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Chinese ships enter Philippine waters; Sri Lanka scales back China port
by Staff Writers
Manila (AFP) March 9, 2017


Sri Lanka to scale back port deal with China
Colombo (AFP) March 9, 2017 - Cash-strapped Sri Lanka is to scale back a profitable but controversial deal to sell a deep-sea port to a Chinese company after widespread protests, the ports minister said Thursday.

Arjuna Ranatunga said the government was renegotiating the sale of the debt-laden but strategically-located Hambantota port.

It had hoped to transfer an 80 percent stake to the China Merchants Port Holdings on a long lease, but the proposed deal met with opposition from residents in the southern town of Hambantota and some members of the ruling coalition.

"We have proposed several changes (to the original draft agreement) and we will end up with a situation which is far more favourable to the institution," Ranatunga told reporters in Colombo, referring to the state Sri Lanka Ports Authority (SLPA).

The minister did not give details, but official sources said the SLPA wanted to reduce the Chinese company's equity holding and the lease period, and ensure overall security of the port remained in its control.

Colombo had hoped to raise about a billion dollars from the deal to repay the money China lent it to build the $1.4-billion harbour.

The port, built during the former president Mahinda Rajapakse, has become a white elephant with revenues insufficient even to pay salaries of staff.

The new government, which came to power in January 2015, has been trying to renegotiate terms of its $8-billion Chinese debt, which includes the construction costs of the Hambantota port.

"I hope we will be able to finalise an agreement within a week to 10 days," Ranatunga said.

There was no immediate comment from the state-run Chinese firm.

Chinese survey ships have been entering waters recognised by the United Nations as Philippine territory, Manila's defence secretary said Thursday, in a move he described as "very concerning".

Delfin Lorenzana said the ships were seen last year near Benham Rise -- a Philippine territory 250 kilometres (155 miles) off the east coast of the main island of Luzon -- as well as Reed Bank in the South China Sea, which is claimed by both Manila and Beijing.

"I have ordered the navy that if they see this service ship this year, to start to accost them and drive them away" from Benham Rise, Lorenzana said.

"The very concerning thing is they have several service ships plying this area, staying in one area sometimes for a month as if doing nothing. But we believe they are actually surveying the seabed," he told journalists.

Lorenzana's statement comes as President Rodrigo Duterte seeks warmer relations with Beijing, after ties soured under the previous administration because of conflicting claims in the South China Sea.

Asked why the ships might be surveying in Benham Rise, Lorenzana said he received information the vessels were "looking for a place to put submarines".

Benham Rise is an underwater landmass believed to be potentially rich in mineral and natural gas deposits.

In 2012, the United Nations Commission on the Limits of the Continental Shelf approved the Philippines' undisputed territorial claim to Benham Rise.

The Philippines and China, along with Brunei, Malaysia, Taiwan and Vietnam, have conflicting claims to the South China Sea.

China claims almost all of the vital sealane, including the Reed Bank, which is about 148 kilometres (92 miles) off the Philippine island of Palawan and which Manila considers as its territory.

Duterte's predecessor, Benigno Aquino, had pressed the Philippines' claims leading to tensions with China.

But Duterte, who took office last year, has focused on boosting relations with Beijing, downplaying the territorial conflict while seeking financial and military aid.

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EU approves new military HQ
Brussels (AFP) March 6, 2017
The European Union on Monday approved plans for a military headquarters to coordinate overseas security operations, foreign affairs head Federica Mogherini said. Mogherini, who has pushed hard for the EU to take on an increased military role, said foreign and defence ministers of the 28 member states "unanimously" backed the project. "Today we decided to establish a MPCC (Military Planni ... read more

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