Hu Arrested for Crime, Not Spying, Said Australian Minister

SYDNEY -- Australian Foreign Minister Stephen Smith Sunday said Chinese government officials have made clear the detention of Rio Tinto Ltd. executive and Australian citizen Stern Hu is solely related to a criminal investigation surrounding iron ore price negotiations.

Following a meeting with Chinese Vice Foreign Minister He Yafei on Friday, Mr. Smith said Chinese officials have provided further details to the Australian government on the detention of Mr. Hu and three other Rio Tinto employees.

"It is quite clear they are focusing on a criminal or judicial investigation relating to the 2009 iron ore negotiations, that is their clear focus, they are not interested in what we would regard as espionage or national security matters," Mr. Smith told Australian Broadcasting Corp.

Mr. Hu, Rio's head of iron ore in China, was detained on July 5 along with three Chinese nationals employed by Rio on allegations they stole state secrets relating to iron ore price talks.

The foreign minister said "commercial and economic matters" fall under the Chinese definition of state secrets, and expects the full details behind the case to become clearer if the Chinese investigation against Mr. Hu results in charges.

The foreign minister said the government continues to seek further details, and will continue to make representations with Chinese authorities, but said the issue cannot be "magically" resolved.

"[He Yafei] made it clear the Chinese are regarding this matter as an individual matter, they are not treating this as a more general matter so far as the relationship is concerned, they want it to be treated in context of Chinese law and Chinese procedures, and that is from the Australian government point of view, the only option that we have," Mr. Smith said.

Because the detention of the Rio Tinto employees relate to allegations of bribery and criminal conduct, the processing of the case is solely a matter for China, Mr. Smith said. "It needs to be done within Chinese law and Chinese practice, but it needs to be done quickly."

On Friday, Rio Tinto said it firmly denied claims that four of its employees bribed officials at Chinese steel mills, saying it fully supports the men who have been detained without charge by the Chinese. The foreign minister added officials from both governments will continue to discuss the issue.

In an effort to up the pressure on China, Australian Prime Minister Kevin Rudd last week cautioned that government's and corporations around the world are watching the outcome of Hu's detention closely. link....