No compensation for Chinese boat

No compensation for Chinese boat

MANILA (AFP): China's demand for compensation for a fishing boat which collided with a Philippine navy patrol vessel and sank in disputed waters has been rejected by President Joseph Estrada's Cabinet, his spokesman said on Friday.

The Cabinet discussed Beijing's demand that Manila pay US$30,000 in compensation for the May 23 incident off Scarborough Shoal in the South China Sea, presidential spokesman Fernando Barican said in a statement.

Beijing also called on Manila to punish the navy crew. But after reviewing the facts of the case, "the Philippine government believes that it would not be proper to discuss the issue of compensation", Barican said.

The Philippine navy gave an official report on the incident to the foreign department, which relayed it to the Cabinet, he said.