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By Stuart Grudgings and Prak Chan Thul

PHNOM PENH, April 4 (Reuters) – The Philippines claimed

progress on Wednesday in persuading Southeast Asian leaders to

present a united front to China in a festering maritime dispute,

but the region remains divided over how to tackle its biggest

security challenge.

The 10-member Association of South East Asian Nations

(ASEAN) is under growing pressure to resolve the dispute

following a series of naval clashes over the energy-rich

maritime region claimed by China.

But progress has been slowed by the group’s principle of

consensus decision-making and by the heavy economic influence

that China has over some countries, including this year’s ASEAN

chair host, Cambodia.

China, Taiwan, Brunei, Malaysia, the Philippines and Taiwan

have conflicting claims over the Spratly Islands, an area

believed to have rich deposits of oil and gas. It is also a rich

fishing ground.

The stakes have risen sharply over the past year as the

United States has refocused military attention on Asia and

strengthened its strategic alliance with the Philippines.

A statement by ASEAN following a two-day leaders’ summit in

Phnom Penh barely mentioned the South China Sea dispute, saying

only that the leaders had reaffirmed a commitment to

implementing a declaration signed in the same city 10 years ago.

China has agreed to work with ASEAN on formulating a binding

“code of conduct” on naval activities, but the region is divided

over whether Beijing should take part in talks from the

beginning or only join after ASEAN agrees on the fundamentals.

Philippine President Benigno Aquino had requested that the

group agree to “ASEAN centrality” by setting out the code before

entering into negotiations with China.

It was unclear whether he had been successful. Aquino’s

political affairs adviser issued a statement in Manila saying

there was a consensus among ASEAN states to support Manila’s

“multilateral” recommendations.

“It’s a welcome development,” the statement said.

But a Philippine diplomat involved in the negotiations told

Reuters that the Philippines was frustrated by Indonesia’s

rejection of any conflict resolution mechanism in the code. The

diplomat added that other countries, including Cambodia, were

either lukewarm to the proposal or had ignored it altogether.

A series of naval flashpoints over the past year, as China,

the Philippines, and Vietnam push ahead with plans to develop

oil and gas fields, has highlighted the inadequacy of the ASEAN

approach.

Indonesian Foreign Minister Marty Natalegawa said ASEAN

would formulate a code of conduct but with “constant

communication through the ASEAN-China framework”.

“The big picture is the one that must not be lost,” he told

reporters. “Namely that in contrast to the recent past, now we

have a situation where all are basically rushing and competing

to get the Code of Conduct off the ground.”

Cambodia’s tenure as chair of ASEAN this year adds to doubts

that the group will be able to formalise the code of conduct,

which the Philippines and Vietnam are keen to achieve this year.

Slow progress on agreeing to the rules highlights a divide

within the group as China makes its rising economic and

diplomatic clout felt in mainland countries such as Cambodia and

Laos. Chinese President Hu Jintao visited Cambodia days before

the ASEAN summit, raising suspicions that Beijing was seeking to

influence talks on the South China Sea.

Cambodian Prime Minister Hun Sen denied China had asked for

any assistance on the dispute, calling it a “serious

misunderstanding”.

“Cambodia is not goods to be bought by anyone,” he said at a

closing news conference.

(Additional reporting by Manuel Mogato in Manila; Editing by

Nick Macfie)