China begins trial of 4 Rio Tinto employees; Oz wary

An Australian executive and three other employees of mining giant Rio Tinto went on trial on Monday on charges of stealing secrets and offering bribes in a case viewed as a barometer of China`s handling of foreign business.

Zeenews Bureau

Shanghai: An Australian executive and three other employees of mining giant Rio Tinto went on trial on Monday on charges of stealing secrets and offering bribes in a case viewed as a barometer of China`s handling of foreign business.

China has warned against politicising the case, which has been an irritant in relations with Australia. Australia has protested the plan to close court sessions involving the commercial secrets charges.

The trial comes at a time of friction with the US over China`s currency policies and doubts among some in the foreign business community over Beijing`s commitment to an open and fair business environment.

Australian citizen Stern Hu and three Chinese nationals were arrested nine months ago at a time when Rio Tinto was acting as lead negotiator for global iron ore suppliers in price talks with Chinese steel mills. Hu was Rio Tinto`s senior executive in China in charge of iron ore.

The four were taken into a Shanghai court early Monday out of the public eye.

Few details of the allegations against the suspects have been made public, and the four Rio Tinto employees have not been allowed any public comment since their arrest. Lawyers contacted over the weekend, ahead of Monday`s trial, refused comment.

Australia’s stand

Australian Prime Minister Kevin Rudd today told China the world will be watching "very closely" as the trial of four Rio Tinto mining employees got under way.

"The Australian government will be monitoring the trial very carefully," Rudd told reporters.

"China has a different legal system to Australia, China has a different legal system to the rest of the world."

"The world will be watching very closely," he added, repeating comments he made last week.

The Australian Department of Foreign Affairs and Trade issued a statement saying it was disappointed with the Chinese court`s decision not to allow its consular officials to attend sessions having to do with commercial secrets.

"The Government`s disappointment with the decision has been registered with Chinese officials in Beijing and Canberra. The Australian Government does not propose to make further representations on this matter," it said in a statement issued over the weekend.

It said Hu`s lawyer, Duan Qihua, would be present throughout the trial. Australian consular officials will attend hearings involving the bribery charges, and the consul-general for Shanghai, Tom Connor, was seen entering the court. He did not speak to several dozen reporters gathered in front of the court.

(With Agencies’ inputs)

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