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Australia urges China to hold transparent Rio Tinto trial

by Staff Writers
Sydney (AFP) Feb 11, 2010
Australia urged China Thursday to hold an open and speedy trial for four Rio Tinto staff accused of bribery and industrial espionage in a case that has revived jitters about foreign companies doing business with Beijing.

Rio Tinto, the Anglo Australian mining giant, voiced its concern about the charges against Australian executive Stern Hu and three Chinese colleagues who were arrested seven months ago.

Beijing insisted the case would be handled by the book and that it would "fully guarantee" the rights of the employees.

Their detention in July came during fractious, and ultimately unresolved, iron ore contract talks and just weeks after Rio Tinto walked away from a major cash injection from a state-run Chinese company.

Analysts said business leaders would keep a close eye on the proceedings to gauge the pitfalls of engaging with China, the world's top exporter whose breakneck growth defied the global slowdown.

"We are very concerned about the nature of these charges, however, as this is part of an ongoing legal process, it is inappropriate to comment any further," Rio Tinto's iron ore division chief Sam Walsh said in a statement, calling for "transparent and expeditious" resolution of the case.

Rio Tinto, one of the world's largest iron ore producers, has previously said it was not aware of any wrongdoing by its employees.

No trial date has been announced but a Chinese court official said the case could begin by the end of the month at the earliest.

"We continue to emphasise to the Chinese authorities the need for the case to be handled transparently and expeditiously," said a spokesman for Australian Foreign Minister Stephen Smith.

The four are accused of using their "positions to obtain benefits for others and on many occasions solicited or accepted bribes," China's state Xinhua news agency said late Wednesday.

Xinhua said they had also "on many occasions obtained the trade secrets of Chinese steel companies, leading to serious consequences for the relevant steel companies".

The case briefly snarled diplomatic ties between Beijing and Canberra, which have become major trading partners as China seeks commodities and energy to feed its rapid industrialisation.

"I think the business community will try to talk as if the Stern Hu situation is a unique one, but I think they will realise that it's more than that," said John Lee, fellow of the Centre for Independent Studies think-tank.

"It's a commentary on the general risk of doing business with China."

A spokeswoman for Shanghai's Number One Intermediate People's Court said the trial was likely to be held behind closed doors.

"The case involves infringing commercial secrets, so the trial is unlikely to be open to the public," she told AFP. "If it is decided to be a closed-door trial, no media will be allowed."

Foreign ministry spokesman Ma Zhaoxu said China would handle the case "according to China-Australia consular agreements and relevant international conventions."

"The rights of the defendants will be fully guaranteed," he added.

A lawyer for one of the accused told AFP the trial was likely to be held in February or March. Wang Yong, Ge Minqiang, and Liu Caikui are the three Chinese nationals involved.

Analyst Lee, who has personally investigated the case, said Hu had little chance of being acquitted and expected a sentence of five to seven years.

"The mere possession of the information that Stern Hu had is illegal. I think there's no prospect of finding him innocent," he said.

Australian Deputy Prime Minister said Hu and his family were being provided with consular assistance.

"I don't want to speculate on the timing of the trial of Mr Hu and I certainly don't want to speculate on any matters which might occur during the trial."



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