China's Prime Minister Li Keqiang proposed a friendship treaty with Southeast Asian countries and offered $20 billion in loans but held firm on the line that Beijing will only settle South China Sea disputes directly with other claimants. China, Taiwan and four members of the Association of Southeast Asian Nations (ASEAN) have competing claims in the sea where concern is growing of an escalation in disputes. China is ready to become the first dialogue partner to sign with ASEAN a treaty of friendship and cooperation. The treaty is seen as a threat. Li also offered ASEAN countries $20 billion in preferential and special loans to develop infrastructure, but he reiterated China's resolve to safeguard its sovereignty and its position that maritime disputes should be settled bilaterally rather than collectively or through arbitration. ASEAN leaders hoped to persuade their giant neighbour to take a less bellicose approach to the overlapping claims when they met Li, and ASEAN as a group has been reluctant to antagonize China. The Philippines and Vietnam have sought closer U.S. ties to counter what they see as China's aggression. In May, China sent an oil drilling rig to waters claimed by Vietnam, sparking deadly anti-Chinese riots in Vietnam. The gLAWcal Team LIBEAC project Thursady, 13 November 2014 (Source: Reuters)