Anomalous RP-China Spratlys exploration deal bared

February 29, 2008

A Department of Foreign Affairs (DFA) official yesterday admitted that there was irregularity in the deal entered into by President Arroyo with the Chinese government for joint exploration for Philippine-claimed territories in the disputed Spratlys.

The official, who asked not to be named, confirmed the existence of the agreement, but said it has yet to be implemented.

Reports said the Spratlys deal would allow China to exploit the country’s exclusive economic zones as contained in an agreement signed by the Department of Trade and Industry and ZTE International in January

2007 in exchange for projects amounting to $4 billion.

“I don’t know to what extent is this deal treasonous. I am also puzzled why they entered into such arrangement without consulting other claimant states,” the source said, adding “We have already cautioned the government against this, but those people in Malacañang refused to listen.”

The Spratlys, a cluster of islands, shoals, islets, cays and reefs along the South China Sea, is said to be harboring rich minerals and oil reserves.

In 2002, the Association of South East Asian Nations and China signed a non-binding declaration on the Code of Conduct in the South China Sea to prevent dispute among claimant countries.

The Spratlys is claimed in part or in whole by China, the Philippines, Vietnam, Malaysia and Taiwan.

“It seems that the interest of China is important to the Philippine government. You can’t blame them since China is an emerging power and we could not resist their offer or reject them,” the official said.

Part of this $4-billion package from China are the botched ZTE National Broadband Network deal, the Department of Education’s Cyber-Education project, and the North and South Rail projects. All these projects are said to be overpriced. Michaela P. del Callar

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