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Rio Tinto chief 'admits bribery' Rio Tinto chief 'admits bribery'
(31 minutes later)
An Australian executive of mining giant Rio Tinto has told a court in the Chinese city of Shanghai that he took bribes, a official has said. An Australian executive of mining giant Rio Tinto has told a court in the Chinese city of Shanghai that he took bribes, an official has said.
Four Rio Tinto employees - Australian Stern Hu and three Chinese colleagues - face charges of commercial espionage and of taking over $900,000 in bribes. Four Rio Tinto employees - Australian Stern Hu and three Chinese colleagues - face charges of bribery and commercial espionage.
An Australian diplomat who attended the court session said Mr Hu had "made some admissions" on the bribery matters.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.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.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.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.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 dealAnger 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 fullAlthough 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.
Both the commercial espionage and bribery charges carry lengthy jail terms.Both the commercial espionage and bribery charges carry lengthy jail terms.
According to reports, Mr Hu was charged with accepting bribes of about $900,000 (£600,000).According to reports, Mr Hu was charged with accepting bribes of about $900,000 (£600,000).
Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts".Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts".
Comments from lawyers for the other three men suggest that some of them have also admitted taking bribes but are contesting the amounts.Comments from lawyers for the other three men suggest that some of them have also admitted taking bribes but are contesting the amounts.
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 daysRIO 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
The BBC's China correspondent, Damian Grammaticus, says that the admissions come as a surprise. Rio Tinto had said that its four employees had done nothing wrong.The BBC's China correspondent, Damian Grammaticus, says that the admissions come as a surprise. Rio Tinto had said that its four employees had done nothing wrong.
Speaking as the trial opened, Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China.Speaking as the trial opened, 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. "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. "I can only say we respectfully await the outcome of the Chinese legal process."
A month before the group were arrested, Rio Tinto 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.A month before the group were arrested, Rio Tinto 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.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'
On Tuesday the court will address the commercial espionage charges.On Tuesday the court will address the commercial espionage charges.
The Australian Department of Foreign Affairs and Trade said it was disappointed with the Chinese court's decision not to allow its consular officials to attend this part of the trial.The Australian Department of Foreign Affairs and Trade said it was disappointed with the Chinese court's decision not to allow its consular officials to attend this part of the trial.
"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.
Australian Prime Minister Kevin Rudd told reporters on Monday that his government would be "monitoring the trial very carefully".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.
US firms 'feel unwanted' in ChinaUS firms 'feel unwanted' in China
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.
And our correspondent says that other foreign firms are watching the Rio trial closely.And our correspondent says that 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.
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, which was released as the Rio Tinto trial began, 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, which was released as the Rio Tinto trial began, showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says.