China, Vietnam leaders discuss trade and disputed islands (Roundup)

Beijing - Chinese Premier Wen Jiabao met with Vietnamese Prime Minister Nguyen Tan Dung to discuss trade, economic cooperation and a territorial dispute in the South China Sea, China's official Xinhua news agency reported Saturday. There was dialogue but no sign of a resolution on the three archipelagos that both countries claim ownership to there. 'Vietnam is willing to properly solve the South China Sea issue in the spirit of mutual respect and consultation,' Xinhua quoted Dung as saying late Friday when he met Wen on the southern Chinese island of Hainan, where both were attending the Bo'ao Forum for Asia, a regional economic meeting. Wen said China and Vietnam should safeguard stability in the area. China and Vietnam have long claimed ownership over the archipelagos in the South China Sea, including the Spratly Islands. The area is an important shipping thoroughfare and rich in natural resources. Territorial issues in the South China Sea have grown increasingly sensitive in recent months with China's decision to begin tourist visits to an island in the disputed Spratly archipelago, its patrols of the area, claims of violations of territorial waters and illegal fishing, a March visit by former Malaysian premier Abdullah Ahmad Badawi to two reefs of the Spratly Islands and Philippine President Gloria Macapagal Arroyo signing into law a bill laying claim to areas that included the Spratlys and the nearby Scarborough Shoal. Vietnam, Taiwan, China, the Philippines, Malaysia and Brunei each claim all or part of the Spratlys and the nearby Paracels, and all but Brunei have a military presence on one or more of the atolls. China's claim to sovereignty over most of the South China Sea is not recognized by other countries. On the economic front, Wen said China would like to work with Vietnam to strengthen future economic and trade cooperation and maintain growth of two-way trade. Dung indicated Vietnam is ready to sign a five-year economic and trade cooperation agreement. 'Chinese enterprises are welcomed to invest in Vietnam,' he was quoted as saying.