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MANILA (Reuters) - The Philippines is exploring the possibility of converting two islands that were once part of a U.S. navy base into a military reservation, its defence department said on Thursday, a move to bolster its presence in waters facing the South China Sea.
Grande and Chiquita islands are located in Subic Bay, which was once a sprawling U.S. base until the Philippines rejected a lease extension in 1991. The U.S. military pulled out a year later and the strategically located facility has since been transformed into a freeport zone.
The islands' conversion could help secure the freeport and an international airport and support the Philippine navy's development of a base in the area, the defence department said.
"Grande Island...is a strategic vantage point with a clear view of key sea lanes in the West Philippine Sea, including Bajo de Masinloc," the defence department said, referring respectively to the Philippine exclusive economic zone in the South China Sea and the hotly disputed Scarborough Shoal.
Upholding the Philippines' sovereign rights in the South China Sea has been a top priority of the administration of President Ferdinand Marcos Jr, which has locked horns repeatedly with China over the conduct and constant presence of Beijing's coast guard and fishing militia near disputed features in Manila's EEZ.
Tensions have escalated since Marcos pursued greater engagement with defence treaty ally the United States, including training exercises with a U.S. Typhon missile system, the deployment of which has angered Beijing.
The announcement came a day after the arrest of a Chinese national, five other foreigners and two Filipinos on Grande island for allegedly violating the country's securities law and cybercrime law.
They were suspected by police and law enforcement authorities of involvement in espionage and kidnapping connected with offshore gaming operations that were outlawed last year.
(Reporting by Mikhail Flores; Editing by Martin Petty)
