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PNoy to take up Spratlys, investments with Chinese


(Updated 10:26 p.m.) President Benigno Aquino III left Tuesday evening for a state visit to China, where he will devote some time on the disputed Spratlys, but will focus more on expanding trade and investments, including setting in motion the conduct of studies to build a roll-on, roll-off (RORO) maritime transport system linking China with the Philippines and the rest of Southeast Asia. Leading business tycoons and captains of industry, 270 of them, accompany Aquino on a five-day, three-city swing through the powerhouse regions of the Philippines’ third largest trading partner. "Bilang pangatlong pinakamalaking katuwang sa pakikipagkalakal ng Pilipinas, hindi po natin palalampasin ang pagkakataon na makipagpulong sa mga negosyante sa Tsina upang hikayatin pa silang mamuhunan sa ating bansa," Aquino said. In his departure speech, Aquino said he will show the Chinese people that the Philippines is now ready and open for fair trade. “Bibigyang diin (ko) na bukas at maaliwalas na muli ang ating bayan sa patas na pagnenegosyo," Aquino said.
South China Sea exploration The President said he will meet with Chinese President Hu Jintao to discuss steps to resolve the Spratlys territorial dispute. “Pagpupulungan din po namin ni Pangulong Hu Jintao ang pagresolba sa mga kontrobersiya ukol sa West Philippine Sea," he said. On August 24, Foreign Affairs Assistant Secretary for Asia and Pacific Affairs Cristina Ortega said it is unlikely that a new agreement on the Spratlys will happen, but at the very least, President Aquino will say a few words on the matter. “You know, saying in a general way that we agree to disagree but we will keep our lines of communication. We will keep on talking and hopefully this state visit will improve or raise our bilateral relations with China on a higher level," she said. Ortega explained that an agreement on territorial disputes is difficult to reach at this time. “Hindi ‘yun mangyayari, maraming claimants, as you already know, and we are pushing for the multilateral approach. Since there are many claimants in the South China Sea and because this is a problem of the region then the answer would be multilateral or a regional," she said. Then last Saturday, Presidential Spokesman Edwin Lacierda said the discussion on the joint exploration of the South China Sea will most probably take place at the ministry level. Lacierda said both sides know each other’s positions and “are willing to go into continuous dialogue." “We’ll just be respectful towards each other. We have differences but we can go (beyond) those differences," he said. Lacierda’s statements came a day after Trade Undersecretary Cristino Panlilio was quoted as saying the Philippine government has agreed to allow Chinese government-owned firm Sino Petroleum Corp. to conduct oil exploration in the disputed areas in Spratlys in the West Philippine Sea (South China Sea). Panlilio said this is part of the investment package the Philippine contingent will reach with China. He added that both parties do not expect any problems with the Spratlys operations because Sino Petroleum has already agreed to conduct the oil exploration “under Philippine laws." Panlilio said a top official of Sino Petroleum would meet Aquino during the state visit, and Energy Secretary Jose Rene Almendras will sign the agreement on behalf of the Philippine government. "The Chinese government is willing to negotiate with the Philippines and other claimant countries for joint exploration activities in the Spratlys," Chinese Ambassador to Manila Liu Jianchao said in an August 24 press briefing at his residence in Makati City. ASEAN-China RORO President Aquino and President Hu Jintao will witness the signing of agreements to develop and strengthen trade, infrastructure, media exchange, cultural and economic ties between the China and the Philippines. Among the agreements to be forged during the state visit is one on moving forward an Association of Southeast Asian Nations (ASEAN) deal on maritime transport with China. “We will just sign. We will be taking it to the next step where we will be signing an agreement, an understanding to physically explore the setting up of this South China Sea RORO," said Transportation and Communications Manuel Roxas II said at the airport before boarding a commercial flight with Aquino to Beijing. He said the signing does not mean the two countries will commit investment for the project but they will direct the appropriate agencies on both sides to take steps in setting up the rules especially on Immigration, Customs and other needs ancillary to the transfer of goods. The agreement will most likely be enforced next year. “By next year. Nasa September na tayo so sa palagay ko this is the preliminary step na tatahakin nito by next year," Roxas said. He said enforcing the agreement is important to the Philippines, which does not share a land border with China unlike Vietnam and Cambodia which will also be part of the regional project. ASEAN and China forged their maritime transport agreement in Singapore on November 2, 2007 to provide “facilitation and cooperation in improving the conditions under which maritime cargo and passenger transport operations are carried out between the ports of the Contracting Parties."http://www.aseansec.org/21156.htm Then on November 12 last year, they entered into a memorandum of understanding in Brunei to lay out the details of a Maritime Consultation Mechanism (MCM). The ASEAN-China MCM covers issues such as port state control, aids to navigation, marine environmental pollution, seafarer certification and training, and maritime safety. Under the RORO project, it will be easier for Philippine products to be exported to China and for Chinese goods to enter the Philippines. Roxas said it will be a good way for the Philippine manufacturing industry to subcontract products from China. “Maaaring kabahagi ng kanilang subcontracting o kabahagi ng kanilang finishing ay dito na gagawsin sa atin dahil magiging mas madali ang labas pasok nitong mga produktong ito," said Roxas. Northrail project The Transportation chief said another project to be discussed during President Aquino’s visit to China is the Northrail project. “Mabibigyan tayo ng pagkakataon na mapag-usapan kung paano natin mapahusay o mapalagay sa tama itong masalimuot na Northrail project. Isa ‘yan sa pinakamahalagang ite-take up natin sa hanay ng DOTC," he said. “Importante lang na masunod ang ating mga reglamento para mailagay sa (tama) ang proyektong ito na nakita natin nung nakaraan na medyo problematic ang pagkalikha," Roxas added. Among the business executives in Aquino's entourage are:
  • JG Summit Holdings Inc. founder and chairman emeritus John Gokongwei Jr.
  • SGV & Co. founding chairman Washington Z. SyCip
  • Philippine Chamber of Commerce and Industry Inc. Council of Business Leaders chairman Jose T. Pardo
  • Jollibee Foods Corp. chairman Tony Tan Caktiong
  • Nabasan Subic Development Corp. chairman Antonio O. Cojuangco
  • Metrobank Group founder and chairman George S.K. Ty
  • SM Investments Corp. co-chairperson Teresita Sy-Coson
  • Liwayway Holdings Company Limited chairman Carlos Chan
  • San Miguel Corp. president and CEO Ramon S. Ang,
  • Philippine Long Distance Telephone Co. chairman Manuel V. Pangilinan
  • Lucio C. Tan Group of Companies founder and chairman Lucio C. Tan
  • Alliance Global Group Inc. (Megaworld Corp.) chairman Andrew L. Tan
  • Aboitiz Equity Ventures Inc. president and CEO Erramon I. Aboitiz
  • Zest-O Corporation chairman Alfredo M. Yao
  • Federation of Chinese Chambers of Commerce and Industry Inc. president Tan Ching and
  • PCCU-PCBC president Francis L. Chua.— ELR/VS/HS, GMA News