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Ramos reassured on Spratlys issue

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PHILIPPINE President Mr Fidel Ramos said yesterday that he was convinced China would not use its new-found economic might to settle territorial claims through military force, and revealed that Manila and Beijing would enter into co-operative defence agreements.

''The Philippines Government and people are comfortable with the growth of China and we'd like to see China a stable and prosperous partner for all of the countries of the Asia Pacific region,'' Mr Ramos said.

He was speaking a day after holding more than two hours of talks with Chinese President Mr Jiang Zemin, who assured Mr Ramos that Beijing would settle differences with its neighbours peacefully. This included disputes over the Spratly Islands.

The islands, located in the South China Sea, are claimed by six Asian countries, including China and the Philippines, and are important strategically and for their oil producing potential.

Asian officials have expressed concern that as China modernises, its military - whose budget has been growing steadily - might choose to settle conflicts by force.

Mr Ramos said: ''The Chinese Government, through President Jiang, said they would shelve the conflict [over the Spratly Islands], but join in the peaceful development of the islands in the South China Sea.

''We were given the assurance that China would not use her economic strength for the purpose of aggression and harassment, and we are very appreciative of that statement.'' Mr Ramos said that China and the Philippines were exploring the possibility of co-ordinating defence supplies, either through counter-trade or co-production.

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