MANILA, 1 Sept. 2003 — Chinese and Philippine officials yesterday talked of jointly exploring and developing the disputed Spratly Islands in the South China Sea, saying that any unilateral action would have to be avoided to reduce tensions in the region.
“We jointly welcome efforts to undertake joint exploration and joint development in the Spratlys in the South China Sea,” House Speaker Jose de Venecia told reporters following a meeting with Wu Bangguo, chairman of China’s legislature, the National People’s Congress.
The two countries have been engaged in a bitter dispute over part of the Spratlys, a chain of islets and reefs that are also wholly or partly claimed by Vietnam, Taiwan, Malaysia and Brunei.
Chinese and Filipino sailors also have had close brushes over Scarborough, a reef located about 250 kilometers west of Subic in the northern Philippines in the past few years. Wu told a media conference after talks with President Gloria Arroyo and other local officials that the “bilateral and political trust” between the two countries had been strengthened recently.
Wu said de Venecia pledged Manila’s continued adherence to the one-China policy during his meeting with him yesterday.
“We expressed our gratitude for this support on the Philippine side because this adherence to the one-China policy serves as a big political basis for China-Philippine relations,” he said.
Last year, the Philippines shelved a plan to buy surplus F-5E fighter jets from Taiwan after Beijing warned it would violate Manila’s policy of recognizing only China as the legitimate government and Taiwan as a renegade province.
The Philippines maintains strong business relations with Taiwan.
On Saturday night, Wu witnessed the signing of a $1 billion currency swap arrangement between central bank officials of the two countries.
The agreement would enable the Philippine central bank to swap Philippine pesos for yuan for an amount up to $1 billion in the event of an immediate Philippine need for balance of payments and short term liquidity support, Malaca?ang Palace said in a statement.
The deal is part of the Chiang Mai Initiative designed to fend off a repeat of the 1997 Asian financial crisis.
The Chiang Mai Initiative, agreed in May 2000 by the 10-member Association of South East Asian Nations (ASEAN) plus Japan, China and South Korea, was aimed at giving the region’s central banks additional ammunition to ward off speculative attacks on their respective currencies.
The Philippines had also signed a similar currency swap arrangement worth $3 billion dollars with Japan.
Wu also pledged $400 million as part of China’s “very long term concessional finance” to modernize about 200 kilometers (124 miles) of railways tracks running from Manila to several northern points.
He also agreed to make available $100 million in concessional agricultural credits, including provision of hybrid rice seeds from China.
Wu is to address today the opening session of the conference of the Association of Asian Parliaments for Peace (AAPP) as its outgoing president. He is to formally hand over leadership of the association to de Venecia. (Additional input from agencies)
