China seek joint Exploration in the Island and Waters of the Philippines' Spratlys

The Philippines government already pronounce that no more joint exploration to happen in the West Philippines Sea but it is just for the areas which is within 200 Nautical Miles Exclusive Economic Zone but the proposal for joint exploration is acceptable only by the Philippines government if it is beyond the 200 nautical miles.

Joint exploration is lately suggested by the Philippines that disputed areas must be separated from the undisputed areas’ 200 Nautical Miles Exclusive economic Zone.

Wednesday, China seeks a joint exploration of the resource-rich and contested Spratlys, but an agreement on this is unlikely in the forthcoming state visit of President Benigno Aquino III to the mainland, Chinese Ambassador to the Philippines Liu Jianchao(August 24, 2011).

The conflict between China and the Philippines over the Spratlys will not be solved in one state visit; he said at a press conference prior to the August 30 to September 3 state visit.

“I’m sure the (Spratlys) issue will be discussed. The issue has been there for decades, but we can’t expect it to be settled by just this trip. The visit will enhance understanding of the two governments,” the ambassador said.

The idea of a joint exploration on the disputed islands through a public-private partnership “would be a very, very nice idea if we can do that. Both sides should be patient so that the issue will not affect relations and be settled in a way that can bring prosperity, peace, and stability in the region.”

Liu said the proposal for a joint exploration had been put forward by the Chinese government as early as 1985 when then Chinese Premier Deng Xiao Ping raised the idea to the Philippine foreign secretary.

“Since then, we've been working with the other claimant countries on the possibility of such a joint exploration, so we do hope that this will materialize as soon as possible,” he said, adding that any joint exploration would include even islands occupied by China.

“We believe this is best way for claimant countries to have the opportunity of cooperation,” he added.

In 2005, the Philippines, China, and Vietnam, through their respective national oil companies, agreed to a joint maritime seismic undertaking in the contested areas involving the three countries. Finalized during the time of then President Gloria Macapagal-Arroyo, the agreement to jointly gather, process, and interpret pre-exploratory seismic data on possible oil and gas reserves ended in 2008; it was not extended to the next stage of assessing the potential of the area.

“I can’t give you a definite date when such an agreement will be reached, but we hope that we can reach a stage that we can agree upon a joint exploration,” the ambassador said.

Aside from the Philippines, China, and Vietnam, Taiwan, Brunei and Malaysia also have either partial or complete claims to the islands and rocks in the South China Sea, which the Philippines has renamed West Philippine Sea.

Dispute settlement

President Benigno Aquino III has said that he would raise the border dispute before the International Tribunal on the Law of the Seas. Asked how this would affect the discussions on the contested area, Liu said: “I’m not sure how the two presidents will be discussing this issue, but I’m sure they will discuss the issue in good faith and will not affect the general relations” between the two countries.

The ambassador said Aquino’s first state visit to China would be of great significance in “expanding cooperation between the two countries and strengthening people-to-people understanding.” The dispute, he said, should get in the way of an improved bilateral relationship between China and the Philippines.

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WIKILeaks leaked - US says Island Mindanao has $1-Trillion Dollar untapped mineral resources

[Mindanao is known as “The of Promise”. The promise of all the promises. Treasures, Land of God, the Lost Paradise, The lost garden of Eden and the land of the last judgment in earth. Bible scholars even pointed the Mindanao as the land of promise of all promises. One verse of the Bible quoted “The God’s kingdom will rise again in the east of the east seas where the Sun will rises first, in the white sand shores where the only land which people are willing to live and die for praising my name ”.]

Leaked diplomatic documents in Wikileaks showed the United States has a special interest in the natural resources in Mindanao and the ending of the armed conflict in the region, giving credence to a suspicion that the United States is prodding the Aquino administration’s peace efforts with the Moro Islamic Liberation Front (MILF), including brokering the recent secret meeting between MILF spokesman Al Haj Murad and President Aquino.

Wikileaks obtained documents dated February 2006 or prior to the botched signing of the Memorandum of Agreement on Ancestral Domain (MoA-AD) on Aug. 5, 2008 showing extensive reference to the untapped rich mineral resources of Mindanao and tensions in the region which hinder the exploitation of these resources.

The leaked cable from the US embassy in Manila made particular reference to the so-called Liguasan Marsh in the Cotabato Basin spanning 288,000 hectares and is among areas controlled by the MILF.

The Department of Environment and Natural Resources (DENR) has already identified natural gas and oil deposits in three areas of Mindanao and the Sulu Archipelago: the Cotabato Basin, the Davao-Agusan Basin; and an area straddling Tawi-Tawi and Sulu. The Cotabato Basin, notably, includes the 288,000 hectare Liguasan Marsh, straddling the provinces of Maguindanao, North Cotabato, and Sultan Kudurat, according to the cable.

It stated that this “swamp/marsh — which is an officially declared bird sanctuary and game refuge — remains an important MILF stronghold, home to an estimated 280,000 Muslims, and an area where members of the terrorist Jemaah Islamiya (JI) have historically conducted training and sought refuge.”

It detailed the several roadblocks the government faces in exploiting Liguasan Marsh particularly what it called as “competing land ownership claims.”

The cable recounted the clan of former Autonomous Region in Muslim Mindanao (ARMM) Gov. Zacaria Candao staking a claim to 40 percent of the Liguasan Marsh, while other clans, including the Mangudadatus and Pendatuns, have claimed at least 50 per cent ownership.

It also stated that MILF vice-chairman for political affairs Ghazali Jafaar as referring to the Liguasan Marsh as a “legacy from our forefathers” adding that the Bangsamoro people would not part with their lands in the marsh.

“The MILF has created the Bangsamoro Development Agency (BDA) to lead, manage, and determine developmental efforts, including in the Liguasan Marsh,” it added.

It said separately, the Maguindanao tribe, which is the predominant indigenous and largely Muslim ethnic group living in and around the Liguasan Marsh, considers the marsh as part of its own ancestral domain.

The cable added that the Maguindanao-based clan of the deceased Salipada Pendatun, the first Muslim to serve as a general in the Armed Forces of the Philippines (AFP), has also claimed ownership over the entire Liguasan Marsh by virtue of an original land title.

“Though Pendatun’s daughter and legal heir, Bai Monera Pendatun, has said the Pendatun clan is open to sharing the marsh with others, she has opposed any amendment to the law that would allow titling of lands within the marsh,” it added.

It stated that the head of the Alamada clan, Rebecca Dilagalan Alamada Buan, has separately claimed 14,000 hectares in North Cotabato Province, near the borders of Maguindanao and Lanao del Sur. “Meanwhile, the Ampatuan clan, led by Maguindanao Gov. Andal Ampatuan and ARMM Gov. Zaldy Ampatuan, politically dominate the region, also including most of the mayors of the 11 municipalities of Maguindanao, eight municipalities of North Cotabato, and one municipality of Sultan Kudurat that encompass the Liguasan Marsh,” it added.

The intercepted cable was transmitted long before the Maguindanao massacre in 2009 where 51 people were slain over an election-related dispute and in which the Ampatuan clan is suspected of having carried out.

The cable said the Philippines National Oil Company (PNOC) began exploring for oil and natural gas in the Liguasan Marsh area in 1994 under Geophysical Survey and Exploration Contract (GSEC) 73, which covered all of Maguindanao, North Cotabato, South Cotabato, Sultan Kudurat, Sarangani, Davao, and Bukidnon provinces of Mindanao.

It added that Malaysia’s national oil company, Petronas, partnered with the PNOC for the exploration of the marshland.

“By the late 1990’s, they had located natural gas and/or oil in five sites, including Datu Piang (Dulawan) and Sultan Sa Barongis in Maguindanao and Lambayong in Sultan Kudurat.

According to the PNOC, the estimated natural gas deposits in Sultan Sa Barongis alone would be enough to fuel a 60-megawatt (MW) combined cycle power plant for 20 years.

“The PNOC had hoped to use this gas to support the power requirements of Mindanao as well as for industrial applications. However, the PNOC and Petronas suspended operations in the Liguasan Marsh area due to threats from the MILF and extortion by local mayors and political warlords,” it added.

It cited incomplete data and unconfirmed reports that the Philippines may have untapped mineral wealth worth between $840 billion and $1 trillion.

It said the US Geological Survey hopes soon to conduct a more comprehensive survey of minerals, with funding from the Philippine government.

A special advisor on the GRP-MILF Peace Process in the Office of the President recently described Mindanao in particular as “a treasure trove” of mineral resources, including gold, copper, nickel, manganese, chromites, silver, lead, zinc, and iron ore, it added.

It cited data from the Mines and Geosciences Bureau that up to 70 per cent of the Philippines’ mineral resources may be in Mindanao.

“Interest has grown significantly since a December 2004 decision by the Supreme Court upheld the constitutionality of the Mining Act. Companies that are up to 100 per cent foreign owned may now pursue investments in large-scale exploration and development of minerals, oil, and gas. As of early 2006, there were 23 mining projects nationwide,” it added.

Multinational firms are already eyeing areas in Mindanao for possible projects, it said.

The cable stressed that despite official optimism over a final GRP-MILF peace agreement by the end of 2006, disputes over land and natural resources, clan conflicts (locally called “rido”), and tensions between Muslims and Christians will remain important undercurrents and challenges to peace and development in Mindanao.

“Diffusing such tensions will be a major challenge for the GRP-MILF peace process during the years ahead, requiring careful governance and significant amounts of foreign assistance,” it said.

Malacañang had repeatedly denied the participation of the United States government in the meeting between Aquino and Murad in Tokyo but it had refused to reveal details about the two-hour meeting.

Murad, meanwhile, expressed hopes that the government peace panel could submit its counter-proposal in the ongoing peace negotiations during the resumption of formal talks in Malaysia on Monday.

“We hope that the Philippine Peace Panel shall finally submit its draft of the political compact and so that we can start the discussion on substantial agenda,” said Murad.

Murad was upbeat over the resumption of the peace talks with the government of the Philippines (GPH) following the Aug. 4 “secret” meeting between him and President Aquino in Tokyo, Japan.

Formal talks between the MILF and GPH peace panels will resume in Kuala Lumpur on Aug. 22 to 24.

“That meeting in Japan was a significant breakthrough, a landmark progress and development for the peace process between the Government of the Philippines (GPH) and the MILF,” Murad stressed.

The MILF chairman pointed out the government and MILF agreed to fast track the ongoing peace process and negotiation.

Murad said that it is important to note that MILF saw in President Aquino the commitment and determination to resolve the conflict within his administration.

“For us in the MILF leadership, we want to solve the problem during our time,” said Murad.

During the “secret” meeting, Murad personally brought up the MILF’s proposed Bangsamoro sub-state which would share power with the national government.

The MILF admitted that the proposed sub-state is just a “reframed” version of the Memorandum of Agreement on Ancestral Domain (MoA-AD) which was declared unconstitutional by the Supreme Court in 2008.

The peace process between the government and MILF started in 1997 with the ultimate objective of solving the conflict in Mindanao and the Bangsamoro legitimate aspiration for identity, homeland, self-governance and right to self-determination.

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Asian Currencies Gain, led by ₱ Peso, on Speculation of More U.S. Stimulus

*(August 23, 2011)

Asian currencies advanced, led by the Philippine peso ₱, on speculation the Federal Reserve will unveil measures this week to revive growth in the world's biggest economy, improving the outlook for the region's exports.

The Fed will hold its annual symposium at Jackson Hole, Wyoming on Aug. 26. The Federal Open Market Committee is "prepared to employ" additional tools to bolster the economy, it said earlier this month, an indication that it may be considering another round of bond-buying that expands the supply of dollars, known as quantitative easing.

"The market is looking to the Fed for some kind of temporary fix and confidence booster," said Calbert Loh, head of treasury at Bangkok Bank Bhd. in Kuala Lumpur "The slowdown in developed markets is beginning to affect Asia."

The ₱ peso rose 0.4 percent to 42.485 per dollar as of 4:43 p.m. in Manila, according to data compiled by Bloomberg. South Korea's won gained 0.3 percent to 1083.88, Malaysia's ringgit climbed 0.3 percent to 2.9725 and the Singapore and Taiwan dollars strengthened 0.2 percent to S$1.2086 and NT$29.020, respectively.

The Taiwan dollar rebounded from a four-month low on speculation exporters are taking advantage of recent declines to repatriate earnings. Export orders increased 11.1 percent from a year earlier in July, after a 9.2 percent gain the previous month, government data showed on Aug. 19.

Taiwan Weathers Slowdown

"The NT$29 level is very attractive for exporters, we see many of them selling the greenback," said Tarsicio Tong, a Taipei-based foreign-exchange trader at the Union Bank of Taiwan. "The export orders figures show Taiwan hasn't been affected much by the global slowdown."

Indonesia's rupiah snapped a two-day decline on optimism global investors will boost holdings of local assets to benefit from growth in Southeast Asia's largest economy. The currency strengthened 0.2 percent to 8,546 per dollar.

Gross domestic product will rise 6.5 percent this year, the most since 1998, President Susilo Bambang Yudhoyono said last week. The currency has advanced 5 percent in 2011 as offshore funds bought $1.9 billion more Indonesian stocks than they sold through Aug. 19, exchange data show.

"Positive sentiment toward the Indonesian economy is supporting the currency," said Lindawati Susanto, head of treasury at PT Bank Resona Perdania in Jakarta.

Thailand's GDP Weakened

Thailand's baht weakened 0.1 percent to 29.84 per dollar after a government report showed gross domestic product rose 2.6 percent in the three months through June from a year earlier, following a 3 percent gain in the first quarter. The median estimate of economists surveyed by Bloomberg News was for a 3.6 percent advance.

"It's understandable to see a slower growth in the second quarter for countries relying on exports like Thailand," said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. "Investors remain risk averse and that's supporting bonds."

Elsewhere, China's yuan declined 0.13 percent to 6.4013 per dollar and India's rupee dropped 0.2 percent to 45.8575.

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