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Rio Tinto chief 'admits bribery' | |
(about 1 hour later) | |
An Australian executive of mining giant Rio Tinto has told a court in the Chinese city of Shanghai that he took bribes, an official says. | |
Four Rio Tinto employees - Australian Stern Hu and three Chinese colleagues - are facing bribery and commercial espionage charges. | |
An Australian diplomat who attended the court session said Mr Hu had "made some admissions" on the bribery matters. | |
The trial of the group, arrested in July, is due to last three days. | |
Reports from China indicate at least one of Mr Hu's colleagues also admitted taking bribes. | |
Foreign reporters are not allowed to attend the trial. | |
The Australian government has expressed concern that its consular officials will be prevented from witnessing Tuesday's court session, at which the commercial espionage charges will be discussed. | |
Anger over deal | Anger over deal |
Stern Hu was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies. | Stern Hu was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies. |
Although Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in full | Although Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in full |
He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - have been held in detention since they were taken from their homes on 5 July last year. | He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - have been held in detention since they were taken from their homes on 5 July last year. |
They are charged with commercial espionage, punishable by up to seven years in prison, and taking bribes, a charge that also carries a lengthy jail term. | They are charged with commercial espionage, punishable by up to seven years in prison, and taking bribes, a charge that also carries a lengthy jail term. |
Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts". | |
Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China. | Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China. |
The case was "obviously of great concern to us", he told a forum in Beijing, according to an e-mailed copy of his speech. "I can only say we respectfully await the outcome of the Chinese legal process." | The case was "obviously of great concern to us", he told a forum in Beijing, according to an e-mailed copy of his speech. "I can only say we respectfully await the outcome of the Chinese legal process." |
A month before the arrests, Rio scrapped a $19.5bn (£12.5bn) deal with China's state-owned Chinalco in favour of a tie-up with rival giant BHP Billiton, which angered some in Beijing. | |
But ties have since improved - last week Rio Tinto signed a deal with Chinalco to develop a massive iron ore mine in Guinea. | |
'Watching closely' | 'Watching closely' |
The Australian Department of Foreign Affairs and Trade has said it is disappointed with the Chinese court's decision not to allow its consular officials to attend sessions which might include commercial secrets. | The Australian Department of Foreign Affairs and Trade has said it is disappointed with the Chinese court's decision not to allow its consular officials to attend sessions which might include commercial secrets. |
"The government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra," it said in a statement issued over the weekend. | "The government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra," it said in a statement issued over the weekend. |
It said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial. | It said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial. |
RIO TINTO TRIAL Four executives including one Australian on trialGroup face charges of bribery and illegally obtaining commercial secretsParts of the trial will be held behind closed doors, despite Australian objectionsTrial is scheduled to last three days | RIO TINTO TRIAL Four executives including one Australian on trialGroup face charges of bribery and illegally obtaining commercial secretsParts of the trial will be held behind closed doors, despite Australian objectionsTrial is scheduled to last three days |
Australian Prime Minister Kevin Rudd told reporters on Monday that his government would be "monitoring the trial very carefully". | |
Last week Chinese officials warned Australia against "politicising" the case. | Last week Chinese officials warned Australia against "politicising" the case. |
China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy. | China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy. |
The BBC's China correspondent, Damian Grammaticas, says other foreign firms are watching the Rio trial closely. | The BBC's China correspondent, Damian Grammaticas, says other foreign firms are watching the Rio trial closely. |
The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive. | The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive. |
US firms 'feel unwanted' in China | US firms 'feel unwanted' in China |
China's laws on the subject are opaque. And courts are often seen as lacking in independence. | China's laws on the subject are opaque. And courts are often seen as lacking in independence. |
The trial also comes as a growing number of foreign businesses say they are facing problems operating in China. | The trial also comes as a growing number of foreign businesses say they are facing problems operating in China. |
The internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers. | The internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers. |
A survey of American businesses released just as the Rio Tinto trial started showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says. | A survey of American businesses released just as the Rio Tinto trial started showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says. |