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China's Xi holds Malaysia talks in regional charm offensive
by Staff Writers
Kuala Lumpur (AFP) Oct 04, 2013


Philippines says deal on wider US role needs more work
Manila (AFP) Oct 03, 2013 - Discussions over proposals to expand the American military's presence in the Philippines failed to reach a deal, Filipino officials said Thursday, a day after US President Barack Obama called off a Manila visit.

The plan would allow more US troops, aircraft and ships to temporarily pass through the Philippines, an Asian military ally, at a time when Washington is refocusing its attention on Asia.

President Benigno Aquino has pushed for the deal to help modernise the Philippine military and to contain China, which he accuses of illegally laying claim to most of the South China Sea including parts of Filipino territory.

The two sides completed a fourth round of talks in Manila on Wednesday, but Filipino negotiators could not say when these will resume amid a US government shutdown.

The negotiations are at a "crucial" stage, with more work needed over the installations to be offered to the Americans, as well as the "pre-positioning" of US defence equipment, chief Filipino negotiator Pio Batino told a news conference.

"While we have narrowed down the discussions to these substantive issues, there are still gaps in our positions," he said, refusing to give details.

"We will need to work on some issues more than the others."

The other key issues tackled this week were on "ownership" and "security", a Philippine government statement said.

US Defense Secretary Chuck Hagel had said during a visit to Manila in late August that the two allies were moving towards an agreement "in the near future" and the access talks were to have been a centrepiece of Obama's visit to Manila on October 11-12.

However, Obama cancelled the Malaysian and Philippine legs of his trip on Wednesday due to the budget stand-off with Republican leaders.

Assistant Foreign Secretary Carlos Sorreta said Manila remained hopeful of concluding the agreement, though the negotiators have yet to decide on when or where to meet next.

"We believe our common interest will survive this current issue in the United States," he told reporters.

Asked about the chances of the agreement being signed by Christmas, both Batino and Sorreta said they were optimistic that there would be an eventual deal, though they could not give a time frame.

"I'm still hopeful," Sorreta said.

The United States held two large military bases near Manila until 1992, when it gave both up amid growing anti-US sentiment and a rental dispute.

A new accord in 1999 allowed troops to return to the Philippines for joint military exercises every year.

Several hundred US Special Forces troops are also on short-term assignments in the southern Philippines, where they train and advise local troops fighting Islamic militants.

Chinese President Xi Jinping held talks with Malaysia's leader Friday as part of a Southeast Asian charm offensive, with analysts saying he had the floor to himself after Barack Obama scrapped his own Asia tour.

Xi's visits to Indonesia and Malaysia and his planned attendance at a regional summit next week have taken on added significance with the announcement that the US president would stay home to focus on a budget impasse in Washington.

Some countries in the 10-member Association of Southeast Asian Nations (ASEAN) have expressed increasing alarm at Beijing's assertive claims to waters and islands in the South China Sea.

But Xi, addressing reporters after meeting Malaysian Prime Minister Najib Razak, said China was committed to closer cooperation.

"We agreed to work together to advance the in-depth development of the China-ASEAN strategic partnership and continue to promote East Asian cooperation," Xi said in a joint press appearance with his host.

"China will continue to provide firm support to the central role of ASEAN in East Asian cooperation and we will be happy to see a greater role played by Malaysia in this region."

With Beijing and Washington vying for influence in the strategic region, Obama had planned to get face time with Asian leaders and rub shoulders with Xi at an international summit in Bali next week.

Obama also planned to visit Malaysia, Brunei and the Philippines.

Instead, US Secretary of State John Kerry will take Obama's place so that the president can stay home to focus on the budget gridlock in Washington that triggered the first government shutdown in 17 years.

Analysts said the developments deal a potential blow to the Obama administration's "pivot" policy -- the refocusing of its economic and strategic attention on Asia -- amid the unease over China.

They said the no-show could allow regional competitors such as China to make the case that Washington is an unreliable partner.

Simon Tay, chairman of the Singapore Institute of International Affairs, said Obama's decision "could signal the start of the unravelling of the US pivot to Asia".

Charles Morrison, president of the Honolulu-based East-West Center, told AFP the episode raised questions over "whether the US political system is fully functional and can sustain a leadership position".

"Obama's trip cancellation reduces the visibility of the American role in Asia," he said.

Ian Storey of Singapore's Institute of Southeast Asian Studies, said Xi now "has the floor to himself and it makes the US as a country, its political system and democracy, look weak."

"Meanwhile China looks flush with cash and full of confidence and it is relatively stable at home."

Xi is on his first trip to Southeast Asia since he took China's helm in March. The journey will culminate in his inaugural appearance at the summit of the Asia-Pacific Economic Cooperation bloc in Indonesia on Monday and Tuesday.

Premier Li Keqiang will then represent China at an East Asia summit in Brunei on the following two days.

Obama had been expected to attend both meetings.

Despite tensions over maritime claims, Xi's trip has served to stress the crucial importance of economic ties with China.

Xi and Najib agreed to work on nearly tripling bilateral trade to $160 billion by 2017.

Two-way commerce has grown rapidly to more than $94 billion last year and China is now Malaysia's biggest trading partner, overtaking the United States in recent years.

Later on Friday the two leaders were to oversee the signing of a five-year commitment to strengthen economic and trade cooperation, after similar pledges were made during Xi's earlier stop in Indonesia.

In Jakarta Xi told parliament that territorial disputes should be resolved in a "peaceful manner".

"China is ready to increase maritime cooperation with ASEAN," added Xi, while offering no new proposals.

China, Brunei, Malaysia, the Philippines, Vietnam and Taiwan all have claims -- some overlapping -- to the resource-rich South China Sea, which analysts consider one of the world's potential flashpoints.

China agreed this year to hold discussions with ASEAN on an eventual binding Code of Conduct in the sea to prevent accidental conflict.

Analysts said the move has lowered temperatures for now.

But they add Beijing will never back down on territorial claims that include virtually all of the strategic waterway, and will resist any agreement that could weaken the claims.

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