Philippines’ Duterte says Xi offering gas deal if arbitration case ignored

Philippine President Rodrigo Duterte has acknowledged he’s short of solutions for having China adhere to Manila’s arbitration victory in their South China Sea disputes. (File/AP)
Updated 11 September 2019

Philippines’ Duterte says Xi offering gas deal if arbitration case ignored

  • If Duterte ignores the Permanent Court of Arbitration’s 2016 ruling, China would agree to be the junior partner in a joint venture to develop gas deposits at the Reed Bank
  • The tribunal in The Hague clarified maritime boundaries and the Philippines’ sovereign entitlements

MANILA: Philippine President Rodrigo Duterte said his Chinese counterpart has offered Manila a controlling stake in a joint energy venture in the South China Sea, if it sets aside an international arbitral award that went against Beijing.
Duterte said Chinese President Xi Jinping told him during their recent meeting that if he ignored the Permanent Court of Arbitration’s 2016 ruling, China would agree to be the junior partner in a joint venture to develop gas deposits at the Reed Bank, located within Manila’s Exclusive Economic Zone (EEZ).
“Set aside the arbitral ruling,” Duterte was quoted as telling reporters late Tuesday in remarks provided by his office on Wednesday.
“Set aside your claim,” he said, quoting Xi. “Then allow everybody connected with the Chinese companies. They want to explore. If there is something, they said, we will be gracious enough to give you 60%, only 40% will be theirs. That is the promise of Xi Jinping.”
China’s foreign ministry and its embassy in Manila did not immediately respond to requests for comment on Duterte’s remarks.
The tribunal in The Hague clarified maritime boundaries and the Philippines’ sovereign entitlements, and in doing so, invalidated China’s claims to almost the entire South China Sea. China does not recognize the ruling.
Duterte has sought to befriend Xi, hoping to secure billions of dollars of investment, avoiding challenging China over its activities in the South China Sea, including its militarised artificial islands.
Big setback
Any agreement to forget the arbitral award and team up with China would be a major setback to other claimants, especially Vietnam and Malaysia, which like the Philippines have experienced repeated challenges from China’s coast guard inside their EEZs.
The United States has called that bullying and coercion aimed at denying rivals’ access to their energy assets.
Duterte did not say if he had agreed to Xi’s offer, but said the part of the arbitral award that referred to the EEZ “we will ignore to come up with an economic activity.”
The tribunal said the Philippines had legal rights to exploit gas deposits that China also claims at the Reed Bank, about 85 miles (140km) off the Philippine coast.
The Philippines only accessible gas resources at the Malampaya fields are set to run out by 2024.
A joint project with China has been talked about for decades, but has gone nowhere because of their competing claims. Joint activity could be deemed as legitimising the other side’s claim, or even relinquishing sovereign rights.
Philippine Foreign Secretary Teodoro Locsin on Wednesday told news channel ANC that a preliminary agreement between China and the Philippines would avoid stating which country was entitled to the gas.
“It’s very clear — no legal position is compromised if we enter into this agreement,” Locsin said, adding that putting aside the arbitration case was immaterial, because an international court had already made its decision.
“It’s final and binding,” he added.


Ivory Coast tourism attracts $5bn from Arab investors

Updated 56 min 58 sec ago

Ivory Coast tourism attracts $5bn from Arab investors

  • The tourism ministry said “a round table of investors in Dubai” expressed interest In Ivory Coast
  • The initiative, dubbed “Sublime Cote d’Ivoire” (Magnificent Ivory Coast), was launched in May

ABIDJAN: Ivory Coast announced Tuesday that Arab investors had pledged $5 billion to support its program to attract foreign tourists to the West African nation.
The tourism ministry said “a round table of investors in Dubai” on Sunday and Monday expressed interest In Ivory Coast and in total, the minister for tourism and leisure, Siandou Fofana, “enlisted from them pledges worth just over $5 billion” (4.49 billion euros).
Ivory Coast’s charm offensive in the United Arab Emirates included a delegation with recently retired star footballer Didier Drogba and A’Salfo, lead singer with the pop group Magic System, who gave two concerts.
The initiative, dubbed “Sublime Cote d’Ivoire” (Magnificent Ivory Coast), was launched in May.
“Our goal is to become the fifth biggest destination for tourism in Africa by 2025,” Fofana said in the ministry’s statement.
If objectives are reached, tourism would account for 12 percent of GDP compared with 5.5 percent today, and jobs in the tourism sector would grow from 270,000, as of 2016, to 365,000.
The economy today is hugely dependent on rural earnings, especially cacao and coffee.
The plan is to attract tourists to the remote west of the country, a region of unspoiled mountains and beaches.