Background

A group of low-lying coral reefs and rocky outcrops in the South China Sea could well become the scene of a major dispute involving six or seven Asian nations. The latest development occurred in February 1995 when the Philippines's armed forces discovered Chinese-built concrete markers and structures on the tiny islands of Mischief Reef, inside waters claimed by the Philippines. Suddenly, it seemed Chinese territory was within 200 kilometres of one of the main Philippine islands, Palawan. The Philippine government retaliated by ordering its air force to destroy the Chinese-built structures. In addition, sixty-two Chinese were arrested by the Philippine navy for fishing within Filipino waters.

These events are the latest in a chain of events stretching back to 1974 when Chinese forces occupied the Paracel Islands to the north of the Spratly Islands.

The Spratly Islands, until recent times, have not supported a permanent population. Currently they are occupied by five nations - Vietnam, the Philippines, Malaysia, Taiwan and China. Territory is also claimed by Brunei. The occupying countries back their claims with military facilities such as airstrips and armed forces on several islands.

One answer can be found on a map of the South China Sea (see pages 78-79 or 80-81 in the Heinemann Atlas). These maps show the Spratly Islands located at some distance from the larger land masses of South-East Asia. Generally, a nation's territory commonly extends twelve nautical miles from its land borders but up to 200 nautical miles (371 km) as an exclusive economic zone. Within this zone a nation can exercise its right to fish and mine while prohibiting other nations. A nation claiming islands, no matter how insignificant they appear on maps and navigation charts, can effectively extend its resources. It can also influence events in that region - a point not lost on the nations of South-East Asia when military strength is considered to be a valuable asset.

The Spratly Islands are already developing into important fishing grounds for China, Vietnam and the Philippines. In addition, there is the possibility of even more valuable resources: oil and gas. New sources of energy for China as well as Vietnam, the Philippines, Malaysia and Indonesia could further power their expanding economies. China, currently an exporter of oil, may become an importer of oil and gas within a decade unless it finds substantial new resources.

Just how much oil and gas, if any, is in the Spratly Islands region has yet to be determined. Since 1974, Chinese maps include an exclusive economic zone of 371 kilometres around the Spratly Islands. This, in turn, cuts into part of Indonesia's rich gas field based around Natuna Island (see the location map of the Spratly Islands). A joint US$35 billion contract between Indonesia and the US oil company, Exxon, will develop the gas field.

Perhaps the Natuna gas field development holds the solution to the Spratly Islands dispute. It has been suggested by a number of involved parties that 'joint development' of the Spratly Islands is the way to proceed. A council of involved nations could administer navigation, weather reporting, fishing, and oil and gas exploration and production. Any financial benefits could be split according to an agreed formula. However, agreeing on any formula may be seen by some groups as 'giving way' on territorial claims and national sovereignty. Indonesia's annual South China Sea Workshops with the claimant nations may provide the basis for future joint development arrangements.

Classroom Activities

Which of the claimant countries is:


a. closest to the Spratly Islands?
b. furthest from the Spratly Islands?

Give at least three reasons why countries are interested in claiming the Spratly Islands.

Apart from the governments of countries in the region, name two other organisations that are interested in the Spratly Islands. For each organisation, give a reason why they are interested.

Which two countries were involved in armed conflict in the Spratly Islands in 1988? What were the results of this conflict?

From the table of military strength, decide which country appears to be strongest on land, sea and air. Suggest why smaller countries such as Malaysia and Brunei would like to avoid armed conflict in this region.

a. What is one possible advantage that joint development could bring to the nations involved in the Spratly Islands dispute?


b. What is one possible disadvantage that joint development could bring to the nations involved in the Spratly Islands dispute?
c. Do you think the arguments for or against joint development are stronger? Be sure to say why.

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