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Involved in complex dispute with China, Malaysia, Taiwan, Vietnam and possibly Brunei over the Spratly Islands, known locally as the Kalayaan (Freedom) Islands, the 2002 "Declaration on the Conduct of Parties in the South China Sea," has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo based on the Sultanate of Sulu's granting the Philippines Government power of attorney to pursue a sovereignty claim.
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