When you dance with Rudd's Communist Devil there is occassionally a price to pay

Australian Rio Tinto exec held in China

By Xavier La Canna and Andrea Hayward
NEWS.com.au
July 08, 2009 07:19pm

THE detention of an Australian businessman in China on suspicion of spying and stealing state secrets is a warning about the dangers of dealing with the communist country's state-owned entities, Nationals Senate leader Barnaby Joyce says.

Foreign Minister Stephen Smith says Stern Hu, believed to be Rio Tinto's general manager of iron ore in China, together with three other executives from the global mining company are being detained by Chinese authorities.

"This afternoon Australian officials were advised that the reason for Mr Hu's detention was that he was being detained on the suspicion of espionage and stealing state secrets," Mr Smith said.

He said consular officials had learned on Sunday of the detention in talks with Chinese officials in China and with the acting Chinese ambassador in Canberra.

The officials in China had been in contact with Mr Hu's wife who lives in Shanghai, Mr Smith said.

Consular officials were seeking access to Mr Hu and were doing everything they could to resolve the issue.

The detention of the Rio Tinto staff comes amid iron ore price negotiations between the miner and China steel mills.

It also comes a month after a state-owned company's bid to take a large stake in Rio Tinto failed - sparking Senator Joyce's warning the detentions should be a "sobering wake-up call".

Senator Joyce linked the detentions to a failed attempt by a Chinese state-owned company, Aluminum Corporation of China (Chinalco), to take a $US19.5 billion ($A24.7 billion) stake in Rio Tinto.

"Chinalco's failure to buy 18 per cent ownership of Rio would appear to have inspired Mr Hu's arrest and that of three other Rio workers," Senator Joyce said.

He said the move showed a slight to a state-owned entity in China would be pursued by the Chinese Government.

"This should be a clear example to Australia, and other countries around the world, of the extent of the relationship between a 100 per cent owned entity in the People's Republic of China and the actions of the Chinese Government," he said.

"The two are one in the same in ownership, in action, in purpose."

The Chinalco deal broke down last month when Rio Tinto abandoned the planned tie-up in favour of a deal with BHP Billiton and a share offering to raise money to help it reduce its company debt.

There has been unconfirmed speculation the arrests could relate to manipulation of the iron ore market.

Reports have also suggested Chinese authorities removed some computers from the mining company's Shanghai's offices after raiding the premises this week.

Rio Tinto and Chinese steel mills have been in tense negotiations over the contract price of iron ore, with Chinese companies seeking a drop in prices of 40-45 per cent.

Negotiations have continued longer than ever before.

According to reports out of China, Rio Tinto's iron ore team has been concerned phones and emails were being bugged, and have avoided meeting in China for more than a month.

The Rio Tinto team feared sensitive information was being sent to the China Iron and Steel Association, which is leading negotiations on iron ore contract prices.

The detention also comes amid unconfirmed reports today that Chinese steel mills had capitulated on iron ore contract prices.

According to the China Business News website the mills agreed to a 33 per cent cut in iron ore prices from suppliers.

Rio Tinto, the world's third largest mining company, earlier could not confirm the reasons the employees were being questioned by Chinese authorities but said they were concerned for their staff.

"We intend to cooperate fully with any investigation the Chinese authorities may wish to undertake and have sought clarification on what has occurred," it said.

"We are concerned about our people's wellbeing and are doing everything we can to help them and support their families."

The company has so far been unable to contact any of the men.

A spokeswoman at BHP Billiton, which has dozens of workers in Shanghai, said its operation in the Chinese city was proceeding normally.

A spokeswoman for Chinalco did not wish to comment on the situation.

Comrade Rudd, is, I am sure, busily taking notes on the tactics of his superiors at head office, in how to gain the advantage in a business transaction between a Communist Government and some arse clown Capitalist business executive stupid enough to believe the lie of Communism and Capatilism working hand in hand for mutual benefit.
The real joke is that Rudd and his Socialist Labor Party believe that they will be part of the Ruling Class, part of the Beijing elites if they succed in the plans to take over Australia