NEW DELHI: India and the USA on Wednesday discussed situation in the South China Sea region and measures that could lead to stability in the area with fresh reports of new artificial islands being built by China raising tensions in Southeast Asia.The matter was a key item on the agenda when US Defence Secretary Ashton Carter met External Affairs Minister Sushma Swaraj and National Security Adviser Ajit Doval here. Carter coming to India straight from Vietnam emphasized on the need for stability in the South China Sea as his Indian interlocutors stressed on freedom of navigation and right to oil exploration in the area, diplomatic sources said.The issue of stability in the Asia-Pacific region is emerging as strategic priority for both the USA and India in the backdrop of Joint Vision Statement issued during President Barack Obama's trip here last January. "…Regional prosperity depends on security. We affirm the importance of safeguarding maritime security and ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea. We call on all parties to avoid the threat or use of force and pursue resolution of territorial and maritime disputes through all peaceful means, in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea," affirmed the statement.Last Sunday addressing the annual press meet External Affairs Minister Sushma Swaraj pointed out that India has clarified on oil search in the South China Sea region indicating that Delhi will continue its exploration in the oil blocks offered by Vietnam. Hanoi has offered over five oil blocks to India off the coast of Vietnam. Officials in Delhi said that the Modi government is closely monitoring the ratcheting of tensions in Southeast Asia that have implications for India's economic and strategic interests in the backdrop of an active Act East Policy.Fresh tensions have arisen after China last Sunday strongly rejected U.S. criticism of its land reclamation activities in the South China Sea. Chinese Admiral Sun Jianguo told Shangri La Dialogue in Singapore that construction work is "justified, legitimate and reasonable," and that the projects are for the purpose of providing "international public services."The admiral, who is the deputy chief of staff of the People's Liberation Army asserted "there are no changes in China's claims in the South China Sea. Nor are there changes in China's position on the peaceful resolution of the relevant disputes through negotiation and consultation."ET is in possession of images, released by Philippines, of new construction activities by China in SCS. Construction of artificial islands in SCS, a major sea lane of communication in Asia has exacerbated tensions after Chinese territorial claims in the region since 2010.The comments from Sun raises eyebrows and leads to a conclusion China intends to militarize the disputed islands on which it is building, according to both Indian and US officials.The Chinese admiral's comments came a day after Carter slammed China for being "out of step" with international norms amid the unprecedented pace of island reclamation, saying "it is unclear how much farther China will go."The actions are increasing "the risk of miscalculation and conflict," Carter said in a speech Saturday at the Shangri-La Dialogue. Carter noted China has reclaimed over 800 hectares, more than all other claimants combined and has done so in only the last 18 months. In his subsequent visit to Vietnam the US Defence Secretary pledged $18 million to help Hanoi buy U.S. patrol boats to thwart any aggression. Last year India extended a Line of Credit of 100 million USD to Vietnam to buy four patrol boats from Delhi.Strongly emphasizing on the need for freedom of navigation in Asia, MoS Defence Rao Inderjit Singh said at Shangri La Dialogue: "We must remember that most of the world's shipping traffic including energy shipments traverse Asian waters. The same can increasingly be said of global value chains. Ensuring freedom of navigation in these waters is thus essential for all our security.""For us in India, freedom of navigation on the seas has always been important since our history has been shaped by the constant maritime inter-flow of goods and people between our coasts and other countries in Asia and Africa," Singh pointed out.India has always opposed the threat or unilateral use of force to resolve maritime territorial disputes as this can disrupt normal trade flows threatening the economic security of all countries that depend on free-flow of marine commerce, he said in an indirect dig towards China.Echoing similar sentiments at the Shangri La Dialogue, Japan, Australia Malaysia and hosts Singapore called for peace in the SCS and adherence to international laws for freedom of navigation in the region.