Countrys embattled east. Chinese authorities are moving ahead with a project that has raised tensions in the south china sea. They say theyve completed the first stage of an Oil Drilling Operation near the paracel islands. The plan has triggered a standoff between china and vietnam. Both countries claim the islands. Officials with a unit of a staterun oil company say equipment is in place for the next stage. They say the second phase will be completed in august. Vietnamese Officials Say the areas within their countrys exclusive economic zone. Crews on fishing boats from the two countries have joined the standoff between government ships. Vietnam staterun tv says a chinese fishing ship rammed and sank a vietnamese fishing boetd on monday. But chinas official News Agency Says the vietnamese boat was harassing the chinese vetle. Xinhua says it capsized after colliding with a chinese boat. Japans defense minister says the leaders of pacific nations should Work Together to avoid trouble in