Australia to take no side in the dispute of South China Sea

Australia will take no side in the dispute between the Philippines and China on South China Sea islets, Prime Minister Julia Gillard said on Wednesday.

Philippines President Benigno Aquino began his Australian visit Wednesday and had talks with Gillard, which included the South China Sea dispute, a topic believed to be high on his agenda.

Gillard told Aquino that Australia does not take a position on the claims.

"Both leaders recognized the need for governments to exercise restraint and refrain from actions that could further increase tensions," they said in a joint statement after the talks.