MANILA, Philippines - President Benigno "Noynoy" Aquino III on Monday said the Philippines will abide by a proposed code of conduct in the South China Sea to be drafted by the 10-member Association of Southeast Asian Nations (ASEAN).

In his first foreign policy speech as president, Aquino said abiding by a code of conduct is one way for the Philippines to help ASEAN reach its political, security, economic and socio-cultural goals by 2015.

“My administration will do everything it can to make sure our region achieves this goal. Let me indicate just a few ways the Philippines intends to do this. The first is in peace and security. The Philippines will continue to participate in discussions on issues of concern within the region, and abide by the ASEAN declaration on the Code of Conduct in the South China Sea,” he said in his speech at the 43rd ASEAN Foundation Day in the Department of Foreign Affairs.

DFA Undersecretary for Policy Erlinda Basilio earlier called for the drafting of a formal code of conduct to allow ASEAN member-nations and China to avoid tension around disputed territories.

Brunei, Malaysia, Vietnam, the Philippines, China and Taiwan all stake claims over territory in the South China Sea while China has become increasingly aggressive in entering territorial waters.

Basilio said ASEAN would propose a more formal and legally binding code of conduct in the South China Sea at its next meeting with China. ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

"We just want stability and a peaceful environment, not only there, but all over the region," she said.

She said disputes have always been discussed in security meetings at the ASEAN Regional Forum , where extra-regional powers, such as the United States, Russia, India, Australia and Japan join ASEAN and China.

"Many of the participants in the ARF are trading nations and therefore it is important for them to have unimpeded access to the waters in South China Sea," she said.

Building connectivity with ASEAN

Meanwhile, President Aquino said his administration will ensure that trade agreements signed by the previous administration will result in increased employment and expansion of the market for ASEAN goods.  

He said the Philippines also supports the ASEAN Connectivity project, which aims to provide a framework for regional cooperation on connectivity and provide a foundation for further connectivity with East Asia and South Asia.

“This hopes to create an ASEAN connectivity masterplan that consists of sectoral body plans in transport infrastructure, information and communications technology, energy power grids and tourism. The Philippines has major interests here, with its existing nautical highway or RORO project. Once it is implemented, ASEAN Connectivity will bridge our nation to our neighbors, shorten transfer distances and open more economic opportunities for more people,” the President said.
 
Aquino said he believes “culture exposure and cooperation” will help promote peace and harmony in the region. 
 
“The greatest antidote to war, the most effective instrument of peace and mutual understanding, is cultural exposure and cooperation. A new generation of increasingly prosperous citizens in our respective nations are interested in getting to know their neighbors. With this curiosity comes a greater understanding amongst our peoples over the long term that would strengthen cooperation on several fronts: political, economic and social. In turn, ASEAN’s improved integration will reinforce its capacity to deal with the rest of the world.”
 
The President later received a congratulatory call from the Millennium Challenge Corporation (MCC) for the approval of a reported $434-million grant for the Philippines’ development projects.

Earlier this year, the MCC Board headed by State Secretary Hillary Clinton, decided to defer approval of the Compact agreement until after the national elections held last May.

MCC CEO Daniel Yohannes said at the time they wanted to get a commitment from the new Philippine government that it would abide with MCC policy objectives. He was apparently referring to the government’s worsening corruption problem, as shown in performance parameters the aid-giving body conducts every year for participating nations.

The Philippines became eligible for a Compact agreement as early as 2009, but the Arroyo administration continually flunked the corruption test, including the last one released for Fiscal 2010 (the US fiscal year starts in October).  With reports from Rodney Jaleco, ABS-CBN North America News Bureau; and Reuters