China fears of their illogical territorial claims in Spratlys reject UN - ITLOS proposal

The dragon’s claim is base on lie not law

China’s rejection of Manila’s suggestion that both countries elevate their dispute in the West Philippine Sea (South China Sea) to the United Nations’ International Tribunal for the Law of the Sea (ITLOS) is an indication that Beijing may not be able to validate its territorial claims, Foreign Secretary Albert del Rosario said.

“China’s hesitation to accept the Philippine suggestion to elevate their dispute to ITLOS could lead to conclusion that China may not be able to validate their stated positions in accordance with the UN Convention on the Law of the Sea (UNCLOS),” Del Rosario said in a statement yesterday (July 13, 2011).

He said the Philippines articulated to China on Monday that it is prepared to defend its position on the West Philippine Sea even as Manila “suggested” that both countries go to the ITLOS to resolve the dispute, but China rejected it the next day.

“China always maintains that the South China Sea dispute should be resolved . . . through direct negotiations between directly concerned countries,” Chinese Foreign Ministry spokesperson Hong Lei said, adding that the matter should also be dealt with according to “recognized international laws.”

Del Rosario said the exchange of views with Chinese Foreign Minister Yang Jiechi on a very wide bilateral agenda, including the discussion on the West Philippine Sea during his visit to Beijing last week upon the invitation of his counterpart, was very straightforward.

Although he described his visit as successful, Del Rosario said there was no change in the Philippines’ position and its position of multilateral resolution of the dispute. China maintained that the territorial claim should be dealt with a bilateral approach with claimant countries.

“In the exchange of views that we had we said the Philippines is prepared to defend its position in accordance with international law consistent with UNCLOS and we asked them if they would be willing to do the same,” Del Rosario said in a press conference on Monday. “And we also suggested that the proper forum would be the ITLOS.”

The ITLOS is an independent judicial body established by UNCLOS to adjudicate disputes arising out of the interpretation and application of the Convention.

When asked about China’s response to the Philippines’ suggestion for the two nations to raise the sea dispute to the ITLOS for resolution, Del Rosario said, “I’m not sure if there was a response.”

He, however, said the exchange of views was useful in terms of being able to clearly state the position of the two countries.

Del Rosario and his Chinese counterpart also had an extensive discussion on historic rights used by China as the basis for the validity of their 9-dash claim, which the Philippines rejected since it is not applicable to the situation.

“We brought to their attention the fact that under the UNCLOS this is not validated. They had actually pointed to a section of UNCLOS concerning historical basis and we said if they would like to revisit that provision it seems to us it is not applicable to the situation, to the circumstance and the position they have taken,” he added.

The Philippines lodged last April a diplomatic protest against China’s 9-dash line territorial claim over the whole of South China Sea.

The protest came in the form of a note verbale submitted through its Permanent Mission to the UN. The Philippines made three assertions related to the Kalayaan Island Group (KIG) situated within the Spratlys.

The map is called “9-dash line” or “9-dotted line” because it shows a series of nine dashes or dotted lines forming a ring around the South China Sea area, which China claims is part of its territory. The area includes the Spratlys group, a cluster of oil-rich islands disputed by five other countries, including the Philippines.

China has been using the map with nine dashes in asserting its territorial claim over the whole of the South Sea. But the map first made its way to the UN body, when China used it to challenge the claim made by Vietnam and Malaysia over their extended continental shelves in the South China Sea.

China had taken the position that no Chinese ship intrusions took place in the West Philippine Sea because Beijing claims territorial sovereignty belongs to them.

“Of course we disputed this position. Our stand and position is fully supported by international law in particular the UNCLOS and we asked them to define and to be able to explain their own position,” Del Rosario said.

The Philippines protested the actions of China in the West Philippine Sea and sightings of China Marine Surveillance (CMS) vessel and other People’s Liberation Army Navy (PLAN) ships unloading building materials and erecting an undetermined number of posts.                     

Although China made no assurance that it would not engage in activities that would contribute to tension in the West Philippine Sea, Del Rosario said he expected things to become “normal.”

The secretary and his counterpart expressed that both countries want a peaceful resolution of the issue but he stressed that it should be resolved on the basis of the application of international law, a multilateral approach, and the Declaration on the Conduct of Parties (DOC) in the South China Sea.

Institute of maritime affairs pushed

Meanwhile, Sen. Edgardo Angara said an institute on maritime affairs that will train a pool of diplomatic, economic, maritime and legal experts on territorial disputes will provide the solution to the Spratlys dispute.

He said the creation of the institute he is proposing will enable the country to have experts who can competently uphold the country’s interests in international dialogues, including territorial disputes such as the Spratlys.

Angara, vice chairman of the Senate committee on foreign relations, said he is now discussing with the Law Center of the University of the Philippines, of which he was a former president, to iron out the details of the formation of an Institute of Maritime Affairs that will advance the country’s ocean-related interests.

He said this institute will be instrumental in beefing up the country’s capacity to protect its maritime and territorial interests, especially as the conflict over the Spratly Islands continues to simmer.

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New sunrise in the Philippines economy - President Aquino

President Benigno Simeon Aquino III said here Tuesday as he marks his first year in office, Filipinos could now expect the Philippine economy to face a new sunrise.

The President is here to lead the giving of social services to the people such as Philhealth cards, Certificate of Land Ownership, Pantawid Pamilya, as well as announce the launching of agricultural programs. He was welcomed by some 4,000 supporters at Kalibo’s jampacked ABL Sports Complex.

An indication of said sunrise that the government may expect to experience, he said “since we started in Malacanang a year ago we have already created 1.4 million new jobs, provided for over a million beneficiaries of the Pantawid Pamilya Program, more Philhealth cards and more agricultural programs," the President said, adding that he has more surprises for the people when he delivers his state of the nation address (SONA) later this month.

Mr. Aquino also said that he expects a brighter future for the people of Aklan because of the huge potentials on the growth of tourism industry in the province.

"We have recently inaugurated the Caticlan Airport and from then on we expect to receive three million tourists in the near future. I hope you Aklanons know how to take care of our tourists as this will certainly translate to more jobs and livelihood," the President said.

The President was also in the province to lead in the distribution of social services to Aklan beneficiaries. Speaking before a likewise jampacked crowd at the Augusto B. Legaspi Memorial Sports Complex in the provincial capital, the President said he wants Filipinos to be given equal opportunities to improve their lives having in mind that no one should be left behind.

“Ang buod lang ng ginagawa natin ay simpleng-simple. Gusto nating mabigyan ang bawat isang Pilipino ng pagkakataon para iangat ang kondisyon n’ya sa buhay. Yun po ang palagay ko ang pangunahing misyon natin dito (What we want is very simple – we just want to see every Filipino enabled to improve his condition in life. That is the primary mission of my administration),” he said. “Hindi na ho pupuwede yung dating ugali na lumaki ang ekonomiya, maraming napuwera, okay lang (we can no longer have an economy that has grown, but with many not benefitting, as what had happened in the past.

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Excessive Sugar production in the Philippines needs to export thousand tons

Philippines may export 200,000T sugar on top of US quota

·        35,892 tons raw sugar for prompt shipment to Japan & Indonesia

·        US quota allocation for the Philippines raised by 18,892 tons

·        Says 2010-11 raw sugar output seen highest in 3 years

The Philippines says it can export up to 200,000 tons of raw sugar this year on top of its US quota commitments, but it may not have a lasting impact on global prices as the shipments will only partly offset expected crop losses in Brazil.

The Southeast Asian country would start selling raw sugar this month to Japan and Indonesia, with committed shipments of 35,892 tonnes, Rosemarie Gumera, manager at the policy and planning unit of the state agency Sugar Regulatory Administration (SRA), told Reuters.

The exports will be the Philippines’ first to markets other than the United States since the 2007-2008 crop year, made possible by an expected three-year high in domestic output.

The initial reaction was to dampen strong Asian prices, with premiums for J-spec, or low-quality Thai raws for the Japanese market, dropping to 180 points above New York futures from 500 points last week after the Philippines began selling its sweetener, dealers said.

But the Philippines’ exports alone may not have much of a global impact, as the market is worried about the magnitude of output decline in Brazil, the world’s No.1 sugar producer.

“(The volume) certainly is not to be sneezed at — a couple of hundred thousand tonnes — but it’s not, in my view, going to be something that will fundamentally change the course of the market,” said Luke Mathews, a commodity strategist with Commonwealth Bank of Australia in Sydney.

“It’s likely to be dwarfed by the production and export losses that are being experienced in Brazil.”

In the physical market, premiums for the widely-traded high polarisation, or hipol Thai raw sugar, were steady at 250 points above New York futures, also suggesting that some sellers were not too concerned about sales from the Phillipines.

The international sugar market is awaiting a forecast on centre-south output from Brazilian cane industry group Unica, due for release on Wednesday and looks certain to be cut from the previous estimate in March.

For the Philippines, sugar exports will also prevent domestic prices from further declining, easing the pain of local producers still reeling from the dramatic drop in prices from record highs hit in late 2010.

“A total of 35,892 tonnes are ready for shipment and the destinations are Japan and Indonesia. That’s already a commitment,” Gumera said. “But most probably we can sell as much as 200,000 tonnes this year.”

Indonesia is Southeast Asia’s largest sugar consumer.

On Tuesday, the Philippine government announced the country’s quota allocation to the US in the current crop year ending August was raised by 18,824 tonnes to 212,509 tonnes, the second increase in the quota this year.

“Certainly the announcement by the Philippines of more than 35,000 tonnes of exports does signal that the market is at levels which are attractive for sellers,” Mathews said.

Bumper harvest: The Philippines’ sugar output in 2010-11 (Sept-Aug) has outpaced annual demand of 2.2 million tonnes, with production at 2.36 million tonnes as of June 26, SRA data showed.

“We estimate total output this crop year to reach 2.4 million tonnes,” said Archimedes Amarra, executive director of the Philippine Sugar Millers Association and SRA board director.

That would be the highest since crop year 2007-08 when the Philippines’ output reached 2.455 million tonnes.

Amarra said producers wanted deals with other potential buyers such as China — the world’s third-largest sugar consumer — Malaysia, and South Korea, and big buyers outside Asia.

SRA officials said there was a chance the Philippines may sell sugar to countries in the Middle East. The Philippines had in the past exported sugar to the United Arab Emirates.

Amarra said it was “a little difficult to find a market” for Philippine sugar these days given the huge supplies available from major exporters.

“We are competing with Thailand which has a bumper harvest and is aggressive in marketing,” Amarra said.

Thailand, the world’s second-biggest exporter after Brazil, has a record 9.62 million tonnes of sugar in the current 2010-11 crop, of which around 7.0 million tonnes were expected to be available for export in 2011, also a record high.

Brazil is expected to add new sugar milling capacity slowly, in part due to high costs, signalling tightness in the sugar market in the medium term, a senior Rabobank analyst said.

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