Unof?cial translation 1 No. (13) The Embassy of the People's Republic of China in the Republic of the Philippines presents its compliments to the Department of Foreign Affairs of the Republic of the Philippines and, with reference to the latter?s Note Verbale No. 13-02] 1 dated 22 January 2013, has the honor to state the following: The Position of China on the South China Sea issues has been consistent and clear. China has indisputable sovereignty over the Nanhai Islands and their adjacent waters. At the core of the disputes between China and the Philippines in the South China Sea are the territorial disputes over some islands and reefs of the Nansha Islands. The two countries also have overlapping jurisdictional claims over parts of the maritime area in the South China Sea. The direct cause of these disputes has been the illegal occupation by the Philippines of some islands and reefs ol? China's Nansha Islands. China has been firmly opposed to such illegal occupation. The territorial disputes between China and the Philippines are still pending and unresolved, but both sides have agreed to settle the disputes through bilateral negotiations. By initiating arbitration proceedings, the Philippines runs counter to the agreement between the two countries, and also contravenes the principles and spirit of the Declaration on the Conduct of Parties in the South China Sea (DOC), and particularly ?to resolve their territorial and jurisdictional disputes by peaceful friendly consultations and negotiations by sovereign states directly concerned". The Noti?cation and Statement of Claim (hereinafter referred to as "Noti?cation") attached to Note Verbale No. 13-0211 contains grave errors both in fact and in law, and includes many false accusations against China. At some places, the Noti?cation even seriously violates the "One China? principle, undermining the political foundation of? the bilateral relations between China and the Philippines. China firmly Opposes to this. China therefore rejects and returns the Philippines' Note Verbal No. 13?02 11 and the attached Notification. China has been committed to resolving disputes peacefully through bilateral negotiation, and has made every effort to maintain stability and to promote regional cooperation in the South China Sea. In March 2010, China made a formal proposal to the Philippines on establishing a bilateral regular consultation mechanism on maritime issues, and China has also repeatedly proposed to the Philippines to resume the operation of the Con?dence Building Measures Mechanism (CBMs) as established between the two countries. The Philippines has failed to respond to the proposals mentioned above. China hopes that the Philippines will revert to the right track of settling the disputes through bilateral negotiations. The Embassy of the People's Republic of China avails itself of this opportunity to renew to the Department of Foreign Affairs of the Republic of the Philippines the assurances of its highest consideration. Makati, 19 February 2013 Department ofForeign Affairs Republic of the Philippines Pasay City, Manila ?w%wm?wum%w 1%733i?l?rm w?a?d 1130?91 E1 ZZ I @9103 %6?03?(?10z