Thayer Consultancy

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Background Briefing:
Vietnam China Agreement on Basic Principles Guiding the Settlement of Maritime Issues

Carlyle A. Thayer October 12, 2011

[clientnamedeleted] XinhuaisreportinganaccordbetweenChinaandVietnam(seebelow).
China,Vietnamsignaccordonresolvingmaritimeissues English.news.cn2011101201:04:04

BEIJING,Oct.12(Xinhua)ChinaandVietnamonTuesdaysignedanagreementonbasic principlesguidingthesettlementofmaritimeissuesexistingbetweenthetwocountries. Thesixpointagreementisinaccordancewiththeconsensusreachedbytheleadersof ChinaandVietnamandisbasedona1993agreementonbasicprinciplesforresolving territorialandborderissuesexistingbetweenthetwocountries,theagreementsaid. The two countries should remain committed to friendly consultations in order to properly handle maritime issues and make the South China Sea a sea of peace, friendshipandcooperation,theagreementsaid. The agreement was signed by China's Vice Foreign Minister Zhang Zhijun and his VietnamesecounterpartHoXuanSon. ChinaandVietnamshouldseekabasicandlongtermapproachthatwillbeacceptable for both sides in solving maritime disputes on the basis of legislation and principles enshrined ininternational law, includingtheUnited NationsConventionontheLawof theSeasignedin1982,theagreementsaid. Both sides should fully respect legal principles, take history and other relevant issues into consideration and accommodate each other's concerns in a constructive manner, theagreementsaid. In the process of negotiating maritime issues, both sides should abide by the agreementsandconsensusreachedbythecountries'seniorleadersandimplementthe DeclarationontheConductofPartiesintheSouthChinaSea(DOC),theagreementsaid. Both sides should solve maritime disputes through negotiations and friendly consultations,andthetwocountriesshouldconsultwithothercountriesiftheyarealso involvedinthedisputes,theagreementsaid. While seeking a basic and longterm approach to resolve maritime issues, both sides shouldexploreinterimandtemporarysolutions,includingresearchandnegotiationson thejointdevelopmentofthesea,withoutimpactingeachside'sstanceandposition,the agreementsaid.

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Both sides should seek steady progress in negotiations regarding the maritime demarcation of the baymouth of Beibu Gulf and discuss the joint development of the seaarea,theagreementsaid. Both sides should promote maritime cooperation in less sensitive fields, including marine environmental protection, scientific research, search and rescue, disaster reductionandprevention,theagreementsaid. Heads of the border negotiation delegations of both countries should hold regular meetings twice a year, which will rotate between both countries, the agreement said, addingthatspecialmeetingswilltakeplaceifnecessary. Both sides agreed to set up a hotline contact mechanism in order to allow them to promptlycommunicateandproperlydealwithmaritimeissues,theagreementsaid. Editor:MuXuequan

Whatisyourassessment?Isthissomethingnew?Whoisthewinner?Isitanother nonbinding piece of paper that China can easily ignore like the Declaration on ConductofPartiesintheSouthChinaSea[DOC]? ANSWER:Theagreementonprinciplestoguidethesettlementofmaritimedisputes has long been expected. China and Vietnam agreed in 2008 to work on this document and seven bilateral meetings were held starting in 2010. The announcementthatagreementhasbeenreachedcomesasasurprise.Itisobviously timedtoproduceadeliverableduringthecurrentvisittoBeijingbypartySecretary GeneralNguyenPhuTrong.ChinaandVietnamdidinfactreachanagreementofa similarnatureaspartoftheprocessthatledtothedemarcationoftheirlandborder. A summit of party leaders set a deadline and the land border agreement was reached. Therearenoindicationsthatthecurrentsummitwillproduceasimilardeadlinefor the settlement of their bilateral maritime disputes. The agreement on principles represents a step forward. Whether it is a significant step forward remains to be seen.Theproofwillcomeinthefollowingmonths.WillChinaandVietnamactually inaugurateany or all of the suggested areas of cooperation? If so, this would be a positive indicator. On the other hand, will China continue to claim indisputable sovereigntyovertheSouthChinaSeaandprotestswhenVietnamawardscontracts toforeignoilcompanies? Jointdevelopmenthaslongbeenonthecards.Itcanonlyproceedifbothpartiesput inaclausethatjointdevelopmentdoesnotprejudicetheirsovereigntyclaims.Also, Vietnam will have to be careful about where joint development takes place. It cannotaffectathirdparty.Willthesharingofoilandgasbeonanequitablebasisor willChinaclaimthelionsshare. References to the UN Convention on Law of the Sea may sound good, but China, VietnamandthePhilippinesallclaimsexcessivebaselinesthatarenotinaccordwith international law. These baselines form the basis of delimiting the territorial sea, contiguouszoneandexclusiveeconomiczone.Itwouldbeamajorstepforwardifall partiesagreedtoredrawtheirbaselinestoreflectinternationallaw.Forthemoment referencestoUNCLOSmustbeseenaswindowdressing.