The Paracel Islands or Xisha Islands are a group of small islands and reefs in the South China Sea and part of the South China Sea Islands, about one-third of the way from central Vietnam to the northern Philippines.The Paracel Islands are surrounded by productive fishing grounds and by potential oil and gas reserves. In 1932, French Indochina annexed the islands and set up a weather station on Pattle Island; maintenance was continued by its successor, Vietnam. The Peoples Republic of China has occupied the Paracel Islands since January 19, 1974, when its troops seized a South Vietnamese garrison occupying the western islands. The islands are claimed by the Republic of China (Taiwan) and Vietnam. The islands have no indigenous inhabitants.