Vietnam seeks legal settlement to South China Sea claims

Greg Torode Chief Asia Correspondent in Singapore

Vietnam's defence chief yesterday revealed that talks were under way to create a legally binding code to ease tensions in the South China Sea.

In rare public comments, Defence Minister General Phung Quang Thanh also refused to rule out a possible deal with Russia to purchase state-of-the-art submarines and fighter jets - a move seen as a direct response to China's military build-up.

"It is not exactly going on,  we are still in the process of researching, studying and exploring possible partners," General Thanh told an Asian defence conference when asked about the deal.

He added that any such moves would be purely defensive and had been helped by strong economic growth in recent years.

Russian media last month outlined an impending $1US.8 billion deal between Hanoi and Moscow to purchase six Kilo-class submarines - one of the stealthiest craft available. Vietnam is also continuing to upgrade its fleet of jet fighters.

"We have no intention of harming other nations," General Thanh told the Shangri-La Dialogue, an informal gathering of defence officials organised by the London-based International Institute of Strategic Studies. He insisted Vietnam was determined to promote "peace and stability" through military diplomacy.

Privately, Vietnamese military strategists have expressed alarm about China's build-up. They are particularly concerned about the completion of a large submarine base on Hainan Island .

Describing the South China Sea as a territorial dispute "left over from history", General Thanh called for a peaceful negotiated settlement to rival claims - a deal based on international law.

As part of that effort, he said Vietnam was involved in regional discussions to strengthen an earlier declaration on the South China Sea signed by China and the Association of Southeast Asian Nations.

The 2002 declaration was widely acclaimed at the time. It sought to commit states to maintaining peace and avoiding actions that could inflame lingering tensions. Without any legal teeth, however, the declaration has not prevented tensions from rising in the past year or so.

"We are working with parties concerned about the Code of Conduct," he said, referring to Asean's long-term plan of creating a legal framework to the earlier document.

He did not outline a timetable, however, or discuss precisely who was involved.

Several countries have increased naval patrols in the South China Sea, while standoffs have occurred between US surveillance ships and Chinese ships.

Beijing has also objected to oil-exploration deals signed between Vietnam and international oil firms.

While North Korea's second test of a nuclear bomb last week dominated the conference, the South China Sea received considerable attention as a long-term potential threat to regional peace.

The sea, straddled by the Paracel and Spratly archipelagos, is East Asia's key shipping lane, delivering much of China's and Japan's oil and exports. As well as fishing and tourism potential, the seabed is thought to contain rich oil and gas deposits.

Vietnam and China claim both island groupings in whole, while the Philippines, Malaysia and Brunei claim the Spratlys in part. Taiwan's claim mirrors that of Beijing.

While China occupies all of the Paracel Islands, Vietnam has by far the most holdings in the Spratlys.

When questioned about Vietnam's moves to develop the holdings, General Thanh said it was not actually expanding its presence.