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Sunday, July 24, 2011

USA says - West Philippines Sea- Spratlys is global problem

How to Discuss with China bilaterally when you sit down with them and they will say they owned everything??

The United States on Sunday (July 24, 2011) condemned acts of “intimidation” in the West Philippine Sea / South China Sea and called for greater international attention to resolve maritime disputes that threaten trade.

US Secretary of State Hillary Clinton said a deal between China and Southeast Asian nations on guidelines for future negotiations over the West Philippine Sea, also known as South China Sea, were just a “first step” toward a binding code of conduct.

“We think it was an important first step but only a first step in adopting the declaration of conduct,” Clinton told reporters in Indonesia after attending Asia’s main security forum.

More detailed negotiations are needed to unpick a tangle of maritime stakes in West Philippine Sea, which China claims in its entirety despite rival assertions by Brunei, Malaysia, the Philippines, Taiwan and Vietnam, Clinton said.

China claims all of the South China Sea, even up to the coast of Southeast Asian countries, as part of its historical territory, on the other hand, The Sultanate of Sulu slams the claim of China as the Spratlys Islands and waters is part of their Ancestral domain with bases dates back from the Mahjapahit and Shrivijaya empires, which extended from Sabah (North Borneo), the Sulu archipelago, Palawan, parts of Mindanao, the islands now known as the Spratlys, Palawan, and up to the Visayas and Manila

“There needs to be a lot of dialogue between (Southeast Asian nations) and China… and the rest of the world needs to weigh in because all of us have a stake in ensuring that these disputes don’t get out of control,” she said.

Clinton noted the West Philippine Sea carried about half of global trade and said the international community should be more involved in settling disputes, an idea China has repeatedly rejected while “guaranteeing” free navigation.

She said all territorial claims should be clearly defined and resolved according to the UN Convention on the Law of the Sea, a position shared by most of the claimants except China, which bases its stake on historical maps.

At a meeting with the 10 members of the Association of Southeast Asian Nations on Wednesday in Bali, China agreed to a set of guidelines setting a framework for an eventual code of conduct for the sea.

China and some ASEAN members hailed this as a breakthrough that would defuse the tensions, but the Philippines maintained the guidelines lacked teeth and did not specify what territory is in dispute as the Philippines want to segregate the disputed areas to non disputed areas because invaders are slowly crawling to inside the Philippines waters and creates disputes inspite of the existence of the 2002 DOC.

Clinton said there had been increasing incidents of intimidation, ramming, and the cutting of exploration cables lately – the “kind of things that will raise the cost of doing business for everyone.”

“We are strongly against use of threat or force by any nation to advance its claims,” she said.

“There needs to be very concerted effort to realize a code of conduct and there needs to be a call by the international community for all parties to clarify their claims.”

Her comments are likely to irritate China, which has repeatedly warned the United States not to interfere in its territorial integrity and rejects international pressure to resolve its maritime disputes.

Clinton met Chinese Foreign Minister Yang Jiechi in Bali last week and repeated Washington’s assertion that the United States has a “national interest” in free navigation in the sea.

Yang said later that he had reassured ministers from more than 20 Asia-Pacific countries gathered for the ASEAN Regional Forum that tensions between China and its rival claimants would not affect shipping trade.

“What I told the summit is that freedom of navigation in this region is guaranteed,” Yang told reporters Saturday.

“If there is no guarantee… how do we explain Asia contributed to half of the world’s economy recovery?”

In recent months, the Philippines and Vietnam have expressed anger over what they call China’s increasingly aggressive actions in the potentially resource-rich sea, such as harassing fishermen and oil exploration vessels.

How to Discuss with China bilaterally when you sit down with them and they will say they owned everything??

China keep on resisting against the Philippines call to raise the Spratlys issue to the United Nations (ITLOS) but the big question is none of the ASEAN countries could set beside the dragon as when you set down bilaterally, China will right away declare they owned everything.

There is no justice to happen than to call for the United Nations to mediate.

It is not only China claimed it based on history but also Vietnam and the Sultanate of Sulu (Philippines) back to Mahjapahit and Sri Vijaya empires.

Philippine Foreign Secretary Albert del Rosario said Yang’s comments on freedom of navigation offered little comfort because China maintained its position that no other country had any rights to the sea.

“How can you discuss anything bilaterally when you sit down with them and they say that they own everything?” he said in Bali Saturday (July 23, 2011).

The Philippines to Test WPS-SCS Agreement with Push for Oil & Gas Exploration

The Philippines will go ahead with oil exploration in the West Philippines Sea (WPS) or also known as South China Sea, challenging the July 2011's regional agreement with China aimed at lowering tensions over the disputed waters, Foreign Minister Albert F. del Rosario said.

Hydrocarbons resources "well within" Philippine sovereignty are essential to the country's energy strategy, Rosario said in an interview. U.S. Secretary of State Hillary Clinton warned that increased confrontations in the area are a threat to sea lanes that are "absolutely essential" to world trade.

"If there are assets there, and we believe that there are, we should develop them," del Rosario said on July 23 at the end of five days of Asian security meetings in Bali, Indonesia. "The need for us to develop them is greater than China's. China can afford to wait forever. They have the patience of Job. We don't have that luxury. We've got to move ahead."

The Philippines' drive to secure energy resources against the wishes of Asia's biggest economy and military spender risks clashes that may ensnare the U.S., a treaty ally. Del Rosario's comments, coming days after China and the 10-member Association of Southeast Asian Nations agreed on non-binding guidelines for operating in the sea, echo Clinton's call to draw up a more comprehensive and binding code of conduct.

"The declaration is a first step, nobody claims it is more than that," she said yesterday. "It needs to be quickly followed up on by the code of conduct," based on international law.

Chinese vessels in May sliced cables of a survey ship doing work for Vietnam, the second such incident in a month. In March, Chinese ships chased away a ship working for U.K.-based Forum Energy Plc off the Philippines.

West Philippines Sea - Troop Deployments

Most claimants have troops on the Spratlys, a group of islands and reefs with a total land area equivalent to 1 1/2 times the size of New York's Central Park spread over an area roughly the size of Iraq. The Philippines spent about 1 percent of China's budget for its military last year, according to the Brussels-based Stockholm International Peace Research Institute.

The agreement "will go a long way to maintaining peace and stability and good neighborliness," Chinese Foreign Minister Yang Jiechi told reporters on July 22. ASEAN members Philippines, Vietnam, Malaysia and Brunei have competing claims in the sea.

The Philippines "went along with the family" in signing the agreement though expressed misgivings because it is non- binding and fails to define a specific area, del Rosario said. That benefits China because it maintains the status quo, he said.

"If China is not challenged on this nine-dash map, which effectively gives them sovereignty over the South China Sea, at some point in time there may be potential threats to freedom of navigation for" other countries, he said. "I don't know how those guidelines will actually work. The risk of clashes remains."

China's Map

China's map includes oil and gas fields more than three times further from its coast than they are from Vietnam. That includes two of 15 exploration blocks the Philippines put out for tender last month.

More than 100 energy companies including Chevron Corporation and Total SA attended a June 11 road show in Singapore to meet Philippine energy officials and get more information on the blocks, according to the Department of Energy. Three weeks later, Energy Secretary Rene Almendras said the government may offer more exploration contracts in the West Philippines Sea – a Philippines’ territory which claimed by Chinese waters because it is "staking claims to these areas."

The Philippines, an economy smaller than 30 of China's 32 provinces, plans to boost hydrocarbon reserves by 40 percent in the next two decades to reduce its almost total reliance on imports, according to a department of energy plan. Vietnam's domestic gas demand is set to triple by 2025, according to World Bank estimates.

Oil and Gas Reserves in the West Philippines Sea

Chinese studies suggest the waters sit atop more than 14 times estimates of its oil reserves and 10 times those for gas. The West Philippines Sea now ranks as 4th Largest Oil and Gas Deposit in the World.

Moves by private oil and gas companies are necessary to spur action on the blocks "because no politician wants to make tough decisions," said Randall C. Thompson, whose former company Crestone Energy Corp. was awarded rights by state-owned Cnooc Ltd., China's largest offshore energy producer, to explore an area also claimed by Vietnam. Any discoveries will hasten joint development agreements, he said.

Crestone is now owned by Houston-based Harvest Natural Resources Inc., which holds Chinese rights to the same block Vietnam has awarded to Calgary-based Talisman Energy Inc.

"By taking no risk, you get no rewards," said Thompson, who now owns Denver, Colorado-based Global Resource Holdings. "Somebody needs to just go in and drill, and then they'll sit down and figure it out."

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