Colonization
The first possible recorded human interaction with the Spratly Islands dates back as far as 3BC. This is based on the discovery that Chinese and Old Champa kingdom fishermen mainly from districts of Hainan and Guangdong or Old Champa kingdom had been visiting the Spratly Islands, together with other South China Sea Islands for fishing annually. During the Qing Dynasty of China, the islands were sporadically visited throughout the nineteenth and early twentieth centuries by mariners from different European powers (including either Richard Spratly or William Spratly, after whom the island group derives its most recognisable English name), but these nations showed little interest in the islands. Most of the English names for the islands, isles and reefs were from the Chinese or Vietnamese fishermen. German boats surveyed in 1883, the Spratly Islands and Paracel Islands but withdrew the survey eventually after receiving protests from the Qing Dynasty.
Ancient Chinese geographical maps record these islands as Chinese territory.
Ancient Vietnamese geographical maps record Bãi Cát Vàng (Golden Sandbanks, as claimed today by Vietnam referring to both Paracel and Spratly Islands) which lies near the Coast of the central Vietnam as early as the 17th century. In Phủ Biên Tạp Lục (Frontier Chronicles) by the scholar Le Quy Don, Hoàng Sa and Trường Sa were defined as belonging to Quảng Ngãi District. He described it as where sea products and shipwrecked cargoes were available to be collected. Vietnamese text written in the 17th century referenced government-sponsored economic activities during the Le Dynasty, 200 years earlier. The Vietnamese government conducted several geographical surveys of the islands in the 18th century.
In the 1930s, France claimed the Spratly and Paracel Islands on behalf of its then-colony Vietnam. It occupied a number of the Spratly Islands, including Itu Aba, and built weather stations on two, and administered them as part of French Indochina. This occupation was protested by the Chinese Nationalist government because France admitted that they found Chinese fishermen there when the French war ships visited the nine islands. The Chinese fishermen tore the French flag after the ships left the islands. Following that, Japan occupied some of the islands during World War II, and used the islands as a submarine base for the occupation of Southeast Asia. During the occupation, these islands were called Shinnan Shoto (新南諸島), literally the New Southern Islands, and put under the governance of Taiwan together with the Paracel Islands (西沙群岛). Following the defeat of Japan, the Kuomintang (nationalist) claimed the whole Spratly Islands (including Itu Aba) and accepted the Japanese surrender on the islands. Japan renounced all claims to the islands in the 1951 San Francisco Peace Treaty. In the treaty with Republic of China, Japan again renounced all claims to the islands together with the Paracels, Pratas & other islands captured from China. The Kuomintang withdrew from the Spratly and Paracel Islands when they were defeated by the forces of the opposing Communist Party of China in 1949.
When the French left Vietnam, the naval units of the Vietnamese government took over in Truong Sa.
Political dispute
The first indication that the Spratly Islands were more than merely a hazard to shipping was in 1968 when oil was discovered in the region. The PRC’s Geology and Mineral Resources Ministry has estimated that the Spratly area holds oil and natural gas reserves of 17.7 billion tons (1.60 × 1010 kg), as compared to the 13 billion tons (1.17 × 1010 kg) held by Kuwait, placing it as the fourth largest reserve bed in the world. Naturally, these large reserves assisted in intensifying the situation and propelled the territorial claims of the neighbouring countries. On 11 March 1976, the first major Philippine oil discovery occurred off the coast of Palawan, within the Spratly Islands territory, and these oil fields now account for fifteen percent of all petroleum consumed in the Philippines.
The claimants to sovereignty have not awarded offshore concessions in the islands for fear of provoking an immediate clash. Foreign companies have not made any commitments to explore the area until the territorial dispute is settled or the claimants come to terms on joint development.
An additional motive is the region's role as one of the world's most productive areas for commercial fishing. In 1988, for example, the South China Sea accounted for eight percent of the total world catch, a figure which has certainly risen. The PRC has predicted that the South China Sea holds combined fishing and oil and gas resources worth one trillion dollars. There have already been numerous clashes between the Philippines and other nations — particularly the PRC — over foreign fishing vessels in its EEZ (Exclusive Economic Zone) and the media regularly report the arrest of Chinese fishermen.
The region is also one of the busiest shipping lanes in the world. During the 1980s, at least two hundred and seventy ships passed through the Spratly Islands region each day, and currently more than half of the world’s supertanker traffic, by tonnage, passes through the region’s waters every year. Tanker traffic through the South China Sea is over three times greater than through the Suez Canal and five times more than through the Panama Canal; twenty five percent of the world’s crude oil passes through the South China Sea.
There have been suggestions that the PRC has annexed and occupied islands not for resource exploitation but rather for surveillance. For example, Mischief Reef would be an ideal site from which to observe United States naval vessels traveling through western Philippine waters. The PRC’s occupation of the islands may be also be aimed at opposing the ROC rather than the Philippines as the Spratlys lie across water essential to the ROC. It could also simply be part of the PRC's efforts to announce its solidifying regional hegemony.
There have been occasional naval clashes over the Spratly Islands. In 1974, after South Vietnam had allowed Western oil companies to explore the Paracel Islands, the PRC reacted by seizing control of them following a short naval battle; in 1988, China similarly annexed another six islets in a region otherwise controlled by Vietnam. An incident involving a civilian vessel occurred on April 10, 1983, when a German yacht was fired on and sunk. No responsibility has yet been indicated for this action.
In response to growing concerns by coastal states regarding encroachments by foreign vessels on their natural resources, the United Nations convened the United Nations Convention on the Law of the Sea (UNCLOS) in 1982 to determine the issue of international sea boundaries. In response to these concerns, it was resolved that a coastal state could claim two hundred nautical miles of jurisdiction beyond its land boundaries. However UNCLOS failed to address the issue of how to adjudicate on overlapping claims and so the future of the islands remains clouded.
In 1984, Brunei established an exclusive fishing zone encompassing Louisa Reef in the southern Spratly Islands, but has not publicly claimed the island. Then, in 1988, the PRC and Vietnam again clashed at sea over possession of Johnson Reef in the Spratlys. Chinese gunboats sank Vietnamese transport ships supporting a landing party of Vietnamese soldiers. The two countries normalized relations in 1991 and President Jiang Zemin subsequently made two trips to Vietnam, but the two nations remain at loggerheads over the Spratlys' future.
In 1992, the PRC and Vietnam granted oil exploration contracts to U.S. oil companies that covered overlapping areas in the Spratlys; and in May 1992, the China National Offshore Oil Corporation (CNOOC) and Crestone Energy (a U.S. company based in Denver, Colorado) signed a cooperation contract for the joint exploration of the Wan'an Bei-21 block, a 25,155 km2 section of the southwestern South China Sea that includes Spratly Island areas. CNOOC was to provide seismic and other data regarding the seabed in the contract area, while Crestone agreed to cover all costs and conduct follow-up seismic surveys and drilling in the area. The contract was extended in 1999 after Crestone failed to complete the exploration. Part of the Crestone's contract covered Vietnam’s blocks 133 and 134, where PetroVietnam and ConocoPhillips Vietnam Exploration & Production, a unit of ConocoPhillips, agreed to evaluate prospects in April 1992. This led to a confrontation between China and Vietnam, with each demanding that the other cancel its contract.
Further escalation occurred in early 1995 when the Philippines discovered a primitive PRC military structure on Mischief Reef, one hundred and thirty nautical miles off the coast of Palawan. This prompted the Philippines government to issue a formal protest over the PRC occupation of the reef and the Philippine navy to arrest sixty-two Chinese fishermen at Half Moon Shoal, eighty kilometres from Palawan. A week later, following confirmation from surveillance pictures that the structures were of military design, then Philippine President Fidel Ramos ordered military forces in the region strengthened. The PRC had claimed that the structures were shelters for fishermen.
Following this dispute an ASEAN-brokered agreement was reached between the PRC and ASEAN member nations whereby a nation would inform the others of any military movement within the disputed territory and that there would be no further construction. The agreement was promptly violated by the PRC and Malaysia. Claiming storm damage, seven PRC naval vessels entered the area to repair "fishing shelters" in Panganiban Reef. Malaysia erected a structure on Investigator Shoal and landed at Rizal Reef, both places situated within the Philippines EEZ. In response the Philippines lodged formal protests, demanded the removal of the structures, increased naval patrols in Kalayaan and issued invitations to American politicians to inspect the PRC bases by plane.
By 1998, as the PRC continued its creeping annexation of the islands, placing sovereignty markers or buoys on First and Second Thomas Shoals, Pennsylvania Shoal, Half Moon Shoal and the Sabina and Jackson atolls, the Spratly Islands area was listed as one of eight flashpoints for conflict in the world. By late 1998, PRC bases had surrounded the Philippines' outposts. A British Royal Navy Commander analyzed pictures of the Chinese structures and announced that PRC "appeared to be preparing for war". The relationship between Manila and Beijing had deteriorated to the point where war seemed imminent.
In the early 21st century, as part of foreign policy initiatives known as the "new security concept" and "China's peaceful rise", the PRC became much less confrontational about the Spratly Islands. The PRC recently held talks with ASEAN countries aimed at realizing a proposal for a free trade area between the ten countries involved. The PRC and ASEAN also have been engaged in talks to create a code of conduct aimed at easing tensions in the disputed islands. On 5 March 2002, an agreement was reached, setting forth the desire of the claimant nations to resolve the problem of sovereignty "without further use of force". In November 2002, a Declaration on the Conduct of Parties in the South China Sea was signed, easing tensions but falling short of a legally-binding code of conduct.
