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March 31, 2010

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Australia warned to curb talk over Rio

CHINA yesterday warned Australia not to make "irresponsible comments" about the trial and sentencing of four employees of mining firm Rio Tinto.

The quick response from China followed remarks earlier in the day by Australian Prime Minister Kevin Rudd.

"In holding part of the trial in secret, China, I believe, has missed an opportunity to demonstrate to the world at large transparency that would be consistent with its emerging global role," Rudd told reporters in Melbourne.

But Rudd said disagreement over the trial would not hit the booming resource trade between the two countries.

Shanghai No.1 Intermediate People's Court on Monday convicted Australian citizen Stern Hu and three Chinese colleagues of taking bribes and stealing commercial secrets, handing out jail sentences ranging from seven to 14 years.

"We express serious concern about the Australian statements on the Rio Tinto case," Foreign Ministry spokesman Qin Gang told a press conference in Beijing.

"The Rio case is a criminal case and the Chinese side has already given its verdict.

"Australia should respect this outcome and stop making irresponsible comments."

Asked whether China is satisfied that Rio Tinto had nothing to do with its employees' misdeeds, Qin said "all foreign companies" that do business in China must respect its laws and regulations.

"In the Rio case, whoever is implicated, irrespective of their nationality, will be handled according to the law," he said.

China has not yet announced a verdict in the case of two Chinese steel executives, who were tried last week for leaking information about iron ore negotiations to Rio Tinto.

Rio immediately sacked the four employees.

One of the Chinese defendants has decided to appeal.

Australian firms with large China businesses, including BHP Billiton, have been anxious to distance themselves from Rio's troubles.

Australia's Assistant Treasurer Nick Sherry said he believed Rio was a good corporate citizen and told CNBC the case raised no "broader issues" for the miner.

But the Greens party, which wields swinging votes in the Senate, sought an investigation into the firm by the Australian Securities and Investments Commission, similar to one already launched by Britain's corporate watchdog.





 

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