Clinton urges diplomacy in South China Sea dispute

US SECRETARY of state Hillary Rodham Clinton has weighed in on the territorial tensions in the South China Sea, saying southeast Asian states must present a united front to China and “literally calm the waters” in dealing with the potential conflict zone.

“It is time for diplomacy,” said Mrs Clinton in the Indonesian capital Jakarta.

She was speaking one day before she heads to Beijing. The US is trying to shore up its influence in Asia and fend off China’s growing might in the region.

The South China Sea has become Asia’s biggest potential military flashpoint as anxieties grow between Beijing and its neighbours over territorial claims.

China has been flexing its growing military and diplomatic muscle over its claims to a number of small, but strategic and potentially energy-rich areas in the region. But Beijing has met stiff opposition from Asian neighbours, including Japan, the Philippines, Vietnam and Brunei.

A summit of the 10 members of the Association of Southeast Asian Nations (Asean) in July failed to issue a joint communique for the first time in the group’s 45-year history after disagreement over the wording of a section on territorial claims in the area.

“We have the east Asia Summit coming up. This should be the goal that diplomacy pursues to try to attain agreement . . . to literally calm the waters . . . it is certainly in everyone’s interest that we do so,” said Mrs Clinton.

She was speaking as China’s defence minister Liang Guanglie held talks with his Indian counterpart, AK Antony, over resuming military ties and progress made on resolving a Himalayan border dispute that led to a brief war in 1962.

However, part of yesterday’s talks are aimed at persuading New Delhi to withdraw from a joint oil exploration venture with Vietnam in the South China Sea.

In July, China angered the United States, as well as Vietnam and the Philippines, by creating a city and military garrison on a remote island 220 miles from its southernmost province intended to administer hundreds of thousands of square miles of water.

Meanwhile, China has pledged nearly €400 million in soft loans and grants to Cambodia, and Premier Wen Jiabao thanked it for helping Beijing maintain good relations with the Asean, said Secretary of State for Finance Aun Porn Moniroth this week.

Cambodia, which chairs Asean meetings this year, was accused by some countries in the group of stonewalling in support of China.

Chinese investment in Cambodia was €1.5 billion last year, more than double the combined investment by Asean countries and 10 times more than the US, which is trying to extend its influence in the region.