POSITION PAPER

The Philippines’ Territorial and Economic Relations with

China.

On January 22, 2013, the Philippines' Department of Foreign Affairs sent a

note verbal to the People's Republic of China's Embassy in the Philippines, stating
that the Philippines had submitted a Notification and Statement of Claim in order
to begin compulsory arbitration proceedings under Article 287 and Annex VII of
the United Nations Convention on the Law of the Sea. The Chinese government
rejected and returned the Philippines' note verbal, together with the associated
Notification and Statement of Claim, on February 19, 2013. Following this, the
Chinese government emphasized that it will not accept or participate in the

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arbitration sought by the Philippines.

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The substance of the arbitration's subject-matter is territorial sovereignty
over numerous marine features in the South China Sea, which is outside the scope

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of the Convention and has nothing to do with the Convention's interpretation or
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implementation. Through bilateral treaties and the Declaration on the Conduct of
Parties in the South China Sea, China and the Philippines have resolved to settle
their respective disputes through negotiations. The Philippines has broken its
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international law commitment by commencing the current arbitration unilaterally.

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Even if the arbitration's subject-matter was the interpretation or application of the

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Convention, that subject-matter would be an integral part of the two countries'

maritime delimitation, thus falling within the scope of China's declaration filed in
2006 in accordance with the Convention, which excludes, among other things,
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disputes concerning the Convention's interpretation or application. As a result, it is

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clear that the Arbitral Tribunal lacks jurisdiction over the current case. China's
rejection of and non-participation in the current arbitration stands on solid ground
in international law, based on the aforementioned principles and the freedom of
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every State to choose the means of dispute settlement.

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The Convention's preamble declares "the importance of establishing a legal

order for the seas and oceans through this Convention, with due regard for the
sovereignty of all States." It is self-evident that "due consideration for the

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 sovereignty of all States" is a precondition for applying the Convention to assess
the States Parties' maritime rights. In terms of the current arbitration, the Arbitral
Tribunal will not be able to determine the extent to which China may claim
maritime rights in the South China Sea under the Convention without first
determining China's territorial sovereignty over the maritime features in the South
China Sea, let alone whether China's claims exceed the limits set by the
Convention. The topic of territorial sovereignty, however, is outside the scope of
the Convention.

The Philippines' actions have gravely encroached on China's territorial

sovereignty and marine rights and interests, in violation of the United Nations
Charter and international law. In legal terms, they are null and void. The Chinese
government has long been vehemently opposed to the Philippines' conduct, making
solemn representations and protests to the Philippines on a regular basis.

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China has successfully addressed land border issues with twelve of its

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fourteen neighbors after years of diplomatic efforts and talks, delimiting and

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demarcating over 20,000 kilometers of land boundary in the process, accounting
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for almost 90% of China's entire land boundary length. Following negotiations,
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China and Vietnam signed the Agreement between the People's Republic of China
and the Socialist Republic of Vietnam on the Delimitation of the Territorial Seas,
Exclusive Economic Zones, and Continental Shelves in Beibu Bay on December
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25, 2000, establishing a maritime border between the two countries in Beibu Bay.
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The facts illustrate that territorial and marine delimitation conflicts can be handled
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appropriately between States if they negotiate in good faith and on the basis of
equality and mutual benefit. This premise and viewpoint apply equally to China's
South China Sea disputes with the Philippines.
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China does not see the submission of a dispute to arbitration by agreement

as an unfriendly conduct. Unilateral recourse to compulsory arbitration against
another State in disputes over territorial sovereignty and maritime rights, on the
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other hand, cannot be considered a friendly act when the initiating State is fully
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aware of the other State's opposition to the action and the existing agreement
between them on dispute resolution through negotiations. Furthermore, such
behavior cannot be considered consistent with the rule of law because it violates
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international law's essential rules and principles. The Philippines has consistently
taken provocative acts against Huangyan Dao and Ren'ai Jiao in recent years. Such
acts have severely harmed mutual political trust between China and the
Philippines, as well as the friendly environment in which China and ASEAN
member states may execute the DOC and consult on the proposed South China Sea

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 Code of Conduct. In truth, it is the Philippines, rather than China, that has been
"increasingly assertive" in the Southeast Asian region.

The South China Sea issue involves a number of countries and is

complicated by a complex historical backdrop as well as sensitive political
concerns. All parties involved must use patience and political judgment in order to
reach a final agreement. China has consistently maintained that the parties
involved should seek appropriate resolutions through dialogue and negotiations
based on historical realities and international law. In the meanwhile, all parties
involved should engage in conversation and cooperation to maintain peace and
stability in the South China Sea, strengthen mutual trust, dispel misgivings, and
provide the groundwork for a final resolution.

The Philippines' unilateral initiation of the current arbitration will not change

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China's history and factual sovereignty over the South China Sea Islands and
adjacent waters; nor will it shake China's resolve and determination to protect its

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sovereignty and maritime rights and interests; nor will it affect China's policy and

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position to resolve relevant disputes through direct negotiations.
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