PHNOM PENH, June 6 -- Cambodian Deputy Prime Minister Hor Namhong said Monday that the territorial claims in the South China Sea should be resolved through negotiations by parties directly concerned.

Speaking to reporters after meeting with Chinese Vice Foreign Minister Liu Zhenmin, Hor Namhong said, "I had informed the Chinese side that the territorial claims in the South China Sea should be resolved through negotiations by parties directly concerned."

Commenting on the Philippines' unilateral attempt at arbitration over South China Sea, Hor Namhong said China has sufficient legal base to neither accept nor participate in the arbitration.

"The 1982 UN Convention on the Law of the Sea (UNCLOS) has not specifically stated the territorial claims in the South China Sea," he said, noting that the UNCLOS has stated general sea law only.

He further said the UNCLOS allows a state party to made statements that it does not accept compulsory arbitration with respect to disputes concerning maritime delimitation.

Hor Namhong highly valued China's grant aid and concessional loan to Cambodia, saying that China's assistance was essential for socio-economic development.

He also admired Chinese enterprises for having invested in Cambodia, particularly in hydropower plants, which have greatly contributed to lowering electricity prices in Cambodia.

According to the deputy prime minister, Chinese investors have invested more than 2 billion U.S. dollars in building seven hydropower plants in the Southeast Asian country and so far, six of them have been operational.