Australia asks China to open Rio trial

Last Updated: Thu, 18 Mar 2010 21:24:00 +1100

Foreign Affairs Minister Stephen Smith says Australia believe its officials should be allowed to observe the entire trial of Rio Tinto executive Stern Hu in China.

Mr Hu and three Chinese colleagues will go on trial in Shanghai next Monday on charges of receiving bribes and infringing commercial secrets.

Australian officials have asked Chinese authorities to reconsider a decision to close the court when it is dealing with commercial information.

Mr Smith says he will wait for a response before deciding whether to intervene himself.

Argument

"Our argument is we believe that circumstances of this case warrant Australian officials being present in court for the hearing of both charges," the minister said.

"Now we're taking that up with Chinese authorities both in Canberra and in China."

China correspondent Stephen McDonell reports the hearing will take place in the midst of what seems to be a remarkable coincidence.

The Chinese government has a high-security VIP-guest special reception compound in the west of Beijing, complete with gardens and banquet halls.

It is called Diaoyutai State Guesthouse.

Speaker

There, next Monday, a Chinese government think-tank known as the China Development Research Foundation will hold a session titled Strengthening Global Cooperation for a Mutually Beneficial Future.

Speaker number three at this session, which is closed to the general public, is Tom Albanese - president and chief executive of Rio Tinto.

At the same time that the head of Rio Tinto is speaking in Beijing about strengthening global cooperation for a mutually beneficial future, four of his executives from the iron ore negotiating team will be facing court in Shanghai.

Australian diplomats were informed of the date of the trial of Mr Hu, Liu Caikui, Ge Mingqiang and Wang Yong on Wednesday night.

Before the trial has even started, the Australian Government is not happy with the way it is being handled.

For at least part of the trial Australian consular officials will be allowed to observe. But they are also charged with receiving sensitive commercial secrets in return for some form of inducements.

Benefit

These secrets relating to iron ore price negotiations came from Chinese steel companies and are said to have been received for the benefit of another party, presumably Rio Tinto.

Up until now virtually nothing is known about what these four men are accused of in order to give Rio Tinto multi-billion dollar advantages in iron ore price negotiations.

Whatever they are said to have done, according to Chinese court documents, their actions led to "serious consequences for the relevant steel companies".

The central evidence is made up of piles of documents, but every word remains secret and it appears most of it will stay that way - even after next Monday.