ASEAN agrees to guidelines on South China Sea dispute

SHANE MCLEOD: South East Asian leaders meeting in Bali are struggling to deal with disputes in the South China Sea.

While the region's powers have a code of conduct to try and deal with the volatile situation it may not be enough to deal with rising tensions.

Helen Brown reports from Bali where ASEAN foreign ministers are meeting.

HELEN BROWN: It was always going to be a key issue.

China's stronger stance on its claims to the South China Sea have resulted in escalating clashes over the past few weeks with Vietnam. And just this week the Philippines hinted at taking China to an international court.

But now there's been some headway with China and ASEAN agreeing to guidelines that would go towards implementing a code of conduct.

And while the deal was lauded the Philippines secretary of foreign affairs Albert Del Rosario was candid about its lack of clout.

ALBERT DEL ROSARIO: So that's a step forward. But it's not, there are more steps to be taken I think to be able to add teeth to what we tried to do yesterday and today.

HELEN BROWN: ASEAN devised the code 10 years ago as a way to deal with the competing claims of several countries.

But since then not a lot has happened, leading Indonesia's president Susilo Bambang Yudhoyono to this week publicly lament the snail's pace.

As the current chair of ASEAN Indonesia is keen to create real momentum. And prior to this week Indonesia's foreign affairs minister Marty Natalegawa was keen to send a message that compromise could be found.

MARTY NATALEGAWA: That is why when people get all tied up or all excited as if they are extreme choices. I'm trying to suggest they are not extreme choices.

HELEN BROWN: The area is a major seafaring route and is thought to hold rich reserves of oil and gas. It's also a vital fishing ground.

Dr Ron Huisken from the Australian National University's Strategic Studies Centre says dealing with the issue is pivotal to the regional grouping's credibility.

RON HUISKEN: It is very much a live issue. It has the potential at least to become one of most inflammatory issues in the Western Pacific. If it cannot be addressed by the ASEAN regional forum then people will ask questions about the point of holding this forum.

HELEN BROWN: And as the Philippines lead politician pointed out, China is not easy making it easy to negotiate.

ALBERT DEL ROSARIO: So you're signing an agreement with China, it's supposed to be a code of conduct, but China is saying on the other hand that they own everything.

HELEN BROWN: Last year the United States secretary of state Hilary Clinton staked her nation's claim in the debate. It was a move that surprised and also angered Beijing. And even though some progress has been made at this ASEAN summit that's not likely to quell talk over the next few days.

Dr Ron Huisken again:

RON HUISKEN: The United States hasn't re-entered the debate simply as an act of kindness, if you like, to its regional friends and allies. It has very substantive issues at stake.

HELEN BROWN: The guidelines which are expected to be signed-off by the respective ministers today might have taken some heat out of the debate.

But it remains to be seen how much effect the move will have in the deep, disputed waters themselves.

SHANE MCLEOD: The ABC's Helen Brown reporting from Bali.