Australian FM hopes to discuss Australian’s arrest

CANBERRA, Australia — Foreign Minister Stephen Smith said Tuesday that he hoped to discuss with his Chinese counterpart this week the arrest of an Australian mining executive accused by China of stealing state secrets.

Smith flies to Thailand on Tuesday for an Association of Southeast Asian Nations Regional Forum. China is among the forum’s 27 members.

Smith said he hoped to meet with Chinese Foreign Minister Yang Jiechi on the forum’s sidelines. The Australian foreign minister said he would raise the case of Shanghai-based Rio Tinto Ltd. executive Stern Hu who was arrested over his lead role in iron ore contract negotiations with Chinese steel mill executives.

Chinese state media have said Hu and three other Rio Tinto employees arrested with him on July 5 are accused of bribing executives from Chinese steel mills to get access to industry data, which the Communist government considers secret.

“If my Chinese counterpart is there I hope … to speak to him about Stern Hu,” Smith told Australian Broadcasting Corp. radio on Tuesday before leaving Australia.

Smith has voiced frustration that Australia has had to rely on Chinese media reports to glean details of Hu’s case. The Australian citizen has not yet been charged.

Smith met with Chinese Vice Foreign Minister He Yafei in Egypt on the sidelines of a conference there last week and said he had informed He that Australia wanted Hu’s case resolved quickly.

A senior opposition senator called for Australia to overhaul its foreign investment regulations in light of Hu’s arrest, a newspaper reported Tuesday.

Sen. Barnaby Joyce told The Sydney Morning Herald that the Hu case showed how the Chinese government conflated China’s national interests with the commercial interests of its state-owned businesses.

He said he would raise his call for an overhaul before a senate committee which is inquiring into foreign investment by state-owned enterprises and sovereign wealth funds.

“Ownership of Australian businesses by state-owned enterprises is an inherently unhealthy thing, and once you have ownership of our nation’s resources by another nation’s state-owned enterprises, it is even more problematic,” he told the newspaper.

Joyce was not immediately available for comment on Tuesday.