MFA MAINTAINS CLAIMS TO SOUTH CHINA SEA; URGES

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 000924

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/13/2028
TAGS: PBTS PHSA PREL PGOV ECON CH TW XC
SUBJECT: MFA MAINTAINS CLAIMS TO SOUTH CHINA SEA; URGES
U.S. COMPANIES NOT "TO GET ENTANGLED"

REF: BEIJING 366

Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1.4
(b/d).


1. (C) Summary: China continues to explain its claims in the
South China Sea (SCS),including the nine-segment dotted line
that traces out its jurisdiction over islands and waters in
the SCS and overlaps with territorial and economic exclusion
zone claims of five other countries and Taiwan, through
historic references rather than international instruments
such as the 1982 Convention on the Law of the Sea. MFA Asian
Affairs Department Policy Planning Division Deputy Director
Zheng Zhenhua told PolOff March 7 that China does not foresee
open military conflict in the SCS and will continue to pursue
its policy of "shelve differences, mutual development." In
the context of China's approaching U.S. oil companies to
cease joint hydrocarbon development projects with Vietnam,
Zheng urged the United States to "do more" to ensure "peace
and tranquility" in the SCS. End Summary.

The Cow's Tongue
--------------


2. (C) MFA Asian Affairs Department Policy Planning Division
Deputy Director Zheng Zhenhua discussed in a recent meeting
with PolOff the so-called "Nine-Dashes" or "Cow's Tongue," a
nine-segment dotted line on PRC maps of the South China Sea
(SCS) that traces out China's jurisdictional claims in the
region. First published by the Kuomintang Government in 1947
and referenced in the 1998 PRC Law on the Exclusive Economic
Zone and the Continental Shelf, the SCS claims of China (and
because of the claim's original historical antecedent,
Taiwan) overlap exclusive economic zone and continental shelf
claims of Vietnam, Indonesia, Malaysia, Brunei and the
Philippines and continue to be a cause of tension among
claimants seeking to exploit fishing and hydrocarbon
resources in the SCS.

Historical Claim
--------------


3. (C) "As proof of the indisputable sovereignty of China"
over the area it claims in SCS, Deputy Director Zhen
referenced the now familiar claim that Chinese inhabited
islands in the area during the Eastern Han Dynasty (23-220
A.D.) and that the Chinese had established a form of
government "in the modern sense" during the Song Dynasty
(420-478 A.D.). Zheng said the Spratly and Paracel islands
were under the jurisdiction of the administrative region that
became present-day Guangdong province.

Historically Undisputed?
--------------


4. (C) Deputy Director Zheng said that from 1947 and through
the 1960s, no country, including the United States, "ever
raised questions or doubts about Chinese sovereignty over the
Spratly and Paracel Islands." Zheng cited a 1958 letter from
North Vietnam Premier Pham Van Dong to Chinese Premier Zhou
Enlai purportedly confirming Vietnamese acceptance of Chinese
sovereignty over the islands.

... Until 1970s
--------------


5. (C) Zheng stated that only in the 1970s, during the third
the Law of the Sea conference (which resulted in the 1982
Convention of the Law of the Sea - UNCLOS),did other nations
begin to dispute Chinese claims in the South China Sea.
Because of complexity of the overlapping claims in the SCS
and other areas, in the late 1970s, Chinese leader Deng
Xiaoping articulated the "shelve differences, mutual
development" approach to addressing economic development
activities of the SCS and other disputed areas.

SCS Stable
--------------


6. (C) Despite the continued contentiousness of competing
claims in the South China Sea, Zheng said, the SCS situation
is "quite stable," and he foresees "no military conflict" in
the region. The 2002 Declaration of Conduct (DOC) on the
South China Sea is an "expression of political will" that all
parties will show restraint in addressing conflicting claims
in the SCS. Deputy Director Zheng said such projects as the
2005 tripartite seismic exploration agreement and annual
meetings on marine scientific research involving China,
Vietnam and the Philippines will help "enhance trust" in the
region.

BEIJING 00000924 002 OF 002



Meaning of the Nine-Dash line
--------------


7. (C) When asked about China's claims to the waters traced
by the "Nine-Dash" line, Zheng provided a printed statement
that reads as follows: "The dotted line of the South China
Sea indicates the sovereignty of China over the islands in
the South China Sea since ancient times and demonstrates the
long-standing claims and jurisdiction practice over the
waters of the South China Sea." Zheng said that terms such
as "historic waters" or "territorial waters," though often
used in media and scholarly articles addressing China's SCS
claims, are not the Chinese government's official
nomenclature for the area of sea within the Nine Dashes.

Relation to UNCLOS
--------------


8. (C) Though not explicitly acknowledging that China's
claims in the SCS may not be consistent with provisions of
the UNCLOS, Deputy Director Zheng said that China's claims in
the SCS "predated" the UNCLOS and were not therefore bound by
the treaty. Zheng indicated that the many "inconsistencies
and exceptions" in UNCLOS provided additional justification
for China to define its jurisdictional claims on its own
terms.

Territorial Waters
--------------


9. (C) In a discussion of fishing practices in the SCS, Zheng
said that China applies the term "territorial waters" to
waters within twelve miles of Chinese territory. He noted
that China had formally demarcated a twelve-mile territorial
water zone around the Paracel Islands, where China believes
its sovereignty claims are unassailable. Zheng said China
had not established a similar zone around the Spratly
Islands, because China recognizes that territorial claims
there are more complex. Zheng affirmed that China "upholds
the right of free passage of vessels" within the "Nine-Dash"
area.

U.S. Companies Should Avoid "Entanglements"
--------------


10. (C) Zheng suggested that U.S. companies should avoid
"getting entangled" in disputes in the SCS. In that context,
he mentioned that the Chinese Consulate General in Houston
recently contacted a number of oil companies in Texas,
including Chevron and Hunt, requesting that they halt
hydrocarbon development projects those companies initiated
through agreements with the Vietnamese Government. He noted
that Chevron agreed to suspend its participation in the
project, at least temporarily. Zheng said China hopes the
United States "can do more" to ensure "peace and tranquility"
in the area.
RANDT