(Updating with inputs from joint statement)

India extends USD 500 mn to Vietnam to bolster defence ties From Jaishree Balasubramanian Hanoi, Sep 3 (PTI) India today extended a USD 500 millionline of credit to Vietnam to deepen their defence cooperationand signed 12 agreements including a deal to constructoffshore patrol boats, amid China’s muscle flexing in thedisputed South China Sea and "emerging regional challenges". Prime Minister Narendra Modi, who held wide-ranging talkswith his Vietnamese counterpart Nguyen Xuan Phuc here, saidthe two countries have decided to elevate their strategic tiesto a Comprehensive Strategic Partnership to provide it a newmomentum. "Our decision to upgrade our Strategic Partnership to aComprehensive Strategic Partnership captures the intent andpath of our future cooperation. It will provide a newdirection, momentum and substance to our bilateralcooperation," said Modi, who arrived here yesterday on hismaiden visit to this key south east Asian nation. Vietnam had earlier Comprehensive Strategic Partnershiponly with Russia and China. "I am also happy to announce a new Defence Line of Creditfor Vietnam of USD 500 million for facilitating deeper defencecooperation," Modi said after the signing of the agreements. The 12 agreements were signed in a wide range of areascovering defence, IT, space, cyber security and sharing whiteshipping information in presence of Modi and Phuc. "The range of agreements signed just a while ago point tothe diversity and depth of our cooperation," he said, addingthe agreement on construction of offshore patrol boats is oneof the steps to give concrete shape to the bilateral defenceengagement. Later in a joint statement, both India and Vietnam alsocalled for "peaceful" resolution of the South China Sea issueand "exercise self-restraint". They also urged all parties toshow "utmost respect" for the United Nations Convention on theLaw of the Sea (UNCLOS). Both sides called on "all states to resolve disputesthrough peaceful means without threat or use of force andexercise self-restraint in the conduct of activities thatcould complicate or escalate disputes affecting peace andstability, respect the diplomatic and legal processes, fullyobserve the Declaration on the conduct of parties in the SouthChina Sea (DOC) and soon finalise the Code of Conduct," thejoint statement said. "They also recognised that the sea lanes of communicationpassing through the South China Sea are critical for peace,stability, prosperity and development. Vietnam and India, asState Parties to the UNCLOS, urged all parties to show utmostrespect for the UNCLOS, which establishes the internationallegal order of the seas and oceans," it said. China is involved in a raging dispute with thePhilippines, Vietnam, Taiwan, Malaysia and Brunei overownership of territory in the South China Sea (SCS), a busywaterway through which India’s 50 per cent trade passes.(MORE) JB MP ABH ZH AKJSAI