THE PERPLEXING DISPUTE OVER OIL

Territorial disputes in the South China Sea have been exacerbated by t he great potential for oil reserves in the area, The Spratly Islands h ave been a major object of these disputes. While China and other count ries have softened their positions to a degree, questions remain regar ding how each country would cooperate in oil exploration in this area. The ultimate resolution of the dispute over the Spratly Islands could set an example for the future handling of rival claims, but whether t he approach will be one of cooperation or conflict is unclear. (C) 199 8 Elsevier Science Ltd. All rights reserved.