Chinese, Philippines Navies in "Standoff" at South China Sea; Coming Crisis following situation (New posts appear below for the next several hours)

The Philippines and China agreed to resolve an ongoing naval standoff diplomatically, but neither side was ready to back down Wednesday in the most dangerous confrontation in the disputed South China Sea in years.

Foreign Secretary Albert Del Rosario said he warned Chinese Ambassador Ma Keqing that the Philippines would defend itself if provoked. At their meeting, both insisted the Scarborough Shoal location was part of their own country's territory.

Despite the impasse, "we resolved to seek a diplomatic solution to the issue," Del Rosario told a news conference.

"Nobody will benefit if violence breaks out there," President Benigno Aquino III said.

The Philippine government said its navy tried to detain Chinese boats fishing in its waters, but was stopped by two Chinese surveillance craft. The Chinese Embassy accused the Philippine warship of harassing the fishermen.

The South China Sea is home to a myriad of competing territorial claims, most notably the Spratly Islands south of the shoal, that are believed to be in rich in oil and gas. The region is also prime fishing ground and one of the world's busiest sea lanes.

Both China and the Philippines flexed their muscles Wednesday. Del Rosario said that he warned China's ambassador that "if the Philippines is challenged, we are prepared to secure our sovereignty." more