CODE OF CONDUCT FOR SOUTH CHINA SEA:

UNCLAS HANOI 001382 SIPDIS SENSITIVE STATE FOR EAP/BCLTV, EAP/RSP E.O. 12958: N/A TAGS: PREL PGOV MARR PINR VM ASEAN CVR SUBJECT: CODE OF CONDUCT FOR SOUTH CHINA SEA: - ADOPTION BY JULY "50-50" UNCLASSIFIED PAGE 02 HANOI 01382 301028Z ¶1. (SBU) AT A WORKING LUNCH ON MAY 30, MFA ASEAN DEPARTMENT DEPUTY DIRECTOR GENERAL PHAM HUU CHI TOLD POL/C AND POLOFFS THAT HE RATED AGREEMENT AMONG ASEAN MEMBERS ON THE FINAL LANGUAGE OF THE CODE OF CONDUCT IN TIME FOR THE ASEAN MINISTERIAL MEETING IN JULY AS NO BETTER THAN "50-50." (SEPTEL WILL REPORT ON MFA VIEWS OF THE RECENT SENIOR OFFICIALS MEETING IN BRUNEI.) ¶2. (SBU) ACCORDING TO CHI, MALAYSIA CONTINUES TO INSIST THAT THE CODE REFER ONLY TO THE SPRATLY ISLANDS -- NOT THE SOUTH CHINA SEA OR "DISPUTED AREAS" -- BECAUSE IT DOES NOT WANT THE CODE TO COVER THE SEVERAL ISLANDS MALAYSIA CLAIMS IN THE SOUTHWEST PART OF THE SOUTH CHINA SEA. (THESE ISLANDS ARE CONSIDERED OUTSIDE THE SPRATLY ARCHIPELAGO.) DESPITE RECENT PHILIPPINE EFFORTS TO COME UP WITH A NEW FORMULA, MALAYSIA IS STILL NOT SATISFIED, CHI NOTED. HE NOTED THAT BEIJING HAD INDICATED THAT IT WOULD GO ALONG WITH WHATEVER ASEAN CONSENSUS EMERGED ON THE EXACT WORDING. ¶3. (SBU) ASEAN WILL TRY TO RESOLVE THIS ISSUE AT A SENIOR OFFICIALS MEETING IN JUNE IN VIENTIANE, WITH HOPES OF AGREEMENT IN TIME FOR APPROVAL OF THE CODE AT THE AMM. CHI SAID HE EXPECTS MFA VICE MINISTER NGUYEN DINH BIN WILL REPRESENT THE GVN. INITIALLY, THE PLAN WAS FOR ONLY THE FOUR ASEAN CLAIMANTS (BRUNEI, MALAYSIA, THE PHILIPPINES, AND VIETNAM) TO ATTEND, BUT OTHER ASEAN MEMBERS ASKED TO PARTICIPATE AS WELL. ¶4. (SBU) COMMENT: WHILE NO ONE HERE IS HOLDING HIS BREATH ON THE IMMINENT RESOLUTION OF THIS LONG-STANDING ISSUE, ASEAN APPEARS TO BE NUDGING CLOSER TO A WORKABLE CONSENSUS. UNCLASSIFIED PAGE 03 HANOI 01382 301028Z WHILE THE CODE WOULD NOT BE LEGALLY BINDING, AS OFFICIALS HERE STRESS, IT WOULD MARK AN IMPORTANT STEP FORWARD IN REGIONAL SOLIDARITY AND FURTHER DIMINISHMENT OF TERRITORIAL TENSIONS IN THE SOUTH CHINA SEAS. PORTER UNCLASSIFIED