Phl, China open to improving strained relations

 MANILA, Philippines - Despite disagreements on the Panatag Shoal dispute, the Philippines and China are both committed to improve the state of its bilateral relations, Interior Secretary Mar Roxas said on Tuesday.

"...[D]espite these divergent starting points... both sides expressed their sincere desire to prevent further deterioration in our bilateral relations," Roxas said following his meeting with Chinese Vice President Xi Jinping.

President Benigno Aquino III sent Roxas to China last week amid issues concerning the relations between the two countries.

"The Philippine side reiterated our territorial claims. We said that logically, because of proximity to our mainland, that historically, commonsensically, and even legally, because of UNCLOS (United Nations Convention on the Law of the Sea), we have had this claim over Panatag Shoal for all this time," Roxas said.

Roxas said, however, that the Chinese side is also firm in its position that it claims the disputed Panatag Shoal, located 124 nautical miles from the nearest base point in Zambales.

"It is important to note that on the same occasion of the China-ASEAN trade fair, Vice President Xi said in a speech, 'We are firm in safeguarding China's sovereignty, security and territorial integrity and are committed to resolving differences with our neighbors concerning terrirotrial land, territorial sea, and maritime rights and interests through friendly negotiations,'" Roxas said.

Roxas said the meeting was meant to restart the engagement between the two countries, and to explore cooperation in areas that include culture, trade, tourism and investment, among others.

"This is meant to reestablish what had been a frayed relationship," he said.

Roxas said the Chinese government has wished to keep the Panatag Shoal dispute a bilateral affair between the two countries.

"We are giving consideration to China's wishes, but nothing is off the table, the president has not renounced any option," he said.

Roxas added that the issue of the botched Northrail project was also discussed, with the Philippines committed to return about $500 million to the Chinese government in a span of two years.

The North Rail project, funded by China's official development assistance to the country, was nullified by the Supreme Court after citing violations in the country's procurement law.