China hopes to avoid Spratlys conflict

China hopes to avoid Spratlys conflict

BEIJING (AFP): China has no wish to spark an incident in the
disputed Spratly islands but will honor its contract with a US
company to explore for oil there despite Vietnamese protests, the
foreign ministry said yesterday.

"The Chinese government has all along stood for a peaceful
settlement of the Nansha (Chinese name for Spratlys) issue and we
do not wish to see the occurrence of any incident that might
complicate the matter," a ministry spokesman said.

The Spratlys are claimed wholly or in part by China, Vietnam,
Brunei, Malaysia, the Philippines and Taiwan. The crux of the
dispute centers on what are believed to be large oil and natural
gas deposits in the area.

Hanoi has reacted strongly to what it described as the
"illegal" contract signed by China and Colorado-based Crestone
Energy, warning that the deal marked a "serious escalation of the
situation in the South China Sea."

Crestone had announced that it would sink exploratory wells
under the protection of the Chinese navy, which has recently
stepped up operations around the Spratlys.

The spokesman, reaffirming China's claim to the island chain,
said the contract was perfectly legal.

"China has undisputed sovereignty over the Nansha islands and
adjacent waters," he said.

"The signing of the contract with the American company
entirely falls within China's sovereignty," he added.

The war of words between Beijing and Hanoi continued Monday
when the Vietnamese communist party daily, Nhan Dan, evoked the
spirit of Dien Bien Phu -- the site of Vietnam's decisive victory
over France in 1954 -- in a front page article on the Spratlys.

"During these days of April, the people and troops of the
district of Truong Sa (Vietnamese name for Spratlys) are lighting
the historic flame of Dien Bien Phu in this sacred part of the
country," the newspaper said.