Beijing - China on Thursday confirmed that police have
detained four employees of the giant Anglo-Australian miner Rio Tinto
for 'alleged stealing of state secrets.'
Those detained include Stern Hu, an Australian citizen who is the
general manager of Rio Tinto's Shanghai office, government media
quoted Shanghai state security officials as saying.
Three Chinese citizens employed by Rio Tinto's Shanghai office
were detained on the same charges of espionage, in a case that had
'seriously harmed China's economic interests and security,' Foreign
Ministry spokesman Qin gang told reporters.
Qin said China was still investigating and would 'handle the case
properly according to law.'
'This is an individual case and should not be exaggerated or even
politicized,' he said.
The Chinese government would 'continue holding a positive attitude
on economic and trade cooperation between China and Australia,' Qin
said.
Hu was also in charge of his company's iron ore business in China,
reports said.
Australian Foreign Affairs Minister Stephen Smith said his
ministry called in the acting Chinese ambassador on Thursday and was
later told that China had agreed to a consular visit to Hu on Friday.
The arrests come amid negotiations between Rio Tinto and Chinese
steel producers over annual contracts for iron ore.
The talks passed a June 30 deadline without agreement, as the
Chinese steel firms continued to demand larger price cuts than the 33
per cent offered by Rio Tinto.
China's official Xinhua news agency quoted Rio Tinto as saying in
a statement on Thursday that it heard of the 'surprising allegation'
against its Shanghai staff via the Australian government.
'We are not aware of any evidence that would support such an
investigation,' the agency quoted the statement as saying.
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