WRAPUP 1 tubular motor -Australia warns of risks to delay in China spy case

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WRAPUP 1 tubular motor -Australia warns of risks to delay in China spy case
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WRAPUP 1-Australia warns of risks to delay in China spy casePublished: 12 Jul 2009 16:53:04 PST

* Australia says China spy case could drag on for some time

* Australia urges China to think of risks to foreignbusiness

* Foreign Minister says no evidence shown to backdetentions

PERTH, July 12 – Australia warned China on Sundayof the risks to business confidence from Beijing’s detentionwithout charge of an Australian mining executive accused ofspying, and said the affair could take a long time to untangle.

The detention a week ago of Anglo-Australian miner RioTinto’s top iron ore salesman in China, Australian Stern Hu,and three of his Chinese subordinates has cast a shadow ofAustralia-China relations and unnerved the iron ore trade.

Rio Tinto is the world’s second largest iron ore miner andwas locked in intense price negotiations with China when Hu andthe three others were detained in Shanghai, accused of stealingstate secrets and bribing Chinese steelmakers for information.

Foreign Minister Stephen Smith said on Sunday he was urgingChinese authorities to handle the case expeditiously, and toconsider the wider risks for international business confidence,but he stressed the case was likely to drag on for some timeyet.

“We may well be in for a long haul here,” he told reportersin Perth after a week in which opposition lawmakers accusedChina of human rights violations by holding Hu without chargeor access to legal representation since his detention on July5.

Chinese authorities allowed Australian consular officialsto see Hu in detention on Friday, and Canberra reported him tobe in good health, but Smith said Hu had still not been chargedand there was no timetable for whether or not charges would belaid.

Australian authorities were still pressing for details ofthe allegations against Hu, Smith said, adding that China hadstill not revealed to them any evidence supporting thedetentions.

“One of the issues for Chinese authorities to contemplateis the extent to which the circumstances of this case willcause the international business community to have any causefor concern,” he said.

The affair has been confined to Rio Tinto, but rival ironore producers Anglo-Australian miner BHP Billiton and Brazil’sVale are watching events closely.

Asked if other Australian firms operating in China had beenquestioned by Chinese authorities in relation to the espionageprobe, Smith said: “There is nothing to cause me to believethat the matters relating to Hu’s detention would in any way gowider within the Australian business community operating inChina.”

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