"Disagreements over territorial claims and the appropriate use of the maritime domain appear to be a growing challenge to regional stability and prosperity," Gates said, reflecting friction with China.

In a statement at high-level Asian security talks in Hanoi, Gates did not mention China but endorsed an international approach to solving maritime disagreements -- an approach Beijing opposes -- and he insisted the US Navy would not back away from sailing into Pacific waters.

The Pentagon chief stopped short of direct criticism of China but his words underscored a mounting rivalry with China, as Beijing flexes its newfound military and economic might in a region long dominated by the United States.

Gates, at the ASEAN-led conference chaired by Vietnam, sought to reassure smaller countries in Southeast Asia concerned about China's tactics on maritime issues.

However, US officials said China's decision to attend Tuesday's conference was in itself a promising sign, suggesting Beijing wanted to reduce tensions and had not closed the door to a regional diplomatic approach to the maritime issue.

Chinese Defence Minister Liang Guanglie told the meeting his country was open to regional security cooperation. The new forum, the highest-level regional defence talks ever held, "has appropriately set stronger mutual trust and understanding as one of its basic objectives," he said.

China is involved in a series of long-running disputes with countries in the region over strategically-important or potentially resource-rich islands.

One major source of friction is the Paracel and Spratly island chains which straddle busy shipping lanes and are claimed by China, as well as by Vietnam, Taiwan, Malaysia, Brunei, and the Philippines, either in whole or in part.

Washington did not take sides in the disputes in the South China Sea but "competing claims should be settled peacefully, without force or coercion, through collaborative diplomatic processes," and under international law, Gates said.

Restating US policy, Gates praised members of the Association of Southeast Asian Nations (ASEAN) for trying to agree on a "code of conduct" for the South China Sea and said "we stand ready to help facilitate such initiatives."

China has accused Washington of meddling in the issue and said there is no need for a multilateral deal, possibly mediated by US officials.

Beijing has adopted a more assertive stance in the Pacific as it expands its naval reach with new ships and submarines. It has also complained about US warships sailing in the South China Sea and conducting joint exercises with South Korea in the Yellow Sea.

But Gates repeated US vows to keep operating in what the American military considers international waters.

"The United States has always exercised our rights and supported the rights of others to transit through, and operate in, international waters," he said in the statement.

"This will not change, nor will our commitment to engage in exercises and activities together with our allies and partners."

US exercises represented "a routine and critical component of demonstrating our commitment to the region, maintaining peace and stability, and promoting freedom of navigation," he added.

Gates' statement came a day after he met his Chinese counterpart for the first time in months in a bid to mend military ties.

In January, Beijing broke off military relations in protest at US arms sales to Taiwan and Chinese officials said Monday the issue remained the main hurdle to shoring up defence ties.

Gates voiced frustration at Beijing's stance, saying it was largely a political issue that should not be allowed to derail a crucial dialogue between military leaders.

earlier related report
China and Japan move to prevent maritime conflicts
Hanoi (AFP) Oct 11, 2010 - The defence ministers of China and Japan agreed Monday to work together to prevent conflicts at sea after a damaging diplomatic row set off by a collision in disputed waters last month, media reports said.

The deal emerged at a meeting in the Vietnamese capital ahead of the highest-level security talks ever held in Asia, as Washington and Tokyo look to improve fragile military ties with an increasingly assertive Beijing.

Japan's Jiji Press said Japanese Defence Minister Toshimi Kitazawa and his Chinese counterpart Liang Guanglie agreed during their Hanoi talks to set up a liaison system to try to avert future maritime confrontations.

It was the first meeting between them since the feud erupted over Tokyo's detention of a Chinese fishing boat captain whose vessel collided with Japanese coastguard ships near disputed islands in the East China Sea in September.

The encounter came ahead of the first-ever talks between defence ministers of the Association of Southeast Asian Nations (ASEAN), their Asian partners, and the United States which are being held in Hanoi on Tuesday.

Kitazawa told Liang it would be "unproductive" to discuss in Hanoi the islands at the centre of their row but the two agreed that both countries will enhance their "mutually beneficial strategic partnership", Jiji said.

Beijing broke off all high-level contact with Tokyo last month as relations between the two Asian powerhouses plummeted to their lowest in years, but the neighbours have since sought to repair ties.

Jiji said Liang told Kitazawa: "I am grateful that the row was dealt with from the perspective of safeguarding our countries' relations."

China's state Xinhua news agency said the two "held a conversation" on the sidelines of the ASEAN meeting which came after brief talks last week between Japanese Prime Minister Naoto Kan and Chinese Premier Wen Jiabao in Brussels.

The US and Chinese defence chiefs are also due to meet in Hanoi Monday with US officials saying the talks offered Washington a chance to improve fragile relations with Beijing's military and make the case for more "reliable" dialogue.

The scheduled talks between Liang and US Defence Secretary Robert Gates, also on the sidelines of the ASEAN conference, are the first between the top military officials in a year and mark the latest attempt by Washington to forge a security dialogue with Beijing.

China has repeatedly broken off ties with the American military because of its dismay with US policies, including arms sales to Taiwan, much to the frustration of US officials who argue a more regular dialogue would reduce tensions.

US officials played down expectations for the meeting, saying it was merely one step in a broader, delicate effort that would take time to pay off.

The talks come as China's regional assertiveness causes unease among its Asian neighbours as well as the United States.

Last month a Japanese defence paper voiced concern over China's growing military muscle, after a US Defence Department report in August said China was ramping up investment in an array of areas including nuclear weapons, long-range missiles, submarines, aircraft carriers and cyber warfare.

The report predicted Beijing may step up patrols in the South China Sea, where China claims sovereignty over the Spratly and Paracel archipelagos, as do Vietnam and other ASEAN countries.

Gates called Monday for an international approach to resolving territorial disputes in the Pacific, despite China's opposition to any multilateral deal brokered by Washington.

In remarks that appeared aimed at China, Gates said that "increasingly, we find that relying exclusively on bilateral relationships is not enough -- we need multilateral institutions in order to confront the most important security challenges in the region."

China favours handling the South China Sea issue bilaterally with individual claimants, while ASEAN members have called for negotiating a "code of conduct" for all nations.

Australia, India, South Korea, New Zealand and Russia will also join the 18-nation defence talks on Tuesday.

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