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    By Vera Files
     

    Vera Files is put out by veteran journalists taking a deeper look into current issues. Vera is Latin for “true.”  

     

    Neglect by President Arroyo and squabbles over turf and money have derailed government efforts to establish the country’s new archipelagic baseline, and may jeopardize the Philippines’ claim over resource-rich Spratlys that fall within its extended continental shelf.  With a year left before the May 13, 2009, deadline for filing its claim for an extended continental shelf under the United Nations Convention on the Law of the Sea (Unclos), the Philippines is nowhere near completing the studies, surveys and report required to bolster the country’s claim over its extended territory.

    The Unclos, which the Philippines ratified 14 years ago, requires coastal states to declare their extended continental shelf, which is the underwater extension of the land.

    In Congress, lawmakers are debating a redefined archipelagic baseline bill. Although there is no deadline to the filing of a country’s archipelagic baseline with the UN, it is, however, going to be the basis for measuring all maritime regimes or zones: territorial sea (12 nautical miles from the baseline), contiguous zone (24 NM), economic exclusive zone (200 NM), continental shelf (200 NM) and extended continental shelf (350 NM).

    The drafting of the country’s claim under the Unclos is a tale of infighting among agencies wanting to take the lead and subsequently controlling the billions of pesos of funds for that undertaking, including a $250,000 grant from the Norwegian government.

    It is also a story of President Arroyo’s failure to give importance to the complicated tasks involved (such as marine hydrographic, gravity and magnetic surveys and studies) to come up with data required in drafting territorial baseline despite the urgency of a May 2009 deadline.

    In 2001 President Arroyo abolished the Cabinet Committee on the Treaty on the Law of the Sea, created under Ferdinand Marcos and maintained by the three succeeding presidents—Corazon Aquino, Fidel Ramos and Joseph Estrada. President Arroyo replaced it with the midlevel Maritime and Ocean Affairs Center (MOAC), which was just a unit in the Department of Foreign Affairs (DFA), then headed by Assistant Secretary Alberto Encomienda. 

    After six years, some progress

    It was only in March 2007, after six years, that President Arroyo restored the issue as a Cabinet-level concern when she issued Executive Order 612, creating the Commission on Maritime and Ocean Affairs (CMOA) under the Office of the President. The CMOA is to be chaired by the executive secretary, with the justice secretary and foreign affairs secretary as vice chairmen.

    The initial members were the departments of National Defense, Environment and Natural Resources, Budget and Management, Transportation and Communications, Tourism, and Trade and Industry; National Security Council (NSC), Bureau of Fisheries and Aquatic Resources; National Mapping and Resources Information Authority (Namria); and the Coast Guard.

    President Arroyo designated the DFA as the lead agency and CMOA secretariat. She also committed a major oversight: she excluded from the EO creating CMOA the Department of Energy (DOE), which had been involved in scientific studies on the country’s continental shelf with other agencies.

    It took nine months for President Arroyo to correct the lapse. On December 17, 2007, she issued EO 612-A, including DOE in the CMOA “in order [for it] to be able to fully contribute its knowledge and expertise” in the preparation of the country’s claim for extended continental shelf.

    Outside the Palace, however, there were other initiatives toward complying with the UN requirement. In 2001 the University of the Philippines, through its National Institute of Geological Sciences and the UP Law Center’s Institute of International Legal Studies, undertook a project, “Delineation of the Outer Limits of the Philippine Continental Shelf,” with the DOE, Namria and the Mines and Geosciences Bureau.

    UP law professor Harry Roque, an international-law expert, recalled the confusion on who was to take the lead in this project. Foreign-affairs officials wanted the DFA to lead, because it was in charge of submitting the claim to the UN. The DENR said it should take the lead because the project involves natural resources, and Namria is its line agency. The NSC also got into the picture, citing security considerations.

    In the end, the project proposed an executive order creating an interagency national committee with the president or vice president as chairman and the DFA and the DENR as vice chairmen. When the UP-led project ended months later, President Arroyo had not created any such committee.

    In the case of MOAC, interagency coordination was saddled by its not being Cabinet level; thus, no policy decisions could be made. To be fair, Encomienda presented updates on the project before the Cabinet cluster on security attended by President Arroyo.

    There were also personality differences among MOAC members. Some did not regard highly the entry of a retired police general, Dionisio Ventura, as head of Namria, while others resented what they said was Encomienda’s “soliloquy” during meetings. Worse, some agencies refused to share data with MOAC.               

    Wrangling in FVR’s time

    Bureaucratic wrangling also marred baseline-related activities of past administrations. During the presidency of Fidel V. Ramos, interagency power play derailed a project that would have strengthened the Philippine position to include a portion of the disputed Kalayaan Island Group (KIG) within the Philippine archipelagic baseline. The KIG is part of Spratlys.

    Documents obtained by Vera Files showed that as early as 1994, Ramos ordered various agencies to work together on projects to redefine the country’s archipelagic baseline.

    In mid-1994, then Namria administrator Jose Solis (now congressman of Sorsogon) sought financial assistance from then-Energy Secretary Delfin Lazaro for the building of lighthouses on three islets in the KIG: Nares Reef, Recto Bank or Marie Louise Reef, and Sea Horse Bank.

    This was about the time that the Chinese were starting to occupy Mischief Reef in the KIG, which is only 135 NM away from the Philippine baseline. Lazaro supported the lighthouses project and sought Ramos’s approval to draw funds from the DOE’s Special Account.

    In a memo to Ramos, Lazaro cited possible international complications and risks of the lighthouse project: “While this project will be beneficial to the Philippines in terms of expanding available area not only for petroleum exploration but for other natural resources as well and that the lighthouses will also be important navigational aids, we wish to point out that actual construction of the lighthouse could provoke international protests from other countries [such as China and Vietnam], including possible physical stoppage of the work by their navies.”

    Lazaro’s request for a go-signal got stalled in Malacañang. His successor, Francisco Viray, pursued the lighthouse project. In a memo to Ramos dated December 12, 1994, Viray said: “Once established, these lighthouses will serve as legal basis in determining the new baseline. Other countries are doing the same things to fortify their territorial claims.”

    Viray said the presence of lighthouses would reinforce the country’s claim over the Reed Bank. A lighthouse would have qualified Reed Bank, which is within the 200-mile exclusive economic zone, to be part of the archipelagic baseline. This would increase Philippine archipelagic waters within the baseline by 11,042 sq NM, or 7,750,000 hectares.

    Documents obtained by Vera Files showed that on February 15, 1995, Ramos finally approved the release of P178 million for the mapping, survey and construction of lighthouses in the KIG. He instructed the DOE to supply the funds, and the Namria to supervise the design and construction of the lighthouse, as well as the coordinates of the benchmarks identifying the territorial limits based on the 200-NM EEZ. Formal public bidding was waived “in view of the urgency and confidentiality of the project.” 

    Namria authority revoked

    But soon after the funding was approved, Ramos himself revoked Namria’s authority to oversee the project and transferred it to the Philippine Navy as suggested by then-defense secretary Renato de Villa.

    Solis complained: “The Namria has been religiously working for the immediate implementation of the KIG project. I would like to inform the executive secretary that when there were still no available funds for the project, it was the Namria which did all the work to convince the funding agency to support the project. However, when the funding was approved and the authority was given to the Namria, the Cabinet made a decision to transfer the project to the Philippine Navy.”

    For some reason, the KIG lighthouses never got built—and the Philippines has lost its chance to build them. In 2002 the Arroyo government signed the Asean-China Code of Conduct in the South China Sea that bans construction of new structures on uninhabited islands in the disputed areas. Brunei, China, Malaysia, Taiwan, Vietnam and the Philippines are claiming wholly or partially about 160 islands in the South China Sea.

    A number of baseline and continental shelf legislations have been filed in both chambers of Congress. In the Senate, then-senator Leticia Shahani filed such a bill in 1993. A proposed baseline law authored by detained senator Antonio Trillanes IV is pending in the 14th Congress. The bill seeks to amend the existing baseline to include Scarborough Shoal and treats the KIG as a regime of islands to conform to the criteria set by Unclos.

    In the House of Representatives, Cebu Rep. Antonio Cuenco’s bill has been returned to the committee level after reaching second reading last December. There were earlier initiatives in the House by then representative and now senator Francis Escudero and Rep. Gerry Salapuddin. “The project was stalled due to lack of available funds,” Salapuddin said back then.

    Indeed, the government’s failure to provide the money has slowed down projects needed to revise the baseline law and identify the extended continental shelf. After receiving an initial P50-million funding last year, CMOA is getting only P10 million in the 2008 budget.

    It also took Malacañang five years to include the budget needed for the extended continental shelf project. A source privy to the project said Namria had initially estimated that P10 billion would be needed for the scientific and technical surveys. Deputy Executive Secretary for Legislative Liaison Jake Lagonera balked, saying, “Mas­yado yatang malaki ’yan [That’s too much].”

    Indonesia had spent about $100 million for its project. But MOAC had said about P500 million would be enough for the extended continental shelf project.

    The source said the Palace also found Namria’s second proposal, totaling P2.9 billion, on the high side. It finally approved a P1.7-billion funding to be released over several years.

    The Arroyo administration’s last-minute effort to meet the May 2009 deadline is reflected in Namria’s P 1.2-billion budget for this year. For the first time, it is getting a P380-million allotment for the extended continental shelf delimitation project on top of the P547 million for its regular mapping and remote-sensing activities.               

    Last-minute scramble

    A month before the May 13, 2009, deadline, the Philippine government intends to submit a claim before the United Nations over its extended continental shelf, which scientists and legal experts say include the resource-rich KIG and other disputed territories.

    If the UN upholds this claim, the Philippines would have the exclusive right to exploit the KIG’s vast natural resources, including an estimated 200 billion barrels of oil. The KIG is part of the disputed Spratly Islands in the South China Sea also being claimed wholly or in part by China, Taiwan, Vietnam, Malaysia and Brunei.

    The huge amounts of oil, natural gas, minerals and polymetals, such as gold, silver, iron and nickel, off the seas of the KIG could “greatly contribute to the growth of the economy and uplift the socioeconomic condition of the Philippines,” said the University of the Philippines-Institute of International Legal Studies (UP-IILS).

    But the prize that is the KIG will not come easy. Laying claim to the extended continental shelf requires a complex and concerted series of scientific, diplomatic and legislative efforts. Scientists and academics estimate the process could take from three to 10 years and eat up billions of pesos. If the Philippines misses the deadline, it will lose its claim forever.

    Stressing the importance of the claim for an extended continental shelf, UP’s Roque says, “The majority of oil we derive today is no longer from land territory but from the continental shelf.”

    The Unclos defines continental shelf as “the seabed and subsoil of the submarine areas that extend beyond its territorial sea.” It is the natural underwater extension of the land up to the point where it either gradually descends or drops off into the ocean floor. Under Unclos, a continental shelf of up to 200 NM from the archipelagic baseline automatically belongs to a state and no proof of claim is required.

    A continental shelf that goes beyond 200 NM is called the outer limits or the extended continental shelf. States may claim an extended continental shelf of up to 350 NM from the baseline. To prove that the continental shelf extends beyond 200 NM, a state would have to conduct hydrographic and geoscientific studies and submit the data to the UN Commission on the Limits of the Continental Shelf (CLCS). Some parts of the KIG are about 230 NM from Palawan.

    Atty. Henry Bensurto, head of CMOA Secretariat, says the government plans to submit to the CLCS on April 13, 2009, the technical data proving that the KIG and Scarborough Shoal are part of the country’s extended continental shelf. But Prof. Teodoro Santos, formerly of the UP-National Institute of Geological Sciences (UP-NIGS) had urged the government to submit the claim by 2007, “since the CLCS has to review the submissions and make relevant suggestions, for the state to respond to.”

    Santos, in a paper presented to the UP-IILS in 2002, identified three areas where the Philippines could claim an extended continental shelf: the KIG west of Palawan; Scarborough Shoal (Isla Bajo de Masinloc) west of Zambales; and Benham Rise, off the Bicol Region in the Pacific Ocean.

    Of these, he said the KIG is the “most promising with respect to petroleum and natural gas.”  In terms of the equivalent in billion barrels of oil within the area of the KIG, he said the Chinese have the highest estimate at 100 billion to 200 billion barrels, with Russian sources estimating a low of 7 billion barrels.

    “The Scarborough shoal is made up of mid-oceanic ridges formed during the extension of the South China crust, which are presently adding to the growth of Western Luzon by accretion. Similarly, the Benham Rise is an extinct volcanic ridge added into the eastern margin of Luzon,” said Prof. Mario Aurelio of the UP-NIGS.  He added, “The strongest pieces of evidence the Philippines can present for its claim over these areas are geological, geophysical and tectonic data.”

    The extent of the continental shelf is measured from the country’s baseline, the line connecting the basepoints that define, in longitude and latitude, the archipelagic boundaries. But the bill amending and redefining the archipelagic baseline remains pending in Congress.

    The existing baseline law, passed and amended in the 1960s, used the Treaty of Paris to define Philippine boundaries. The Treaty of Paris is the 1898 agreement in which Spain ceded the Philippines to the United States. The baseline law needs to be amended and harmonized with Unclos provisions, in particular the doctrine of archipelagic states which draws a straight archipelagic baseline “joining the outermost points of the outermost islands and drying reefs of the archipelago.”

    All Congress needs to do is adjust the country’s baseline using Unclos’s Article 47, which says that basepoints must be part of the main archipelago, and must not be more than 100 NM long. 

    House bill stalled

    But the bill amending the baseline, House Bill 3216, authored by Cebu Rep. Antonio Cuenco, got caught up in the controversy that recently surrounded the Spratly Islands and the Joint Maritime and Seismic Undertaking (JMSU) between the Philippines and China. As a result of the various amendments to it, the Cuenco bill now includes within the baseline both Scarborough Shoal and the KIG, which are not part of the main archipelago.

    “Instead of merely correcting the technical and clinical aspects of the baseline, somehow it has broadened to include territorial issues, and when you include territorial issues it gets complicated,” Bensurto said.

    Approved on second reading, the Cuenco bill drew protests from China.  “If the Philippine side forcefully puts Scarborough Shoal and some other Nansha reefs and islands inside the baseline of Philippine territorial sea, it will… disturb China-Philippine cooperation in the area, exerting negative impact on the healthy development of our bilateral relations,” said the Chinese démarche, or official position, dated December 2007, a copy of which was sent to Cuenco by the Philippine Embassy in China.

    The bill had to be thrown back to the Committee on Foreign Affairs for further debates and possible revisions following China’s protest. Hearings are scheduled to resume on April 4. At the Senate, Trillanes filed a counterpart bill, which has not been acted upon.

    Congress does not need to pass the baseline law before May 2009, but the UN will still need a revised baseline as a reference point when deciding on the Philippine claim. “For as long as you’re not clear with your baseline, then there’s difficulty moving forward,” Bensurto pointed out. “The baseline is the first step in putting your archipelagic house in order.”

    A clear baseline helps draw the line separating national and international waters and defines the limits of Philippine responsibility. All maritime regimes or zones are reckoned from the baseline. The 12-mile territorial sea is the area where the state enforces its laws and exploits its resources. The 24-mile contiguous zone, beyond the 12-mile territorial sea, is where the state has the right to pursue smugglers, illegal fishers, illegal immigrants, and customs and tax evaders. The 200-mile exclusive economic zone is where the state has the right to exploit and develop the resources in the sea. The 200-NM continental shelf is where the state can exploit the resources all the way down to the seabed. According to Bensurto, these various maritime zones represent an additional 93 million hectares of water that are the responsibility of the Philippine government.

    “When your territory is confused and your baseline is confused, it is also confusing to your law-enforcement agencies. In a contiguous zone, it’s a quarantine and immigration area, if you don’t know where that line is, you don’t know when to shoot a ship and when not to shoot a ship,” Bensurto explained. “The whole point is to harmonize the [baselines] law with the Unclos.”  

    Consensus on baseline

    Last December CMOA’s member-agencies agreed to adopt the position that the country’s baseline would be the lines enclosing the main archipelago (see CMOA illustration). The KIG, as well as Scarborough Shoal, would be treated as “regimes of islands” that are part of Philippine territory but outside the baseline. Besides, even if the KIG and Scarborough Shoal are not within Philippine baselines, they will still form part of the country’s extended continental shelf. The KIG is considered part of Palawan province and are part of Philippine territory by virtue of Presidential Decree 1596.

    Whatever moves the government makes on the KIG and Scarborough Shoal, however, it would have to take into account neighboring countries, which also consider the islands part of their own territories or continental shelves. Hence, alongside the scientific and legislative efforts must come diplomatic negotiation.

    Bensurto pointed out that the filing of a claim with the CLCS will not settle territorial disputes. In fact, the UN body will not rule on a claim if it involves disputed territory. Suzette Suarez, formerly with UP-IILS and now with the CLCS, agreed with Bensurto: “The CLCS will not examine and qualify a submission by any state in cases where a land or maritime dispute exists unless there is prior consent given by all states that are parties to the dispute.”

    Suarez added: “If the Philippines claims at least 200 NM of continental shelf, it will already stand to have overlaps in some areas of the continental shelf with Palau, Indonesia, Malaysia, Brunei, Vietnam, China [and/or Taiwan] and Japan.”

    In the KIG, the issue is not one of overlapping continental shelves between adjacent or opposite states, but a territorial dispute among the claimant states. The same is true for Isla Bajo de Masinloc (Scarborough Shoal, which is disputed by the Philippines, China and Taiwan). Since Benham Rise is on the Pacific side of the Philippines, which is without any opposite state within 400 NM, it will stand to have no issue of overlap.

    “The government must settle conflicts of interest with other states,” said the late legal luminary and UP law professor Haydee Yorac in a roundtable discussion on the Philippines’ maritime jurisdictions in 1991. “As good fences make good neighbors, treaties and conventions which establish clear boundaries of power and operation will minimize interstate disputes.” 

    By Luz Rimban, Booma Cruz, Yvonne Chua, Ellen Tordesillas, Chit Estella and Jennifer Santiago

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