China thwarts draft Spratlys's code

China thwarts draft Spratlys's code

MANILA (AFP): China on Thursday spurned a call by Southeast Asian nations to support a draft "code of conduct" aimed at preventing clashes and easing tensions in the Spratly islands and other hotly disputed South China Sea territories.

An agreement on the guidelines governing military activities in the contested area would have crowned a major regional summit here at the weekend involving the Association of Southeast Asian Nations (ASEAN) and China, as well as Japan and South Korea.

Diplomats said the guidelines cannot be signed because further consultations were needed between Beijing and the 10-member ASEAN.

"We do not expect a conclusion of negotiations at this time," Philippine Foreign Minister Domingo Siazon told reporters.

"We will not have enough time to discuss all the issues," Siazon said, adding that a Chinese draft of the proposed code and an ASEAN version were both on the table.

Siazon said there had been "much progress" on the issue, but admitted there was concern that the lack of a deal could trigger more uncertainty in the South China Sea.

"Of course, accidents can happen, and this is what concerns us. Even with a code of conduct accidents can happen."

Even before the Manila talks, China had already signaled its reluctance to sign the code anytime soon. It has steadfastly refused to take up South China Sea disputes in any multilateral forum, insisting on bilateral discussions with rival claimants.

The Spratlys, a reputedly mineral-rich archipelago, are claimed in whole or in part by China, Taiwan and ASEAN members Brunei, Malaysia, the Philippines and Vietnam. The parcels are also the subject of rival claims in the South China Sea.

The draft calls for a "halt to any new occupation of reefs, shoals and islets in the disputed area to ensure peace and stability in the region," said a statement issued by the Philippine hosts.

The Philippines meanwhile pledged to make another effort to remove a stranded ship from a reef north of the Spratlys also claimed by China amid fears the wrangle could cloud the visit to the summit by Chinese Premier Zhu Rongji.

As the countdown to the weekend's showpiece meeting continued, finance ministers declared the region out of recession but pledged to press ahead with reforms to blunt "significant risks" that could cause problems down the road.

They said ASEAN economies should post between two and three percent growth on average this year, rebounding from the misery of a seven percent slump in 1998, and was poised for "higher and sustainable growth" from 2000.

But a statement from the ministers warned: "While our economies look much healthier compared to a year ago, the situation still remains vulnerable and there are risks that need to be addressed if our economies are to experience high sustainable quality growth."

ASEAN members Indonesia, Malaysia, the Philippines and Thailand were left reeling from a mid-1997 currency meltdown that pitched the region into its worst post-war economic crisis.

ASEAN trade ministers also met Thursday to prepare for their leaders' summit. They discussed regional trade issues as well as next week's meeting of the World Trade Organization (WTO) in Seattle.

A day after water cannons were used on protesters who dodged a massive security operation, more controversy erupted Thursday as community leaders claimed four people died when a shanty town less than a kilometer from the summit venue was demolished.

"Since demolition began on November 19, one sixty year-old woman and three children aged two weeks to three years old were confirmed to have died," said community leader Job Garde.

Manila police Chief Superintendent Edgardo Aglipay denied the claims.