Indonesia, the presidents of the two countries announced in Bali on Friday on the fringes of an Asia-Pacific summit.

It was the second militarily significant announcement of President Barack Obama's ongoing nine-day Asia-Pacific trip.

The upgraded Lockheed Martin Corp F-16s will give Indonesia a "much-needed" capability to protect its sovereign airspace, the White House said in a "fact sheet" that emphasized the relatively low price tag, put at $750 million by the Pentagon.

Under a separate tightening of ties with Australia, U.S. Marines will start rotating through northern Australia next year, eventually growing to a 2,500-strong task force, the two governments said during a visit by Obama before he flew to neighboring Indonesia for the summit with leaders of the Association of Southeast Asian Nations.

The Pentagon's Defense Security Cooperation Agency said Jakarta was seeking more capable F-16s able to carry out operations "in the outermost border regions of Indonesia."

The air force's existing fleet of 10 F-16 A/Bs cannot do this, the agency said in a mandatory notice of the tentative deal to the U.S. Congress. It put the estimated cost at $750 million. The aircraft are from excess U.S. inventory.

"The proposed sale will contribute to the foreign policy and national security of the United States by improving the security of a strategic partner that has been, and continues to be, an important force for economic progress in Southeast Asia," the notice to lawmakers said.

The White House said the plan was to start deliveries by July 2014, as requested by Jakarta. The deal would help boost Indonesia air defenses significantly "without compromising the defense budget and other national priorities," it said.

The transfer of F-16C/D models to Indonesia may raise new questions about Obama's refusal to meet Taiwan's standing request for 66 new F-16C/Ds of its own to help deter China, which regards the island as a rogue province.

The Obama administration in September notified Congress of a proposed $5.85 billion weapons package for Taiwan, including upgrades of 145 F-16 A/B fighters but none of the C/D models that Taiwan has sought.

Obama said on Thursday in Canberra the U.S. military would expand its presence in the Asia-Pacific despite budget austerity, declaring the United States was "here to stay" as a Pacific power that would help shape the region's future.

The F-16 deal involves the overhaul of 28 United Technologies Corp Pratt & Whitney engines including spares. The aircraft will have the most advanced "Modular Mission Computer" produced by Raytheon Co, along with improved radar, avionics and the capability to carry and field more advanced weaponry and sensors, the White House said.

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Chinese carrier pictured at sea - China Facing Neighboring Anger

WASHINGTON - A satellite image of China's first aircraft carrier has been captured while the vessel was undergoing sea trials in the Yellow Sea, a US company said on its website Thursday.

The 300-metre ship, a refitted former Soviet carrier, was photographed on December 8, said Colorado-based DigitalGlobe Inc, and an analyst from the company spotted it when reviewing images five days later.

The Beijing government said earlier this month that the carrier had started its second sea trial after undergoing refurbishment and testing.

The ship underwent five days of trials in August that sparked international concern about China's widening naval reach amid growing regional tensions over maritime disputes and a US campaign to assert itself as a Pacific power.

The West Philippines Sea (South China Sea), which is believed to be rich in oil and gas and is claimed by several countries, has dominated such disputes involving China, leading to run-ins with rival claimants including Vietnam and the Philippines.

Chinese President Hu Jintao on December 7 urged the navy to "accelerate its transformation and modernization" and "make extended preparations for military combat" to safeguard national security.

Beijing only confirmed this year that it was revamping the Soviet ship, the Varyag, and has repeatedly insisted that the carrier poses no threat to its neighbors and will be used mainly for training and research purposes.

But the August sea trials were met with concern from regional powers including Japan and the United States, which called on Beijing to explain why it needs an aircraft carrier.

China only provided the first official acknowledgment of the carrier in June when Chen Bingde, the nation's top military official, gave an interview to a Hong Kong newspaper.

Nepal & Myanmar Rejects China, SKorea and Japan hard Stance against China

China is facing increasingly hardened diplomatic attitudes from its neighboring countries, with four – Nepal, Myanmar, South Korea and Japan – allowing protests at varying degrees of what is considered Chinese belligerence.

A South Korean coastguard official was stabbed to death at sea after the Korean coastguard intercepted a Chinese fishing vessel in its waters in an incident the South Korean media have talked up as "Chinese Piracy at Sea." The Chinese vessel's captain has been charged with murder and 17 Chinese fishermen have been detained. The situation further deteriorated between the two countries after what sounded like a gunshot was fired at a window of the South Korean Embassy in Beijing on Tuesday afternoon.

Tokyo is expected to lodge protests after China sent their new, and largest 3,900-ton armed patrol ship on its maiden voyage to islands and areas considered disputed between China and Japan, including several offshore oil and gas fields and various Sino-Japanese joint development zones.

Also, in highly unusual moves, Premier Wen Jiabao's scheduled trips to Nepal and Myanmar next week have both been cancelled. Myanmar, which recently hosted US Secretary of State Hillary Clinton recently cancelled a Chinese project to build a Dam on the Irrawaddy River. No explanation has been given for the Nepal cancellation.

China has been more assertive recently in refusing to give ground over disputed border areas, and appears to have been playing too hard to gain projects through use of financial and trade muscle. The Chinese efforts to extend territorial land borders with India, where it claims the State of Arunachal Pradesh in its entirety, as well as parts of Ladakh and Kashmir, have long grated with India. Meanwhile, attempts to claim the whole of the South China Sea, in addition to parts of the East China Sea and Yellow Sea have been stepped up. 2point6billion learns that Chinese Embassy officials around the world have been paying particular attention to antique dealers in maps and similar cartographic relics, buying up whatever they can find, presumably in order to prove long held claims or to destroy examples that do not fit with their stated aims. Officials from nations affected by such territorial disputes may wish to consider the importance of such items concerning both cartographic and anecdotal evidence in ancient and historic documents.

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The West Philippine Sea? Not South China Sea!

New Leaders Forum contributor Javad Heydarian speaks with Right Livelihood Award winner Walden Bello about China, the U.S. role in Asia and his call for the renaming of the South China Sea.

In light of China's increasingly bellicose rhetoric and recent incursions in the South China Sea, you were among the first leading Filipino figures to call for a more "assertive" position by the Philippine government by drafting a resolution that called upon the executive branch to rename the South China Sea as the "West Philippine Sea." Was this proposal more of a symbolic gesture, or a tactical move to strengthen our claims in the Spratly islands?

Of course, the primary battle was at the politico-psychological level. If you keep on calling a site the South China Sea, it subliminally connotes some kind of "possession" by China.  This is in light of the fact that often times our actions and thoughts are guided and shaped by forces that operate on the subliminal level. For us Filipinos, calling the area the West Philippine Sea marks a subliminal paradigm change. Suddenly the name that always carried China is now changed. This was a psychological blow to China.

Our proposal was also symbolic. It was meant to show to the world that our claims to the Spratly Islands are legitimate. There was also a tactical-legalistic dimension to our proposal, in terms of advancing our legitimate claims. There would be an impact in terms of advancing the legality of our claims to parts of the Spratly Islands and our exclusive economic zone (EEZ), which we are entitled to based on the U.N. Convention on the Law of the Sea (UNCLOS).

Did the terms West Philippine Sea carry any specific spatial demarcation or geographical specificity? Why did you choose to name the area after the Philippines when there are other claimant countries aside from China?

We didn't make any clear demarcations. The resolution wasn't meant to connote a specific territorial boundary. We wanted it just to reflect that this wasn't China's sea. We are by no means fixed with regards to our attitude to the name. We are open to multilateral arrangements and diplomatic solution. We are even open to calling it the Southeast Asia Sea or ASEAN Sea or what have you. Our proposal was at most a symbolic and politico-psychological move.

Earlier this year, you led the so-called "peace and sovereignty mission," composed of congressional delegations, government officials, media, and members of the armed forces, in the Spratly islands, despite vehement opposition from Beijing. What was your primary objective in organizing this mission? In your opinion, to what extent was the mission successful? And, to what degree do you think that the mission reflected greater public sentiment?

Firstly, I think the mission reflected tremendous public sentiment. I think there's no doubt in Filipino minds that we have rightful claims in the area. Second, we wanted to support our government stance that we have rightful claims in the Spratly Islands, and that we have a 200-mile Exclusive Economic Zone.  Most importantly, we wanted to reflect the country's desire for a peaceful settlement of the issue. This was the main objective. Going there in a civilian plane and leading a congressional delegation had a very high impact. We wanted to make clear the reality that this isn't just a diplomatic game, but instead it's about the interests of the people. We had several audiences, but we definitely wanted to signal to China that they can't get away with such brash claims that the entire West Philippine Sea belongs to them. We wanted to remind Beijing that it can't take its neighbors for granted and just advance any claim it wishes to.

This was also an effort on our part, in term of messaging to China, that it should not follow the path of other imperial powers. Unfortunately, in this case, China was threading this path, and we wanted it to move away form that path before it was too late. What we didn't expect was the vehement Chinese reaction, when they condemned the mission, denying our right to visit the area. This made the issue even bigger and more controversial. I'm very surprised at how China's diplomacy, known for its sophistication, made a very bad mistake by polarizing the issue further, coming off to the world as a bully.  They were practically telling others where they can and can't go.

What do you think is the main driver behind China's increasingly assertive behavior in the area?

There are several explanations. First, geo-economic factors are at play, serving as a motivation for some actors in Beijing to think that given China's economic trajectory – and all the needs of the country to reach developed country status – they need to secure as many resources as possible, particularly in resource-rich areas, such as the West Philippine Sea, which are adjacent to the mainland. So it's basically about locking up necessary resources to keep up the economic push.

Another explanation is that since China has achieved the first stage of economic modernization, namely the transition from an agricultural to an industrial economy, it has entered into a post-Deng period of "national assertiveness" in both the military and diplomatic realms. Third, China is developing its navy, and the navy has been aggressively espousing its bureaucratic interests at the expense of other branches of the military, by emphasizing China's need to assert itself in adjacent maritime waters. This is, after all, about China's long-term bid to match U.S. supremacy in global waters.

The three factors are interrelated explanations. I think all three are functioning here to a certain degree. Does this mean China is moving onto an imperial path? I don't think so, but there's a danger of it happening. Yet the cooler heads and more strategic minds could still prevent this.

What was your impression when the Department for Foreign Affairs and the armed forces decided to formally adopt your proposal to rename the disputed waters as the "West Philippine Sea"? Do you think this was a reflection of a renewed strategic posturing by the Philippine state, or more of a symbolic move to stoke brewing nationalist sentiment among the Filipino populace?

I think they were getting worried about Chinese incursions, and how they have been harassing our fishing boats and exploratory ships, preventing them from navigating the area. Perhaps they weren't expecting our proposal to come up. I remember my earlier conversations with Department of Foreign Affairs people, who focused on territorial disputes in the area. They were very excited about the possibility of our proposal coming out. They reacted very positively and said our idea is very good. In light of our weak military capabilities, the resolution provided a symbolic counter-attack, which was very effective. They realized how powerful "discourse" is. People realized that discourse was power. So our proposal carried immense tactical and symbolic implications, which were welcomed by the executive branch as well as the country's armed forces.

To what degree do you think America's apparent decline is influencing China's regional behavior? Is China exploiting a perceived shift in the global balance of power?

There's a growing recognition that the U.S. has overextended its strategic reach, while China has risen to become the world's second largest economy. Of course, it's just a matter of time before China becomes the world's preeminent economic and also military power. Cognizant of America's relative decline, and confident of China's steady rise, it comes as no surprise if some hawks in Beijing and the People's Liberation Army have this increasing feeling that China must have it's place in the sun.

However, the trend towards greater assertiveness isn't irreversible. There's nothing inevitable with respect to China's behavior. Surely, China can remain rational and calculated in its external behavior? In my opinion, China's increasing assertiveness should be seen from a more structural, rather than ideological, point of view. The country's resource-intensive export-oriented model of development has placed immense pressure on the state to secure as much in raw materials – from hydrocarbon resources to minerals and agricultural products – as possible to sustain its current pace of growth. Unless China makes a decisive shift towards a more stable and tempered form of domestic market oriented model of development, the Chinese state will always feel the compulsion to secure strategic natural resources at any cost. Therefore, it's very important for China to focus on re-structuring its current model of development, which relies heavily on resource-import and energy-intensive production.

What's your impression of the Obama administration's apparent "re-focus" or "re-engagement" with the Asia-Pacific region? This was very explicit in Hillary Clinton's Foreign Policy article, 'America's Pacific Century,' which underlined America's commitment to remain as an anchor of stability and prosperity in the trans-Pacific region. Strategically, do you think that this policy of "re-engagement" is simply a veiled attempt by Washington to "contain" or constrain China's continued rise? 

It seems a desperate effort by the Obama administration to disentangle from the Middle East in order to have a piece of the Asian miracle. There's an element of a "scramble" for Asia's booming markets. But, there's nothing new with Obama's policy. President Bill Clinton was among the first leaders to focus his efforts on East Asia, recognizing the region's economic dynamism and the benefits of greater trans-Pacific economic interaction and cooperation. Despite his initial identification of China as a strategic competitor, the exigencies of the "War on Terror" forced President Bush to increase America's cooperation with China and other East Asian countries. My sense is that Obama's re-engagement with Asia is informed by a sense of panic with the pace of China's rise. There seems to be this lurking nostalgia for containing China. But, China is simply too big and powerful to contain. Any attempt at containment is doomed to fail. Moreover, given how America is still embedded in the Middle East – in light of the Arab uprisings, growing tension with Iran, troubles in Iraq, and the ongoing war in Afghanistan – this shift or re-focus on the Asia-Pacific region would be very difficult.

Let's talk about strategic options for the Philippines as far as managing territorial conflicts with China are concerned. Do you feel that ASEAN has the institutional requisites and necessary political will to be helpful on this issue? Or do you think that the Philippines should strengthen its alliance with the U.S. as some kind of hedge against Chinese aggression?

I think that there's a fundamental zero-sum relationship between pursuing multilateral solutions, within the ASEAN framework and under the auspices of the UNCLOS, on the one hand, and creating a bipolar Sino-American face-off by bringing America into the picture, on the other. The Philippine state should choose the multilateral option as its sole strategy in dealing with our disputes in the West Philippine Sea. Sure, ASEAN has its own shortcomings, but serious issues of common concern, such as territorial disputes in the West Philippine Sea, should serve as an impetus for greater institutional development.

There are a lot of opportunities and ways by which ASEAN could be more constructive and productive on this particular issue. I believe that it's time for ASEAN to grow up, develop a collective security arrangement, push forward with the establishment of a regional economic bloc, and deepen its engagements with the region's civil society. Such institutional growth and regional integration would allow ASEAN to play a more decisive role in managing and resolving territorial conflicts, which threaten regional stability and prosperity.

We already see some positive developments in dealing with disputes in the area. For instance, we have recently witnessed efforts by ASEAN leaders to draft and implement a more binding code of conduct in the West Philippine Sea. Development of appropriate guidelines would be extremely crucial, and such efforts are already underway. Most importantly, ASEAN should use its deepening economic interdependence with China as some sort of leverage to moderate Beijing's behavior and encourage a more rational and peaceful resolution of conflicts. After all, China relies heavily on Southeast Asian countries' resources to feed its booming economy and growing needs.

In your opinion, what's the most optimal and effective solution or approach to our territorial concerns in the region? What sorts of strategies could we adopt to influence China's behavior? Do we have any leverage on China at all, given its immense economic dominance in Southeast Asia?

In my opinion, there are three things that the Philippines should do. First, we should maintain a strong posture. This means that we have to clearly communicate to Beijing and our partners that while we are committed to a peaceful resolution of the dispute, we are also equally committed to our national territorial integrity. We are willing to use all diplomatic and political tools at our disposal in order to defend and protect our legitimate territorial claims in the West Philippine Sea.

Second, we have to emphasize a multilateral settlement of the issue. All claimant countries should come to the table and resolve this issue within a constructive atmosphere, which espouses dialogue, discourages the use of force, adheres to principles of international law, and respects regional norms as enshrined by the ASEAN charter.

Lastly, our allies and us should refrain from bringing America into the picture. This will only lead to a great power conflict, which would compromise our efforts to resolve conflicts in accordance with the principles of international law and regional dialogue.

Walden Bello is the author of more than a dozen books including 'Dilemmas of Domination: The Unmaking of the American Empire (2005).' He was awarded the Right Livelihood Award (also known as the Alternative Nobel Prize) in 2003. http://the-diplomat.com/new-leaders-forum/2011/12/15/the-west-philippine-sea/

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Philippines climbs six notches on WEF financial development ranking

The Philippines ranked higher at the Global Financial Development Index 2011 released by the World Economic Forum (WEF), thanks to the boost from the country's nonbanking services and financial markets. Download the full report

The jump to No. 44 this year from No. 50 last year highlights the gains made in the insurance sector, as well as the advances noted in the domestic capital markets, whose depth and width has broadened.

The Philippines was the biggest gainer among members of the Association of Southeast Asian Nations included in the index.

The country also improved its overall score to 3.13 points in 2011, up 0.17 points from 2.96 points in 2010. The increase in its score made the Philippines among the top 10 biggest gainers in the index.

"The Philippines improved significantly over the past year, moving up an impressive six spots in the index. Financial intermediation remains an area of strength for the Philippines as its nonbanking financial services and financial markets continue to develop," the report said.

The index measures financial development of countries through seven pillars, such as institutional environment, business environment, financial stability, banking financial services, nonbanking financial services, financial markets and financial access.

The Philippines's highest rankings were in nonbanking financial services (No. 20, with a score of 2.53 points) and in financial markets (No. 33, with a score of 2.04 points).

The WEF also paid tribute to advances the Philippines and its regulators made in such fields as securitization, where new investment instruments are carved out of a pool of assets; or in the field of mergers and acquisitions, where the Bangko Sentral ng Pilipinas has made significant progress in reducing the number of banks and financial institutions and transforming them into leaner but stronger entities able to compete with some of the best in the region.

Nevertheless, the Philippines failed to convince the WEF that the local business environment was as conducive to doing business compared with other countries in the region. The lowest rankings of the country were in business environment where it was ranked No. 55, and in financial access (No. 50).

Philippine regulators are some of the first to admit that some key sectors of the economy could benefit from greater competition from foreign players but so far, these have been kept beyond the reach of overseas interests that have the financial clout and economies of scale to provide greater efficiency levels translating to lower cost for Filipino consumers.

The country's relative lack of physical infrastructures such as grains silos or farm-to-market roads, for example, also help keep the Philippines a fairly expensive place to commit long-haul investments, according to the WEF.

"Its business environment and financial access continue to hinder its development. A weak business environment is the result of lack of infrastructure and an extremely high cost of doing business. Other impediments include limitations in financial access in areas such as foreign direct investment and the total number of ATMs," the report stated.

Hong Kong overtakes US, UK  

"Hong Kong Special Administrative Region overtakes the United States and the United Kingdom to top the World Economic Forum's fourth annual Financial Development Report. As the first Asian financial center to achieve this rank, Hong Kong's position was bolstered by strong scores in non-banking financial services such as IPO activity and insurance," the WEF said.  

The Financial Development Report "aims to provide a comprehensive means for countries to benchmark various aspects of their financial systems and establish priorities for improvement. It is published annually so that countries can benchmark themselves and track their progress over time." 

For the various index components, the 60 countries were rated using a 7-point scale with 7 being the highest value. The Philippines' 44th ranking was the result of an overall rating of 3.1 out of a highest possible 7.0.

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Philippine Navy Launches BRP del Pilar & BRP Tagbanua for Spartlys

The country's largest warship will be deployed in the West Philippine Sea before Christmas to guard the country's borders, a Navy officer said yesterday.

Speaking at Navy headquarters in Manila, Navy Capt. Alberto Cruz, commanding officer of BRP Gregorio del Pilar, said they are awaiting orders from the military leadership on the ship's deployment.

"It will be deployed within this month, before Christmas. This will secure the territory of the Philippines," Cruz said.

Cruz said the ship's travel time from Manila to the West Philippine Sea would be about 24 hours.

The ship's crewmembers were selected from various naval units, he added.

Cruz said the sailors manning the ship are part of the Navy's "cream of the crop."

"The crewmembers will spend Christmas inside the ship," he said.

The Navy commissioned the Gregorio del Pilar at Pier 13 in South Harbor, Manila at 10 a.m. yesterday.

It is the country's first Hamilton-class cutter.

President Aquino witnessed the commissioning of the Gregorio del Pilar, which was acquired from the US Coast Guard early this year.

Aquino also led the commissioning of the BRP Tagbanua, a landing craft utility that is 100 percent Filipino made and the BO105 helicopter donated by the Tourism department.

Three of Aquino's sisters served as principal sponsors of the two ships and aircraft.

This was in line with a tradition of tapping females to serve as sponsors of maritime assets to be commissioned.

 

BRP Tagbanua - Philippines' locally made ship

Navy officials and the principal sponsors broke a bottle of local basi wine on the ships' bows for good luck and smooth voyage.

In other countries, bottles of champagne are used for the ceremony.

Basi, made of sugarcane, was also poured on the newly commissioned BO105 helicopter.

Navy chief Vice Adm. Alexander Pama said the Gregorio del Pilar is "the symbol and icon of our capability upgrade and modernization program."

"The (BRP Gregorio del Pilar) will now steam as the vanguard of your Navy as she now leads our fleet in fulfilling our obligation to secure our maritime nation's territorial integrity and sovereignty and protect our exclusive economic zone," he said.

"All these have become a reality for us only because of the obstinate desire of our President and Commander-in-Chief to provide your Navy with the necessary wherewithal to perform its missions and functions."

Aquino's elder sister Maria Elena "Ballsy" Cruz served as the principal sponsor of the warship.

Early this year, the government acquired its first Hamilton-class vessel from the US Coast Guard to enhance the military's external defense capabilities.

The 380 feet-long vessel Gregorio del Pilar was acquired under the US Foreign Military Sales program.

The ship's transfer cost was pegged at about ₱450 million and was bankrolled by proceeds from the Malampaya funds.

The Navy also commissioned the Tagbanua, a locally built Navy landing craft utility named after an indigenous group in Palawan.

Navy spokesman Lt. Col. Omar Tonsay said the ship is primarily designed to transport combat personnel, tanks, vehicles and cargo.

The government spent ₱180 million from the military's modernization funds for the ship, which was manufactured by shipbuilder Propmech.

Presidential sister Victoria Elisa "Viel" Dee served as the principal sponsor of the ship.

Robert Cursod Jr., leader of the Tagbanua tribe after which the ship was named, was present during the ceremony.

Also commissioned yesterday was a BO105 helicopter named Philippine Navy Helicopter 422.

The helicopter was donated by the Tourism department's Tourism Infrastructure and Enterprise Zone Authority last August.

Tonsay said the helicopter is ready for deployment after the Naval Air Group undertook a few repairs. Presidential sister Aurora Corazon "Pinky" Abellada served as principal sponsor of the helicopter.

In the same event, the Navy renamed the presidential yacht Ang Pag Asa (hope) to Ang Pangulo.

The yacht was renamed "to continue the heritage and carry the honor and prestige of the Philippine presidency."

The Ang Pangulo has been the presidential yacht since the time of President Diosdado Macapagal and was originally named RPS Roxas.

5 new choppers

The Navy is set to acquire five new helicopters next year.

Marine Col. Ariel Caculitan, Naval Air Group commander, said acquisition of the helicopters is already on the pipeline.

"The acquisition of the additional five helicopters is a big lift to our naval air capability," he said.

The Navy has 10 operational fixed wings air assets, four of which are trainer planes, six islanders and three helicopters, he added.

Caculitan said the five helicopters will be deployed on board two Hamilton-class cutters which the Navy is acquiring from the US in the first quarter and second quarter next year.

Dellosa orders reforms

New Armed Forces chief Lt. Gen. Jessie Dellosa has ordered his troops to continue undertaking reforms in their financial system and to implement security plan Bayanihan and disaster response measures.

Armed Forces spokesman Col. Arnulfo Burgos Jr. said yesterday Dellosa issued the directives during his first command conference as chief of the 120,000-strong military last Monday.

"He (Dellosa) asked the commanders to continue the reforms started by (former military chief) Gen. (Eduardo) Oban," he said. "He said we should continue enhancing our financial and logistics system."

Burgos said Dellosa outlined his four priority areas during the command conference, namely the internal peace and security plan Bayanihan, disaster preparedness, territorial defense and organizational reforms.

The command conference was held immediately after Dellosa assumed as military chief in Camp Aguinaldo, Quezon City, he added.

The meeting only lasted for about 30 minutes, Burgos said.

Dellosa was installed as the 43rd chief of the Armed Forces last Monday.

During his assumption, Dellosa vowed to continue adhering to the principles of Bayanihan by engaging with civilian stakeholders.

"Many efforts are now being focused on poverty, social injustice, and graft and corruption," he said.

"In this aspect of work, it should be clear that the role of your AFP is not to lead but to support.

"To further ensure that we achieve the desired end state, we shall vigorously engage all stakeholders, especially the local chief executives in affected areas."

Dellosa also stressed the need to prepare for climate change and other natural hazards.

"We shall enhance our commitment to cushion the effects of climate change by envisioning a very comprehensive approach on disaster preparedness, enjoining all local community assets and human resources," he said.

Dellosa also vowed to continue upgrading the military's capabilities to protect the country's territory and sovereignty.

"Development of navy and air force bases and facilities to efficiently respond to untoward incidents is something we can no longer ignore," he said.

He also promised to work for the realization of the Philippine defense reform and to improve AFP's structure to achieve a lean and capable active force.

Meanwhile, Dellosa witnessed on Monday the turnover by the Philippine Amusement and Gaming Corp. of P4.5 million in financial aid to three Army hospitals.

Army spokesman Maj. Harold Cabunoc said the assistance would be used to acquire equipment for the Army General Hospital in Fort Bonifacio, Kuta Major Cesar Sang-an Station Hospital in Zamboanga del Sur and Camp Siongco Station Hospital in Maguindanao.

"The new hospital equipment that will be purchased will greatly improve the delivery of health services for the Army personnel," said Col. Mariano Mejia, commanding officer of the Army General Hospital.

Aquino and Army chief Maj. Gen. Emmanuel Bautista were also present during the turnover of the financial assistance.– With Aurea Calica

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