Philippine president sets positive tone ahead of visit

MANILA, the Philippines - Sino-Philippine relations will not be sabotaged by the dispute over the South China Sea, Philippine President Benigno Aquino III said on Friday ahead of a state visit to China next week.

"We want to strengthen bilateral relations, trying to remove any situation that will induce conflicts between the two countries," Aquino said in a joint interview with Chinese media at the Malacanan Palace.

Aquino is scheduled to pay his first-ever state visit to China from Aug 30 to Sept 3, heading a 300-strong delegation, most of whom are representatives of leading Philippine companies.

Sino-Philippine relations have been tested since Aquino took office in June 2010.

Aquino said China was the first country to invite him for a state visit on the day of his inauguration but "unfortunately we have not been able to act upon it prior to this time".

Aquino's visit will take place shortly after the first anniversary of the botched rescue of Hong Kong hostages in Manila, and a flare-up in disputes in the South China Sea that has strained bilateral ties this year.

China insists indisputable sovereignty over the South China Sea Islands and surrounding waters, while the Philippines, Brunei, Malaysia and Vietnam all lay claim to some islands and reefs in the area.

Aquino has said his nation's military would play a more prominent role in the South China Sea as the Philippine navy's newest warship sailed into Manila Bay from the United States on Tuesday.

"Both countries want to resolve it (the South China Sea issue) in a peaceful manner," Aquino said. "I don't see why the relationship will be sabotaged."

During his five-day visit, Aquino will meet top Chinese leaders, attend three business forums in Beijing, Shanghai and Xiamen, a southeast coastal city where his ancestors came from.

China is the third-largest trading partner to the Philippines and fourth in terms of overseas development assistance.

"Mutually increasing trade results to an increase of the living standard of both of our peoples, and we want to do everything possible to further increase that," Aquino said.

"I also believe that increasing prosperity to both our peoples leads to a stable relationship, which is a goal that every country would want to achieve," he said.

According to the Manila Bulletin, a major Philippine newspaper, a landmark trade and development agreement with China that will generate $60 billion in investments for the Philippines in the next five years will be signed by the two countries' presidents during Aquino's visit.

Philippine Foreign Affairs Undersecretary Cristina Ortega said on Wednesday that the five-year accord covers various infrastructure projects through a public-private partnership in mining, energy, and tourism sectors, according to the newspaper.

Ortega disclosed that during Aquino's visit, Chinese businessmen will reaffirm $1.5 billion in actual investments. The Philippine president will also sign cooperative agreements in sectors including trade, tourism, media, sports and culture.

Eduardo C. Tadem, Professor of Asian Studies University of the Philippines Diliman, said the visit "will mostly be ceremonial and an attempt to rebuild fences in the light of last year's bungled hostage crisis in Manila and this year's South China Sea exchanges."

"It will take more than a single state visit, however, for Philippine-Chinese relations to be made more stable," Tadem said.